Agenda — Arvin City Council, April 25, 2023 (part 1 of 2)

REGULAR MEETING AGENDA
OF THE

ARVIN CITY COUNCIL / SUCCESSOR AGENCY TO THE

ARVIN COMMUNITY REDEVELOPMENT AGENCY / ARVIN HOUSING

AUTHORITY / ARVIN PUBLIC FINANCING AUTHORITY
TUESDAY APRIL 25, 2023 6:00p.m.

CITY HALL COUNCIL CHAMBERS
200 CAMPUS DRIVE, ARVIN
CALL TO ORDER Mayor Olivia Trujillo

PLEDGE OF ALLEGIANCE

INVOCATION
*******************************************
ROLL CALL Olivia Trujillo Mayor
Daniel Borreli Mayor Pro Tem
Donny Horton Councilmember
Susana Reyes Councilmember
Juan Murillo Councilmember
******************************************
STAFF Jeff Jones City Manager / Finance Director
Nathan Hodges City Attorney – Hodges Law Group
Cecilia Vela City Clerk
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.

PUBLIC COMMENTS:

The meetings of the City Council and all municipal entities, commissions, and boards (“the City”) are open to the public. At regularly scheduled meetings, members of the public may address the City on any item listed on the agenda, or on any non-listed matter over which the City has jurisdiction. At special or emergency meetings, members of the public may only address the City on items listed on the agenda. The City may request speakers to designate a spokesperson to provide public input on behalf of a group, based on the number of people requesting to speak and the business of the City.

In accordance with the Brown Act, all matters to be acted on by the City must be posted at least 72 hours prior to the City meeting. In cases of an emergency, or when a subject matter needs immediate action or comes to the attention of the City subsequent to the agenda being posted, upon making certain findings, the City may act on an item that was not on the posted agenda.

AGENDA STAFF REPORTS AND HANDOUTS:

Staff reports and other disclosable public records related to open session agenda items are available at City Hall, 200 Campus Drive, Arvin, CA 93203 during regular business hours.

CONDUCT IN THE CITY COUNCIL CHAMBERS:

Rules of Decorum for the Public
Members of the audience shall not engage in disorderly or boisterous conduct, including the utterance of loud, threatening or abusive language, clapping, whistling, stamping of feet or other acts which disturb, disrupt, impede or otherwise render the orderly conduct of the City meeting infeasible. A member of the audience engaging in any such conduct shall, at the discretion of the presiding officer or a majority of the City, be subject to ejection from the meeting per Gov. Code Sect. 54954.3(c).

Removal from the Council Chambers
Any person who commits the following acts in respect to a meeting of the City shall be removed from the Council Chambers per Gov. Code Sect. 54954.3(c).
(a) Disorderly, contemptuous or insolent behavior toward the City or any member thereof, tending to interrupt the due and orderly course of said meeting; (b) A breach of the peace, boisterous conduct or violent disturbance, tending to interrupt the due and orderly course of said meeting;
(c) Disobedience of any lawful order of the Mayor, which shall include an order to be seated or to refrain from addressing the City; and
(d) Any other unlawful interference with the due and orderly course of said meeting.

AMERICANS with DISABILITIES ACT:

In compliance with the ADA, if you need special assistance to participate in a City meeting or other services offered by the City, please contact the City Clerk’s office, (661) 854-3134. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.

Arvin City Council Meeting Agenda – April 25, 2023

Page 1 of 4 ends

1. APPROVAL OF AGENDA AS TO FORM.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___

2. PUBLIC COMMENTS
(This is the opportunity for the public to address the City Council on any matter on the agenda or any item of interest to the public that is within the subject matter jurisdiction of the City Council.)

3. PRESENTATION(S)
A. Arvin Power Company – Micro Utility
Eric Amir, V.P. of Business Development - Lahav

4. CONSENT AGENDA ITEM(S)
A. Approval of Demand Register(s) of April 06, 2023 – April 20, 2023.

B. Approval of Payroll Register(s) of April 14, 2023.

C. Approval of the Minutes of the Special Meeting(s) of April 14, 2023.

D. Approval of A Proclamation Proclaiming the Month of April 2023 as DMV/Donate Life Month in the City of Arvin.

E. Approval of A Resolution of the City Council of the City of Arvin Approving A Task Authorization Between the City of Arvin and Veolia North America for Replacement of A Digester Blower and Effluent Pump at the Wastewater Treatment Facility.

F. Approval of A Resolution of the City Council of the City of Arvin Consenting to the Submittal of A Grant Application and Application Documents to the California Department of Transportation for the Low Carbon Transit Operations Program (LCTOP); and Authorizing Related Actions for the Following Project: Arvin Electric Bus Infrastructure Installation Project $49,309.

Staff recommends approval of the Consent Agenda.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___ Arvin City Council Meeting Agenda – April 25, 2023

Page 2 of 4 ends

5. PUBLIC HEARING ITEM(S)
A. A Public Hearing to Consider Adoption of An Ordinance of the City Council of the City of Arvin Amending Ordinance 2022-479 Which Established Title 8, Chapter 8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code To Permit A Limited Number of Type 10 or Type 12 Store Front Sales of Commercial Cannabis and May Permit Store Front Sales in the Industrial, Agricultural and Bear Mountain Central Business District. (City Manager)
Staff recommends the City Council consider adopting the Ordinance to be read by title only, open the hearing, allow for public testimony, close the hearing, waive second reading of the Ordinance, and approve the adoption of the Ordinance.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___

6. ACTION ITEM(S)
A. Consideration and Approval of A Resolution of the City Council of the City of Arvin Establishing an Ad Hoc City Council Committee to Beautify Arvin. (City Manager)
Staff recommends consideration and discussion from Council.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___ B. Consideration and Approval of A Resolution of the City Council of the City of Arvin Awarding A Professional Services Agreement to Willdan Financial Services to Prepare A City Cost Allocation Plan and Rate Study for Sewer Operations. (City Manager)
Staff recommends approval of the Resolution and Awarding A Professional Services Agreement to Willdan Financial Services to Prepare A City Cost Allocation Plan and Rate Study for Sewer Operations.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___ Arvin City Council Meeting Agenda – April 25, 2023

Page 3 of 4 ends

C. Consideration of Funding Options for Solar Renewable Energy System at the City of Arvin’s Wastewater Treatment Plant:

Option #1: Power Purchase Agreement (PPA)
or
Option #2: California Energy Commission (CEC) Energy Conservation Assistance Act (ECAA) One Percent (1%) Interest Loan Program; and Approval of A Resolution of the City Council of the City of Arvin Authorizing Enovity Inc., A Veolia Company and the City Manager of the City of Arvin, to Complete and Submit All Necessary Documents and An Application for A California Energy Commission (CEC) Energy Conservation Assistance Act (ECCA) Loan and Finding the Activity Funded by Such Loan to be Exempt from the California Environmental Quality Act (CEQA). (Veolia Water) Staff recommends consideration and discussion from Council.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___ D. Consideration and Approval of A Professional Consultant Services Agreement between the City of Arvin and Carollo Engineers, Inc. for Funding and Permitting Assistance. (City Manager)
Staff recommends approval of the Professional Consultant Services Agreement between the City of Arvin and Carollo Engineers, Inc. for Funding and Permitting Assistance.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___

7. DISCUSSION ITEM(S)
A. Report from Ad Hoc City Council Committee Regarding City Facilities. (Mayor Trujillo)

8. STAFF REPORTS
A. Monthly Financial Report – March 2023 (City Manager)

9. COUNCIL MEMBER COMMENTS
Arvin City Council Meeting Agenda – April 25, 2023

Page 4 of 4 ends

10. CLOSED SESSION ITEM(S)
A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code
§54957.6):

Agency Negotiator: City Manager and Human Resources Manager.

Employee Organizations: Arvin Police Officers Association (APOA) and Central California Association of Public Employees SEIU Local 521.

B. CONFERENCE WITH LEGAL COUNSEL--POTENTIAL LITIGATION
(Government Code §54956.9(b).)
Significant exposure to litigation pursuant to §54956.9(b): eight cases C. THREAT TO PUBLIC SERVICES OR FACILITIES (Government Code §54957(a).)
Consultation with: City Manager and/or City Attorney. (one item) D. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code §54956.8):

Property:1541 Bear Mountain Blvd., Arvin CA 93203
Agency Negotiator: City Manager
Negotiating Party: Bridgepoint Real Estate Development
Under Negotiation: Terms of payment
Property: APN 190-270-01, 190-270-03, 190-270-05, 190-270-06 Arvin CA 93203
Agency Negotiator: City Manager
Negotiating Party: Arvin Walnut Properties and State Foods Markets Under Negotiation: Terms and method of payment
E. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Pursuant to
Government Code §54957(b)(1)
Position: City Attorney

11. ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the Arvin City Council Chambers Bulletin Board not less than 72 hours prior to the meeting. Dated April 20, 2023.

Cecilia Vela, City Clerk
Arvin Power
Company Micro-Utility

PRESENTED BY LAHAV

TO THE CITY OF ARVIN

3.A.1
Attachment: Arvin Power Company - Micro Utility _042523 (Presentation: Arvin Power Company - Micro City of Arvin
• Introduction: Tod O’Connor – Member of CLEAN ENERGY 4 BIDEN; and, – “Lancaster Choice Energy”: that Provides 95% of Lancaster power today. • Introduction: Arie Eric Amir
– Life Experience: Captain Israeli Navy Seal
– Professional Experience: Life Alert – “I have fallen and can’t get up”, SAP. – LAHAV https://lahavgroup.co.il/
– Doral https://doral-energy.com/en/
– Prosun Solar https://www.prosunsolar.com/
– Dor-Alon https://www.doralon.co.il
– C energy https://www.cenergypower.com/ Developers.
• Who We Are: We Represent publicly traded energy companies from Israel. – We Finance & Fund – Solar for Cities between 30,000 – 250,000 residents. – S.S.A.s Solar Service Agreement, P.P.A.’S – Power Purchase Agreement. – Design, E.P.C, Engineering, Procurement, Install and Maintain Solar.

Canopies and Ground Mounts for:
• Solar Parks/Farms for CCA’s Communities, Cities, or Counties. • Sports Venues.

3.A.1
Attachment: Arvin Power Company - Micro Utility _042523 (Presentation: Arvin Power Company - Micro

IN THE LAST YEAR

ISRAELI COMPANIES

INVESTED
in solar farms:
$3.5 billion in Europe
$1.5 billion in USA
City of Arvin
CPV
AEP
$ 1.5 B

3.A.1
Attachment: Arvin Power Company - Micro Utility _042523 (Presentation: Arvin Power Company - Micro City of Arvin
• Value:
• Solar Farms will provide energy for 5,000 -30,00 households. • 100-percent carbon-free by 2045 a real first net-zero city. • Aggregate energy virtually will solve the T.O.U charges. • Virtual Power Plant at No up-front, out-of-pocket cost. • Municipalities qualify for “Direct Payment” in lieu of ITC. • We will help with Grants for rural community, Microgrids.

Greener generation jurisdiction portfolios than SCE / PG&E. • E.V. Electric vehicle charging station. ?
• Create 50-90 jobs in the Arvin.

No up-front Cost
“Greener”
Generation
Portfolios
Virtual Power Plant
100%
carbon free
Solving
T.OU.
charges

3.A.1
Attachment: Arvin Power Company - Micro Utility _042523 (Presentation: Arvin Power Company - Micro

PRESENTED BY LAHAV

TO THE CITY OF ARVIN
JANUARY 1ST. 2023 COST OF kWh IS $0.38 CENTS MINIMUM
AUGUST 1ST. 2023 COST OF kWh IS $0.40 CENTS MINIMUM

3.A.1
Attachment: Arvin Power Company - Micro Utility _042523 (Presentation: Arvin Power Company - Micro City of Arvin
• P.U.C- Public Utility Commissioner application.
• Currently Arvin Pays $0.38 Cents per kWh. • Under Micro Utility city will pay for Generation & Distribution to LAHAV $0.13 per kWh.
• Under Micro Utility city will pay for Billing to APC
Arvin Power Company (“A.P.C.”) $0.06 per kWh
• Savings = $0.14 cents per kWh. • Instead of paying $294 customer pays $153 at 50%+ discount. • NO MORE power failures, city owned back up fuel cell Cell Generator, and back up batteries.
• City will have a fixed cost for 25 years.

3.A.1
Attachment: Arvin Power Company - Micro Utility _042523 (Presentation: Arvin Power Company - Micro Bird’s Eye View - Why APC?
• In Southern California if you live more than 36 miles away from the ocean:
• You need on 1MW to supply electricity to 150 Households. • A city of 50,000 Residents, on average, will have approximately 20,000 households. • City at that size uses - 200,000,000 kWh a year.
• The solar system the city needs to build is 120MW. ( Value at $200+ millions ) • 120MW system will produce 200,000,000 kWh to offset a year of usage. • Micro Utility - 200,000,000 kWh x $0.14 cents Savings = • $28,000,000 savings a year.

3.A.1
Attachment: Arvin Power Company - Micro Utility _042523 (Presentation: Arvin Power Company - Micro Gov. Code. & 4217.10 No need to conduct an RFP

3.A.1
Attachment: Arvin Power Company - Micro Utility _042523 (Presentation: Arvin Power Company - Micro 4/13/2023 2:51:39 PM Page 1 of 7
Payment Register
City of Arvin APPKT00369 - FOR AP 4/13/2023
01 - Vendor Set 01
Bank: Main Pool Ck - Main Checking - BOA
1009
Vendor Number

ARCPOINT LABS OF BAKERSFIELD
Total Vendor Amount
525.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 525.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 0822632 EXPEDITED ANTIGEN TEST 8/23 CLAYTON N. 08/27/2022 08/27/2022 0.00 100.00 0922580 ANTIGEN TEST POLICE OFFICERS 9/26/22 10/01/2022 10/01/2022 0.00 150.00 1022264 EXPEDITED ANTIGEN TEST 10/10/22 NICK.L 10/15/2022 10/15/2022 0.00 100.00 1122331 ANTIGEN TEST 11/18 RITA C. 11/19/2022 11/19/2022 0.00 75.00 1222167 EXPEDITED ANTIGEN TEST 12/6/ RITA C. 12/10/2022 12/10/2022 0.00 100.00 1011
Vendor Number

ARVIN CHAMBER OF COMMERCE
Total Vendor Amount
110.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 110.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount REIMBURSEMENT OF $110 REIMBURSEMENT OF $110 DEPOSIT FOR SMOTHERMON PARK04/05/2023 04/05/2023 0.00 110.00 1150
Vendor Number
AT&T
Total Vendor Amount
401.70
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 401.70
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 000019653576 9391033189 SERVICE 2.13.23-3.12.23 03/13/2023 03/13/2023 0.00 401.70 1015
Vendor Number

AT&T MOBILITY
Total Vendor Amount
403.30
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 403.30
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 287251442687X03282023 PW + COMM DEV + CH CELL PHONES 02.23.23-03.22.23 03/22/2023 03/22/2023 0.00 403.30 1224
Vendor Number

CHRISTINE VITERELLI
Total Vendor Amount
177.44
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 177.44
Payable Number Description Payable Date Due Date Discount Amount Payable Amount PER DIEM FOR CONFRENCE PER DIEM FOR CONFRENCE 03/31/2023 03/31/2023 0.00 177.44 1045
Vendor Number

CLARK PEST CONTROL OF STOCKTON
Total Vendor Amount
214.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 214.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 33110131 PEST CONTROL SENIOR CTR 4.3.23 04/03/2023 04/03/2023 0.00 118.00 33110193 PEST CONTROL VETERAN'S HALL 4.3.23 04/03/2023 04/03/2023 0.00 96.00 1020
Vendor Number

COLONIAL LIFE PROCESSING CENTER
Total Vendor Amount
2,214.81
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 2,214.81
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 5193602-0303789 SUPPLEMENTAL INS MARCH 2023 03/25/2023 03/25/2023 0.00 2,214.81

DIAMOND TECHNOLOGIES INC
Total Vendor Amount
12,889.44
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 9,369.34
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 33094MS MICROSOFT 365 FOR BUSINESS APRIL 2023 04/12/2023 04/12/2023 0.00 1,249.00 33095 SECURECENTRIC AGREEMENT APRIL 2023 04/01/2023 04/01/2023 0.00 8,120.34 Check 04/13/2023 3,520.10
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 33805652 DELL PWREDGE SERV LIC & EQUIP- WRKSTNS 4.6.23 04/06/2023 04/06/2023 0.00 3,520.10 1310
Vendor Number

ERIC REYES GUERRA
Total Vendor Amount
660.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 660.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INV0153 BUS WASH AND BUMPER SHINE 04.04.23 04/04/2023 04/04/2023 0.00 220.00 INV0154 ARVIN PD FLEET WASH 4.4.23 04/04/2023 04/04/2023 0.00 440.00 1570
Vendor Number

FASTRAK
Total Vendor Amount

7.00 Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 7.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount I712387864339 2017 FORD FUSION PD BENICIA BRIDGE 04/04/2023 04/04/2023 0.00 7.00 1403
Vendor Number

GRIFFIN GRAPHICS INC
Total Vendor Amount
688.37
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 688.37
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 10644 INTERVIEW PANELS SHIRTS PER JJ + C. VELA 04/10/2023 04/10/2023 0.00 688.37 1213
Vendor Number

HOME DEPOT PRO INSTITUTIONAL
Total Vendor Amount
2,638.24
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 2,638.24
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INV0000673 HOME DEPOT PRO CLEANING SUPPLY ORDER 03.17.23 04/13/2023 04/13/2023 0.00 2,638.24 1322
Vendor Number

JAKE RAPER JR
Total Vendor Amount
8,010.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 8,010.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INVOICE 4 INVOICE 4 03/29/2023 04/15/2023 0.00 8,010.00 1232
Vendor Number

JEFFREY B KELLEY
Total Vendor Amount

53.04 Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 53.04
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 4043 RESTROOM PARK KEYS FOR APD 03/19/2023 03/19/2023 0.00 53.04 1413
Vendor Number

JESUS BRAVO
Total Vendor Amount
800.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 800.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount

2.13.23 PAINT INTERIOR , PAINT OFFICE 02/13/2023 02/13/2023 0.00 800.00

JESUS MARTINEZ
Total Vendor Amount
942.19
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 942.19
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 8119 UNIT 291 2 PIECE STEEL KIT 04/05/2023 04/05/2023 0.00 727.83 8120 UNIT 288 ENGINE OIL CHANGE 04/06/2023 04/06/2023 0.00 214.36 1571
Vendor Number
KCCD- ATTN : YESENIA ISBELL
Total Vendor Amount
450.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 450.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount REIMBURSEMENT OF $450 REIMBURSEMENT OF $450 DEPOSIT FOR VETS HALL 04/10/2023 04/10/2023 0.00 450.00 1574
Vendor Number

LISETH ARREGUIN
Total Vendor Amount
410.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 410.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount REIMBURSEMENT OF $410 REIMBURSEMENT OF $410 FOR VETS HALL DEPOSIT 04/05/2023 04/05/2023 0.00 410.00 1331
Vendor Number

LN CURTIS & SONS
Total Vendor Amount
1,442.25
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 1,442.25
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INV687922 HARDWIRE PANEL SET FOR OFFICER HUBER 03/22/2023 03/22/2023 0.00 1,442.25 1332
Vendor Number

MADLAND TOYOTA LIFT INC
Total Vendor Amount
669.94
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 669.94
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 14000714 UNIT 211 REPLACE BATTERY DOOR LOCK 03/14/2023 03/14/2023 0.00 656.26 15000049 UNIT 209 WIPER BLADES 03/15/2023 03/15/2023 0.00 13.68 1573
Vendor Number

MERCEDES REYES
Total Vendor Amount
150.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 150.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount REIMBURSEMENT OF $150 REIMBURSEMENT OF $150 DEPOSIT FOR SUITE Y 04/05/2023 04/05/2023 0.00 150.00 1554
Vendor Number

MODERN GREYWOOD, INC
Total Vendor Amount
19,000.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 19,000.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 511 TRANSIT DEBRIS / TRASH PILES 04/11/2023 04/11/2023 0.00 19,000.00 1102
Vendor Number

MOUNTAINSIDE DISPOSAL
Total Vendor Amount
214.18
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 214.18
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 702146 BIN RENT AND 4 YD ROLL OFF APRIL 2023 04/01/2023 04/01/2023 0.00 214.18

NATHAN M HODGES
Total Vendor Amount
24,875.50
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 24,875.50
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 00497 LEGAL FEES MARCH 2023 04/03/2023 04/03/2023 0.00 24,875.50 1184
Vendor Number

OREILLY AUTOMOTIVE INC
Total Vendor Amount
231.72
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 231.72
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 4451-278400 2.5 GAL BLUEDEF FOR TRANSIT 03/07/2023 03/07/2023 0.00 77.90 4451-282582 BLASTER FOR SHOP USE 03/27/2023 03/27/2023 0.00 11.90 4451-282694 2.5 GAL BLUE DEF FOR TRANSIT 03/28/2023 03/28/2023 0.00 116.85 4451-282699 GL-WIPER FLD FOR TRANSIT 03/28/2023 03/28/2023 0.00 25.07 1108
Vendor Number
PG & E
Total Vendor Amount
4,103.53
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 4,103.53
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 5299823039-6 2.23.23-3.23.23 5299823039-6 2.23.23-3.23.23 03/24/2023 03/24/2023 0.00 3,817.92 8440977428-2 3.3.23-3.31.23 8440977428-2 3.3.23-3.31.23 03/31/2023 03/31/2023 0.00 275.54 9307046200-2 2.23.23-3.23.23 9307046200-2 2.23.23-3.23.23 03/27/2023 03/27/2023 0.00 10.07 1572
Vendor Number

SAM SPIEGEL
Total Vendor Amount

44.87 Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 44.87
Payable Number Description Payable Date Due Date Discount Amount Payable Amount GAS - CIVIC SPARK GRANT GAS - CIVIC SPARK GRANT 04/03/2023 04/03/2023 0.00 44.87 1123
Vendor Number

SO CAL GAS CO
Total Vendor Amount
1,717.40
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 1,717.40
Payable Number Description Payable Date Due Date Discount Amount Payable Amount SERVICES 2.24.23-3.27.23 SERVICES 2.24.23-3.27.23 03/29/2023 03/29/2023 0.00 1,717.40 1033
Vendor Number

SPECTRUM BUSINESS
Total Vendor Amount
108.99
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 108.99
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 168251101032123 PUBLIC WORKS SVC 3.29.23-4.28.23 03/21/2023 03/21/2023 0.00 108.99 1126
Vendor Number

STAPLES BUSINESS ADVANTAGE
Total Vendor Amount
975.08
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 975.08
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 1473888LA OFFICE SUPPLIES FOR THE CITY MARCH 2023 03/25/2023 03/25/2023 0.00 975.08 1510
Vendor Number
STOMMEL INC.

Total Vendor Amount
3,098.65
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 3,098.65
Payable Number Description Payable Date Due Date Discount Amount Payable Amount SI85138 WORK FOR PATROL UNITS & TAURUS GUN RELOCATION 03/21/2023 03/21/2023 0.00 780.18 SI85139 UNIT 292 SWAP GUNS , UPDATE ANTENNA MOUNT 03/21/2023 03/21/2023 0.00 1,139.80

4.A.1
Attachment: Demand Register(s) of April 06, 2023 - April 20, 2023 (Demand Register(s) of April 06, 2023 - April 20, 2023.) Payment Register APPKT00369 - FOR AP 4/13/2023
4/13/2023 2:51:39 PM Page 5 of 7
SI85140 UNIT 291 MAG DOCK / ADAPTER BKT 03/21/2023 03/21/2023 0.00 1,178.67 1131
Vendor Number

TEL-TEC SECURITY SYSTEMS
Total Vendor Amount

55.00 Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 55.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 809340 ARVIN ADOBE COMPLEX FIRE MONITORING APRIL 2023 04/01/2023 04/01/2023 0.00 55.00 1186
Vendor Number
VERIZON WIRELESS 642023305 2
Total Vendor Amount
576.32
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 576.32
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 9931242404 TRANSIT SVCS 03.1.23-3.28.23 03/28/2023 03/28/2023 0.00 576.32 1142
Vendor Number

WELLS FARGO LEASE PMTS
Total Vendor Amount
110.88
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 110.88
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 5024423296 COMM DEV LEASE 03.21.23-04.20.23 03/24/2023 03/24/2023 0.00 110.88 1201
Vendor Number

WESTERN ALLIANCE BANK LOAN PMT
Total Vendor Amount
172,702.55
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/13/2023 172,702.55
Payable Number Description Payable Date Due Date Discount Amount Payable Amount A#04500161025-61026 LOAN 04500161025-61026 WASTEWATER TREATMENT 03/31/2023 03/31/2023 0.00 172,702.55

4.A.1
Attachment: Demand Register(s) of April 06, 2023 - April 20, 2023 (Demand Register(s) of April 06, 2023 - April 20, 2023.) Payment Register APPKT00369 - FOR AP 4/13/2023
4/13/2023 2:51:39 PM Page 6 of 7
Payment Summary
Type
Payment
Count Discount Payment
Payable
Bank Code Count
Main Pool Ck Check 52 36 0.00 261,671.39
Packet Totals: 52 36 0.00 261,671.39

4.A.1
Attachment: Demand Register(s) of April 06, 2023 - April 20, 2023 (Demand Register(s) of April 06, 2023 - April 20, 2023.) Payment Register APPKT00369 - FOR AP 4/13/2023
4/13/2023 2:51:39 PM Page 7 of 7
Cash Fund Summary
Fund Name Amount
90 Main Pooled Cash Fund -261,671.39
Packet Totals: -261,671.39

4.A.1
Attachment: Demand Register(s) of April 06, 2023 - April 20, 2023 (Demand Register(s) of April 06, 2023 - April 20, 2023.) 4/19/2023 3:47:28 PM Page 1 of 6
Payment Register
City of Arvin APPKT00373 - FOR AP 4/19/2023
01 - Vendor Set 01
Bank: Main Pool Ck - Main Checking - BOA
1010
Vendor Number

AMERICAN BUSINESS MACHINES
Total Vendor Amount
611.66
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 611.66
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 675105 POLICE DEPARTMENT BUSINESS CARDS 7 SETS 03/27/2023 03/27/2023 0.00 611.66 1002
Vendor Number

ARVIN COMMUNITY SERVICES DISTRICT
Total Vendor Amount
372.24
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 372.24
Payable Number Description Payable Date Due Date Discount Amount Payable Amount REIMBURSE FOR PRINTING FLYERS REIMBURSE FOR PRINTING/DISTRIBUTING FLYERS 04/14/2023 04/14/2023 0.00 372.24 1172
Vendor Number

BAKERSFIELD ANIMAL HOSPITAL
Total Vendor Amount
275.40
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 275.40
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 5370640684 EXAM/CONSULTATION EMERGENCY 04/07/2023 04/07/2023 0.00 275.40 1045
Vendor Number

CLARK PEST CONTROL OF STOCKTON
Total Vendor Amount
493.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 493.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 2793441 COMM DEV 4.4.23 04/04/2023 04/04/2023 0.00 86.00 2793593 200 CAMPUS DRIVE SERVICE 04/04/2023 04/04/2023 0.00 321.00 2793601 TRANSIT 4.4.23 04/04/2023 04/04/2023 0.00 86.00 1047
Vendor Number

COMMUNICATION ENTERPRISES
Total Vendor Amount
420.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 420.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 1114757 LTR 450 DISPATCH PW APRIL 2023 04/04/2023 04/04/2023 0.00 240.00 1114758 LTR 450 DISPATCH TRANSIT APRIL 2023 04/04/2023 04/04/2023 0.00 180.00 1176
Vendor Number

CORELOGIC SOLUTIONS LLC
Total Vendor Amount
200.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 200.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 30660467 KERN ONLINE DATA PARCEL MAPS MARCH 2023 03/31/2023 03/31/2023 0.00 200.00 1052
Vendor Number

CSJVRMA
Total Vendor Amount
138,522.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 138,522.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount RMA 2023-00199 2022/2023 4TH QUARTER DEPOSITS 03/17/2023 03/17/2023 0.00 138,522.00

DEPARTMENT OF JUSTICE
Total Vendor Amount
153.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 153.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 645668 FINGERPRINT SVCS MARCH 2023 04/05/2023 04/05/2023 0.00 153.00 1193
Vendor Number

DIAMOND TECHNOLOGIES INC
Total Vendor Amount
50,000.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 50,000.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INV0000674 BLOCK RENEWAL APRIL 2023 04/11/2023 04/11/2023 0.00 50,000.00 1310
Vendor Number

ERIC REYES GUERRA
Total Vendor Amount
300.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 300.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INV0158 ARVIN PD FLEET WASH 4.12.23 04/12/2023 04/12/2023 0.00 300.00 1062
Vendor Number
FEDEX
Total Vendor Amount
134.31
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 134.31
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 8-092-95332 SHIPPING SVCS 3.30.23 04/07/2023 04/07/2023 0.00 134.31 1070
Vendor Number

GENERAL OFFICE
Total Vendor Amount
640.42
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 640.42
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 20719 METER READING FOR PD 02.28.23-4.1.23 04/03/2023 04/03/2023 0.00 103.62 20720 METER READING APD & COMM 2.28.23-4.1.23 04/03/2023 04/03/2023 0.00 536.80 1160
Vendor Number

HAAKER EQUIPMENT COMPANY
Total Vendor Amount
988.28
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 988.28
Payable Number Description Payable Date Due Date Discount Amount Payable Amount C5A0FM UNIT 302 STREET SWEEPER 03/29/2023 03/29/2023 0.00 988.28 1226
Vendor Number

JEFF JONES
Total Vendor Amount
129.80
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 129.80
Payable Number Description Payable Date Due Date Discount Amount Payable Amount ATTEND CSJVRMA MEETING ATTEND CSJVRMA MEETING 04/06/2023 04/06/2023 0.00 129.80 1575
Vendor Number

KEITH ROBERT COYLE
Total Vendor Amount
140.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 140.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 30609918 UNIT 292 , UNIT 283 WINDSHIELD REPAIRS 03/29/2023 03/29/2023 0.00 140.00

KERN COUNTY ANIMAL SERVICES
Total Vendor Amount
32,250.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 32,250.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount R23-111539 CONTRACT FEE OCT 2022-DEC2022 01/25/2023 01/25/2023 0.00 32,250.00 1088
Vendor Number

KERN COUNTY FORENSIC SERVICES
Total Vendor Amount
1,500.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 1,500.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 2036 ADULT ASSUALT EXAM 04/03/2023 04/03/2023 0.00 1,500.00 1331
Vendor Number

LN CURTIS & SONS
Total Vendor Amount
2,020.72
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 2,020.72
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INV691780 BOTHELL PD CARRIERS 03/31/2023 03/31/2023 0.00 2,020.72 1332
Vendor Number

MADLAND TOYOTA LIFT INC
Total Vendor Amount
2,348.39
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 2,348.39
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 14000822 UNIT 209 FUEL PRESSURE RELIEF VALVE ON FUEL RAIL 03/27/2023 03/27/2023 0.00 2,348.39 1512
Vendor Number
POSITIVE PROMOTIONS, INC.

Total Vendor Amount
106.31
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 106.31
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 07130602 REUSABLE BAG W/ TREATS-HAVING Y 04/03/2023 04/03/2023 0.00 106.31 1125
Vendor Number

SPARKLE TEXTILE RENTAL SERVICE
Total Vendor Amount
2,021.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 2,021.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount UNIFORM SERVICES MARCH 2023UNIFORM SERVICES MARCH 2023 04/12/2023 04/12/2023 0.00 2,021.00 1145
Vendor Number

VEOLIA WATER NORTH AMERICA MAINT NOTE
Total Vendor Amount
162,045.58
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 162,045.58
Payable Number Description Payable Date Due Date Discount Amount Payable Amount 9000086299 O & M SERVICES WASTEWATER FEBRUARY 2023 03/23/2023 03/23/2023 0.00 162,045.58 Bank: PY - Payroll Vendor Payables
1013
Vendor Number

ARVIN POLICE OFFICERS
Total Vendor Amount
800.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 800.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INV0000664 APOA Dues 04/14/2023 04/14/2023 0.00 800.00

CENTRAL CALIFORNIA ASSOC OF PUBLIC EMPLOYEES
Total Vendor Amount
933.74
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 933.74
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INV0000665 SEIU Dues 04/14/2023 04/14/2023 0.00 52.00
INV0000666 SEIU Dues 04/14/2023 04/14/2023 0.00 881.74
1312
Vendor Number

FRANCHISE TAX BOARD
Total Vendor Amount
300.00
Vendor Name
Payment Type Payment Number Payment Date Payment Amount Check 04/19/2023 300.00
Payable Number Description Payable Date Due Date Discount Amount Payable Amount INV0000668 ALEX GHAZARIAN 04/14/2023 05/15/2023 0.00 300.00

4.A.1
Attachment: Demand Register(s) of April 06, 2023 - April 20, 2023 (Demand Register(s) of April 06, 2023 - April 20, 2023.) Payment Register APPKT00373 - FOR AP 4/19/2023
4/19/2023 3:47:28 PM Page 5 of 6
Payment Summary
Type
Payment
Count Discount Payment
Payable
Bank Code Count
Main Pool Ck Check 26 22 0.00 395,672.11
Packet Totals: 26 22 0.00 395,672.11
Type
Payment
Count Discount Payment
Payable
Bank Code Count
PY Check43 0.00 2,033.74
Packet Totals:
43 0.00 2,033.74

4.A.1
Attachment: Demand Register(s) of April 06, 2023 - April 20, 2023 (Demand Register(s) of April 06, 2023 - April 20, 2023.)

4.B.1
Attachment: Payroll Register(s) of April 14, 2023 (Payroll Register(s) of April 14, 2023)

4.B.1
Attachment: Payroll Register(s) of April 14, 2023 (Payroll Register(s) of April 14, 2023) Special Arvin City Council Meeting Minutes – April 14, 2023

Page 1 of 2 ends

SPECIAL MEETING MINUTES

ARVIN CITY COUNCIL / SUCCESSOR AGENCY TO THE

ARVIN COMMUNITY REDEVELOPMENT AGENCY / ARVIN HOUSING AUTHORITY /

ARVIN PUBLIC FINANCING AUTHORITY
APRIL 14, 2023
CALL TO ORDER @ 7:06PM

PLEDGE OF ALLEGIANCE

INVOCATION
ROLL CALL: All present.

1. APPROVAL OF AGENDA AS TO FORM.

Motion to approve the Agenda.

Motion MPT Borreli Second CM Horton Vote 5-0

3. CONSENT AGENDA ITEM(S)
A. Approval of Demand Register(s) of March 24, 2023 – April 05, 2023.

B. Approval of Payroll Register(s) of March 31, 2023.

C. Approval of the Minutes of the Regular Meeting(s) of March 28, 2023.

D. Approval of Modification to City Clerk Job Description and Corresponding Salary Range.

E. Approval of Job Description and Corresponding Salary Range for Office Technician Position for the City Clerk’s Office.

Staff recommends approval of the Consent Agenda.

Motion to approve Consent Agenda Items 3A – 3E.

Motion MPT Borreli Second CM Reyes Vote 5-0

4.C.1
Attachment: Minutes of the Special Arvin City Council Meeting of April 14, 2023 (Minutes of the Special Meeting(s) of April 14, 2023.) Special Arvin City Council Meeting Minutes – April 14, 2023

Page 2 of 2 ends

4. ACTION ITEM(S)
A. Consideration and Approval of Assistant City Manager Employment Agreement. (Councilmembers Horton and Reyes)
Staff recommends that the Council discuss the contract and provide direction to the City Manager.

Motion to table above Action Item 4A.

Motion Mayor Trujillo Second CM Murillo Vote 3-2 (CM Horton and CM Reyes voted No.)

5. STAFF REPORTS

6. COUNCIL MEMBER COMMENTS

7. CLOSED SESSION ITEM(S)
A. THREAT TO PUBLIC SERVICES OR FACILITIES (Government Code §54957(a).)
Consultation with: City Manager and/or City Attorney. (one item) B. LIABILITY CLAIMS (Government Code §54956.95)
Claimant: Ruben Rodriguez
Agency claim against: City of Arvin
C. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Pursuant to
Government Code §54957(b)(1)
Position: City Attorney
CLOSED SESSION REPORT BY CITY MANAGER:
7A) The Council provided direction to the City Manager. 7B) The claim was denied.
7C) No reportable action.

8. ADJOURNED @ 8:32PM
Respectfully submitted,
Cecilia Vela, City Clerk

4.C.1
Attachment: Minutes of the Special Arvin City Council Meeting of April 14, 2023 (Minutes of the Special Meeting(s) of April 14, 2023.)

PROCLAMATION
DMV/Donate Life Month Proclamation
City of Arvin
April 2023
WHEREAS, organ, eye, tissue, marrow and blood donation are life-giving acts recognized worldwide as expressions of compassion to those in need;
WHEREAS, more than 100,000 individuals nationwide and more than 20,000 in California are currently on the national organ transplant waiting list, and on average, 17 people die each day while waiting; WHEREAS, the need for donated organs is especially urgent in Hispanic, Latino, and African American communities;
WHEREAS, a single individual’s donation of the heart, lungs, liver, kidneys, pancreas and small intestine can save up to eight lives;
WHEREAS, donation of tissue can save and heal the lives of more than 75 others; WHEREAS, organ donors saved more than 42,000 lives last year, the most ever; WHEREAS, any person can register to be an organ, eye and tissue donor regardless of age or medical conditions;
WHEREAS, being a registered donor does not impact the quality of life-saving medical care a person receives in an emergency;
WHEREAS, California residents can sign up with the Donate Life California Donor Registry online at any time by visiting www.donateLIFEcalifornia.org or, for Spanish-speakers, www.doneVIDAcalifornia.org WHEREAS, California residents can sign up to be an organ, eye and tissue donor when applying for or renewing their driver’s licenses or ID cards at the California Department of Motor Vehicles; WHEREAS, California residents interested in saving a life through living kidney donation may visit www.LivingDonationCalifornia.org;
NOW, THEREFORE, BE IT RESOLVED that in recognition of National Donate Life Month, the month of April 2023 is hereby proclaimed “DMV/Donate Life Month” in the City of Arvin, and in doing so we encourage all Californians to check “YES!” online, or when applying for or renewing their driver’s license or I.D. card at the DMV.

IN WITNESS WHEREOF I have hereunto set
my hand and caused the Great Seal of the City of
Arvin to be affixed this 25th day of April 2023.

Olivia Trujillo, Mayor
City of Arvin

4.D.1
Attachment: DMV Donate Life Month Proclamation April 2023_042523 (Proclamation - April 2023 - DMV/Donate Life Month) Page | 1
Donate Life Month: April 2023
OneLegacy Public Education Partnership
Since 2005, OneLegacy has requested the support of Southern California civic and community leaders to celebrate and encourage the gift of life at the Donate Life Run/Walk and throughout Donate Life Month.

As leaders of your community, we hope you will join us in taking steps to raise awareness of the vital need for organ and tissue donors, celebrating and embracing the generous choice to give the gift of life.

The Need: Over 20,000 Californians need a life-saving transplant Even though more than 100 people per day received a life-saving transplant in 2022, about 17 die every day still waiting.

California has only 12% of the nation’s population, but nearly 20% of the nation’s currentlywaiting transplant candidates.

Only about half of all Californians are registered organ, eye and tissue donors.

Illnesses that lead to the need for transplant are common. So, education about organ, eye and tissue donation should be common too.

Saying yes to organ, eye and tissue donation is saying yes to LIFE! The Request: Help Us Spread the Word to Save Lives
Celebrate Donate Life Month by sharing information about organ, eye and tissue donation with your residents throughout the month of April.

Include a call to action, encouraging residents to “sign up and save lives!” by visiting donatelifecalifornia.org/OneLegacy/
Using our ready-made tools, you can enhance organ, eye and tissue donation awareness via your…
Social Media Platforms
Email Newsletters
Utility Bill Inserts
City Website
City Proclamation
And more!
Getting started is as easy as Copy & Paste! Click here or follow the QR code above to begin:
https://www.onelegacy.org/wp/resources/dlm-toolkit-2023

4.D.2
Attachment: DMV Donate Life Month Outreach Packet_042523 (Proclamation - April 2023 - DMV/Donate Life Month) Page | 2
2023 Donate Life Run/Walk:

Join Us on Saturday, April 29!
We invite you to join us in-person for the 21st annual
Donate Life Run/Walk on Saturday, April 29, 2023! As
an elected leader in our community, your
participation sets an important tone for your
constituents, and means the world to the Donate Life
community. Please feel free to share information
about the Run/Walk with your friends and family as
well. The more, the merrier!
Anyone can visit www.DonateLifeRunWalk.org to register! Civic & community leaders are welcome to register as OneLegacy Partners, using the private link below.

OneLegacy Partner registration includes catered breakfast and reserved seating. Due to space limitations, we kindly ask each city to limit RSVPs to 2 total OneLegacy Partner registrations.

Private Link for OneLegacy Partner Registration (click below, and select “OneLegacy Partner” when registering):
https://runsignup.com/Race/Register?raceId=125320&privateEventCode=onelegacy | Limit: 2 Above & Beyond – More Ways to Educate, Inspire, and Save Lives Do you have additional ideas for how we can reach the community with this important message? Do you have general questions, comments, or concerns? Would you like an educational presentation about organ eye and tissue donation for your staff or community group? We want to hear from you! To submit events for OneLegacy Consideration, visit https://www.onelegacy.org/community/

4.D.2
Attachment: DMV Donate Life Month Outreach Packet_042523 (Proclamation - April 2023 - DMV/Donate Life Month) Page | 3
Facts about Donation and Transplantation: Did you know…? THE GIFT – One organ donor can save the lives of up to eight (8) people by donating their heart, lungs, kidneys, liver, pancreas and small intestines.

THE GIFT – On average, one tissue donor can enhance the lives of more than 75 people by donating their corneas, skin, bones, and heart valves, among others.

THE NEED – More than 42,000 organ transplants were performed in the U.S. in 2022, which was possible through the generosity of deceased and living donors.

THE NEED – Over 100,000 people are currently waiting for an organ transplant in the U.S.; over 20,000 in California alone.

THE NEED – 17 patients die every day while waiting because the organ they needed did not become available in time.

THE NEED – The need for transplants is disproportionately high among minority populations.

Communities of color often suffer higher incidences of conditions such as high blood pressure or diabetes, which can lead to the need for a kidney transplant.

DONOR REGISTRATION – To register to be an organ, eye and tissue donor Californians can go to www.donateLIFEcalifornia.org, or its Spanish counter-part www.doneVIDAcalifornia.org.

THE FACTS – Patients are fairly matched with a donor based on the severity of their illness, body size, tissue type, blood type and other important medical information.

THE FACTS – Over 39,000 patients have their sight restored every year through cornea transplants.

THE FACTS – Nearly one third of all deceased donors are age 50 or older. People of all ages and medical histories should consider themselves potential donors.

THE FACTS – Every major religion in the United States supports organ donation as one of the highest expressions of compassion and generosity.

LIVING DONATION - A living donor can provide a kidney or a portion of their liver, lung, pancreas or intestine. To explore living donation, visit www.LivingDonationCalifornia.org Updated: 2/6/2023

4.D.2
Attachment: DMV Donate Life Month Outreach Packet_042523 (Proclamation - April 2023 - DMV/Donate Life Month) Reso Approving Task Authorization for Replacement of Digester Blower & Effluent Pump at WWTF.

Page 1 of 2 ends

RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARVIN

APPROVING A TASK AUTHORIZATION BETWEEN THE CITY OF

ARVIN AND VEOLIA NORTH AMERICA FOR REPLACEMENT OF A

DIGESTER BLOWER AND EFFLUENT PUMP AT THE WASTEWATER
TREATMENT FACILITY.

WHEREAS, Veolia operates the City of Arvin Wastewater Treatment Facility on behalf of the city; and
WHEREAS, three digester blowers were installed in 1985, one failed in 2020 and was replaced in 2022, the second is in danger of failing and needs immediate replacement, and the third is scheduled for replacement in 2024; and
WHEREAS, due to the age of the second and third blowers Veolia management has concerns about the additional wear and tear on those devices and that they may fail at any time; and
WHEREAS, Veolia has solicited pricing from known contractors and vendors and has provided a Task Authorization for a total cost of $48,381.00 for the new digester blower; and WHEREAS, three effluent pumps were installed in 1985, pump 607-B failed in 2021 and was replaced in 2021, and pumps 607-A and 608 are scheduled for replacement in 2023 and 2024 as part of the plant’s five year capital improvement plan (CIP); and WHEREAS, Veolia management has determined that is necessary now to replace pump 608 now as part of the CIP; and
WHEREAS, Veolia has solicited pricing from known contractors and vendors and has provided a Task Authorization for a total cost of $84,407.00 which includes a 5% contingency for pump 608 replacement; and
WHEREAS , the City Manager believes this cost to be fair and reasonable, and for the Task Authorization to be approved; and

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF ARVIN AS FOLLOWS:

Section 1: The foregoing recitals are true and correct.

Section 2: The Council approves the allocation of $132,788 to be taken from the sewer fund.

Section 3: The Council authorizes Veolia to proceed with this project and to act on behalf of the City of Arvin.

4.E.1
Attachment: Reso Approving Task Order Authorization for Equipment Replacement [Revision 2] (Veolia Equipment Replacement of Digester Reso Approving Task Authorization for Replacement of Digester Blower & Effluent Pump at WWTF.

Page 2 of 2 ends

Section 4: The Council authorizes the City Manager or his designee to sign the task order between Veolia and the City of Arvin.

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Arvin at a regular meeting thereof held on the 25th day of April 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
CECILIA VELA, City Clerk

CITY OF ARVIN
By:

OLIVIA TRUJILLO, Mayor
APPROVED AS TO FORM:

By:

NATHAN HODGES, City Attorney
Hodges Law Group
I, ______________________________, City Clerk of the City of Arvin, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of Arvin on the date and by the vote indicated herein.

4.E.1
Attachment: Reso Approving Task Order Authorization for Equipment Replacement [Revision 2] (Veolia Equipment Replacement of Digester

4.E.2
Attachment: TA - Arvin WWTP Digester Blower #3 Replacement (Veolia Equipment Replacement of Digester Blower & Effluent Pump at WWTF)

4.E.2
Attachment: TA - Arvin WWTP Digester Blower #3 Replacement (Veolia Equipment Replacement of

4.E.2
Attachment: TA - Arvin WWTP Digester Blower #3 Replacement (Veolia Equipment Replacement of Digester Blower & Effluent Pump at WWTF)

4.E.3
Attachment: Task Authorization for Arvin WWTP Pump 608 Replacement (Veolia Equipment Replacement of Digester Blower & Effluent Pump

4.E.3
Attachment: Task Authorization for Arvin WWTP Pump 608 Replacement (Veolia Equipment Replacement

4.E.3
Attachment: Task Authorization for Arvin WWTP Pump 608 Replacement (Veolia Equipment Replacement of Digester Blower & Effluent Pump

4.E.3
Attachment: Task Authorization for Arvin WWTP Pump 608 Replacement (Veolia Equipment Replacement

4.E.3
Attachment: Task Authorization for Arvin WWTP Pump 608 Replacement (Veolia Equipment Replacement of Digester Blower & Effluent Pump

4.E.3
Attachment: Task Authorization for Arvin WWTP Pump 608 Replacement (Veolia Equipment Replacement

CITY OF ARVIN
Staff Report
Meeting Date: April 25, 2023
TO: Arvin City Council
FROM: Christine Viterelli, Grants Manager
Jeff Jones, City Manager
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARVIN

CONSENTING TO THE SUBMITTAL OF A GRANT APPLICATION AND

APPLICATION DOCUMENTS TO THE CALIFORNIA DEPARTMENT OF

TRANSPORTATION FOR THE LOW CARBON TRANSIT OPERATIONS
PROGRAM (LCTOP); AND AUTHORIZING RELATED ACTIONS FOR THE FOLLOWING PROJECT: ARVIN ELECTRIC BUS INFRASTRUCTURE
INSTALLATION PROJECT $49,309.

BACKGROUND:

The City of Arvin would like to submit to the 2022-2023 Low Carbon Transit Operations grant program. The grant request is to fund a matching grant for the purchase of an electric bus and renewable infrastructure funding. This is the City’s 1
st grant request to LCTOP to provide funds
for the purchase and installation of microgrid infrastructure. Arvin’s 99313 allocation is $48,260 and Kern COG is contributing their 99314 allocations of $1,049. Arvin’s LCTOP apportionment in total is $49,309.

STAFF RECOMMENDATION:

Staff recommends approval of the resolution.

FINANCIAL IMPACT:

No fiscal impact.

ATTACHMENTS:
2023 Kern COG Program of Projects allocations.

4.F.1
Attachment: Staff Report LCTOP 04.25.23 (Grant Application for LCTOP)

Page 1 of 2 ends

Reso Consenting to submittal of Grant Application to CA Dept of Transportation for LCTOP.

RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARVIN

CONSENTING TO THE SUBMITTAL OF A GRANT APPLICATION

AND APPLICATION DOCUMENTS TO THE CALIFORNIA

DEPARTMENT OF TRANSPORTATION FOR THE LOW CARBON
TRANSIT OPERATIONS PROGRAM (LCTOP); AND AUTHORIZING
RELATED ACTIONS FOR THE FOLLOWING PROJECT: ARVIN

ELECTRIC BUS INFRASTRUCTURE INSTALLATION PROJECT
$49,309.

WHEREAS, the City of Arvin is an eligible project sponsor and may receive state funding from the Low Carbon Transit Operations Program (LCTOP) for transit projects; and WHEREAS, the statutes related to state-funded transit projects require a local or regional implementing agency to abide by various regulations; and WHEREAS, Senate Bill 862 (2014) named the Department of Transportation (Department) as the administrative agency for the LCTOP; and WHEREAS, the Department has developed guidelines for administering and distributing LCTOP funds to eligible project sponsors (local agencies); and WHEREAS, the City of Arvin wishes to delegate authorization to execute these documents and any amendments thereto to Jerry Breckinridge, City Manager, and WHEREAS, the City of Arvin wishes to implement the LCTOP project listed above, NOW, THEREFORE, BE IT RESOLVED THAT: The City Council of the City of Arvin does hereby resolve as follows:

Section 1: The City Manager, Jeff Jones, is hereby authorized and empowered to execute in the name of the City of Arvin all grant documents including, but not limited to, applications, agreements, amendments and request for payments, necessary to secure LCTOP grant funds and implement the approved grant projects from the Caltrans Department of Transportation (Caltrans), subject to approval as to legal form by the City Attorney.

Section 2: That the City of Arvin agrees to comply with all conditions and requirements set forth in the Certification and Assurances and the Authorized Agent documents and applicable statutes, regulations, and guidelines for all LCTOPfunded transit projects.

Section 3: That it hereby authorizes the submittal of the following project nominations and allocation requests to the Department in FY 2019-2020 LCTOP funds:

4.F.2
Attachment: Reso LCTOP 04.25.23 (Grant Application for LCTOP)

Page 2 of 2 ends

Reso Consenting to submittal of Grant Application to CA Dept of Transportation for LCTOP. 1) Arvin Electric Bus Infrastructure Installation Project: $ 49,309.

Benefit to a Priority Population: Arvin is a disadvantaged community whose residents will benefit by reducing greenhouse gases as a result of transitioning from diesel buses to electric buses.

Amount to benefit Priority Populations: $ 46,843.

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Arvin at a regular meeting thereof held on the 25 th day of April 2023 by
the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
CECILIA VELA, City Clerk

CITY OF ARVIN
By:

OLIVIA TRUJILLO, Mayor
APPROVED AS TO FORM:

By:

4.F.2
Attachment: Reso LCTOP 04.25.23 (Grant Application for LCTOP) FY 2022/2023
Agency Project Description 99313 99314 Total apportionment Project Amount Arvin
Microgrid (transit Infrastructurerenewable)
$48,260 $1,049 $49,309
California City $36,743 $435 $37,178
Delano Free Fares $125,960 $4,719 $130,679
GET $1,371,098 $99,327 $1,470,425
Kern Transit $384,502 $20,174 $404,676
McFarland $34,162 $204 $34,366
Ridgecrest $68,956 $2,689 $71,645
Shafter $50,342 $972 $51,314
Taft $17,229 $6,082 $23,311
Tehachapi $30,410 $477 $30,887
Wasco $65,585 $538 $66,123
Regional Totals $2,233,247 $136,666 $2,369,913
Regional Surplus
Low Carbon Transit Operations Draft Program
Program of Projects
Regional Surplus Amt.
$0
Attachment "A" Kern
County

4.F.3
Attachment: Copy of Attachment A LCTOP POP 3-15-23 (Grant Application for LCTOP)

Page 1 of 3 ends

Staff Report Ordinance Amending Title 8 To Permit A Limited Number of Store Front Sales of Commercial Cannabis.

CITY OF ARVIN
Staff Report
Meeting Date: April 25, 2023
TO: City Council
FROM: Jake Raper, Consultant Planner
Jeffrey Jones, City Manager
SUBJECT: An Ordinance of the City Council of the City of Arvin Amending Ordinance 2022-479 Which Established Title 8, Chapter 8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code To Permit a Limited Number of Type 10 or Type 12 Store Front Sales of Commercial Cannabis and may permit Store Front Sales in the Industrial, Agricultural and Bear Mountain Central Business District.

BACKGROUND:

The City Council adopted Ordinance No. 479 on March 22, 2022 establishing Chapter 8.29 Marijuana, Section 8.29.05 Commercial Cannabis Activity and said Ordinance became effective on April 22, 2022. The City Council is requested to further amend Ordinance No. 2022-479 to permit a limited number of Type 10 or Type 12 Store Front Sales of Commercial Cannabis. First reading of the Ordinance was held on March 28, 2023.

The public hearing notice for this item was published in the Bakersfield Californian on March 03, 2023 in accordance with Government Code 36933. The proof of publication of the public notice is on file in the Arvin City Clerk’s office.

DISCUSSION:

The number of permitted Store Front Sales is recommended to be limited to a ratio of one store front sales per 10,000 population or portion thereof. The proposed amendments will allow two and up to three Store Front Sales to be established within the City of Arvin based upon the current population of 19,522. The location of the Store Front Sales is limited per the existing ordinance and restricts the locations to the Industrial, M-1, M-2, and M-3, Zones and the Agricultural, A-1- A-2, Zones and may be permitted within the Bear Mountain Central Business District as established by Chapter 17.68. Minor amendments proposed will not require the Store Front Operation site to be fenced but will require all existing security measures per the existing ordinance. The amendments will not eliminate the safeguards nor reduce operational standards required by State Law, current ordinances, or proposed ordinance amendments.

The proposed ordinance amendment for the selection of a Store Front Sales applicant will require the submittal of an application “Proposal for Operation and Contribution to Community Benefit”.

Due to the limited number of Store Front Sales, it is anticipated that there will be more than two

5.A.1
Attachment: 1 - Staff Report Ordinance Amending Title 8 Store Front Sales Commercial Cannabis_042523 (Public Hearing - Second Reading

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Staff Report Ordinance Amending Title 8 To Permit A Limited Number of Store Front Sales of Commercial Cannabis.
interested in obtaining the Store Front Sales allocation. The proposed ordinance amendment requires the applicant to be selected by the City Manager and approval of the Proposal for Operation and Contribution to Community Benefit prior to the submittal of a Commercial Cannabis Application. Further the code amendment will continue to retain the definitions, enforcement, violations, insurance coverage limits, application review and approval procedures.

In addition, all other commercial cannabis activity, including but not limited to cultivation, delivery, and dispensing, not specifically allowed by the Ordinance shall be prohibited. Personal cannabis activity, both recreational and medical, shall remain governed by the requirements of Chapter 8.29 of Title 8 of the Arvin Municipal Code.

The proposed amendments, Attachment 1- Inserted Proposed Text Amendments to Ordinance No. 479, have been underlined, Bolded and highlighted in yellow, and have been inserted into Ordinance No. 2022-479 so that the proposed amendments may be distinguished from the existing ordinance.

ENVIRONMENTAL:

The proposed ordinance amendment is exempt from the California Environmental Quality Act ("CEQA") because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment, as this Ordinance merely amends the Arvin Municipal Code to establish new and amended procedures and requirements for the permitting and regulation of certain commercial cannabis activities, the environmental impacts of which will be assessed on a use-specific basis. (CEQA Guidelines § 15061(b)(3)). Furthermore, the City Council finds and determines the Ordinance would also be subject to Categorical Exemptions under CEQA Guidelines sections 15307 and 15308, as it consists of regulations and restrictions on activities to assure the maintenance, restoration, or enhancement of natural resources and the environment by prohibiting environmentally destructive components of unregulated cannabis cultivation. (CEQA Guidelines §§ 15307 and 15308.) Finally, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this Ordinance. Upon adoption of the ordinance, it is recommended that the City Clerk file the Notice of Exemption with the Kern County Clerk’s Office.

RECOMMENDATION:

Staff recommends the City Council open the hearing, allow for public testimony, close the hearing, waive second reading of the Ordinance, and approve the adoption of an Ordinance of the City Council of the City of Arvin Amending Ordinance 2022-479 Which Established Title 8, Chapter

8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code To Permit a Limited Number of Type 10 or Type 12 Store Front Sales of Commercial Cannabis and may permit Store Front Sales in the Industrial, Agricultural and Bear Mountain Central Business District.

FISCAL IMPACT:

There were consultant staff costs involved in the preparation of the Ordinance amendment. A separate fee and cost recovery for all Commercial Cannabis applications were previously adopted and the application fee and cost recovery fees are anticipated to be full cost recovery for future Commercial Cannabis applications. The overall impact of the Ordinance is anticipated to have a positive financial impact by encouraging an increase in retail sales tax. In addition, the existing ordinance requires the forward payment of $25,000.00 per quarter for each Commercial Cannabis

5.A.1
Attachment: 1 - Staff Report Ordinance Amending Title 8 Store Front Sales Commercial Cannabis_042523 (Public Hearing - Second Reading

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Staff Report Ordinance Amending Title 8 To Permit A Limited Number of Store Front Sales of Commercial Cannabis.
permit issued by the City Manager. This payment is to be credited against the future Commercial Cannabis Tax as established by Tile III, Chapter 3.19 Commercial Cannabis Tax. In addition, in as much as the City has limited the total Commercial Cannabis square footage and limited the Type 12 Microbusiness to 10, the failure to implement and operate an approved Commercial Cannabis permit within two (2) years the forward payment will not be entitled to a refund.

EXHIBIT:

Ordinance No. 479, adopted on March 22, 2022, establishing Chapter 8.29 Marijuana, Section

8.29.05 Commercial Cannabis Activity and said ordinance became effective on April 21, 2022.

The City Council is requested to further amend Ordinance No. 2022-479 to permit a limited number of Type 10 or Type 12 Store Front Sales of Commercial Cannabis.

ATTACHMENTS:
1- Inserted Proposed Text Amendments to Ordinance No. 479 2- Public Hearing Notice: On file at the City Clerk’s Office 3- Notice of Exemption – Store Front Sales Commercial Cannabis 4- Application Operational and Contribution to Community Benefit

5.A.1
Attachment: 1 - Staff Report Ordinance Amending Title 8 Store Front Sales Commercial Cannabis_042523 (Public Hearing - Second Reading

Page 1 of 6 ends

Ordinance Amending Title 8 to Permit A Limited Number of Type 10 & Type 12 Store Front Sales of Commercial Cannabis.

ORDINANCE NO. _________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARVIN
AMENDING ORDINANCE 2022-479 WHICH ESTABLISHED TITLE 8,
CHAPTER 8.29, SECTION 8.29.05 COMMERCIAL CANNABIS

ACTIVITY OF THE ARVIN MUNICIPAL CODE TO PERMIT A LIMITED NUMBER OF TYPE 10 AND TYPE 12 STORE FRONT SALES OF

COMMERCIAL CANNABIS AND MAY PERMIT STORE FRONT SALES

IN THE INDUSTRIAL, AGRICULTURAL AND BEAR MOUNTAIN
CENTRAL BUSINESS DISTRICT.

WHEREAS, the City of Arvin ("the City") has the authority under Article XI, Section 7 of the California Constitution, to enact regulations for the public peace, morals, and welfare of the City; and
WHEREAS, on March 22, 2022, the City Council adopted Ordinance No. 2022-479 establishing Chapter 8.29 Marijuana, Section 8.29.05 Commercial Cannabis Activity and said ordinance became effective on April 22, 2022; and
WHEREAS, the City Council desires to further amend Ordinance No. 2022-479 to permit a limited number of Type 10 or Type 12 Store Front Sales of Commercial Cannabis; and WHEREAS, the City Council desires to further amend Ordinance No. 2022-479 to permit Store Front Sales within the Industrial, Agricultural, and Bear Mountain Central Business District as established by Chapter 17.68; and
WHEREAS, all citations and references stated and referenced in the adoption of Ordinance 2022-479 are hereby incorporated herein; and
WHEREAS, the City has a compelling interest in protecting the public health, safety, and welfare of its citizens, residents, visitors and businesses, and in preserving the peace and quiet of the neighborhoods within the City by regulating commercial cannabis activities; and WHEREAS, based on the foregoing and pursuant to the above-described express statutory authority and its police power, the City desires to explicitly prohibit certain cannabis activities, outdoor cultivation (for both medicinal and adult-use), and to enact reasonable regulations for other commercial cannabis activities in order to protect and promote public health, safety and welfare; and
WHEREAS, the City Council now sees fit to further amend Ordinance No. 2022-479, establishing limited opportunity for Type 10 or Type 12 Store Front Sales of Commercial Cannabis and further amending and adding new regulatory language within Chapter 8.29 "Commercial Cannabis Activity" of the Arvin Municipal Code, and to amend and supplement the regulations imposed by said chapter on commercial cannabis businesses and applicants in the City; and

5.A.2
Attachment: 2 - Ordinance Amending Title 8 Store Front Sales Commercial Cannabis_042523 (Public Hearing - Second Reading Ordinance

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Ordinance Amending Title 8 to Permit A Limited Number of Type 10 & Type 12 Store Front Sales of Commercial Cannabis.

WHEREAS, nothing in this Ordinance shall be construed to: (1) allow any person to engage in conduct that endangers others or causes a public nuisance; or (2) allow any activity relating to the cultivation, manufacturing, testing, distribution, or consumption of cannabis which is illegal under state or federal law; and
WHEREAS, all legal prerequisites to the adoption of this ordinance have occurred.

NOW THEREFORE, the City Council of the City of Arvin does hereby ordain as follows:

SECTION 1. The above recitals are true and correct and are incorporated herein.

SECTION 2. The City Council finds and determines that the Ordinance is exempt from the California Environmental Quality Act ("CEQA") because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment, as this Ordinance merely amends the Arvin Municipal Code to establish new and amended procedures and requirements for the permitting and regulation of certain commercial cannabis activities, the environmental impacts of which will be assessed on a use-specific basis. (CEQA Guidelines § 15061(b)(3)). Furthermore, the City Council finds and determines the Ordinance would also be subject to Categorical Exemptions under CEQA Guidelines sections 15307 and 15308, as it consists of regulations and restrictions on activities to assure the maintenance, restoration, or enhancement of natural resources and the environment by prohibiting environmentally destructive components of unregulated cannabis cultivation. (CEQA Guidelines §§ 15307 and 15308.) Finally, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this Ordinance. Therefore, the City Council also adopts Categorical Exemptions for this Ordinance, pursuant to CEQA Guidelines sections 15307 and 15308.

SECTION 3. Chapter 8.29 Marijuana of the Arvin Municipal Code, entitled "Marijuana” Section 8.29.05 Commercial Cannabis Activity," as added to the Arvin Municipal Code by City Ordinance No.2022-479 adopted March 22, 2022. and is amended to read as follows:

Chapter 8.29 MARIJUANA
SECTION 8.29.05 COMMERCIAL CANNABIS ACTIVITY

1. Section 8.29.05.04 - Permitted Types of Commercial Cannabis Businesses, subsection a 16 and 18 is amended and subsection 22 is added to read as follows:

16. Type 10 = Retailer (subject to Section 8.29.050, i.e. delivery only). See below for exception.

18. Type 12 = Microbusiness (subject to Sections 8.29.05.04(c) and 8.29.050). See below for exception.

5.A.2
Attachment: 2 - Ordinance Amending Title 8 Store Front Sales Commercial Cannabis_042523 (Public Hearing - Second Reading Ordinance

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Ordinance Amending Title 8 to Permit A Limited Number of Type 10 & Type 12 Store Front Sales of Commercial Cannabis.

22. Types 10 and 12 Retailer – Store Front Sales: "Storefront sales" means the retail sale of cannabis or cannabis products directly to customers from a storefront, dispensary, or other permanent building or structure, or in any manner that does not constitute delivery.

2. Section 8.29.05.04 - Permitted Types of Commercial Cannabis Businesses, subsection d is added as follow:
d. The number of Store Front Sales: One Store Front Sales per 10,000 population or portion thereof. NOTE: Based upon this ration the City population would permit two (2) possible three (3) Store Front Sales. The City of Arvin's 2020 Population is 19,552 – The most recent population determination shall determine the number of Store Front Sales to be permitted.

Issuance of a Commercial Cannabis Permit for Store Front Sales shall be selected based upon completion of the preliminary review “Proposal for Operation and Contribution to Community Benefit” application. Approval and selection of a proposed Store Front operator by the City Manager is required prior to the submittal of a Commercial Cannabis Permit application.

3. Section 8.29.050.05 - Prohibited Types of Commercial Cannabis Businesses, Subsection a – 6 is deleted:

6. Type 10 and 12 (Storefront sales prohibited.)

4. Section 8.29.05.06 - Required Licenses and Permits, Subsection c -2 is amended to read as follows: .

2. No commercial cannabis permit shall authorize public access to any commercial cannabis business. Only persons involved in the bona fide business activities of a commercial cannabis business shall be authorized to access the premises of a commercial cannabis business. Store Front Sales shall allow public access permitted under Section 8.29.05.04 (d).

5. Section 8.29.05.08 - Security Measures, Subsection a – 11a is added as follows:
(11a) Fencing of site and/or facility shall not be required for Store Front Sales, however, the City Manager may require additional security measures to be implemented as provided in Chapter 8.29.05.

6. Section 8.29.05.110 - Location of Commercial Cannabis Business - Proximity to Sensitive Uses, subsection d is amended as follows:
(a) Commercial cannabis activity shall be authorized within the following zoning districts of the City: M-1, M-2, M-3, A-1 and A-2 zoning districts and in addition, Store Front Sales may be

5.A.2
Attachment: 2 - Ordinance Amending Title 8 Store Front Sales Commercial Cannabis_042523 (Public Hearing - Second Reading Ordinance

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Ordinance Amending Title 8 to Permit A Limited Number of Type 10 & Type 12 Store Front Sales of Commercial Cannabis.
authorized within the Bear Mountain Central Business District as established by Chapter

17.68. Commercial cannabis activity is prohibited in all other zoning districts of the City. (d) A commercial cannabis business generally may not operate adjacent to, across a street or alley from, or within two hundred feet (200') of, any residential zoning district or area of the City. Location distance and/or separating commercial cannabis business, as described above, shall be measured from the exterior of the structure(s). Applicant shall prepare locational map verifying locational distance and shall certify that the structure locations meet the two hundred feet separation. However, if a proposed building or an existing building or facility in a City zoning district enumerated in subsection (a) is located adjacent to or across a street or alley from a residential zoning district or area of the City, a commercial cannabis business may be permitted to operate in such location if, in the opinion of City Manager, the operation of a commercial cannabis business in such location would not tend to cause a public nuisance, nor a situation which may result in repeated police department responses or a negative impact on the adjacent residential units or dwellings. Any subsequent expansion of a commercial cannabis business permitted to operate in such a location, which expansion requires a new or amended commercial cannabis permit, shall also be subject to a determination by the City Manager that the expansion would not tend to cause a public nuisance or a situation which may result in repeated police department responses or a negative impact on the adjacent residential units or dwellings.

7. Section 8.29.05.160 - Fees and Charges, Subsection c-4 Added as follows:

4. Pursuant to Section 8.29.05.04(d), the City has limited the Type 10 and 12 Store Front Sales based upon the ratio of 1 Store Front Sales per 10,000 population or portion thereof. Payment per subsection c-3, above shall apply.

8. Section 8.29.05.295 is added to read as follows:

Section 8.29.05.295 – Operation and Contribution to Community Benefit - Type 10 and 12 Store Front Sales be subject to preliminary approval by the City Manager:
(a) Limitation of Store Front Sales: No more than one Store Front Sales per 10,000 population or portion thereof will be permitted.
(b) Operation and Contribution to Community Benefit Application Required: Prior to the submittal of a Commercial Cannabis Application for a Store Front Sales, a Proposal for Operation and Contribution to Community shall be submitted to the City Manager. The City Manager may create application that outline minimum expectations of the proposed operator.
(c) Review Time of Application: Upon receipt of an application Proposal for Operation and Contribution to Community, the City Manager shall review within 60 days and may prepare an acceptance letter or prepare a counter proposal. (d) Competing Proposals and Applications: Should the City Manager receive more than one Proposal for Operation and Contribution to Community, the City Manager shall have the

5.A.2
Attachment: 2 - Ordinance Amending Title 8 Store Front Sales Commercial Cannabis_042523 (Public Hearing - Second Reading Ordinance

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Ordinance Amending Title 8 to Permit A Limited Number of Type 10 & Type 12 Store Front Sales of Commercial Cannabis.
sole authority to select the most beneficial contribution to the City and operational effectiveness among the applications submitted.
(e) Required Acceptance Letter Prior to the Submittal of a Commercial Cannabis Application: The applicant must receive an acceptance letter from the City Manager of the Proposal for Operation and Contribution to Community Benefit, prior to the submittal of a Store Front Sales - Commercial Cannabis Permit Application. (f) Square Footage Required: The square footage of premises of each permitted commercial cannabis business shall be a minimum of 2,000 square feet in area. A coexisting, Commercial Cannabis business, subtenant, may be located, with the City Manager or designee’s approval or conditional approval, in a building area of less than 2,000 square feet where the Commercial Cannabis business is in conjunction with another approved Commercial Cannabis activity permitted in a building larger than 2,000 square feet. (g) No accessory structures in support of the Commercial Cannabis business will be permitted.

SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance, in that the invalid provision shall be deemed severed from the ordinance and the balance shall remain in effect. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions thereof may be declared invalid or unconstitutional.

SECTION 6: This Ordinance shall take effect thirty (30) calendar days after its adoption.

Within fifteen (15) calendar days after its adoption, the Ordinance, or a summary of the Ordinance, shall be published once in a newspaper of general circulation. //////
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Attachment: 2 - Ordinance Amending Title 8 Store Front Sales Commercial Cannabis_042523 (Public Hearing - Second Reading Ordinance

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Ordinance Amending Title 8 to Permit A Limited Number of Type 10 & Type 12 Store Front Sales of Commercial Cannabis.

I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council of the City of Arvin after waiving reading, except by Title, at a regular meeting thereof held on the 28th day of March 2023, and adopted the Ordinance after the second reading at a regular meeting held on the 25th day of April 2023, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

CECILIA VELA, City Clerk

CITY OF ARVIN
By:

OLIVIA TRUJILLO, Mayor

APPROVED AS TO FORM
By:

NAHTAN HODGES, City Attorney
Hodges Law Group
I, _________________________, City Clerk of the City of Arvin, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Ordinance passed and adopted by the City Council of the City of Arvin on the date and by the vote indicated herein.

5.A.2
Attachment: 2 - Ordinance Amending Title 8 Store Front Sales Commercial Cannabis_042523 (Public Hearing - Second Reading Ordinance

5.A.3
Attachment: Ordinance No. 2022-479 Adopted March 22, 2022 (Public Hearing - Second Reading Ordinance Amending Title 8 Store Front Sales

5.A.3
Attachment: Ordinance No. 2022-479 Adopted March 22, 2022 (Public Hearing - Second Reading Ordinance Amending Title 8 Store Front Sales ORDINANCE NO. 2022-479 ADOPTED MARCH 22, 2022
Section 8.29.05.01 - Purpose and Intent.
(a) It is the purpose and intent of this Chapter to adopt local prohibitions and regulations applicable to commercial cannabis activity as may be permitted by the Medicinal and AdultUse Cannabis Regulation and Safety Act and other applicable State law, as amended, pertaining to regulation of commercial cannabis and the use of land, in order to protect the City's neighborhoods, residents, and businesses from negative impacts. It is a further purpose and intent of this Chapter to regulate the cultivation, manufacturing and testing of cannabis and cannabis products in a manner which is responsible and which protects the health, safety, and welfare of the residents of the City, and to enforce rules and regulations consistent with applicable state law including, but not limited to, the Medicinal and Adult-Use Cannabis Regulation and Safety Act, the Adult Use of Marijuana Act, the Compassionate Use Act of 1996, and the Medical Marijuana Program Act. In furtherance of these objectives, this Chapter imposes an annual regulatory permit requirement, a conditional use permit requirement, employee work permit requirements, and operating requirements applicable to persons who seek to own, operate, or engage in commercial cannabis businesses within the City as authorized under this Chapter or the Arvin Municipal Code. Nothing in this Chapter is intended to authorize any activity which is in violation of state or federal law. The provisions of this Chapter are in addition to the business license requirements applicable to business conducted in the City, and to all other applicable requirements of the Arvin Municipal Code. (b) Pursuant to Section 7 of Article XI of the California Constitution, the City is authorized to adopt ordinances that establish standards, requirements, and regulations for local licenses and permits for commercial cannabis activity. Any standards, requirements, and regulations regarding commercial cannabis activity, including health and safety, testing, laboratory operations and safety, security, and worker protections established by the State, or any of its agencies, departments, or divisions, shall be the minimum standards applicable in the City, and the provisions of this ordinance shall apply in addition thereto.

Section 8.29.05.02 - Definitions.

When used in this Chapter, the following terms shall have the meanings ascribed to them in this Section. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.
(a) "Building Official" means the Building Official for the City or his/her designee. (b) "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. (c) (c) "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. "Cannabis" also does not include the weight of any other ingredient combined

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store with cannabis to prepare topical or oral administrations, food, drink, or other product. For the purpose of this Chapter, "Cannabis" does not mean industrial hemp as that term is defined by Section 11018.5 of the California Health and Safety Code.
(c) "Cannabis concentrate" means manufactured cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product's potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this Chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health & Safety Code, or a drug, as defined by Section 109925 of the Health & Safety Code. (d) "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
(e) "Chief of Police" means the Chief of Police for the Arvin Police Department or his/her designee.
(f) "City Manager" means the City Manager for the City or his/her designee. (g) "Commercial cannabis activity" or "commercial cannabis business" includes cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale (including retail and wholesale) of cannabis or cannabis products conducted or engaged in by any person, except cultivation and possession of cannabis for personal use as governed by Arvin Municipal Code Chapter 8.29, Section 8.29.05 and/or as preempted by State law.
(h) "Commercial cannabis permit" means a permit issued by the City pursuant to this Chapter to a commercial cannabis business.
(i) "Cultivation" means any activity involving the propagation, planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (j) "Cultivation site" means a facility where cannabis is propagated, planted, grown, harvested, dried, cured, graded, or trimmed, or where all or any combination of those activities occur.
(k) "Day care center" means, as the term is understood in Business & Professions Code Section 26001(o), as may be amended, any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school age childcare centers.
(l) “Delivery" means the commercial transfer of cannabis or cannabis products to a customer at the customer's home or other location remote from the premises of the commercial cannabis business making the delivery and includes the use by a retailer of any technology platform. "Delivery" does not mean or include storefront sales.
(m) "Distribution" means the procurement, sale and transport of cannabis and cannabis products between licensees.
(n) "Distributor" means a licensee engaged in distribution. (o) "Edible cannabis product" means a cannabis product that is intended to be used, in whole or in part, for human consumption. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store Code or a drug as defined by Section 109925 of the California Health and Safety Code.
(p) Employee – See (ee) Responsible Person.
(q) "Fire Chief" means the Fire Chief for the City as designated by the Kern County Fire Department, or his or her designee.
(r) "HIPAA" means the Health Insurance Portability and Accountability Act of 1996. (s) "Labeling" means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.
(t) "License" or "State License" means a license issued by the State of California, or one of its departments or divisions, pursuant to Division 10 of the California Business & Professions Code. "Licensee" means a person holding a State License.
(u) "Live plants" means living cannabis flowers and plants, including seeds, sprouts, immature plants (including unrooted clones), and vegetative stage plants. (v) "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(w) "Manufacturer" means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container; "Manufacturer" includes the activity of manufacturing.
(x) "Manufacturer 1" means a licensee that manufactures cannabis products using nonvolatile solvents, or no solvents.
(y) "Manufacturer 2" means a licensee that manufactures cannabis products using volatile solvents.
(z) "Nursery" means a licensee that produces only cannabis clones, immature cannabis plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.
(aa) "Owner" means any person who has an ownership interest in a commercial cannabis business.
(bb) "Package" means any container or receptacle used for holding cannabis or cannabis products.
(cc) "Person" means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, nonprofit organization, or any other group or combination acting as a unit and includes the plural as well as the singular.
(dd) "Premises" means the designated structure or structures and the surrounding land that is owned, leased or otherwise held under the control of a commercial cannabis permit applicant or permittee where commercial cannabis activity will be or is conducted. This definition does not alter the meaning of the term "Premises" as utilized by the State of California for commercial cannabis licensing.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (ee) "Responsible person" means any person who is responsible for, or who will oversee or participate in, the direction, control, management, or supervision of a commercial cannabis business.
(ff) "Retailer" means a person who engages in the retail sale of cannabis or cannabis products to customers.
(gg) "Sell," "sale" and "to sell" include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting and receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.
(hh) "School" means, as the term is understood in Business & Professions Code Section 26054(b), as may be amended, a place of instruction in kindergarten or any grades 1 through 12.
(ii) "State" means the State of California and all of its departments, divisions and agencies, including but not limited to the Bureau of Cannabis Control, the Department of Public Health, and the Department of Food and Agriculture. (jj) "Stacking" means cultivating cannabis plants on platforms or tables and stacking them in multiple layers on top of each other.
(kk) "Storefront sales" means the retail sale of cannabis or cannabis products directly to customers from a storefront, dispensary, or other permanent building or structure, or in any manner that does not constitute delivery. "Storefront sales" does not include delivery.
(ll) "Testing Laboratory" means a laboratory, facility or entity that offers or performs tests of cannabis or cannabis products and that is both: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity; and (2) a State licensee. (mm) "Topical cannabis" means a cannabis product intended for external application.

A topical cannabis product is not considered a drug as defined by Section 109925 of the California Health and Safety Code.
(nn)“Volatile solvent" means a solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures.
(oo) "Youth center" means, as the term is understood in Business & Professions Code Section 26001(av), as may be amended, any public or private facility that is primarily used to host recreational or social activities for minors, including but not limited to private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.

Section 8.29.05.03 - Applicability to Personal Cannabis Activity.

This Chapter applies only to commercial cannabis activities. Except as otherwise provided by this Chapter, cultivation of cannabis for personal use is governed by Section 8.29.05.03 of the Arvin Municipal Code, as may be amended from time to time, and consumption of cannabis is governed by Section 8.29.05.06 of the Arvin Municipal Code, as may be

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store amended from time to time. To the extent any provision of Chapter 8.29 of the Arvin Municipal Code conflicts with this Chapter, this Chapter shall govern.

Section 8.29.05.04 - Permitted Types of Commercial Cannabis Businesses (a) Commercial cannabis operations within the City, which comprise the activities of indoor cultivation, mixed-light cultivation, nursery cultivation, retailer (delivery only), manufacturer, testing laboratory, distributor, and microbusiness (other than storefront sales) are allowed subject to issuance and maintenance of the permits and entitlements set forth in Section 8.29.05.06(a), continuing compliance with this Chapter and all other applicable City and State laws and regulations, and issuance and maintenance of a valid and current State license of a classification listed below, as provided for in Business & Professions Code Section 26050 and applicable State regulations:

1. Type lA = Cultivation; Specialty Indoor; Small.

2. Type 1B = Cultivation; Specialty Mixed-Light; Small.

3. Type 2A = Cultivation; Indoor; Small.

4. Type 2B = Cultivation; Mixed-Light; Small.

5. Type 3A = Cultivation; Indoor; Medium.

6. Type 3B = Cultivation; Mixed-Light; Medium.

7. Type 4 = Cultivation; Nursery.

8. Upon authorization by the State of California, Type 5A = Cultivation; Indoor; Large.

9. Upon authorization by the State of California, Type 5B = Cultivation; MixedLight; Large.

10. Type 6 = Manufacturer 1.

11. Type 7 = Manufacturer 2.

12. Type N = Manufacturer (i.e. no extractions, pursuant to 17 CCR § 40118, as may be amended).

13. Type P = Manufacturer (i.e. packaging and labeling only, pursuant to 17 CCR § 40118, as may be amended).

14. Type 8 = Testing Laboratory.

15. As authorized by California Code of Regulations, Type 9 = Non-Storefront Retailer (i.e. retail sales by delivery only, pursuant to 16 CCR § 5414, as may be amended).

16. Type 10 = Retailer (subject to Section 8.29.050, i.e. delivery only). See below for exception.

17. Type 11 = Distributor.

18. Type 12 = Microbusiness (subject to Sections 8.29.05.04(c) and 8.29.050). See below for exception.

19. Type 13 = Distributor (i.e. transport only, pursuant to 16 CCR § 5315, as may be amended).

20. Cultivation License Types for Indoor or Mixed-Light pursuant to 3 CCR § 8201, as may be amended).

21. Commercial Cannabis types that may be established by the State of California and is determined by the City Manager to be in substantial compliance with this Chapter.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store

22. Types 10 – 12 Retailer – Store Front Sales: "Storefront sales" means the retail sale of cannabis or cannabis products directly to customers from a storefront, dispensary, or other permanent building or structure, or in any manner that does not constitute delivery.
(b) Any commercial cannabis activity not expressly authorized by this Chapter is prohibited. (c) The number of commercial cannabis permits authorizing the operation of a microbusiness requiring a Type-12 State License that may be active or valid in the City at any given time shall not exceed thirty-five (35) permits, or a lower number as may be established by the City Council.
(d) The number of Store Front Sales: One Store Front Sales per 10,000 population or portion thereof. NOTE: Based upon this ration the City population would permit two (2) possible three (3) Store Front Sales. The City of Arvin's 2020 Population is 19,552 – The most recent population determination shall determine the number of Store Front Sales to be permitted. Issuance of a Commercial Cannabis Permit for Store Front Sales shall be selected based upon completion of the preliminary review “Proposal for Operation and Contribution to Community” application. Approval and selection of a proposed Store Front operator by the City Manager is required prior to the submittal of a Commercial Cannabis Permit application.

Section 8.29.050.05 - Prohibited Types of Commercial Cannabis Businesses (a) Commercial cannabis businesses within the City which involve the activities of outdoor cultivation and storefront sales are prohibited in the City. This prohibition includes, but is not limited to, commercial cannabis activities licensed by the State license classifications listed below, as provided for in Business & Professions Section 26050 and applicable State regulations:

1. Type 1= Cultivation; Specialty Outdoor; Small.

2. Type 1C = Cultivation; Specialty Cottage; Small.

3. Type 2 = Cultivation; Outdoor; Small.

4. Type 3= Cultivation; Outdoor; Medium.

5. Type 5 = Cultivation; Outdoor; Large.

6. Type 10 and 12 (Storefront sales prohibited.)
(b) Except as otherwise expressly provided in this Chapter, the prohibition of subsection (a) includes any similar commercial cannabis activities authorized under new or revised State licenses, or any other State authorization, for any type, category, or classification of commercial cannabis activities which involve the above-referenced or similar activities or operations.
(c) Notwithstanding any provision of this Chapter or the Arvin Municipal Code, storefront sales are prohibited in the City. No commercial cannabis permit issued to any person, including but not limited to a person holding a Type 10 "Retailer" or Type 12 "Microbusiness" State license, shall include any authorization to engage in storefront sales.

This prohibition applies to both adult-use and medicinal cannabis and cannabis products.

As such, no medicinal cannabis cooperative, collective, dispensary, operator, establishment, or provider, within the meaning of Health & Safety Code Section 11362.768, shall be permitted to engage in storefront sales. The term "storefront sales" shall include making available, tendering, offering, bartering, gifting, releasing, delivering,

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store providing or exchanging any cannabis or cannabis products. However, this subsection does not prohibit the issuance of commercial cannabis permits authorizing non-storefront sales, by delivery only, of cannabis or cannabis products in the City. (d) Consistent with Business & Professions Code Section 26080, nothing in this Chapter shall be interpreted to prohibit the use of the public roads of the City by a State licensee in the course of making cannabis deliveries to and from areas outside of the City.

Section 8.29.05.06 - Required Licenses and Permits.
(a) It shall be unlawful to own, establish, operate, use, or allow the establishment or activity of a commercial cannabis business, or to participate in a commercial cannabis business as an employee, contractor, agent, volunteer, or in any manner or capacity, other than as provided in this Chapter and pursuant to the following:

1. A valid and current commercial cannabis permit(s) issued by the City pursuant to this Chapter, and

2. The equivalent State license(s) for such commercial cannabis business issued pursuant Division 10 of the Business & Professions Code, as may be amended, and

3. Employee Badge pursuant to Section 8.29.05.09; and

4. A valid City business license.
(b) The City Manager is hereby authorized to issue commercial cannabis permits on behalf of the City. The City Manager, or designee, in his or her sole discretion, may issue a commercial cannabis permit only upon confirming that the applicant to whom the permit is to be issued has satisfied all of the requirements of this Chapter and the other applicable provisions of the Arvin Municipal Code, as may be amended from time to time, any regulations promulgated pursuant to this Chapter, and any law or regulation enacted by the State of California or any department of the State governing commercial cannabis activities.
(c) Commercial cannabis permits shall be governed by the following requirements and limitations:

1. Commercial cannabis permits may only permit the types of cannabis activity expressly authorized by this Chapter.

3. Commercial cannabis businesses shall not employ or grant access to any individual who is under twenty-one (21) years of age.

4. Each commercial cannabis permit issued pursuant to this Chapter shall expire twelve (12) months after the date of its issuance and must thereupon be renewed.

Continued operation of a commercial cannabis business after expiration of a commercial cannabis permit shall be unlawful and a violation of this Chapter.

5. Prior to issuance of any commercial cannabis permit, each proposed commercial cannabis business shall be subject to the mandatory inspections provided by Section

8.29.05.15 and shall obtain all required permits or approvals which are otherwise required for the premises by applicable law, including, but not limited to, building

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store permits, California Fire Code approvals, and planning-level permit(s) required by Title 17 Zoning of the Arvin Municipal Code. City Manager may issue a Conditional Commercial Cannabis Permit where the business is actively implementing conditions, obtaining clearances and licenses from local agencies and the state of California. Temporary Certificate of Occupancy may be issued by the Building Official where such occupancy is near completion of required improvements and where the Building Official and Fire Agency finds that no health and safety factors exists.

6. Consistent with Business and Professions Code Section 26053, a commercial cannabis business conducting multiple commercial cannabis activities shall obtain a commercial cannabis permit authorizing each type and location of commercial cannabis activity prior to engaging in that activity. A commercial cannabis business licensed by the State to conduct multiple commercial cannabis activities shall not receive a commercial cannabis permit authorizing any commercial cannabis activity within the City that is not expressly authorized by this Chapter. An applicant may be issued a commercial cannabis permit authorizing multiple different types of commercial cannabis activities as defined by applicable State license classifications, consistent with the requirements of Business and Professions Code Section 26053 and/or a Type 12 "Microbusiness" State license.

7. Revocation, termination, denial, non-issuance or suspension of a State license shall immediately and automatically terminate the commercial cannabis permit, and all commercial cannabis activity shall immediately cease. Upon reinstatement or receipt of a new State license, the commercial cannabis activity may file for a new permit from the City. While a new application for a commercial cannabis permit is pending, the applicant shall not engage in any commercial cannabis activity.

Violations of this Section shall be grounds for denial of an application for a commercial cannabis permit and for the enforcement, penalties and cost recovery prescribed within Section 8.29.05.170 and any other applicable provisions of the Arvin Municipal Code.

8. The issuance of a commercial cannabis permit shall constitute a revocable privilege and shall not create or establish any vested rights for the development or use of any property.
(d) Renewals of commercial cannabis permits shall be governed by the following requirements and limitations:

1. Applications for renewal of commercial cannabis permits shall be filed with the City Manager at least sixty (60) calendar days prior to the expiration date of the permit and shall be subject to all requirements applicable to an application for initial issuance of a commercial cannabis permit.

2. An application for renewal of a commercial cannabis permit shall be denied if any of the following exists:
i. The application is filed less than sixty (60) calendar days before expiration of the commercial cannabis permit. Notwithstanding the foregoing, the City Manager, in his discretion, may accept an application filed between thirty (30) and sixty (60) days before expiration based upon a showing of good cause by the applicant for the late filing.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store ii. The commercial cannabis permit, or any of the other entitlements required for the commercial cannabis to operate in compliance with this Chapter, is suspended or revoked at the time the application for renewal is submitted or is suspended or revoked while the application for renewal is pending. iii. The commercial cannabis business or activity has not been in regular and continuous operation during the four (4) months prior to the submission of the application for renewal.
iv. The commercial cannabis business is in noncompliance with any provision of this Chapter, any regulation promulgated pursuant hereto, any other provision of the Arvin Municipal Code applicable to the commercial cannabis business, or any condition of approval of the commercial cannabis permit or any other entitlement issued by the City to the commercial cannabis business.
v. The applicant for renewal of the commercial cannabis permit has failed to obtain or renew any required State license or is in violation of any applicable provision of State law or any applicable State regulation. vi. The applicant for renewal has failed to pay in full all fees, administrative fines, penalties and/or charges imposed by the City relating to the commercial cannabis business, unless assessment of the fees, administrative fines, penalties and/or charges are being appealed.

3. If a renewal application is denied, the applicant may file an appeal. The appeal must be in writing, must identify the grounds for reversing the denial, and must be submitted to the City Clerk within ten (10) days from the date of the denial. The appeal shall be conducted pursuant to Section 8.29.05.190(j). In the alternative, the applicant may file a wholly new application for a commercial cannabis permit pursuant to this Chapter. Upon expiration of the commercial cannabis permit and regardless of a pending appeal or new application for a commercial cannabis permit, all of the applicant's commercial cannabis activity shall immediately cease.

Violations of this Section shall subject the violator to denial of the appeal or new application for a commercial cannabis permit and/or the enforcement, penalties and cost recovery mechanisms prescribed within this Chapter and/or the Arvin Municipal Code.

4. Any unpaid fees, administrative fines, penalties and/or costs imposed by the City relating to the commercial cannabis business shall be added to the fee for renewal of the commercial cannabis permit, unless assessment of the fees, administrative fines, penalties and/or costs are being appealed.

5. A commercial cannabis permit shall not be renewed until the City receives payment in full of the fee for the commercial cannabis permit renewal application. Said fee shall be governed by and subject to the provisions of Section 8.29.05.190(b), unless otherwise provided by resolution of the City Council.
(e) Failure of a commercial cannabis business to obtain and maintain a valid City business license, and to remain in compliance with all applicable provisions and requirements of that license, shall constitute grounds for denial of an application for renewal of a commercial cannabis permit, suspension or revocation of a current commercial cannabis permit.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store Section 8.29.05.07 - Existing Commercial Cannabis Businesses.

Commercial cannabis businesses in existence in the City as of the date of adoption of this Chapter may continue to operate under the approved and issued Commercial Cannabis Permit and associated entitlements, Conditional Use Permit, Site Development Plan, Development Agreement, or may, upon its annual renewal, utilize this Chapter for permitting and compliance with the requirements of this Chapter. An unpermitted commercial cannabis business that can demonstrate to the City Manager's satisfaction that it is diligently applying to obtain the required permits and licenses, and that it is in good standing and otherwise in compliance with all applicable local and state laws and regulations, may, at the discretion of the City Manager, be temporarily permitted to continue its operations while its applications for the required permits and licenses are pending.

Section 8.29.05.08 - Security Measures.
(a) A permitted commercial cannabis business, regardless of building type utilized, shall implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products at the premises. These security measures shall include, but shall not be limited to, all of the following, in addition to any other security measures deemed necessary by the City Manager or required pursuant to any regulations as may be promulgated by the City Manager in furtherance of the purposes of this Chapter:

1. Preventing persons from remaining on the premises of the commercial cannabis business if they are not engaging in bona fide business activity of the commercial cannabis business.

2. Establishing limited access areas accessible only to authorized commercial cannabis business personnel.

3. Ensuring that live growing plants which are being cultivated are kept in a secured cultivation site, and that all cannabis and cannabis products are stored in a secured and locked room, safe, or vault at all times. All cannabis and cannabis products, including live plants which are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss.

4. Installing twenty-four (24) hour security surveillance cameras with night vision capability and of at least 1080p HD-quality to monitor all entrances and exits to and from the premises and to monitor all interior spaces, excluding all restroom and changing room facilities, within the commercial cannabis business. The security surveillance system shall be compatible with software and hardware utilized by the Arvin Police Department and as approved by the Chief of Police or designee. The security surveillance system shall be capable of providing the Arvin Police Department with remote real-time/live access to the video footage during emergency situations, including but not limited to armed robbery, active shooter, hostage, and exposure to hazardous or volatile substances. Video recordings shall be maintained for a minimum of forty-five (45) days. Upon request by the Chief of Police, video recordings will be provided to the Arvin Police Department within twenty-four (24) hours. If the commercial cannabis business refuses to provide the Chief of Police access to the real-time/live video feed or the requested video recordings, the City Attorney shall be authorized to seek reimbursement of all costs, including but not limited to court costs, attorney's fees, filing fees, administrative

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store time and fees and employee time, incurred by the City while seeking a warrant and/or judicial intervention granting the requested access. The requirements of this Section shall be in addition to any other applicable provision of the Arvin Municipal Code.

5. Sensors shall be installed to detect entry and exit from all secure areas.

6. Panic buttons shall be installed in all commercial cannabis businesses.

7. A professionally installed, maintained, and monitored alarm system shall be maintained in operable condition at all times.

8. Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building and shall be installed in compliance with all applicable requirements of the Arvin Municipal Code, California Building Code and California Fire Code.

9. Each commercial cannabis business shall have the capability to remain secure and operational during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

10. All security personnel to be hired or used by each commercial cannabis business shall be licensed by and in good standing with the State Bureau of Security and Investigative Services and shall obtain an Employee Badges pursuant to Section

8.29.05.09. At least one such security guard shall be on the premises of each commercial cannabis business during all operating hours. The City Manager may increase the number of security guards required to be on the premises of any commercial cannabis business as a condition of approval of any commercial cannabis permit application, if he or she deems such additional security guards necessary to adequately protect the premises based on the size or other characteristics of the commercial cannabis business or its premises. (11) Fencing shall be installed along the perimeter of the project site. Fencing location, design, and materials shall be approved by the City Manager or designee. Fencing shall be a minimum of 10’-0” with angled or electrified top. Materials shall be limited to wrought iron fencing, masonry, a combination of the two, or alternatives subject to approval by the City Manager or their designee. All fencing shall have angled wrought iron topping or must be electrified. Electronic entry gates for automobiles and pedestrian shall be designed as noted above and the City Manager or designee shall have final approval. Fencing must be in place to the satisfaction of the City Manager or their designee as well as the Building Department prior to being eligible for a certificate of occupancy or a temporary certificate of occupancy.
(11a) Fencing of site and/or facility shall not be required for Store Front Sales, however, the City Manager may require additional security measures to be implemented as provided in Chapter 8.29.05.
(12) Any portion of the fencing that is electrified shall comply with all State, Federal and Local laws, including, but not limited to, California Civil Code section 835 and any amendments thereto.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (13) Developer must submit a detailed fencing plan to the City Engineer or their designee for approval. Plans may be included within a larger Civil Design Plan required for overall site development approval. At a minimum, the plans must show the layout of all proposed exterior fences with locations of gates for pedestrians and vehicles.

Plans must also include typical sections, typical elevations, and details regarding hardware, materials, color, textures, and any additional information requested by the City Engineer upon review of a fencing plan. The use of existing fences must also be shown on the plans, detailed appropriately, and shall be subject to approval on a caseby-case basis by the City Engineer. City Engineer review shall be independent of any necessary review by the Building Department which the Developer must submit plans to for a separate permit following City Engineer approval. (14) The use of razor wire, barbed wire, or similar materials is strictly prohibited. In cases of masonry walls, all public facing sides must be covered in an approved anti-graffiti material or must have climbing vines attached to the walls which must be maintained over time to the satisfaction of the City Manager. In cases of wrought iron fences, the Developer may install an opaque cover to prevent the public from seeing into the site. In these cases, such a cover must also have an approved anti-graffiti coating. Any graffiti must be immediately removed by the Developer within 72 hours when notified by the City Manager or their designee regardless of when the graffiti first appeared. Similarly, any damage to the perimeter fencing must be immediately repaired within 72 hours when notified by the City Manager or their designee regardless of when the damage first appeared. (15) Approved colors and textures for public facing portions of fences are as follows unless otherwise approved by the City Manager or their designee:

Masonry: terra cotta; split faced
Wrought iron and opaque coverings: black or green; opaque covering to be metallic or durable plastic capable of withstanding substantial winds and must be UV and rust resistant.
(b) Each commercial cannabis business shall provide the City Manager with the identity and contact information for a liaison who shall be reasonably available to meet and discuss compliance with the requirements of the Arvin Municipal Code, state law and/or any other laws and regulations applicable to the commercial cannabis business. (c) As part of the application and permitting process, each commercial cannabis business shall provide the City Manager with a detailed transportation plan describing the procedures for safely and securely transporting cannabis, cannabis products and/or currency. (d) A commercial cannabis business shall notify the Chief of Police within twenty-four (24) hours after discovering any of the following:

1. Significant discrepancies identified in inventory. The level of significance may be determined by regulations promulgated by the City Manager.

2. Diversion, theft, loss or any criminal activity involving the commercial cannabis business, an employee or any agent of the commercial cannabis business.

3. The loss or unauthorized alteration of records referring or related to cannabis, cannabis products, employees or agents of the commercial cannabis business.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store

4. Any other breach of security.

Section 8.29.05.09 - Employee Badge Requirement.

Every employee or independent contractor working at or for a commercial cannabis business or involved in security, delivery or distribution, or other services for a commercial cannabis business shall obtain an employee badge pursuant to Title 4 Cal. Code Regulations Section 15043 or as may be amended. (§15043. Licensee Employee Badge Requirement. All agents, officers, or other persons acting for or employed by a licensee conducting retail sales or participating in a temporary cannabis event shall display a laminated or plastic-coated identification badge always issued by the licensee while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the licensee’s “doing business as” name and license number, the employee’s first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee’s face and that is at least 1 inch in width and 1.5 inches in height.).

Persons who are listed as commercial cannabis permit holders or owners thereof, who are subject to criminal history records checks pursuant to Section 8.29.05.240(k), shall be required to obtain an Employee Badge if such person also serves as an employee or contractor for the permit holder's commercial cannabis business.

Section 8.29.05.100 - Right to Occupy and to Use Property.

As a condition precedent to the City's issuance of a commercial cannabis permit pursuant to this Chapter, any person intending to open and to operate a commercial cannabis business shall provide sufficient evidence of the legal right to occupy and to use the proposed location. In the event the proposed location is leased from another person, the applicant for a permit under this Chapter shall provide a signed and notarized statement from the owner of the property to demonstrate the property owner has acknowledged and has consented to the operation of a commercial cannabis business on the property.

Section 8.29.05.110 - Location of Commercial Cannabis Business - Proximity to Sensitive Uses.
(a) Commercial cannabis activity shall be authorized within the following zoning districts of the City: M-1, M-2, M-3, A-1 and A-2 zoning districts and in addition, Store Front Sales may be authorized within the Bear Mountain Central Business District as established by Chapter 17. 68. Commercial cannabis activity is prohibited in all other zoning districts of the City.
(b) Notwithstanding subsection (a) of this Section, no commercial cannabis business shall be located within six hundred feet (600') from any school, day care center, youth center, public park, or public library (“Sensitive Uses”). Location distance separating Sensitive Uses, as described above, shall be measured from the exterior of the structure(s). Applicant shall prepare locational map verifying locational distance and shall certify that the structure locations meet the six hundred feet separation.
(c) No commercial cannabis business may operate within any residential zoning district or area of the City.
(d) A commercial cannabis business generally may not operate adjacent to, across a street or alley from, or within two hundred feet (200') of, any residential zoning district or area of

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store the City. Location distance and/or separating commercial cannabis business, as described above, shall be measured from the exterior of the structure(s). Applicant shall prepare locational map verifying locational distance and shall certify that the structure locations meet the two hundred feet separation. However, if a proposed building or an existing building or facility in a City zoning district enumerated in subsection (a) is located adjacent to or across a street or alley from a residential zoning district or area of the City, a commercial cannabis business may be permitted to operate in such location if, in the opinion of City Manager, the operation of a commercial cannabis business in such location would not tend to cause a public nuisance, nor a situation which may result in repeated police department responses or a negative impact on the adjacent residential units or dwellings. Any subsequent expansion of a commercial cannabis business permitted to operate in such a location, which expansion requires a new or amended commercial cannabis permit, shall also be subject to a determination by the City Manager that the expansion would not tend to cause a public nuisance or a situation which may result in repeated police department responses or a negative impact on the adjacent residential units or dwellings.
(e) Commercial cannabis businesses shall be required to comply with all zoning, land use, and development regulations applicable to the underlying zoning district in which they are permitted to establish and operate as set forth in Title 17 of the Arvin Municipal Code. (f) Any commercial cannabis business which has been determined by the City Manager to be an existing commercial cannabis business on the effective date of this Chapter shall be exempt from compliance with the limitations prescribed in this Section, unless such location is otherwise determined to constitute a public nuisance or otherwise a disturbance to the adjacent or neighboring uses as determined by the provisions of this Chapter.

Section 8.29.05.120 - Alcohol and Tobacco Restrictions. (a) In accordance with Business & Professions Code Section 26054, as may be amended, no commercial cannabis business shall cause or allow the sale (whether retail or wholesale) of alcoholic beverages or tobacco products on its premises. (b) No commercial cannabis business shall cause or allow alcoholic beverages to be dispensed or consumed on its premises.
(c) No commercial cannabis business shall operate in a location that requires persons to pass through a business that sells alcohol or tobacco to access the premises of the commercial cannabis business, or that requires persons to pass through the premises of the commercial cannabis business to access a business that sells tobacco or alcohol. (d) No commercial cannabis business shall operate in a location that is adjacent to a business that sells alcoholic beverages at retail. Applicant shall certify that the commercial cannabis business/structure(s) is not adjacent to a business that sells alcoholic beverages at retail.

Section 8.29.05.130 - Concurrent Regulation with State.

It is the stated intent of this Chapter to regulate commercial cannabis activity in the City concurrently and consistently with State law. Except where an express provision of this Ordinance applies to create an obligation that is more stringent than the minimum standards established by State law, this Chapter shall be construed in accordance with that intent.

Section 8.29.05.140 - Compliance with Laws.

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (a) It shall be the responsibility of the commercial cannabis permit holder, including its owners and operators, to ensure that the permitted commercial cannabis business is, at all times, operating in compliance with all applicable state and local laws and regulations, as amended, and any conditions of approval of a State license or City-issued commercial cannabis permit or other entitlement.
(b) Nothing in this Chapter shall be construed as an authorization of any action or conduct in violation of state law or local law with respect to the operation of a commercial cannabis business.
(c) Nothing in this Chapter shall be construed as an authorization by the City, its elected or appointed officials, employees, agents, representatives and/or consultants, collectively or individually, of any conduct in violation of federal law.

Section 8.29.05.150 - Inspections and Enforcement.
(a) No commercial cannabis business shall commence operation, and no commercial cannabis permit application or conditional use permit application shall be approved for any commercial cannabis business, unless and until:

1. The City Manager, or designee, and Police Chief, or designee, have inspected the premises of the commercial cannabis business and reviewed all written procedures, standards and protocols developed by such business pursuant to this Chapter, and have confirmed in writing that the business is in compliance with all applicable requirements of this Chapter and other applicable provisions of the Arvin Municipal Code, any applicable local regulations, and any applicable state laws, administration or enforcement of which is within their jurisdiction; and

2. The Fire Chief and Building Official have inspected the premises of the commercial cannabis business and reviewed all written procedures, standards and protocols developed by such business pursuant to this Chapter and have confirmed in writing that the premises are in compliance with the California Building Standards Code and the State Fire Marshal regulations, as adopted by the City, and all other applicable building and fire safety-related requirements, administration or enforcement of which is within their jurisdiction.
(b) In addition to the initial permit inspections pursuant to subsection (a) and after permitted commercial cannabis business activities have commenced, the City Manager, the Building Official, the Police Chief, and the Fire Chief are authorized to conduct reasonable unannounced and suspicionless inspections of the interior and exterior premises of any commercial cannabis businesses at any time during regular business hours (generally eight (8:00) a.m. and seven (7:00) p.m., Monday through Sunday), for the purpose of ensuring compliance with this Chapter and applicable state law as specified in subsection (a). (c) Each commercial cannabis business shall be subject to two mandatory inspections conducted pursuant to subsection (b) per calendar year. Notwithstanding the foregoing, further inspections may be conducted at any time in response to complaints received by the City relating to violations on the premises of a commercial cannabis business. (d) During all inspections conducted pursuant to this Section, the inspecting officials are authorized to photograph and otherwise document the conditions on the premises, and to take such other measures as are reasonably necessary to ascertain whether the business is in compliance with this Chapter, subject to adherence to all HIPAA rights and all other applicable privacy rights unrelated to the purpose and intent of the inspection. Samples of

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store cannabis and cannabis products may be temporarily taken from the commercial cannabis business and retained for the minimum time and to the minimum extent necessary to ascertain compliance with this Chapter, provided that any such samples shall be logged, recorded, and maintained in accordance with the Arvin Police Department standards for evidence.
(e) For all inspections required by this Section (not including complaint-based inspections), inspection fees sufficient to cover the costs of such inspections shall be paid by each commercial cannabis business as part of such business' commercial cannabis permit application fees or annual permit fees.
(f) Failure or refusal of a commercial cannabis business, or any owner, manager, employee or agent thereof, to grant access to the premises of the commercial cannabis business to facilitate any inspection pursuant to this Section shall constitute a violation of this Chapter, and shall constitute grounds for the City to obtain an inspection warrant to inspect the commercial cannabis business in accordance with State law. (g) All inspections shall be subject to adherence to applicable HIPAA rights and other applicable privacy rights unrelated to the purpose and intent of the inspections. (h) The requirements and remedies set forth in this Section shall be in addition to all other applicable provisions of the Arvin Municipal Code.

Section 8.29.05.160 - Fees and Charges.
(a) No person may commence or continue any commercial cannabis activity in the City without timely paying in full all fees, costs, penalties and charges required in connection with the establishment or operation of a commercial cannabis activity. Fees and charges associated with the establishment or operation of a commercial cannabis activity shall be set by resolution or ordinance of the City Council.
(b) All commercial cannabis businesses operating pursuant to this Chapter shall pay any and all applicable sales, use, business or other taxes, and all license, registration, or other fees required pursuant to federal, state, and local law.
(c) Commercial Cannabis Tax Revenues and Rates are established for Commercial Cannabis businesses in accordance with Title III Revenue and Finance, Chapter 3.19.

1. Pursuant to Section 8.29.05.290(a), the City has limited the total square footage of Commercial Cannabis to 1,350,000 square feet,

2. Pursuant to Section 8.29.05.04(c), the City has limited the Type 12 Microbusiness to a total of 35 business within the current City limits.

3. Due to the limitation of square footage for commercial cannabis business, the applicant of and any assignee shall pay, upon approval of each Commercial Cannabis permit, a minimum sum of $25,000.00 per quarter, regardless of operational status. The payment shall be paid within 10 days of the approval/conditional approval of a Commercial Cannabis permit. i. Should the Commercial Cannabis business be operational, the minimum quarterly payment shall be credited toward that business’s following quarter’s tax liability.
ii. Should the Permit Holder fail to begin operations within two years of the first permit’s issuance, payment of the quarterly $25,000.00 minimum required payment shall not be refunded. The quarterly payment is required due to the limited square footage for Commercial Cannabis and is

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store established as a deterrent against non-operational permit holders. The nonoperation of permitted Commercial Cannabis establishments is determined to be detrimental to the health and welfare of the City.

Section 8.29.05.170 - Violations and Enforcement.
(a) It is unlawful for any person to violate any provision of this Chapter. (b) Each and every violation of this Chapter constitutes a misdemeanor punishable in accordance with Chapter 1.08.010 of the Arvin Municipal Code. (c) Each and every violation of this Chapter constitutes a public nuisance which may be abated by the City pursuant to the Arvin Municipal Code.
(d) Violations of this Chapter may be redressed by any and all applicable civil remedies available to the City, including but not limited to civil actions for injunctive relief. (e) Violations of this Chapter are subject to all applicable administrative remedies under the Arvin Municipal Code, including but not limited to issuance of administrative citations.

Notwithstanding the foregoing, the administrative citation penalty for all violations of this Chapter, within a rolling twelve (12) month period, shall be as follows: one thousand dollars and no cents ($1,000.00) per violation.
(f) Any person that violates any provision of this Chapter shall be guilty of a separate offense for each and every day during any portion of which the violation exists. and shall be penalized pursuant to this Chapter and the applicable provisions of the Arvin Municipal Code.
(g) The remedies set forth in this Section are cumulative of each other and of any other legal remedies available at law.
(h) The City Manager may suspend or revoke a commercial cannabis permit when the permit holder or anyone acting on its behalf has committed any of the following acts or maintained any of the following conditions:

1. Any action or condition which would constitute grounds for denial of a commercial cannabis permit.

2. Any violation of this Chapter, the Arvin Municipal Code, any applicable state law governing the commercial cannabis business or activity, or any applicable condition of approval of the commercial cannabis permit or any other entitlement pertaining to the operation of the commercial cannabis business. (i) Prior to suspending or revoking a commercial cannabis permit, the City Manager shall conduct a hearing. Written notice of the hearing shall be provided to the permit holder at least five (5) calendar days prior to the hearing. The notice shall contain the basis for suspending or revoking the commercial cannabis permit. Notice may be provided by either personal service, U.S. mail and/or posting or depositing the notice at the commercial cannabis business. After the hearing, the City Manager shall provide notice of the decision whether to suspend or revoke the commercial cannabis permit in the same manner applicable to the notice of hearing. The decision of the City Manager shall be final, subject to judicial review pursuant to Code of Civil Procedure Sections 1094.5 and 1094.6 within ninety (90) calendar days of the date of the decision. The commercial cannabis permit holder has no right to an administrative appeal of the decision.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (j) The City Manager may immediately suspend a commercial cannabis permit without notice or hearing, subject to a subsequent hearing prior to reinstatement or revocation pursuant to subsection (i), under the following circumstances:

1. The commercial cannabis permit holder is convicted of a public offense in any court for the violation of any law which would be grounds for denial of a commercial cannabis permit.

2. The City Manager, Chief of Police, Fire Chief or any other authorized public safety or building official determines that immediate suspension is necessary to protect the public health, safety and welfare of the community. The City Manager shall provide notice of the grounds for immediate suspension of the commercial cannabis permit, and the suspension shall only be for as long as reasonably necessary to address the grounds which led to the suspension.

Section 8.29.05.180 - Limitations on City's Liability.

To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a commercial cannabis permit or otherwise approving the operation of any commercial cannabis business pursuant to this Chapter. As a condition of approval of any commercial cannabis permit issued pursuant to this Chapter, the person to which a commercial cannabis permit is issued shall be required to meet all of the following conditions:
(a) Execute an agreement indemnifying, defending (at its sole cost and expense), and holding the City and its officers, employees, representatives, and agents harmless from any and all claims, losses, damages, injuries or liabilities associated with permitting or approving the operation of a commercial cannabis activity or the operation thereof or associated with the commercial cannabis business or its members' violation of any federal, state or local laws. (b) Maintain insurance at coverages, limits, and with conditions thereon determined necessary by the City Manager, in consultation with the City Attorney. Commercial General Liability insurance shall be maintained at all times with coverage limits that meet or exceed one million dollars ($1,000,000.00) per occurrence and in the aggregate. In the alternative to maintaining Commercial General Liability insurance, a commercial cannabis permit holder may post a bond, in a form subject to approval by the City Attorney, with the City in the minimum amount of one million dollars ($1,000,000.00). The City Manager may, in his or her sole discretion, increase the minimum bond amount required by a commercial cannabis permit holder.
(c) Reimburse the City for any and all costs and expenses, including attorneys' fees and costs and court costs, that the City may be required to pay as a result of any legal challenge related to the City's approval of a commercial cannabis permit pursuant to this Chapter or the City's approval of the operation of a commercial cannabis activity. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the obligations imposed under this Section.

The City may revoke a commercial cannabis permit for failure to maintain the required insurance or bond. The City may provide a commercial cannabis permit holder with written notice of its intent to revoke the commercial cannabis permit and for failure to maintain the required insurance or bond. Within seven (7) calendar days from the date upon the notice of intent to terminate, a commercial cannabis permit holder shall tender to the City proof that it has obtained the required insurance or posted the required bond. If a commercial cannabis permit holder fails to timely provide proof of the required insurance or bond to the City, the commercial cannabis permit shall

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store be revoked, and the commercial cannabis permit holder shall immediately cease all commercial cannabis business activities. Failure to immediately cease all commercial cannabis business activities shall subject the commercial cannabis permit holder to the penalties, enforcement and cost recovery provisions established within the Arvin Municipal Code and any other legal remedies available to the City.

Section 8.29.05.190 - Commercial Cannabis Permit Application Procedures and Requirements.
(a) In addition to the authority granted pursuant to the express provisions of this Section and Chapter, to the extent consistent with this Chapter and other applicable law, the City Council may by resolution adopt such fees, and the City Manager may adopt such forms and procedures, as are necessary to implement this Chapter with respect to the review, processing, evaluation, selection, investigation, approval, denial, renewal, suspension, and revocation of commercial cannabis permits and related appeals. (b) The owner of a proposed commercial cannabis operation shall file an application with the City Manager upon a form provided by the City and shall pay an application filing fee as established by resolution of the City Council, as may be amended from time to time. The fee may be established as a trust deposit for actual costs. The fee, or the initial trust deposit, shall be in an amount the City Manager estimates will cover the costs of reviewing and processing the application. If a trust deposit-based fee is established, it shall be used and drawn upon as a retainer to cover the actual costs incurred by the City. If the initial amount of the trust deposit is not sufficient, the applicant shall provide additional amounts as necessary within thirty (30) days of a request from the City. If the applicant fails to do so, application review and processing shall cease and shall not continue until such additional amounts are paid.
(c) Each commercial cannabis permit application shall contain, at minimum, the following:

1. The printed full name, signature, date of birth, social security number, a color photocopy of the California Driver's license or equivalent form of identification approved by the City Manager, and current address and telephone number of all owners of and responsible persons for the commercial cannabis business that is the subject of the application.

2. Signed consent of each owner and responsible person, who is identified pursuant to subsection (c)(1) and who is not required to obtain an employee badge pursuant to Section 8.29.05.090, to a fingerprint-based state and federal criminal history records check conducted by the City or an agency authorized or requested to do so by the City, including but not limited to fingerprint analysis conducted utilizing the California Department of Justice Live Scan system or any other system deemed necessary or appropriate in the discretion of the City Manager.

3. The address of the commercial cannabis business to which correspondence from the City is to be sent, if other than the permitted premises.

4. The names and addresses of all businesses operated by, and the employment of, the applicant and its owners for the five (5) years immediately preceding the date of the application.

5. Any litigation in which the applicant(s) has been involved within the five (5) years immediately preceding the date of the application and a statement of whether any business currently operated by the applicant(s) or operated by the applicant(s)

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store within the five (5) years immediately preceding the date of the application has been investigated or the permit or license authorizing the operation of such business has been revoked or suspended within the five (5) years immediately preceding the date of the application.

6. The address of any commercial cannabis business currently being operated by the applicant or any of its owners, or which has been previously operated by any of them.

7. The existing and/or anticipated supply sources and product supply chain for all cannabis and cannabis products entering and leaving the commercial cannabis business, including the site(s) where cultivation occurs, where the cannabis or cannabis products are processed or manufactured, where any required testing of cannabis or cannabis products occurs, and distribution information. Packaging and labelling information and criteria, demonstrating compliance with Section

8.29.05.240(w), shall also be included.

8. Odor control devices and techniques demonstrating compliance with Section

8.29.05.240(i), sufficient to prevent odors from cannabis from being detectable off of the premises.

9. Procedures for safety and adequately identifying, storing, managing, and disposing of all litter, waste, hazardous materials, contaminants, or adulterated, deteriorated or excess cannabis or cannabis products or byproducts of the commercial cannabis business, and demonstrating compliance with Section 8.29.05.240(t).

10. Information reflecting adequate capitalization of the commercial cannabis business.

11. Procedures for inventory control to prevent diversion of cannabis and cannabis product, employee screening, storage of cannabis and cannabis product, personnel policies, and record-keeping procedures.

12. A detail of the operating procedures to be utilized at the facility, including a description of how chemicals and fertilizers will be stored, handled, used and disposed of, manufacturing methods, the transportation process, inventory procedures, and quality control procedures.

13. A site plan and floor plan of the premises of the commercial cannabis business denoting the property lines and the layout of all structures and areas of the commercial cannabis business including storage, cultivation, manufacturing, testing, distributing, reception or waiting areas, and all ancillary support spaces, and the relationship of the facility to adjacent properties and land uses, indicating compliance with the California Building Standards Code and Title 17 of the Arvin Municipal Code.

14. A plan for the proposed signage at the site, including size, height, colors and design of all signage, demonstrating compliance with Section 8.29.05.240(g). A City sign permit issued pursuant to applicable provisions of the Arvin Municipal Code shall be required.

15. A security plan satisfactorily addressing all required security measures identified in Section 8.29.05.080 and lighting as required by Section 8.29.05.240(x).

16. Standard operating procedures detailing how operations will comply with state and local regulations, how safety and quality of products will be ensured, recordkeeping procedures for financing, testing, and adverse event recording, and product recall procedures.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store

17. Proposed days and hours of operation.

18. Recycling and waste disposal procedures reflecting, to the extent practicable, efficiency and conservation of materials and resources used in the commercial cannabis business.

19. Youth access restriction procedures demonstrating compliance with Section

8.29.05.240(h).

20. A transportation plan providing procedures for safely and securely transporting all cannabis, cannabis products and currency to and from the premises.

21. A detailed description of energy and water usage plan enumerating best practices and leading industry practices in efficient utilization of both resources.

22. Evidence of compliance with all applicable insurance-related requirements of this Chapter and State law, including but not limited to Section 8.29.05.180.

Endorsements reflecting the City's status as an additional insured on all required policies shall also be included.

23. A copy of the valid and current City business license held by the applicant.

24. A copy of the valid and current seller's permit issued by the California Department of Tax and Fee Administration (formerly the Board of Equalization) to the applicant, or confirmation from said agency that a seller's permit is not required. If a seller's permit is required but the applicant has not yet received it, an attestation that the applicant is currently applying for a seller's permit shall suffice, provided that a copy of the permit shall be provided to the City immediately upon being obtained by the applicant, and the applicant shall not commence activities for which a seller's permit is required until it is obtained.

25. Identification of any and all other licenses and permits currently or formerly held by the applicant, and any other applications pending review for the applicant, relating to commercial cannabis activities, from any licensing or permitting authority, and specific identification of any licenses or permits denied to, suspended for, or revoked from the applicant.

26. Signed acknowledgment of the requirements of this Chapter, including biannual inspections as established within Section 8.29.05.150.

27. Signed authorization for the City Manager to seek verification of the information contained in the application.

28. A signed statement by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct.

29. Any other information deemed necessary by the City Manager. (d) A commercial cannabis permit application may be denied based upon any of the following grounds:

1. The applicant has been issued a state or local permit or license to conduct commercial cannabis activities (in California or another state) and the permit or license has been suspended or revoked, or the applicant has otherwise been sanctioned or subjected to administrative disciplinary action relating to the permit or license by any licensing or permitting authority, or the applicant has been involved in a cannabis business that was ordered closed by a civil injunction or other court order based on a violation of law.

2. The applicant, or any owner or responsible person of the commercial cannabis business that is the subject of the application, has been convicted of a serious or

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store violent offense as listed within California Penal Code Sections 667.5 and 1192.7(c), or the applicant has been convicted of any other offense listed within Business and Professions Code Section 26057.

3. The applicant, or any owner or responsible person of the commercial cannabis business that is the subject of the application, has been convicted of a misdemeanor involving theft, dishonesty, fraud, narcotics sales or narcotic trafficking within the five (5) years preceding the date of the application.

4. The applicant, or any owner or responsible person of the commercial cannabis business that is the subject of the application, has been convicted of a felony involving the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined within the Federal Controlled Substance Act, unless the applicant received a Certificate of Rehabilitation as defined in that Act, within the ten (10) years preceding the date of the application.

5. The applicant, or any owner or responsible person of the commercial cannabis business that is the subject of the application, has engaged in misconduct related to the ownership, qualifications, functions or duties of their position with the commercial cannabis business.

6. The applicant, or any owner or responsible person of the commercial cannabis business that is the subject of the application, has engaged in unlawful, fraudulent, unfair, or deceptive business practices as defined by the Arvin Municipal Code and/or state or federal law.

7. The applicant, or any owner or responsible person of the commercial cannabis business that is the subject of the application, is under the age of twenty-one (21).

8. The applicant has violated or failed to comply with any of the requirements of this Chapter or other applicable state or local laws or regulations, or any condition of any entitlement issued to the commercial cannabis business, as determined by the City Manager.

A conviction within the meaning of this Chapter means a plea or verdict of guilty or a conviction following a plea of nolo contendere.

This Section shall not constitute an exhaustive list of grounds for denial of a commercial cannabis application. The City Manager may promulgate regulations identifying additional grounds for denial.
(e) The City Manager shall review each application to determine whether it contains all of the required information. If the application does not contain all of the required information, it shall be returned to the applicant for completion. The City Manager shall endeavor to conclude his or her review within ninety (90) days of the filing of the application. If additional time is necessary, the City Manager will advise the applicant of an estimated review time.
(f) In reviewing an application for a commercial cannabis permit, the City Manager may request whatever additional information is deemed necessary to determine whether the application meets the requirements of this Chapter or other applicable local laws or regulations.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (g) The City Manager shall have the authority to either approve or deny the application for a commercial cannabis permit. The City Manager shall approve the application if and only if it meets all applicable requirements of this Chapter. Notwithstanding any other provision of this Chapter, the City Manager, when approving a commercial cannabis permit, may place any additional limitations and conditions on the operation of a commercial cannabis business as he or she deems necessary, consistent with the with this Chapter and any regulations promulgated pursuant hereto.
(h) Payment of an annual commercial cannabis permit fee, in an amount set by resolution of the City Council sufficient to cover the City's annual costs of administering the mandatory regulatory functions of this Ordinance in regard to the permitted commercial cannabis business, including but not limited to inspections, audits and investigations, shall be required before issuance or renewal of any commercial cannabis permit pursuant to this Chapter. The fee may be established as a trust deposit for actual costs. The fee, or initial trust deposit, shall be in an amount the City Manager estimates will cover the City's annual costs as described in this paragraph. If a trust deposit-based fee is established, the trust deposit shall be used and drawn upon as a retainer to cover the actual costs incurred by the City. If the initial amount is not sufficient, the applicant shall provide additional amounts as necessary upon request from the City. Failure to pay such additional amounts within thirty (30) days of a request by the City shall constitute a violation of this Ordinance and grounds for denial, non-renewal or revocation of the subject commercial cannabis permit. (i) When an application is denied, the City Manager shall provide a statement of decision giving the reasons for the denial and the findings upon which the decision is based. Notice of the denial may be provided by either personal service or U.S. mail. Notice is presumed to be served upon the applicant once deposit into the U.S. mail. Any person denied a commercial cannabis permit shall have the right to appeal such denial in accordance with this Section.
(j) Any appeal of a denial of an application shall be filed and conducted as prescribed in this subsection.

1. Within ten (10) calendar days from the date of the denial of an application, the aggrieved party may appeal such action by filing with the City Clerk a written appeal setting forth the grounds for reversing the denial. The time requirement for filing an appeal shall be deemed jurisdictional and may not be waived. Appeals not timely filed or not setting forth the basis for the appeal are defective and shall be dismissed.

2. Upon receipt of such written appeal, the City Clerk shall set the matter for a hearing before the City Manager. The hearing shall be conducted pursuant to the following procedures:
i. All hearings shall be recorded. Any party may, at their sole expense, have the hearing transcribed by a certified shorthand reporter. ii. Hearings need not be conducted according to the technical rules of evidence.
iii. Any relevant evidence shall be admitted, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions in courts of competent jurisdiction in this state.

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store iv. Oral evidence shall be taken only on oath or affirmation. The City Manager shall have the power to administer oaths.
v. Irrelevant and unduly repetitious evidence shall be excluded. vi. Each party shall have the right to: call and examine witnesses on any matter relevant to the issues of the hearing; introduce documentary and physical evidence; cross-examine opposing witnesses on any matter relevant to the issues of the hearing, subject to the control of the City Manager, including the imposition of reasonable alternatives to cross-examination; impeach any witness regardless of which party first called the witness to testify; rebut the evidence; and be represented by anyone who is lawfully permitted to do so. vii. The City Manager may take official notice, either during the hearing or after submission of the matter for decision, of any fact which may be judicially noticed by the courts of this state or of official records, regulations, rules, and decisions of state and local agencies, boards and departments and of City ordinances. In addition, the City Manager may take official notice of matters in its own files and of prior proceedings under this chapter involving the same issues. If applicable, the City Manager may also take official notice of any generally accepted technical or scientific matter within their expertise. The parties present at the hearing shall be informed of the matters to be noticed, and those matters should be noted in the record, referred to therein, or appended thereto. Any such party shall be given a reasonable opportunity on request to refute the officially noticed matters by evidence or by written or oral presentation of authority, and
viii. The City Manager may provide for reasonable continuances of the hearing, on his/her own initiative or at the request of a party, as necessary to properly conduct the appeal.

The hearing shall be set for hearing in a reasonable time after the date of filing the appeal with the City Clerk, but in no event later than ninety (90) days from the date of such filing. At least ten (10) days prior to the date of the hearing on the appeal, the City shall notify the appellant of the time and the place of the hearing. Notice may be provided by either personal service or U.S. mail. Notice is presumed to be served upon deposit into the U.S. mail.

3. At the conclusion of the hearing, the City Manager shall deliberate and reach a decision within fifteen (15) calendar days. The decision and the reason(s) for the decision shall be reduced to writing. The City Manager may affirm, reverse, or modify the denial issued pursuant to this Code as the facts and law warrant, subject to the following limitations:
i. The City Manager shall not have authority to waive any requirements of the Arvin Municipal Code or other applicable law.
ii. Nothing in these procedures shall be deemed to authorize the City Manager to deviate from unambiguous provisions of the governing code or statute, or well-established interpretations of the same, based upon expert opinions or other reliable evidence.

A copy of the decision shall be sent by mail or otherwise to the appellant. Where known, a copy may also be provided by email.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store

4. The decision of the City Manager shall be subject to a further administrative appeal to the Planning Commission, which shall be conducted in accordance with the procedures and requirements applicable to the appeal to the City Manager pursuant to this subsection. The decision of the Planning Commission shall be subject to further administrative appeal to the City Council, which shall be conducted in accordance with the procedures and requirements applicable to the appeal to the City Manager pursuant to this subsection.

5. The decision of the City Council on the appeal shall constitute a final administrative decision. The appellant may thereafter file a petition for writ of mandate in superior court pursuant to Code of Civil Procedure Section 1094.5 and 1094.6 within ninety (90) calendar days of the date of the decision.

Section 8.029.05.200 Development Agreement.

A qualified applicant, pursuant to subsection (b) of this Section, may apply to enter into a development agreement with the City pertaining to a commercial cannabis operation. The provisions of this Section shall apply to such applications. (a) Content and Procedures.
(1) Development agreements entered into pursuant to this Chapter shall set forth the terms and conditions under which the commercial cannabis business will operate that are in addition to the requirements of this Chapter, including, but not limited to, public outreach and education, community benefit, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety, and welfare of the City.
(2) The procedures for commercial cannabis development agreements shall comply with this Chapter, Chapter 16.40 of the Arvin Municipal Code, and Article 2.5 of Chapter 4 of Division 1 of Title 7 of the California Government Code. To the extent there is a conflict between this Chapter and Chapter 16.40 of the Arvin Municipal Code with respect to a development agreement for a commercial cannabis business, this Chapter shall govern.
(b) Qualified Applicant. Development agreements are for substantial development projects, often requiring an investment in infrastructure and/or improvements, payment of development impact fees, and contribution of non-restricted funds that benefit the community. Such agreements are special contracts to be negotiated with property owners or those with an interest in the land. A qualified applicant is a person who meets all of the following criteria, with satisfaction of each criterion to

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store be determined in the sole discretion of the City Manager:
(1) The applicant has a pending or approved application for a commercial cannabis permit on file with the City pertaining to the real property that will be subject to the development agreement;
(2) The applicant holds a legal or equitable interest in the real property that will be the site of the commercial cannabis business. If the applicant does not own the property, the applicant must have a legal right to purchase or develop the property and/or notarized written consent from the owner of the property to operate a commercial cannabis business on the property and to enter into a development agreement with the City pertaining to the property. (c) Filing Requirements.
(1) Only a qualified applicant may file an application to enter into a development agreement. An applicant shall provide, to the satisfaction of the City Manager, written proof of meeting the criteria in subsection (b) above, as well as proof of the authority of any agent or representative to act for the applicant.
(2) The City Manager shall prescribe the form for each application, notice and documents provided for or required under this Section for the preparation and implementation of development agreements. The applicant shall complete and submit such an application form to the City Manager, along with a deposit for the estimated direct and indirect costs of processing the development agreement. Each applicant pursuant to this Section shall be required to pay a development agreement application fee, in an amount established by resolution of the City Council, sufficient to cover the City’s costs of review and processing of the development agreement application pursuant to this Section. The fee may be established as a trust deposit for actual costs. The fee, or the initial trust deposit, shall be in an amount the City Manager estimates will cover the costs of reviewing and processing the application. If a trust deposit-based fee is established, the trust deposit shall be used and drawn upon as a retainer to cover the actual costs incurred by the City. If the initial trust deposit is not sufficient, the applicant shall provide additional amounts as necessary within thirty (30) days upon of a request from the City. If the applicant fails to do so, the application review and processing shall cease and shall not continue until such additional amounts are paid.
(3) The City Manager shall require an applicant to submit such information and supporting data as the City Manager considers necessary to process the application, including but not limited to a community benefit assessment to evaluate the benefits the development agreement will provide to the community.
(d) Processing Requirements.

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (1) The City Manager shall endorse on the application the date it is received.

An application or related document shall not be complete until an estimated deposit for the cost of processing has been paid to the City. The City Manager shall review the application and determine any additional requirements necessary to complete processing of the application. If within thirty (30) days of receiving the application the City Manager finds that all required information has not been submitted or the application is otherwise incomplete or inaccurate, the processing of the application and the running of any limits shall be suspended upon written notice to the applicant and a new thirty (30) day period shall commence once the required material is received by the City Manager.
(2) If the City Manager finds that the application is complete, it shall be accepted for filing and the applicant so notified. After receiving the required information and determining that the application is complete, the City Manager shall prepare a staff report and recommendation to the Planning Commission and City Council stating whether or not the agreement as proposed or in an amended form would be consistent with policies of the City, this Chapter and any applicable general or specific plan. The City Attorney shall review the proposed development agreement as to legal form.
(3) Notice of a hearing regarding the development agreement shall be given by the City Manager and shall comply with the requirements of Section 65867 of the California Government Code, as may be amended, as well as in the manner set forth in this Code.
(4) The Planning Commission shall review the proposed development agreement and provide a recommendation to the City Council to approve, approve with modifications or deny the proposed development agreement.

If the Planning Commission fails to take action within sixty (60) days of opening the hearing on the matter, such failure shall be deemed to have made a recommendation of denial to the City Council unless the applicant has requested an extension of time, either in writing or on the record, which has been approved by the Planning Commission prior to the running of the sixtieth day.
(5) The proposed development agreement shall be set for hearing and consideration before the City Council within sixty (60) days of the recommendation of the Planning Commission, unless the applicant agrees in writing to an extension of time with the City Manager prior to the matter being heard by the City Council.
(6) Within ten (10) calendar days after the City enters into any development agreement pursuant to this Section, the City Clerk shall have the agreement recorded with the County Recorder. If the parties to the agreement or their successors in interest amend or cancel the agreement as provided in Section 65868 of the California Government Code, or if the City terminates or

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store modifies the agreement as provided in Section 65865.1 of the California Government Code for failure of the applicant to comply in good faith with the terms or conditions of the agreement, the City Clerk shall have notice of such action recorded with the County Recorder.
(e) Findings and Development Agreement Conditions. After the City Council completes the public hearing, the City Council may not approve the development agreement unless it finds that the provisions of the agreement:
(1) Are consistent with the goals, objectives, and policies of the general plan and any applicable specific plan;
(2) Are compatible with the uses authorized in and the regulations prescribed by this Chapter, zoning district in which the activity is located, and area in which the real property is located;
(3) Will not be detrimental to the health, safety, environmental quality, and general welfare of the community;
(4) Will provide for or result in contributions, services or facilities that benefit the community, which may include, but are not limited to, public facilities, improvements, and services, parks, recreation and open space improvements, public art, youth sports programs, other public youth benefit programs, substance abuse awareness and recovery programs, and other public service programs.
(5) Will not adversely affect the orderly development of property or the preservation of property values;
(6) Provides for payment by the applicant of all costs associated with preparing and entering into the agreement; and
(7) Provides for a reasonable penalty for any violation of the development agreement.
(f) Effectiveness of a development agreement pursuant to this Section shall be contingent upon issuance of a commercial cannabis permit and all other entitlements necessary to operate a commercial cannabis business on the subject property.
(g) Modifications and Extensions.
(1) The provisions of Section 65868 of the California Government Code shall apply for all modifications, with the exception of Minor Modifications, extensions or other amendments of the terms of a development agreement subject to this Chapter.
(2) Either party may propose an amendment or termination of an approved development agreement subject to the following:

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (i) The procedure for amending or terminating the development agreement is the same as the procedure for entering into an agreement in the first instance.
(ii) The development agreement may be amended or cancelled only by the mutual consent of the parties, as provided in Section 65868 of the California Government Code.
(3) Nothing herein shall limit the City’s ability to terminate or modify the agreement consistent with Section 65865.1 or 65865.3 of the California Government Code, or as may be amended.
(4) Minor modifications to a Development Agreement may be authorized by the City Manager, upon consultation with the City Attorney. (5) The Development Agreement may necessitate further planning and development of the Project and may demonstrate that refinements and changes are appropriate with respect to the details and performance in implementing the Project under a Development Agreement. The Development Agreement may permit a certain degree of flexibility with respect to the details of the development of the Project and with respect to those items covered in general terms under a Development Agreement. A Minor Changes (as hereinafter defined) when found to be necessary or appropriate, a written request shall be submitted to the City Manager, unless otherwise required by federal, state or local ordinance and/or regulation, effectuate such changes or adjustments through administrative amendments executed by the City Manager or designee. Upon approval of a Minor Modification, it shall be attached as addenda and become a part of the Development Agreement. Minor Modifications shall be recorded with the Development Agreement.
(6) The term “Minor Changes” collectively means:
(a) minor deviations to the Project Approvals that are permitted under the Existing City Requirements and are reasonably approved by the City Manager;
(b) a reduction in the parking ratio requirements for the Project under consistent with the Arvin Municipal Code, provided that (i) the reduction does not exceed ten percent (10%) of the Code requirement, and (ii) the reduction is approved by the City Manager, which approval shall not be unreasonably withheld or denied; or
(c) such other changes, modifications or adjustments to the Project Approvals, which the City Manager determines are consistent with the overall intent of the Project Approvals and which do not materially alter the overall nature, scope, or design of the Project, and which are consistent with the requirements of Chapter 8.29.05 of the Arvin

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store Municipal Code and any commercial cannabis activity regulations or policies established by the City Manager.
(7) Assumption Agreement(s) - No Modification. An Assumption Agreement shall be subject to the terms of an approved Development Agreement. An Assumption Agreement shall not limit, restrict, modify, alter, amend or otherwise change in any manner the rights and obligations of an Assignor or Assignee under the DA, and in the event of any conflict between the terms and provisions of an Assumption Agreement and the terms and provisions of the DA, the terms and provisions of the DA shall control.
(8) In effecting any Minor Changes, the City shall cooperate with the Developer, provided that the permitted uses are not modified from those in the Project Approvals and any changes are in accordance with the Existing City Requirements. Minor Changes shall not be deemed to be an amendment to a Development Agreement under California Government Code section 65868 but are ministerial clarifications and adjustments, and unless otherwise required by law, no such administrative amendments shall require prior notice or hearing by the City Council. Any amendment or change requiring a environmental impact report, or a supplement thereto, pursuant to CEQA shall not be considered a Minor Change, but shall be considered substantive amendment which shall be reviewed and approved by the City Council as determined by the applicable provisions of the Arvin Municipal Code relating to the hearing and approval procedures for the specific Project Approval.

Section 8.29.05.220 - Records and Reporting.
(a) Commercial cannabis operations shall maintain on the permitted premises the following records either in paper or electronic form:

1. The full name, address, and telephone numbers of the owner and lessee of the property.

2. The name, date of birth, address, and telephone number of each employee and independent contractor of the commercial cannabis operation; the date each was hired or retained; and the nature of each person's participation in the commercial cannabis business.

3. Copies of all required state licenses.

4. An inventory record documenting the dates and amounts of cannabis and cannabis products received at the site, the daily amounts of cannabis and cannabis products on the site, and the daily amounts of cannabis and cannabis products leaving the site for any reason, including but not limited to cannabis that is sold, delivered, or distributed.

5. A written accounting of all expenditures, costs, revenues and profits of the commercial cannabis operation, including but not limited to cash and in-kind transactions.

6. A copy of all insurance policies related to the operation of the commercial cannabis operation.

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store

7. A copy of the commercial cannabis operation's most recent year's financial statement and tax return.

8. Proof of a valid and current permit issued by the City in accordance with this chapter, and the equivalent State of California license to operate the commercial cannabis business. Every commercial cannabis business shall display at all times during business hours the City permit issued pursuant to the provisions of this Chapter, and the equivalent State license, in a conspicuous place so that it may be readily seen by all persons entering the location of the commercial cannabis operation.
(b) Subject to HIPAA rights and regulations unrelated to the purpose and intent of the inspection, each commercial cannabis business shall allow City officials, upon request, to inspect all books, accounts, records, information and data required to be maintained by the cannabis business pursuant to this Chapter or otherwise relevant to its permitted activities for the purpose of facilitating any inspection, audit or investigation deemed necessary by the City. Such records shall be produced within twenty-four (24) hours after receipt of the City's request.
(c) By December 1 of each year, each commercial cannabis business shall file with the City Manager a complete audited report detailing its financial operations for the previous fiscal year, including its gross revenues, net profits, and total expenditures, which report shall be certified by an independent certified public accountant in accordance with generally accepted auditing and accounting principles. The report shall also include a discussion, analysis, and verification of each of the records required to be maintained pursuant to this Chapter. The information contained in the report shall be made available to the City in standard electronic format which shall be compatible with Microsoft Office programs and software and which can easily be imported into either Excel, Access or any other contemporary software designated by the City Manager, and shall be subject to audit by the City.
(d) All records required by this Chapter shall be maintained by commercial cannabis businesses for a period of not less than seven (7) years, and commercial cannabis businesses shall maintain accurate records of all commercial cannabis activities. All such records shall be made available for immediate inspection by the City upon request consistent with California Business and Professions Code Section 26160.

Section 8.29.230 - Prohibition on Transfer of Commercial Cannabis Permits. (a) No commercial cannabis business shall operate under a commercial cannabis permit issued pursuant to this Chapter at any place or location other than that identified in the commercial cannabis permit.
(b) Any permit issued pursuant to this Chapter shall be null and void upon sale or transfer of ownership of the commercial cannabis business.
(c) Any attempt to transfer or any transfer of a commercial cannabis permit issued pursuant to this Chapter shall be void and the commercial cannabis permit shall be deemed immediately revoked and no longer of any force or effect. (d) Notwithstanding (a) or (b) above, the City Manager may conditionally approve a Commercial Cannabis Business permit transfer subject to the proposed transferee submittal of all required application materials (new Commercial Cannabis Permit), pays all applicable fees and charges, and independently meets the requirements of this Chapter.

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store Prior to approval or conditional approval of a transfer, the existing Commercial Cannabis permit must have met all the applicable requirements.

Section 8.29.05.240 - General Operating Requirements for Commercial Cannabis Businesses.

In addition to those operating requirements specifically set forth elsewhere in this Chapter and except as may otherwise be expressly set forth in this Chapter, the following operating requirements shall apply to all commercial cannabis businesses operating in the City:
(a) Hours of Operation. Normal business hours for commercial cannabis businesses are eight (8:00) a.m. and seven (7:00) p.m., Monday through Sunday. Subject to the night-time operating restrictions applicable to deliveries set forth in Section 8.29.05.280, commercial cannabis businesses may operate outside normal business hours, provided that any business activity conducted outside of normal business hours shall be sensitive to surrounding land uses and occupants and shall not result in excessive light, noise or other impacts that could cause a nuisance to members of the surrounding community. (b) Restriction on Consumption. Cannabis shall not be consumed on the premises of any commercial cannabis businesses, except that medicinal cannabis may be consumed within a clinic, health care facility, residential care facility, or residential hospice licensed pursuant to applicable provisions of the California Health & Safety Code, as stated in Section 8.29.05.06 of the Arvin Municipal Code.
(c) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the public right-of-way or other public area or any adjacent property. No outdoor storage of cannabis or cannabis products is permitted at any time. (d) Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis business shall have in place a point-of-sale tracking system to track and to report on all aspects of the commercial cannabis business including, but not limited to, such matters as tracking of cannabis and cannabis products, inventory data, and gross sales (by weight and by sale price) and shall ensure that such information is compatible with the City's recordkeeping systems. The system must have the capability to produce historical transactional data for review by the City. All information provided to the City pursuant to this subsection shall be confidential and shall not be disclosed, except as may otherwise be required under law. (e) All cannabis and cannabis products sold, cultivated, manufactured, delivered, distributed or tested shall be cultivated, manufactured, delivered, distributed or tested by State licensees that maintain operations in full conformance with the state and local laws and regulations.
(f) Emergency Contact. Each commercial cannabis business shall provide the City Manager with the name and telephone number (office and mobile) of an on-site employee or owner to whom emergency notice can be provided on a 24-hour per day, 7-day per week basis. (g) Signage and Notices.

1. In addition to the requirements otherwise set forth in this Section, business identification signage for a commercial cannabis business shall conform to the signage requirements of the Arvin Municipal Code, including, but not limited to, issuance of a City of Arvin sign permit.

2. Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business shall

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right-of-way.

3. No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window.

4. Each entrance to a commercial cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited.

5. Signage shall not be directly illuminated, internally or externally. No banners, flags or other prohibited signs may be used at any time.
(h) Minors. Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business. It is unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least twenty-one (21) years of age. The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the commercial cannabis business. (i) Odor Control. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site.

Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected off the premises, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment or any other equipment which the City Manager determines has the same or better effectiveness:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;

2. An air system that creates negative air pressure between the commercial cannabis business's interior and exterior so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business.
(j) Display of Commercial Cannabis Permit, State License and City Business License. The original copy of the commercial cannabis permit issued by the City pursuant to this Chapter, the required State license, and the business license issued by the City pursuant to the Arvin Municipal Code shall be posted inside the commercial cannabis business in a location readily visible to the public.
(k) Criminal History Records Check.

1. Every owner of each commercial cannabis business must submit to annual fingerprint-based state and federal criminal history records checks, conducted by the City or another agency authorized or requested to do so by the City, as an application requirement in connection with each application for issuance or renewal of a commercial cannabis permit for the commercial cannabis business.

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store

2. The criminal history records check may be conducted utilizing the California Department of Justice Live Scan system or any other system deemed necessary or appropriate in the discretion of the City Manager. The City Manager is authorized to request subsequent notification service, if Live Scan is used, or an equivalent service, if another system is used, sufficient to obtain ongoing notifications of criminal offenses committed by owners of commercial cannabis businesses. In the event the City Manager does so, and such subsequent notification or equivalent service reveals a conviction or other conduct, such a conviction or other conduct shall constitute grounds for immediate suspension or revocation of the subject commercial cannabis permit.

3. Owners and responsible persons shall be disqualified from involvement with a commercial cannabis business where the results of a criminal history records check would constitute grounds for denial.

4. A fee for the City's costs of conducting the criminal history records check, as established by resolution of the City Council, shall be paid at the time the application for a commercial cannabis permit is submitted. The fee may be established as a trust deposit for actual costs. The fee, or the initial trust deposit, shall be in an amount the City Manager estimates will cover the costs of conducting the criminal history records check, including City review and processing services and any third-party fees. If a trust deposit-based fee is established, it shall be used and drawn upon as a retainer to cover the actual costs of such investigation. If the initial trust deposit is not sufficient, the applicant shall provide additional amounts as necessary within thirty (30) days of a request from the City. If the applicant fails to do so, the investigation shall cease and shall not continue until such additional amounts are paid.

5. In the alternative to subsection (k)(4) above, the commercial cannabis business or the subject owner, may provide the City Manager with a completed criminal history records check performed by a third party vendor, as deemed necessary or appropriate in the discretion of the City Manager. If this alternative is used, the fee established pursuant to subsection (k)(4) above shall not apply, except as may be necessary for the City to confirm the validity and the results of the records check used.
(l) Upon completion of the investigation or in the event the applicant withdraws its application, any unused amount of any trust deposit made pursuant to this Chapter will be refunded to the applicant within thirty (30) days of request by the applicant. (m)Loitering. The owner and/or operator of a commercial cannabis business shall prohibit loitering on the premises of the commercial cannabis business. (n) Permits and other Approvals. Prior to the establishment or operation of any commercial cannabis business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate. (o) Greenhouses. Greenhouses may be utilized only for commercial cannabis cultivation businesses, including nurseries. Greenhouses used for cannabis cultivation shall be fullyenclosed permanent structures with solid walls that are clad in an opaque material with climate control, such as heating and ventilation capabilities and supplemental artificial

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store lighting, and that use a combination of natural and supplemental artificial lighting. The cultivation activities conducted within a greenhouse shall not be visible from any public right-of-way or adjacent private property. All greenhouses shall comply with the requirements of this Chapter and the Arvin Municipal Code, including the adopted requirements of the California Building Code, the California Fire Code and any other code adopted or incorporated by reference within the Arvin Municipal Code, as amended.

Greenhouse must have a minimum of 2,000 square feet.
(p) No commercial cannabis business may store food grade alcohol or any other volatile chemical, solvent or substance in an amount which exceeds the maximum authorized amount determined by the Fire Chief. Subject to the foregoing, use of food grade alcohol solely for the purposes of cleaning machinery and dissolving wax, unless otherwise prohibited by the State, is allowed.
(q) Commercial cannabis businesses shall comply with all pesticide use requirements of local, state and federal law.
(r) All weighing devices used by commercial cannabis businesses shall be maintained in compliance with local, state or federal law and applicable regulations regarding device registration with the Agricultural Commissioner.
(s) Commercial cannabis businesses shall comply with all applicable provisions of the California Building Standards Code, as adopted or incorporated into the Arvin Municipal Code.
(t) Commercial cannabis businesses shall comply with all local, state and federal laws and regulations and best practices applicable to storage and disposal of chemicals, solid waste, contaminants, hazardous materials, adulterated, deteriorated or excess cannabis and cannabis products, and all byproducts of the commercial cannabis business. (u) In no case shall any commercial cannabis business utilize any volatile solvents or other flammable, explosive or toxic substances to process or manufacture cannabis products in the City, except as expressly authorized pursuant to both a Type 7 State license and a Cityissued commercial cannabis permit. (v) All food products, food storage facilities, food-related utensils, equipment and materials shall be approved, used, managed and handled in accordance to the provisions of the California Retail Food Code, California Health and Safety Code Sections 113700 through 114437. All food products shall be protected from contamination at all times, and all food handlers must be clean, in good health and free from communicable diseases. (w)All cannabis and cannabis products, prior to leaving any licensed premises for transfer to any retailer, shall be properly labeled and placed in resealable, tamper-evident, childresistant packaging, shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products, and shall otherwise comply with applicable State laws, including Business and Professions Code Section 26120, and applicable State regulations, all as may be amended from time to time.
(x) The premises of all commercial cannabis businesses shall have sufficient lighting such that all areas subject to monitoring by the security surveillance camera system shall be visible to all cameras of the system at all times.

Section 8.29.05.250 - Operating Requirements for Cultivation Businesses and Nurseries. (a) Outdoor commercial cultivation and outdoor nursery activity is prohibited.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (b) If a commercial cannabis business includes nursery activities, only one nursery may be located on the premises of the commercial cannabis business, and the nursery activity must be permitted pursuant to this Chapter and State law.
(c) Cannabis cultivation and nursery activity shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. (d) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife. (e) In no case shall any hazardous, flammable or explosive substances be used to process or manufacture cannabis products on site, except as otherwise stated in this Chapter pertaining to food grade alcohol.
(f) The cultivation of cannabis and any nursery activity shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
(g) Stacking shall be allowed in a given structure only to the point that measuring the total canopy of each level of stacking is cumulatively no greater than the maximum canopy size allowed under State laws or regulations applicable to the State cultivation license held by the commercial cannabis business
(h) All applicants for a commercial cannabis permit for cultivation or nursery activity shall submit the following, which shall be subject to approval by the City Manager prior to issuance of a commercial cannabis permit to the applicant, in addition to the information otherwise required for a commercial cannabis permit application:

1. An operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, proper disposal of waste materials, and a description of the nursery or cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting.

2. A description of a legal water source, irrigation plan, and projected water use.

3. Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes.

4. Plan for addressing odor and other public nuisances which may result from the nursery or cultivation site.

Section 8.29.05.260 Cannabis Manufacturing Business Operating Requirements. (a) Manufacturer 1 (Type 6) permittees shall utilize only manufacturing processes that are either solventless or that employ only nonflammable, nontoxic solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.).

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (b) Manufacturer 2 (Type 7) permittees shall utilize only manufacturing processes that use solvents exclusively within a closed-loop system that meets all of the following requirements:

1. The system uses only solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.).

2. The system is designed to recapture and contain solvents during the manufacturing process, and otherwise prevent the off-gassing of solvents into the ambient atmosphere to mitigate the risks of ignition and explosion during the manufacturing process.

3. A licensed engineer certifies that the system is commercially manufactured, safe for its intended use, and built to codes of recognized and generally accepted good engineering practices, including, but not limited to, the American Society of Mechanical Engineers (ASME), the American National Standards Institute (ANSI), Underwriters Laboratories (UL), the American Society for Testing and Materials (ASTM), or OSHA Nationally Recognized Testing Laboratories (NRTLs).

4. The system has a certification document that contains the signature and stamp of a professional engineer and the serial number of the extraction unit being certified. (c) No compressed gases used in the manufacturing process shall be stored on the premises of any manufacturer in excess of the amount authorized by the Fire Chief (d) No manufacturer may engage in the retail sale, by delivery or otherwise, of any manufactured cannabis products, including edible cannabis products, on a retail basis in the City.
(e) All cannabis products shall be properly packaged and labeled in accordance with Business & Professions Code Section 26120 and applicable State regulations before leaving the commercial cannabis manufacturing business. All edible cannabis products must be in an opaque (non-see-through) package.
(f) Manufacturers shall comply with all applicable federal, State and local laws and regulations relating to manufacturing safety procedures.

Section 8.29.05.270 - Cannabis Testing Laboratory Operating Requirements. (a) Commercial cannabis testing laboratories (e.g. businesses requiring a Type 8 State license) shall comply with all applicable federal, state and local laws, regulations and/or guidelines governing testing procedures and safety measures.
(b) Testing laboratories are prohibited from obtaining permits to engage in any commercial cannabis activity, except testing. A commercial cannabis business which holds a commercial cannabis permit for testing shall not be issued or hold any other commercial cannabis permit.
(c) Testing laboratories shall not employ any individual who is also employed by any other State licensee that does not hold a Type 8 State license. (d) Testing laboratories must be accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity, and must provide proof of said accreditation, to the satisfaction of the City Manager, as a prerequisite to obtaining a commercial cannabis permit authorizing testing of cannabis or cannabis products.

Section 8.29.05.280 - Cannabis Retail/Delivery Businesses Operating Requirements

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (a) Retail sales of cannabis and cannabis products in the City shall be conducted by delivery only.
(b) All commercial cannabis businesses conducting deliveries shall have permitted premises in the City from which all deliveries to addresses in the City or outside of the City shall be conducted. Commercial cannabis businesses that do not have physical premises located in the City, and/or that propose to deliver into the City from premises outside the City, shall not be eligible for issuance of a commercial cannabis permit, and are prohibited from conducting deliveries in the City.
(c) The premises of all commercial cannabis businesses that are permitted to conduct deliveries shall be closed to the general public at all times and shall be accessible only to employees and persons with a bona fide business or regulatory purpose for accessing the premises.
(d) In accordance with Business & Professions Code Section 26070.1, cannabis or cannabis products purchased by a customer shall not leave the permitted premises of a retailer unless they are placed in an opaque package. Lake i
(e) Retailers shall not accept, possess, or sell cannabis or cannabis products that are not packaged and labeled as they will be sold at final sale and in accordance with Business & Professions Code Section 26120, as may be amended. Retailers shall not package or label cannabis or cannabis products.
(f) No employee or other person acting on behalf of a commercial cannabis operation permitted to conduct deliveries may possess or deliver more than $3,000 worth of cannabis or cannabis products at any given time.
(g) No delivery shall be made to any person other than the person who requested the delivery, except when the person requesting the delivery is a qualified patient and the person receiving the delivery is his or her primary caregiver, or vice versa. (h) Any person who is present on the permitted premises of a commercial cannabis business permitted to conduct deliveries who is not an employee, officer, agent, or representative of the retailer must sign in and wear a "visitor" identification badge at all times while on the premises.
(i) Proof of the required State license and commercial cannabis permit, and a copy of all requests/orders for deliveries being conducted, shall be carried at all times in all vehicles being used to make deliveries, and shall be immediately available upon request from law enforcement officers.
(j) Deliveries shall not be conducted between the hours of 11:00 p.m. and 7:00 a.m.

Section 8.29.05.290 - Total Area Devoted to Commercial Cannabis Businesses (a) No more than one million, three hundred fifty thousand (1,350,000) square feet of area shall be permitted for use by commercial cannabis businesses in the City. Notwithstanding the foregoing, land annexed into the City after the date of enactment of this Chapter shall not be subject to, nor shall be counted toward, this restriction. (b) The square footage of premises of each permitted commercial cannabis business shall be a minimum of 2,000 square feet in area. A coexisting, Commercial Cannabis business, subtenant, may be located, with the City Manager or designee’s approval or conditional approval, in a building area of less than 2,000 square feet where the Commercial Cannabis business is in conjunction with another approved Commercial Cannabis activity permitted in a building larger than 2,000 square feet.

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Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store (c) Accessory Structures in Support of Commercial Cannabis Businesses may, at the City Manager’s or designee approval or conditional approval, be authorized. The ratio of 1:1 square footage (Accessory Structure vs Commercial Cannabis Business) shall not exceed 25,000 square feet. (Example: Commercial Cannabis Business with 25,000 square feet may be authorized to have up to 25,000 square feet of Accessory Structures). All Accessory Structures shall be affixed to concrete foundations and must conform to the California Building Code (CBC), California Electrical Code (CEC) and American Mechanical Code (AMC). Accessory structures shall meet the requirements of Section 8.029.05.080 Security Measures and must have exterior lights around all four sides or appropriate detached lighting as approved by the City. Accessory structure(s) may be less than the minimum square footage as established in 8.029.05.290 (b). Accessory Structures shall be screened from public view – design of screening shall be at the discretion of the City Manager or designee. Accessory Structures square footage shall be included as established by Section 8.029.05.290 Total Area Devoted to Commercial Cannabis Businesses.

Section 8.29.05.295 – Type 10 and 12 Store Front Sales be subject to preliminary approval by the City Manager:
(a) Limitation of Store Front Sales: No more than one Store Front Sales per 10,000 population or portion thereof will be permitted.
(b) Operation and Contribution to Community Application Required: Prior to the submittal of a Commercial Cannabis Application for a Store Front Sales, a Proposal for Operation and Contribution to Community shall be submitted to the City Manager. The City Manager may create application that outline minimum expectations of the proposed operator.
(c) Review Time of Application: Upon receipt of an application Proposal for Operation and Contribution to Community, the City Manager shall review within 60 days and may prepare an acceptance letter or prepare a counter proposal. (d) Competing Proposals and Applications: Should the City Manager receive more than one Proposal for Operation and Contribution to Community, the City Manager shall have the sole authority to select the most beneficial contribution to the City and operational effectiveness among the applications submitted. (e) Required Acceptance Letter Prior to the Submittal of a Commercial Cannabis Application: The applicant must receive an acceptance letter from the City Manager of the Proposal for Operation and Contribution to Community, prior to the submittal of a Store Front Sales - Commercial Cannabis Permit Application. (f) Square Footage Required: The square footage of premises of each permitted commercial cannabis business shall be a minimum of 2,000 square feet in area. A coexisting, Commercial Cannabis business, subtenant, may be located, with the City Manager or designee’s approval or conditional approval, in a building area of less than 2,000 square feet where the Commercial Cannabis business is in conjunction with another approved Commercial Cannabis activity permitted in a building larger than 2,000 square feet.
(g) No accessory structures in support of the Commercial Cannabis business will be permitted.

Section 8.29.05.300 - Periodic Review by the City Council.

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store Upon request of the City Manager, the City Attorney and the Chief of Police shall report to the City Council with findings on the operation of any commercial cannabis business permitted pursuant to this Chapter and a recommendation as to whether the business should be permitted to continue operating for the remaining period of its commercial cannabis permit (in addition to whatever other recommendations may be made) and whether the City should renew the permit upon application for renewal. Any termination or revocation of a permit based on such findings shall be in accordance with the provisions of this Chapter.

Section 8.29.05.310 - Promulgation of Regulations and Standards.

The City Manager, in his or her discretion, is authorized to promulgate reasonable regulations as he or she deems necessary to implement procedures or requirements in furtherance of the purposes of this Chapter. Regulations promulgated by the City Manager shall have the same force and effect of law and shall become effective upon the date of approval and execution of such regulations by the City Manager.

Section 8.29.05.320 - Community Relations.
(a) Each commercial cannabis business shall provide the City Manager with the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. (b) The owner, manager, and community relations representative of a commercial cannabis permit holder operating in the City shall, upon request of the City Manager, meet to discuss costs, benefits, and other community issues resulting from implementation or application of this Chapter.

Section 8.29.05.330 - Unpaid Fees Deemed Debt to City.

The amount of any unpaid fee, cost or charge imposed pursuant to this Chapter shall be deemed a civil debt to the City that is recoverable in any court of competent jurisdiction.

Section 8.29.05.340 - Permit Holder Responsible for Violations.

Commercial cannabis permit holders shall be responsible for all violations of State or local laws or regulations, whether or not committed by the permit holder or any employee or agent of the permit holder, which occur in or on the premises of the commercial cannabis business, whether or not said violations occur within the permit holder's presence.

Section 8.29.05.350 – Effect on Other Ordinances
Except as designated in this chapter, the provisions of this chapter shall control for regulation of commercial cannabis businesses as defined herein if other provisions of the code conflict therewith. This chapter shall not, however, relieve any person of his or her duty to comply with such laws if additional obligations, duties, or prohibitions are imposed thereby.

Section 8.29.05.360 – Unlawful Businesses Prohibited
In no event shall any business license be granted for any use or activity that is illegal or unlawful under federal, state or city laws or regulations. No business license issued hereunder shall be construed as authorizing the conduct of or continuance of any illegal or unlawful business, or the furnishing, sale or provisioning of any service, good or product that is illegal under this code, the laws of the State of California, or the laws of the United States of America. Notwithstanding the

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store foregoing, a business license may be granted for businesses permitted under this chapter, provided the applicant has complied with all provisions of this code and state law.

5.A.4
Attachment: Att 1- Inserted Text Store Front Sales Into Ordinance_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store

CITY OF ARVIN

NOTICE OF PUBLIC HEARING FOR CONSIDERATION OF AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARVIN
AMENDING CHAPTER 8.29 MARIJUANA OF TITLE 8 HEALTH AND
SAFETY BY AMENDING SECTION 8.29.05 COMMERCIAL

CANNABIS ACTIVITY PERMITTING A LIMITED NUMBER OF
TYPE 10 OR TYPE 12 STORE FRONT SALES OF COMMERCIAL

CANNABIS
Notice is hereby given that the City Council of the City of Arvin, California, will conduct a public hearing, at which time you may be present and be heard, to consider a proposed ordinance amending Chapter 8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code (AMC) to adopt new and amended permitting standards and regulations applicable to commercial cannabis activities in the City by permitting a limited number of Store Front Sales of Commercial Cannabis.

City Council of the City of Arvin Public Hearing Information Date: March 14, 2023
Time: 6:00 PM
Place: City of Arvin Council Chambers 200 Campus Drive, Arvin, CA 93203 Applicant: City of Arvin
Location: The ordinance applies only to agricultural and industrial zones within the City limits.

Project Description: An amendment to chapter 8.29 Marijuana, Chapter 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code is to permit a limited number of Type 10 or Type 12 Store Front Sales of Commercial Cannabis. The number of permitted Store Front Sales is proposed to be limited to a ratio of one store front sales per 10,000 population or portion thereof.

The proposed amendments will allow two and up to three Store Front Sales to be established within the City of Arvin based upon the current population of 19,522. The location of the Store Front Sales is limited per the existing ordinance and restricts the locations to the Industrial, M-1, M-2, and M-3, Zones, the Agricultural, A-1- A-2, Zones and may be permitted within the Bear Mountain Commercial Business District as established by Chapter 17.68.

The purpose of the public hearing will be to give citizens an opportunity to make their comments known. If you are unable to attend the public hearing, you may direct written comments to City of Arvin, City Clerk’s Office, PO Box 548, Arvin, CA 93203 or emailed to [email protected]. In the subject line, please provide “PUBLIC COMMENT ITEM #” (insert the item number relevant to your comment). All public comments will be provided to the City Council and may be read into the record or compiled as part of the record.

5.A.5
Attachment: Att 2 - Public Hearing Notice Amending Title 8_CC Mtg of 042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Additional information on the proposed ordinance, including copies in hard copy or electronic format, may be obtained from the City Clerk’s office at Arvin City Hall, 200 Campus Drive, Arvin, California, 93203, or the City’s web site at www.arvin.org. All persons interested in this topic who would like to provide feedback or ask questions are invited to attend.

Written comments on this matter may be submitted to the City Clerk’s office until 4:00 p.m. on the date of this hearing. If you challenge the approval or denial of these matters in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk, at or prior to the public hearing. Address any communications or comments regarding the project to Cecilia Vela, City Clerk, 200 Campus Drive, Arvin, CA 93203, (661) 854-3134, [email protected].

Note: If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing(s) described in this notice, or in written correspondence delivered to the City at, or prior to, the Public Hearing (Govt. Code Sec. 65009).
/s/
Cecilia Vela, City Clerk
City of Arvin, California
Published: Bakersfield Californian, March 03, 2023

5.A.5
Attachment: Att 2 - Public Hearing Notice Amending Title 8_CC Mtg of 042523 (Public Hearing - Second Reading Ordinance Amending Title 8

NOTICE OF EXEMPTION
Filing of Notice of Exemption in Compliance with
Section 15062 of the California Environmental
Quality Act – Amending Ord 479 – Permitting Store
Front Sales of Commercial Cannabis in Industrial,
Agricultural, and Bear Mountain Boulevard Central
Business District.

NOTE: Place in project file until approved – then
file with Kern County Clerk

AFFIDAVIT OF FILING AND POSTING
Court Records Supervisor Office of the County Clerk
I declare that I received and posted this notice on the filing date as required by California Public Resources Code Section 21152(c). Said Notice will remain posted for 30 days for the filling date.

TO: COUNTY CLERK
County of Kern,
1115 Truxtun Ave. 1st Floor,
Bakersfield, CA 93301
FROM: City of Arvin
City Clerk, P.O. Box 548
200 Campus Drive, Arvin, CA 93203
661-854-3134 Office, 661-854-0817 Fax
Project title: Code amendments to Title 8, Chapter 8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code To Permit a Limited Number of Type 10 or Type 12 Store Front Sales of Commercial Cannabis in Industrial, Agricultural, and Bear Mountain Boulevard Central Business District.

Project location: Arvin Municipal Code , Arvin, CA 93203 Assessor Parcel Number(s): N/A Description of nature, purpose, and beneficiaries of project: The code amendments are intended to permit a limited number of store front sales of commercial cannabis within the City of Arvin. The number of store front sales will be limited to 1 store per 10,000 population or portion thereof. Store Front Sales may be permitted in Industrial, Agricultural, and Bear Mountain Boulevard Central Business District.

Purpose and Beneficiaries of Project: This action will support the goal of the City Council in the regulation of commercial cannabis sales and to increase revenue that contribute to benefits to the community.

Name of public agency approving project: City of Arvin, CA – City Council Name and person or agency
carrying out the project City of Arvin
Exempt status: General Rule Exemption (Sections 15061(b (1) and (b)(3) Reasons why project is exempt: Pursuant to Title 14 of the California Code of Regulations, Sections 15061 (b) (1) and (b)(3), that this project is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a project which has the potential for causing a significant effect on the environment. The City Council therefore directs that the Notice of Exemption be filed with Kern County Clerk in accordance with the City of Arvin’s Guideline for the implementation of CEQA. The project is also not located next to any scenic highway or resources, nor is located on a hazardous waste site which is included on any list compiled pursuant to Section 65962.5 of the Government Code. Finally, there are no structures on the site that could qualify as historical resources. No structures are proposed to be demolished, nor would the project have a significant adverse impact on a historic resource. For all the foregoing, including evidence in the administrative record, the Planning Commission of the City of Arvin adopts a Class 3 Categorical Exemption under CEQA Guidelines section 15303 (New Construction or Conversion of Small Structures).

Contact person: Chris Soriano, City Panner, Planning Division, 141 Plumtree Drive, Arvin, CA 93203
Signature/Title/ Date:
________________________ /___________
Jeff Jones, City Manager Date
Record available to General Public: This is to certify that the environmental document and record of project approval is available to the General Public at City of Arvin, City Clerk’s Office, 200 Campus Drive, Arvin, California, 93203. This Notice of Exemption and its supporting documents may be reviewed/obtained during normal working hours at the above address. The filing of a Notice of Exemption and the posting on the list of notices start a 35 day statute of limitations period on legal challenges to the agency's decision that the project is exempt from CEQA. If a Notice of Exemption is not filed, a 180-day statute of limitations will apply. Refer to Section 15061(d) for filing instructions.

5.A.6
Attachment: Att 3 - Notice of Exemption - Store front Sales_042523 (Public Hearing - Second Reading Ordinance Amending Title 8 Store Front Proposal for Operation and Contribution to Community Benefit Section 8.29.05.295 – Type 10 and 12 Store Front Sales be subject to preliminary approval by the City Manager:
(a) Limitation of Store Front Sales: No more than one Store Front Sales per 10,000 population or portion thereof will be permitted.
(b) Operation and Contribution to Community Benefit Application Required: Prior to the submittal of a Commercial Cannabis Application for a Store Front Sales, a Proposal for Operation and Contribution to Community shall be submitted to the City Manager. The City Manager may create application that outline minimum expectations of the proposed operator.
(c) Review Time of Application: Upon receipt of an application Proposal for Operation and Contribution to Community, the City Manager shall review within 60 days and may prepare an acceptance letter or prepare a counter proposal. (d) Competing Proposals and Applications: Should the City Manager receive more than one Proposal for Operation and Contribution to Community, the City Manager shall have the sole authority to select the most beneficial contribution to the City and operational effectiveness among the applications submitted.
(e) Required Acceptance Letter Prior to the Submittal of a Commercial Cannabis Application: The applicant must receive an acceptance letter from the City Manager of the Proposal for Operation and Contribution to Community Benefit, prior to the submittal of a Store Front Sales - Commercial Cannabis Permit Application. (f) Square Footage Required: The square footage of premises of each permitted commercial cannabis business shall be a minimum of 2,000 square feet in area. A coexisting, Commercial Cannabis business, subtenant, may be located, with the City Manager or designee’s approval or conditional approval, in a building area of less than 2,000 square feet where the Commercial Cannabis business is in conjunction with another approved Commercial Cannabis activity permitted in a building larger than 2,000 square feet.

No accessory structures in support of the Commercial Cannabis business will be permitted.

5.A.7
Attachment: Att 4 - Attachment Proposal for Operation and Contribution to Community Benefit Section 8.29.05.295 (Public Hearing - Second

CITY OF ARVIN
Staff Report
Meeting Date: April 25, 2023
TO: Arvin City Council
FROM: Jeff Jones, City Manager
SUBJECT: A Resolution of the City Council of the City of Arvin Establishing An Ad Hoc City Council Committee to Beautify Arvin.

BACKGROUND:

The proposed Resolution is presented to Council following Council’s request. Based on previous discussion, the City Council is engaged in improving the appearance of the City by ensuring that properties are properly maintained and clear of blight. Blight not only depreciates the value of a property but also the value of the adjacent and surrounding areas.

According to Arvin Municipal Code Chapter 8.12.101, “It shall be unlawful for any person owning, renting, leasing, occupying or having charge or possession of any real property in the city to maintain such property in a manner that any of the following conditions are found to exist thereon, except as may be allowed by the Arvin Municipal Code. These conditions meet one (1) or more of the following criteria and are considered nuisances subject to abatement and cost recovery as proscribed in this chapter: substantially detract from the appearance of the immediate neighborhood, reduce the property value in the immediate neighborhood, are an attractive nuisance, are materially detrimental to nearby properties and improvements, are a visual blight, are offensive to the senses, or are otherwise dangerous to public health, safety or welfare.”
This proposed Resolution would, if adopted, authorize the formation of the “Ad Hoc Committee to Beautify Arvin”. The Ad Hoc Committee would be tasked with reviewing and identifying various residential and business properties that appear to have failed to maintain their property in accordance with the Arvin Municipal Code. After such review, the Committee would provide recommendations regarding each of the Committee matters for all members of the City Council to then discuss and potentially act on.

Upon City Council’s approval, the City Manager will then involve Code Enforcement staff to take action in accordance with the Arvin Municipal Code.

Due to the numerous business and residential properties within the City, it will be more efficient for a committee to undertake the initial review, as a review by the entire Council, would be significantly delayed by the quorum requirement.

6.A.1
Attachment: Staff Report Ad Hoc Committee to Beautify Arvin_042523 (Ad Hoc Committee to Beautify Arvin) STAFF RECOMMENDATION:

Staff recommends consideration and discussion from Council.

FINANCIAL IMPACT:

This resolution does not involve budgetary impacts.

6.A.1
Attachment: Staff Report Ad Hoc Committee to Beautify Arvin_042523 (Ad Hoc Committee to Beautify Arvin) Reso Establishing Ad Hoc Committee to Beautify Arvin.

Page 1 of 2 ends

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARVIN

ESTABLISHING AN AD HOC CITY COUNCIL COMMITTEE TO
BEAUTIFY ARVIN.

WHEREAS, the City Council approved Resolution No. 2021-50, establishing a City Council Committee Policy Governing Council Committees;
WHEREAS, the City Council wishes to establish an Ad Hoc Committee to assist the Council with helping to Beautify Arvin;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ARVIN as follows:

1. SECTION 1. Committee Established.
a. The following Ad Hoc Committee is hereby established:
i. Beautify Arvin Ad Hoc Subcommittee

2. SECTION 2. General Powers and Duties.
a. The Committee shall have the general power and duty to render advice and make recommendations to the City Council regarding:
i. Identifying business and residential properties that are deficient and create blight to the City;
ii. Refer recommended deficient properties to the City Council to be considered for enforcement action in accordance with the Arvin Municipal Code.
b. The Committee shall make regular oral reports to the Council, in addition to any specific reports and recommendations requested by the City Council.

3. SECTION 3. Meetings. The Committee shall meet at least monthly, at times and places to be determined by the Committee and shall hold additional meetings as it deems necessary to perform it functions.

4. SECTION 4. The Mayor of the City of Arvin shall appoint two City Council Members to serve on the Committee. Each appointee shall serve at the pleasure of the Mayor.

5. SECTION 5. The Committee shall not remain in existence for more than one calendar year after its formation unless specifically extended by resolution of the City Council.

6. SECTION 6. The City Clerk shall certify to the passage and adoption of this Resolution. //////
//////
//////

6.A.2
Attachment: Reso Ad Hoc Committee to Beautify Arvin_042523 (Ad Hoc Committee to Beautify Arvin) Reso Establishing Ad Hoc Committee to Beautify Arvin.

Page 2 of 2 ends

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Arvin at a regular meeting thereof held on the 25th day of April 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
CECILIA VELA, City Clerk

CITY OF ARVIN
By:

OLIVIA TRUJILLO, Mayor
APPROVED AS TO FORM:

By:

6.A.2
Attachment: Reso Ad Hoc Committee to Beautify Arvin_042523 (Ad Hoc Committee to Beautify Arvin)

CITY OF ARVIN
Staff Report
Meeting Date: April 25, 2023
TO: Arvin City Council
FROM: Dennis Clark, Finance Supervisor
Jeff Jones, City Manager
SUBJECT: A Resolution of the City Council of the City of Arvin Awarding A Professional Services Agreement to Willdan Financial Services to Prepare A City Cost Allocation Plan and Rate Study for Sewer Operations.

BACKGROUND:

The City is responsible for providing water, sewer and solid waste services to approximately 4,000 customers. The most recent sewer rate study was completed in 2014 and the last rate increase was on July 1, 2019. On January 31, 2023, the City of Arvin published an ad in the Bakersfield Californian, soliciting proposals for a qualified consultant to prepare a cost allocation plan and sewer rate study. The solicitation was also posted on Planet Bids on January 26, 2023.

The purpose of this project is to ensure that the City of Arvin has a basis of applying comprehensive overhead rates and is accurately accounting for the true cost of providing various services by department. The focus of the rate studies is to ensure the City’s sewer utility has sufficient, defensible funding to meet their operational, capital, current and proposed debt service obligations and those utility rates are set proportionate to the cost of providing service to each customer class. In addition, the consultant will provide a financial model showing rate impacts created by new capital and operational requirements. This model will be useable by City staff for future financial planning.

In response to the public advertisement and solicitation, the City of Arvin received two bids, one of which was non-competitive. The only competitive bid was received from Willdan Financial Services.

STAFF RECOMMENDATION:

Staff recommends approval of the Resolution awarding a Professional Services Agreement to Willdan Financial Services to prepare a cost allocation plan and rate study for sewer operations.

FINANCIAL IMPACT:

The City will use Sewer Funds to cover these expenses.

ATTACHMENTS:

Resolution
Willdan Financial Services Proposal
Draft Professional Services Agreement

6.B.1
Attachment: Staff Report Awarding PSA to Willdan Financial Services to Prepare the City Cost Allocation Plan and Rate Study for Sewer

Page 1 of 2 ends

Reso Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Plan and Sewer Rate Study.

RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARVIN

AWARDING A PROFESSIONAL SERVICES AGREEMENT TO

WILLDAN FINANCIAL SERVICES TO PREPARE A CITY COST
ALLOCATION PLAN AND RATE STUDY FOR SEWER OPERATIONS.

WHEREAS, the City is responsible for providing water, sewer and solid waste services to approximately 4,000 customers; and
WHEREAS, the most recent sewer rate study was completed in 2014 and the last rate increase was on July 1, 2019; and
WHEREAS, the City of Arvin has determined that there is a need for a cost allocation plan and rate study for sewer operations; and
WHEREAS, on January 31, 2023, the City of Arvin published an ad in the Bakersfield Californian soliciting proposals for a qualified consultant to prepare a cost allocation plan and rate study for sewer operations. The solicitation was also posted on Planet Bids on January 26, 2023; and
WHEREAS, the purpose of this project is to ensure that the City of Arvin has a basis of applying comprehensive overhead rates and is accurately accounting for the true cost of providing various services by department; and
WHEREAS, in response to the public advertisement and solicitation, the City of Arvin received two bids, one of which was non-competitive. The one competitive bid was received from Willdan Financial Services.

Willdan Financial Services
Fee Proposal Rate Amount
Cost Allocation Plan fixed $9,930.00
Sewer Utility Rate Study fixed $24,545.00
Total Fixed Costs $34,475.00
NOW, THEREFORE, BE IT RESOLVED THAT: The City Council of the City of Arvin does hereby accept the proposal received and authorizes the City Manager to execute a Professional Services Agreement with Willdan Financial Services to provide a Cost Allocation Plan and Rate Study for Sewer Operations for an amount not to exceed $34,475.00. //////
//////
//////

6.B.2
Attachment: Reso Awarding PSA to Willdan Financial Services to Prepare the City Cost Allocation Plan and Rate Study for Sewer

Page 2 of 2 ends

Reso Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Plan and Sewer Rate Study.

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Arvin at a regular meeting thereof held on the 25th day of April 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
CECILIA VELA, City Clerk

CITY OF ARVIN
By:

OLIVIA TRUJILLO, Mayor
APPROVED AS TO FORM:

By:

6.B.2
Attachment: Reso Awarding PSA to Willdan Financial Services to Prepare the City Cost Allocation Plan and Rate Study for Sewer

Page 1 of 82 ends

PROFESSIONAL CONSULTANT SERVICES AGREEMENT
AGREEMENT NO. __________

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

FOR A CITY COST ALLOCATION PLAN AND

RATE STUDY FOR SEWER OPERATIONS

BETWEEN

CITY OF ARVIN, CALIFORNIA,
AND

WILLDAN FINANCIAL SERVICES
THIS AGREEMENT (“Agreement”) is made and entered into as of the date of execution by the CITY OF ARVIN (the "City") and Willdan Financial Services (“Consultant”).

RECITALS
The City requires outside assistance to provide the following services: City Cost Allocation Plan and Rate Study for Sewer Operations.

WHEREAS, Consultant represents itself as possessing the necessary skills and qualifications to provide the services required by the City and as being duly qualified to perform those services in accordance with the standard of quality ordinarily expected of competent professionals in Consultant’s field of expertise;
WHEREAS, Consultant will render such professional services, as hereinafter defined, on the following terms and conditions;
NOW THEREFORE, in consideration of these recitals, and the mutual covenants contained herein, the City and Consultant agree as follows:

AGREEMENT

1. TERM OF AGREEMENT.

1.1. This Agreement shall be effective on and from the day, month and year of the execution of this document by the City.

1.2. Consultant shall commence the performance of the services in accordance with the Scope of Work section provided in “Attachment A” to this Agreement and shall continue such services until all tasks to be performed are completed, or this Agreement is otherwise terminated. Consultant shall complete the services and provide final data, reports, and deliverables as described in Attachment A no later than [Month, Day, Year], unless an extension of time is mutually agreed to by both parties in writing.

6.B.3
Attachment: PSA Willdan Financial Services Cost allocation Plan and Sewer Rate Study 2023_DRAFT (Awarding PSA to Willdan Financial

Page 2 of 82 ends

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

2. CONSULTANT'S OBLIGATIONS- SCOPE OF WORK (ATTACHMENT A).

2.1. Consultant shall provide the City with the following services: The specific manner in which the services are to be performed is described in Attachment “A” which is attached hereto and incorporated herein as though fully set forth at length, collectively hereinafter referred to as “Described Services.”

2.2. Consultant shall perform all work required to accomplish the Described Services in conformity with applicable requirements of Federal, State and Local law.

2.3. Consultant is hired to render the Described Services and any payments made to Consultant are compensation fully for such services.

2.4. Consultant shall maintain professional certifications as required to properly comply with all City, State, and Federal law.

2.5. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. If the City, in good faith, at any time during the term of this Agreement, desires the removal of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, cause the removal of such person or persons.

2.6. If a license or certification of any kind is required of Consultant, its employees, agents, or subcontractors by federal, state or law and regulation, Consultant warrants that such license has been obtained, is valid and in good standing, and shall keep in effect at all times during the term of this Agreement, and that any applicable bond has been posted in accordance with all applicable laws and regulations.

2.7. Consultant shall provide the City with timely written reports of all significant developments or delays arising during performance of its services.

3. PAYMENT FOR SERVICES (ATTACHMENT A).

3.1. Payment to Consultant to perform its Scope of Work is set forth in Attachment A, attached hereto and incorporated herein. The payments provided in this Section are full compensation for the Scope of Work as described in Attachment A.

3.2. Consultant shall submit monthly bills to the City, describing its services and costs provided during the previous month, based upon percentage of task completed. Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant's monthly bills shall include the following information to which such services or costs pertain:
- a description of services performed;
- the date the services were performed;
- the number of hours spent and by whom;
- a description of all costs incurred, and the Consultant's signature.

6.B.3
Attachment: PSA Willdan Financial Services Cost allocation Plan and Sewer Rate Study 2023_DRAFT (Awarding PSA to Willdan Financial

Page 3 of 82 ends

PROFESSIONAL CONSULTANT SERVICES AGREEMENT
Consultant agrees to use every appropriate method to contain fees and costs under this Agreement. Once invoice is submitted and approved by the City, City payment will be made within 30 days of approval.

3.3. The amount set forth in Attachment A may be modified or amended only by a written document executed by both Consultant and authorized City representative prior to the performance of the additional work. Such document shall expressly state that it is intended by the parties to amend the terms and conditions of this Agreement.

4. SUBCONTRACTING.

4.1. Consultant will not subcontract any portion of its Scope of Work without prior written approval of City. If Consultant subcontracts for any of the work to be performed under this Agreement, Consultant shall be as fully responsible to the City for the acts and omissions of Consultant’s subcontractors/subconsultants and for the persons either directly or indirectly employed by the subcontractors/subconsultants, as Consultant is for the acts and omissions of persons directly employed by Consultant. Nothing contained in the Agreement shall create any contractual relationship between any subcontractor/subconsultant of Consultant and the City. Consultant will be responsible for payment of subcontractors/subconsultants. Consultant shall bind every subcontractor/subconsultant to the terms of the Agreement applicable to Consultant’s work unless specifically noted to the contrary in the subcontract in question and approved in writing by the City. Consultant agrees that the City is an intended third-party beneficiary of any services agreement entered into between Consultant and any subcontractor or subconsultant.

5. PROJECT SCHEDULE AND COMPLETION DATE (ATTACHMENT A).

5.1. Attachment A is the project schedule that Consultant shall strictly meet, including benchmark dates and completion date, which is attached hereto and incorporated herein.

Consultant agrees to diligently prosecute the services to be provided under this Agreement to completion and in accordance with the schedule specified herein. In the performance of this Agreement, time is of the essence.

5.2. Consultant shall promptly notify the City of any anticipated or unforeseen delays to the project schedule. Extensions to the project schedule and to this Agreement shall not be made without the prior written approval of the City. All requests for extensions to the project schedule shall be by written request only and submitted to the City prior to the commencement of such work.

6. CHANGES IN WORK AND EXTRA WORK. Consultant shall not change the scope or duration of work or perform work in excess of the Scope of Work without the prior, written approval of the City by an executed Change Order, describing in detail the revision to Scope of Work, revisions in payment and/or time, fully executed by both parties. Failure to obtain a Change Order prior to the commencement of any revision waives Contractor’s right to payment for such additional services.

7. RESPONSIBILITIES OF AND TASKS TO BE PERFORMED BY CITY. City designates Jeff Jones, its City Manager, to represent the City in all matters within the scope of this

6.B.3
Attachment: PSA Willdan Financial Services Cost allocation Plan and Sewer Rate Study 2023_DRAFT (Awarding PSA to Willdan Financial

Page 4 of 82 ends

PROFESSIONAL CONSULTANT SERVICES AGREEMENT
Contract relating to the conduct and approval of the work to be performed. Whenever the term “approval of City,” “consult with City,” “confer with City,” or similar terms are used, they shall refer to the City Manager. The City Manager may designate an assistant to act in his/her stead.

The CITY shall furnish upon request, without charge, all standard plans and specifications and any other information which the City now has in its files that may be of use to the Consultant.

8. VERBAL AGREEMENT OR CONVERSATION. No verbal agreement or conversation with any officer, agent, or employee of the City, either before, during or after the execution of this Agreement, shall affect or modify any of the terms or obligations herein contained nor shall such verbal agreement or conversation entitle Consultant to any additional payment whatsoever.

9. TERMINATION OF AGREEMENT.

9.1. Termination for Convenience. City may terminate this Contract for City’s convenience at any time by providing Consultant thirty days written notice. Upon receipt of the notice of termination, Consultant shall immediately take action not to incur any additional obligations, costs or expenses, except as may be necessary to terminate its activities. City shall pay Consultant its reasonable and allowable costs through the effective date of termination and those reasonable and necessary costs incurred by Consultant to effect the termination. Thereafter, Consultant shall have no further claims against City under this Contract. All finished and unfinished documents and materials procured for or produced under this Contract, including all intellectual property rights City is entitled to, shall become City property upon the date of the termination. Consultant agrees to execute any documents necessary for City to perfect, memorialize, or record City’s ownership of rights provided herein.

9.2. Termination for Breach of Contract.

9.2.1. If Consultant fails to perform any of the provisions of this Contract or so fails to make progress as to endanger timely performance of this Contract, City may give Consultant written notice of the default. City’s default notice will indicate whether the default may be cured and the time period to cure the default to the sole satisfaction of City. Additionally, City’s default notice may offer Consultant an opportunity to provide City with a plan to cure the default, which shall be submitted to City within the time period allowed by City. At City’s sole discretion, City may accept or reject Consultant’s plan. If the default cannot be cured or if Consultant fails to cure within the period allowed by City, then City may terminate this Contract due to Consultant’s breach of this Contract.

9.2.2. If the default under this Contract is due to Consultant’s failure to maintain the insurance required under this Contract, Consultant shall immediately: (1) suspend performance of any services under this Contract for which insurance was required; and (2) notify its employees and Subconsultants of the loss of insurance coverage and Consultant’s obligation to suspend performance of services. Consultant shall not recommence performance until Consultant is fully insured and in compliance with City’s requirements.

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9.2.3. If a federal or state proceeding for relief of debtors is undertaken by or against Consultant, or if Consultant makes an assignment for the benefit of creditors, then City may immediately terminate this Contract.

9.2.4. If Consultant engages in any dishonest conduct related to the performance or administration of this Contract or violates City’s laws, regulations or policies relating to lobbying, then City may immediately terminate this Contract.

9.2.5. Acts of Moral Turpitude
a. Consultant shall immediately notify City if Consultant or any Key Person, as defined below, is charged with, indicted for, convicted of, pleads nolo contendere to, or forfeits bail or fails to appear in court for a hearing related to, any act which constitutes an offense involving moral turpitude under federal, state, or local laws (“Act of Moral Turpitude”). b. If Consultant or a Key Person is convicted of, pleads nolo contendere to, or forfeits bail or fails to appear in court for a hearing related to, an Act of Moral Turpitude, City may immediately terminate this Contract. c. If Consultant or a Key Person is charged with or indicted for an Act of Moral Turpitude, City may terminate this Contract after providing Consultant an opportunity to present evidence of Consultant’s ability to perform under the terms of this Contract.
d. Acts of Moral Turpitude include, but are not limited to: violent felonies as defined by Penal Code Section 667.5, crimes involving weapons, crimes resulting in serious bodily injury or death, serious felonies as defined by Penal Code Section 1192.7, and those crimes referenced in the Penal Code and articulated in California Public Resources Code Section 5164(a)(2); in addition to and including acts of murder, rape, sexual assault, robbery, kidnapping, human trafficking, pimping, voluntary manslaughter, aggravated assault, assault on a peace officer, mayhem, fraud, domestic abuse, elderly abuse, and child abuse, regardless of whether such acts are punishable by felony or misdemeanor conviction.
e. For the purposes of this provision, a Key Person is a principal, officer, or employee assigned to this Contract, or owner (directly or indirectly, through one or more intermediaries) of ten percent or more of the voting power or equity interests of Consultant.

9.2.6. In the event City terminates this Contract as provided in this section, City may procure, upon such terms and in the manner as City may deem appropriate, services similar in scope and level of effort to those so terminated, and Consultant shall be liable to City for all of its costs and damages, including, but not limited to, any excess costs for such services.

9.2.7. If, after notice of termination of this Contract under the provisions of this section, it is determined for any reason that Consultant was not in default under the provisions of this section, or that the default was excusable under the terms of this Contract, the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Article 8 Termination for Convenience.

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9.2.8. The rights and remedies of City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Contract.

9.3. In the event that this Contract is terminated, Consultant shall immediately notify all employees and Subconsultants, and shall notify in writing all other parties contracted with under the terms of this Contract within five (5) working days of the termination.

10. COVENANTS AGAINST CONTINGENT FEES. Consultant warrants that it has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, and that Consultant has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, the City shall have the right to terminate this Agreement without liability or, at the City’s discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

11. OWNERSHIP OF DOCUMENTS.

11.1. All computer data, computer drawing files, plans, studies, sketches, drawings, reports, specifications, and all work product produced by Consultant under this Agreement are the property of the City, whether or not the City completes the Scope of Work or proceeds with the project for which such documents are prepared.

11.2. This Agreement creates a nonexclusive and perpetual right or license for City to copy, use, modify, reuse, and sublicense any and all copyrights, designs, and other intellectual property embodied in the writings prepared by Consultant, and Consultant subcontractors, under this Agreement. In the event the City should ever desire to undertake a project or review other proposed projects based upon the documents, the Consultant agrees that the City shall have the right to reuse all or any portion of the documents at no additional compensation to the Consultant.

12. INDEPENDENT CONTRACTOR.

12.1. The Consultant shall perform the services provided for herein in a manner of Consultant's own choice, as an independent Contract and in pursuit of Consultant's independent calling, and not as an employee of the City. Consultant shall be under control of the City only as to the result to be accomplished and the personnel assigned to the Project.

12.2. If the Consultant subcontracts any of the work to be performed under this Agreement pursuant to the terms of this Agreement, Consultant shall be as fully responsible to the City or the acts and omissions of the Consultant's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Consultant is for the acts and omissions of persons directly employed by Consultant. Nothing contained in the Agreement shall create any contractual relationship between any subcontractor of Consultant and the City. The Consultant shall bind every subcontract by the terms of the Agreement applicable to Consultant's work, including indemnity and insurance requirements.

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13. HOLD HARMLESS AND INDEMNIFICATION.

13.1. Indemnification - It is understood and agreed that Consultant has the professional skills, experience, and knowledge necessary to perform the work agreed to be performed under this Agreement and that City relies upon the professional skills of Consultant to do and perform Consultant's work in a skillful and professional manner, and Consultant thus agrees to so perform the work.

13.2. Acceptance by City of the work performed under this Agreement does not operate as a release of said Consultant from such professional responsibility for the work performed. It is further understood and agreed that Consultant is apprised of the scope of the work to be performed under this Agreement and Consultant agrees that said work can and shall be performed in a fully competent manner.

13.3. Consistent with California Civil Code section 2782.8, when the services to be provided under this Agreement are design professional services to be performed by a design professional, as that term is defined under said section 2782.8, Consultant shall, to the fullest extent permitted by law, indemnify, protect, immediately defend, and hold harmless City, and its officers, employees, agents, and volunteers, from and against all claims, demands, damages, costs, or liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, or costs of any kind, interest, defense costs, and expert witness fees) arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of Consultant, its officers, employees, subcontractors, subconsultants or agents during the performance this Agreement, or from any violation of any federal, state, or municipal law or ordinance to the extent caused, in whole or in part, by the negligence, reckless, or willful misconduct of Consultant or its employees, subcontractors, or agents, or by the quality or character of Consultant’s work, excepting only liability arising from the sole negligence, sole active negligence, or intentional misconduct of City, its officers, employees, agents, and volunteers.

13.4. Other than in the performance of professional services by a design professional, which law shall be solely as addressed in subparagraph 12.3 above, and to the fullest extent permitted by law, Consultant shall indemnify, protect, defend, and hold harmless City, and its officers, employees, agents, and volunteers, from and against any claims, demands, damages, costs, or liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, or costs of any kind, interest, defense costs, and expert witness fees) arising out of the performance of this Agreement by Consultant, its officers, employees, agents, subcontractors and subconsultants, excepting only that resulting from the sole negligence, sole active negligence, or intentional misconduct of City, its officers, employees, agents, and volunteers. It is understood that the duty of Consultant to indemnify and hold harmless includes the duty to defend as set forth in section 2778 of the California Civil Code.

13.5. Acceptance of insurance certificates and endorsements required under this Agreement does not relieve Consultant from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply whether or not

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such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

14. ASSIGNMENT OF AGREEMENT. Consultant is without right to and shall not assign this Agreement or any part thereof or any monies due hereunder without the prior written consent of the City.

15. INSURANCE.

15.1. Insurance. On or before beginning any of the services or work called for by any term of this Agreement, Consultant, at its own cost and expense, shall carry, maintain for the duration of the Agreement (including all extensions provided), and provide proof thereof that is acceptable to the City the insurance specified in subsections (A) through (F) below with insurers and under forms of insurance satisfactory in all respects to the City.

Consultant shall not allow any subcontractor to commence work on any subcontract until all insurance required of the Consultant has also been obtained for the subcontractor. The Certificate of Insurance shall clearly identify the project name and number in the space labeled “Description of Operations/Locations/Special Items” on the form.

A. Commercial General and Automobile Liability. Consultant, at Consultant's own cost and expense, shall maintain commercial general and automobile liability insurance for the period covered by this Agreement in an amount not less than one million dollars ($1,000,000) per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non-owned automobiles.

Coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 and Insurance Services Office Automobile Liability form CA 0001 Code 1 (any auto).

Each of the following shall be included in the insurance coverage or added as an additional insured endorsement to the policy: City, its officers, employees, agents, and volunteers are to be covered as insured’s as respects each of the following: liability arising out of activities performed by or on behalf of Consultant, including the insured's general supervision of Consultant; products and completed operations of Consultant; premises owned, occupied or used by Consultant; or automobiles owned, leased, hired, or borrowed by Consultant. In the event that Consultant purchases automobiles during the term of this Agreement, said automobiles shall be likewise covered. The coverage shall contain no special

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An endorsement must state that coverage is primary insurance and that no other insurance affected by the City will be called upon to contribute to a loss under the coverage.

Insurance is to be placed with California-admitted insurers with a Best's rating of no less than A:VII.

B. Professional Liability. Consultant shall obtain, and during the term of this Agreement shall maintain, a policy of professional liability insurance that shall:
i. Be from an insurance company authorized to be in business in the State of California;
ii. Be in an insurable amount of not less than $1,000,000 for each occurrence; and
iii. Provide that the policy shall remain in full force during the full term of this Agreement and shall not be canceled, terminated, or allowed to expire without thirty (30) days prior written notice to the City from the insurance company.

C. Workers' Compensation. Statutory Workers' Compensation Insurance and Employer's Liability insurance for any and all persons employed directly or indirectly by Consultant shall be provided with limits not less than one million dollars. In the alternative, Consultant may rely on a self-insurance program to meet these requirements so long as the program of self-insurance complies fully with the provisions of the California Labor Code. The insurer, if insurance is provided, or the Consultant, if a program of self-insurance is provided, shall waive all rights of subrogation against the City for loss arising from work performed under this Agreement.

D. Deductibles and Self-Insured Retentions. During the period covered by this Agreement, upon express written authorization of City Risk Manager, Consultant may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The City may condition approval of an increase in deductible or self-insured retention levels upon a requirement that Consultant procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.

E. Notice of Reduction in Coverage. In the event that any coverage required under subsections (A), (B), or (C) of this section of the Agreement is reduced, limited, or materially affected in any other manner, Consultant shall provide written notice to City at Consultant's earliest possible opportunity and in no case later than five day after Consultant is notified of the change in coverage.

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F. Other Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option:
i. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; ii. Order Consultant to stop work under this Agreement or withhold any payment which becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof;
iii. Terminate this Agreement.
iv. Exercise of any of the above remedies, however, is an alternative to other remedies City may have and is not the exclusive remedy for Consultant's failure to maintain insurance or secure appropriate endorsements.

16. DISPUTES.

16.1. If a dispute should arise regarding the performance of this Agreement, the following initial dispute resolution procedures shall be used:

A. Within twenty (20) City working days after a dispute regarding the performance of this Agreement arises, it shall be reduced to writing at staff level by the complaining party setting forth the nature of the dispute in detail, along with all pertinent back up documentation in support. The writing shall be delivered to the receiving party by first class mail or personal delivery directly to the party’s project manager, along with recommended methods of resolution.

B. The party receiving the letter shall reply to the letter with a detailed response, along with a recommended method of resolution, if any, within ten (10) City working days of receipt of the letter.

16.2. If the dispute is not resolved at staff level in accordance with Section 15.1, within five (5) City working days of the receiving party response (or longer if agreed between the parties), the aggrieved party, through its respective project manager shall deliver to the General Manager’s office a letter outlining the dispute for the General Manager’s review.

The receiving party may submit further response, if required, to the General Manager within five (5) City working days thereafter. The General Manager, at his/her sole discretion may respond as he/she deems appropriate, including recommendations for resolution, discussions or rejection of the dispute within fifteen (15) working days of receipt of the complaint.

16.3. If the dispute remains unresolved and the parties have exhausted the procedures outlined in this section, the parties may then seek remedies available to them under this Agreement and at law, including, but not limited to, under the termination procedures.

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This provision does not relieve Consultant of its obligation and Consultant is required to timely comply with all applicable provisions of the Government Claims Act before initiating any legal proceeding against City.

17. CONFLICT OF INTEREST. Contractor warrants and covenants that it presently has no interest in, nor shall any interest be hereinafter acquired in, any matter which will render the services required under the provisions of this Agreement a violation of any applicable state, local, or federal law, including, but not limited to, Government Code section 1090. If any principal provider of services is a "consultant" for the purposes of the Fair Political Practices Act (Gov. Code § 81000 et seq.), each such person shall comply with Form 721 Statement of Economic Interests filing requirements in accordance with state or City local Conflict of Interest Code. In addition, if any other conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that the City may determine whether to terminate this Agreement.

18. CONSULTANT’S BOOKS AND RECORDS.

18.1. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant.

18.2. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement.

18.3. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City General Counsel, City Auditor, General Manager, or a designated representative of any of these officers. Copies of such documents shall be provided to City for inspection when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant's address indicated for receipt of notices in this Agreement.

18.4. City may, by written request by any of the above-named officers, require that custody of the records be given to City and that the records and documents be maintained in the General Manager's office. Access to such records and documents shall be granted to any party authorized by Consultant’s representatives, or Consultant’s successor in interest.

19. WRITTEN NOTIFICATION. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party shall be in writing and either served personally or sent by prepaid, first-class mail. Any such notice, demand, etc. shall be addressed to the other party at the address set forth below. Either party may change its address by notifying the other party of the change of address. Notice shall be

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deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: City of Arvin
Attn: City Manager
200 Campus Drive
Arvin, CA 93203
If to Consultant: Willdan Financial Services
Attn: Chris Fisher
27368 Via Industria, Suite 200
Temecula, CA 92590
Any party may change any of the foregoing as it relates to the party by giving written notice to the other party of the change in the manner set forth herein.

20. GENERAL PROVISIONS.

20.1. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

20.2. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.

20.3. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Kern.

20.4. Time is of the essence with regard to each covenant, condition and provision of this Agreement.

20.5. This Agreement constitutes the entire agreement between the parties with regard to the subject matter herein and supersedes any prior oral and written agreements and understandings between the parties with respect thereto.

20.6. This Agreement may not be altered, amended, or modified except by a writing executed by duly authorized representatives of all parties.

20.7. In the event any action or proceeding is instituted arising out of or relating to this Agreement, the prevailing party shall be entitled to its reasonable attorney's fees and actual costs.

20.8. This Agreement may be executed in counterparts. A facsimile or electronic copy of this Agreement shall be as effective as the original for all purposes.

20.9. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their respective heirs, successors, and assigns. Notwithstanding the foregoing,

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Consultant shall not assign this Agreement or any part thereof to any other entity or individual.

20.10. City and Consultant each acknowledge that each party and their respective legal counsel have reviewed this Agreement and agree that this Agreement is the product of negotiations between the parties. This Agreement shall be interpreted without reference to the rule of interpretation of documents that uncertainties or ambiguities therein shall be determined against the party so drafting the Agreement.

20.11. All references to a statute or ordinance, shall incorporate any, or all, successor statute or ordinance enacted to govern the activity now governed by the statute or ordinance, noted herein to the extent, however, that incorporation of such successor statute or ordinance does not adversely affect the benefits and protections granted to the Developer under this Agreement.

21. CONSULTANT'S CERTIFICATION OF AWARENESS OF IMMIGRATION REFORM AND CONTROL ACT. Consultant certifies that Consultant is aware of the requirements of the Immigration Reform and Control Act of 1986 (8 USC §§ 1101-1525) and has complied and will comply with these requirements, including but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that are included in this Agreement.

22. ACCESS AND ACCOMMODATIONS

22.1. Consultant shall comply with the Americans with Disabilities Act, as amended, 42 U.S.C. Section 12101 et seq., the Rehabilitation Act of 1973, as amended, 29 U.S.C.

Section 701 et seq., the Fair Housing Act, and its implementing regulations and any subsequent amendments, and California Government Code Section 11135;

22.2. Consultant shall not discriminate on the basis of disability or on the basis of a person’s relationship to, or association with, a person who has a disability;

22.3. Consultant shall provide reasonable accommodation upon request to ensure equal access to CITY-funded programs, services and activities;

22.4. Construction, if any, will be performed in accordance with the Uniform Federal Accessibility Standards (UFAS), 24 C.F.R. Part 40; and

22.5. The buildings and facilities used to provide services under this Contract are in compliance with the federal and state standards for accessibility as set forth in the 2010 ADA Standards, California Title 24, Chapter 11, or other applicable federal and state law.

Consultant understands that City is relying upon these certifications and representations as a condition to funding this Contract. Any subcontract entered into by Consultant for work to be performed under this Contract must include an identical provision. [Signature Page Follows]

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IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the day and year written below.
“CITY” “CONSULTANT”

CITY OF ARVIN,
a municipal corporation
By: __________________________
Jeff Jones, City Manager

Dated: _______________, 202__
ATTEST:

Cecilia Vela, City Clerk
Insert Name
Insert Entity Type
By: ____________________________
Name: __________________________

Title: ___________________________
Dated: ______________, 202__
APPROVED AS TO FORM:
____________________________
Nathan M. Hodges, City Attorney

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ATTACHMENT “A”
Scope of Work and Fee Schedule
Refer to the City of Arvin Cost Allocation Plan and Sewer Rate Study Proposal from Willdan Financial Services Dated February 27, 2023 attached hereto as Attachment “A”

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Attachment: PSA Willdan Financial Services Cost allocation Plan and Sewer Rate Study 2023_DRAFT (Awarding PSA to Willdan Financial City of Arvin, CA
Cost Allocation Plan and
Sewer Rate Study

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Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Utility Rate Studies i
City of Arvin
Table of Contents
1) INTRODUCTION ...................................................................................................................................................... II 2) BACKGROUND AND EXPERIENCE................................................................................................................. 1 Project Descriptions and References ......................................................................................................................1 Cost Allocation Plan Project Experience .................................................................................................................5 Utility Rate Project Experience ................................................................................................................................9 Insurability..............................................................................................................................................................10 3) SPECIALIZED KNOWLEDGE.............................................................................................................................11 Firm Summary .......................................................................................................................................................11 Firm Qualifications and Experience .......................................................................................................................12 4) PERSONNEL / PROFESSIONAL QUALIFICATIONS................................................................................15 Project Roles..........................................................................................................................................................15 Chris Fisher........................................................................................................................................................... 16 Tony Thrasher....................................................................................................................................................... 18 Priti Patel............................................................................................................................................................... 19 Robert Quaid......................................................................................................................................................... 20 Michael Cronan..................................................................................................................................................... 21 Jeffrey McGarvey.................................................................................................................................................. 22 Kevin Burnett, MA................................................................................................................................................. 23 5) TOTAL PROJECTED COST OF THE PROJECT..........................................................................................24 Scope of Services ..................................................................................................................................................24 Cost Allocation Plan Methodology .........................................................................................................................27 Utility Rate Study Project Methodology .................................................................................................................28 Cost Allocation Plan Work Plan .............................................................................................................................32 Sewer Utility Rate Study Work Plan ......................................................................................................................34 Communicating Results - Presentations & Meetings ............................................................................................38 City Staff Support / Responsibilities.......................................................................................................................39 Project Disclaimer..................................................................................................................................................39 Project Management and Quality Assurance/Control Approach ...........................................................................40 Fee Proposal..........................................................................................................................................................42 Project Timelines ...................................................................................................................................................44 REQUIRED FORM ........................................................................................................................................................46

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Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com 1) Introduction
February 27, 2023
Mr. Jeff Jones
City Manager/Finance Director
City of Arvin
200 Campus Drive
Arvin, CA 93250
Re: Proposal in Response to RFP – Cost Allocation Plan and Sewer Rate Study for the City of Arvin Dear Mr. Jones;
Due to the extended shutdown of much of the economy as a result of the Covid-19 outbreak, now more than ever municipalities are challenged with doing more with less. Accounting for indirect overhead support to operating groups, revenue funds and enterprises is a key component in developing overhead rates and calculating and accounting for the true full cost of providing services. Further, the development of a comprehensive financial plan and Rate Study for the Sewer Utility will ensure sufficient and defensible financial resources are available to meet operating, debt and capital needs over the next five years, and support the development of cost-ofservice based Prop 218 compliant rates. Recognizing this, the City of Arvin (“City”) is requesting proposals for a Cost Allocation Plan (“CAP”) and Sewer Utility Rate Study.

Willdan’s interactive approach will result in dynamic and customized Excel financial models, that the City will retain, as well as a focused and tailored analysis of the City’s current rates, revenues, capital project and operational expenditures, debt commitments, reserve funding, and other financial data. The culmination of our analysis will be a comprehensive financial management plan that develops projected system operating results for the next ten (10) fiscal years, and suggested rates for up to five (5) years. We will employ our proven interactive approach, supported with advanced financial modeling techniques, to develop a sophisticated and flexible financial model to help us guide the City through operating and financial scenarios, while evaluating the impact of policy assumptions, and performing sensitivity analysis on utility rate and financial strategies.

Our ability to focus on the financial aspects of operating publicly owned utility systems is coupled with recognized leadership in strategic planning and operations and enables us to bring unmatched value to our clients. Our team brings a set of nationally recognized qualifications and experts that sets us apart; and we welcome this opportunity to bring a fresh and unique perspective based on our considerable recent experience and unmatched insight into municipal operations. These qualifications include:

Recent Experience on Successful Projects with Similar Objectives, Goals and Challenges as Arvin — Many cities that operate sewer and water utilities face the continuing challenges of ensuring that financial resources are available for operations and maintenance as well as capital projects for the utility, while trying to minimize financial impacts on customers. For these cities and their utility enterprises, we developed comprehensive models that facilitated the examination of various financial plans and capital funding scenarios. Scenarios were developed that incorporated different funding sources and alternative project timing, as well as funding of reserves, so that we could work collaboratively with the cities to evaluate the impacts of these changes on the overall financial plans for, and most importantly, understand the impact on customers.

Willdan has worked with cities near Arvin, and throughout California, on Cost Allocation and Rate Study projects with objectives very much like those for this study. Our local knowledge will help us bring valuable perspective and knowledge of other cities’ approaches and policies to accounting for and allocating overhead costs and developing financial plans and cost-of-service rates for utilities. Recent Cost Allocation and Rate Study projects studies include Guadalupe, Soledad, Lindsay, Lakeport, La Palma, Lomita, the McKinleyville CSD, Goleta, Pismo Beach, Gilroy, Fillmore, Chino Hills, Pomona, Eastvale, Claremont, Stanton, Rosemead, Richmond, Sebastopol, and Grover Beach; and are currently working with the Cities of Dinuba, Apple Valley, Vacaville, and Fillmore, and we are in the process of kicking-off a project with the City of McFarland, with objectives and experience that relate closely to the goals of the City’s proposed study.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Mr. Jeff Jones, City Manager/Finance Director
City of Arvin
Proposal in Response – Cost Allocation Plan and Sewer Rate Study February 27, 2023 | Page iii
Unique Combination of Services and Expertise/Public Engagement — Willdan is unique as a firm with combined industry-leading expertise in both Cost Allocation Plan development and Utility Rate Studies. We are a team of 80 professionals who provide essential financial consulting services throughout the United States. Willdan has provided the requested services to municipal clients for two decades; and is the only firm providing these types of consulting services that also has a long history of providing contract staff support to public agencies for the delivery of municipal services. This direct experience as “agency staff” provides us with firsthand understanding of City operations and is uniquely useful in determining the full effort associated with service delivery.

Collaborative Approach and User-friendly Models and Reports — Willdan prides itself on working closely with City Staff to develop an approach that is targeted toward your specific objectives and accounts for your reality.

We create user-friendly Excel-based models that the City can retain and conduct our analysis and develop the model collaboratively with City Staff. Rather than using an inflexible proprietary software program, we construct our models from the ground up, mirroring the City’s budget format wherever possible.

Our Cost Allocation Model is straightforward and intuitive and includes both the full-cost and OMB-cost approaches in one streamlined presentation. The data and analysis is contained in one model, with a simple toggle to switch from one approach to the other.

As a result, the information contained in our models is easy for City Staff to interpret, and the familiar software ensures ease of navigation. This also allows for easy on-the-fly adjustments and updates, inclusion of updated budgets, or changes in organizational structure. Our model and project approach are geared toward delivering work on schedule and presenting results at public meetings and City Council workshops. The Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by non-finance-oriented individuals and facilitates discussion. We have coordinated or participated in numerous public and staff workshops regarding fees and cost of service-based charges.

Our objective is to provide useful, detailed information to the City Council and City Staff, so that they have the information necessary to make important decisions. Our experience ensures that we can meet this objective. Whether policymakers are considering subsidizing or increasing fees, the process may be subject to public discussion among City Council members and community stakeholders.

Due to ongoing policies related to COVID, we have adopted a flexible policy regarding in person versus virtual meetings. We can work in either format at the option of the client, and have in the past few years completed many fee updates completely virtually where desired.

Willdan acknowledges herein that it maintains all required licensing to conduct business in the state of California; and will be responsible for completing the contract and subordinate payments resulting from this project. Willdan is not aware of any direct past, ongoing or potential conflicts of interest that would impair or impede our ability to conduct the Cost Allocation Plan and Sewer Rate Study objectively for the City of Arvin.

As an officer of the firm, I am authorized to bind the firm to the terms of this proposal, as well as the subsequent agreement. My contact information is provided in the table below:

Contact Information
Principal-in-Charge
Chris Fisher
Director / Vice President
27368 Via Industria, Suite 200, Temecula, CA 92590
Tel#: (800) 755-6864 | Email: [email protected]
Sincerely,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Director / Vice President
Our Cost Allocation methodologies and
models have been recently reviewed
and approved by the US Army and the
US Department of Housing and Urban
Development, providing evidence of our
thorough and defensible approach to
the development of Cost Allocation
strategies and fully burdened personnel
rates for grant reimbursement.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 1
City of Arvin
2) Background and Experience
Project Descriptions and References
We are proud of our reputation for customer service and encourage you to contact these clients regarding our commitment to completing the projects within budget and agreed upon timelines.

Combined Study
City of Lomita, CA
Water Rate Study and Comprehensive User Fee Study and Full Cost Allocation Plan Willdan recently completed a Water Rate Study, Cost Allocation Plan and User Fee Study for the City of Lomita. The Cost Allocation Plan was completed to allocate the cost of shared support services to all operating funds and programs in the City, and the User Fee Study resulted in an updated Master Fee Schedule for the City.

The Water Rate Study included development of a comprehensive financial plan and model that incorporated a detailed analysis of operating and maintenance budgets, fund balances, as well as the capital plan. Using this model, we prepared and presented multiple financial scenarios for evaluation, which showed alternatives for inclusion/exclusion and timing of capital projects, different funding sources, and demonstrated the effects of these proposed plans on rate payers. During the course of the Rate Study, the City was finalizing its Water Master Plan update. As a result, the Rate Study was put on hold until the Master Plan was completed, and the Capital Improvement Plan was updated based on information presented in the completed Master Plan. This was the primary driver for the creation and evaluation of the scenarios described here.

Once the process of evaluating alternatives was finalized, a cost-of-service analysis was completed, and updated rates were developed and presented. Willdan prepared the report, created, and mailed the Prop 218 Notice, and attended all required meetings, including the City Council meeting and Public Hearing.

Client Contact: Ryan Smoot, City Manager
Tel #: (310) 325-7110, ext. 121 | Email: [email protected] Susan Kamada, Administrative Services Director
Tel #: (310) 325-7110, ext. 127 | Email: [email protected] 24300 Narbonne Avenue, Lomita, CA 90717
Project Dates: October 2020 - October 2022 Full Project Fees: $81,166 Cost Allocation Plan
Housing Authority of San Bernardino County, CA
Cost Allocation Plan
The Housing Authority of San Bernardino County engaged Willdan to complete a full and OMB compliant cost allocation plan. This engagement was triggered by unfavorable audit findings that the Housing Authority received from the Office of the Inspector General, for a grant program. Willdan’s work resulted in the audit findings being cleared.

Furthermore, Willdan was re-selected, through a competitive solicitation, to provide ongoing Cost Allocation Plan updates.

Client Contact: Jesse Diaz, Finance Manager
715 E. Brier Drive, San Bernardino, CA 92408
Tel #: (909) 332-6323 | Email: [email protected]
Project Dates: April 2020 – Ongoing Project Fees: $54,400

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 2
City of Arvin
City of Monterey, CA
Cost Allocation Plan and Indirect Cost Rates
Willdan completed a cost allocation plan for the City of Monterey. The objective of this project was to determine the appropriate allocation of indirect costs from City General Fund Central Service Departments to the General Fund operating departments/programs and the Non-General Fund departments/programs, which includes enterprise funds.

The project involved the development of a full Cost Allocation Plan model, and development of indirect and fully burdened rates for use in projects and services related to the Presidio. Recommended procedures included: analyze expenditures, interview staff, review the comprehensive annual financial report, and other financial documents.

Willdan was re-selected, through competitive bid, to update the Cost Allocation Plan and to calculate fully burdened hourly staff labor rates for multiple years.

Client Contact: Jordan Cupps, CPA, Assistant Finance Director 580 Pacific Street, Monterey, CA 93940
Tel #: (831) 646-3724 | Email: [email protected]
Project Dates: October 2014 – Ongoing Project Fees: $35,460 City of Goleta, CA
Cost Allocation Plan Update and Comprehensive User Fee Study The City of Goleta was seeking an outside consultant to complete a review and update of their current cost allocation plan and the preparation of a comprehensive user fee study for the development of its master list of fees. Our primary objective for the cost allocation study was to ensure that general government costs were fairly and equitably allocated to appropriate programs and funds, which are based on tailored and well thought out allocation factors.

For the Fee Study, the primary objective was to ensure that fees for requested services were calculated to account for the full cost of providing the services, and set appropriately, given City policy and financial objectives.

The cost allocation plan is complete, and Willdan utilized the final report to conduct the comprehensive user fee study.

Client Contact: Luke Rioux, Finance Director
130 Cremona Drive, Suite B, Goleta, CA 93117
Tel #: (805) 562-5508 | Email: [email protected]
Project Dates: January 2018 – April 2021 Project Fees: $38,708 City of San Marcos, CA
Cost Allocation Plan and Indirect Cost Rates
Willdan was engaged by the City of San Marcos to complete a full and OMB compliant cost allocation plan and preparation of Indirect Cost Rate proposals. Our primary objective for the cost allocation study was to ensure that general government costs were fairly and equitably allocated to appropriate programs and funds, which are based on tailored and well thought out allocation factors.

Models were created, which contained all City personnel and expenditures broken down into the ICRP tables that are needed for a report; once approved individual ICRP’s will be created for each department individually.

This project is ongoing.

Client Contact: Jeffrey Jorgenson, Accountant
1 Civic Center Drive, San Marcos CA 92069
Tel #: (760) 744-1050, ext. 3123 | Email: [email protected] Project Dates: June 2020 – Ongoing Project Fees: $22,270

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 3
City of Arvin
City of Salinas, CA
Comprehensive User Fee Study and Full & OMB Cost Allocation Plan Willdan was hired by the City of Salinas to prepare an OMB A-87-compliant full cost allocation plan, and comprehensive fee study for the development of a master list of fees. The Willdan Team led an all-departments overview meeting, where the framework and general process was reviewed, and global practical and policy questions were addressed. Immediately following the overview meeting, individual meetings were held with representatives from each department to discuss their specific fee related activities and gather necessary information to update fees.

The Willdan Team worked to identify and take into account direct and indirect costs, along with changes in staffing, structure, and service delivery methods. User-friendly Excel-based models were prepared, so that City staff can easily update in the future to determine the proper allocation of expenditures and ongoing full cost of City-provided services.

Willdan was re-selected to provide an update to the Cost Allocation Plan.

Client Contact: Matt Pressey, CPA, Budget & Finance Director 200 Lincoln Avenue, Salinas, CA 93901
Tel #: (831) 758-7420 | Email: [email protected]
Project Dates: February 2013 – March 2018 CAP Update Project Fees: $9,750 Utility Rate Studies
City of Lakeport, CA
Water and Sewer Rate Study
Willdan assisted the City of Lakeport with the development of a water and wastewater utility rate study. The scope of services included development of the financial plan, model, and reports, including the adjustment of the tiered rate structure. The City was in the position of needing potentially significant rate increases, so we worked collaboratively with them throughout the process to evaluate options for the financial plan to address the needs of the utilities, while balancing the impact on ratepayers.

Willdan team members worked closely with the City’s Proposition 218 legal counsel to update the City’s water rate structure while ensuring compliance with the applicable provisions of the California Constitution, as well as the San Juan Capistrano court decision.

Client Contact: Nick Walker, Assistant City Manager, Finance Director 225 Park Street, Lakeport, CA 95453
Tel #: (707) 263-5615 x 301 | Email: [email protected] Project Dates: February 2021 - October 2021 Project Fees: $44,750 City of Guadalupe, CA
Water and Wastewater Utility Rate Study
In 2021, Willdan worked with the City of Guadalupe to complete a utility rate study for its water and wastewater enterprises. The study included the development of a comprehensive financial plan and model, and the evaluation of alternatives for rate adjustments.

Willdan gathered and validated financial data for the project, including budget, historical financial results, and capital plans, evaluated adjustments to the base water and wastewater rate structures, prepared a comprehensive financial model, and presented alternatives and scenarios to City Staff.

We guided the City through the Proposition 218 process and completed a study report and developed and mailed Prop 218 notices. The study is complete and Public Hearing was conducted in January 2022 Client Contact: Shannon Sweeney, Director of Public Works 918 Obispo Street, Guadalupe, CA 93434
Tel #: (805) 356-3910 | Email: [email protected] Project Dates: February 2021 – January 2022 Project Fees: $43,575

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 4
City of Arvin
City of La Palma, CA
Water and Wastewater Utility Rate Study
In 2021, Willdan was re-selected to work with the City on its latest water and sewer rate study. This followed our previous work with the City in 2016/17. Our team worked with City Staff to evaluate alternatives for both utilities, particularly for water, where the City is preparing for the drilling and completion of a new well in eight years. We evaluate options to help them prepare for this key capital project. The study included the development of a comprehensive financial plan and model, the evaluation of alternatives for rate adjustments, and the preparation of reports and Prop 218 documents.

Willdan gathered and validated financial data for the project, including budget, fund balances, capital plans, historical financial results, and policy documents. The study also included the required cost-of-service analysis and entailed some adjustments based on changing customer usage characteristics.

We guided the City through the Proposition 218 process and developed and mailed Prop 218 notices. The study is complete, and the Public Hearing was conducted in April 2022.

Client Contact: Mike Belknap, Community Development Director 7822 Walker Street, La Palma, CA 90623
Tel #: (714) 690-3356 | Email: [email protected] Project Dates: Water and Wastewater Utility Rate Study, February 2015 – January 2016 Water and Wastewater Utility Rate Study, March 2021 – April 2022 Project Fees: $44,000 McKinleyville Community Services District, CA
Water & Sewer Rate and Capacity Fee Studies
MCSD’s connection fees had not been updated for a number of years and were relatively low in comparison to similar agencies. In addition, there were several new local development projects in the planning stages requiring MCSD to provide utility services; placing even greater demand upon existing facilities and possibly requiring expansion of existing facilities, or construction of new ones. Willdan worked with staff to compile a list of proposed capital improvements and their estimated cost and conducted an analysis of existing and proposed development within the district boundaries. Finally, the team analyzed existing demand on the current utility systems and calculated remaining capacity in order to develop fair and equitable capacity fees.

In addition to the capacity fee study, Willdan assisted MCSD in developing cost-based water and sewer rates in order to maintain requirements with state revolving fund loans.

Willdan recently assisted MCSD with a water and sewer rate study, where rates were successfully adopted for five years, for both utilities. The project included a rigorous evaluation of the CIPs for both utilities, testing of scenarios to understand the financial impacts on customers and mitigate rate increases. The District takes a conservative and aggressive approach to completing capital projects and accumulating reserves to protect itself from unanticipated events, so our modeling included multiple provisions to present, discuss and evaluate options.

The project also included the preparation of the comprehensive model and financial plan, which analyzed projections for both utilities for ten years, preparation of reports, preparation and mailing of Prop 218 notices, and presentation of results to the Board of Directors. Rates were successfully adopted in November 2022.

Client Contact: Patrick Kaspari, PE, General Manager
1656 Sutter Road, McKinleyville, CA 95519
Tel #: (707) 839-3251 | Email: [email protected] Project Dates: Sewer Rate Study, June 2014 – May 2015 | Capacity Fee Update, February – June 2016 Water and Wastewater Rate Study, April 2018 – November 2018 Water & Sewer Rate Study, December 2021 – November 2022 Project Fees: $47,930

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 5
City of Arvin
Cost Allocation Plan Project Experience
Provided in the table below, is a list of the public agencies in which similar services are currently in progress, or have been completed, in the previous five years, and conducted and managed from the Temecula office.

Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Amarillo, TX Cost Allocation Plan
City of Arcadia, CA Cost Allocation Plan and Comprehensive User Fee Study City of Arroyo Grande, CA
Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Aurora, CO Cost Allocation Plan and Comprehensive User Fee Study City of Barstow, CA Cost Allocation Plan
City of Bedford, TX Cost Allocation Plan
City of Belmont, CA Development Services User Fee Study City of Bellflower, CA
Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Benicia, CA Cost Allocation Plan and Comprehensive User Fee Study City of Blythe, CA Cost Allocation Plan and Comprehensive User Fee Study City of Brighton, CO Cost Allocation Plan
City of Burbank, CA Comprehensive User Fee Study
City of Canyon Lake, CA Comprehensive User Fee Study
City of Chino, CA Comprehensive User Fee Study, Cost Allocation Plan and Indirect Cost Rate Studies
City of Chino Hills, CA Cost Allocation Plan and Comprehensive User Fee Study, and Updates City of Claremont, CA Cost Allocation Plan and User Fee Study City of Clermont, FL Building & Safety Department User Fee Study City of Coalinga, CA User Fee and Rate Study
City of Colton, CA User Fee Study
City of Commerce City, CO Comprehensive User Fee Study and Development Impact Fee Study City of Coppell, TX Full Cost Allocation Plan
City of Cudahy, CA
Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of DeSoto, TX Comprehensive User Fee Study
City of Dinuba, CA Cost Allocation Plan & User Fee Study City of El Cerrito, CA Cost Allocation Plan and Community Development Department User Fee Study
City of El Monte, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Eastvale, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 6
City of Arvin
Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Encinitas, CA Development Services User Fee Study and Cost Allocation Plan City of Escondido, CA
Cost Allocation Plan, OMB Compliant Plan,
and Comprehensive User Fee Study
City of Fillmore, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Foster City, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study
City of Fountain Hills, AZ Comprehensive User Fee Study City of Fontana, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Fullerton, CA Community Development Department User Fee Study and Fire Department User Fee Study
City of Galt, CA Cost Allocation Plan and OMB Compliant Plan City of Georgetown, TX Cost Allocation Plan
City of Gilroy, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study
City of Goleta, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study
City of Hayward, CA Comprehensive Master User Fee Study, Full Cost Allocation Plan, and updates, and Rental Inspection Program Fee Analysis
City of Hollister, CA User Fee Study
City of Indian Wells, CA Comprehensive User Fee Study
City of Irvine, CA Overhead Cost Allocation, OMB Compliant Plan, Comprehensive User Fee Study and Building & Safety Fee Update City of Irwindale, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Kingsburg, CA Cost Allocation Plan
City of La Puente, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Laguna Hills, CA Comprehensive User Fee Study and Cost Allocation Plan Update City of Lake Elsinore, CA User Fee Study and Cost Allocation Plan and Updates City of Lindsay, CA Cost Allocation Plan, User Fee Study, and Impact Fee Analysis City of Lomita, CA
Cost Allocation Plan, OMB Compliant Plan,
User Fee Study and Development Impact Fee Analysis
City of Los Alamitos, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study
City of Los Altos, CA Cost Allocation Study, OMB Compliant Plan, and Comprehensive User Fee Study
City of Los Angeles, CA Building & Safety User Fee Study City of Los Banos, CA Full Cost Allocation Study, OMB Compliant Plan, and Comprehensive User Fee Study
City of Lynwood, CA User Fee Study and Cost Allocation Plan, and Updates City of Manteca, CA Cost Allocation Plan and Comprehensive User Fee Study

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 7
City of Arvin
Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Mesquite, TX Cost Allocation Plan and OMB Compliant Plan City of Mission Viejo, CA Comprehensive User Fee Study and Cost Allocation Plan, and Updates City of Missouri City, TX Full and OMB Compliant Cost Allocation Plan and User Fee Study City of Montebello, CA Cost Allocation Plan and User Fee Study City of Monterey Park, CA Cost Allocation Plan and User Fee Study, and Updates City of Monterey, CA Cost Allocation Plan and Indirect Cost Rate City of Murrieta, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan and Updates
City of Napa, CA Comprehensive User Fee Study, Full Cost Allocation Plan, and OMB Compliant Plan
City of National City, CA
Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study
City of Oroville, CA Cost Allocation Plan and Updates
City of Oviedo, FL Cost Allocation Plan
City of Palm Desert, CA Cost Allocation Plan and Comprehensive User Fee Study City of Patterson, CA
Comprehensive User Fee Study, Full Cost Allocation Plan, and OMB Compliant Plan
City of Petaluma, CA Cost Allocation Plan, User Fee Study, CIP Admin Rate & Work Order Rate Analysis, Hourly Overhead Rates, and ISF Allocation Study, and Updates City of Pismo Beach, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Pittsburg, CA User Fee Study and Cost Allocation Plan City of Pomona, CA Master Fee Schedule Update and Development Impact Fee Review City of Rocklin, CA User Fee Study
City of Richmond, CA
Cost Allocation Plan, OMB Compliant Plan,
User Fee Study and Development Impact Fee Study
City of Rosemead, CA
Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of St. Helena, CA
Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Salinas, CA Full Cost Allocation Plan and Comprehensive Fee Study City of San Anselmo, CA Cost Allocation Plan and Comprehensive User Fee Study City of San Bruno, CA
Comprehensive User Fee Study, Cost Allocation Plan,
and OMB Compliant Plan
City of San Dimas Cost Allocation Plan and Comprehensive User Fee Study City of San Fernando, CA
Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study, and Updates
City of San Jacinto, CA
Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of San Luis, AZ Cost Allocation Plan

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 8
City of Arvin
Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of San Marcos, CA Cost Allocation Plan, Indirect Cost Rate Studies and Comprehensive Citywide User Fee Study
City of Santa Ana, CA User Fee Study
City of Santa Cruz, CA Citywide Overhead Cost Allocation Plan, Santa Cruz Library Cost Allocation Plan, and Fleet and Facility Services Cost Allocation Plan
City of Signal Hill, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan
City of Soledad, CA User Fee Study
City of Stanton, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan
City of Surprise, AZ Full Cost Allocation Plan
City of Tamarac, FL Building & Safety Department User Fee Study City of Tulare, CA Comprehensive User Fee and Rate Study, Full Cost Allocation Plan, and OMB Compliant Plan
City of Tustin, CA Comprehensive User Fee Study
City of Twentynine Palms, CA
Comprehensive User Fee Study, Full Cost Allocation Plan, and OMB Compliant Plan
City of Upland, CA Cost Allocation Plan and Comprehensive User Fee Study City of Watsonville, CA
Comprehensive User Fee and Rate Study, Cost Allocation Plan, and OMB Compliant Plan, and Updates
City of West Hollywood, CA Cost Allocation Plan and User Fee Study City of West Sacramento, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study
City of Yucaipa, CA Comprehensive User Fee and Rate Study, Full Cost Allocation Plan, and OMB Compliant Plan
County of Mono, CA Comprehensive User Fee Study
County of Placer, CA Land Development Fee Study
County of San Benito, CA Comprehensive User Fee Study and Development Impact Fee Study Housing Authority of the
City of Alameda, CA Cost Allocation Plan and Updates
Housing Authority of the County
of San Bernardino, CA Cost Allocation Plan and Updates
Town of Apple Valley, CA Cost Allocation Plan
Town of Paradise Valley, AZ Master User Fee Study
Town of San Anselmo, CA Full Cost Allocation Plan and Comprehensive User Fee Study Town of Sunnyvale, TX Comprehensive User Fee Study
Town of Yucca Valley, CA Comprehensive User Fee Study

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 9
City of Arvin
Utility Rate Project Experience
Provided in the table below, is a list of the public agencies in which similar services are currently in progress, or have been completed, in the previous five years, and conducted and managed from the Temecula office.

Willdan Financial Services
Five Year Utility Related Experience
Client Project Description
City of Albany, CA Sewer Rate Study
City of Avenal, CA Water and Sewer Rate Study
City of Blythe, CA Water and Wastewater Rate Study
City of Brighton, CO Potable Water Rate Study
City of Calexico, CA Water and Sewer Rate Study
City of Claremont, CA Sewer Rate Study
City of Delano, CA Water, Sanitary Sewer, Solid Waste Utility Rate Study City & County of Denver, CO Sanitary Sewer & Storm Drainage Benchmarking and Storm Drainage Impact Fee Study
City of Dinuba, CA Water, Sewer, & Solid Waste Rate Study City of Durango, CO Water and Wastewater Rate Study
City of Fillmore, CA Water and Sewer Rate Study
City of Fruita, CO Sewer Rate Study
City of Grover Beach, CA Water, Wastewater, and Stormwater Financial Plan and Utility Rate Study
City of Guadalupe, CA Water and Sewer Rate Study
City of Hercules, CA Wastewater Financial Plan and Connection Fee Study City of Kingman, AZ Water and Sewer Rate Study
City of La Palma, CA Water and Sewer Rate Study
City of Lakeport, CA Water and Sewer Rate Study, and Connection Fee Study City of Lomita, CA Water Rate Study
City of Norwalk, CA Water Rate Study
City of Pinole, CA Wastewater Rate and Fee Study
City of Richmond, CA Wastewater Rate Study
City of Sebastopol, CA Water and Wastewater Fee Study
City of Soledad, CA Water Rate Study Consulting Services City of Tulare, CA Water and Wastewater Rate Study
City of Twentynine Palms, CA Sewer Treatment Facility Fair Share and Sewer Rate Analysis County of San Diego, CA Sewer Rate and Standby Charge Study McKinleyville CSD, CA Water and Wastewater Rate and Capacity Fee Study Mission Springs Water District, CA Water and Sewer Rate and Fee Study Monte Vista Water District, CA Connection Fee Study
Phelan Piñon Hills CSD, CA Water Rate and Fee Study
Rainbow Municipal Water District, CA Water and Wastewater Asset Cost and Capacity Fee Study Town of Apple Valley, CA Sewer Rate and Nexus Study
Town of Gilbert, AZ Water and Sewer Rate Study

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 10
City of Arvin
Insurability
With a rating of A+XV, Willdan maintains insurance from top-rated companies. Upon award of contract, a certificate of insurance and endorsements will be provided to the City of Arvin specific to this engagement. Provided below is a sample certificate of insurance.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 11
City of Arvin
3) Specialized Knowledge
Firm Summary
Willdan Financial Services, a California
Corporation, is an operating division within
Willdan Group, Inc. (WGI), which was founded in
1964 as an engineering firm working with local
governments. Today, WGI is a publicly traded
company (WLDN). WGI, through its divisions,
provides professional technical and consulting
services that ensure the quality, value and
security of our nation’s infrastructure, systems,
facilities, and environment. The firm has pursued
two primary service objectives since its
inception—ensuring the success of its clients and
enhancing its communities.

A financially stable company, Willdan has
approximately 1,500 employees working in more
than a dozen states across the U.S. Our
employees include a number of nationally
recognized Subject Matter Experts for all areas
related to the broadest definition of connected
communities — seven of whom are committed
to contribute their expertise throughout the
duration of City of Arvin’s Cost Allocation
Plan and Sewer Rate Study engagement.

We have solved economic, engineering and energy challenges for local communities and delivered industry-leading solutions that have transformed government and commerce. Today, Willdan is leading our clients into a future accelerated by change in resources, infrastructure, technology, regulations, and industry trends.

Willdan Financial Services Capabilities
Our staff supports our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise. Willdan assists local public agencies by providing the following services:

Willdan Financial Services
Services Provided
▪ User fee studies;
▪ Cost allocation plan studies;
▪ Development impact fee establishment and
analysis;
▪ Real estate economic analysis;
▪ Municipal advisory services;
▪ District administration services;
▪ Property tax audits;
▪ Economic development strategic plans;
▪ Utility rate and cost of service studies;
▪ Tax increment finance district formation and
amendment;
▪ Feasibility studies;
▪ Housing development and implementation strategies;
▪ Arbitrage and continuing disclosure services;
▪ Debt issuance support; and
▪ Long-term financial plans and cash flow modeling.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 12
City of Arvin
Firm Qualifications and Experience
Cost Allocation Plan Experience
Willdan Financial Services is a team of professionals who provide essential financial consulting services throughout the USA. Our direct experience as “agency staff” provides us with firsthand understanding of City operations and is uniquely useful in determining the full effort associated with service delivery and in developing a fee schedule that is easy to communicate and implement.

Willdan has provided User Fee Study and Cost Allocation Plan services to municipal clients for over 20 years. The project team has prepared user fee studies, cost allocation plans and OMB compliant cost allocation plans for clients throughout California, and the United States. Willdan’s proven and successful track-record conducting user fee studies and cost allocation plan services for public agencies dates to 1998. Since that time, we have developed the expertise to successfully integrate this service into the Financial Consulting Services group’s primary functions.

Willdan has extensive experience with a range of fee studies and the typical pros, cons, and challenges, both in implementation and management. Willdan will be bring its expertise to the City’s process of considering financial, practical, and policy issues in deciding on its future fee program. Our record of success within the industry provides assurance of the professionalism and capability we will bring to this engagement.

Utility Rate Experience
Willdan’s professional staff has provided professional consulting services, including financial planning; rate and cost-of-service studies; alternative and feasibility analyses; and operational and management studies for water, reclaimed water, wastewater, solid waste, and stormwater utility clients across the United States.

Additionally, Willdan staff are involved with the development of the rate-setting methodologies set forth in the American Water Works Association (AWWA) M-1 manual “Principles of Water Rates, Fees and Charges,” and the AWWA M-29 manual, “Water Utility Capital Financing.” Willdan is nationally
recognized for its expertise with
staff frequently being called upon
to speak or instruct on utility
financial matters, as subject matter
experts, including the AWWA Utility Management conference.

We are also deeply familiar with the procedural and substantive requirements of Proposition 218. Willdan staff (including Mr. Fisher, proposed as the principal-in-charge for this engagement) speak regularly to California industry groups such as the California Special Districts Association (CSDA) and the California Society of Municipal Finance Offices (CSMFO). Further, we recently completed a water and wastewater study for the City of Lakeport where the same team proposed for this engagement worked closely with a leading Proposition 218 law firm in the state to update their tiered water rate structure to be compliant with the requirements of Proposition 218 and the City of San Juan Capistrano decision.

We will bring this recent experience and insight to the City of Arvin.

At present Mr. Kevin Burnett is
involved in the current update
to the M1 manual.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 13
City of Arvin
Willdan staff is experienced in a broad range of utility planning services; and therefore, understand the importance of an approach that integrates elements of utility planning, engineering, and finance. Willdan team members possess considerable experience in utility rate and cost-of-service studies and have performed these services for hundreds of utilities throughout the country. Our team includes staff with public sector experience spanning 30 years, and staff on the forefront of utility ratemaking and rate-modeling. In addition, team members have held positions as finance directors, deputy city managers, and auditors, and therefore understand the financial, operational, and political realities faced by governmental staff and management; we craft solutions, which are sensitive to this.

Willdan will work with the City to identify, and prioritize operational and fiscal objectives, and match these to specific rate attributes; and use this information throughout the engagement to develop a comprehensive financial plan and design utility rates that effectively meet these goals. The culmination of our analysis will be rate policies that guide the rate setting process, and a financial management plan that develops projected system operating results for the utility for the forecasted period. Willdan will employ its proven interactive approach, coupled with advanced financial modeling techniques to design rates and a financial plan that meet established goals and performance criteria. These modeling techniques serve as a powerful decision-making tool and provide the City with genuine business solutions and recommendations as to the strategic direction of its utility.

During rate and financial planning projects we employ tools and techniques, which focus on consensus building among stakeholders to ensure the team understands the future financial implications of current management decisions. Our extensive project expertise is bolstered by our unique interactive financial planning process and model.

National and International Presence
For over 30 years, Willdan’s professional staff has provided utility rate, financial, economic, management and capital planning consulting services to utilities and governmental entities across the country. A representation of Willdan’s geographical client presence is depicted in the graphic below. Our client base extends from the south shores of Florida to the inside passage of Alaska, and for five sovereign nations.

Proven Professionals
The Team’s quality is often as important as the consulting firm’s reputation. Willdan is known for its personal, customized service. Our team will work with the City’s professional staff to provide the long-term service, that is our prime goal.

Willdan is the only firm providing these types of consulting services that also have a long history of providing contract staff support to public agencies for the delivery of municipal services.

Project Dedication
Willdan has assembled a project team of seven (7) subject matter experts within the Financial Consulting Services group, to conduct the City’s Cost Allocation Plan and Sewer Rate Study engagement.

This team has coordinated or participated in numerous public stakeholder and staff workshops regarding fees and cost of servicebased charges.

The Financial Consulting Services group is made up of over 20 professionals who can be called upon as needed; we are confident that our team possesses the depth of experience that will successfully fulfill the desired work performance.

Community Investment
Much of our success in developing effective programs and studies is due to our experiences in meeting with citizen / stakeholder groups and elected officials. Our ability to explain technical information in a concise, understandable manner is a fundamental reason for our high degree of success. Willdan staff takes the time to include and inform the Community.

Extensive Public Sector Experience
Willdan Group Inc. has delivered industry-leading financial, energy and engineering solutions that have transformed government and commerce for 58 years. Willdan Financial Services advises governments throughout the United States and abroad about financial and economic consulting. We serve all levels of government and collaborate with government staff, constituents, developers, officials, and other professional services firms.

Staff Continuity
Mr. Fisher has been assigned to serve as the City’s representative; he has been selected for this role due to his extensive experience, which includes the preparation and supervision of numerous fee studies. Willdan as a whole is composed of approximately 1,500 employees, including a cadre of public finance experts.

As needed, the team can recruit additional, qualified individuals from our employee roster to assist with the completion of this engagement to deliver the final materials on time and within budget. We do not anticipate staffing changes during the course of the project, however, should the situation arise, any change in team members will be discussed with and approved by the City prior to the change being made, to meet the needs of the City. In doing this, we will ensure the project stays on track and evolves, based upon current thinking and outside dynamics.

The team presented within this proposal
has worked collectively on numerous
projects, such as the one requested by the
City; an established work practice between
the team members has been forged, this
proven long-standing system has
benefited our clients.

It is important to note that
Mr. Fisher has been with Willdan
for more than 23 years, ensuring
City of Arvin of continuity and
dedication in staffing during the
completion of the project.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 15
City of Arvin
4) Personnel / Professional Qualifications
Project Roles
Our management and supervision of the project team is very simple: staff every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City, on time and on budget. With that philosophy in mind, we have selected experienced professionals for this engagement.

City of Arvin Project Team
Team Member Project Role Project Hours Responsibility to the Engagement Principal-in-Charge
Chris Fisher
Vice President/Director
Overall Engagement
Principal-in-Charge &
Utility Rate Study
Project Manager
42 ▪ Technical guidance;
▪ Project oversight;
▪ Quality assurance & control; and
▪ Meeting and presentation attendance.

Cost Allocation Plan Team
Tony Thrasher
Principal Consultant Project Manager 15
▪ Task oversight;
▪ Model development;
▪ Produce key elements of the analysis;
▪ Responsible for project deliverables;
▪ Report evaluation; and
▪ Meeting and presentation attendance.

Priti Patel
Senior Project Analyst Financial Analyst 40
▪ Collect, interpret, and analyze key data;
▪ Assistance with model development; and
▪ Report preparation.

Robert Quaid
Principal Consultant
Quality Assurance
Technical Advisor 3
▪ Third party reviewer; and
▪ Report evaluation.

Utility Rate Study Team
Michael Cronan
Senior Analyst Lead Financial Analyst 95
▪ Collect, coordinate, interpret, and analyze
key data;
▪ Model development;
▪ Responsible for project deliverables;
▪ Stakeholder outreach; and
▪ Report preparation.

Jeff McGarvey
Managing Principal
Quality Assurance &
Technical Support 6
▪ Quality assurance & control; and
▪ Ensures procedural integrity;
Kevin Burnett, MA
Senior Project Manager
Technical Advisor & Utility
Expertise 8
▪ Model and report review and technical
guidance;
▪ Review of project deliverables;
▪ Selected meeting and presentation
attendance.

Resumes
Resumes for Willdan’s project team are presented on the following pages. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 16
City of Arvin
Education
San Francisco State
University, Bachelor of
Science, Finance
Areas of Expertise
Cost of Service
Analyses
Multi-disciplinary Team
Management
Special District
Formations
Client Presentations
Proposition 218
Affiliations
California Society of
Municipal Finance
Officers
Municipal Management
Association of
Northern California
California Municipal
Treasurers Association
23 Years’ Experience
Chris Fisher
Principal-in-Charge/Project Manager
Mr. Chris Fisher, Vice President / Director of Willdan’s Financial Consulting Services group, will serve as the overall Principal-in-Charge for the City’s combined engagement and Project Manager for the Utility Rate Study. He will also share his extensive knowledge related to cost-of-service principles with members of the project team.

Mr. Fisher joined Willdan in April of 1999, and during that time has managed an array of financial consulting projects for public agencies in California, Texas, Arizona, Colorado, and Florida, coordinating the activities of resources within Willdan, as well as those from other firms working on these projects. He is one of the firm’s leading experts for special district financing related to public infrastructure, maintenance, and services, including public safety.

Select Related Experience
City of San Marcos, CA — Cost Allocation Plan, Indirect Cost Rate Proposals & Comprehensive User Fee Study: Mr. Fisher is the principal-in-charge for the City’s full and OMB compliant cost allocation plan, preparation of Indirect Cost Rate proposals, and Comprehensive user Fee Study engagement. The project is ongoing, and the User Fee Study is now underway.

City of Santa Cruz, CA – Cost Allocation Plan Update and Fully Burdened Hourly Rate Study:

Mr. Fisher is overseeing the City of Santa Cruz engagement; this is an ongoing study.

City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Mr. Fisher served as the principal-in-charge for the City’s cost allocation plan, OMB compliant plan and comprehensive user fee study engagement. Willdan has recently, through competitive bid, been re-selected to update the cost allocation plan.

Housing Authority of the County of San Bernardino – Cost Allocation Plan: Mr. Fisher is the principal-in-charge for the Authority’s full and OMB cost allocation plan engagement, and the ongoing update. Willdan was brought in and worked with the Housing Authority and HUD to respond to unfavorable OIG audit findings related to the Authority’s’ approach to the allocation of overhead costs. We developed a new Cost Allocation Plan and are currently working on an update to that plan. The initial work resulted in the clearance of the HUD findings with no penalty to the Housing Authority.

City of Irvine, CA — OMB Cost Allocation Plan and Comprehensive User Fee Study: Willdan completed a cost allocation plan and user fee study for the City of Irvine. Mr. Fisher managed and provided quality assurance to this project, ensuring the accuracy of the models, as well as the final reports. He also presented the results to the City’s Finance Commission and to the City Council.

The City of Irvine has recently re-engaged, through competitive bid, Willdan to complete an updated Cost Allocation Plan and User Fee Study.

City of Palm Desert, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Mr. Fisher is the principal-in-charge for the ongoing full cost allocation plan and user fee study.

Willdan’s work includes the gathering of necessary data and information, interviews with City Staff to identify overhead support services and how they are used and interviews to gather information related to fee-based services. We are also developing financial models to calculate overhead allocations and personnel rates and the full cost of services for which fees are charged. We are working with Staff to finalize cost recovery targets, prepare reports and present the results.

City of Murrieta, CA — Cost Allocation & OMB Compliant Plan and Comprehensive User Fee Study: Mr. Fisher served as the project manager on the City’s fee study. The primary objective for the cost allocation study was to ensure that general government costs were fairly and equitably allocated to appropriate programs and funds. The City has recently re-engaged Willdan to conduct an update to both studies.

City of Pomona, CA – Master Fee Schedule Update: Mr. Fisher was the principal-in-charge for the City’s master fee schedule update and update of the development impact fees. Mr. Fisher provided quality control and served as the primary contact with the City.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 17
City of Arvin
City of Lakeport, CA – Water and Wastewater Fee Study: Mr. Fisher led the engagement for Lakeport in the role of the principal-in-charge. The project included the completion of a comprehensive financial model, with multiple iterations and alternatives to address a situation where the City had not increased rates in several years. He led discussions with staff to outline the options and make adjustments as necessary. He also worked closely with the City and its legal counsel to update rates and to incorporate tiers while ensuring compliance with Proposition 218 and the San Juan Capistrano Court decision.

City of Grover Beach, CA – Water and Wastewater Rate Study: In the role of principal-in-charge, Mr. Fisher led the City’s utility rate study, which included the preparation of a comprehensive financial plan, along with cost-of-service analysis and development of updated rates. The financial plan prepared contained various options and scenarios for City Staff’s consideration, including shifting from a uniform water rate structure to either a two- or three-tiered structure. The City’s utilities were in relatively good health, so major increases were not recommended.

City of Sebastopol, CA – Water and Wastewater Rate Study: Mr. Fisher led the City of Sebastopol engagement in the role of the principal-in-charge. The objective of the study was to update water and wastewater rates to address capital needs for both utilities, and ensure rates provided adequate funding for ongoing operations and maintenance. Project work included development of a comprehensive financial model and preparation of rate scenarios for evaluation by staff and the City Council. Mr. Fisher and the project team presented the results to the City Council and instructed staff on the use of the model.

City of Guadalupe, CA – Water and Sewer Utility Rate Study: Mr. Fisher served as the principalin-charge for the City’s recent water and sewer rate study, providing technical assistance throughout the project, conducting working discussions with City Staff to evaluate financial and rate options, and coordinating the project. He oversaw the development of the comprehensive financial plan, and preparation of rate alternatives and analysis. This engagement included the development of a comprehensive financial model and updated water and sewer rates, including identification of the rates of comparable jurisdictions and a comparative rate and cost analysis.

City of Richmond, CA – Wastewater Rate Study: Mr. Fisher led the City of Richmond engagement as the principal-in-charge. The objective of the study was to prepare a comprehensive financial plan and updated wastewater rates to address funding for capital and operating needs.

The effort included development of a comprehensive financial model and report, and preparation of rate scenarios, including revised scenarios to address the impacts of the COVID pandemic, for evaluation by staff and the City Council. Mr. Fisher and the project team presented the results to the City Council, whereby rate increases were approved.

McKinleyville Community Services District, CA – Water and Wastewater Capacity Fee Study:

Mr. Fisher served as principal-in-charge of this project. The prior connection fees had not been updated for a number of years and were relatively low in comparison to similar agencies. In addition, there were several new local development projects in the planning stages requiring the District to provide utility services; placing even greater demand upon existing facilities and possibly requiring expansion of existing facilities, or construction of new ones. Willdan worked with staff to compile a list of proposed capital improvements and their estimated cost and conducted an analysis of existing and proposed development within the District’s service boundaries.

C. Fisher
Resume Continued

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 18
City of Arvin
Education
Bachelor of Science
in Economics;
California State
Polytechnic University,
Pomona
Areas of Expertise
Cost Allocation Plans
Fiscal Analysis for
User Fees and Rates
District Administration
Services
Utility Rate Studies
13 Years’ Experience
Tony Thrasher
Cost Allocation Plan Project Manager
Due to his cost allocation and user fee analyses experience, Mr. Tony Thrasher has been selected to serve as Project Manager for the Cost Allocation Plan portion of the City’s engagement.

Mr. Thrasher is a Principal Consultant within the Financial Consulting Services group, whereby his responsibilities include managing projects and conducting fiscal analyses for cost allocation plans, user fees, and utility rate studies.

Mr. Thrasher’s prior employment was as a financial analyst working in bond, equity, and mortgagebacked security markets for Wells Fargo Bank, Bank of New York Mellon, and Deutsche Bank. His experience includes portfolio accounting, differential analysis, and forecasting.

Select Related Experience
City of San Marcos, CA — Cost Allocation Plan, Indirect Cost Rate Proposals & Comprehensive User Fee Study: Mr. Thrasher is the project manager for the City of San Marcos’ full and OMB compliant cost allocation plan, preparation of Indirect Cost Rate proposals, and Comprehensive User Fee Study engagement. He is instrumental in model development which contained all City personnel and expenditures broken down into the ICRP tables. The project is ongoing, and the User Fee Study is now underway.

City of Monterey, CA — Cost Allocation Plan: Mr. Thrasher is the technical project manager for the City of Monterey Cost Allocation Plan engagement and updates. He is assisting in the development of the City’s general overhead allocation plan, whereby he applies his expertise on alternative allocation methods.

City of Santa Cruz, CA – Cost Allocation Plan Update and Fully Burdened Hourly Rate Study:

Mr. Thrasher is serving as the project manager for the City of Santa Cruz’ engagement; this is an ongoing study.

Housing Authority of the County of San Bernardino — Cost Allocation Plan: Mr. Thrasher served as the project manager for the completion of the Authority’s full and OMB cost allocation plan and is currently completing an update to that plan. This engagement was triggered by OIG findings that questioned the Housing Authority’s cost allocation methods. The project resulted in a new cost allocation plan approved by the OIG and HUD and clearance of the audit findings with no penalty or returned grant funding.

City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Mr. Thrasher was the project manager for the City’s cost allocation plan, OMB compliant plan and comprehensive user fee study engagement. Willdan has recently, through competitive bid, been re-selected to update the cost allocation plan.

City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Mr. Thrasher is the technical project manager for the City’s Cost Allocation Plan and Comprehensive User Fee Study. He is working directly with the City contact throughout the engagement.

City of Irvine, CA —Cost Allocation Plan and Comprehensive User Fee Study: Serving as the project’s project manager and lead analyst, Mr. Thrasher oversaw the development of the model and led analytical efforts; and designed micro-level allocation models to ensure full-cost recovery for public safety, public works, community development, community services, and administrative departments. The City of Irvine has recently re-engaged, through competitive bid, Willdan to conduct a Cost Allocation Plan and User Fee Study.

City of Palm Desert, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Mr. Thrasher is currently serving as the technical project manager for the City’s full cost allocation plan and user fee study. He is directly responsible for the creation of both models for the study, gathering and verification of the data, managing the analysts working to support him and presenting results to the City.

City of Mission Viejo, CA — Cost Allocation Plan and User Fee Study: Mr. Thrasher was assigned to work with the City on this project, providing analytical support, gathering data, working with staff to make refinements, and developing cost allocation and fee models to ensure full-cost recovery for building and safety, planning, community development, and public works departments

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 19
City of Arvin
Education
Bachelor of Arts;
Business
Management,
Information Systems
and
International Business,
University of Cincinnati
Areas of Expertise
Cost Allocation Plans
User Fee Studies
Proposition 218
9 Years’ Experience
Priti Patel
Cost Allocation Plan Senior Financial Analyst
Ms. Priti Patel is a Senior Analyst within the Financial Consulting Services group, whereby she supports project managers in conducting utility rate analyses, fee studies, cost allocation plans, monitoring Proposition 218 compliance, and forming special districts.

Coordinating and conducting activities associated with Cost Allocation Plans and User Fee Studies, including database integration and manipulation, revenue and expenditure analyses, and documentation preparation are just some of Ms. Patel’s duties. With these duties, she interacts with clients on a regular basis.

Ms. Patel joined Willdan as an analyst with the District Administration Group, while with DAS she performed research and analysis needed for local government financial issues related to district administration, including document data entry and updating, database management, research, and report preparation. She also provided general information on questions pertaining to Assessment Districts and special taxes (such as Mello-Roos Pools), as well as the status of property delinquencies.

Select Related Experience
City of San Marcos, CA — Cost Allocation Plan, Indirect Cost Rate Proposals & Comprehensive User Fee Study: Ms. Patel is the financial analyst assigned to the City of San Marcos’ engagement to complete a full and OMB compliant cost allocation plan and preparation of Indirect Cost Rate proposals engagement.

City of Monterey, CA — Cost Allocation Plan: Ms. Patel is serving as the financial analyst for the Monterey Cost Allocation Plan and updates. In this role she is responsible for obtaining updated information and data, reviewing overhead structure and functions, and preparing the updated model and report. The City originally hired Willdan for the creation of the first Cost Allocation Plan and has hired us for multiple updates since then.

City of Santa Cruz, CA – Cost Allocation Plan Update and Fully Burdened Hourly Rate Study:

Ms. Patel is assisting the project manager in this ongoing study.

City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Ms. Patel provided support to senior team members in the preparation of a cost allocation plan, OMB compliant plan and comprehensive user fee study. Willdan has recently, through competitive bid, been re-selected to update the cost allocation plan.

Housing Authority of the County of San Bernardino — Cost Allocation Plan: Ms. Patel was the assigned financial analyst that assisted the principal-in-charge and project manager with the completion of the Authority’s full and OMB cost allocation plan.

Rainbow Municipal Water District, CA — Cost Allocation Plan and OMB Compliant Plan:

Ms. Patel provided analytical support to ensure that the District’s Cost Allocation Plan and OMB compliant cost allocation model and plan fairly allocated general and administrative overhead service costs to appropriate activities and departments.

City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Providing analytical support in the preparation of a cost allocation plan and comprehensive fee study, Ms.

Patel worked to identify and take into account direct and indirect costs, along with changes in staffing, structure, and service delivery methods. She also assisted in the preparation of userfriendly Excel-based models that City staff can easily update in the future to determine the proper allocation of expenditures and ongoing full cost of City-provided services.

City of National City, CA — Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study: Ms. Patel provided analytical support in the preparation of this study, her primary duties included development of the models, finalizing model figures and results, and generating reports.

City of Laguna Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Ms. Patel provided analytical support in the preparation of a full cost allocation plan and comprehensive fee study for the development of a master list of fees.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 20
City of Arvin
Education
Bachelor of Science,
University of Southern
California
Areas of Expertise
Fiscal Analysis for User
Fees and Rates
Cost Allocation Plans
Acquisition Audit
Services
Statutory Financial
Reporting
Fund Audits
Quality Review of
Community Facilities,
Lighting & Landscaping,
and Assessment
Districts
Affiliations
California Society of
Municipal Finance
Officers
35 Years’ Experience
Robert Quaid
Cost Allocation Plan Quality Assurance/Technical Advisor With his 35 years of extensive experience in public financing, Mr. Robert Quaid has been selected to provide quality assurance/quality control in the role of technical advisor. In his position as a Principal Consultant at Willdan, Mr. Quaid provides project management, procedural support, technical support, and quality review for Willdan’s District Administration group, as well as the Financial Services Consulting group specific to cost allocation plans, user fee studies, and special financial analysis.

Prior to joining Willdan, Mr. Quaid worked in the private industry of real estate accounting and finance. He began his career with the public accounting firm formerly known as Haskins & Sells (currently known as “Deloitte & Touche”). His experience includes financial statement analyses, asset administration, computer conversion, and reporting to the Securities and Exchange Commission for several public real estate partnerships. In 1979, Mr. Quaid became a licensed California CPA.

Select Related Experience
City of Thousand Oaks, CA — Cost Allocation Plan: Mr. Quaid served as project manager for the development of an OMB A-87 compliant cost allocation plan model using fiscal year actual costs as the basis for the allocations. He was responsible for the preparation of the Cost Allocation Plan report and provided cost allocation model training to City staff.

Cities of Fontana, Gardena and Hawthorne, CA — Cost Allocation Plan Projects: For each of these cities, Mr. Quaid served in the role of task manager for the development of an OMB A-87 compliant cost allocation plan model using Microsoft Excel. He was responsible for the preparation of the cost allocation plan report and trained City staff on how to use the cost allocation model.

City of Cathedral City, CA — Comprehensive User Fee Study: Mr. Quaid served as project manager for a user fee study that required updating fees for Planning, Engineering, Building, Police, Fire, City Clerk, and Finance.

Mr. Quaid has provided Quality Assurance and Quality Control to multiple clients. Provided below are a few examples of clients in which services have been provided in the previous five years. ▪ City of Aurora, CO
▪ City of Bedford, TX
▪ City of Belmont, CA
▪ City of Cerritos, CA
▪ City of Claremont, CA
▪ City of Coalinga, CA
▪ City of DeSoto, TX
▪ City of El Cerrito, CA
▪ City of Galt, CA
▪ City of Hayward, CA
▪ City of Indian Wells, CA
▪ City of Mesquite, TX
▪ City of Missouri City, TX
▪ City of Monterey, CA
▪ City of Petaluma, CA
▪ City of Rocklin, CA
▪ City of St. Helena, CA
▪ City of San Fernando, CA
▪ City of San Bruno, CA
▪ Sacramento Public Library, CA
▪ City of Salinas, CA
▪ City of Union City, CA
▪ City of Watsonville, CA
▪ City of Yucaipa, CA

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 21
City of Arvin
Education
Bachelor of Arts
and Science;
University of Central
Florida
Areas of Expertise
Utility Rate Studies
User Fee Studies
Financial Forecast
Modeling
5 Years’ Experience
Michael Cronan
Utility Rate Study Lead Financial Analyst
Mr. Michael Cronan is a senior analyst with five years of experience within Willdan’s Financial Consulting Services group. His primary function is to support project managers and senior analysts with utility rate studies. He specializes in analysis for a variety of clients, including cities, water districts, and public utilities.

Select Related Experience
City of La Palma, CA — Water and Wastewater Utility Rate Study: Mr. Cronan was assigned to the La Palma engagement as the lead financial analyst. He worked directly with staff at the City to conduct financial analysis, which included the evaluation of alternatives for rate adjustments that incorporated different capital funding scenarios and operating budget assumptions, as well as the preparation of reports and Prop 218 documents. He was also instrumental in the development of the financial model.

City of Richmond, CA — Wastewater Rate Study: Mr. Cronan served as the project analyst and provided support for the City’s rate study. He gathered and verified data for the project manager and lead project consultant and played a significant role in the development of the customer database and financial model.

City of Lakeport, CA — Water and Sewer Rate Study: Mr. Cronan provided analytical support to the senior project team members and led the development of the financial model as the project analyst for the City’s utility rate study. He worked directly with staff at the City to evaluate financial plan alternatives, particularly for sewer where years of deferred rate increases, and a significant capital plan required careful consideration. He also led the revamp of the City’s cost-of-service approach, working closely with a leading Prop 218 attorney to ensure rates were compliant with State law.

McKinleyville Community Services District, CA — Water and Sewer Utility Rate Study:

Willdan was retained to update the models, develop the CSD’s water and sewer rates and assist with the required Proposition 218 noticing process. Mr. Cronan provided analytical support to the project’s senior team and provided the same support for the ongoing update to the previous study.

City of Claremont, CA — Sewer Rate Study: Mr. Cronan provided analytical support for the City’s sewer rate study. He gathered and verified data for the project manager and principal consultant.

City of Twentynine Palms, CA — Sewer Treatment Facility Fair Share and Sewer Rate Analysis: Mr. Cronan provided analytical support in the development of the model to support to the project’s senior team on the City of Twentynine Palms’ sewer treatment facility fair share analysis. This study also included a sewer rate study, specific to the new treatment plant and its customers.

City of Denver, CO — Sanitary Sewer and Storm Drainage Benchmarking and Storm Drainage Impact Fee Study: Mr. Cronan served as the lead analyst on a benchmarking study to review and compare the City’s current rate structures to those of other front range and national utilities. The intent of the study was to identify potential areas for refinement to the City’s current rate structures. Mr. Cronan also served as the lead analyst for developing and implementing first time storm drainage impact fees for the City.

City of Fruita, CO — Sewer Rate Study: Mr. Cronan provided analytical support to the project manager and principal consultant for the City’s comprehensive sewer rate study. The study sought to determine the costs of operating the utility for a five-year period while equitably recovering costs from each customer class. An evaluation of changing the current flat rate approach for residential customers to a volume based average winter consumption approach was also evaluated.

City of College Station, TX — Electric Rate Study: Mr. Cronan was the analyst for the City’s electric retail rate and cost-of-service study.

GRU/Gainesville, FL — Combined Utility Rate Project: Mr. Cronan assisted senior project staff on Willdan’s recent combined utility rate project conducted for Gainesville Regional Utilities, in Gainesville, Florida and included a comprehensive revenue requirement, cost of service analysis, and rate design for their electric, water, wastewater, and natural gas utility systems.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 22
City of Arvin
Education
Bachelor of Science,
Finance, University
of Central Florida
Areas of Expertise
Alternatives Analysis
Strategic Planning
Rate Studies
Cost of Service
Studies
Revenue Bonds
Feasibility Analyses
Capital Funding
Acquisitions
Valuation Analyses
Affiliations
American Water
Works Association
The Water
Environment
Federation
The Utility
Management
Conference
The WateReuse
Foundation
31 Years’ Experience
Jeffrey McGarvey
Utility Rate Study Technical Support/Quality Control
Mr. Jeffrey McGarvey is a Managing Principal in Willdan’s Financial Consulting Services group, and for more than 31 years, has provided professional consulting services to municipal water, wastewater, solid waste, electric, and natural gas utilities throughout the country. He possesses a broad range of municipal utility systems experience, including special expertise in complex alternatives analyses; utility rate analyses; utility valuations and acquisitions; regionalization and consolidation studies; debt issuance support, such as the preparation of financial feasibility analyses associated with revenue bond issuance; capital financing analyses; strategic planning; rate and regulatory assistance; and instituting financial mechanisms to provide for the sufficient recovery of operating and capital costs.

Mr. McGarvey has extensive experience in utility rates and cost of service studies for water, wastewater, solid waste, electric and natural gas systems. This experience generally relates to performing budget analyses, customer and usage analyses, development of revenue requirements, cost of service allocations and sensitivity analyses related to the implementation of rate structures designed to promote desired usage characteristics.

Select Related Experience
Phelan Piñon Hills Community Services District (Phelan, CA) – Water Rate and Fee Study:

Mr. McGarvey served in the role of technical advisor for this comprehensive revenue requirement analysis and financial plan, which provided targeted rate and fee structure recommendations. A comprehensive proforma financial analysis was prepared focusing on primary rate and financial objectives. The analysis resulted in rate structures that provided adequate revenue to fund operations; and created a secure and reliable funding source for future capital improvements.

McKinleyville Community Services District, CA – Water and Wastewater Capacity Fee Study:

Mr. McGarvey provided technical support, as well as quality assurance/quality control, to this engagement. The prior connection fees had not been updated for a number of years and were relatively low in comparison to similar agencies. In addition, there were several new local development projects in the planning stages requiring the District to provide utility services; placing even greater demand upon existing facilities and possibly requiring expansion of existing facilities, or construction of new ones. Willdan worked with staff to compile a list of proposed capital improvements and their estimated cost and conducted an analysis of existing and proposed development within the District boundaries. Finally, the team analyzed existing demand on the current utility systems and calculated remaining capacity in order to develop fair and equitable capacity fees.

Mission Springs Water District, CA – Comprehensive Water and Wastewater Financial Plan and Rate Study: Mr. McGarvey provided technical support for the District’s comprehensive financial plan and rate study. He was also responsible for quality control. A key focus of this study was on the need to address the Chromium 6 detected in the groundwater. Willdan developed a comprehensive financial model, and updated water and wastewater rates. Mr. McGarvey oversaw the development of the financial model prepared for the District.

City of Flagstaff, AZ – Water, Wastewater and Reclaimed Water Rate Study: Mr. McGarvey served as the technical advisor of the City of Flagstaff’s utility rate analysis. In the wake of six water main breaks, the City was faced with decreasing revenues and increasing capital and operational costs. The proposed rates developed by Willdan reversed the City’s trajectory of a falling operating reserve and provide the City with sufficient revenue to cover existing and future operations, maintenance, and debt service; all while being financially prudent and responsive to the concerns of the City’s Water Commission. The proposed residential inclining block rate appropriately spreads the burden of increased costs based on a comprehensive analysis of customer demands.

City of Durango, CO – Water and Wastewater Rate Study: Mr. McGarvey led the preparation of a long-term financial plan, cost of service-based rates and updated plant investment fees. The City needs to perform $50 million in improvements to the wastewater treatment plant to comply with State wastewater treatment standards and to provide available capacity for new growth. A balanced financial plan was developed incorporating rate increases and anticipated debt to fully fund requirements and minimize customer impact.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 23
City of Arvin
Kevin Burnett, MA
Utility Rate Study Technical Advisor & Utility Expertise Mr. Kevin Burnett is a senior project manager with 22 years of utility analysis experience, possessing extensive experience with rate and cost of service studies for retail and wholesale use.

He has been selected to serve as Project Manager for the Utility Rate Study portion of the City’s engagement. His project experience includes water, wastewater, reuse, and stormwater rate studies using state-of-the-art utility financial planning tools. He has developed both short and longterm financial plans for utilities of all sizes – including regional water authorities and regional wastewater providers with individual wholesale service contracts.

Select Related Experience
City of Sebastopol, CA – Water and Wastewater Fee Study: Mr. Burnett served as the lead project consultant for the City’s water and wastewater utility rate study. The objective of the study was to update utility rates to address capital needs for both utilities, and ensure rates provided adequate funding for ongoing operations and maintenance. Mr. Burnett led the development of the financial model and scenarios for the City and presented the report and results to the Council.

City of Grover Beach, CA – Water and Wastewater Rate Study: Mr. Burnett led the City’s water and wastewater rate study, which included the preparation of a comprehensive financial plan, along with cost-of-service analyses and development of updated rates. He presented the financial plan and outlined the various options and scenarios for City Staff’s consideration, including shifting from a uniform water rate structure to a two-tiered structure.

City of Calexico, CA – Water and Sewer Rate and Capacity Fees Study: As lead project consultant, Mr. Burnett conducted a water and sewer rate study for the City of Calexico. Their previous rate study was dated, and the City wished to complete a new study to meet future revenue requirements and planned substantial capital improvement projects, and to ensure new rates followed Proposition 218 cost of service requirements. The City also requested the establishment of capacity fee charges. Mr. Burnett created the financial and rate model, completed the technical analysis, and worked through financial scenarios and options with City Staff. He was also responsible for the preparation of the report and other study documents.

City of Tulare, CA – Water and Wastewater Rate Study: As project manager Mr. Burnett led the model and rate development, in addition to facilitating presentations to both the City Council and Public Utilities Board in preparation of the City’s water and wastewater utility rates. He generated updated rate structures for the City, which met the requirements of Proposition 218.

City of Avenal, CA – Water and Sewer Rate Study: Served as project manager for the City’s rate study. The objectives of this analysis were to develop a tiered rate structure for customers that: 1) generate sufficient revenues to meet operating and capital expenses associated with water in response to the rising cost of purchased water; 2) technically defensible and equitable across customer classes (Proposition 218 compliant); and 3) developed within spreadsheet models that are user-friendly and can be easily updated by City Staff in the future.

City of Fillmore, CA – Water and Sewer Rate Study: The City’s rates were outdated and not generating sufficient revenue needed to operate, maintain, and enhance the system. As project manager, Mr. Burnett led the Willdan Team and worked closely with the City, to redesign the rate structure. Willdan was responsible for the model and rate development, and generation of multiple alternative rate structures.

City of Dinuba, CA – Water, Sewer, and Solid Waste Rate Study: The City had undergone a period of declining net revenues and an inability to fully fund capital repair and replacement needs.

In the role of lead analyst, Mr. Burnett worked with City Staff to update the rate structures to ensure class cost of service-based water rates that promote conservation and adhere to Proposition 218 requirements. Multiple water and sewer financial plans were developed and presented to Council for consideration.

Education
Master of Arts,
Economics, State
University of New
York, Buffalo
Bachelor of Arts,
University of
Waterloo, Ontario
Areas of Expertise
Financial Planning
Cost of Service
Studies
Rate Design
Impact Fees
Bond Feasibility
Affiliations
American Water
Works Association
22 Years’ Experience

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 24
City of Arvin
5) Total Projected Cost of the Project
Scope of Services
Willdan is confident that we can meet the City of Arvin’s request for services for Cost Allocation Plan and Sewer Utility Rate study services.

Cost Allocation Plan Project Understanding
Over the past several years, many public agencies have responsibly focused on the many challenges created by the prior recession and the Covid pandemic. Through the course of reorganizing staff functions and departments, shifting resources, implementation of new processes and/or new software, and/or reducing staff, it is important to continually revisit the manner and methodology by which indirect overhead costs are distributed to the operating departments and, as appropriate, other chargeable funds and programs (e.g., enterprise funds, grant programs, capital programs internal service funds, etc.).

The City needs a cost allocation plan that will ensure the fair and equitable allocation of internal service costs to appropriate external-facing operations such as: enterprises, special revenue funds, departments, and programs, while utilizing tailored and well thought out allocation factors that reflect current staffing and processes.

We will prepare a full CAP, based upon the City’s 2022/23 budget or actual financial data, as well as an OMB CAP that will be compliant with 2 CFR Part 200 Federal regulations related to cost reimbursement and grant funding, formerly known as OMB A-87 and 2 CFR Part 225 guidelines, which have now been superseded by the Omni Circular. The new circular did not completely overhaul the guidelines, and the intent is still the same, but it did add new limitations to consider and incorporate into a compliant CAP.

The end-product will include a user-friendly Excel-based model which City Staff will retain, and which can be easily updated in the future to determine the proper allocation of expenditures. Most importantly, we will ensure that the results and recommendations are clear and understandable, defensible, and easily implementable.

The purpose of this engagement is to establish the CAP
methodology and model that ensures the City is properly allocating costs associated with indirect overhead support services, such as Accounting, Finance, Purchasing, Human Resources, among others, to identified operating departments, as well as enterprise and other chargeable funds, internal service funds, and projects; to ensure that those organizations can account for the true cost of providing services, including indirect overhead.

We will also develop updated Indirect Cost Rates for specific purposes and hourly overhead rates for staff in general. We will work closely with City Staff in identifying the functions of indirect staff and the proper balance of appropriate allocation factors for the City. To achieve cost recovery objectives, the City must have a method of identifying and distributing administrative overhead costs that is fair, comprehensive, well documented, and defensible. This cost allocation plan will enable the City to achieve this goal.

For this study, we will meet directly with departmental representatives at the City, to discuss the approach and process for the study. Discussions will include ways to combine tasks and efforts among the Cost Allocation Plan components to maximize efficiencies and ensure adherence to specified timelines.

For a successful and effective engagement, it is important to have a thorough understanding of specific City policies and objectives, the structure and organization of the City and the relationships between the central and operating departments, as well as internal service funds, or other programs or projects to which overhead can be defensibly allocated.

We will review the City’s existing plans and structure, to ensure that general government costs are fairly and equitably allocated to the appropriate programs and funds. This effort will ensure that each enterprise and program bears its fair share of general governmental expenses.

Willdan possesses the resources, practical experience, creative thinking, and collaborative consulting skills necessary to complete this important project.

Public Engagement
Our models and project approach are geared toward delivering our work on schedule and presenting our analysis results at public meetings and City Council workshops. The Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by non-finance-oriented individuals and facilitates discussion.

Rather than a costly and inflexible
proprietary software, which can require
expensive licensing fees, Willdan builds
models utilizing Excel, from the ground up,
employing the City ’s budget as the gauge.

This model, which is then the City’s to retain,
gives City Staff the control to make on-thefly adjustments and updates.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 25
City of Arvin
Our proposed project team for this engagement have coordinated or participated in numerous public and staff workshops regarding fees and cost of service-based charges. As previously mentioned, our objective is to provide useful, detailed information to the City Council and City Staff, necessary to make important decisions. Our experience ensures that we can meet this objective.

User Friendly Models and Reports
Willdan prides itself on creating user-friendly Excel-based models that the City can retain and conducting our analysis and developing the model collaboratively with City Staff. With City staff’s immediate input and collaboration, Willdan will design an extremely flexible, intuitive Excel-based model. In the future, as the City assumes new responsibilities, modifies existing processes, and/or eliminates unnecessary services or programs, the model will be capable of adding or deleting funds, objects, departments, programs, staff positions, and activities. Willdan understands that issues facing the City are unique; consequently, we will design our model to match your immediate and desired needs to ensure that end-results exceed staff expectations.

This model is then the City’s to retain, after our services are completed, and allows for the creation of revenue projections, highlighting potential new revenues, and levels of subsidy.

A key element of these types of studies are presenting results and recommendations in a straightforward manner, which allows the City Council and City Staff to confidently make policy decisions and understand the impacts of those decisions. Rather than using an inflexible proprietary software program, we construct our model from the ground up, as previously discussed, mirroring the City’s budget format wherever possible.

As a result, the information contained in our model is easy for City Staff to interpret, and the familiar software ensures ease of navigation. As the model is being designed and constructed, we will work together with City Staff to determine the best and most effective features to include. After the project is completed, we will provide training, so that your staff can independently and efficiently evaluate the effects of changes in certain factors as the City moves forward.

Utility Rate Study Project Understanding
The following project approach and scope of services is based on Willdan’s current understanding of the City of Arvin’s (“City”) needs and objectives for a sewer utility rate study, and the services outlined within the Request for Proposals (“RFP”). A final scope and schedule will be determined following further discussions with City staff.

Our objective is to provide Staff and the Council with the information it needs to fully understand the sewer utility current and projected financial condition, evaluate options for moving forward, and make informed decisions based on this process.

The intent of the study is to independently evaluate the City’s current utility rates, determine whether sufficient revenue is being collected for utility activities, including operations, maintenance, capital projects, repayment of debt, funding of reserves, and as appropriate, develop an updated schedule of rates for the utility that is simple, defensible, equitable, and most importantly, structured to meet the future financial needs of the City’s sewer utility. The proposed rate structure must adequately fund the ongoing operating, maintenance and capital improvement needs of the utility.

The City of Arvin provides sewer service to a population of about 19,669, through approximately 4,000 connections and levies annual sewer rates for its customers on the Kern County secured property tax roll. A brief review of the most recent financial statements available on the City’s website provides insight into the financial condition of the utility.

According to information in the audited financial statements for the Fiscal Year (FY) ending June 30, 2021, the sewer utility had operating revenue of $3.0M, compared to operating expenses of $2.48M, for a net positive result of $645K.

Unrestricted cash also appeared strong as of this report. Audited financials were not yet available for FY ending June 30, 2022, but the Annual Operating Budget for Fiscal Year 2022/2023 provides some insight into the results for the 2021/22 FY, as well as projections for the 2022/23 Fiscal Year. According to the budget document, in FY 2021/2022, the sewer utility had revenue of $2.99M, compared to expenses of $3.2M, for a loss of $226K. The Budget projects Fiscal Year 2022/23 revenue will be $3M, compared to expenses of $2.75M. The capital plan laid out in the budget document shows $3M for the replacement and reline of wastewater pond #3. The financial plan and scenarios that we create for this study will consider each of these factors to support the development of a sustainable five-year plan for the sewer utility.

The model will be developed
to allow the City to run “whatif” scenarios to address possible changes in staffing
levels, working hours, etc.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 26
City of Arvin
The project will entail three primary phases. The first is the review and evaluation of the previous rate study and development of objectives, development of a comprehensive financial plan, with projections for the next five years for the purposes of recommending rate adjustments extended out to ten (10) years to provide a longer view of potential utility needs, particularly capital projects. The purpose of the financial plan is to arrive at the required revenue for the utility, which serves as the basis for recommendations going forward, and the development of updated rates, if necessary. Then, once the results of the financial plan are reviewed with City staff, we will proceed with the cost-ofservice analysis and development of rates, and preparation of a report.

Clearly all of the above-mentioned factors require a comprehensive and detailed look at the utility.

Our approach and model incorporate a robust Capital Plan Analysis to ensure the utilities will be best equipped to address upcoming projects and their funding over the next five years, while maintaining required debt service coverage and appropriate reserve fund balances.

When developing the financial plan, it will be important to take into consideration updated costs of operating and maintaining the systems, as well as planned capital projects and their funding sources over the next five to ten years.

We will produce financial analyses and recommendations to account for these critical needs, while balancing them with the potential impact on customers. Willdan will develop a comprehensive financial plan that considers updated forecasts for sales, operating expenses, as well as capital expenses, and provides for:
▪ Sufficient and stable revenue for operations and routine maintenance; ▪ Coverage for direct and indirect costs;
▪ Adequate debt service coverage for existing and/or proposed debt; ▪ Sufficient funds to support new debt issuance, if necessary; ▪ Accumulation and maintenance of appropriate reserves; ▪ Anticipated and routine repair and replacement of existing aging pipelines and infrastructure; and ▪ Major and minor capital projects.

This financial plan will serve as the basis for a full cost of service analysis and ultimately the development of recommendations for updated rates. The cost-of-service analysis will be conducted to ensure any new recommended rates comply with the requirements of Proposition 218 and recent legal decisions.

Our recommendations and proposed structure(s) will be developed in compliance with Proposition 218 requirements and recent court decisions, including the San Juan Capistrano case. We have worked recently with leading Proposition 218 legal experts to develop tiered rates and supporting analysis to address these factors, allowing us to bring this insight to the City of Arvin’s study.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 27
City of Arvin
Cost Allocation Plan Methodology
Study Approach
The purpose of this cost allocation plan engagement is to ensure that the City is maximizing the allowable recovery of indirect overhead costs from identified operating departments, as well as enterprise and other chargeable funds.

A sound cost allocation plan is also a foundational element in the development of internal hourly rates, including position billing rates. We will work closely with staff in identifying the proper balance of allocation factors appropriate for the City so that the City has a method of identifying and distributing administrative costs that is fair, comprehensive, well documented, and fully defensible.

We will work collaboratively with City Staff in the development of this model to verify that our assumptions are sound and accurate, given specific City characteristics. Further, we will ensure that appropriate allocation factors are selected for various City functions and enterprises to ensure that the overall allocation strategy is tailored for City of Arvin.

Cost allocation studies should be simple in concept and form. Our plans are not over-complicated, can be easily understood by non-finance-oriented individuals, and are readily presentable to elected officials, appointed finance committees and the public.

We deliberately design our cost allocation models to quickly and easily transition from a simple model to a progressively more inclusive plan. The logical step-by-step presentation of our plans fosters confidence in their results and facilitates adoption and implementation.

The allocation models utilize an iterative method which is the most accurate allocation methodology. Unlike a direct or “step-down” methodology, an iterative method uses the chosen distribution bases and allocates central service costs iteratively until all allocable costs have been distributed. Using this method, the model can detail the allocation for each central function individually for complete transparency and accountability, while removing bias that might result from the order in which allocations occur in a step-down approach. A direct methodology is essentially a one-iteration methodology, while a step-down method is typically only two iterations and is less precise and unable to accurately track the allocations from start to finish.

Approach for Managing the Project
Willdan’s “hands-on” supervision of Cost Allocation Plan studies, include the following methods:

Effective Project Management
Principal-in-Charge, Chris Fisher will manage the entire project with an eye toward high responsiveness, while ensuring that all stakeholders are “on board” with the direction of the project, as well as with the final results. Mr. Fisher will ensure that regular status updates are provided to City Staff, conference calls are scheduled, and that in-person meetings are conducted (as necessary). By taking these steps, he will be responsible for ensuring that Willdan will be accessible and fully engaged with your management and staff; and that communication remains, in effect, open throughout the project’s lifecycle — another essential step towards avoiding errors and irregularities.

Adherence to Time Schedule
Willdan recognizes that the use of “timelines” is highly effective in meeting all required deadlines. To keep the project on schedule, there are several tasks that must be completed in a timely manner. Therefore, we will present a project timeline at the kick-off meeting that should be closely followed.

Although the establishment of an experienced project team and a detailed project timeline work extremely well in general, Willdan understands that outside influences can create uncontainable situations for everyone involved in the project. In rare circumstances like these, our team quickly adapts to changes, and communicates our recommended schedule adjustments to the City. In so doing, we are able to produce a corrected timeline that will bring the project back on course to a successful completion by a mutually agreed upon deadline.

Approach in Communicating with the City
As the work on the project progresses, we understand that it will be necessary for our staff to work closely with you and City personnel. To accomplish this, we employ a variety of tools, including monitoring project status and budget costs; and ensuring effective communication through several options that are based on the City’s preferences. Regular updates can be provided by:
▪ E-mail (creation of a dedicated distribution list)
▪ Phone calls
▪ Project status memos
▪ Meetings
▪ Zoom or WebEx Conference Calls
▪ Using “timelines” as a highly effective tool to meet all required deadlines in a timely manner to keep the project on schedule

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 28
City of Arvin
Utility Rate Study Project Methodology
As described herein, and detailed within the scope of services that follows, our approach to this utility rate study is built around three primary objectives:

Primary Objectives
Working collaboratively with the
City of Arvin to develop the
comprehensive financial plan and
model for the utilities
Using the model to develop and
evaluate various rate, financial
and capital funding scenarios
Arriving at a final plan and set of
recommended rates that have a
clear and transparent rationale
and basis
We propose to conduct this process in a way in which staff and stakeholders gain understanding throughout the process of how the plan is developed, and how policy and financial decisions affect it, so that we can clearly communicate the process and results to City Council and the community. The communication part of the process is critical in gaining acceptance and understanding of the broader community.

Our rate study analysis will include comprehensive financial management plan alternatives for the next ten fiscal years to support the proposed five-year rate plan.

As part of this analysis, Willdan will develop a comprehensive financial analysis — which incorporates the following:
▪ Revenue requirements such as operating expenses, transfers, and reserve requirements; ▪ Major and minor capital expenses;
▪ Cash and debt-funded major capital expenditures, along with existing annual debt service expenses; ▪ Adequate funding of designated reserves including operating and existing debt service, and other reserves as outlined in the City’s financial policies; and
▪ Functional cost breakdown consistent with Proposition 218 requirements and American Water Works Association (AWWA) rate-making standards.

The culmination of the revenue requirements analysis, which will include a capital project financing plan and cost of service allocations, will be alternative rate plans which will provide sufficient revenue to meet the ongoing funding needs of each system, while recovering costs from customers in a manner which is fair, equitable, and within reasonable customer impact parameters.

During this project, we will utilize our Microsoft Excel-based model, with its interactive dashboard, as a comprehensive financial tool to allow for planning and reviewing of variable inputs and assumptions, thereby creating a thorough analysis of revenue requirements to address the City’s goal of ensuring predictable and stable revenue. These analyses are then seamlessly integrated with the rate development component of the model to demonstrate and project various rate design alternatives, and the effects they would have on the City’s financial outlook.

The model is used in meetings, in order to efficiently cycle through rate scenarios and establish the most viable rate plans for the City. During these interactive meetings, we invite City staff to participate in scenario planning / “what-if” sessions, where we use the dashboard to demonstrate and evaluate the financial/rate impact of alternative data (CIP, operating costs, etc.) and assumptions (interest rates, customer growth, cost escalation, etc.) in real-time to focus on the most critical drivers of the analysis.

This ensures the resulting rate plan alternatives are viable from a financial, operational, managerial, and political perspective.

To the extent revenues are not projected to be sufficient to meet requirements including operating expenses, debt service payments and coverage requirements, planned capital expenditures and targeted operating reserves, the model can be used to evaluate variable outcomes and alternatives, providing basis for meaningful discussions with elected officials and stakeholders well in advance of the actual rate increase process.

The financial planning component
of the model provides
transparency such that users can
develop a viable financial plan and
understand the reasons for
needed revenue adjustments.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 29
City of Arvin
Real-Time Financial Modeling
The goal of financial forecasting is to provide clear vision regarding the potential financial outcomes of current management decisions. Our goal is to help you mold the existing knowledge base of the City into a viable financial management and rate plan. At Willdan, the development and use of real-time financial models in an interactive, collaborative process is an integral part of the model development.

Any model is only as effective as the expertise of those who develop it; our state-of-the-art financial modeling techniques allow us to incorporate our considerable experience by asking the correct questions, evaluating, and incorporating appropriate data, providing interactive consulting services, and evaluating multiple scenarios with the City in a real-time setting.

Because our interactive model will be populated with
specific data from the City (i.e., division and account structure), each alternative reviewed in real-time
during interactive meetings with the City can be done
with a complete understanding of specific customer
impacts. Further, our experience ensures that the data
loaded into the model is vetted and validated, and that the baseline results from which forecasts are
developed are fully understood from the beginning, so
that more time is spent on evaluation of potential
solutions, rather than questioning whether the
underlying data and assumptions are correct.

Model Development as Part of the
Consulting Process
The financial planning model will be designed with the
following elements:
▪ Graphical dashboard to clearly show the results
of various scenarios to the user;
▪ Easily reviewed and modified assumptions;
▪ Validated data tables generated from the City’s
financial and operational information; and
▪ A powerful calculation engine.

The model will be “baselined” after an initial meeting with staff to ensure that we have the correct data and a basic understanding of the financial dynamics of your system. We will then conduct interactive financial planning sessions with City staff. After validating our data, calculation approach, and baseline assumptions, we will explore alternative scenarios, varying a number of assumptions and financial planning techniques including:
▪ Rate increase magnitude and timing;
▪ Alternative timing of capital projects;
▪ Alternative financing options (alternative combinations of pay-as-you-go, revenue bond debt and other debt, for example);
▪ Alternative growth/demand forecasts and other “what if” analyses, such as the impact of a loss of one or more service areas or significant customers; and
▪ Effect of increases in other sources of funds.

Given any combination of cost requirements (both operating and capital), non-rate sources of funds, and forecast assumptions, the Willdan team will work with the City to develop a financial plan that:
▪ Meets specified reserve targets;
▪ Addresses identified benchmarks or key performance indicators; ▪ Fully funds capital expenditures using specified financing techniques; and ▪ Meets legal, policy and contractual requirements that are financially measurable, such as existing debt service coverage on revenue bonds.
0% FY 04 FY 05 FY 06 FY 07 FY 08 D/S Cov-Rcov 2.19 2.36 1.04 1.16 0.84 D/S Cov-Parity NA NA 1.04 NA 0.84 another dialog box for: Level Other
RATE INCR.% 3.0% 3.0% 3.0% 3.0% 3.0%
Sample Utility
Revenue Sufficiency Analysis Dashboard
Rate Revenue Increase Required

3.0% 3.0% 3.0% 3.0% 3.0%

0.0%

10.0%

20.0%

30.0%
Rate Incr 3.0% 3.0% 3.0% 3.0% 3.0%
Last
FY 04 FY 05 FY 06 FY 07 FY 08
Working Capital
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
Actual 94,509,622 54,544,605 21,300,439 20,421,433 14,244,837 Last Target 20,077,706 20,680,037 21,300,439 21,939,452 22,597,635 FY 04 FY 05 FY 06 FY 07 FY 08
3 Working Capital Target (Expressed as Months of O&M) Capital Projects -
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
CIP 45,000,000 45,000,000 85,000,000 45,000,000 45,000,000 Last FY 04 FY 05 FY 06 FY 07 FY 08
Percent of CIP Spent 100%
Debt Funded Capital
-
50,000,000
100,000,000
150,000,000
CIP - - 97,831,133 - 88,750,000 Last
FY 04 FY 05 FY 06 FY 07 FY 08
Yrs to Bundle Debt 2
Rate Revenue
Requirements
Financial Planning Model
Rate Design Model
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Sample Utility
Revenue Sufficiency Analysis Dashboard
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6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 30
City of Arvin
Subsequent to careful development and validation of the baseline forecast, a series of alternative forecasts will be prepared illustrating various results in the following general categories:
▪ What if things turn out differently? These alternatives will demonstrate the sensitivity of the forecast to the significant assumptions used. This results in a sound understanding of areas where a conservative forecast approach is warranted.
▪ What happens when we try this? This series of alternatives focuses on different financial management approaches. For example, the use of different financing techniques such as capitalized interest, interim shortterm financing, and capital appreciation bonds may be explored. ▪ What can we do to make it better? This approach to forecasting identifies the factors that may be causing significant rate increases in a given year and explores alternatives. For example, if a large capital project in a single year is the culprit, we would work with staff and the consulting engineers to determine whether this project could be phased or delayed.
▪ How will any adjustments affect our customers? In examining rate structure alternatives, we will demonstrate and discuss how users in various categories or classifications will be impacted. Our consultants will use our rate design model to explore the impact of various rate structures on bills for each customer class over the relevant consumption range.

Communication as Part of the Consulting Process
Willdan’s experienced professionals are accustomed to communicating with a variety of stakeholder groups, from management and staff, boards, and commissions, as well as the community. Our analytical and modeling approach will be customized to the City’s specific needs. As mentioned, the custom graphical interfaces imbedded in our models allow our consultants to easily track key performance metrics and work through alternative scenarios with the City staff and management. Features of the Excel-based analysis model include the ability to incorporate line-item data and assumptions that are then summarized in a graphic dashboard to show key financial indicators for the utility systems.

The sample dashboard illustrates how we can summarize data, assumptions, and calculations into an easy-tounderstand graphical interface that updates with each alternative scenario evaluated. A copy of the final dashboard model will be provided to the City of Arvin upon completion of the project.

Rate Setting Process
The graphic below summarizes the standard approach commonly employed to develop utility rates. Willdan’s ratesetting process and model has been developed through the completion of many successful studies over the course of time and continues to be the basis for developing proven, well-balanced financial plans that are supported by equitable rate structures. Willdan’s combination of consulting experience and technical expertise helps distill the complex decisions into a clear and easy-to-understand process. As there are often competing objectives, for a successful rate study it is necessary to understand not only the technical details and corresponding rates, but also the social and political corollaries that can often jeopardize the implementation of a technically sound rate structure. Our rate experience goes beyond simply “running the numbers” by creating numerous scenarios and considering stakeholder considerations, such as customer impact (ability to pay) to ensure a complete and unimpeded rate analysis.

Each step of the three-step approach is typically performed in tandem. Although presented sequentially, the overall analysis is circular – as variables in one analysis may influence another. Thus, it is imperative to constantly review assumptions to determine if variables are fixed (i.e., debt service) or flexible (i.e., consumption or treatment) and monitor how changes in certain variables affect the overall analysis.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 32
City of Arvin
Cost Allocation Plan Work Plan
Our proposed work plan, described in detail by task, is provided below. We explain how each task will be accomplished and identify associated meetings and deliverables. We want to ensure our scope provides quality and clarity and is responsive to the City’s needs and specific local circumstances. We will work in concert with the City to adjust the scope as needed during the course of the study.

This proposed scope addresses the completion of both the full and OMB compliant versions of the Cost Allocation Plan (CAP). We have noted where activities specific to the OMB compliant plan occur.

Task 1: Initial Document Request
Objective: Initial due diligence.

Description: Prior to project kick-off, relevant documentation will be obtained and reviewed in order to enhance our understanding of the City’s current cost allocation plan and internal structure of the agency. A written request for specific data will be sent to the City. The data provided in this task will provide the building blocks for later model development.

Our request may include (but is not limited to):
▪ Detailed budget and accounting data;
▪ Prior year’s financial data, salary, position, and staffing data; ▪ Organizational structure; and
▪ Data related to various allocation bases that may be incorporated as part of the methodology, i.e., Council agenda frequencies by department, AP/AR transactions by department, IT equipment distribution by department, etc.

Deliverables: Willdan: Submit information request to City.

City: Provide requested data to Willdan (prior to Task 2, Kick-off/Refine Scope). We will follow up with the City to confirm in writing the data that we have received, or which is still outstanding.

Task 2: Kick-off / Refine Scope
Objective: Confirm project goals and objectives. Identify and discuss policy issues related to the study.

Description: Willdan will identify and discuss policy issues typically raised by these studies, discuss any operational changes, and address data gaps in order to gain a full understanding of the City’s goals for the cost allocation plan. We will establish effective lines of communication and processes for information gathering and review.

We will ask that the City assign a project manager to serve as its primary contact. The selected City project manager will ensure that available data is provided to Willdan in a timely manner, thereby maintaining adherence to the project’s schedule.

We will obtain and review the current cost allocation methodology and discuss with City staff. The objective of this review is to determine specific areas of focus as they relate to the City’s objectives, and to discuss and evaluate current and potential allocation factors.

Meetings: One (1) project kick-off conference call to initiate the project, discuss data needs and methodologies and to address policy issues.

Deliverables: Willdan: If needed, a revised project scope and schedule.

City: Provide further data requirements and select / introduce City’s project manager.

Task 3: Gather Staffing Information and Develop Cost Allocation Plan Model Objective: Gather information related to indirect staffing and functions. Prepare draft both full and OMB compliant cost allocation plan and model.

Description: This task involves the gathering of specific information, directly from City staff, through interviews and discussion, related to the functions served by indirect staff and the departments served by their activities.

This task also focuses on the development of, and/or adjustment of existing, allocation bases, and the development and testing of a model that will ultimately be used to calculate the proper cost allocations derived from data gathered in prior tasks.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 33
City of Arvin
The model will be developed to incorporate any recent changes in the provision of City services, and fully allocate central service costs.

The model will also be developed to allocate only those costs eligible under 2 CFR Part 200. This is accomplished by loading relevant data into the model, identifying which costs are not allocable under the OMB guidelines. The OMB Super Circular compliant model is valuable as the City may receive Federal or State grant funding that mandates compliance with Federal OMB regulations.

We will utilize budget and organizational information, and other required information gathered from City staff to complete the work in this task. Specific discussions will be held to discuss bases, how central overhead services are provided to and utilized by other departments, cost categories and allocation criteria, and how these will factor into the overall cost allocation methodology.

The model and methodology will also produce indirect cost rates. These rates will be suitable for a variety of uses, billing to CIP projects, and in the OMB Super Circular compliant CAP, to Federal grants.

Meetings: Online meetings with staff to understand structure and operations as model and allocation bases are developed. Key staff will be interviewed to best understand central overhead staffing and functions and the departments served.

Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format that provides both a full cost allocation plan and an OMB Super Circular compliant cost allocation plan.

Task 4: Test and Review Cost Allocation Methodology
Objective: Test and review model and results with City.

Description: The draft cost allocation plan model will be reviewed with City staff, and adjusted as necessary, to ensure that preliminary allocations provide an accurate depiction of how the central overhead costs should be borne by the operating programs and funds. Over the past several years, we have successfully integrated online meetings by using WebEx™ as an element to our approach. This allows us to remotely guide staff through the model review and allows you the opportunity to interactively change inputs and test approaches.

Meetings: One (1) online meeting and demonstration with City Staff to review the model.

Deliverables: Willdan and City: Draft cost allocation plan model review.

Task 5: Prepare and Present Draft Report
Objective: Prepare the draft cost allocation report.

Description: This task involves the draft report preparation. The report will include an executive summary, cost allocation plan’s background, data and information sources utilized, model methodologies and calculation approaches, and results; calculations and supporting data will be presented textually and in easily understood tables and provided to the City.

The draft report will provide a breakdown of allocations, showing both the allocating and receiving organizations, as well as a comparison between allocations calculated for this new CAP (full and OMB) and prior year allocations.

Meetings: One (1) online meeting to present the draft report to City’s Management Group and City Staff.

Deliverables: Willdan: Draft report for City review and input.

City: Review of draft report, with comments, and edits.

Task 6: Discuss and Revise Report
Objective: Review of draft report, cost distribution methods, and model.

Description: An in-depth review of the draft report and model will be conducted to arrive at an optimum allocation method for each expenditure type.

Often, through the course of an engagement, comments usually revolve around issues of understandability; appropriate levels of enterprise funds’ cost recovery, etc.; ease of calculation; differences in allocations from previous years; and overhead costs’ distribution methods.

Our reports are structured to include both the full and OMB compliant plan, but in the course of review if a separate report is desired for each or just one of the plans, they will be split.

Following a round of comments from City staff concerning the draft report, the final report will be prepared for presentation to the City Council.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 34
City of Arvin
Meetings: One (1) web meeting or conference call with City’s Management Group and City Staff to review the report with changes and revisions.

Deliverables: Draft report, and revised draft/final report.

Task 7: Prepare and Present Final Report and Model
Objective: Prepare and present the final report to City Council. Educate City staff on the operation and use of the model for future modifications.

Description: This task is the culmination of the cost allocation plan project. Based on staff comments on the draft report, Willdan will prepare the final report for presentation to City Council.

Meetings: One (1) meeting with the City Council to present the final plan.

We will also provide staff training on the operation and use of the model so it can be used in future years to prepare updates. We will also be available for questions following this training.

Deliverables: Willdan: Provide one (1) electronic PDF file copy of the final report and model (full and OMB Super Circular compliant). Using Microsoft Word and Excel, an updateable electronic copy of the study and models, as well as related schedules, will also be provided on CD/ROM.

Sewer Utility Rate Study Work Plan
The following proposed scope of services is intended to capture the goals and objectives of the City. Willdan is confident the following will effectively meet the stated project objectives. A final scope and schedule will be determined following the selection of a consultant and based on further discussions with staff. Willdan’s work plan will culminate in the successful development of sewer projections and rates for five years, an extended ten-year financial plan, and the education of staff and key stakeholders.

Project Initiation
Task 1.1 – Data Collection and Review
Task 1.1.1 – Data Collection. The City will be provided with an initial list of basic data needed to conduct the study.

The data request may include, but will not be limited to:
▪ Financial and operating data (budgets, audits,
financial statements, cash balances, etc.);
▪ Customer account and billing data;
▪ Related reports prepared by others (i.e., Master
Plans);
▪ Capital improvement programs, fixed asset records;
▪ System operating data for the utility;
▪ Service contracts, residential and commercial,
for refuse collection, recycling, and disposal
services;
▪ Bond statements, debt service schedules;
▪ Ordinances, previous rate studies, City codes;
and
▪ City financial, debt and reserve policies.

Task 1.1.2 – Data Review. We propose to conduct initial data collection and review prior to the kick-off meeting to allow for a more meaningful discussion to occur. This will allow for our review of data in advance of the meeting so that we can request clarifications or follow-up information as necessary. However, if the City’s preference is to conduct the kickoff prior to collecting data, we will accommodate that request. The data will be reviewed for completeness and to ensure a sufficient understanding of historical utility operations. The data collection and review process will be ongoing throughout the process as the need for additional information arises.

Task 1.2 – Kick-off Meeting and Planning Discussion
Task 1.2.1 – Project Kick-off. Following initial data collection and review, Willdan will conduct a kick-off meeting with City Staff. During this meeting we will discuss goals and objectives of the study, the schedule, constraints, or challenges that may be encountered, stakeholder considerations and objectives, and political concerns. Discussions may center around the following:
▪ Review of previous rate study and existing rate structure and areas where existing rates have been successful and/or specific areas of focus;
▪ Review of service contracts;
▪ Review of recent financial performance for the utility;

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 35
City of Arvin
▪ Discussion of anticipated significant events (i.e., loss or gain of any major customers); ▪ Components to incorporate into the updated revenue requirements; such as, capital improvements, debt repayment, reserves, annual repair and replacement, ongoing maintenance, cost of imported water, etc.; ▪ Strategy and level of effort for outreach and education; ▪ Conduct a detailed review of the data used in the baseline financial forecast; and ▪ Review and resolve (or develop a plan for resolving) data issues and questions.

For further efficiency and collaboration, the kick-off meeting will include a financial policy discussion. This will serve to address and document the City's financial policies for the utility to be studied.

Topics of discussion may include:
▪ Rate design approaches and alternatives;
▪ City financial policies;
▪ Reserve options and target levels (operating, debt
services, rate stabilization, repair, and
replacement);
▪ Capital Improvement Plan (CIP) financing options
– i.e., PAYGO vs. debt vs. grants;
▪ Customer characteristics and classifications; and
▪ Cost of service factors and Proposition 218.

Sewer Rate Study
Task 2.1 –Financial Plan, Revenue Requirements and Rate Determinants Task 2.1.1 – Historical Billing Data Analysis. The data request document will provide instructions for the development of historical customer billing information. It is anticipated that the billing information will be provided in a format necessary to summarize the sewer system accounts and billable flows by customer class for a recent historical period for which audited revenues exist. The customers and flows provide the basis on which operating revenues are derived and are therefore the primary factors utilized in reviewing the user rates and charges. As such, the historical billing data provides an important basis for analyses that will be used to develop assumptions for projecting revenues under existing and/or proposed rates.

Task 2.1.2 – Customer and Flow Projections. The sewer system accounts and billable flows will be forecasted for a five-year planning period. Such projections will be developed by considering historical growth trends, peak demands, climatological patterns, local economic conditions, potential for adding/losing major utility customers, changes in customer class usage patterns over time, and experienced judgment. The billable flow projections will be based on the projected number of utility accounts and a usage per account analysis to differentiate the historical effects of account growth and increased (decreased) average usage by customer class.

Task 2.1.3 – Projected Revenues Under Existing Rates. Projections of utility system revenues under existing rates for the five-year planning period will be developed for sewer, recognizing projected accounts, flow volumes, and usage patterns by customer class (as determined in the billing analysis under the previous tasks).

Task 2.1.4 – Projected Revenue Requirements. Revenue requirements (i.e., system expenditures) will be developed for the utility systems based on an analysis of historical, currently budgeted, and anticipated operating and capital expenditures.

The revenue requirements will be projected on a fiscal year cash flow basis, considering expected operational changes, changes in staffing or operating expenditures for new facilities, system growth occurring from new development, anticipated extraordinary expenses, and allowances for inflation.

The projections will cover the five-year period from FY 22/23 through FY 26/27 (consistent with recommended rate adjustments), with an extended ten (10) year through June 30, 2023, and will include, but not be limited to, the following:
▪ Operation and maintenance expenses;
▪ Direct and indirect costs utilizing the City’s existing overhead cost allocation model;
▪ Outlay for annual capital additions and
replacements;
▪ Debt service and reserve requirements on existing and anticipated debt instruments;
▪ Funding for long-term capital projects; and
▪ Other expenditures and transfers.

Task 2.1.5 – Projected Operating Results Based on Existing Rates. The projected revenues and revenue requirements will be summarized into a five and ten-year cash flow statement providing the projected operating results of the sewer system under the existing rates.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 36
City of Arvin
The cash flow statement will be used to estimate annual adjustments in utility revenues necessary to fund operating and capital expenditure requirements, meet existing bond covenant requirements, and maintain prudent utility management practices. The estimated timing and magnitude of future debt issues required, if any, to finance proposed capital improvements will also be shown.

Concurrent with the development of the projected operating results, the study will review the general financial health of the utility operations and, as necessary, make recommendations for changes in fund balances, reserves, and debt service coverage ratios to maintain financial integrity and a stable bond rating.

The graphic below demonstrates the general rate study methodology and major components of the rate process.

Task 2.2 – Capital Plan Analysis
Task 2.2.1 – Review Capital Improvement Program (CIP) and Asset Replacement Schedules. The City’s existing utility system five-year CIP and asset replacement schedules will be reviewed in conjunction with conversations with City Staff. The objective of such a review is to gain an understanding of the types of projects scheduled; the timing associated with such projects, associated expenditure requirements and the sources of funding each project. Examining the impacts on the financial objectives of the sewer utility, as well as capital projects associated with rehabilitation and replacement of existing facilities, will be a key objective of not only this task but the entire project. The results of the financial plan will also help the City to prioritize projects identified within the CIP.

Task 2.2.2 – Develop Capital Needs Plan. Based on the findings made in the previous task and the Projected Operating Results described in Task 2.1.5, a plan will be developed to provide for the anticipated capital expenditure activities, including debt issuances, relative to the CIP. Such a plan will include consideration for the use of restricted and unrestricted funds, surplus operating reserves, capital recovery fees, and future rate adjustments. The analysis will also develop a projection of reserve fund balances and level of liquidity.

Task 2.2.3 – Capital Projects Model. The CIP will drive the future funding options and will directly impact rates.

Therefore, the rate analysis will incorporate the City’s current five-year CIP. The rate model will have the ability to run various CIP funding scenarios and quickly show the estimated impact on utility rates.

Since we are not serving as the financial/municipal advisor to the City for this project, we will rely on information relative to proposed debt or financing structures provided by the City or its designated financial/municipal advisor. $0
$2,000,000
$4,000,000
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$14,000,000
2017 2018 2019 2020 2021
Projected Unrestricted Reserves

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 37
City of Arvin
Task 2.3 – Cost-of-Service Allocations
Task 2.3.1 – Functional Cost Allocations. The analysis will allocate the Test Year revenue requirement (i.e., costs of providing service) to the various cost/rate components that constitute functional classifications of the types of service provided.

The functional cost allocations will evaluate such aspects as fixed costs, customer related costs and volumetric/usage related costs. The evaluation of allocation factors associated with applicable costs will be based on existing rate structures applied by the City, meter size, rate structures applied by other comparable utility systems in the region, common industry practice and standard rate-making principals.

Task 2.3.2 – Determination of Revenue Adequacy. Comparisons of revenues under the existing sewer rates with the allocated costs of service will be evaluated in order to determine the degree of cost recovery by the various cost components, and to identify areas that may possibly require adjustments to align the revenues from each rate component with the allocated costs.

Task 2.4 – Rate Analysis and Design
Task 2.4.1 – Evaluation of Existing Rate Structures. The existing rate structures will be further evaluated for their effectiveness in equitably recovering costs of utility service from each customer class. The City’s current rate structure will be evaluated, and recommendations will be made for potential modifications to the current rates.

As part of the rate design process, Willdan will discuss with departmental staff the current trends and philosophies in utility ratemaking. Based on these discussions, the analysis will develop and recommend a rate design and philosophy that best meets the objectives of the City. The analysis model will be developed in a dynamic manner allowing the City to compare alternative annual incremental/phasing adjustments to achieve funding goals. Basic standards for rate design accepted by the industry are:
▪ Full Cost Recovery – rate revenue should provide sufficient income so that, when combined with other sources of funds, funding requirements for the system are covered including, all current long-term liabilities, debt obligations and future expansion-related and R&R-related capital needed to replace aging and infrastructure. ▪ Fairness and Equity – based on cost responsibility as reflected in cost-of-service allocations, in accordance with industry standards.
▪ Technically Defensible – apply industry proven standards and methodologies to help shield the City from potential legal challenges associated with the proposed utility rates. ▪ Administrative Efficiency – rates should be understandable to customers and efficiently administered by staff. ▪ Customer Acceptance – customers understand the rates, view them as fair, and consider them to be reasonable compared to other costs and other utilities.
▪ Public Health and Welfare – rates are structured so that essential service usage is encouraged through affordability.

Task 2.4.2 – Rate Structure Alternatives. The rate model will be developed in a dynamic manner such that the Willdan Team and City Staff will be able to analyze “what if” scenarios detailing the financial impacts under each scenario utilizing an iterative dashboard view. Baseline rate structures will be recommended as required to fund the utility systems and consider annual inflationary indexed adjustments to rates as needed to maintain the utility. We will coordinate with City Staff to ensure suggested rate structures are compatible with the City’s utility billing software.

Task 2.4.3 – Projected Operating Results Based on Proposed Rates.

The proposed user rates and/or rate structures will be applied to the projected customers and flows in order to estimate the revenues to be generated from the proposed rates for the Test Year and the subsequent years of the projection period. The projected revenues will consider possible elasticity effects associated with changes in usage characteristics that may occur from revising the rate structure. In addition, similar to the process described in Task 2.1, the five-year forecast will identify annual adjustments in utility system revenues necessary to meet existing bond covenant requirements, prudent management practices, and/or sound capital financing considerations.

Utility 1
Existing Rates
Utility 2
Utility 3
Utility 4
Proposed Rates
Utility 5
Utility 6
Utility 7
Utility 8
Utility 9
Utility 10
Utility 11
Utility 12
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$30.00
$40.00
$50.00
$60.00
$70.00
Comparison With Other Utility Systems
6,000 Gallons Per Month
Average of Other Utilities

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 38
City of Arvin
Task 2.4.4 – Typical Bill Comparison. Comparisons of typical utility bills under the existing and proposed rates will be developed for each customer class under various levels of usage. The selected customer class usage levels will reflect the results of the billing analysis to better demonstrate rate impacts on typical customer accounts in each class.

Task 2.4.5 – Neighboring Utility Comparison. A comparison will be prepared to assess the difference between existing and proposed rates of the City with those of other comparable municipal utility systems.

Preparation of Reports and Proposition 218 Notices
Task 3.1 – Reports and Deliverables
Task 3.1.1 – Preliminary Draft Report. A draft report will be developed to address study findings and proposed recommendations. Contents will also include assumptions relied upon for the projection of customers and usage characteristics, revenue requirements, revenues, operating results, the cost recovery profile for each class, the results of the fully allocated cost of service analyses and any proposed adjustments to the utility rates. Upon completion, an electronic PDF copy and ten copies of the draft report will be provided to staff for review. The report and presentations will also include a comparison of the City’s current and proposed sewer rates with five other public agencies.

Task 3.1.2 – Final Report. Based on comments received from staff and other participants during the presentation of the Preliminary Draft Report, the Final Report will be revised to incorporate the agreed upon changes. Upon completion, an electronic PDF copy and two (2) copies of the Final Rate Study Report, as well as the dashboard model spreadsheet will be provided to the City.

Task 3.2 – Proposition 218 Notice Preparation and Mailing Task 3.2.1 – Proposition 218 Notices. Based on our over 25-year history with Proposition 218 compliance, we will assist with the drafting of the notices that will explain:
▪ The purpose of the rates;
▪ The reason for the increases;
▪ How the rates are structured;
▪ The date, time, and place of the public hearing; and
▪ Details on what constitutes the existence of a majority protest, as it relates to the implementation of a new/increased utility rate structure.

Task 3.2.2 – Proposition 218 Notice Processing. We will develop the materials, create a parcel database of properties subject to the new proposed rates, and coordinate the printing and mailing of the materials in conjunction with a mailing house that we typically work with on these types of projects. The additional cost for these services is estimated at $.75 per parcel and includes direct costs associated with the mailing. Our cost proposal does not include these direct costs. They will be billed directly to the City at the time of the mailing once the actual costs are known.

Communicating Results - Presentations & Meetings
Task 4.1 – Meetings and Presentations
Task 4.1.1 – Project Kick-Off. As detailed in Task 1.2, a kick-off conference call will be scheduled with City Staff at the start of the project to discuss project requirements, finalize project scheduling/milestones and reporting requirements, and receive overall project direction. This discussion will provide the opportunity to review current utility rates, fees, charges, issues, and deficiencies with staff.

Task 4.1.2 – Project Progress Web Conferences. During the project, and prior to meetings with the City Council, team web conferences will be scheduled to present the progression of the analysis to staff in order to obtain input and feedback associated with any rate adjustments that may be presented. These web meetings will assist in the completion of rate design for the utility systems and guide the development of the draft report.

Task 4.1.3 – Rate Workshops/Community Outreach. As requested in the RFP, Willdan will conduct three (3) rate workshops with the City Council and City Staff, and three (3) to five (5) community outreach meetings.

Task 4.1.4 – Public Meetings. As necessary, we will work with City Staff to develop a public outreach strategy, should communications beyond the Proposition 218 notice be required. We will attend two (2) public meetings to educate the public about proposed rate changes prior to the Prop 218 Public Hearing.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 39
City of Arvin
Task 4.1.5 – Draft Financial Plan Meeting. The results of the Preliminary Financial Plan and Revenue Requirements will be presented to staff for comment, feedback, and direction.

Task 4.1.6 – Draft Study/Final Report Meetings/Public Hearing. The draft report will be reviewed with City Staff to discuss findings and recommendations, gather feedback and address questions, then presented to the City Council.

The results of the Final Report will be presented to the City Council during one (1) public City Council meeting, and then again at one (1) Public Hearing required by Proposition 218. Willdan’s project manager will be present to address any questions or concerns raised during the public hearings. Please note, meetings may need to be conducted remotely using video collaboration software and/or conference calls depending on the public health mandates in effect due to COVID-19.

City Staff Support / Responsibilities
Willdan recommends that the City of Arvin assign a key individual as a project manager. As our analysis is developed, the City’s appointed project manager will:
▪ Coordinate responses to informational requests;
▪ Coordinate as necessary with the City Attorney’s office; ▪ Coordinate review of work products; and
▪ Identify appropriate staff members for participation in meetings and facilitate scheduling.

We will ask for responses to initial information, follow-up requests and comments on reports within five business days or otherwise agreed upon timetable. If there are delays, the project manager will follow up with the parties involved to establish an estimated date for the delivery of information and/or feedback.

To ensure continued progression, the project manager will reconvene with the rest of the team to identify tasks that can be started while waiting for requested data.

Project Disclaimer
The City of Arvin further represents, acknowledges, and agrees that:
(i) The City uses the services of one or more municipal advisors registered with the U.S. Securities and Exchange Commission (“SEC”) to advise it in connection with municipal financial products and the issuance of municipal securities;
(ii) The City is not looking to Willdan to provide, and City shall not otherwise request or require Willdan to provide, any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues);
(iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder;
(iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cashflow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and
(v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 40
City of Arvin
Project Management and Quality Assurance/Control Approach Project Management Approach
At Willdan, we utilize a Project Management Process/Approach that ensures projects are completed on time, within budget and most importantly yield results that match our clients’ expectations.

We will document discussions leading to important policy decisions and/or the choice of critical assumptions used in constructing the analysis and model.

Following key stakeholder discussions, we will schedule a call to summarize findings and direction with City staff, to make certain that we are in agreement with stated objectives, and that feedback is incorporated as appropriate.

Project Management
Define the
Project Plan the Project Manage the Project
Review the
Project
Communicate
the Project
▪ Identify the project
scope, set
objectives, list
potential
constraints,
document
assumptions.
▪ Define a course of
action and develop
an effective
communication
plan.
▪ Provide a forum for
applying the team’s
collective expertise
to solving difficult
analytical issues
that arise in
complex projects.
▪ Collaborate with the
project team and
client staff and
agree upon timeline
to meet the
estimated project
timeline.
▪ Assign workload
functions to
appropriately
qualified staff to
ensure milestones
are met, on time.
▪ Pre-schedule quality
control meetings
with project team to
maintain the
progressive motion
of the project.
▪ Manage the
execution of the
project.
▪ Direct existing and
upcoming project
tasks.
▪ Control and
monitor work in
progress.
▪ Provide feedback
to client and
project team.
▪ Identify and
resolve deviances
from project
timeline.
▪ Review all work
product and
deliverables.
▪ Utilize structured
quality assurance
process involving
up to three levels
of review at the
peer level, project
manager level.
▪ Procure executive
officer level
review.
▪ Communicate with
the client regarding
work status and
progress.
▪ Ensure client is in
receipt of regular
status updates.
▪ Schedule regular
conference calls to
touch base.
▪ Inform client of
roadblocks, work
outside of projected
scope.

Through the process of providing regular
updates and conducting status conference
calls, potential issues will be highlighted,
discussed, and resolved. Any deviances from
the project timeline will be identified and plans
will be developed for course corrections.

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 41
City of Arvin
Quality Assurance / Quality Control Process
Our quality control program is incorporated as a required element of Willdan’s day-to-day activities. There are three levels of reviews incorporated for our deliverables:
1) Peer review;
2) Project Manager review; and
3) Final quality assurance manager
review.

Peer reviews involve one analyst
reviewing the work of another, while
project manager reviews are
conducted prior to delivery to the
quality assurance manager. The
quality assurance manager then
performs a final review. This assures
that our final product has been
thoroughly evaluated for potential
errors; thus, providing quality client deliverables, and high levels of integrity and outcomes.

The primary mission of our quality control plan is to provide staff with the technical and managerial expertise to plan, organize, implement, and control the overall quality effort, thereby ensuring the completion of a quality project within the time and budget established.

Quality Assurance Goals
Goal Lead Task
Quality Assurance /
Control Process Chris Fisher
▪ Establish a set of planned and systematic actions for maintaining a high level of quality in the professional services performed; Emphasize quality in every phase of work;
▪ Ensure efficient use of resources;
▪ Establish a consistent and uniform approach to the services performed; and
▪ Implement appropriate quality control measures for each work task of the project.

Quality Control Plan
Chris Fisher,
Jeff McGarvey&
Robert Quaid
▪ Contract deliverables;
▪ Specific quality control procedures;
▪ Special quality control emphasis;
▪ Budget and manpower requirements;
▪ Overall project schedule and budget; and
▪ Project documentation requirements;

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 42
City of Arvin
Fee Proposal
Cost Allocation Plan
Willdan Financial Services (“Willdan”) proposes a fixed fee of $9,930 for the Cost Allocation Plan phase. The table below provides a breakdown of the fee to complete each study by task and project team member.

Sewer Utility Rate Study
Based on our work plan provided in the scope of services, we propose a fixed fee of $24,545. The table below provides a breakdown of this fee by task and project team member.

C. Fisher
Principal-inCharge
T. Thrasher
Project
Manager
P. Patel
Analytical
Support
R. Quaid
QA/Tech
Advisor Total
$ 250 $ 210 $ 135 $ 210 Hours Cost
Cost Allocation Plan
Task 1: Initial Document Request - - 1.0 - 1.0 $ 135
Task 2: Kick-off /Refine Scope - 1.0 1.0 - 2.0 345
Task 3: Gather Staffing Information & Develop CAP Model 1.0 4.0 16.0 1.0 22.0 3,460 Task 4: Test and Review Cost Allocation Methodology - 2.0 8.0 1.0 11.0 1,710 Task 5: Prepare and Present Draft Report 1.0 2.0 8.0 1.0 12.0 1,960 Task 6: Discuss and Revise Report 1.0 2.0 4.0 - 7.0 1,210 Task 7: Prepare and Present Final Report/Instruct Staff on Model - 4.0 2.0 - 6.0 1,110 Total – Cost Allocation Plan 3.0 15.0 40.0 3.0 61.0 $ 9,930 City of Arvin
Cost Allocation Plan
Fee Proposal C. Fisher
Principal-inCharge
J. McGarvey
Tech Advisor
& QA/QC
K. Burnett
Technical
Advisor
M. Cronan
Analytical
Support
$250 $240 $185 $125 Hours Cost
Task 1.1 - Data Collection & Review - - 1.0 6.0 7.0 $ 935 Task 1.2 - Kick-off Meeting & Planning Discussion 1.0 - - 1.0 2.0 375 Task 2.1 - Financial Plan, Requirements & Determinants 8.0 1.0 2.0 28.0 39.0 6,110 Task 2.2 - Capital Plan Analysis 2.0 1.0 1.0 4.0 8.0 1,425 Task 2.3 - Cost-of-Service Allocations 1.0 1.0 1.0 6.0 9.0 1,425 Task 2.4 - Rate Analysis & Design 3.0 2.0 2.0 8.0 15.0 2,600 Task 3.1 - Reports & Deliverables 4.0 1.0 1.0 16.0 22.0 3,425 Task 3.2 - Proposition 218 Notice Preparation & Mailing 10.0 - - 12.0 22.0 4,000 Task 4.1 Meetings & Presentations 10.0 - - 14.0 24.0 4,250 Total - Utility Rate Study 39.0 6.0 8.0 95.0 148.0 $ 24,545 Preparation of Reports and Proposition 218 Notices
Communicating Results - Presentations & Meetings
City of Arvin
Sewer Utility Rate Study
Fee Proposal
Total
Scope of Work
Project Initiation
Sewer Rate Study

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 43
City of Arvin
Proposition 218 Fees
The fixed fee does not include direct costs associated with the printing, processing, and mailing of Proposition 218 notices. We will bill the City for these at our cost plus 10 percent (10%), based on actual quotes provided by our mailing house. These costs are estimated at ¢.75 per mailed piece.

Notes
▪ Our fee includes all direct expenses associated with the project. ▪ We will invoice the City monthly based on percentage of project completed. ▪ Additional services or meetings may be authorized by the City and will be billed at our then-current hourly overhead consulting rates.
▪ City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or relating to the project. Reimbursement shall be at Willdan's rates in effect at the time of such response.
▪ Willdan will rely on the validity and accuracy of the City’s data and documentation to complete the analyses. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party.

Hourly Fee Schedule
Our current hourly rates are listed below.

Willdan Hourly Rate Schedule
Position Team Member Hourly Rate
Vice President Chris Fisher $250
Managing Principal Jeffrey McGarvey $240
Principal Consultant Tony Thrasher
Bob Quaid $210
Senior Project Manager Kevin Burnett $185
Project Manager $165
Senior Project Analyst Priti Patel $135
Senior Analyst Michael Cronan $125
Analyst II $110
Analyst I $100

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Study 44
City of Arvin
Project Timelines
Willdan understands that time is of the essence for the City to begin this engagement. The proposed schedules can only be met with the cooperation of City staff. Delays in responding to our requests for data and review will result in corresponding delays to the project schedules. If that is the case, we will notify the City immediately of the possible impact on this schedule.

Cost Allocation Plan
3 10 17 24 1 8 15 22 29 5 12 19 26
Task 1: Initial Document Request z1
Task 2: Kick-off /Refine Scope z2
Task 3: Gather Staffing Information & Develop CAP Model z3 Task 4: Test and Review Cost Allocation Methodology z4
Task 5: Prepare and Present Draft Report z5
Task 6: Discuss and Revise Report z6
Task 7: Prepare and Present Final Report/Instruct Staff on Model z7 Deliverables:
z1: Information Request z5: Draft Report
z2: Revised Project Scope and Schedule (if needed) z6: Revised Draft Report/Final Report z3: User-friendly Model in Microsoft Excel z7: Final Report z4: Draft Cost Allocation Plan Model Review
City of Arvin
Cost Allocation Plan
Scope of Services April May June
Project Timeline

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Cost Allocation Plan and Sewer Utility Rate Stud
y 45
City of Arvin
Sewer Utility Rate Study 3 10 17 24 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 4 11 18 25 Task 1.1 - Data Collection & Review
Task 1.2 - Kick-off Meeting & Planning Discussion
Task 2.1 - Financial Plan, Revenue Requirements & Rate Determinants Task 2.2 - Capital Plan Analysis
Task 2.3 - Cost-of-Service Allocations
Task 2.4 - Rate Analysis & Design
Task 3.1 - Reports & Deliverables
Task 3.2 - Proposition 218 Notice Preparation & Mailing Task 4.1 Meetings & Presentations
September
Public Hearing (Sep/Oct 2023)
Final Report for PH
City of Arvin
Sewer Utility Rate Study
Project Timeline
Project Initiation
Sewer Utility Rate Study
July August Scope of Work April May June
Preparation of Reports and Proposition 218 Notices
Communicating Results - Presentations & Meetings

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Cost Allocation Plan and Sewer Utility Rate Stud
y 46
City of Arvin
Required Form

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation 27368 Via Industria, Suite 200
Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com

6.B.4
Attachment: Attachment A to Reso - Willdan CAP & Sewer Rate Study (Awarding PSA to Willdan Financial Services to Prepare Cost Allocation Opportunities for the City of Auburn, CA
Water, Energy, Food & Waste
Prepared by John Burdette
Veolia North America
Facilities, Buildings and Service
01/24/2023

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities 2 John J. Burdette III, CEM, CDSM, LEED AP
Senior Business Development Manager
Facilities & Building Services
Veolia North America
Mobile: +1-530-368-7886
Email: [email protected]

INTRODUCTIONS

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities

CHALLENGES COUNTIES FACE
Where do you go from here?
3 • Increasing in Population Growth • Utility Grid Reliability and High Energy Costs Escalation • Aging Infrastructure • Climate Change – Drought, flooding, wildfires and severe weather events are more common now than ever before
in our history.
• Limited Financial Resources • Public Safety Power Shutoffs (PSPS) • COVID-19 and Pathogen Mitigation • Lack of Internal Resources to Develop Programs

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities CPUC Proposed Decision
Net Energy Metering (NEM 2.0) ∙ Reducing the economic value of going solar 50 -
75% from what it is today.
• Consumers get some of the best net metering
benefits across the country under NEM 2.0
• These benefits will come to an end with the
implementation of California’s NEM 3.0

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities In order to take advantage of this, the first
recommendation is to go solar now, if you
haven’t already. It is very likely that customers
on NEM 2.0 will not see any changes with the
new program. Experts speculate that, as
before, the CPUC will grandfather older
systems in and continue to uphold the original
agreements. This means going solar now would
most likely allow you to lock in the net metering

2.0 benefits for 20 years.

CPUC Proposed Decision
Net Energy Metering (NEM 2.0)

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities 6 https://data.bls.gov/pdq

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities

WHY WE DO WHAT WE DO
Veolia group is the global leader in
optimized resource management. The
Company designs and provides water,
waste and energy solutions which
contribute to the sustainable
development of communities and
industries. Through its complementary
business activities, Veolia helps to
preserve available resources, and to
replenish them. The Veolia group supplied
98 million people with drinking water and
67 million people with wastewater
service, produced nearly 45 million
megawatt hours of energy and treated 50
million metric tons of waste.

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities 8 VEOLIA’S PROVEN (FBS) PROGRAM PROCESS
Data
Collection,
Site Walks
and
Interviews
Discovery
Meeting
Preliminary
Analysis
Findings
Presentation
Program
Verification
&
Development
Agreement
Final
Program
Development
Contract &
Implementation
• Introduce FBS
Program
• Identify
Challenges/ Trends
• Identify Goals &
Objectives
• Action Plan
• Collect facility
information and
square footages of
your facilities.
• Collect and analyze
your utility cost and
consumption data.
• Identify any existing
technical issues or
deferred
maintenance scope
items..
• Select Scope of
Work Measures to
include in the
program
development
process
• Estimated Savings
• Estimated
Implementation
Costs
• Estimated
Greenhouse Gas
Emission
Reductions
• Verify Detailed
Scope of Work
• Funding Solution
• Identify and Apply
for Rebates,
Grants and
Incentives
• Confirm Schedule
• Review Financial
Performance
• Draft Program
Contract Review
• Finalize Funding
Solutions
• Post Two Week
Notice for CA
Government Code
4217 Compliance
• Public Hearing &
Resolution During
Regularly
Scheduled Board
Meeting
• Present Final
Guaranteed Costs
& Savings
• Board Resolution
• Execute Contract
• Implementation
• Measurement &
Verification (M&V)
• Energy Management
Services
• Hubgrade

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities VEOLIA’S WWTP Solar – OPTION 1
● Solar Renewable Energy Generation
utilizing standard ground mounted
solar racking system.
● Ideal area for solar installation on land
South of the treatment plant
● Power Purchase Agreement (PPA)
would include a land lease for the use
of this land for 20 year term
● Revenue generation for the City of
Arvin through the land lease.
● Lease to fit within PPA parameters for
energy savings goal.

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities VEOLIA’S WWTP Solar – Option 2
● Solar Renewable Energy Generation to
be installed on custom racking systems
around perimeter of the WWTP.
● Less solar can be fit in this area,
resulting in lower savings.
● Lower cost land lease in this space as
the racking would be more expensive.
● Revenue generation for the City of
Arvin through the land lease, however,
lower than Option 1.
● Lease to fit within PPA parameters for
energy savings goal.

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities VEOLIA’S WWTP Solar & Storage Opportunities
Benefits of Floating Solar

1. You Do Not Lose Valuable Land

2. Benefits the Environment

3. Improved Solar Performance

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities

SOLUTIONS WORTH CONSIDERING
The time is now for the water, food, energy, waste nexus! 12 • Energy Reduction through Energy Efficiency Measures • Solar with Energy Storage and Microgrid Controls • Water recycling • Desalination • Renewable energy generation with solar, biogas and even hydrogen.
• Landfill diversion of green waste to digester systems. • Automatic Meter Reading (AMR) and Advanced Metering Infrastructure (AMI) to reduce bypass and water loss.

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities COMMON ENERGY CONSERVATION MEASURES FOR OUR MUNICIPAL CLIENTS6.C.1 Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities

BUDGET NEUTRALITY

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities 15

FUNDING SOLUTIONS
Leveraging Available Funding
California State Grants & Financing Programs
The State of California has issued many grants and subsidized financing programs for Energy Efficiency, Energy Storage, Renewable Energy Generation and Electric Vehicle (EV) Infrastructure.

Infrastructure Investment and Jobs Act
Provides funding for Western Water Infrastructure, Water Storage, Water Recycling and Reuse, Desalination, Critical Maintenance and Repair, Water Efficiency, Resiliency, ZEV and Energy Efficiency. Applications opening 4Q 2022! Now! Public-Private Partnerships
Allows for access to private sector financing and the transfer of risk from the public entitiy to the private sector. P3’s provide gauranteed performance and uptime and increased operational efficiency.

Utility Rebates, Incentives & Financing Programs

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities 16 INFLATION REDUCTION ACT of 2022
Let’s take a closer look!
• $749 billion funding includes $369 billion for climate-related emissions reduction activities! • Creates new credits for anaerobic digestion plus other biofuels • Expands and extends more tax credits
• Allows projects to monetize tax credits directly
• Authorizes investment tax credits (ITCs) up to 50% or more of qualified project costs rather than the historic 30%
• Establishes a stand-alone ITC for battery or certain thermal storage • Creates a $27 billion national Green Bank (called the Greenhouse Gas Reduction Fund) to leverage funding for early-stage or other hard-to-finance renewable energy projects • Appropriates over $100 billion to support (e.g.) federal, state, local and tribal project permitting, carbon capture and clean hydrogen development, clean transportation, GHG reduction planning, and Energy Department loan guarantees

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities Hubgrade Energy and Climate Action Planning Solutions • Energy Benchmarking • Historical Usage Patterns • General Load Analysis • Routine Site Visits • Project Feasibility Assessments • HVAC Scheduling & Optimization • Utility Rate Analysis and Optimization • Measurement & Verification • Commissioning, Retro-Commissioning & Continuous Commissioning
• Custom Energy, Water, Waste, and GHG Reduction Dashboards • EnergyStar Certification • LEED Certification • Staff Training • Community Awareness and Education Programs • Utility rates, incentives and rebate updates Hubgrade
Advanced Intelligence coupled with Human Experience

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities 18 • County of San Louis Obispo • County of San Mateo • County of Santa Clara • Solano County • City of Oakland • City of Burbank • City of Rialto • City of Arvin • City of Rio Vista • City of Palm Springs • West Basin Municipal Water District

RECENT CALIFORNIA LOCAL GOVERNMENT

ENERGY AND WATER PROGRAM CLIENTS

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities City of Arvin Sustainability Journey
• Introduction to Veolia’s Facility & Building Services (FBS) Program 11/17/2022 • Utility and Site Data Collection 12/21/2022
• Preliminary Site Walks 12/21/2022
• Preliminary Utility Data Analysis 01/12/2023
• Presentation of the Preliminary Analysis and ECM Selection 01/09/2023 • Program Development Agreement 01/16/2023
• Finalize Funding Solutions T 02/13/2023
• Board of Supervisors Approval TBD

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Questions?

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities 21

RECENT CALIFORNIA LOCAL GOVERNMENT

ENERGY AND WATER PROGRAM CLIENTS

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar Environmental solutions for business, industry and communities 22

RECENT CALIFORNIA LOCAL GOVERNMENT

ENERGY AND WATER PROGRAM CLIENTS

6.C.1
Attachment: Veolia FBS Program - The City of Arvin Solar

CITY OF ARVIN
Staff Report
Meeting Date: April 25, 2023
TO: Arvin City Council
FROM: Gerry Lemus, Veolia North America
Jeff Jones, City Manager / Finance Director
SUBJECT: Consideration of Funding Options for Solar Renewable Energy System at the City of Arvin’s Wastewater Treatment Plant. Option #1: Power Purchase Agreement (PPA) or Option #2: California Energy Commission (CEC) Energy Conservation Assistance Act (ECAA) One Percent (1%) Interest Loan Program.

BACKGROUND:

Veolia wishes to install a solar renewable energy generating system at the City of Arvin wastewater treatment plant. At the last city council meeting that Veolia presented, City Council provided direction to provide two options for the City’s consideration.

Option #1: Power Purchase Agreement (PPA)
Option #2: City Owned Option financed through the California Energy Commission (CEC) Energy Conservation Act (ECCA) One Percent (1%) interest loan program.

Veolia has conducted a detailed energy usage and cost analysis at no cost to the city. The data indicates that the PG&E and Constellation Energy cost of electricity including generation, transmission and distribution charges has been escalating at a rate of 11%+ per year over time and well above the Consumer Price Index (CPI) escalation rate allowed in the Veolia contract to manage the City of Arvin’s wastewater treatment plant.

Veolia has moved forward, by direction of the City Council and has paid for, all project development, engineering, and PG&E interconnection fees to secure and grandfather the City of Arvin on the current Net Energy Metering (NEM v2.0) program, which offers 75% more bill credits for renewable energy generation than the new NEM v3.0 program which starts on April 15th, 2023.

The proposed solar renewable energy system will reduce costs significantly and immediately reduce electric charges. The proposed system will also fix the payments and rate of escalation to a much lower cost. This will offer a hedge against the high inflation of PG&E delivered power

6.C.2
Attachment: Staff Report Veolia_Funding Options for Solar Renewable Energy System at Arvin WWTP 042523 (Funding Options for Solar and offer a revenue stream and provide short and long-term savings for the City of Arvin and residents.

Per City Council’s direction, Veolia has provided two options for financing as mentioned above.

Option #1: Power Purchase Agreement (PPA)
If the City Council decides to finance the project through a Power Purchase Agreement (PPA), the agreement will have a buyout option in year 12 when the Veolia contract expires. The city will have the option to keep the PPA in place at this time or purchase the array. The PPA will offer a significantly lower price of power compared to switching back to PG&E for power. The only logical reason to terminate the PPA in year 12 would be if the City of Arvin decided to exercise their “Buy Out” option, if it provided cost savings. The PPA would have a 20 year term with two 5 year options to extend. The associated operation and maintenance contract will be for 12 years, in line with the current operation and maintenance contract for the wastewater treatment plant. Veolia will provide extension options if the City of Arvin would like to retain Veolia for the operations and maintenance of the solar array after year 12. The development of the renewable energy system will require a land lease and easement rights so Veolia can install, operate, and maintain the solar renewable energy system at the wastewater treatment facility.

Option #2: CEC ECCA (1%) Interest Loan Program
The State of California provides a revolving loan program to assist municipalities in implementing renewable energy and energy efficiency projects to save operating costs and reduce carbon footprint. In this option, Veolia would agree to reduce the cost of the procurement of electricity from the operations and maintenance contract for the City of Arvin Wastewater Treatment Plant. This option offers lower financing costs, increases savings for the City of Arvin and will allow Veolia to include some capital projects including upgrading the main electrical service from 800 amps to 2000 amps and also includes the relocation and increasing the size of the “centrate” pipe. Both of these projects were upcoming capital expenditures that the City of Arvin, which can now be completely avoided. These scope of work items are not only included, they are also eligible for the Federal Investment Tax Credits / Grants that will help reduce the costs of this scope of work by 30-40%. The associated operation and maintenance contract will be the same as the PPA, for 12 years, in line with the current operation and maintenance contract for the wastewater treatment plant. Veolia will provide extension options if the City of Arvin would like to retain Veolia for the operations and maintenance of the solar array after year 12.

ENVIRONMENTAL:

The project is deemed to be categorically exempt from CEQA and Veolia will plan to file a Notice of Exemption (NOE) which will include a brief description of the proposed project, the location of the project, a finding that the project is exempt from CEQA, including a citation to the appropriate exemption, and a brief statement of the reasons to support the finding that this

6.C.2
Attachment: Staff Report Veolia_Funding Options for Solar Renewable Energy System at Arvin WWTP 042523 (Funding Options for Solar project is exempt per CEQA guidelines (15062(a).)
If a NOE is filed after project approval, it will trigger a 35-day statue of limitations for challenging the agency’s decision that the project is exempt from CEQA. (Pub. Res. Code 21167(d); Guidelines 15062(d).) If the NOE is not filed, the time period for challenging the action under CEQA is normally 180 days following the agency’s approval. (Pub. Res. Code 21167(d); Guidelines 15062(d).)
If CEQA comes back and requires more information, Veolia will prepare a Negative Declaration concluding that the project will not cause a significant effect on the environment per (Pub. Res.

Code 21080(c).); Guidelines 15070 et seq. (negative declaration process).) A negative declaration is a written statement that an Environmental Impact Report (EIR) is not required because the project will not have a significant adverse impact on the environment. (Pub. Res.

Code 21064, 21080(c).)
STAFF RECOMMENDATION:

Staff recommends that the Council act and direct Veolia to prepare and finalize Option #2 as described above. Veolia will draft the final California Government Code 4217 compliant contract with final pricing and financial savings projections and bring it back to the City Council for approval after the City Manager, Jeff Jones, and City Attorney, Nathan Hodges, have had time to review, comment, and propose edits to the contract. A two-week public notice will need to be published and a public hearing will need to be opened and closed before City Council passes a resolution to approve the project. We are targeting the May 23rd city council meeting for final project approval.

OPTION #1:

FINANCIAL IMPACT: $ 0.00 Capital Cost Required by City of Arvin $4,924,006.00 Projected Electrical Cost Savings
OPTION #2:

FINANCIAL IMPACT: $3,900,000.00 CEC ECAA Loan Required by City of Arvin $8,099,340.00 Projected Electrical Cost Savings
ATTACHMENTS:

Veolia Power Point Presentation R3

6.C.2
Attachment: Staff Report Veolia_Funding Options for Solar Renewable Energy System at Arvin WWTP 042523 (Funding Options for Solar

ENERGY CONSERVATION ASSISTANCE ACT (ECAA)
No application fees, points, or hidden costs
Eligible Applicants: Only the following entities are eligible for these funds:

Cities, Counties, Special Districts, Public Colleges or Universities, and Public Care Institutions / Public Hospitals
I n t e r e s t R a t e
1% Loans

FINANCING FOR ENERGY EFFICIENCY
& RENEWABLE ENERGY GENERATION

PROJECTS

N O T I C E
a nd

A P P L I C A T I O N
P O N - 17 - 401
R e l e a s e D a t e :

A p r i l 30 , 2 0 1 9
Gavin Newsom
Governor
Ca lif orn ia Ener gy Comm is s io n
http://www.energy.ca.gov/efficiency/financing/index.html Phone: (916) 651-3747

6.C.3
Attachment: Notice and Application (Funding Options for Solar Renewable Energy System at Arvin WWTP) Energy Conservation
Assistance Act 2 Loan Notice and Application

FINANCING FOR ENERGY EFFICIENCY

ELIGIBLE APPLICANTS
Only the following entities are eligible for these funds:
• Cities
• Counties
• Special Districts
• Public Colleges or Universities
• Public Care Institutions / Public Hospitals
Non-profit entities, residential, and commercial projects are not eligible for these funds.

ELIGIBLE PROJECTS
Examples of Eligible Projects:
• Lighting systems
• Heating, ventilation and air conditioning equipment
• Streetlights and LED traffic signals
• Energy management systems and equipment controls
• Pumps and motors
• Building envelope and insulation
• Energy generation, including renewable energy and combined heat and power projects
• Water and waste water treatment equipment
• Load shifting projects, such as thermal energy storage Projects which are already installed are ineligible.

LOAN INFORMATION
• The maximum loan amount is $3 million (please see PROJECT CRITERIA for additional information). There is no minimum loan amount. • The interest rate is fixed at 1% for the term of the loan. • A loan applicant with an existing ECAA loan may apply for an additional loan if additional funding becomes available, and when the applicant’s existing loan project is complete.

Before applying, please contact the Energy Commission for the most current funding information. This is a revolving loan fund and repayments from previously approved loan awards replenish the fund balance.

Approximately $8 Million in loan funding is expected to be available during Fiscal Year 2018-19. The Energy Commission reserves the right to:

6.C.3
Attachment: Notice and Application (Funding Options for Solar Renewable Energy System at Arvin WWTP) Energy Conservation
Assistance Act 3 Loan Notice and Application
• Increase the amount of funds available under this loan notice when additional loan funds become available.
• Add funding sources under this loan notice if and when additional funding sources become available.

Funding Source
Loans funded under this loan notice originate from the Energy Conservation Assistance Act (ECAA).

Loan Security Requirements
A promissory note and a loan agreement between the applicant and the Energy Commission are required to secure the loan.

Disbursement of Loan Funds
Loan funds are available on a reimbursement basis. For each reimbursement request, receipts and invoices for incurred expenses must be submitted along with proof of payment. The final 10 percent of the funds will be retained until the project is completed and the applicant submits the project final report. Interest is charged on the unpaid principal balance of the loan computed from the date of each disbursement to the borrower.

Repayment Terms
• Loans must be repaid from energy cost savings or other legally available funds within a maximum term of 20 years (including principal and interest). • The amortization of the loan and repayment schedule will be based on the number of years needed to repay the loan (principal and interest) using an estimate of the energy cost savings during the first year after project completion. Energy cost savings are based on applicable tariff and operating schedules at the time the loan application is submitted. • The loan repayment term cannot exceed the effective useful life of the loan-funded equipment.
• Applicants will be billed twice a year, in June and December, after the project is completed.

Sample Loan Agreement
Applicants must review the sample loan agreement documents posted at the http://www.energy.ca.gov/efficiency/financing before submitting an application.

Please refer to the heading “Loan Agreement” for PON-17-401– 1% Loans.

Additional Loan Information
• All documents are public records and will not be kept confidential. • Loans may require a tax certificate.

6.C.3
Attachment: Notice and Application (Funding Options for Solar Renewable Energy System at Arvin WWTP) Energy Conservation
Assistance Act 4 Loan Notice and Application

PROJECT CRITERIA
Projects with proven energy and/or demand cost savings are eligible, provided they meet ECAA eligibility requirements. A feasibility study is required to verify the estimated energy savings.

A. The maximum loan amount per application is the lesser of:

1. $3 million;

2. The estimated total project cost; or

3. The estimated total energy cost savings over the effective useful life (EUL) of the loan-funded equipment, not to exceed 17 years.

If the estimated total project cost is more than the estimated total energy cost savings over the EUL of the loan-funded equipment, the applicant may reduce the estimated total project cost to the estimated total energy cost savings level by using rebates, incentives, and/or its own funding.

However, other loan sources may not be used to co-fund the project.

B. The estimated total energy cost savings over the life of the project will be calculated by multiplying each measure’s annual energy cost savings by that measure’s EUL and then adding up the savings for all projects.

The applicant may use EULs provided in the Database for Energy Efficiency Resources (DEER)1, Appendix E of the Proposition 39 (California Clean Energy Jobs Act) Program Implementation Guidelines2 (July 2016), or the equipment manufacturers’ warranty. EULs will be the lesser of the EUL stated in the application or 17 years to allow for repayment of principal and interest within 20 years.

C. Energy cost savings shall be determined using the applicant’s current energy rates. Escalation of energy rates and soft costs, such as operation and maintenance savings, will not be considered when determining energy cost savings.

D. Leased Facilities: If the project is located in a leased facility the term of the lease must exceed the repayment period.

Project Commencement
A loan agreement must be fully executed (i.e. signed by the Energy Commission and the loan applicant) before the project work can begin. Only approved projectrelated costs that are incurred within the term of the executed agreement and comply with the terms and conditions of the loan agreement are eligible for reimbursement.
1 http://www.deeresources.com/files/DEER2013codeupdate/download/DEER2014-EUL-tableupdate_2014-02-05.xlsx 2 http://energy.ca.gov/2016publications/CEC-400-2016-005/CEC-400-2016-005-CMF.pdf

6.C.3
Attachment: Notice and Application (Funding Options for Solar Renewable Energy System at Arvin WWTP) Energy Conservation
Assistance Act 5 Loan Notice and Application

HOW TO APPLY
Applicants must submit the following:

A. Completed and signed Loan Application (Attachment 1).

B. Completed Summary of Energy Efficiency Projects in Loan Request Table (Attachment 2).

C. Governing Body Resolution (see Attachment 3)
D. CEQA Compliance Documentation (see Attachment 4)
Applicants must include a copy of documentation demonstrating that the applicant has complied with CEQA in approving the project. There are three possible actions the applicant may take. The applicant may determine that the activity undertaken by the loan is:

1. Not a project: include a statement that all projects to be funded by the loan are not projects under CEQA, and analysis supporting the conclusion that the activity is not a project.

2. A project that is EXEMPT: include any Notice of Exemption if filed by the applicant.

3. A project that is NOT EXEMPT: include any Notice of Determination filed by the applicant and a copy, web link or electronic version of any environmental documents prepared, such as:
• Negative Declaration;
• Mitigated Negative Declaration; or
• Environmental Impact Report.

E. Documentation of Applicant’s Authority:
a. Documentation showing the authority of the applicant to enter into the loan agreement.

A copy of a signed resolution, motion, order, etc. from the applicant’s governing board (see Attachment 3 for a sample). The resolution, motion, order, etc. must include the finding on CEQA compliance. If the CEQA finding is in the agenda item, include both the agenda item and the resolution. If the CEQA finding is in the resolution, do not include a copy of the agenda item;
OR
If the applicant does not use motions/resolutions/orders, include a copy of the law or other document showing the applicant’s authority to enter into a loan agreement.

AND
b. Documentation showing the job title of the individual who is authorized to apply for the loan and execute the loan agreement. In most cases, the title of the individual will be listed in the resolution, motion or order (see Attachment 3 for a sample);

6.C.3
Attachment: Notice and Application (Funding Options for Solar Renewable Energy System at Arvin WWTP) Energy Conservation
Assistance Act 6 Loan Notice and Application
OR
If the applicant does not use motions/resolutions/orders, the applicant must include other documentation showing the job title of the authorized individual.

F. Utility Billing Data
The applicant must electronically submit 12 months of recent baseline utility data records from electric and natural gas utilities, unless the information on utility usage and rate schedules are included in the feasibility study or energy audit report.

G. Feasibility Study or energy audit report (may be submitted via CD or flash drive). The study must have been completed within the past two years and must contain:

1. A detailed description of the proposed project;

2. A description of the buildings/facilities affected by the proposed project;

3. A discussion of baseline energy use for the facilities, including annual energy related utility bills;

4. All calculations and assumptions to support the technical feasibility and energy savings of the proposed recommended project;

5. A proposed budget detailing all project costs; and

6. A proposed schedule for implementation of the project. If the feasibility study identifies maintenance and operating procedures, the applicant shall include the estimated date of implementation or provide a reason for not implementing.

APPLICATION SUBMITTAL AND REVIEW PROCESS
Applications will be validated for eligibility based on the requirements of this loan notice PON-17-401. Applications deemed complete and eligible for funding will be processed in the order received. Applications are deemed complete when documentation is submitted to verify eligibility and compliance with all requirements listed in this loan notice.

If funding becomes oversubscribed, applications will be placed on a waiting list in the order they were deemed complete. In the event that there are two or more complete applications received on the same date and time, the application with the shorter payback period will be given the higher priority ranking on a waiting list.

Energy Commission staff will review the loan application and supporting documents to evaluate the proposed project’s technical and economic feasibility. Further, Energy Commission staff will perform its own CEQA evaluation of the proposed project. It may be necessary to arrange a site visit to evaluate the project and loan request.

ATTACHMENTS TO THIS LOAN NOTICE

6.C.3
Attachment: Notice and Application (Funding Options for Solar Renewable Energy System at Arvin WWTP) Energy Conservation
Assistance Act 7 Loan Notice and Application
• Attachment 1: ECAA Loan Application for Energy Commission Financing Interest Rate 1%
• Attachment 2: Summary of Energy Efficiency Measures in Loan Request
• Attachment 3: Sample Resolution
• Attachment 4: California Environmental Quality Act (CEQA) Information

HOW TO SUBMIT AN APPLICATION
Mail the loan application and all supporting documentation to:

ECAA Loan Program

LOCAL ASSISTANCE AND FINANCING OFFICE
California Energy Commission
1516 Ninth Street, MS #23
Sacramento, CA 95814-5512
Applications may be submitted at any time and this loan notice will remain posted for a minimum of 90 days from the original release date.

CONTACT INFORMATION FOR ASSISTANCE AND QUESTIONS
Please call or email the California Energy Commission to discuss available funding or any other information in this loan notice:

Loan Notice Documents
A copy of this loan notice, all attachments to this loan notice, sample loan agreements and more information is available for download at:
http://www.energy.ca.gov/efficiency/financing/
The Energy Commission reserves the right to close or change this loan notice.

For Assistance:

Email: [email protected]
Phone: (916) 651-3747
(916) 654-4104

6.C.3
Attachment: Notice and Application (Funding Options for Solar Renewable Energy System at Arvin WWTP)

STATE OF CALIFORNIA

LOAN AGREEMENT
CEC-142 (05/10)

CALIFORNIA ENERGY COMMISSION

BORROWER AGREEMENT NUMBER
Recipient Name XXX-XX-XXX ADDRESS AGREEMENT TERM
/ / to / /
The effective date of this Agreement is the date the California Energy Commission signs the Agreement. No work is authorized, or shall begin until the California Energy Commission signs the Agreement. See the signature date below for effective start date.

The parties agree to comply with the terms and conditions of the following Exhibits which are by this reference made a part of the agreement.

Exhibit A – Energy Conservation Assistance Act Loan Agreement Page(s): 09 Exhibit A – Attachment 1 – Budget Detail/Project Cost and Savings Page(s): 02 Exhibit B – Promissory Note Page(s): 03
Exhibit B – Attachment 1 – Estimated Amortization Schedule Page(s): 01 Exhibit C – Contacts Page(s): 01

REIMBURSABLE AMOUNT
$ 0.00

MATCH SHARE
$ 0.00
TOTAL
$ 0.00
The undersigned parties have read the attachments to this agreement and will comply with the standards and requirements contained therein.

CALIFORNIA ENERGY COMMISSION RECIPIENT AUTHORIZED SIGNATURE DATE AUTHORIZED SIGNATURE DATE

NAME PHONE NAME PHONE
Rachel L. Grant Kiley (916) 654-4379
TITLE
Contracts, Grants and Loans Office Manager CALIFORNIA ENERGY COMMISSION ADDRESS 1516 9th Street, MS-18, Sacramento, CA 95814

EXHIBIT A

ENERGY CONSERVATION ASSISTANCE ACT LOAN AGREEMENT
This Loan Agreement (the “Agreement”) is entered into as of the date it is executed by both parties hereto, between the California Energy Resources Conservation and Development Commission (the “Energy Commission”) and the [Insert Recipient Name] (the “Borrower”) located in [Insert Recipient County], CA.

1. STATUTORY AUTHORITY AND LOAN
A. Pursuant to the purposes authorized by section 25410, et seq., of the California Public Resources Code (the “Energy Conservation Assistance Act”), the Energy Commission has approved the Borrower’s loan application dated [Insert Loan Application Date], which is not attached but is expressly incorporated by reference herein.

B. Subject to the terms, covenants, conditions, and including Special Conditions (if applicable) contained herein, and the Budget Detail/Summary of Project Cost and Savings attached as Exhibit A, Attachment 1 hereto to the extent it modifies the Borrower’s loan application, the Energy Commission shall make a loan to the Borrower (the “Loan”) in the amount of [Spell Out Loan Amount] dollars ($[Insert Loan Amount]) evidenced by a Promissory Note (the “Promissory Note”) for loan number [Insert Loan Number] attached hereto as Exhibit B.

2. PURPOSE
The Borrower agrees to expend all funds disbursed pursuant to this Agreement only for the purposes and in the amounts set forth in Exhibit A, Attachment 1 (the “Project”). Any other use of funds disbursed hereunder shall require prior written approval by the Energy Commission.

3. LOAN DISBURSEMENT SCHEDULE
A. The Energy Commission agrees to disburse funds to the Borrower upon the Borrower’s execution of the attached Promissory Note and required supplemental documents, including invoices as required in Section 3.B below.

B. Loan funds shall be disbursed on a reimbursement basis based on invoices submitted by Borrower in a form approved by the Energy Commission. Backup documentation for actual expenditures (such as timecards, vendor invoices, etc) and proof of payment must be provided to substantiate the request. Energy Commission staff will approve invoices

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Non-Bond Funded Loan Agreement Exhibit A [Insert Loan Number] Rev. June 9, 2017 GKLFEB Page 2 of 9 [Insert Recipient Name] only after verifying requested amounts against backup billings and determining that expenses are appropriate and used for the authorized purposes of this Loan. For executed Agreements, invoices for expenses incurred during the Agreement Term are eligible for reimbursement.

C. All invoices must be submitted within sixty (60) days after Project completion.

D. The final ten percent (10%) of the Loan amount will be withheld as retention until the final report is received from the Borrower and the Commission’s Project Manager determines the Project has been satisfactorily completed.

4. LOAN REPAYMENT AND INTEREST
All funds disbursed hereunder, together with all interest payable thereon, shall be repaid to the Energy Commission in accordance with the terms of the Promissory Note. The Loan shall bear simple interest at the annual rate set forth in the attached Promissory Note on the principal balance of Loan funds disbursed to the Borrower. Payment of said interest shall be due at the time of semiannual scheduled Loan repayment installments to the Energy Commission, and interest shall accrue from the time of disbursal of funds to the Borrower until receipt of full Loan repayment to the Energy Commission.

5. TERM
A. The effective date of this Agreement shall be the date on which it has been executed by both parties hereto. No work is authorized, or shall begin until the Energy Commission signs the Agreement.

B. The Borrower agrees to complete performance of its obligations under this Agreement within the applicable periods stated in this Agreement.

6. PREPAYMENT
The Borrower shall have the right to prepay all or any part of the amount of this Loan at any time without penalty.

7. PROMISSORY NOTE
In order to evidence its debt to the Energy Commission hereunder, the Borrower agrees to, contemporaneously with the execution of this Agreement, execute and deliver to the Energy Commission the Promissory Note (attached as Exhibit B hereto).

8. ACCOUNTS, AUDITS, AND RECORDS
A. The Borrower agrees to establish on its books a separate account for this Loan. This account shall be maintained as long as the Loan obligation remains unsatisfied.

B. The Borrower further agrees to maintain records that accurately and fully show the date, amount, purpose, and payee of all expenditures drawn on said account for three (3) years after this Loan is repaid in full unless the Energy Commission requests a longer retention period.

C. The Borrower further agrees to utilize a voucher system by which all expenditures from said account will be authorized and authenticated.

D. The Borrower further agrees to allow the Energy Commission or any other agency of the State of California (the “State”) or their designated representatives, on written request, to have reasonable access to, and the right of inspection of, all records that pertain to said account or the Project.

The Borrower also agrees to submit to an independent audit, if requested by the Energy Commission, at the expense of the Borrower. Borrower agrees to maintain all such records for a minimum of three years after this Loan is repaid in full unless the Energy Commission notifies the Borrower, prior to the expiration of such three-year period, that a longer period of record retention is necessary.

9. SOURCE OF REPAYMENT; OPERATION OF PROJECT
A. Semiannual payments due to the Energy Commission under this Agreement shall be made from savings in energy costs or other legally available funds as the Borrower chooses. If the Borrower is a county, city, town, township, board of education, or school district, the Borrower agrees that the amount of the semiannual Loan repayment shall not be raised by the levy of additional taxes and shall not be an obligation against tax revenues, but shall be obtained either from savings in energy costs resulting from the subject energy conservation projects or other legally available funds as the Borrower chooses.

B. Energy cost savings as determined by the Energy Commission are based on energy usage and serving utility rate schedules at the time the Loan application is submitted, except as specified in Special Conditions, if any, as detailed in this Agreement, and the information and data contained in the Borrower’s loan application and technical study. The following will not affect the Energy Commission’s initial finding of energy cost savings, and are not a basis for claiming a lack of energy savings: a) changes in energy use and/or rate schedules which occur after submittal of the Loan

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Non-Bond Funded Loan Agreement Exhibit A [Insert Loan Number] Rev. June 9, 2017 GKLFEB Page 4 of 9 [Insert Recipient Name] application, except as specified in Special Conditions, if any, as detailed in this Agreement, b) deviations in the Project work scope from what was approved by the Energy Commission, c) changes in the Borrower’s facility and/or equipment which occur after submittal of the Loan application, including, but not limited to maintenance, operations, schedules, employees and facility alterations and expansions, d) deviations, omissions or errors found in the loan application and technical study after submittal of the Loan application. The Borrower is responsible for ensuring the accuracy of the information contained in its loan application and technical study. In the event annual energy cost savings resulting from the Project, as determined by the Energy Commission, fail to equal or exceed the amount due under this Agreement, this Agreement may be renegotiated to assure that the repayment amount does not exceed the actual energy savings or avoided costs resulting from the Project, and the Promissory Note will be revised accordingly. In no event, however, will the number of semiannual installments payable hereunder and under the Promissory Note exceed forty.

C. The Borrower shall obtain and maintain in its records any and all permits and licenses required to install or operate the Project and shall comply with all local, state, and federal laws, rules and codes concerning the Project. The Borrower shall maintain the Project in good working order for the duration of the Loan and shall insure that staff members are provided appropriate training on the operation and maintenance of the Project. The Borrower shall maintain insurance on the Project and, in the event of any casualty loss covered by such insurance policy, apply the proceeds to the repair of the Project or, with the approval of the Energy Commission, may use the insurance proceeds to install alternate projects to generate alternative energy cost savings to repay the Loan.

D. The Borrower agrees to provide the Energy Commission with the following information for three years following completion of the Project, unless the Energy Commission requests a longer period: (1) the annual computation, required by Section 25414 of the Energy Conservation Assistance Act, of energy cost savings for the most recent fiscal year, calculated in the manner and provided in the format prescribed by the Energy Commission; and (2) any information or change in assumptions or operations which might affect the Energy Commission’s initial determination of energy savings.

E. The Borrower authorizes any official or agent of the Energy Commission or the State to conduct physical inspections of the Project before the commencement; during construction, installation and implementation of the Project; and at any time prior to the complete repayment of the Loan.

In each contract entered into with suppliers of goods and services to

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Non-Bond Funded Loan Agreement Exhibit A [Insert Loan Number] Rev. June 9, 2017 GKLFEB Page 5 of 9 [Insert Recipient Name] install, conduct, or operate the Project, including management services, the Borrower shall include terms which allow any officer or agent of the Energy Commission or the State access to the Project site and to any books, documents, or records directly relevant to the Project.

F. If, prior to final repayment of the Loan, the Borrower sells the equipment or material installed with the proceeds of the Loan or sells the building, facility or system in which the Project has been implemented, then the Borrower shall apply the sale proceeds to repay any remaining balance due under this Agreement in full at the time of such sale. The Borrower shall notify the Energy Commission within five business days of the date on which the Borrower enters into an agreement to effect such transaction. The Borrower shall repay the Energy Commission within 30 calendar days of receiving an invoice from the Energy Commission for the balance due.

G. In accordance with Section 25415 of the Energy Conservation Assistance Act, the Borrower covenants to take such action as may be necessary to include all payments due hereunder in its annual budget and to make the necessary annual appropriations for all such payments. The obligation of the Borrower to make such payments shall be limited to the savings realized by the Borrower as a result of implementing the Project funded by the Loan.

10. DEFAULT
A. The Borrower’s failure to comply with any of the terms of this Agreement shall constitute a breach of this Agreement and an event of default. In such case, the Energy Commission may declare this Agreement to have been breached and be released from any further performance hereunder.

B. In the event of any default or breach of this Agreement by the Borrower, the Energy Commission, without limiting any of its other legal rights or remedies, may, to the extent permitted by law, declare the Promissory Note evidencing this Loan to be immediately due and payable.

11. TERMINATION
A. With Cause
The Energy Commission may, at its option, terminate this Agreement with cause in whole or in part, at any time prior to the funding of the Loan, upon giving five (5) days advance notice in writing to the Borrower. "Cause" includes without limitation:

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Non-Bond Funded Loan Agreement Exhibit A [Insert Loan Number] Rev. June 9, 2017 GKLFEB Page 6 of 9 [Insert Recipient Name] 1) Failure to perform or breach of any of the terms or covenants at the time and in the manner provided in this Agreement; or
2) Significant change in Energy Commission or State policy such that the work or product being funded would not be supported by the Energy Commission; or
3) Reorganization to a business entity unsatisfactory to the Energy Commission.

B. Without Cause
The Energy Commission may, at its option, terminate this Agreement without cause in whole or in part, at any time prior to the funding of the Loan, upon giving thirty (30) days advance notice in writing to the Borrower.

12. REPORTING
A. Progress reports are due each calendar quarter until Project completion.

At a minimum, Borrower shall submit progress reports in accordance with the following schedule:

PROGRESS REPORT SCHEDULE
For the Period Covering Report Due Date
January 1 through March 31 April 5th
April 1 through June 30 July 5th
July 1 through September 30 October 5th
October 1 through December 31 January 5th
B. A final report is due no later than (sixty) 60 days after Project completion.

C. The Energy Commission will not process an invoice unless the Borrower’s report submittals are up to date.

D. If requested by the Energy Commission, Borrower shall submit, within ten (10) days after the Energy Commission’s written request, a status report on its activities to date, pursuant to this Agreement.

E. Reports shall be in a format as determined by the Energy Commission.

F. The Borrower shall submit reports regarding energy savings as described in Section 9.D above.

13. GENERAL TERMS
A. Indemnification by the Borrower. The Borrower agrees to indemnify, defend, and save harmless the Energy Commission, the State, and their officers, agents, and employees from any and all claims, losses, or costs (including reasonable attorney fees) arising out of, resulting from, or in any way connected with the Loan or this Agreement, or the financing or the operation of the facilities financed with the Loan.

B. Ownership of Equipment and Material. All equipment and material acquired under this Agreement shall become the property of the Borrower at time of purchase. The Borrower shall obtain and maintain in its records a written waiver of all claims, other than those previously made in writing and still unsettled, from each contractor who supplies goods and services, including management services, in connection with the Project.

C. Independent Capacity. The Borrower, and the agents and employees of the Borrower, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the Energy Commission or the State of California.

D. Assignment. Without the written consent of the Energy Commission, this Agreement is not assignable or transferable by the Borrower either in whole or in part. The Energy Commission may assign its rights under this Agreement for security purposes, and in such event the assignee of this Loan Agreement, including the bond trustee of any bonds which may be secured by repayment of this Loan, shall be entitled to enforce the provisions hereof and shall be a third party beneficiary of this Agreement.

E. Time of the Essence. Time is of the essence in this Agreement. Borrower is required to take timely actions which, taken collectively, move to completion of the purpose for which this Loan was awarded. The Commission Project Manager will periodically evaluate the progress toward completion. If the Commission Project Manager determines that the Borrower is not progressing toward completion within one (1) year after the effective date of this Agreement, the Commission Project Manager may, without penalty or prejudice to any of the Energy Commission’s other remedies, terminate this Agreement.

F. Amendment. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto.

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Non-Bond Funded Loan Agreement Exhibit A [Insert Loan Number] Rev. June 9, 2017 GKLFEB Page 8 of 9 [Insert Recipient Name] G. Severability. In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.

H. Governing Law and Venue. This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California. Venue shall be in Sacramento County.

I. Non-discrimination. During the performance of this Agreement, the Borrower and its contractors and subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and family care leave. The Borrower and its contractors and subcontractors shall insure the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. The Borrower and its contractors and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this agreement by reference and made a part hereof as if set forth in full. The Borrower and its contractors and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. The Borrower and its contractors shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.

J. Incorporation of Energy Conservation Assistance Act. The Energy Conservation Assistance Act, together with any applicable rules, regulations or procedures authorized by such statute, is incorporated by reference in this Agreement.

K. Borrower Authorization. The Borrower certifies it has full power and authority to enter into this Agreement, and this Agreement has been duly authorized, executed and delivered by the Borrower. The Borrower acknowledges the resolution of its governing body or other official action authorizing it to enter into this Agreement. The Borrower also authorizes such further acts as are necessary, including execution of the Promissory Note, to implement and further the intent of this Agreement.

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Non-Bond Funded Loan Agreement Exhibit A [Insert Loan Number] Rev. June 9, 2017 GKLFEB Page 9 of 9 [Insert Recipient Name] L. Prevailing Wage. The Borrower shall comply with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code relating to the payment of prevailing wage for work performed on the Project financed in whole or in part with the proceeds of the Loan.

M. Funding Eligibility. By signing this Agreement, Borrower certifies it is eligible to receive state funding under all applicable laws, including but not limited to Chapter 2.8 “Project Labor Agreements”, of Part 1, of Division 2 of the Public Contract Code.

14. NOTICE
Any notice required to be given to the Energy Commission hereunder shall be sent to the person and address listed under Legal Notices in Exhibit G, Contacts, or at such other address as the Energy Commission may designate in writing to the Borrower. Any notice required to be given to the Borrower hereunder shall be sent to the address shown for Borrower in this Agreement, or at such other address as the Borrower shall designate in writing to the Energy Commission.

Notice to either party may be given using the following delivery methods: U.S. mail, overnight mail, or personal delivery, providing evidence of receipt, to the respective parties identified in this Agreement. Delivery by fax or e-mail is not considered notice for the purposes of this Agreement. Notice shall be effective when received, unless a legal holiday for the State commences on the date of the attempted delivery in which case the effective date shall be postponed 24 hours, or whenever the next business day occurs.

EXHIBIT A
ATTACHMENT 1

BUDGET DETAIL/PROJECT COST AND SAVINGS
This Loan is made to the [Insert Recipient Name] (“Borrower”) for an energy savings Project. The Project consists of the energy efficiency measures listed in Table 1 below to be installed at the [Describe Facilities] in the [Insert City(ies) and County(ies) Where Measures to be Installed], CA.

The Table below summarizes the estimated Project cost(s), saving(s) and simple payback(s) for the Project.

TABLE 1: Summary of Project Cost and Savings:

Energy Efficiency Measures
Estimated
Total
Project
Cost
Energy
Commission
Loan
Estimated
Annual
Energy
Cost
Savings
Simple
Payback*
(Years)
[Insert EEM #1. Add additional
rows as necessary]
[Insert
EEM Cost] $00.00
[Insert
Cost
Savings]
[Insert
EEM
Payback]
TOTALS:
[Insert
Total
Project
Cost]
[Insert Loan
Amount]
[Insert
Total
Annual
Energy
Cost
Savings]
[Insert
Overall
Payback]
*The simple payback is based on the Loan amount.

The Borrower shall implement each measure listed in Table 1.

If Borrower does not complete one or more of the measures or deviates from the quantities and specifications listed in Table 1, the Commission Project Manager will calculate the maximum Loan amount supported by the Project. The Loan amount will be determined by the lesser of: 1) multiplying the annual energy cost savings by [Insert Maximum Simple Payback Period]; 2) total Project costs; or 3) approved Loan amount.

Borrower shall notify the Commission Project Manager in writing if Borrower expects any information in Table 1 to change. Energy Commission staff will advise Borrower of the procedure to approve any changes. Written documentation is required for any changes to the information included in this Attachment.

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Budget Detail Exhibit A, Attachment 1 [Insert Loan Number] Rev October 5, 2016 MPLFCIAA Page 2 of 2 [Insert Recipient Name] If the Borrower has received disbursements exceeding the maximum Loan amount supported by the Project, the Borrower shall refund the difference to the Energy Commission within 30 days of notification.

EXHIBIT B

PROMISSORY NOTE
LOAN NUMBER: [Insert Loan #]
PRINCIPAL AMOUNT: $[Insert Loan Amt]
INTEREST RATE: [Interest Rate]%

1. For value received, the undersigned, (hereinafter referred to as the “Borrower”), promises to pay to the order of the State of California, Energy Resources Conservation and Development Commission (hereinafter referred to as the “Energy Commission”), at its principal place of business at 1516 Ninth Street, Sacramento, California 95814, or at such other place as the Energy Commission may designate the principal sum of [Spell Out Loan Amount] dollars ($[Insert Loan Amount]) or such lesser amount as shall equal the aggregate amount disbursed to the Borrower by the Energy Commission pursuant to the abovereferenced Energy Conservation Assistance Act Loan Agreement (the “Loan Agreement”) between the Borrower and the Energy Commission, together with interest thereon at the rate of Insert Interest Rate]% percent per annum on the unpaid principal, computed from the date of each disbursement to the Borrower.

Principal, together with interest thereon, is due and payable in semiannual installments as specified in the Estimated Amortization Schedule, attached hereto as Exhibit B, Attachment 1 and as amended in the Final Amortization Schedule, beginning on or before December 22 of the fiscal year following the year in which the Project is completed and continuing thereafter on each June 22 and December 22 until said principal and interest shall be paid in full. The Final Amortization Schedule, and any amended Final Amortization Schedule(s), are not attached but are expressly incorporated by reference herein.

2. Payments received will be first applied to billed interest, if any, and the balance, if any, to principal. If all principal is repaid, the balance is applied to accrued interest.

3. Payment of any scheduled installment received within thirty (30) days of the due date shall be considered to have been received on the due date. Interest on the principal portion of the payment accrues through the due date.

4. Payment of any scheduled installment received more than thirty (30) days after the due date shall be considered late. Interest on the principal portion of the payment accrues through the actual date payment is received.

5. The Borrower may prepay this Promissory Note in full or in part, without penalty.

6. In accordance with Section 25415 of the Energy Conservation Assistance Act, the Borrower covenants to take such action as may be necessary to include all payments due hereunder in its annual budget and to make the necessary annual appropriations for all such payments. The obligation of the Borrower to make

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Non-Bond Funded Promissory Note Exhibit B [Insert Loan Number] Rev. January 24, 2017 GKLFEB 2 of 3 [Insert Recipient Name] such payments shall be limited to the savings realized by the Borrower as a result of implementing the Project funded by the Loan.

7. If any installment is not paid within thirty (30) days after its due date, the Energy Commission, at its option, may require the Borrower to pay a late charge equal to five percent (5%) of the amount of the installment or Five Dollars ($5.00), whichever is greater.

8. On the occurrence of any event of default, the Energy Commission, at its sole election and without limiting any of its other legal rights or remedies, may, to the extent permitted by law, declare all or any portion of the principal and accrued interest on this Promissory Note to be immediately due and payable and may proceed at once without further notice to enforce this Promissory Note according to law.

9. Each of the following occurrences shall constitute an event of default:

A. Failure of the Borrower to repay any principal or interest when due under the terms of this Promissory Note;
B. Termination of the Loan Agreement pursuant to the terms thereof or breach by the Borrower of any terms of said Loan Agreement; C. Failure of the Borrower to undertake in a timely way the express and implied activities for which said Loan Agreement has been executed; D. Failure of the Borrower to obtain prior written Energy Commission approval before undertaking a change in the scope of the activities for which said Loan Agreement has been executed; or
E. Occurrence of: (1) the Borrower becoming insolvent or bankrupt or being unable or admitting in writing its inability to pay its debts as they mature or making a general assignment for the benefit of or entering into any composition or arrangement with creditors; (2) proceedings for the appointment of a receiver, trustee, or liquidator of the assets of the Borrower or a substantial part thereof, being authorized or instituted by or against the Borrower; or (3) proceedings under any bankruptcy, reorganization, readjustment of debt, insolvency, dissolution, liquidation or other similar law, or any jurisdiction being authorized or instituted against the Borrower.

10. No delay or failure of the Energy Commission in the exercise of any right or remedy hereunder or under any other agreement which secures or is related hereto shall affect any such right or remedy, and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof, and no action taken or omitted by the Energy Commission shall be deemed a waiver of any such right or remedy.

11. Any notice to the Borrower provided for in this Promissory Note shall be given by mailing such notice by certified mail, return receipt requested, addressed to the Borrower at the address stated in the Loan Agreement, or to such other address as the Borrower may designate by notice to the Energy Commission. Any notice to the Energy Commission shall be given by mailing such notice by certified mail, return receipt requested, to the Energy Commission at the address stated in the Loan Agreement, or at such other address as may have been designated by notice to the Borrower.

12. If suit is brought to collect any part of this Promissory Note, the Energy Commission shall be entitled to collect all reasonable costs and expenses of said suit and any appeal therefrom, including reasonable attorney’s fees.

13. This Promissory Note shall be binding upon the Borrower and its permitted successors and assigns and upon the Energy Commission and its permitted successors and assigns. Without the written consent of the Energy Commission, this Promissory Note is not assignable or transferable by the Borrower either in whole or in part. The Energy Commission may assign its rights under this Promissory Note for security purposes, and in such event the assignee of this Promissory Note, including the bond trustee of any bonds which may be secured by repayments of this Promissory Note, shall be entitled to enforce the provisions hereof and shall be a third party beneficiary of this Promissory Note.

14. This Promissory Note shall be construed and enforced in accordance with the laws of the State of California.

Insert Recipient Name

BORROWER

PRINTED NAME OF AUTHORIZED

REPRESENTATIVE

AUTHORIZED SIGNATURE
TITLE
DATE

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Estimated Amortization Exhibit B, Attachment 1 [Insert Loan Number] Rev. August 1, 2013 GKAFLFMS Page 1 of 1 [Insert Recipient Name]

EXHIBIT B
ATTACHMENT 1

ESTIMATED AMORTIZATION SCHEDULE

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Contacts Exhibit C [Insert Loan Number]
Rev. August 1, 2013 GKAFLFMS Page 1 of 1 [Insert Recipient Name]

EXHIBIT C

CONTACTS
Energy Commission Project Manager:
(Name)
California Energy Commission
1516 Ninth Street, MS - 23
Sacramento, CA 95814
Phone: (916)
Fax: (916)
e-mail:

Borrower Project Manager:
(Name)
(Contractor Name)
Address
Phone:

Fax:
e-mail:

Energy Commission Loan Officer:

Gordon Kashiwagi
California Energy Commission
1516 Ninth Street, MS - 18
Sacramento, CA 95814
Phone: (916) 654-5131
Fax: (916) 654-4423
e-mail: [email protected]
Borrower Administrator:
(Name)
(Contractor Name)
Address
Phone:

Fax:
e-mail:

Energy Commission Accounting Officer:

Molly Zhong
California Energy Commission
1516 Ninth Street, MS - 2
Sacramento, CA 95814
Phone: (916) 653-8555
Fax: (916) 653-1435
e-mail: [email protected]
Borrower Accounting Officer:
(Name)
(Contractor Name)
Address
Phone:

Fax:
e-mail:

Energy Commission Legal Notice:

Rachel Grant Kiley
Grants and Loans Manager
1516 9th Street, MS-18
Sacramento, CA 95814-5512
Phone: (916) 654-4379
Fax: (916) 654-4076
e-mail: [email protected]

6.C.4
Attachment: Loan Agreement_ECAA Funded Template (Funding Options for Solar Renewable Energy System at Arvin WWTP) Energy Conservation Attachment 1
Assistance Act (Revised 5/23/17) 1 ECAA Loan Application ATTACHMENT 1

ECAA LOAN APPLICATION

FOR ENERGY COMMISSION FINANCING
INTEREST RATE 1%

1. APPLICANT INFORMATION
Applicant/Legal Name:

Type of Entity: (please check one box)
 City  Special District
 County
 Public College or University (except
Community Colleges)
 Public Hospital / Public Care
Institution
 Other, please specify:
____________________
Mailing
Address: City: Zip:

Street
Address: City: Zip:

County:

Contact
Person: Title:

E-mail: Phone:

Tax ID #: Congressional District:

Name of Utility Providers:

Electric: Gas: Other:

How did you hear about the Energy Commission’s Loan Program? Circle one:

Energy Commission Website, Energy Commission Staff Presentation, Literature at Trade Show or Workshop, Utility Company, recommendation by another State agency, or Other (Specify):

2. PROJECT INFORMATION
A. Has applicant applied for, or expect to apply for any utility rebates/incentives?  Yes. Please complete Section B.
 No.

B. Source of Rebates/Incentives: ____________________________ (Approximate) Amount: __________________________________

3. PROJECT SCHEDULE
Estimated start date:

Estimated completion date:

4. PROJECT BUDGET
Total project costs: (include all labor engineering, construction, materials, equipment, inspection demolition (if applicable) and removal (if applicable, less equipment salvage value, (if applicable):
$
Loan amount requested from the Energy Commission:
$

5. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) COMPLIANCE A. Is there documentation demonstrating your compliance with CEQA?  Yes, Go to B.
 No, STOP: Please complete CEQA compliance documentation (see requirements in the Loan Notice and (See Attachment 4) before submitting application.

B. What finding did your governing body make? Measures funded by the loan are:
 Not a project. Describe why all measures to be funded by the loan are not CEQA projects, and analysis supporting the conclusion that the measures are not a project:
 Is a project, and is exempt: List applicable exemption:
__ Statutory (list code section): ________________
__ Categorical (list section from CEQA Guidelines): __14 CCR ______ Was a Notice of Exemption filed?  No  Yes
If yes, Date Filed: ______________
 Is a project that is not exempt? Applicant prepared the following environmental document:
__ Initial study + Negative Declaration

6.C.5
Attachment: Att1 Loan Application_ECAA 2017-05-23 (Funding Options for Solar Renewable Energy System at Arvin WWTP) Energy Conservation Attachment 1
Assistance Act (Revised 5/23/17) 3 ECAA Loan Application __ Initial study + Mitigated Negative Declaration
__ Environmental Impact Report
__ Other (describe)
Notice of Determination filed?  No  Yes Date Filed: _______________ Was a Statement of Overriding Considerations adopted?  No  Yes If yes, date: __________

6. APPLICATION DOCUMENTS
Please include all of the following:
 Completed Loan Application (Attachment 1)
 Summary of Energy Measures (Attachment 2)
 Feasibility Study/Audit (may be submitted in a CD or flash drive)  Utility Billing Data –Copies of 12-24 months of past energy data and rate schedules for electric, natural gas utilities, or other energy sources (unless utility billing data is included in the feasibility study).billing records from electric and gas utilities (unless included in the feasibility study).  Signed Resolution or Documentation on of Applicant’s Authority to enter into the loan agreement (see Attachment 3 for a sample Resolution)  CEQA Compliance Documentation (see Attachment 4 for more information)

7. CERTIFICATION
To the best of my knowledge and belief, I certify:
• The information in this application is correct and complete. • By signing this application, applicant is eligible to receive state funding under all applicable laws, including but not limited to Chapter 2.8 “Project Labor Agreements”, Part 1, of Division 2 of the Public Contract Code.
• By signing this application, applicant does not intend to close or otherwise dispose of the building within the simple payback.
• I have read, understand, and do hereby accept the loan agreement terms, and, further, I am willing to enter into an agreement with the Energy Commission according to the terms offered and will timely sign loan documents if the application is funded.

Name of Authorized
Representative:

Title:

Signature of Authorized
Representative:

Date: Phone: Email:

For Assistance:

Email: [email protected]
(916) 651-3747
(916) 654-4104

6.C.5
Attachment: Att1 Loan Application_ECAA 2017-05-23 (Funding Options for Solar Renewable Energy System at Arvin WWTP) Project Measures
Measure
Installation
Cost ($)*, **
Peak
Demand
Savings
(kW)
Annual
Electric
Savings
(kWh)
Annual
Natural Gas
Savings
(therms)
Annual Other
Energy Savings
(specify units)
Measure
Annual Cost
Savings ($)
EUL (years)
(EUL Considered
for 1% Loans will
be lesser of actual
EUL or 17 Years)
Measure
Cost Savings
over EUL ($)
Measure
Payback
(years)
Example 1: Install T8 lamps
and electronic ballasts $450,000 48 266,405 0 0 $50,617 15.0 $759,254 8.9 TOTAL $850,000 48 416,405 0 0 $79,117 $1,243,754 10.7
* Project Installation Cost shall include all labor, engineering, construction, materials, equipment, inspection, demolition (if applicable), and removal (if applicable) less equipment salvage value (if applicable). ** Loan amount will be lesser of $3 million, actual project cost, or total cost savings over the life of the project.

17.0 Example 2: Install PV
Panels $400,000 150,000 0 0 $28,500 $484,500 14.0
ATTACHMENT 2
Summary of Energy Efficiency Measures in Loan Request
For each application, list the project measures for which you are requesting a loan and identify the estimated savings, project cost and payback for each project measure. Columns, except for Measure Payback, should total at the end of the table. Insert more rows as needed.

6.C.6
Attachment: Att2 Summary of Energy Efficiency Measures in Loan Request (Funding Options for Solar Reso Auth Enovity Inc. / Veolia to submit Application for CEC Energy Conservation Assistance Act Loan.

Page 1 of 2 ends

Arvin City CouncilApril 25, 2023

Arvin City Council
April 25, 2023