Agenda — Arvin City Council, February 13, 2024 (part 2 of 3)

5.D.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Budget Amendments
540-7
Exhibit 2: Sample Budget Amendment Request
Council Approval
Requesting Department Fund Name Fund No.

Public Works Capital Outlay 400

REVENUES AND OTHER FINANCING SOURCES
Account Description Revenue Account No.

Amendment
Amount
Proceeds from Bond Sales 500,000
Transportation Impact Fees 325,000
TOTAL 825,000

EXPENDITURES AND OTHER FINANCING USES
Account Description
General Ledger No, Capital Project No. Amendment
Program Account Project Phase Amount
Street Resurfacing 90012 990 (165,000)
Mathews Property 90347 990 1,095,000
Acquisition 53900347 90550 885,000
Environmental Review 53900347 90557 25,000
Site Preparation 53900347 90555 35,000
Design 53900347 90552 50,000
Construction 53900347 90553 100,000
Because the net effect is
not zero, Council
approval is required.
930,000

PURPOSE
Funding for Mathews property purchase and improvements per Council approval of 11/3.

Department Head Date Director of Finance Date
City Manager Date Entered By Date

Page 1 of 1 ends

BUDGET AMENDMENT REQUEST

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Section 550-Budget Carryover
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Under the City's Financial Plan policies, annual appropriations for designated capital improvement plan (CIP) projects lapse after three years unless funds are subsequently appropriated for specific project phases (such as study, design, acquisition or construction). This usually occurs at the time of contract award.

The following sets forth basic procedures for implementing this aspect of the City's Financial Plan policies.

BUDGET BALANCE CARRYOVER
Budget balances at the end of each year will be carried over in their entirety on a project-by- project basis.

LAPSED PROJECTS
In the event that funding will lapse because sufficient progress has not been made in studying, designing, acquiring or constructing projects within the three-year timeframe following Financial Plan adoption, the managing department will either:
• Resubmit the project for consideration in a subsequent capital improvement plan. • Present a report to the Council recommending that the project be eliminated or indefinitely deferred. This report may be prepared on a "case-by-case" basis or incorporated into the overall budget review and approval process.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 560-1
City of
Arvin
Section 560-Monitoring the City’s Fiscal Performance

OVERVIEW
Staying on top of the City’s fiscal condition on an ongoing basis—on both the revenue and expenditure side of the equation—is an essential part of our overall strategy for preserving our fiscal health. The following summarizes how we report on this at the Council and staff level.

Core Principles
There are four core principles underlying our fiscal monitoring and reporting efforts:
 Strong Systems. We need to have an underlying financial management and internal control system that captures and produces both timely and reliable information (one without the other is worthless).
 Meaningful Reports. To be useful for policy makers and managers, this raw data then needs to be analyzed and summarized to answer the key question of: what’s it mean? And setting specific, periodic reporting goals and standards is one of the best ways of ensuring that this kind of analysis is in fact taking place. While this requires more time and effort, it is a critical organizational discipline.
 Timely, Open Reporting. Full, open, honest and straightforward disclosure of our fiscal condition on an ongoing basis—whether good or bad—to elected officials, senior managers, the organization at-large and the community is a fundamental precept for effective and responsible stewardship of the public resources that have been entrusted to us. In short, we may not always like results—but if we are doing our job, they should never be a surprise.  Organizational Responsibility. On the revenue side (especially in the General Fund), the Department of Finance & Information Technology plays the lead role in managing the City’s fiscal condition; on the expenditure side, Department Heads have the principal responsibility for ensuring that the City’s resources are used wisely and in accordance with adopted plans, policies, service levels and the resources allocated by the Council.

FISCAL HEALTH MONITORING
Council-Focused Reports
The following reports are provided to the Council on an ongoing basis, and except as noted, typically cover both revenues and expenditures. In all cases, these same reports are widely distributed within the organization; and several of these that have broad interest—such as our Sales Tax Newsletter, TOT Newsletter, Quarterly Financial Newsletter and Monthly Investment Report—are distributed externally to others and posted on our web site.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 560-2
◼ Financial Plan. This is the benchmark against which we measure our fiscal performance for revenues, departmental operating expenditures and CIP projects. And while this document primarily looks forward to the next year, it also includes detailed information about our fiscal performance for both revenues and expenditures for the prior five years. ◼ Financial Plan Supplement. Under the Financial Plan concept, appropriations in the next year’s plan are based upon the framework and foundation developed during the budget process.

Again, this report provides prior and current year information on the status of revenues, departmental expenditures and CIP projects.
◼ Mid-Year Budget Review. Prepared six months into each fiscal year, this is another opportunity to take a formal look at the City’s fiscal performance, and take corrective action as needed.
◼ Quarterly Financial Newsletters. In staying focused on the “big picture,” we issue a one- page Newsletter (okay, so it’s front and back—but it’s still one piece of paper) quarterly focusing on key fiscal performance indicators in the General and Enterprise Funds. This includes yearto-date revenues, expenditures and changes in fund balance, “Top 10” General Fund revenues (which account for about 95% of the total) and budget versus actual expenditures for each of the departments. The last quarter report serves as an Interim Annual Financial Report for the year pending issuance of the City’s Comprehensive Annual Financial Report. This Newsletter is also distributed electronically to allemployees.
◼ Comprehensive Annual Financial Report. This includes audited financial statements for all of the City’s funds, including budget versus actual for revenues and expenditures. More importantly, it includes a transmittal memorandum from the Director of Finance & IT that concisely analyzes key fiscal results for the year.
◼ Monthly Investment Report. This report shows the City’s cash and investment position for all funds held by the City and our trustees. The Investment Oversight Committee meets quarterly for a detailed review of the City’s investment performance and conformance with investment policies.
◼ Council Agenda Reports. In every Council agenda report, we assess the fiscal impact of the recommended action, including any budget shortfalls if applicable.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 560-3
Monitoring the City’s FiscalPerformance Page 3
Staff-Focused Reports
As noted above, City staff receive the same reports as those listed above. This is supplemented by more detailed reports as follows (which are also available to the Council upon request). ◼ On-Line Access. Through our network, up-to-date financial information is available on-line to everyone in the organization. This ranges from high-level summaries to detailed, individual transactions.
◼ Monthly Financial Reports. Even though data is available on-line, we produce and distribute detailed monthly financial reports to ensure that records are accurate and up to date. (This is one of those “organizational discipline” things.)
◼ Quarterly CIP Expenditure Status Reports. The CIP Review Committee meets at least quarterly to review the status of CIP projects. An important part of their role is to identify any problem areas with upcoming projects (and resolve them); and to ensure smooth coordination of complex projects. These detailed reports on the “project-to-date” budget and expenditure status of all CIP projects are to be distributed.
◼ Daily Cash Balance Reports. Every day we access the City’s bank cash balances on-line and compare them to our general ledger. While the primary reason for this is maximum investment of idle cash, it also keeps us on top of our cash position.

SUMMARY
There are two key aspects to our approach in monitoring our fiscal condition: we are committed to an ongoing program of collecting meaningful information and reporting on it; and then ensuring that this information is acted upon in a timely manner.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 561-1
Section 561-Monthly Financial Reports

OVERVIEW
In addition to providing up-to-date, on-line access to the City’s financial system, the Finance Division issues “hard copy” monthly financial reports to assist operating departments in monitoring their expenditures and revenues. These reports detail on a line-item basis year-to- date budget, expenditure and encumbrance information for each operating program and capital improvement plan (CIP) project. Similar information is provided forrevenues.

The purpose of these reports is to help identify erroneous postings and approved-but-unrecorded budget changes. It also helps identify any over-budget expenditures that must be corrected, either through internal reallocations or supplemental appropriations requiring Council approval.

POLICIES
Timely Financial Reports
Finance will issue monthly financial reports by the tenth working day of the month (except for June, when longer lead times are required to include year-end items).

Budgetary Controls
◼ Operating departments are responsible for ensuring that adequate funds are available within the object budget for the program (or phase level for CIP projects) before submitting payment vouchers and purchase orders to Finance for processing. ◼ Operating departments are responsible for addressing on a timely basis any budget totals that are over-expended at the object level within the operating program or phase level within individual CIP projects. For operating programs, object levels are:
• Staffing (See note below on additional staffing line-item control) • Contract Services
• Office Expenses
• Travel, Meetings and Dues
• Communications and Utilities
• Rents and Leases
• Insurance
• Operating Materials and Supplies
• Minor Capital Outlay

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 561-2
Monthly FinancialReports
Staffing. There is further line-item control within the following staffing object levels within the program:
• Regular staffing
• Contract staffing
• Temporary staffing
• Special staffing accounts (Such as Council/Commissions or Uniform Allowances) • Overtime (Note: Does not include detail sub-object codes for overtime within the program)
Corrective Action
◼ Operating departments are responsible for initiating corrective action for any problem areas.

There are generally two options for this:
◼ Submitting a memorandum to Accounting requesting a correction due to incorrect coding or posting of charges or receipts.
◼ Preparing a Budget Amendment Request.

Note. Depending on the circumstances, this may require City Manager or Council approval.

The guidelines for preparing and approving budget amendments are set forth in Section 540:

Budget Amendment Requests of the Financial Management Manual.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Section 565-Completed CIP Projects-Accounting
565-1

OVERVIEW
Under the City's capital improvement plan (CIP) budget policies, funding is approved for each CIP project by phase when the Financial Plan is adopted. Unless otherwise approved by the Council, appropriations for each phase lapse after three years if no activity is shown for the account.

As the project proceeds, there are a number of systems for monitoring its status, including on- line financial reports, formal monthly and quarterly financial reports, formal CIP status reports, ongoing CIP Review Committee review and comprehensive procedures for approving construction change orders as set forth in Section 225 of this manual.

The purpose of this section is to bring closure to the CIP project funding process by establishing procedures for accounting for completed projects.

GOALS
◼ Provide consistency in accounting for completed CIP projects. ◼ Improve financial reporting on the status of CIP projects and related effects on theCity’s fiscal condition.
◼ Assure timely and consistent filing of notices of completion for construction projects. ◼ Identify responsibility for approving the use of budget balances from completed projects.

PROCEDURES
Filing of the Notice of Completion for Construction Projects Upon completion of construction project work specified in the contract, the City Engineer will forward to the City Manager the Notice of Completion for signature. The Notice will then be filed with the County of Kern within 10 days of the last day of work on the project to begin the formal notice for liens against the project for materials and labor.

Reporting on Completed Projects
Upon completion of each project, the managing department is responsible for preparing a City Manager Report summarizing its final status. Generally, reports are only required upon the completion of the construction phase and should encompass all phases of the project. However, if the project is not expected to go beyond the study, design or acquisition phase, the report should be prepared upon completion of the furthest phase. Reports should:
◼ Briefly summarize the purpose of project.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Accounting for Completed CIP Projects
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◼ Discuss any unusual circumstances or difficulties in completing the project and recommend corrective action for the future if appropriate.
◼ Compare estimated and actual completion dates.
◼ Compare the project budget with actual costs. This comparison should provide sufficient detail to meaningfully summarize key expenditure areas and project phases. ◼ Summarize the status of any outside funding sources such as grants, loans, donations or developer agreements.
◼ Identify any outstanding encumbrance balances that should be closed once final contract payments are made.
◼ Request authorization for a budget amendment request transferring any remaining budget balances to or from the fund’s completed or master project account. Processing of the budget amendment request will follow upon completion of the claim period for constructionprojects.  Note: This account is established in each fund in order to account for net budget balances resulting from completed projects. This balance is available to fund new projects or offset shortfalls in existing projects, subject to Council or City Manager approval as discussed below.

Roles and Responsibilities
◼ City Council. Approval by the Council is required for all transfers from the completed projects account for any new projects as well as for any existing project when the transfer amount exceeds the City Manager’s purchasing authority.
◼ City Manager. The City Manager is authorized to make transfers to and from the master project or completed projects account for existing CIP projects. The City Manager’s authority to transfer balances from this account is limited to amounts otherwise within his or her purchasing authority.
◼ City Engineer. Public Works is responsible for ensuring that notices of completion for construction projects are appropriately filed.
◼ Department of Finance & Information Technology. The Finance Division is responsible for reviewing completed project reports for fiscal accuracy; processing the approved budget amendment request and ensuring that project budget balances on the next monthly financial report will be zero; reducing encumbrances as recommended by the managing department and ensuring that encumbrance balances will be zero after any final project contract payments are made; and ensuring that projects completed by the end of the fiscal year are not carried over into the next fiscal year.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Accounting for Completed CIP Projects
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◼ Operating Departments. Upon completion of a CIP project assigned to them, operating departments are responsible for completing timely and accurate City Manager Reports summarizing the project's final status as discussed above. A sample report is provided in Exhibit A.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Accounting for Completed CIP Projects
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SAMPLE STAFF REPORT-CIP COMPLETION
August 16, 200X
FROM: CITY ENGINEER
SUBJECT: PROJECT COMPLETION: SMOTHERMON SPRAY PARK
The purpose of the Laguna Lake dredging project was to mitigate flooding damage and improve recreational use of the lake by removing sediment that had built up over time. Prior to this project, the lake had never been dredged in its entirety, although there had been limited dredging of the Park Sump area on a periodic basis.

Unusual Circumstances or Difficulties
The primary difficulties in completing this project—mitigating environmental concerns and identifying appropriate methods for disposing of dredged materials—were identified and resolved during the study and design phases. No significant difficulties were encountered during construction. This project was scheduled to be completed within 150 days after authorization to proceed; construction was completed within 148 days.

Project Budget Summary
Original
Budget
Budget As
Amended Actual Variance
Study 50,000 39,000 39,000 -
Design 30,000 27,000 25,000 2,000
Construction
Bid Amount Change 230,000 225,000 225,000 -
Orders Other Project 25,000 15,000 10,000
Costs* 5,000 5,000 3,500 1,500
Construction Management 15,000 15,000 12,500 2,500
TOTAL 330,000 336,000 320,000 16,000
* Soils reports; materials testing
Status of Funding Sources
◼ Grant funds for this project were awarded in the amount of $125,000 (50% of construction costs). Because construction costs were less than budgeted by $10,000 ($240,000), $120,000 is the total grant eligible amount. To date, $100,000 has been requested, and of this amount, $75,000 has been received. Upon final payment to the contractor, the remaining balance

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Accounting for Completed CIP Projects
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($20,000) will be requested. No problems are anticipated in receiving the total eligible amount.
◼ Zone 9 contributed a fixed amount of $50,000 for this project. All funds have been billed and received.

The following is a brief overview of the final funding for this project:

Project Funding Summary
Original
Budget
Budget As
Amended Actual Variance
General Fund 155,000 161,000 150,000 11,000
Zone 9 50,000 50,000 50,000 -
Federal Grant 125,000 125,000 120,000 5,000
TOTAL 330,000 336,000 320,000 16,000
Because $5,000 of the $16,000 in project savings is allocable to grant funding, only $11,000 is recommended for transfer to the completed projects account in the Capital Outlay Fund.

Correspondingly, the budget estimate for grant revenue in the Capital Outlay Fund should be adjusted downward by $5,000. (See attached budget amendment request).

Contract Status
Original
Contract
Change
Orders
Total
Costs*
Contract
Balance
Wepus Management 15,000 - 12,500 2,500
Smith Construction 225,000 15,000 240,000 -
SSN Associates 27,000 - 25,000 2,000
* Including final payments that will be processed within the next 30 days pending publishing the notice of completion.

Combined with the attached budget amendment request, reducing the Wepus Construction Management and SSN Associates encumbrance balances as indicated above should result in "zero" balances for all phases of this project.

ATTACHMENTS
◼ Notice of completion
◼ Budget amendment request closing project balances

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 601-1
Section 601-Key Accounting Policies & Procedures
The purpose of this section is to describe the City's key accounting policies and procedures. Areas currently covered include:

Correction of Payroll Payment Errors (Section 631)
Approval authorizations (Section 635)
Procedures to be used in accounting for the costs of disaster response and recovery (Section 650) Security deposits such as guarantees, letters of credits, certificates of deposits, promissory notes, and performance bonds (Section 670)
Future areas that will be covered include:

Significant accounting policies
Purpose and preparation approach of the cost allocation plan Payroll procedures (timesheets, personnel actions, periodic reports, schedules) Accounts payable (voucher preparation, purchase orders, schedules)

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Section 631-A-Payroll Procedures – Corrections of Payments Although the City strives to ensure that employees are correctly paid with every paycheck, from time-to-time payment errors will happen. The following sets forth the City’s policy for correcting underpayments and overpayments to our employees.

Underpayments
Immediate Correction. Underpayments will be corrected through a one-time payment to the employee on the next paycheck after the error has been identified and the correct amount of the retroactive payment has been calculated.

Interest If One-Year or More. If the underpayment has occurred for one year or more, the City will pay interest on the underpayment based on the interest rate earned by the City during that same period on its investments placed in the Local Agency Investment Fund (LAIF). Due to its “de minimus” affect, no interest will be paid on underpayments that occurred over less than one year.

Overpayments
Installment Payment Option Via Payroll Deduction. When an employee has been overpaid, the full amount of the overpayment is due to the City. The City will offer the employee the option, via payroll deduction, to repay the amount of the overpayment up to the same period of time that the overpayment occurred. For example, if an employee was overpaid $1,000 for six months (13 payroll periods), the employee will have the option of repaying this amount in 13 payroll period installments of $76.92 each. (Employee may choose a shortertimeframe).

To exercise this option, employees must authorize the deduction in writing. They must also agree in writing to authorize the City to deduct any outstanding balance in a lump sum from their final paycheck if employment with the City is terminated before the total amount of the over-payment is collected. Further, they must agree in writing that in the event that their final paycheck is not enough to cover any outstanding balance, they will pay the City any amounts due in a lump sum on their last day of employment with theCity.

One-Time Payment. In the event that the employee does not agree to have voluntary payroll deductions to reimburse the City, the total amount of the overpayment, once it has been calculated by the City, will become immediately due and payable in full. The City will then invoice the employee under its standard accounts receivable process. In seeking recovery ofthe overpayment, the City will use its full range of collection options, including court action, to ensure that the City is fully reimbursed for the overpayment.

No Interest on Overpayments. The City will not charge interest on overpayments, either for the period of time that the overpayment occurred, or for the period of time over which installment payments will be deducted.
631-1

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Section 631-B-Timecard Approval Authority

OVERVIEW
The City provides significant discretion to department heads in approving timecards. The purpose of this policy is to provide organization-wide guidance to department heads in delegating timecard approval authority.

POLICY
Authorized Employees
Department heads should only delegate timecard approval to the following City staff members:
□ Division managers
□ Program managers and supervisors
Department heads should limit timecard approval authority to those areas where the employee is knowledgeable about the transaction and is able to attest to the accuracy of the hours worked.

Further, the timecard approval should be consistent with the employee's overall scope of duties and responsibilities.
631-2

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Section 635-Purchase & Payment Approval Authority

OVERVIEW
The City provides significant discretion to department heads in approving payments, and in delegating this authority to others in their department. The purpose of this policy is to provide organization-wide guidance to department heads in delegating purchase and payment approval authority.

POLICY
Authorized Employees
All purchases $30,000 or more require a formal bid and City Council approval, unless All purchases of $15,000 to $29,999 will require informal bids, City Manager approval. If the City Manager is unavailable, then the Finance Director may sign in his place, but must notify the City Council at the next scheduled meeting.

All purchases between the amounts of $5,000 to $14,999 will require informal bids, City Manager approval or Finance Director approval, and the approval of the Department Director or Division Supervisor.

All purchases between the amounts of $4,000 to $4,999 will require Finance Director approval and the approval of the Department Director or Division Supervisor.

All purchases between the amounts of $1,000 to $3,999 will require the approval of the Department Director or Division Supervisor or Finance Director.

All purchases between the amounts of $500 to $999 will require the approval of the Department Director or Division Supervisor.

All items up to the amount of $499 will require the approval of the Department Director or Division Supervisor.

Department heads should only delegate purchase and payment approval to the following City staff members:
□ Division managers
□ Program managers and supervisors
□ Formally designated department fiscal officers
Department heads may delegate approval to other staff members, but this requires City Manager approval.
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Department heads should limit purchase and payment approval authority to those areas where

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) the employee is knowledgeable about the transaction and is accountable for the use of City funds. Further, the purchase or payment approval amount should be consistent with the employee's overall scope of duties and responsibilities.

Written Delegation of Authority
All approval authorizations by the Department Head will be in writing and filed with Accounting.

In addition to identifying the employee and her or his position, the authorization will also identify any program account number and amountlimitations.

ATTACHMENT
Sample Approval Authorization Form is below.
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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Department Department Head Approval Date
Public Works Julia Hernandez 2-15-17
Employee Name Signature As You Sign Approvals Program Acct No’s Dollar Limit (If Any) City Manager Approval (If Required) James Logan All None
Roy Hashimoto 50300, 50310,
50320, 50330,
None
Sara Elspeth 50200, 50220 None
Jane Gonzales All None
Ann Salinas 50200 None
Mary Ann Smith 50600 To $5,000 Naomi Stein
Bill Mifune 50700 To $1,000
635-3
Sample

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] Section 650-Disaster Response Accounting Procedures
650-1

OVERVIEW
From the moment the State or the City declares a “state of emergency” in the event of natural disasters, technological incidents or national security emergencies, special accounting procedures are implemented. In order to ensure maximum cost reimbursement from the Federal Emergency Management Agency (FEMA) or the State Office of Emergency Services (OES), expenditure information must be captured in a format approved by these agencies. Disaster- related activities must be accounted for separately from normal activities and captured by damaged site orDamage Survey Report (DSR). Each damaged site has the potential to generate one or more DSR’s.

Therefore, accounting for activity by location is essential.

The types of cost activities that must be captured include:
• Staff labor hours (regular and overtime) by location and description of work performed.

Only overtime and related benefits are reimbursable for sworn personnel. • Equipment hours and cost of rented equipment, by location. • Cost of materials used and purchased, by location.
• Equipment damaged or destroyed and the cost to repair or replace it, by location. • Vendor services or materials acquired under purchase orders, contracts, or pre-existing agreements, by location where the services or materials were used. • Contracted construction services and costs by site.
• Cost of consultant services and specific purpose of work performed.

POLICIES
It is the City’s policy to:
• Identify the costs of responding to emergencies and recovery from disasters as accurately as possible.
• Receive maximum allowable reimbursement for eligible emergency response and disaster recovery costs.

ROLES AND RESPONSIBILITIES
• Operating Departments. The primary responsibilities for initiating expenditures and identifying and maintaining cost information rest with the operating departments.Procedures for doing so are outlined below.
• Finance. The Finance Department is responsible for establishing cost accounting procedures, coordinating the collection of cost information and preparing this information in a format acceptable for reimbursement by state

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
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and federal agencies. On an as-needed basis, Finance will conduct briefings with key staff on emergency response and disaster recovery accounting procedures.

PROCEDURES
Account Number
The City has established program number 238-054 (Emergency Services) to account for all disasterrelated expenditures. The normal fund/object/sub-object numbers should be used.

Form Preparation
The following forms should be prepared by the operating departments and submitted to Finance in order to maintain sufficient documentation for cost recovery:

A. Emergency Services Individual Time Sheet Supplement. In addition to our regular time sheet, each non-sworn employee working during emergency operations must complete a time sheet supplement that details the location and description of the work done related to the emergency (sworn overtime hours will be captured from the City’s regular timecards). Regular and overtime hours must be recorded separately. Each supervisor is responsible for accurately reviewing, completing and approving the time sheet supplement. The information from the supplements will be compiled by Finance & IT in the format required by FEMA. The location and description sections are very important to ensure reimbursement.

All overtime (sworn or non-sworn) should be charged to program account 238-054 on timesheets. Additionally, regular hours incurred by temporary employees should also be charged to program account 238-054.

B. Force Account Equipment Record. This form was designed by OES and is required for reimbursement for the use of City-owned equipment. A separate form should be completed for each specific location where City-owned equipment was used. Operating departments are responsible for providing the following information on each form:
• Location of work • Description of work
• Timeperiod • Prepared by
• Date prepared • Type of equipment
• Cityequipmentreferencenumber • Date and hours used
Finance & IT will complete the rate and cost sections along with assigned FEMA/OES reference, DSR, job site and category numbers.

C. Rented Equipment Record. This form was also designed by OES and is required for reimbursement of rental equipment costs. A separate form should be completed for each specific location where rented equipment was used. Operating departments are responsible for completing this form with the exception of OES and FEMA reference, DSR, category and job site numbers, which will be completed by Finance & IT. Additionally, Finance & IT will verify pricing from accounts payable records.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
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D. Materials Record. This form maintains a record of materials and supplies purchased by the location where they were used. Operating departments are responsible for completing this form with the exception of OES and FEMA reference, DSR, category and job site numbers.

Additionally, Finance & IT will verify the pricing from accounts payable records.

Avoid paying for supplies or services with petty cash; most vendors, especially those that the City uses on a regular basis will extend their normal order and payment terms to the City. Use an emergency purchase order (see below) for those vendors who won't extend credit at the time of purchase. The Multi-Hazard Emergency Response Plan, Part 3, lists vendors with whom the City has emergency purchasing agreements. If cash is required beyond amounts readily available from departmental petty cash balances, contact Finance & IT for assistance.

E. Emergency Purchase Order. Finance & IT has a supply of emergency purchase orders that can be used when a vendor is reluctant to extend payment for emergency purchases without formal, written authorization. Each fiscal officer is assigned a limited supply of emergency purchase orders for use by their department, if required. Additional supplies of emergency order forms are available at the Emergency Operation Centers (Police Station and Corporation Yard) as well as the Headquarters Fire Station and Finance & IT.

Payment Processing
To the maximum extent feasible, the City's normal payment processing procedures should be followed. This means that vendor invoices for ordered supplies, materials, equipment, rentals and services should be sent to the operating department and a voucher prepared for payment accordingly. It is important that the vouchers:
• Use program account 238-054 and the appropriate fund and object/sub-object code.
• Describe the purpose of the purchase.*
• Identify the location where the purchase items orservices were used.*

EXHIBITS
A. Emergency Services Individual Timesheet Supplement
B. Force Account Equipment Record
C. Equipment Rental Record
D. Materials Record
E. Emergency Purchase Order
* This information can be
annotated on the invoice or
described in the voucher
as appropriate. This is
especially important for
services, as the accounts
payable documentation will
be our sole support for
those costs.

CITY OF ARVIN

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CITY OF ARVIN

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Materials Record

CITY OF ARVIN

EMERGENCY PURCHASE ORDER

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OVERVIEW
It is customary to require members of the public to furnish security deposits to guarantee the performance of acts or agreements related to private construction projects.

Since January 1, 1986, the City has been required to pay interest on all cash deposits for security purposes that are banked or invested (Government Section Code 53079). The statutory formula for computing interest due is complicated and additional effort is required to ensure these deposits are properly managed and controlled. Accordingly, City staff determined that the public could be better served by eliminating the use of cash or cash-like deposits as security to guarantee work or services and to develop policies and procedures to allow non-cash security deposits.

The following policies and procedures have been prepared in order to provide guidance on the administration of construction security deposits for private projects. (Policies and procedures for City construction projects are not addressed in this section).

POLICY
A. No cash or cash equivalent deposits (such as personal or cashier checks) will be accepted as security when required to guarantee the performance of any act or agreement related to a private construction project.

B. The following forms of guarantee are acceptable security deposits:

1. Certificates of deposit (any amount)

2. Letters of credit (any amount)

3. Promissory notes (less than $1,000 under conditions provided in this policy)

4. Unconditional guarantees or notes issued by certain institutions (any amount) It is the City's preference not to use performance bonds as security deposits. However, if an applicant cannot provide a letter of credit or certificate of deposit, this form of security may be considered at the sole discretion of the City Manager.

C. The guarantee form provided in Exhibit A must accompany all certificates of deposit, letters of credit and promissory notes.

1. Guarantees will not be accepted for amounts less than $100, and all guarantees shall be rounded to the nearest $100.

2. Guarantees for letters of credit will expire no sooner than 90 days before the expiration date of the letter of credit. (Promissory notes and certificates of deposit do notexpire.)

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D. Security deposits must meet the following standards to beacceptable:

1. Certificates of Deposit (must be accompanied by guarantee form) Certificates must be made out on a form that clearly identifies the Payer bank and an unconditional promise to pay the City of Arvin.

2. Letters of Credit (must be accompanied by guarantee form) Irrevocable letters of credit will only be accepted when issued by a Federal or State chartered bank or savings and loan institution. The City reserves the right to qualify any institution based upon the current financial position of that institution. Irrevocable letters of credit for general purposes must appear in substantially the same form as provided in Exhibit B.1. An irrevocable letter of credit for subdivisions must appear in substantially the same form as Exhibit B.2 to comply with the requirements of the Subdivision Map Act. As a minimum, this means that the letter of credit must indicate:
a. By its title, it is irrevocable.
b. City of Arvin must be the beneficiary.
c. Entire sum is available to the City upon written demand. d. Letter is issued in accordance with and shall be interpreted in accordance with Division 5 of the California Commercial Code.
e. The timeframe should be based on a reasonable period for completion of the work scope and must remain valid for at least one year from its issue date. f. No mention of the project or work that is being guaranteed may appear in theletter.

3. Promissory Notes (must be accompanied by guarantee form) Promissory notes are acceptable only for deposits of $1,000 or less. The promissory note must be prepared in the format shown in Exhibit C. Acceptance of a promissory note is not required; the responsible department may refuse the depositor's promissory note under the following circumstances:
a. Within the past 12 months, the depositor has given the City a check that was subsequently dishonored.
b. Within the past 24 months, the depositor has failed to complete a construction project for which security was given.
c. The department involved has verified that a stop notice or mechanics lien has been filed against the depositor, and has developed into a civil suit filed in a Superior Court within the State of California.
d. The depositor has a primary business or home address outside the County of Kern.

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All promissory notes signed by a corporate officer on behalf of the corporation shall also be signed by the same individual as a guarantor of the note.

4. Unconditional Guarantees or Notes Issued by Certain Institutions The instruments listed above are issued by bonding companies or financial institutions and may be accepted if they include an unconditional promise to pay upon demand to the City the sum of the deposit. All such instruments shall be reviewed by the City Attorney before acceptance.

As noted above, it is the City's preference not to use this form of security, but it may be considered depending upon the circumstances of the work to be performed and our prior experience with the applicant and the issuing institution. Acceptance of this form of guarantee is at the sole discretion of the department.

E. The following types of security shall not be acceptable:

1. Passbooks purporting to pledge a savings account.

2. Any document, otherwise acceptable, which makes the City and the depositor joint tenants or co-owners of payment rights.

3. Any document, otherwise acceptable, which requires that the City first establish, as a condition to collection, that the depositor has failed to satisfactorily complete the act or work guaranteed.

4. Cash.

5. Personal checks or cashier checks.

PROCEDURES
Responsible departments will ensure the following procedures are used in processing guarantees for certificates of deposit, letters of credit and promissory notes:

A. Certificates of Deposit (Any Dollar Amount)

1. Certificates of deposit will be made in the name of the City of Arvin only. Be sure there is an automatic renewal. They cannot expire.

2. A guarantee form will be completed with the pink copy attached to the certificate of deposit (Exhibit A).

3. Original certificates of deposit and the pink copy of the guarantee form will be held by the Department in a locked file cabinet or other secure location. The department may make additional copies for internal purposes, but they must be clearly marked“copy.”

4. The yellow copy of the guarantee will be given to the applicant. The original or white copy of the guarantee is a file copy.

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5. The responsible Department will prepare a notification letter approximately two weeks to one month prior to scheduled completion of the work, notifying the guarantor of the work requirements (Exhibit D).

6. If the guarantor does not complete requirements, a copy of the notification letter will be sent to the City Attorney for further action.

7. When the guarantor completes all work as required, the responsible department will release the certificate of deposit to the guarantor. The back of the certificate of deposit should be endorsed back to the guarantor in the following manner:

Pay to the order of (guarantor's name)
On behalf of the City of Arvin
By: (authorized staff)
(staff's title)
B. Letters of Credit (Any Dollar Amount)

1. Letters of credit must be in the approved format (Exhibit B.1 or B.2 depending on if letter of credit is for general purposes or for subdivisions).

2. Processing is the same as certificates of deposit for items 2 through 6 as describedabove.

3. When the guarantor completes all work as required, the responsible department will release the letter of credit to the guarantor. No endorsement isrequired.

C. Promissory Notes ($100 to $1,000)

1. Promissory notes (Exhibit C) must be signed by the property owner. If the property owner is a corporation or partnership, the note must be signed by an official of the organization named. The note should be witnessed by a City official; however, when this is not possible, notes must be notarized.

2. Other processing requirements are the same as letters of credit.

EXHIBITS
A. Guarantee Form
B. Sample Irrevocable Letter of Credit

1. General Purposes

2. Subdivisions
C. Promissory Note Form
D. Sample Reminder letter to Guarantor to Complete Work E. Sample Release of Guarantee

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Construction Security Deposits
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ExhibitA

GUARANTEE TO THE CITY OF ARVIN

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(Bank letterhead) Exhibit B-1

LAST BANK OF ARVIN
August 25, 1990 Reference Number (if any)

IRREVOCABLE LETTER OF CREDIT
Last Bank of Arvin, being a financial institution, which is subject to regulation by the State of California or by the federal government, as insurer of the Irrevocable Letter of Credit, on behalf of its customer, XYZ Enterprises, hereby establishes this Letter of Credit in favor of the below named beneficiary:

THE CITY OF ARVIN
in the amount of Twenty Thousand and No/100 Dollars ($20,000) payable upon written notice from the beneficiary through its Director of Finance & Information Technology that the entire sum, or a portion thereof is due.

This Credit is available in portions at the discretion of the beneficiary. This Credit is nontransferable and non-assignable. This Letter of Credit is issued in accordance with and shall be interpreted in accordance with Division 5 of the California Commercial Code (Section 5101, et seq.) and the rights of all parties shall be governed hereby.

This Credit will expire at midnight on March 1, 1992. Demands for payment received after this date will not be honored and will be considered null and void.

Dated this 25th day of August 1990 at Arvin, California. LAST BANK

OF ARVIN
BY:

Corporate Officer

XYZ ENTERPRISES
BY:

General Partner

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Exhibit B-2
The undersigned agrees that said funds are trust funds on deposit and guaranteed for payment and that upon receipt of written demand, signed by the City Engineer of the City of Arvin, the undersigned shall immediately pay said funds or such amount thereof as shall be set forth in said demand, to the Finance Director of the City of Arvin to be used for the purpose set forth above.

City of Arvin
200 Campus Dr.

Arvin, CA 93203

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Construction Security Deposits
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ExhibitB-2
Dated at Arvin, California, this day of , 20,
Bank of America
Arvin, CA
Dated at Arvin, California, this day of , 20,

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Construction Security Deposits
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ExhibitC
Issued to:

The City of Arvin, Payee
(hereafter “City”)
by

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Exhibit D

CITY LETTERHEAD
October 27, 1990
XYZ Enterprises
120 North Street
Cambria, CA 93444
SUBJECT: COMPLETION OF IMPROVEMENTS
Dear Mr. Smith:

On August 25, 1990, you agreed to complete the installation of landscaping at 1234 Restful Drive within 90 days. This time period expires November 23, 1990. If the work has not been completed by this date, we will refer this to the City Attorney for action to collect on your [Certificate of Deposit or Letter ofCredit].

If the landscaping has been installed, please contact Mary Smith at 781-7170 so that she may inspect the property to verify that the work has been completed as required. After verification, we will release your [Certificate of Deposit or Letter of Credit].

Sincerely,
Joe Doe
Public Works cc:

Mary Smith

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CITY LETTERHEAD
Exhibit E
November 5, 199X
XYZ Enterprises
120 North Street
Cambria, CA 93444
SUBJECT: RELEASE OF GUARANTEE AND SECURITY
The improvements required at 1234 Restful Drive have been completed and accepted by the City.

Accordingly, the release of your Certificate of Deposit in the amount of $20,000 is hereby authorized for release.

Please contact Mary Smith, at 781-7170 to arrange for the return of your Certificate of Deposit.If we do not hear from you within the next ten days, we will simply mail the Certificate of Deposit to you.

Sincerely,
Joe Doe
Public Works
cc: Mary Smith, Project Manager

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 701-1
Section 701-Admin Policies – Financial Operations
The purpose of thissectionis to provide key excerpts of existing administrative policies and procedures that affect the City's financial operations.

Areas currently covered include:
□ Mail processing guidelines (Section 715)
□ Copying management policies (Section725)
□ City Manager Report preparation (Section735)
□ Grant management policy adopted by the Council on August 16, 1994 (Resolution No.8322) (Section 740)
□ Employee use of City property (Section750)
□ Donation policy (Sections760)
□ PEG access funds policy (Section770)

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OVERVIEW
The purpose of these guidelines is to set forth standards, responsibilities and procedures for processing postal service mail.

RESPONSIBILITIES
In-House Mail Processing
□ The Police Department is responsible for in-house processing of postal service mail at the Police Station.
□ The City Clerk is responsible for in-house postal service mail for all other departments. □ Departments are responsible for dropping-off and picking-up postal service mail at CityHall.

ACCOUNTING FOR MAILING COSTS
◼ In-House Mail Processing. The Support Services budget managed by the City Clerk is responsible for all general postage costs for normal services. The cost for any “very large” mailings that should otherwise be processed through USPS will be charged to the initiating department. (Note:

As discussed above, any mailings of 100 pieces or more require prior arrangements with the City Clerk.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) City Manager Report Preparation
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Section 725-Copies - Policy

OVERVIEW
This policy addresses the City of Arvin’s document reproduction program, both in- house and offsite. The purpose of the policy is to ensure that documents are reproduced in an efficient and effective manner. The policy will take effect upon approval of the City Manager and will be reviewed whenever the off-site copy contract is renewed. The policy will be administered by the Department of Finance & Information Technology (IT).

POLICY
A. In-House Copying Volume Guidelines
Generally, it can be more cost effective to send copying services to off-site copying services.

Therefore, copying of documents requiring 10 or more copies of a single sheet and not needing the copies for 6 to 24 hours, should be sent out. Labor, equipment and maintenance factors make this more economical and efficient. For immediate copying needs, the City will provide for a least three operational levels of walk-up copiers for use within individual department and divisions as set forth below:

Large Copiers 50 copies or under
Medium Copiers 30 copies or under
Small Copiers 10 copies or under
B. Acquisition of In-House Copiers

1. Funding for all copier acquisitions will come from either Capital Improvement Plan or the Support Services operating program, consistent with Financial Planpolicies.

2. During the analysis of copier needs and bid evaluations, cost will only be one factor among many to be considered.

3. The choice of lease, rent, lease/purchase or purchase will be used for each copier acquisition as best benefits the City in each situation.

4. The Department of Finance & IT will establish and administer a replacement cycle policy for all copiers.

C. Standard Specifications forCopiers
There are four levels of copiers which will be considered for use by the City. At the time that need for a new copier is established, an analysis of the specific user requirements will be done to determine which category is appropriate. The levels are:

1. Very High-Speed Volume. Target use: centralized copy services for Citywide copying. Target volume per month: 50,000 copies and up. As long as the City makes extensive use of off-site copying, it is unlikely that there will be an on- site need for this level of copier.

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2. High Speed Volume. Target use: central copy site for large number of users; multiple divisions and department; high volume and quick turnaround time needs. Target City volume per month: 25,000 to 50,000 copies. Industry rating: 50,000 copies/month.

3. Medium Volume. Target use: divisional or isolated site main copier. Target City volume per month: 5,000 to 25,000 copies. Industry rating: 30,000 copies/month.

4. Low Volume. Target use: secondary copier in department or site with high demand for more than one copier, or an isolated site with the need for very simple single sheet copying. Target City volume per month: up to 5,000 copies. Industry rating: 10,000 copies/month.

D. Management and Operation of In-House Copiers

1. Management. The City Clerk will manage the City's on-site copy equipment. This includes developing copier policies, receiving new copier requests, coordinating the analysis and procurement of any and all copiers, coordinating trouble calls, managing maintenance agreements, monitoring copier usage and coordinating key operators.

2. Maintenance. All copiers owned, leased, or rented by the City will be covered by a third-party maintenance agreement provided by a vendor certified to work on the specific machine's brand.

3. Operation. Each copier will have at least one “key operator” appointed by the Department Head of the department, division, or site, who is the main user of the equipment. The key operator will be thoroughly trained in the use and routine maintenance of the copier, and will be responsible for:
a. Performing routine weekly maintenance and cleaning.
b. Serving as the user’s main contact for problems encountered with the equipment. c. Calling the maintenance vendor for service when problems are encountered. d. Informing the Department of Finance & IT of severe or repetitive equipment problems.

4. Supplies. The City Manager will designate a department responsible for bulk ordering of consumable supplies such as paper and toner. ALL copier sites will use supplies ordered by this department. Each site’s key operator will be responsible for arranging delivery of supplies to their copier.

E. Management of Off-Site Copy Contract
The City Clerk will be responsible for implementing and administering the off-site copy contract.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) City Manager Report Preparation
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Section 735-City Staff Report Preparation

OVERVIEW
The City Staff Report format and review process should be used whenever this level of approval is required to authorize an administrative decision or action with significant management or policy implications. Examples include approving bid or request for proposal (RFP) documents, awarding contracts and purchase orders, and approving other policy items such as department organization changes, position reclassifications, filling vacant positions if a “hiring freeze” is in effect and budget amendment requests if they require City Managerapproval.

CITY STAFF REPORT PROCESS
Attached is a sample City Staff Report, which should accompany all:
• Clearly identify reports or documents requiring the City Council’sapproval. • Summarize key information regarding the request.
• Ensure that any required supporting documentation is provided. • Facilitate report review and routing.
• Reduce report preparation efforts.

As discussed below, completing this form may be the only “report” preparation required in many circumstances.

Form Overview
This one-page form has the City logo and is addressed to the City Council. Since it is a simple one-page document that uses standard bond paper, copies can be easily made by the department.

Preparation and Processing Guidelines
Completing this form is largely self-explanatory. The following highlights key concepts in the City Manager Report process.
• Although the City Staff Report should be used for significant policy approvals by the City Council, its largest use is in conjunction with the City’s formal bid or RFP process. • Initiating departments are responsible for using good judgment in determining when review and coordination are necessary.
• Reviews of the report are made by the Finance Director, the City Attorney, the City Clerk and the City Manager before it can be placed on the Council Agenda. • Administration is responsible for distributing reports as appropriate after they are approved.

CITY STAFF REPORT FORMAT AND CONTENTS
Format

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See the attached example for the format used in order to present a consistent format for the City Council.

Contents
Whenever a formal City Manager Report is required, it should include the same information organized in the same manner as Council Agenda Reports summarized as follows:
• Subject
• Background/Discussion (with appropriate sub-headings if necessary) • Report-in-Brief (if the report is over five pageslong) • Alternatives (when appropriate)
• Fiscal Impact
• Recommendation
No approving signature lines are required.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 740-1
Section 740-Grant Management

OVERVIEW
With state takeaways and continued decreases in key General Fund revenues, grant revenues have become an even more important part of the City’s overall resource picture, especially in funding capital improvements. Although grant programs themselves are being reduced and becoming more competitive, actively seeking out grant revenues that assist in achieving identified City goals and objectives should nonetheless play a key role in the City’s overall financial health strategies.

The purpose of this policy is to set forth an overall framework for guiding the City’s use and management of grant resources.

In addition to the goals, general concepts and framework. Topics listed immediately below, the City adopts and will follow the model Grant Management - Grant Funding and Compliance Policy.(included as an attachment “A” at the end of section 740) when applying for and requesting reimbursements for any grants funded by Caltrans.

GOALS

1. Set forth the importance of grant programs in accomplishing City goals and objectives.

2. Establish general concepts and framework for seeking and managing grant programs.

3. Identify roles and responsibilities in managing grant programs.

4. Establish criteria for evaluating the benefits and costs of grant programs.

5. Set forth the City’s policy in complying with Single Audit Act requirements.

GENERAL CONCEPTS AND FRAMEWORK

1. The City will aggressively pursue grant funding from federal, state and othersources, consistent with identified City goals and objectives.

2. Aside from entitlement grants, the City should focus its efforts on securing grants for capital improvements. This approach will allow the City to compete for projects we might not otherwise be able to afford while maintaining financial independence should future grant sources diminish. Grants for operating purposes may be considered on a case-by-case basis after careful consideration of the benefits of the program and the ongoing impacts on the City if grant funding is no longer available.

3. The City will only seek grants when sufficient staff resources are available to effectively administer the program in compliance with grant requirements and successfully perform the grant work scope.

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4. Indirect costs of administering grant programs will be recovered to the maximum extent feasible.

5. Operating departments have the primary responsibility for seeking out grant opportunities, for preparing effective grant applications and for successfully managing grant programs after they have been awarded.

6. Operating departments should develop a simple system that tracks grant funding availability in their functional areas. Using this system, all capital improvement plan budget requests will evaluate and document the ability of grants to assist in funding the project. a. The methods of payment should be clearly defined in each proposal. (Per Caltrans CAP Letter to the city dated April 17, 2020 item 7.c.)

ROLES AND RESPONSIBILITIES
City Council

1. Approves grant management policies.

2. Approves all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager if delegation is allowed by the grantoragency.

City Manager

1. Receives grants and executes related contract documents when delegated to do so by the Council.

2. Develops, recommends and maintains grant management policies.

Operating Departments

1. Develop systems for maintaining ongoing information regarding grant availability within their functional areas of responsibility.

2. Evaluate benefits and costs of specific grant programs on a case-by-case basis:
a. Purpose of the grant program and its consistency with identified City goals and objectives. b. Additional staffing, office space, facilities, supplies or equipment that will be required if the grant is awarded.
c. Ongoing impacts of the grant program after it is completed. d. Responsibilities of other departments and impacts on them in preparing the grant application or performing work scope if the grant is approved.

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e. Amount of indirect costs to be recovered from the grant, f. Total program costs, including portion funded through grant revenues and any required City contribution.
g. Source of funding for any required City share.
h. Compliance and audit requirements, paying special attention to those areas where the grantor’s administrative procedures are different than the City’s. (1) Ensure that the successful bidder of a federal grant funded project is not under suspension and/or debarment. This is done by going to the SAM website and verifying that the bidder is NOT under suspension or debarment. Print out such proof and maintain it in grant file.
(added as a result of Federal Single Audit finding 2017-007)

3. Prepare grant applications.
a. Work with the grantor agency in identifying special program requirements and developing strategies for preparing a successful grant application. b. Complete grant application documents.
c. Coordinate with affected departments as necessary.
d. For grants in excess of $5,000, prepare a Council agenda report requesting authorization to seek grant funding. This report should describe the grant program's conformance with this policy, including the results of the cost/benefit analysis. e. For grants of $5,000 or less, submit the grant application, subject to the following conditions:
• It will not add regularstaffing.
• Any matching funds or in-kind contributions are already available within existing resources, and no additional appropriation of unreserved, undesignated fund balance or working capital is required.
• At the conclusion of the grant, there will be no ongoing commitments or obligations to continue the program.
• The purpose of the grant program is clearly consistent with current City plans, policies and goals.

4. Administer grant programs if awarded.
a. For grants in excess of $5,000, prepare a Council Staff Report accepting grant award, including grant summary form (see attached), budget amendment request and any other required City forms or documents; and coordinate execution of grant documents by the City Manager and return executed documents to grantor agency.

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b. For grants of $5,000 or less, execute and return grant documents to grantor agency. c. Notify affected departments of grant award.

The affected department shall:

1. Clearly define the contract dollar thresholds for each contract / project.

2. Develop a Project Schedule to include Project Costs, Task Order Dollar Thresholds, and Reporting Requirements to ensure that deliverables are met.

3. Require the contractor to develop a fee schedule to identify the components of loaded costs (a lump sum or hourly rate) in the consultant’s proposal.
(Per Caltrans CAP Letter to the city dated April 17, 2020 item 7.a., b., d., and e.) d. Maintain financial and other records in accordance with grant requirements. e. Complete and submit required reports, including requests for funds.

1. Work with other departments to Ensure that Reporting Requirements of the grant are met. (Per Caltrans CAP Letter to the city dated April 17, 2020 item 7.a.) f. Monitor grant expenditures and receipt of revenues.

1. Review contractor invoices / expenditures to ensure that Project Costs and Task Order Dollar Thresholds are being adhered to.

2. Review contractor invoices to ensure that the agreed upon labor rates that are reimbursed are in accordance with the executed contract.
(Per Caltrans CAP Letter to the city dated April 17, 2020 item 7.a., d., and f.) g. Coordinate on-site management reviews by the grantor agency during the grantterm. h. Ensure compliance with grant requirements, paying special attention to those areas where the grantor’s administrative procedures are different than the City’s. i. Perform the grant work scope.

5. Complete grant closeout.
a. Complete the grant work scope.
b. Notify affected departments that the project is completed and schedule a “close-out” meeting if necessary to resolve any final procedural issues. (1) Within 90 days of last expenditure of grant funds, ensure that a final invoice is submitted to the grantor for payment.

Finance Director to verify this process happens.
(added as result of Federal Single Audit finding 2017-007) c. Ensure final receipt of grant revenues.
d. Prepare and submit any required grant close-out documents. e. Review grant file for completeness.

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f. Retain all necessary program and financial records for the period of time required by grantor agency.
(1) The finance department will
meet on a quarterly basis to review
the current schedule of grant
revenue and expenses. Such
schedule is the joint responsibility of
the Accountant and the Grant Writer.

This meeting will serve as
verification that all Federal award
grants are identified and will be
included on the annual “Schedule of
Expenditures of Federal Awards
(added as a result of Federal Single Audit finding 2017-006) g. Coordinate any on-site management reviews or audits after the grant is completed. h. Resolve any audit findings.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Grant Management Policy
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i. Ensure that the City’s policy regarding single audit act requirements is implemented as discussed below.

Department of Finance & Information Technology

1. Provides technical assistance to operating departments in preparing grant applications, submitting reports and maintaining records.

2. Coordinates preparation and distribution of single audit reports.

Other Departments
Provide assistance to the managing department as identified during the grant application and award process.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Grant Management Policy
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SINGLE AUDIT ACT REQUIREMENTS
Background
The City is subject to the financial and compliance requirements of the Single Audit Act of 1984, which is applicable to all local and state governments expending more than $500,000 in federal financial assistance during a fiscal year. The purpose of the Act is to:

1. Improve the financial management and accountability of state and local governments with respect to federal financial assistance programs.

2. Establish uniform requirements for audits of federal grants.

3. Promote efficient and effective use of audit resources.

4. Assure that federal departments and agencies rely upon and use audit work performed during a single audit rather than performing the audit work themselves.

Under this Act, federal grants are included under an inclusive single audit program that is incorporated into the City's annual audit and financial report preparation process. During the audit, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations.

City’s Policy Regarding the Single Audit Approach
For federal grants included in the scope of the City’s single audit approach, it is the City’s policy that all financial and compliance issues have been met through the single audit, and follow-up audits to determine these issues are not necessary unless specifically related to findings or recommendations included in the single audit report. As noted above, the purpose of the Act is to establish uniform audit requirements, promote efficient use of audit resources, and assure that federal agencies rely upon audit work already completed; its purpose is not to audit local agencies twice. Accordingly, the City will strongly resist any efforts by federal agencies to duplicate audit work already performed in complying with Act requirements. As such, whenever federal grantor agencies request final audits, the managing department should notify the Department of Finance in order to ensure a consistent response to these types ofrequests.

ATTACHMENT
Grant Summary Form

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Grant Management Policy
740-8

GRANT SUMMARY FORM
This form is available on the City’s Intranet.

City of Arvin GRANT PROGRAM

SUMMARY

GENERAL INFORMATION
Grant Title Grant No.

General Description of Grant Work scope
Granting Agency Agency Contact Phone No.

Responsible Department Department Contact Extension No.

Council Approval Date Application Date Award Date Est'd Completion Date

GRANT COST AND REVENUE SUMMARY
Program Cost Summary Total Grant Portion
Staffing
Contract Services
Supplies & Other Operating Expenditures
Capital Outlay
Indirect Costs @ % of Direct Costs
TOTAL GRANT COSTS AND REVENUES $ $
How Was Grant Portion Determined?
Is a Budget Amendment Request Required? Yes ( ) No ( ) If yes, it should be attached OTHER COMMENTS (note any significant or unusual compliance requirements) Use reverse side if necessary to provide additional information Prepared By Date
This form does not have to be typed - legible handwritten printing is preferred

5.D.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Section 750-Employee Use of City Property
750-1
The City Code of Ethics states that “employees should not use, for private gain or advantage, their City time or the City's facilities, equipment or supplies, nor should they use or attempt to use their position to secure unwarranted privileges or exemptions for themselves orothers.” While personal use of City property is discouraged, if there is an occasion where an employee uses copiers, fax machines or makes personal phone calls, the employee must reimburse the City.

Payment should be made to the cashier at your location. For use of copiers and FAX machines, payment should be made at the time of use; for telephone calls, payment should be made upon receipt of your itemized phone calls that is distributed to you monthly.

As of July 2015, the following rates for reimbursement should be used for both employees and the general public:

Copies $ .50 per copy
FAX $1.00 per page
Phone calls Actual cost of call

5.D.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Section 760-Investment Policy
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INVESTMENT PROCEDURES - SUMMARY
The Director of Finance reviews the City’s cash balances on a daily basis. As necessary, cash is transferred between bank accounts, to and from the state’s Local Agency Investment Fund, or securities are purchased based on established criteria in accordance with City Council Investment Policy of City Funds.

INVESTMENT PROCEDURES - DETAIL

PURPOSE
This statement is intended to provide a guideline for the prudent investment of funds and to outline the policies for maximizing the efficiency of the City of Arvin and its components units (“Entity”) cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled funds. This investment policy has been prepared so as to be in conformance with all pertinent existing laws of the State of California for General Law cities.

OBJECTIVE
The goal of the City’s investment policy is to enable the City to invest funds to enhance the economic status while protecting its pooled cash. The city attempts to obtain a market rate of interest without assuming undue risk to principal. The objective of such investmentsis:
1) Preservation of capital with maintenance of liquidity; and 2) Competitive rate of return.

DELEGATION OF AUTHORITY
The authority of the legislative body to invest or to reinvest funds of the Entity is delegated to the City Finance Director in accordance with State Statutes and Council resolution.

INVESTMENT RESPONSIBILITY /REPORTING
Investments are the responsibility of the City Finance Director. He shall be responsible for reporting the status of investments to the City Council and the City Manager on a quarterly basis. In addition, to be in compliance with the California Government Code, a report will be submitted to City Council not later than thirty (30) days after the end of the quarter which shows the type of investment, institution, cost, par, market value, interest rate, date of maturity, and source of market value for all investments of more than twelve months. The report will contain a certification regarding the compliance of investments with the Entity’s investment policy and disclosure regarding the availability to provide sufficient liquidity to meet six months of estimated expenditures.

PRUDENCE
The standard of prudence to be applied by the City Finance Director shall be the “prudent investor” rule, which states, “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence description and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital, as well as the probable income to be derived.” The prudent investor rule shall be applied in

5.D.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) the context of managing the overall portfolio.
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INVESTMENT CRITERIA
Criteria for selecting investments and the order of priority are:

1. SAFETY
The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The City only operates in those investments that are considered secure.

2. LIQUIDITY
This refers to the ability to “cash in” at any moment in time with a minimal chance of losing some portion of principal or interest. Liquidity is an important investment quality especially when the need for unexpected funds occurs occasionally.

3. YIELD
Yield is the potential dollar earnings an investment can provide and sometimes is described as the rate of return.

INVESTMENT INSTRUMENTS
California cities may invest in any instrument allowable under current legislation of the State of California (Government Code Section 53600 et al.) so long as the investment is appropriate when the City’s investment objectives and policies are taken into consideration. Currently, the following investment types have been selected as permissible investments for the Entity:

Max Max
Max % of Invest In
Maturity Portfolio One Issuer
• US Treasury Obligations (bills, Notes and Bonds) 5 Years None None • US Government Agency Securities and Instrumentalities of Government Sponsored Corporations (except inverse floating rate securities and other • derivative products) 5 Years None None
• Banker’s Acceptances 180 40% 30%
• Commercial Paper Rated “Prime-1” by Moody’s and “A-1” or better by S&P 270 Days 25% 10%
• Investment Contracts 30 Years None None
• Time Certificates of Deposits 3 Years None 10%
• Negotiable Certificates of Deposits 5 Years 30% 5%
• Certificates of Deposits 3 Years None 10%
• Repurchase Agreements 92 Days 20% 10%
• Mortgage Pass-Through Securities None None None
• State Bonds or Notes 5 Years None 10%
• Municipal Bonds or Notes None None None
• State Bonds or Notes None None None None
• Money Market Funds N/A 15% 10%
• Local Agency Investment Fund (LAIF) N/A None $50 Million

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 760-3
• Investment Trust of California (Cal Trust) N/A None 10% • Municipal Bonds or Notes None None 10%
• Joint Powers Investment Pool (Cal TRUST) None None 10% • JPA Pool (other investment pools) None None 10%
• CSJVRMA Invest Pool (Chandler) None None 10%

MATURITY LIMITATIONS
Every investment instrument purchased must have a term remaining to maturity of less than five years, unless the investment is for bond proceeds for the reserve fund or funded/capitalized interest fund or the City Council has granted express authority to make that investment either specifically or as part of an investment program approved by the City Council no less than three months prior to the investment. The average maturity of the City’s total portfolio is to be managed so that money is always available when needed.

1. Purpose
This Investment Procedures Manual is intended to document the internal procedures that are used to implement the City’s Investment of Funds.

2. Worksheet
The Director of Finance shall be responsible for maintaining the Excel spreadsheet called Cash & Investments, which calculates the daily book balances of the City’s General Checking Account, and the Investment Portfolio.

The General Checking Account is the operating account where all of the receipts of the City are deposited and all of the accounts payable are disbursed from. This account is also the “parent” account to the specialized “zero balance account” (ZBAs) maintained by the City, which isthe payroll account.

ZBA means that at the end of each banking day the City’s bank automatically transfers all money deposited into a ZBA account to the General Account, and conversely transfers from the General Account to a ZBA account the funds needed to cover all disbursements from a ZBA account.

Therefore, at the end of each banking day, only the General Account has funds in it, and all ZBA accounts have a zero balance.

Every morning, the Finance Director must log on to City’s bank account for the General Account information, as well as lists of all ZBA transfers to/from the General Account. The information from these reports is then entered on Excel spreadsheet for deposits, ZBA transfers, and returned checks.

Wires and other transfers in and out of the General Account (such as revenue from the State or debt service wires) are also verified and entered (if not previously entered). ZBA activity is also entered on a separate spreadsheet also located in the Excel file.

Wires and other transfers in and out of the General or Custody Account, and investment transactions are entered as soon as the information is available.

3. Calendar of Cash and Investment Activity
The Director of Finance is responsible for keeping a calendar of all major scheduled cash and investment activity for the calendar year. An entry is made on each day that has anticipated cash or investment activity, as soon as that activity becomes known, showing the activity description and the

5.D.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) amount (if known). The following are the items to be posted on the calendar:
a) Investment purchases, sales, calls, and maturities.
b) Payroll disbursements.
c) Accounts payable check runs.
d) Property tax receipts (including redevelopment tax increment). e) Sales tax receipts.
f) Motor vehicle in-lieu receipts.
g) Highway users tax receipts.
h) Debt service payments.
i) Any other large receipts or disbursements scheduled in advance.

4. Cash Available for Investment
The Director of Finance must review the cash balances and investment portfolio daily to determine how much is available for investment. Items to be reviewed should include:
a) Balance in General Account.
b) Outstanding checks in all accounts.
c) Holds placed by bank on deposits (shown as “float” on daily report from bank). d) Balance in Custody Sweep Account.
e) Balance in Local Agency Investment Fund (LAIF).
f) Cash flow data.
g) Investment purchases, sales, maturities and calls.
h) Current receipts and anticipated large receipts shown on calendar. i) Current disbursements and anticipated large disbursements shown on calendar.

5. Development of Investment Strategies
The City Manager and Director of Finance shall meet periodically to determine the City’s investment strategies. The following factors shall be considered while developing the strategies:
a) City of Arvin’s Investment Policy.
b) Cash flow data, including maturing investments.
c) Yield curve.
d) Current portfolio structure.
e) Market information from various sources.

These factors should be evaluated within the overall context of passive portfolio management, although selective active management may occasionally be utilized.

6. Investment Selection
Information on possible investment types, yields, and maturitiesis obtained by the Director of Finance from various sources, including:
a) Authorized brokers.
b) Business publications.
c) The internet. 760-4

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 760-5
d) Data services, such as Bloomberg.

7. Purchasing an Investment
If purchasing an investment through a broker, the broker must be approved by the Director of Finance, as specified in the City’s Investment Policy. The Director of Finance should be as specific as possible in requesting offerings from brokers. The following must be determined prior to contacting brokers or direct issuers:
a) Settlement—cash, regular (next day), corporate (3 business days) or when-issued if a new issue. b) Amount—either par value or total dollars to be invested. c) Type of security to be purchased, or type to be excluded. d) Targeted maturity, or maturity range.
e) Time limit to show offering—5 minutes, 15 minutes, etc.

The Director of Finance shall select the investment that meets all the criteria of allowed investments as specified in the City’s Policy and that best meets the City’s needs for safety, liquidity, and yield.

After the selection is made, the Director of Finance will advise the successful provider that their offering has been selected for purchase.

After consummation of the transaction, and prior to settlement, the Director of Finance should receive the following by fax or email, if a security is being purchased through abroker:
a) A trade ticket.
b) A Bloomberg security description printout.
c) If the security is callable, a Bloomberg call schedule printout.

If the security is being purchased directly from an issuer (for example, commercial paper purchased directly from the issuing company), a faxed confirmation should be requested from the issuer containing the following information:
a) CUSIP number.
b) Settlement dollar amount.
c) Settlement date.
d) Maturity date.

If the investment is a deposit to or withdrawal from LAIF, a LAIF transaction form must be completed.

The Director of Finance must verify that all written documentation of a trade that the City receives from a broker or direct issuer agrees with the City’s records.

8. Selling or Swapping an Investment
Before a security can be sold (not including withdrawing funds from LAIF or a money market account) or swapped, the reason for the sale or swap should be discussed by the City Manager and the Director of Finance. The City Manager must approve the sale or swap before the transaction occurs.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) 760-6

9. Settlement & Follow-through
The Director of Finance must enter the transaction information into the investment management software used by the City (currently Excel) and print out a transaction confirmation. LAIF transactions, however, do not require this confirmation. This transaction confirmation must be given to the City’s Accountant for recording.

The Director of Finance must make sure that the funds needed to purchase a security are either already held by the custodian or are wired to the custodian on the settlement date.

The custodian must notify the City Manager or Director of Finance if a trade fails. In this event, the Director of Finance must follow through until all problems are resolved with the trade.

For purchases (excluding LAIF), the Director of Finance must fill out an Investment Purchase Approval form and attach copies of all relevant documents, including trade tickets and Bloomberg security descriptions. For sales (excluding LAIF), the Director of Finance must complete an Investment Sale Approval form and attach any relevant documents. These forms and attachments must be submitted to the Director of Finance for review and signature. In the absence of theDirector of Finance, the City Manager should review and sign the transaction.

All transactions, including LAIF deposits and withdrawals, must also be entered on the Excel Spreadsheet.

10. Monthly Reports & Reconciliations
After each month-end, the Director of Finance must obtain the estimated market value of all securities owned by the City at month-end. The City currently receives month-end statement from each of its investment entities. Any earned interest must be posted to the Fund Balance General Ledger System.

The LAIF average interest rate for the month can be obtained by either calling LAIF or going to the website http://www.Finance Director.ca.gov/pmia-laif/laif.asp. The actual amount of interest posted quarterly to the City’s LAIF account can be obtained from the mailed notice received from LAIF, or by calling LAIF. These interest rates and dollar amounts must be posted to the investment management software. The quarterly interest amount must also be posted to the Excel Spreadsheet.

After all market values, interest amounts received, and interest rates are entered into the investment the spreadsheet, the monthly reports must be run. These reports include:
a) Portfolio Summary
b) Amortization Schedule
c) Accrued Interest
d) Interest Earnings
e) Interest Received
Using the information from these reports, the Director of Finance’s Cash Report for the month is prepared.

A City Council Agenda Report must be prepared for the Director of Finance’s Cash Report, and the

5.D.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) entire package must be submitted to the City Manager for review and approval. After approval, the package is sent for inclusion on the consent calendar of the specified City Council meeting.

11. Investment Policy Review
At the beginning of each calendar year, and any other time a change in state law or other circumstances warrant a review and possible change to the City’s Investment Policy, the City Manager and Director of Finance shall discuss possible policy changes. Any suggested changes must be presented to the Investment Advisory Committee if any. The Committee may also recommend additional changes to Policy. After discussion and approval by the Committee, either the City Manager or the Director of Finance shall prepare a City Council Agenda Report listing all changes recommended by the Investment Advisory Committee. This Agenda Report shall be included in the specified City Council meeting.
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5.D.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) Section 770-Credit Card Acceptance from Public

OVERVIEW
In April of 2015, the City Manager approved the public use of credit cards to pay amounts due to the City for Permits, Police citations, business licenses and dog licenses. There is no limit to the amount that may be used to pay for amounts due to the City, but any amounts above $3,000 will be charged and additional 2.5% of the charge to cover the merchant service fee being charged to the City.

GOALS

1. Establish positive customer service relationships by using current technology allowing customers to pay their amounts due to theCity.

2. Increase cash flow to the City.
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5.D.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin-2.13.24 cv [Revision 1] (Financial Policies & Procedures Manual) ATTACHMENT “740
-A”

GRANT MANAGEMENT

GRANT FUNDING AND COMPLIANCE POLICY

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
Best Practices P a g e | 2
Table of Contents
Introduction ..................................................................................................................................................3 Section 1: Roles and Responsibilities for Grants.......................................................................................4 Management and Administration.........................................................................................................4 Section 2: Post- Award Processes and Procedures...................................................................................6 Section 3: Implementation of Grant Project.............................................................................................8 Section 4: Project Evaluation ..................................................................................................................15 Section 5: Grant Closeout .......................................................................................................................17 Section 6: Compliance, Audits, and Audit Readiness..............................................................................19 Section 7: Additional Guidance...............................................................................................................21 Department of Transportation (Caltrans) Grants...............................................................................22 Additional Resources for Department of Transportation (Caltrans) Grants.......................................23 Glossary...................................................................................................................................................24 Grants Terminology and Acronyms ....................................................................................................24

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
Best Practices P a g e | 3
Introduction
Congratulations! Your grant proposal has been selected for award and you are ready to begin implementation of the project.

This handbook provides a foundation for meeting basic grant management requirements and standards to help in effectively managing your grant. The handbook was created to increase project success, while minimizing any problems that may arise. As good stewards of grant resources, grantees are expected to understand and adhere to programmatic, administrative, and fiscal laws, regulations, policies, and procedures to most effectively implement and manage grant projects.

This guide outlines the steps to follow as grant projects are implemented and provides information related to working with the Finance Department and other entities; providing and maintaining proper documentation; preparing financial submissions; ensuring audit readiness; and a variety of other pertinent topics. Remember, Finance is here to support and ensure the success of your project.

It is important to note that activities undertaken in the first few weeks of project implementation are crucial to the overall success of the project. These activities will not only set the tone for your project, but will also impact several important factors such as:
- Will the project be on target to meet the required performance measures? - Will all grant funds be expended during the grant period? - Will the project records and documentation meet audit requirements? Ensure that all project team members are familiar with the grant proposal, the notice of award, the terms of the grant agreement/contract, and the policies and procedures for the City. Being aware of what can and cannot be done, and how best to do it will alleviate potential difficulties in the future.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
Best Practices P a g e | 4
Section 1: Roles and Responsibilities for Grants
Management and Administration
During the development, implementation, and management of projects, the primary individual responsible for coordinating with all of these offices is the project manager. This individual is also responsible for facilitating communication about the project, soliciting support from the appropriate departments when needed, and participating in grants compliance meetings with finance staff as needed. The City Manager, or a designee in writing, is the only person who can commit the City to receive and use grant funds.

Finance Department
The finance department provides assistance for externally funded grants for both the City. The finance department support, guide, and advise staff through the full life cycle of grants from pre-award to post-award to closeout.

Pre-Award/Grant Development Responsibilities

1. Assist in budget development.

2. Review the proposal budget.

Post-Award Grant Management and Compliance

1. Review grants for general compliance and oversight.

2. Assist with analyzing, interpreting, and applying Federal, State, and local government statutes, OMB Guidance, CFR, private funders’ requirements, and other regulations for grant administration, and implement related finance processes.

3. Serve as a resource for staff and project managers during the project implementation process to focus on allowable expenditures and the project budget.

4. Monitors the budget for proper use of funds, and ensures compliance with agency requirements regarding purchasing regulations, equipment inventory, and closing documents.

5. Work to coordinate reporting, audit responses, time and effort reporting, and other grant-related financial activities.

6. Provide oversight to facilitate the preparation and submission of reports and documentation required by the funder.

7. Meet with project managers to review financial and performance activities and provides recommendations for adjusting spending, when needed.

Financial Services for Grants

1. Provides post-award administration support for grants, financial reporting, financial record maintenance, time and effort reporting, and preparation of monthly, quarterly, and annual financial reports.

2. Provides cash management support, including preparation of reimbursement requests and drawdown of funds.

3. Ensures that grant funds are expended in compliance with the agency regulations or funder requirements.

Project Manager
The primary individual responsible for the day-to-day management of the grant throughout the grant period is the project manager. Keys to effective and efficient grant management are planning, allowing for time needed to complete requests, addressing issues as early as possible, and maintaining complete, auditable records. The project manager supervises the daily operations of the grant, including:

1. Managing the budget

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
Best Practices P a g e | 5
a. Responsible for reconciling quarterly budget reports in collaboration with the Grants Office and Budget Office.
b. Monitoring the budget monthly to compare the percentage of time elapsed in the grant period with the percentage of total funds spent to date.

2. Purchasing with grant funds
a. Ensuring purchasing requests adhere to all policies and procedures and to federal, state, or funder requirements.
b. Ensuring grant-funded positions are paid in accordance with the grant requirements and standard payroll practices and processes.

3. Closing out the project and evaluation
a. Preparing final reports for closeout of the grant for submission to the funding agency, typically within 45 to 90 days after the project ends. (Reminder: Not completing and submitting reports timely may have an impact on our future funding.)
b. Ensuring proper closeout has been completed using the Grant Closeout Checklist.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Section 2: Post- Award Processes and Procedures
Once a grant is awarded, the project should begin operations immediately. Be sure to allow for the needed time to begin working on defining grant activities, establishing timelines for milestones and deliverables, determining the reporting schedule, and understanding how the funds will be used within the guidelines of the funding agency/grantor.

Award Letter and Contract Processing
Funding agencies generally inform the person who is listed on the grant proposal as the lead contact person about a new or continuing grant award. Do not assume that Finance has been informed of the award. Many times, there are time-sensitive actions that need to be taken. Please notify Finance as soon as possible upon receiving an award letter.

Negotiating the Award
In some instances, a program officer from the funding agency may request additional information or clarification on a project or contact the lead contact person to discuss budget adjustments or required revisions. The Finance staff has extensive experience in working with a variety of grant programs, funding agencies, and foundations which will be helpful in the efforts to come to an agreement with the program officer, should you require assistance.

Executing the Grant Contract
Please note that grant contracts may only be signed by a designated individual. Grant contracts are legal agreements between the City and the funding agency or organization that holds the City accountable and responsible for delivering the outcomes set forth in the contract and for managing all grant funds appropriately.

The Project Manager will facilitate the signature process to fully execute the grant contract, typically thru DocuSign.

A fully executed copy of the agreement, along with any supporting documentation, i.e. staff reports, etc. will then be provided to Finance for processing.

Grant Award Kick-Off Grant Meeting
Within two weeks of notice of award, the Project Manager will schedule a grant award kick-off meeting with the administrative, fiscal, and program staff who will be involved in the grant. This meeting is an opportunity for the Project Manager and project team to ask questions and gain clarification on any and all aspects of project implementation.

The Project Manager should become extremely familiar with the grant contract, project timelines and performance objectives, budget, and all requirements referenced in the grant award documents. We do not want to inadvertently fail to comply with grant requirements because we did not take the time to read and understand them. The award documents typically include specific information and the terms and conditions regarding allowable and unallowable costs and activities, reporting requirements, and situations that would require prior approval by the funding agency. - At the kick-off meeting, the following grant project details will be reviewed:
- Specific requirements of the funding agency/organizations - Specific next steps and timelines for project implementation and planned activities - Best practices for establishing a recordkeeping system - Issues, policies, and procedures pertaining to budget, including equipment and supply purchases, contracted services, consultants, and subcontracting, as applicable - Expectations regarding reporting requirements and due dates - Any other issues of concern

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Starting the Grant File
The official master grant file is maintained by Project Manager. This file should include all administrative documents associated with applying for, administration of, and closeout of the grant contract as well as any documents necessary for recordkeeping and audit purposes. A duplicate working grant file will be maintained by Finance.

For each new grant funded project, an electronic and hard-copy file will be maintained that includes the following documentation:
- Original Notice of Funding Opportunity or Request for Proposals - Program regulations and guidelines
- Original proposal submission documents
- Final revised proposal and budget, if amended
- Original, fully-executed award documents and amendments or approvals - Memorandum of Understanding with partners, if applicable - In-kind, matching, and cost-sharing commitments included in budget - Project timeline, implementation timeline, or work plan from original proposal - Grant correspondence with the funding agency
- Sub-grantee monitoring reports and other sub-grantee records, if applicable - Participant files
- Audit reports
- Program monitoring and evaluation reports
- Progress and financial reports
- Close-out documents
Finance will maintain the following documentation for grant files:
- Invoices and copies of receipts for purchases made with grant funds - Time reporting documents

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Section 3: Implementation of Grant Project
Applying Best Practices
The implementation phase is the longest phase of the grant lifecycle. By now, the Project Manager and team has reviewed the approved activities, timelines, budget, and evaluation plan. This section provides best practices for managing the various aspects of project implementation.

Remember to:
Verify that all grant project files are current and complete Review budget status
Review allowable expenses before making a purchase or charging other expenses Review financial and progress report deadline and complete reports on time Note: Progress and narrative reports are due to the Grants Office a minimum of five (5) days before the due date.

Establishing the Budget
Institutional Grants
Upon receipt of the notice of award, fully executed contract, and project budget, Finance will set up the project’s internal budget account based on the approved budget. This account will be used for any project-related purchases, grant personnel costs, and/or fund transfers. Most funding agencies use electronic wire transfers to credit grant accounts. This system will be set up by Finance as defined in the award documents.

Once the budget is established, Finance will review the fiscal management process with the Project Manager. The Project Manager should be very familiar with the budget, cost categories, and amount in each budget line, as approved by the funding agency. The Project Manager is responsible for initiating and approving all direct charges to the project’s budget.

Note: If the Project Manager should receive a check payable to the City directly from the funder, it should be immediately delivered to Finance.

Managing the Budget
Note: It is imperative that all grant funds are spent timely and prudently. Grant budget reports must be consistent with the project progress or narrative reports. If issues with project implementation arise that will impact the project budget, please contact Finance as soon as possible and well in advance of report due dates.

As the project progresses, communicate periodically with Finance to:
- Review the grant’s financial status
- Receive help in interpreting budget reports
- Address questions about fiscal management
- Receive assistance with payroll procedures and forms for grant-funded personnel - Prepare financial reports for grant billings/draw down Budget Line Items
Finance will set up the grant budget in the accounting system. Funds will be allocated to accounts and budget line items in accordance with the approved budget. Common grant budget lines include:
- Personnel - Salary and wages paid to employees working part or full time on program-related tasks for the grant (i.e. curriculum development, program implementation, training, etc.).

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- Benefits - Medical, dental, life insurance, and other fringe benefits related to staff working on grant programs. Professional development benefits are also included for personnel assigned to the grant fund. - Travel & Meetings - Includes mileage, transportation, meals, and accommodations for staff attending meetings or training for program-related work. Conference registration fees are included in this category. - Supplies - Supplies are those items with a cost of less than $500 per unit and a useful life of less than one year. Federal grants define the amount as less than $5,000. Please refer to the GAN and the agencies grant guidelines.
- Equipment - Equipment has a cost of more than $500 per unit and a useful life of more than one year.

Federal grants define the amount as greater than $5,000. - Contractual Services - Contractual Services are those items provided by non- personnel or companies.

Further detail on the different types of contractual services is included in the “Vendors vs. Independent Contractors vs. Sub-recipients” section, below.
- Other Expenses - Most costs should fit into one of the above categories if they are being directly charged to the grant.

NOTE: ALL Federal Awards, Cooperative Agreements, or State Awards utilizing Federal Funds must follow the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Chapter 1, Chapter 2, Part 200). These guidelines can be found at https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl.

Expending Grant Funds
Allowable Expenditures
All costs directly related to the grant, including salary, fringe benefits, stipends, travel, supplies, equipment, printing, and marketing and outreach are eligible expenditures if they were included in the original budget approved by the funding agency. Allowable expenditures are allocable, allowable, reasonable, and necessary for accomplishing the objectives of the program as defined in approved grant award for implementing activities. There may be instances where the contract may have more restrictive terms than general funding guidelines (such as the Uniform Guidance or GATA). When rules do conflict, the most conservative rule applies to the spending limitation. Common disallowed costs, include, but are not limited to:
Salary for employees not working directly on the grant Alcohol
Entertainment Costs (unless approved as programmatic by awarding agency) Lobbying
Advertising (unless required as part of a “Public Notice” process) Promotional items or “giveaways”
Exceptions may be made if prior approval is obtained from the agency.

Approvals of Expenditures
Prior to expending funds, the Project Manager should review the costs to ensure they are an allowable expense and directly relate to the grant objectives and are provided for in the grant budget. The Project Manager should approve expenditures based upon their institutional authority. Evidence of approval should be part of the grant files for all expenditures.

Supplement vs. Supplant
Grant funds must supplement or add to, enhance, expand, increase, extend the programs and services offered with City funds. Grant funds are not permitted to be used to supplant (take the place of or replace) local funds used to offer those programs and services. Grant funds should INCREASE the overall amount of resources available to the

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Grantee. If an expense was previously paid for with City funds, it should not be charged to a grant subsequently unless it can be documented that state or local funds have been reduced/eliminated.

Documenting In-Kind, Cost Sharing and Matching
Some funding agencies or grant programs require the grantee institution to demonstrate its financial commitment to the project, or the commitment of other funding sources. This is done by sharing the total project costs through matching or leveraged funds, cost sharing, or in-kind contributions. If included in the grant proposal budget, these financial commitments become a binding requirement of the grant award and costs must be tracked and reported for compliance.

For all federal awards, any cost share, matching funds, or in-kind contributions must be accepted as part of the nonfederal entity’s cost sharing or matching when such contributions meet all of the following criteria:
- Verifiable from the non-federal entity’s records;
- Not included as contributions for any other federal award; - Necessary and reasonable for achieving project or program objectives; - Not paid by the federal government, unless required; and - Included in the approved budget.

The Project Manager must work closely with Finance to ensure that in-kind, matching, or cost sharing funds are allocable, available, and properly documented. For example, funds cannot be used for match or cost sharing on multiple grants and federal funds cannot be matched with other federal funds. These commitments must be documented in a way that meets audit standards.

Grant Budget Revisions
The grant budget approved by the funding agency is a financial plan for achieving the desired outcomes of the grant project. Grant funds may only be expended within the cost categories and amounts identified in the approved grant budget. The approved budget constitutes part of a legal contract. Changes in planned project activities or scope of work may require budget modifications. Federal and state guidelines are usually flexible enough to allow minor (≤ 10%) line item variances without prior approval from the program officer. If a larger change is anticipated, contact Finance to discuss the changes before making any scope of work changes or spending funds outside of the approved budget.

Finance will work with the Project Manager to determine if the funding agency guidelines allow for the proposed budget change. The Project Manager may need to contact the program officer at the funding agency to discuss the change and to determine the appropriate forms or format for formally requesting the modification.

Upon receipt of the request, the funding agency will review and officially approve or disapprove the change in writing. No budget changes may be made until official, written notification is received. This process can take several weeks so it is important to make adjustments as early as possible. The revised budget and copies of the written approval will be maintained in the grant master file.

Purchasing Department
Purchasing has instituted an efficient and fair procurement process in accordance with federal and state procurement regulations and encourages the inclusion of all vendors and suppliers. Purchasing serves the needs of the City for all purchases in excess of $2,000 as outlined in the City’s Procurement Policies and Procedures Manual.

For purchases of $25,000 or more, a formal bid process is required. Responsibility and authority to make commitments for these purchases are assigned to Purchasing. For more information on Purchasing procedures and processes, contact Purchasing.

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NOTE: ALL Federal Awards, Cooperative Agreements, or State Awards utilizing Federal Funds must also follow the General Procurement Standards in the Code of Federal Regulations (CFR); Title 2: Grants and Agreements section §200.318 through §200.326. These guidelines can be found at https://www.ecfr.gov/cgi-bin/textidx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl; in addition expenditures utilizing funds through Caltrans must follow the Local Assistance Procedures Manual (LAPM, particularly Chapters 5 and 16. These guidelines can be found at https://dot.ca.gov/programs/local-assistance/guidelines-and-procedures/local-assistance-procedures-manuallapm or Local Assistance Procedures Manual for Caltrans Grants. Feel free to contact Finance for additional information (ext. 6033).

ALL Federal Awards used to procure vendors providing services to the City in excess of $25,000.00 must maintain evidence of vendor “Suspension and Debarment” verification through the “Systems for Awards Management (SAM).

Print out copy of verification and submit it to Finance or contact Grant Mngt. Analyst to obtain a copy. This requirement must also be included in your Contract, Professional Services Agreement, or PO.

Vendors vs. Independent Contractors vs. Sub-recipients
Most vendors are businesses, suppliers, contractors, or subcontractors who sell goods and services to the City through the purchase requisition process. All vendors interested in doing business with the City must send a request on company letterhead asking to be added to the Bidder’s List. All vendors are subject to the City’s purchasing policies.

Independent contractors (including consultants) are entities that receive a contract from the City and provide goods and services under a procurement relationship within normal business operations. These contractors provide similar goods and services to many different purchasers and normally operate in a competitive environment. In the context of federal grant projects, independent contractors provide goods or services that are ancillary to the operation of a federal grant project and are not subject to compliance requirements of a federal program as a result of the agreement. For more information of Department of Transportation consultant contracts, please see Section 7:

Additional Information.

A sub-recipient is a non-federal entity that expends federal funds to carry out a part of a federal grant project’s activities, as opposed to providing goods or services (as a contractor) for the benefit of the City. In a sub-recipient relationship, the City is considered a pass-through entity (i.e., federal funds are awarded to the City, which then provides part of those funds to the sub-recipient for performing grant work/activities). Different from vendor or contractor, a sub-recipient is a partner responsible for a portion of the grant’s performance outcomes, and shares in the responsibility for programmatic decision making. In accordance with grant contracts, sub-recipients are responsible for compliance with applicable federal flow down clauses and program requirements.

A sub-recipient relationship is established through a sub-award agreement, a contract issued under a larger (prime) grant award for the commitment of specific services or project-related activities that are to be performed by the sub-recipient. Issuance of a sub-award under a federal prime award is subject to compliance with federal law, and all sub-awards are subject to the terms and conditions of the prime grant award and the City’s purchasing policies.

A sub-award does not include payments to a contractor or payments to an individual that is a beneficiary of the federal grant program.

Once the grant is awarded, the Project Manager will determine which partners are eligible to receive federal assistance, and will prepare a sub-award agreement. This agreement will define the specifics of the grant work to be completed, the funding agency’s terms and conditions, and City policies and procedures. Sub-awards are written to assign specific portions of the programmatic effort and the sub-recipient is responsible for managing the technical and administrative aspects of the agreement.

The Project Manager and Finance will work closely to monitor whether:

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- Federal and state awards are used for authorized purposes in compliance with laws, regulations (including OMB guidance), and the provisions of the grant contract. - Costs are allowable, allocable, and reasonable.
- Performance goals are achieved.
- All grant project files are current.

Tracking Time
Government policies require that all staff paid from and/or contributing effort to federally-funded and state-funded grants report and certify their time accordingly. When the City accepts federal or state funds, it agrees to this obligation as a condition of award.

Institutional records are required to verify direct and indirect cost activities related to grant-funded projects. In addition to submitting regular timesheets. A timesheet must be completed by each staff member who charges or contributes time to a grant project. The timesheet provides a system of budgeted, planned, and assigned work activity that is incorporated into the official records of the City and must reasonably reflect only the activity for which the staff is compensated by the City.

Risk, Compliance, and Sub-Award Management
Grant compliance is becoming increasingly important. Federal requirements have expanded for evaluation and monitoring of grant project outcomes, and increased scrutiny of risk management and financial accountability and transparency is codified in the federal Uniform Guidance regulations (i.e., OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR part 200).

The risk management cycle is a framework for continuous discovery, analysis, action, and improvement. Risk mitigation is taking appropriate action to address potential problems, including imposing the appropriate types and levels of requirements and providing appropriate types of monitoring and levels of technical assistance. Monitoring is the process followed to assess how well a grant is being implemented, achieving program objectives, and complying with requirements, terms, and conditions.

Grantees who allocate sub-awards of federal funds to sub-recipients as pass-through entities must:
- Assess the risk of subrecipients;
- Maintain strong internal controls for managing sub-awards; - Communicate with federal program staff and with sub-recipients; - Document all activities; and
- Monitor sub-awards to ensure sub-recipients are spending grant funds appropriately and in compliance with the award and all regulations.

When monitoring subrecipients, the pass-through entity must:
- Review reports required by the pass-through entity;
- Ensure sub-recipients take appropriate action on deficiencies identified through audits, on-site monitoring, and other reviews;
- Issue a management decision for single-audit findings pertaining to the federal award; and - Verify audits of sub-awards.

Programmatic Changes
All programmatic changes must be discussed with the Finance. The Project Manager will contact the program officer to discuss the potential changes needed and complete the forms required by the funding agency to request a formal grant modification.

Personnel Changes

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During the life of the grant it may be necessary to change grant-funded personnel, key personnel listed in the grant, or to adjust salary rates. Most funding agencies have established strict procedures for requesting prior approval of personnel changes which are incorporated into the terms and conditions of the grant contract. Finance will work with the Project Manager and provide technical assistance in obtaining approval from the funding agency.

Changes in Project Scope
Substantive changes in the scope, objectives, or goals of a project, whether they impact the budget, typically require written approval from the funding agency’s program officer. Some examples that would require written approval include changing a performance location, training activities, or monitoring plans. In most cases, a fully substantiated written justification for the changes will be required to request the changes. The Project Manager is responsible for obtaining the written approval from the funding agency.

No-cost Extension
A no-cost extension is a request to extend the end date of the project beyond the previously approved end date and for which no additional funds are needed beyond what was originally awarded. The Project Manager is responsible for knowing the deadline for submitting a no-cost extension request. Some programs do not allow no-cost extensions. Simply having remaining funds at the end of the grant period is not sufficient justification for a no-cost extension.

Required Reporting
Reporting requirements and due dates are specified in the grant contract and a reporting schedule is formalized at the kick-off meeting. Most funding agencies require monthly, quarterly, and/or annual progress and financial reporting.

Note: Caltrans requires submittal of invoices at least every 6 months.

Financial Reports
Financial reports are prepared by Finance. Finance will report on the budget expended to date and any in-kind or matching dollars. Financial reports will be reviewed and approved by the Project Manager prior to submitting to the funding agency. Electronic submissions, through portals such as IDIS, will be submitted by Finance.

Narrative/Progress Reports
The Project Manager is responsible for preparing narrative reports. Reports should conform to funding agency guidelines and use technical report writing standards. A report narrative usually requires responses to each of the proposed outcomes, including status updates on progress toward each grant activity, objective, and milestone.

Outcomes that are not accomplished as scheduled during the reporting period should be clearly explained and any challenges should be described along with the solution.

Comments should be substantiated and fully supported by evaluation data, research, and statistics. The Project Manager should plan adequate time for collection and analysis of institutional project data, when needed for reports. Reports may also include charts, graphs, or other representations of data pertaining the project and delivery of services.

Successfully prepare the narrative/progress reports by following these guidelines:

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Compliance Reviews
As stewards of external grant funds, the City must ensure that project implementation is on track. By monitoring the progress of grant activities and ensuring compliance with regulations, the City is working to secure strong relationships with funding agencies and other grant makers and focusing on accessing future funding opportunities.

Project Managers will schedule monthly or quarterly compliance reviews to review progress, both programmatically and financially, and address any issues. The frequency of these reviews will be determined based on the complexity of the grant and the grant management experience of the Project Manager. These reviews allow Finance to support Project Manager in successfully managing their grant projects.

Additionally, annual file reviews will be conducted approximately one month prior to deadlines for final reports and an additional review will be conducted one month prior to deadlines for closeout reports, generally within 60-90 days after the grant contract end date.

Follow all instructions
•Adhere to page limits, use funder formatting
•Ensure the specific questions of the funder are being answered Review grant agreement guidelines
•Ensure each goal, objective, and activity is addressed Explain any unexpected challenges, delays, or goals not fully acheived •Include any corrective action taken to get back on track Be clear, concise, and coherent
•Tie outcomes directly to project goals, objectives, and activities

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Section 4: Project Evaluation
Preparing for Project Evaluation
The evaluation is a key aspect of any project and evaluation plans becoming a heavily weighted criterion in grant proposals. The evaluation informs progress toward the achievement of objectives, the effectiveness of methods, and whether processes, strategies, or tactics require adjustment during the grant period. Expectations for rigor and quality of evaluation plans have increased in recent years across all funding agencies/organizations, so it is critical to keep in mind that evaluation must be an ongoing process throughout the life of the grant-funded project. The Project Manager must be familiar with reporting schedules and be prepared to implement routine data collection and analysis as primary project activities. There are many approaches to project evaluation with the two most common being programmatic assessment and administrative assessment.

Programmatic assessment addresses the following questions:
- Is the project meeting the specific goals, objectives, and outcomes listed in the grant proposal? - Is the project meeting the overall requirements and objectives of the grant program? - Is the project programmatically compliant?
Administrative assessment addresses the following types of questions:
- Is the project meeting its milestones and deliverables? - Do the expenditures correspond to the original budget? - Are reports vouchers submitted correctly and on time? Funding agencies may conduct several types of program monitoring activities, including but not limited to the following:
- Basic mandatory monitoring which includes the review of performance and progress reports and financial reports, along with final cumulative reports at closeout, vouchers and budget changes, data submissions as requested, and ongoing communications with the grantee. - Periodic on-site monitoring such as program reviews, process reviews, general onsite observations, file reviews, and programmatic and operational reviews.

The following list, while not all encompassing, describes the primary steps for ensuring a comprehensive project/program evaluation.
1) Know the expectations of the project. Review goals, objectives, strategies, milestones, deliverables, outcomes and work plans. Scrutinize the performance measures and indicators and carefully plan the tools and resources that will be used for collecting and storing data, when data collection will occur, and how the data will be analyzed.
2) Finalize data collection methods. Determine what data is needed to show progress toward objectives using performance indicators; plan to collect qualitative and quantitative data from existing or new sources; identify how and where data will be entered and safely stored; and create plans to periodically pull and analyze data for reports and ongoing project improvement. 3) Engage stakeholders. If the proposed evaluation plan included input from a stakeholder group or steering committee, now is the time to formally establish the group and begin communication. Create opportunities for partners and stakeholders to engage in the evaluation process as well as identify solutions to the findings. Create a feedback loop throughout the process for interim findings and recommendations. 4) Initiate data collection. Begin to systematically gather and enter data into a secure database. 5) Analyze the data. Prepare and implement plans to analyze data for reports and continuous improvement, including sharing results with stakeholders and partners. Compile data and prepare reports. 6) Monitor the budget. Review budget expenditures and modifications; ensure that financial reports are submitted on time.

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7) Develop plan for disseminating results. Document and disseminate the results and lessons learned via customized communications that meet the specific needs of stakeholder groups. Findings should be considered in decisions or actions that affect the project. Schedule follow-up meetings with report users to make sure the findings are communicated and used appropriately in decision making.

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Section 5: Grant Closeout
Grant closeout is the process by which the Project Manager and Finance determine that all requirements of the grant contract agreement between the funding agency and the City have been completed in accordance with the terms and conditions of the agreement. Finishing a grant project is just as important as starting one. Closing out a grant project involves making sure that all grant contract activities have been completed and funding has been exhausted.

Closeout of the grant does not cancel any requirements for property accountability, record retention, or financial accountability. Following closeout, the City remains obligated to return any unexpended funds due to the agency and the sponsor/funding agency may recover amounts based on the results of an audit covering any part of the grant period.

It is highly recommended that you create a Grant Closeout Checklist at least six months prior to the end date of your grant project. Upon closeout, all grant documents and files should be forwarded for file labeling and storage.

Start the Closeout process 60 days of grant end date.

In many cases, the way closeout procedures are handled, such as timely submission of final reports and the quality of those reports, can have a direct impact on the chances for future funding. There are seven grant management items that need particular attention at the closeout of a funded project: pre-closeout activities, budget, personnel, purchasing activities, files, final reports, and document storage.

Area Process
Pre-Closeout Meeting The Project Manager will contact Finance at least 2 months prior to the end of the grant.

Budget Review encumbrances and liquidate those no longer needed. Accounts will be closed soon after the grant’s ending date.

Personnel Submit any payroll changes for staff members to other budget account or to the new grant budget account assigned to a continuing grant.

Purchasing Ensure all goods and services have been received prior to the end of the grant, although payment can occur soon after the end of the grant period.

Grant Files Review all grant documents, personnel records, purchase order and requisitions, and budget records.

Final Reports Follow the guidelines and requirements for all final reports, as provided by the funding agency.

Document Storage Plan to have all grant files transferred to storage.

Disposition of Equipment
Equipment purchased with state or federal funds must be used in the grant project for which it was acquired for as long as the equipment is needed. Grant equipment with a current per unit fair market value (FMV) of $5,000 of less may be retained, sold, or otherwise disposed of with no further obligation to the Federal awarding agency. If the FMV is in excess of $5,000, the Federal awarding agency should be contacted for instruction prior to selling or disposing, according to the terms and conditions of the grant agreement.

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Final Reporting
Grant closeout also includes the preparation and submission of final programmatic/technical reports as well as financial reports. Some funding agencies or sponsors have required forms that must be used. All final reports should be submitted to Finance for review and submittal to the funding agency.

Records Management
The City adheres to Federal rules pertaining to retention requirements for grant agreements. As a general rule, all grant files must be retained for a period of at least three (3) years. More specifically, 2 CFR 200.333 states the following:

Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. Federal awarding agencies and pass-through entities must not impose any other record retention requirements upon non-Federal entities. The only exceptions are the following:
(a) If any litigation, claim, or audit is started before the expiration of the 3-year period, the records must be retained until all litigation, claims, or audit findings involving the records have been resolved and final action taken.
(b) When the non-Federal entity is notified in writing by the Federal awarding agency, cognizant agency for audit, oversight agency for audit, cognizant agency for indirect costs, or pass-through entity to extend the retention period.
(c) Records for real property and equipment acquired with Federal funds must be retained for 3 years after final disposition.
(d) When records are transferred to or maintained by the Federal awarding agency or pass-through entity, the 3-year retention requirement is not applicable to the non-Federal entity. (e) Records for program income transactions after the period of performance. In some cases recipients must report program income after the period of performance. Where there is such a requirement, the retention period for the records pertaining to the earning of the program income starts from the end of the nonFederal entity's fiscal year in which the program income is earned. (f) Indirect cost rate proposals and cost allocations plans. This paragraph applies to the following types of documents and their supporting records: indirect cost rate computations or proposals, cost allocation plans, and any similar accounting computations of the rate at which a particular group of costs is chargeable (such as computer usage chargeback rates or composite fringe benefit rates). (1) If submitted for negotiation. If the proposal, plan, or other computation is required to be submitted to the Federal Government (or to the pass-through entity) to form the basis for negotiation of the rate, then the 3-year retention period for its supporting records starts from the date of such submission. (2) If not submitted for negotiation. If the proposal, plan, or other computation is not required to be submitted to the Federal Government (or to the pass-through entity) for negotiation purposes, then the 3-year retention period for the proposal, plan, or computation and its supporting records starts from the end of the fiscal year (or other accounting period) covered by the proposal, plan, or other computation.

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Section 6: Compliance, Audits, and Audit Readiness
Compliance
Grant compliance is the cornerstone of grants management.

Once a grant award is accepted, the City accepts formal, legal responsibility to follow the rules and regulations of the grant including requirements stated in the original request for proposal, the notification of award, and any other supplemental documentation, including the budget. Failure to comply with the terms and conditions could result in a finding of noncompliance and result in the following:
- The City could be labeled as a high-risk grantee, which could result in suspension or termination of current grant projects, and/or impact the City’s eligibility for future grant funding; - Cash payments/reimbursements may be withheld until any given deficiency is corrected; - All or part of the costs for project activity or action that is not in compliance may be disallowed, meaning the City would have to reimburse the funding agency for disallowed costs; - Future awards for the project may be withheld; and/or - Other legal remedies may be imposed.

Additionally, the City may be disbarred, suspended, or excluded from managing federal awards and subawards for mismanagement or misuse of grant funds.

Audit Readiness
An important thing for Project Managers to remember is that all grant project records are subject to internal and external audits. When organizations receive external grant funds, particularly state or federal funds, they are responsible for using those funds in accordance with laws and regulations. Recipients must use fiscal control and accounting procedures to ensure proper disbursement of and accounting for these funds. The effective management of public and private funds should be the result of ongoing activities that ensure audit readiness, such as:
 Administrative controls: Internal policies and procedures an organization follows as part of its normal business operations.
 Accounting controls: Internal policies and procedures that protect an organization’s finances and financial records.
 Compliance with Federal, state, and grant program requirements: Adherence to laws and regulations related to reporting of financial status, treatment of grant-related income, eligibility of participants, monitoring of activities, allowability of charges, and direct and indirect cost allocations.  Records: Should include information adequate to support statements in the proposal and should be retained for the required period of time.
 Internal audits: May be requested by the funding agency to assist in determining the adequacy of controls and systems.

Common Audit Findings
Finance researched a variety of sources to identify the most common audit findings related to the management and administration of grants. Audit findings can have a negative impact on the City and its ability to obtain grants in the future. The monthly compliance reviews are just one way that the Project Manager assists in ensuring the potential for audit findings are minimized throughout the grant period.

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Common Budget-Related Audit Findings
- Unallowable costs charged to grant
- Inaccurate administrative costs
- Misallocation of costs (amounts expended in
unapproved cost category or other category)
- Budget adjusted without prior written
approval
- Excessive cost transfers / journal entries
- Lack of time documentation to support
salaries charged to the grant budget
- Inaccurate time reporting or inadequate
documentation
- Lack of consulting agreements and invoices to
support services were related to grant and
costs were reasonable.

Common Match, In-Kind, Cost Sharing Audit Findings
- Cash and in-kind amounts not supported by
adequate documentation or not verifiable
- Using other federal funds as match
- Costs charged based on estimated amount
rather than actual costs
- Match claimed on Federal Financial Report
(FFR) based on estimates, not actual amounts
- Match expense incurred outside of grant
award cycle
- Match amounts unreasonable or excessive
- Match deemed unnecessary to implement
grant
- Match claimed that was not in the approved
grant budget
Other Common Audit Findings
- Noncompliance with assurances and special
terms and conditions of award
- Significantly behind schedule in meeting grant
deliverables or outcomes
- Missing or inadequate support
documentation for purchases
- Equipment purchased without program
officer approval
- Changes made to scope of work without
Program Manager approval
- Delinquent financial and progress reports
- Delinquent closeout report
- Inadequate or no subrecipient monitoring
- Missing acknowledgement of funding agency
on project materials, if applicable

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Section 7: Additional Guidance
Finance wants you to be successful in managing and performing the work of your grant project. While this handbook cannot contain information or guidance for every situation, the intent is that it provides overviews of the regulations that govern grants, best practices for successful grant management, guidance for navigating the City’s, and tips for efficient and effective management.

On-site Monitoring Visits
It is possible that during the life of your grant, the grant funding agency will conduct an on-site visit. These can be both programmatic and financial. If you are notified of an upcoming agency monitoring visit, the first thing you should do is notify your manager and Finance.

Conflict of Interest
The City requires that individuals involved in procuring goods and services for a grant be free of any conflicts of interest. Conflict may arise when an employee, officer, agent any member of the immediate family has a financial interest in the contract. Contractors who assist in the development or draft the grant application must be excluded from bidding to compete for the award. Individuals must disclose any conflicts of interest that exist to the awarding agency. Finance can assist individuals at the City with this process.

Disseminating Project Results
One of the final activities to consider as the grant-funded project comes to an end is how the grant project team will disseminate the evaluation results or capture lessons learned in a way that will inform ongoing practices. The proposal may have included a dissemination plan that outlined when, how, and with whom this information would be shared. Be sure to revisit this plan to ensure that the stated information is sent to the appropriate individuals, organizations, or publications. It is also important to consider opportunities to schedule presentations based on the project results or lessons learned at local, regional, and national meetings and conferences. This further promotes the City and the good work being done here to improve the quality of life. In some cases, it may be necessary, per the grant contract, to disseminate or make specific work products publicly available. Be sure to credit the grant funding agency as appropriate and where required when creating materials for public dissemination. Frequently, specific language is required by the grant funding agency to be included in any publications or materials generated from the award. Check with Communications if you have any questions about publicly disseminating grant-related work.

If the proposal did not include a dissemination plan or the grant contract did not prohibit the dissemination of results, the grant project results may be distributed to appropriate professional organizations and publications, shared at council meetings, or other means. At a minimum, project results should be submitted to the funding agency, City staff, and partner organizations that were involved with the project.

5.D.4
Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
Best Practices P a g e | 22
Department of Transportation (Caltrans) Grants
Certain grants will have additional regulations that must be followed in order to be compliant with the granting agency. For example, Department of Transportation provides specific contract and procurement requirements.

The federal government has delegated the California Department of Transportation (Caltrans) the authority to administer funds to local agencies through the Local Assistance Program. Caltrans requires local agencies to adopt the policies and procedures outlined in Chapter 10(Consultant Selection) of the LAMP as the process to be followed by staff.

If your division has received funding from Caltrans you must:

1. Attend the Local Agency A&E Contract Procurement Training https://www.youtube.com/watch?v=CtJGAzh1iJc&feature=youtube.

2. Review the Local Assistance Procedures Manual, including Chapter 10: Consultant Selection and A&E Boilerplate Agreement Language
The Project Manager for any Caltrans grant is responsible for:

1. Contract negotiation, consultant performance evaluation, and submitting invoices to Finance for payment.
a. Exhibit 10-R A&E Boilerplate Agreement Language is used on all consultant contracts utilizing DOT funds.
b. Required contract provisions from the Master Agreement are included in future consultant contracts and adequate documentation of any deviations are maintained. c. Required language is included in the Request for Proposal and contract provisions that require the consultants and sub-consultants to identify the key personnel staff by name and classification in their cost proposals and consultant invoices.
d. The PM must ensure key personnel are identified in consultant invoices by name and their costs are authorized in the executed contract.

2. Being familiar with the contract requirements, scope of services, and products to be produced.

3. Being familiar with the qualifications of the consultant's staff & changes in key personnel.

4. Attending progress & project review meetings, to ensure project delivery according to schedule milestones.

5. Ensuring consultant costs billed are allowable and consistent with the contract terms. a. Reimbursements to consultants are consistent with terms of the executed contract including, but not limited to travel reimbursement and labor rates
b. Consultant billing rates are detailed to include the cost breakdown of labor, fringe benefits and indirect costs included in the submitted consultant proposal or as negotiated with the most highly qualified consultant.
c.

6. Evaluating and participating in decisions for contract modifications. a. Any modifications to the contract for personnel substitutions, labor rates, and/or any other cost proposal changes must be:
i. Agreed upon by the City and the consultant.
ii. Documented prior to reimbursement for these changes to the executed or amended contract.

7. Documenting contract monitoring activities and maintaining supporting contract records, as specified in 2 CFR 200.333

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Additional Resources for Department of Transportation (Caltrans) Grants ➢ Additional guidance and manual for Caltrans can be found at the address below:
<https://dot.ca.gov/programs/local-assistance>
➢ Local Assistance Procedures Manual (LAPM)
<https://dot.ca.gov/programs/local-assistance/guidelines-and-procedures/local-assistanceprocedures-manual-lapm> ➢ Chapter 10: Consultant Selection
<https://dot.ca.gov/-/media/dot-media/programs/local-assistance/documents/lapm/ch10.pdf> ➢ Exhibit 10-R: A&E Boilerplate Agreement Language:
<https://dot.ca.gov/-/media/dot-media/programs/localassistance/documents/lapm/c10/10r.pdf>

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Glossary
Grants Terminology and Acronyms
501(c)3: Section of the IRS Code that authorizes and defines most tax-exempt organizations, which must be organized and operated for a public purpose. 501(c)3 is the most common type of non-profit designation.

Activities (developmental vs. operational): developmental activities are those that use innovative approaches to solve an institutional problem. Operational activities are those that are performed in the course of normal everyday City business.

Administrative Fees/Overhead: Portion of a grant or contract that may be used for non-programmatic costs, sometimes unallowable or with limits set by the funder as a percentage of the total grant. (See also Indirect Costs).

Allowable Cost: A cost for which an institution or agency may be reimbursed under a grant or contract with a government agency.

Amendment: Modification of an existing grant or contract agreement. Must be in writing.

Appropriations: Federal or State congressional legislation that approves spending for a particular agency or group of agencies.

Audit: Detailed financial analysis performed by an independent accounting firm at the end of the institution’s fiscal year. Can also be conducted by a federal or state funding agency at the end of a grant project period. Program audits are also sometimes required by the funder to ensure outcomes were achieved and money was spent in accordance with the grant agreement.

Authorized Organizational Representative (AOR): Member of organization authorized to submit applications in Grants.gov on behalf of the organization.

Award: Financial assistance that provides support to accomplish the program or public purpose.

Award Letter: Written notification from the funding agency indicating that a project has been funded.

Best Practices: Theories and activities within a given field that have been demonstrated to be successful in addressing issues or needs in the field. These programs, processes, or services have been tested and can be replicated.

Block Grants: Funds distributed by the federal government to state and local governments for broad purposes allocated based on population (e.g., community development block grants - CDBG).

Boilerplate Language: Standard narratives about an organization, program, or service that is kept on file to be easily pasted into a proposal or grant application with only minor modification/adaptation needed.

Budget: Fiscal plan for entire organization, specific program, or specific project that includes an itemized list of projected revenues (income) and expenses. Generally created on an annual basis for organizations and for the entire project period for a grant.

Budget Modification: Formal change in the allocation of grant funding when a deviation from the grant budget approved by the funder is needed. Any deviation from the approved grant budget requires formal approval from the funder. The percentage of allowed deviation is generally stated in the grant agreement.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Budget Narrative: Detailed description of each line item included in the proposed grant budget. Describes how the amount was calculated and how it supports the program. All budget items should support the activities described in the scope of work.

Cage Code: Five-character code which identifies companies doing business with the federal government and is assigned through SAM.

Capacity: The organization’s ability to effectively manage a grant, to have the requisite resources and institutional support, and to ensure that the program is implemented successfully. This can include grant management experience, subject matter expertise, staffing, fiscal systems, space, equipment, and other assets needed to support the grant.

Capital Funding: Grant or budget to assist in construction or renovation of building(s) or space(s) in a building, or the acquisition of equipment (valued at $10,000 or more with a life span greater than one year).

Catalog of Federal Domestic Assistance (CFDA): Resource listing all new, existing, and past federal programs. Each federal grant has an CFDA number assigned to it and is required on the Standard Form 424, the cover sheet for federal proposals.

Challenge Grant: Grant offered by a funder to encourage other grant makers or individuals to support a particular program. These funds are only received if the other funds are obtained.

Community-based Organization (CBO): Non-profit groups that work at the local level to improve life for the residents.

Community Foundation: Foundation established for the purpose of managing funds for the benefit of a community in which it functions.

Competitive Grant: Grant award by a government agency or private funder through a competitive application process. Proposals or applications are submitted in response to a Request for Proposals (RFP) or a Notice of Funding Opportunity (NOFO) and are scored according to established evaluation criteria.

Conflict of Interest: When two or more contradictory interests relate to an activity by an individual or organization.

Situations in which financial or other personal considerations may compromise or have the appearance of compromising an individual’s judgement in conducting work or research.

Corporate Foundation: Foundation that is separate and independent of a company established solely for charitable purposes. Maintains close ties with the parent company and giving usually reflects the company’s interests.

Cost Sharing/Matching: Portion of project costs not paid by federal funds. Can be value of allowable third-party inkind contributions or expenditures of awardee.

Demonstration Project/Grant: Project designed and funded to determine the viability of a new idea, program, or service. Can test and measure the effects of new programs or program changes in a real-world environment.

Determination Letter: Letter from the IRS affirming that an organization is eligible for tax-exempt status.

Direct Costs: All budget items that directly support the work of the project and are allowable and allocable in accordance with the grant agreement and approved budget.

Discretionary Grants: Funds awarded on the basis of a competitive process. Awardee is selected based on merit and eligibility.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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DUNS Number: Data Universal Numbering System number assigned by Dun & Bradstreet to every organization that applies for a grant. Required for all federal grant applications.

Eligibility Guidelines: Requirements the applicant must meet as defined by the funder in order to be eligible to apply for a specific grant.

Employer Identification Number (EIN): Unique identification number assigned by the IRS to a business entity. Also known as a Tax Identification Number (TIN).

Evaluation Plan: An integral part of a proposal that describes a systematic process for gathering, analyzing, and reporting information about a program. A detailed plan for measuring a project’s or program’s effectiveness and impact on participants.

Federal Register: Federal government publication in which grant announcements (NOFAs, FOAs, RFAs, RFPs, or SGAs), rules and regulations, and other notices are published.

Fiscal Year (FY): 12-month period of operation of an organization under its annual budget. The City has a fiscal year running from July 1 to June 30 each year and the federal government’s is October 1 to September 30. Fiscal year is designated by the year in which the fiscal year ends.

Form 990: IRS form entitled Return of Organization Exempt from Income Tax which must be filed annually by tax exempt organizations. Provides overview of organization’s activities, governance, and detailed financial information.

Formula Grants (also known as entitlement grants): Federal government funding provided to states and major municipalities based on a formula that accounts for number of individuals entitled to that funding. Could be based on total population or individuals in a specific category such as elderly, disabled, youth, etc.

General Operating Funds: Funding for the organization as a whole for any purpose that furthers the mission of the organization. Funding for costs that cannot be allocated to a specific project or program. Also called unrestricted funds or administrative overhead.

Governmental Institution: Designation given to an institution acting as an instrumentality of a governmental unit.

Grant: Award of money, or sometimes goods or services, to accomplish a specific purpose defined by the funder to be carried out by the grantee.

Grant Project Administrator: Project Manager identified by the City to manage a grant in accordance with the grant agreement.

Grant Agreement: Legally binding document that states funder’s requirements, terms, and conditions. Once signed by both parties, the funder and the City are legally bound to those legal terms and conditions. Changes to these term and conditions must be in writing.

GAN: Grant Agreement Number
Grant Guidelines: Funder’s official instructions for applying for a grant laid out in the forms of NOFAs, FOAs, RFAs, RFPs, or SGAs. Details components of grant proposal or application that must be included to be considered responsive and viable.

Grant maker: Entity that provides grants. Can include government agencies, foundations, associations, and corporations.

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Grants.gov: A common website for federal agencies to post discretionary funding opportunities and for grantees to find and apply for them.

Impact Statement: Demonstrates how the work will make a difference in the lives of people and communities.

Indirect Costs: Costs that are incurred for common or joint objectives and cannot be readily identified with a particular final cost objective. Many funders limit the Percentage of total program costs allowable to pay for overhead. (See also Administrative Overhead)
In-kind Contribution: Goods or services that are donated to an organization in support of a project or program. Inkind contributions should be identified in the budget as in-kind and described in the budget narrative. In-kind can be used as matching funds in some cases.

Institutionalization: Permanent or long-term support for or absorption of a specific program or service by the institution in order to sustain it after the grant funding has ended.

Key Staff/Personnel: Administrators and/or staff who are critical to implementation and management of a specific project/grant. Contribute to the execution of a project in a substantive, measurable way, regardless if they are directly funded by the grant. Any change in key personnel named in the grant agreement should be communicated to the funder immediately.

Kickoff Meeting: First meeting of the grant project team (and sometimes the funder) to have an open discussion regarding the details of the grant and project. Grants director will answer any questions regarding processes or procedures, discuss budget and reporting requirements, and ensure all roles and responsibilities are defined and understood.

Letter of Intent (LOI): Preliminary, non-binding indication of an organization’s intent to submit an application or proposal.

Letter of Inquiry (LOI): Proposal letter to introduce your organization, project idea, and proposed budget in an effort to get an invitation to submit a full proposal.

Letters of Support: Letters included in a grant proposal describing the support of the project from legislators or external organizations (e.g., local industry, community organizations, other colleges or universities, small businesses).

Local Assistance Procedures Manual (LAMP): Assistance provided by Caltrans for all DOT grants Match (or Matching Funds): Amount or percentage of total budget that a funder may require an applicant to commit to the program, if funded. Match can be in-kind contributions, case, or a combination of both.

Memorandum of Understanding (MOU): Agreement signed by authorized representatives of each organization or from each partner of a project that specifies the activities and services that each organization will perform and the expectations/responsibilities that each organization has from the grant project. Also can be a Memorandum of Agreement (MOA).

Needs Assessment: Systematic process for gathering qualitative and/or qualitative data and documentation used to identify needs, gaps, and solutions to get an organization from a state of “what is” to a state of “what should be.” There are a variety of needs assessments conducted at the City, including Housing Needs Assessment, Program Needs Assessments, etc.

5.D.4
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Needs Statement (Problem Statement): Section of a grant proposal that defines the issues, needs, or problems, that a program will address. Proposals to government agencies generally require greater documentation and data to document the problem. Includes research from the field.

Non-federal Entity: State, local government, Indian tribe, or nonprofit organization that carries out a Federal award as a recipient or subrecipient.

Notice of Funding Availability (NOFA): Formal, published announcement made by a funder (generally a government agency) of a funding opportunity for a specific program identified in the NOFA. Also called a Notice of Funding Opportunity (NOFO), Request for Proposals (RFP), or Request for Application (ROA).

Objectives: Clearly defined and measurable results (outcomes) that a project or program is expected to achieve.

Outcomes: Intended, measurable results of a project or program.

Outcome Evaluation: Process of determining whether and to what extent a project or program achieved its results.

Generally accomplished through quantitative research methods.

Pass-through Entity: Non-federal entity that provides a subaward to a subrecipient to carry out part of a Federal grant program.

Process Evaluation: Application of research methods, generally qualitative, to determine if a program was implemented the way it was intended to be implemented. Provides feedback to program managers to take corrective action. Also called Formative Evaluation.

Program Evaluation: Systematic process for analyzing indicators and documenting whether or not a program has achieved its objectives or intended outcomes. Complexity is dependent on funder’s requirements.

Program Officer (Grants Officer): Staff member of funding organization who receives grant proposals and processes applications for a government agency or foundation.

Project Period (Performance Period): Length of time of the grant-funded project approved by the funder.

Request for Proposal (RFP): Document issued by funding agency inviting eligible organizations to submit a proposal for a specific funding opportunity. Seen more in federal contracts than federal grants. Also called Request for Application (RFA), Request for Quote (RFQ), or a Solicitation.

SAM Cage Code: Five-character ID number used extensively within the Federal government. It is assigned to identify a given legal entity at a specific location.

Seed Grant: Grant funds used to start a new project or program.

Site Visit: On-site visit by a funding agency that is considering the City for a grant which allows the agency to assess the information contained in the proposal and to ask additional questions to determine capability of the City to perform the work of the grant.

Subrecipient: Non-federal entity that receives a subaward from a pass-through entity to carry out a part of a Federal program, but does not include an individual that is a beneficiary of such program.

Supplanting: Using grant funds to pay for ongoing activities already budgeted for or for the usual activities assigned to a position. Supplanting is not allowed.

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System for Award Management (SAM): Federal government database that validates applicant information and electronically shares the secure and encrypted data with federal agencies’ finance office to facilitate paperless payments through EFT. Stores organizational information allowing Grants.gov to verify organizational identity and to pre-fill organizational information on grant applications.

5.D.4
Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual)

Page 1 of 2 ends

Ord Amending Section 1.20.010 re places designated for posting.

ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARVIN
AMENDING ARVIN MUNICIPAL CODE CHAPTER 1.20.010 RELATED

TO PLACES DESIGNATED FOR POSTING PUBLIC NOTICES AND

POSTING OF AGENDAS RELATED TO MEETINGS SUBJECT TO THE
BROWN ACT.

WHEREAS, the City of Arvin (“City”) desires to amend, clarify and codify its Municipal Code Chapter related to public places designated as places for posting of public notices; and WHEREAS, the current Arvin Municipal Code Section 1.20.010 designates places that no longer exist, as the places for posting of public notices; and WHEREAS, this Ordinance amendment updates the Arvin Municipal Code to change locations of postings; and
NOW, THEREFORE, the City Council of the City of Arvin does hereby ordain as follows:

1. Section 1.20.010 of the Arvin Municipal Code is hereby adopted, amended and restated to read as follows:

1.20.010 Places designated.

The following public places in the city are designated as places for the posting of public notices:

A. City Hall/City Council Chambers;
B. Arvin Police Department;
C. Community Development Department;
D. City of Arvin Website
The following public places in the city are designated as places for the posting of agendas related to meetings subject to the Brown Act.

A. City Hall/City Council Chambers;
B. City of Arvin Website

2. The City clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be posted within 15 days after its passage, in accordance with Section 36933 of the Government Code.

3. Severability. If any section, subsection, sentence, clause, phrase, or word of this Ordinance is, for any reason, deemed or held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or preempted by legislative enactment, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City

6.A.1
Attachment: Ordinance re Designated Places for Posting of Public Notices_021324 (Public Hearing - 2nd Reading & Adoption of Ordinance re

Page 2 of 2 ends

Ord Amending Section 1.20.010 re places designated for posting.

Council of the City of Arvin hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or word thereof, regardless of the fact that any one or more sections, subsections, clauses, phrases, or word might subsequently be declared invalid or unconstitutional or preempted by subsequent legislation.

4. This Ordinance shall take effect thirty days after its adoption pursuant to California Government Code section 36937.

5. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law.

I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving reading, except by Title, at a regular meeting thereof held on the 23rd day of January 2024, and adopted the Ordinance after the second reading at a regular meeting held on the 13th day of February 2024, 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:

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 Ordinance passed and adopted by the City Council of the City of Arvin on the date and by the vote indicated herein.

6.A.1
Attachment: Ordinance re Designated Places for Posting of Public Notices_021324 (Public Hearing - 2nd Reading & Adoption of Ordinance re CC Report Ord Amending Title 8 to permit outdoor commercial cannabis Page 1 of 2

CITY OF ARVIN
Staff Report
Meeting Date: February 13, 2024
TO: Arvin City Council
FROM: Chris Soriano, City Planner
Jeffrey Jones, City Manager/Finance Director
Jake Raper, Contract Planner
SUBJECT: Second Reading and Adoption of an Ordinance of the City of Arvin of the City Council, CA2024-01- Amending Ordinance 2022-479 Which Established Title 8, Chapter 8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code to Address The Outdoor and Mixed-Cultivation of Commercial Cannabis and acceptance of the California Environmental Quality Act (CEQA) Notice of Exemption.

BACKGROUND:

The City Council on January 23, 2024, conducted its public hearing and at the conclusion of the hearing introduced by title only and waived the first reading of CA2024-01 Amending Ordinance 2022-479 which established Title 8, Chapter 8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code to Address the Outdoor and Mixed-Cultivation of Commercial Cannabis and acceptance of the California Environmental Quality Act (CEQA) Notice of Exemption.

The City Council adopted Ordinance No. 2022-479 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 proposed ordinance amendment would permit a limited number of Outdoor and Mixed-Cultivation of Commercial Cannabis activities and establish operational requirements.

In summary the operational requirements include minimum site size of one (1) acre, limit the number of outdoor applications to ten (10) for the year 2024, establishes separation distance from 600 feet to 1500 feet from sensitive uses, and establishes a fee of $25,000.00 per acre in addition to the established tax fees per Chapter 3.19, for commercial cannabis operations.

The City Council report for January 23, 2024, and supporting documentation are on file at the City Clerk’s office located at 200 Campus Drive, Arvin, CA 93203.

PUBLIC HEARING NOTICE:

The City Clerk, as required by state law, published the Notice of Intent to Adopt an Ordinance, on January 29, 2024 meeting the required noticing five (5) days prior to the city council meeting of February 13, 2024.

RECOMMENDATION – CITY COUNCIL ACTION:

Open the public hearing, receive summary staff report, receive public testimony, close the public hearing. Perform the second reading to be read by title only and adopt the attached “CA2024-01-

6.B.1
Attachment: 1-Staff Report AMC 8.29.05 re Outdoor Commercial Cannabis Updat_First Reading CC Mtg 021324 (Public Hearing - 2nd Reading CC Report Ord Amending Title 8 to permit outdoor commercial cannabis Page 2 of 2 Amending Ordinance 2022-479 Which Established Title 8, Chapter 8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code to Address the Outdoor and MixedCultivation of Commercial Cannabis.” CEQA Filing:

Upon the adoption of the code amendment, direct the City Clerk to file the Notice of Exemption with the Kern County Clerk Office and State of California Office of Planning and Research the California Environmental Quality Act (CEQA) Notice of Exemption.

Public Notice, publish within 15 days of Adopting of Ordinance CA2024-01:

Direct the City Clerk to publish the Summary Ordinance - Amending Ordinance 2022-479 Which Established Title 8, Chapter 8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code to Address the Outdoor and Mixed-Cultivation of Commercial Cannabis” within 15 days after the second reading and adoption by the City Council. The Summary Ordinance is to be published in compliance with Government Code Section 36933.

END OF REPORT.

Exhibit A:

An Ordinance, CA2024-01, 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 Address the Outdoor and Mixed-Cultivation of Commercial Cannabis.

Attachments on file at City Clerk’s Office:

1. Public Hearing Notice – 5-Days prior to CC Mtg of February 13, 2024.

2. Public Hearing Notice – NOTICE OF ADOPTION OF ZCA 2024-01 Outdoor Cultivation Within 15-Days after adoption.

3. Notice of Exemption – CA2024-01

4. Inserted Proposed Text Amendments to Ordinance No. 479

5. City Council Staff Report and Attachments dated January 23, 2024

6.B.1
Attachment: 1-Staff Report AMC 8.29.05 re Outdoor Commercial Cannabis Updat_First Reading CC Mtg 021324 (Public Hearing - 2nd Reading

Page 1 of 24 ends

Ord Amending AMC 8.29.05 re Outdoor Cultivation
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 ADDRESS THE OUTDOOR AND
MIXED-CULTIVATION OF COMMERCIAL CANNABIS.

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, in 1996, with the adoption of Proposition 215, the California voters approved the Compassionate Use Act (Health and Safety Code § 11362.5) to ensure that seriously ill Californians have the right to obtain and use cannabis for medical purposes where that medical use is deemed appropriate and has been recommended by a physician, without fear of criminal prosecution under limited, specified circumstances; and WHEREAS, in 2004, the State Legislature enacted SB 420, the Medical Marijuana Program Act (Health and Safety Code § 11362.7 et seq.), clarifying the scope of the Compassionate Use Act, providing additional statutory guidance regarding medical cannabis use, and allowing cities and counties to adopt supplemental rules and regulations; and WHEREAS, on October 9, 2015, the Governor signed the Medical Marijuana Regulation and Safety Act ("MMRSA"), comprised of California legislative bills AB 243, AB 266, and SB 643, creating a comprehensive state licensing system for the commercial cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medicinal marijuana, all subject to local control; and
WHEREAS, on June 27, 2016, the Governor signed SB 837, changing the title of MMRSA to the Medical Cannabis Regulation and Safety Act ("MCRSA"), changing the terminology therein from "medical marijuana" or "marijuana" to "medical cannabis" or "cannabis," and making other technical changes thereto. SB 837 also adopted regulations relating to the use and diversion of water in connection with the cultivation of cannabis; and WHEREAS, at the November 8, 2016, general election, the California voters approved Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act ("AUMA"), establishing a comprehensive regulatory and licensing scheme for commercial recreational (adultuse) cannabis operations, and legalizing limited personal adult-use cannabis use, possession, and cultivation; and
WHEREAS, on June 27, 2017, Governor Brown signed Senate Bill 94, the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA"), which merged the regulatory regimes of MCRSA and AUMA; and
WHEREAS, MAUCRSA, at Business & Professions Code §26050, establishes 20 different types of state licenses, including permit types pertaining to cannabis cultivation, manufacturing, testing, retailing, and distribution, which medicinal and adult-use cannabis

6.B.2
Attachment: 2-Ordinance AMC 8.29.05 re Outdoor Commercial Cannabis Update_First Reading CC Mtg 021324 (Public Hearing - 2nd Reading

Page 2 of 24 ends

Ord Amending AMC 8.29.05 re Outdoor Cultivation
businesses must obtain, depending on the nature of the cannabis business, in order to operate legally in the State; and
WHEREAS, MAUCRSA, at Business & Professions Code §26200(a)(1), provides that local jurisdictions may adopt and enforce local ordinances to regulate or prohibit any or all types of medicinal and adult-use business operations licensed by the state under Business & Professions Code §26050, including, but not limited to, by imposing local zoning and land use requirements; and
WHEREAS, MAUCRSA, at Business & Professions Code §26055(d), provides that a State commercial cannabis license may not be issued to an applicant whose operations would violate the provisions of any local ordinance or regulation; and WHEREAS, MAUCRSA, at Business & Professions Code §26201, provides that any standards, requirements, and regulations regarding health and safety, environmental protection, testing, security, food safety, and worker protections established by the state for the various types of medicinal and adult-use commercial cannabis operations licensed by the state under Business & Professions Code §26050 shall be the minimum standards, and that a local jurisdiction may establish additional or more stringent standards, requirements, and regulations; and WHEREAS, pursuant to MAUCRSA, the California Bureau of Cannabis Control ("BCC"), Department of Food and Agriculture ("CDFA"), and Department of Public Health ("CDPH") adopted emergency regulations which establish additional State license types and specify the process and requirements for obtaining state licenses to engage in all types of commercial medicinal and adult-use cannabis activities in the State of California ("Regulations"); and
WHEREAS, the Regulations were approved by the State Office of Administrative Law on December 7, 2017; and
WHEREAS, the BCC is now accepting applications for temporary and annual state licenses for commercial cannabis retailers, distributors, microbusinesses, testing laboratories, outdoor grows, and cannabis events; and
WHEREAS, the CDPH is now accepting applications for temporary and annual state licenses for commercial cannabis manufacturers; and
WHEREAS, the CDFA is now accepting applications for temporary and annual state licenses for commercial cannabis cultivators, nurseries and processors; and WHEREAS, several California cities have reported negative impacts of cannabis cultivation and related activities, including but not limited to offensive odors, criminal activity, (such as trespassing, theft, violent robberies and robbery attempts, and the illegal sale and distribution of cannabis), and public health and safety concerns (such as fire hazards and problems associated with mold, fungus, and pests); and
WHEREAS, cannabis plants, as they begin to flower and for a period of two months or

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more, produce a strong odor, offensive to many people, and detectable far beyond property boundaries if grown outdoors or if grown indoors without proper ventilation, odor control, and other regulations; and
WHEREAS, due to the value of cannabis plants and their strong smell (which alerts others to their locations), cannabis cultivation has been linked to break-ins, robbery, armed robbery, theft and attendant violence and injury, creating an increased risk to public safety; and WHEREAS, unregulated cannabis cultivation can be harmful to the welfare of the surrounding community and its residents and can constitute a public nuisance, in that cannabis cultivation has been shown to involve avoidance of environmental laws and regulations, and has resulted in the pollution of waters and navigable waterways in the State of California; and WHEREAS, unregulated indoor cultivation of cannabis has potential adverse effects on the structural integrity of the buildings in which cannabis is cultivated, and the use of high wattage grow lights and excessive use of electricity in such buildings increases the risk of fire, which presents a risk of property damage to the building and neighboring buildings, and endangers the building's occupants and nearby residents; and
WHEREAS, unregulated indoor cultivation of cannabis can also be harmful to the public health, safety and welfare in that electrical modifications risk fires, poor irrigation can cause mold, overloaded circuits can leave entire neighborhoods in the dark, plant chemicals can cause illness, improper carbon dioxide mixed with insufficient ventilation can cause injury or death, and structural changes put first responders in danger if they rush into the unknown; and WHEREAS, the Attorney General's August 2008 Guidelines for the Security and NonDiversion of Marijuana Grown for Medical Use recognize that the cultivation or other concentration of cannabis in any location or premises without adequate security increases the risk that nearby homes or businesses may be negatively impacted by nuisance activity such as loitering and/or crime; and
WHEREAS, there are numerous well publicized studies and reports, as well as numerous documented incidents in Kern County and throughout the State, which show that unregulated cannabis activities have a significant adverse effect on the community; and WHEREAS, in the absence of a formal regulatory framework, the adverse impacts frequently associated with commercial cannabis activities will occur, resulting in a potentially significant negative impact upon the environment and upon public health, safety, and welfare of the community; and
WHEREAS, outdoor cannabis cultivation and unregulated indoor cannabis cultivation are likely to result in these negative effects on the public health, safety, and welfare in the City, as reflected by the experiences of other cities; 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

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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, including storefront sales and 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, under U.S. Supreme Court precedent, government agencies generally may conduct regulatory inspections of "closely regulated" businesses without reasonable suspicion that the business subject to inspection has violated a statute or regulation, provided that the governmental agency conducting the inspection has "special needs," beyond its ordinary interest in enforcement of criminal statutes, to conduct inspections, the regulations in the particular area could not be enforced if public officials could conduct inspections only when they have a reasonable suspicion that a violation has occurred, the businesses subjected to inspection are engaged in a particular category of activity that reduces the reasonable expectation of privacy of those engaged in such activities in relation to the inspections at issue, and the discretion of inspecting officials is reasonably constrained by the authorizing statue (People v. Maikhio, 51 Ca1.4th 1074, 1091-92 (2011)); and
WHEREAS, commercial cannabis businesses cultivate, manufacture, dispense, distribute, test, or engage in other business activities relating to a historically criminalized substance which is often used for medical purposes, which can cause health and safety issues for those consuming it, which can be unsafe if improperly cultivated, manufactured or handled, and which is subject to illegal diversion, and as a result, state and local government agencies, including the City, have a strong governmental interest in regulating such businesses; and WHEREAS, businesses engaged in commercial cannabis activities constitute "closely regulated" businesses which have a reduced reasonable expectation of privacy due to the strong governmental interest in regulating such activities to protect against the potential risks to public health and safety relating to such activities, and therefore the probable cause and warrant requirements ordinarily required for law enforcement searches are relaxed as to such businesses; and
WHEREAS, the City has a special need, beyond its ordinary interest in enforcement of criminal statutes, to conduct regulatory inspections of commercial cannabis businesses due to the unique threats to public health, safety and welfare posed by such businesses, including but not limited to risks of fire and explosion resulting from improper cultivation, manufacturing or other processes used by such businesses, and the increased risk of crime, in the absence of proper security measures, resulting from the presence of valuable property on the premises of such businesses; and
WHEREAS, the regulations imposed by this Ordinance could not be effectively enforced if the City's officials could conduct inspections only when they have a reasonable suspicion that a violation has occurred, because often the threats to public health, safety and welfare arising from a commercial cannabis business will not be apparent from the outside, and any prior notice requirements associated with such inspections would allow such businesses to temporarily conceal or remove the conditions that give rise to such threats for purposes of passing the inspection, only to allow such conditions to return thereafter; and

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WHEREAS, based on the foregoing, the City Council intends to authorize reasonable suspicionless inspections of commercial cannabis business in the City by local officials as necessary to enforce this Ordinance and thereby safeguard public health, safety and welfare, and to impose reasonable constraints on the discretion of such inspecting officials by limiting their inspection authority to confirming compliance with this Ordinance and the applicable laws and regulations referenced herein; and
WHEREAS, in 2010, the City adopted Sections 17.02.435 and 17.07.01 of Title 17 of the Arvin Municipal Code pertaining to Medical Marijuana Dispensaries, placing a complete ban on dispensaries in the City based upon various health, safety and welfare and land use findings relating to marijuana cultivation, dispensing, and consumption; and WHEREAS, on November 21, 2017, the City Council adopted Ordinance No. 443, which added Chapter 8.29 "Commercial Cannabis Activity" to Title 8 of the Arvin Municipal Code, and which repealed Sections 17.02.435 and 17.07.01 of Title 17 of the Arvin Municipal Code pertaining to Medical Marijuana Dispensaries; and
WHEREAS, the Arvin Municipal Code already contained a Chapter 8.29 ("Sign Regulations [Private Property]") prior to adoption of Ordinance No. 443, and said chapter remains in full force and effect;
WHEREAS, the City Council renumbered and relocated the duplicative Chapter 8.29 "Commercial Cannabis Activity" to Chapter 8.29 of the Arvin Municipal Code, and amend and supplemented the regulations imposed by said chapter on commercial cannabis businesses and applicants in the City; and
WHEREAS, the City Council sees fit to amend and add the sections of the Arvin Municipal Code as listed below to regulate and govern outdoor commercial cannabis activity; and 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

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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. Section 8.29.05.02 Definitions is deleted, and Section 8.29.05.02 Definitions is hereby added to read as follows: (Note: Underlined text and highlighted text to show added definitions )
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 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.

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(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 License Types” Cultivation License types are based on the: Type of Production and Lighting Use and Number of plants grown or size of the canopy.

The canopy is the area where mature (flowering) plants are grown. (k) "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.
(l) "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.
(m) “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.
(n) "Distribution" means the procurement, sale and transport of cannabis and cannabis products between licensees.
(o) "Distributor" means a licensee engaged in distribution. (p) "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 Code or a drug as defined by Section 109925 of the California Health and Safety Code.
(q) Employee – See (ee) Responsible Person.
(r) "Fire Chief" means the Fire Chief for the City as designated by the Kern County Fire Department, or his or her designee.
(s) “General Cultivation Requirements” 1. Licensees are prohibited from transferring any commercially cultivated cannabis or nonmanufactured cannabis products from their licensed premises. All transfers of cannabis and nonmanufactured cannabis product from a licensed cultivation premises must be conducted by a distributor licensed by the State of California Department of Commercial Cannabis. 2. Artificial lighting is permissible only to maintain immature plants outside the canopy area.
(t) "HIPAA" means the Health Insurance Portability and Accountability Act of 1996.

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(u) "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.
(v) “Large Cultivation Licenses” (1)"Large Outdoor" is an outdoor cultivation site with more than one acre of total canopy. (2)"Large Indoor" is an indoor cultivation site with more than 22,000 square feet of total canopy. (3)"Large Mixed-light" is a Mixed-light cultivation site with more than 22,000 square feet of total canopy.
(w) "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.
(x) “Lighting Diagram” For mixed-light and indoor licenses, the lighting diagram on file with the Commercial Cannabis Application accurately reflects the location and maximum wattage of all lights in the designated canopy area(s), and the average lighting (watts per square foot of canopy) is within the limit of the license type. Mixed-Light Tier 1: no more than 6 watts per square foot; Mixed-Light Tier 2: above 6 and no more than 25 watts per square foot, and Indoor: More than 25 watts per square foot. Note: If lighting fixtures with a range of available wattage are used, use the maximum possible wattage to calculate average lighting. Greenhouse with 5 rows of 5’ x 50’ beds = 1,250 square feet of canopy 5 rows of 10 lights x 500 watts per light = 25,000 watts, Average lighting = (25,000 watts / (1,250 sq ft) = 20 watts / sq ft
(y) "Live plants" means living cannabis flowers and plants, including seeds, sprouts, immature plants (including unrooted clones), and vegetative stage plants. (z) "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(aa) "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.
(bb) "Manufacturer 1" means a licensee that manufactures cannabis products using nonvolatile solvents, or no solvents.
(cc) "Manufacturer 2" means a licensee that manufactures cannabis products using volatile solvents.
(dd) “Medium” 1. “Medium Outdoor” is an outdoor cultivation site with between 10,001 square feet and one acre of total canopy. 2.”Medium Indoor" is an indoor cultivation site with between 10,001 and 22,000 square feet of total canopy.

3."Medium Mixed-Light Tier 1 and 2" is a mixed-light cultivation site with between 10,001 and 22,000 square feet of total canopy.
(ee) "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.

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(ff) "Owner" means any person who has an ownership interest in a commercial cannabis business.
(gg) "Package" means any container or receptacle used for holding cannabis or cannabis products.
(hh) "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.
(ii) "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.
(jj) Processor” is a cultivation site that conducts only trimming, drying, curing, grading, packaging, and labeling of cannabis and nonmanufactured cannabis products. Cal. Code Regs. Tit. 4, § 16201
(kk) "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.
(ll) "Retailer" means a person who engages in the retail sale of cannabis or cannabis products to customers.
(mm) "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.
(nn) "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.
(oo) “Small” (1)"Small Outdoor" is an outdoor cultivation site with between 5,001 and 10,000 square feet of total canopy. (2)"Small Indoor" is an indoor cultivation site with between 5,001 and 10,000 square feet of total canopy. (3) "Small Mixed-Light Tier 1 and 2" is a mixed-light cultivation site with between 5,001 and 10,000 square feet of total canopy.
(pp) “Specialty:” (1) "Specialty Outdoor" is an outdoor cultivation site with less than or equal to 5,000 square feet of total canopy, or up to 50 mature plants on noncontiguous plots. (2) "Specialty Indoor" is an indoor cultivation site with between 501 and 5,000 square feet of total canopy. (3) "Specialty MixedLight Tier 1 and 2" is a mixed-light cultivation site with between 2,501 and 5,000 square feet of total canopy.
(qq) “Specialty Cottage” (1)"Specialty Cottage Outdoor" is an outdoor cultivation site with up to 25 mature plants or 2,500 square feet or less of total canopy.

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(2)"Specialty Cottage Indoor" is an indoor cultivation site with 500 square feet or less of total canopy. (3)"Specialty Cottage Mixed-Light Tier 1 and 2" is a mixed-light cultivation site with 2,500 square feet or less of total canopy. (rr) "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. (ss) "Stacking" means cultivating cannabis plants on platforms or tables and stacking them in multiple layers on top of each other.
(tt) "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.
(uu) "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. (vv) "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.
(ww) “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.
(xx) "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 4. Section 8.29.05.04, to Title 8 of the Arvin Municipal Code entitled “Permitted types of commercial cannabis business” is hereby amended as follows:

Section 8.29.05.04 - Permitted Types of Commercial Cannabis Businesses and Limitations (a) Commercial cannabis operations within the City, which comprise the activities of indoor and outdoor 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.

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

9. Upon authorization by the State of California, Type 5B = Cultivation; Mixed-Light; 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 = NonStorefront 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).

17. Type 11 = Distributor.

18. Type 12 = Microbusiness (subject to Sections 8.29.05.04(c) and

8.29.050).

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.

1. Type 1 – Cultivation; Specialty outdoor; Small

2. Type lA = Cultivation; Specialty indoor; Small.

3. Type 1B = Cultivation; Specialty mixed-light; Small.

4. Type 1C- Cultivation; Specialty cottage; Small.

5. Type 2- Cultivation Outdoor; Small

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

7. Type 2B = Cultivation; Mixed-light; Small.

8. Type 3 – Cultivation; Outdoor; Medium

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

10. Type 3B = Cultivation; Mixed-light; Medium.

11. Type 4 = Cultivation; Nursery.

12. Type 5-Cultivation; Outdoor; Large.

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

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

15. Type 6 = Manufacturer 1.

16. Type 7 = Manufacturer 2.

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

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

19. Type 8 = Testing Laboratory.

20. 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).

21. Type 10 = Retailer (subject to Section 8.29.050, i.e. delivery only).

22. Type 11 = Distributor.

23. Type 12 = Microbusiness (subject to sections 8.29.05.04(c) and 8.29.050).

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

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

26. 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.
(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 commercial cannabis permits authorizing the operation of outdoor cultivation that may be active or valid in the city at any given time shall not exceed ten (10) permits for 2024, shall not exceed an additional ten (10) permits in 2025, shall not exceed an additional ten (10) permits in 2026, and shall not exceed an additional ten (10) permits in 2027, additional permits be established by the city council.

SECTION 5. Section 8.29.05.05 Prohibited Types of Commercial Cannabis Business, to Title 8 of the Arvin Municipal Code entitled "Prohibited types of commercial cannabis businesses" is hereby amended as follows:

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a. Commercial cannabis business 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.

1. Type 10 and 12 (Storefront sales prohibited.)
All other portions of Section 8.29.05.05 shall remain as stated in the Arvin Municipal Code.

SECTION 6. Section 8.29.05.08, to Title 8 of the Arvin Municipal Code entitled “Security Measures” subsection (11) and (13) is hereby amended and subsection (16) is hereby added to read as follows:
(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 pedestrians 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 or upon the development and use of any outdoor cultivation operations as established per Section 8.29.05.115 Outdoor Cultivation of Commercial Cannabis. (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, separation from sensitive uses. 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 case-by-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.
(16) Security measures pursuant to this section may be modified by the City Manager for outdoor cultivation as established in Section 8.29.05.115(l) Outdoor Cultivation of Commercial Cannabis Security Measures.

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SECTION 7. Section 8.29.05.110, to Title 8 of the Arvin Municipal Code entitled "Location of Commercial Cannabis Business – Proximity to Sensitive Uses” is hereby amended to read 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. Except as expressly stated in

8.29.115 as related to outdoor commercial cannabis. 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). Outdoor commercial cannabis separation from sensitive use shall be 1500 feet and shall be measured from the outdoor cultivation area which does not include the setbacks and screening requirements. The applicant shall prepare a locational map verifying locational distance and shall certify that the structure location and outdoor cultivation area meet the six hundred feet separation requirements.
(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 the City. Location distance and/or separating commercial cannabis business, as described above, shall be measured from the exterior of the structure(s) OR from the property line where outdoor cultivation, minus setbacks and screening areas is proposed. Applicant shall prepare locational map verifying locational distance and shall certify that the structure locations meet the two hundred feet separation. However, if an existing building or facility or outdoor cultivation 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.

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SECTION 8. Section 8.29.05.115 of Title 130, Article 9 of the Arvin Municipal Code, entitled "Outdoor Cultivation of Commercial Cannabis" is hereby added to the Arvin Municipal Code to read as follows:

Section 8.29.05.115 – Outdoor Cultivation of Commercial Cannabis

1. Applicability.
a. The purpose of this ordinance is to permit certain specified commercial cannabis activities and uses within the City of Arvin, subject to the regulation and control of the City Council, including discretion to regulate such uses, including without limitation the density, intensity, number, proximity, location, and environmental standards of such uses. b. Cannabis is not an agricultural crop or product with respect to any provision in this Code that defines or allows cultivation of crops or agricultural products and nothing in Chapter

8.29.05 shall be construed to the contrary.
c. This ordinance applies regardless of whether commercial cannabis is cultivated for medicinal or recreational adult use.

2. Definitions. The terms and phrases in this section shall have the meaning ascribed to them in Section 8.29.05.02 - Definitions, unless the context in which they are used clearly suggests otherwise.

3. Limit on the number of outdoor commercial cannabis operations. The maximum number of outdoor commercial cannabis cultivation operations in the City of Arvin shall be limited as established by Section 8.29.05.04 Permitted Types of Commercial Cannabis Businesses and Limitations. This section sets the maximum possible permits only and nothing in this section shall be construed to require the City to issue a minimum or the maximum number of permits.

4. Outdoor Commercial Cannabis Cultivation.

Permitted By Right Zones. Outdoor Commercial Cannabis Cultivation permits are permitted subject to the issuance of a Commercial Cannabis Permit by the City Manager when located in the industrial and agricultural zone districts.

This section allows outdoor commercial cannabis cultivation as a new use authorized by this section only.
• Maximum Outdoor Cultivation Permits: Outdoor cultivation of commercial cannabis permits shall be limited as established under Section 8.29.05.04(d) Permitted Types of Commercial Cannabis Businesses and Limitations. • Minimum Site Area. The site area shall be a minimum of one (1) acre for any outdoor cultivation permit as required by Section 8.29.05.290 Total Area Devoted

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to Commercial Cannabis Businesses, Accessory Struture Limitation, Minimum Square Footage Required, and Minimum Parcel Size Required for Outside Cultivation. The city may require premises greater than proposed outdoor cultivation permit to maintain consistency with other laws, surrounding residential uses, and neighborhood compatibility.
• Canopy Coverage. The City may place additional and further restrictions on canopy size to maintain consistency with other laws, agricultural uses, and neighborhood compatibility. A cannabis cultivation operation shall not exceed the canopy size threshold established by State law. The various types of Outdoor cultivation permitted by the State range from 25 mature plants or 2500 square feet (Specialty Cottage) up to more than 1-acre total canopy (Large Outdoor). More than one license may be issued for one site which could increase the acreage. Each permit shall be a minimum of one (1.0) gross acre which includes setbacks and buffers.

5. Cultivation Standards.
a. In addition to any state requirements by any governing state agency, any City requirement pursuant to Section 8.29.05 Commercial Cannabis Activity, and any site specific requirements in a permit, outdoor cultivation of commercial cannabis shall comply with the following requirements. Any violation of state regulations, site specific requirements in a Commercial Cannabis Permit or Commercial Cannabis Annual Operating Permit, or these requirements is subject to enforcement, abatement, and revocation of a City permit under Section 8.29.05.170 (Violations and Enforcement). b. Location. Outdoor commercial cannabis cultivation shall not be located within 1,500 feet from any school, school bus stop, place of worship, park, playground childcare center, youth-oriented facility, pre-school, public library, licensed drug or alcohol recovery facility, or licensed sober living facility. Distance shall be measured from the from the outdoor cultivation area which does not include the setback and screening requirements that contains the commercial cultivation to the nearest point of the property line of the enumerated use using a direct straight-line measurement. A new adjacent use does not affect the continuation of an existing use that was permitted and legally established under the standards of this chapter.
c. Setbacks and Screening. Outdoor cultivation areas and all structures associated with the cultivation shall not be located in the front yard setback area and shall be screened from public view. Outdoor cultivation areas shall not be visible from the public right of way and adjacent parcels. Outdoor or mixed-light cultivation of commercial cannabis shall be setback a minimum of 50 feet from the property line of the site or public right-of-way.

The 50-foot setback shall be planted with corn or other plants to screen the outdoor or mixed- light cultivation of commercial cannabis. The setbacks may be reduced by the City Manager or designee when it is determined that an actual physical equivalent separation exists due to topography, vegetation or slope, and that the cannabis operation is not accessible or visible from the public right of way or adjacent parcel.

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d. Cannabis shall be screened from public view so that no part of a plant can be seen from an adjacent street or adjacent parcel. Screening shall be accomplished by enclosure within a greenhouse or hoop house or by use of fencing or vegetation. All greenhouses, hoop houses, and fences shall comply with all building and zoning codes and any other applicable law or regulation. Greenhouses and hoop houses are the preferred means of screening.
e. Odor. The cultivating, drying, curing, processing, and storing of cannabis shall not adversely affect the health, safety, or enjoyment of property of persons residing near the property on which cannabis is cultivated or processed due to odor that is disturbing to people of normal sensitivity. Any cannabis odor shall not be equal or greater than a 7 dilution threshold ("DT") when measured by the City with a field olfactometer at the property line on which the cannabis is cultivated or processed for a minimum of two olfactometer observations not less than fifteen minutes apart within a one hour period ("7 DT one hour"). If the odor from cannabis cultivating, drying, curing, processing, or storing violates this subsection, the permittee must reduce the odor below the 7 DT one hour at property line threshold within the time required by the City. Notwithstanding the prior issuance of a permit, the City may require installation of one or more odor control options, which may include but are not limited to the use of a greenhouse or hoop house that includes activated carbon filtration or equivalent odor abatement control equipment on the air exhaust, a vapor-phase odor control system, increasing the required setback, growing fewer plants, or growing only low odor cannabis strains. Installation of certain odor control options may require a permit. Any such notice requiring the use of one or more odor control options will provide a deadline for completion and the dilution threshold will be retested upon expiration of that deadline. The continued odor in excess of 7 DT one hour upon retesting will constitute a violation of this section subject to enforcement, abatement, and revocation of a Commercial Cannabis Permit under Section 8.29.05.170 (Violations and Enforcement).
f. Building Requirements and City Codes. All cannabis operations shall comply with all applicable sections of the City Codes.
g. Farmland Protection. Where a commercial cultivation site is located within an agricultural zone, the operation shall be consistent with the City’s General Plan Policy. If the premises are located on a site under a Land Conservation Act (Williamson Act) contract, the use must comply with the Land Conservation Act contract, any applicable land conservation plan, and the City of Arvin Rules for Agricultural Preserves and Farmland Security Zones, including provisions governing the type and extent of compatible uses listed therein. h. Fire Code Requirements. The applicant shall prepare and implement a fire prevention plan for construction and ongoing operations and obtain any permits required from the fire and emergency services department. The fire prevention plan shall include, but not be limited to: emergency vehicle access and turn-around at the facility site(s), vegetation management and fire break maintenance around all structures.

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i. Water Source. Commercial cannabis cultivation may only be permitted if sufficient evidence submitted to the City demonstrates there is adequate water supply to serve the cultivation site; and all required local and, where applicable, state permits from the State Water Resources Control Board and any other state agency with jurisdiction. The premises where the cultivation of cannabis takes place shall either be connected to a public water supply provided by Arvin Community Services District or an approved onsite water source by Kern County Environmental Health Services. j. Containment of run-off on project site. The activities associated with the cultivation of cannabis shall retain all water run-off and not create erosion or result in water run-off and/or contaminated runoff off of the project site. No water shall be permitted to flow onto or into the public right of way or neighboring owned parcel – all waters are to be retained on-site.
k. Water conservation measures. Cannabis cultivation operations shall include adequate measures that minimize the use of water for cultivation at the site. Water conservation measures, including but not limited to underground drip irrigation, soil moisture monitoring, water capture systems, grey water systems, or other equally effective water conservation measures, shall be incorporated into the cultivation operations in order to minimize the use of water where feasible.
l. Security measures. In addition to those security measures as promulgated in Section

8.29.05.08 Security Measures that the City Manager and/or his/her delegee determine are applicable, a site security plan (which shall be held in a confidential file, exempt from disclosure as a public record pursuant to Government Code Section 6255(a)), shall be required. In addition to the 8.29.05.08 security measures determined to be applicable, the site security plan must also address at least the following security measures:
i. Security cameras shall be motion-sensor and be installed with capability to record activity beneath the canopy but shall not be visible from surrounding parcels and shall not be pointed at or recording activity on surrounding parcels. Surveillance video shall be kept for a minimum of thirty (30) days. Video must use standard industry format to support criminal investigations.
ii. Alarms shall be installed to ensure the safety of persons and to protect the premises from theft.
iii. Security lighting deemed necessary by the City Manager or required pursuant to any regulations as may be promulgated by the City Manager, shall be installed and shall be motion activated.
iv. All outdoor cultivation sites shall be screened by non-invasive fire resistant vegetation and fenced with locking gates with a Knox lock. v. Razor wire and similar fencing shall not be permitted.

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vi. Weapons and firearms at the cultivation site are prohibited. vii. Security measures shall be designed to ensure emergency access in compliance with fire safe standards.
viii. All structures used for cultivation shall have locking doors to prevent free access.

The Security plans shall be reviewed and approved by the City of Arvin Police Department.
ix. Security Measures for Structures related to Outdoor Cultivation: Structures associated with outdoor cultivation shall comply with the security measures, as promulgated in Section 8.29.05.08 – Security Measures and subject to approval by the City of Arvin Police Department.
m. Pesticide Usage. Preference shall be given to applicants that maintain organic certification standards or the substantial equivalent, provided that maintaining organic certification standards or the substantial equivalent is a condition of the Commercial Cannabis Use Permit. Until the California Department of Food and Agriculture adopts an organic certification standard, the County Agricultural Commissioner shall determine whether a particular operation satisfies substantially equivalent organic criteria.

Documentation of all pesticides used shall be presented each year as part of the Commercial Cannabis Permit renewal process. All pesticides and fertilizers shall be properly labeled and stored and disposed of to avoid contamination through erosion, leakage, or inadvertent damages from rodents, pests, and wildlife and to prevent harm to persons, the environment, and wildlife.
n. Disposal of waste material. Cannabis waste material shall be disposed of in accordance with existing state and local laws and regulations at the time of disposal. Burning of cannabis waste material is prohibited. A waste management plan addressing the storing, handling, and disposing of all waste by-products of the cultivation and processing activities in compliance with the best management practices shall be submitted for review and approval. The plan shall characterize the volumes and types of waste generated, and the operational measures that are proposed to manage and dispose or reuse the wastes in compliance with best management practices. All garbage and refuse on the site shall be accumulated or stored in non-absorbent, water-tight, vector resistant, durable, easily cleanable, galvanized metal or heavy plastic containers with tight fitting lids. No refuse container shall be filled beyond the capacity to completely close the lid. All garbage and refuse on the site shall not be accumulated or stored for more than seven (7) calendar days and shall be properly disposed of before the end of the seventh day regarding solid waste management. All waste, including but not limited to refuse, garbage, green waste and recyclables, must be disposed of in accordance with local and state codes, laws and regulations. All waste generated from cannabis operations must be properly stored and secured to prevent access from the public.
o. Public Sewer or Sewage Disposal System. The premises where the cultivation of cannabis takes place shall either be connected to a public sewer system, have a Kern County Health Department inspected and approved sewage disposal system, enter into a

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service agreement for the provision of and maintenance of portable restroom facilities, drinking fountains, and handwashing units at the cultivation site, or have restroom facilities deemed appropriate by the City Manager, or authorized designee(s). p. Wastewater Discharge. A wastewater management plan shall be submitted identifying the amount of wastewater, excess irrigation and domestic wastewater anticipated, as well as disposal. All cultivation operations shall comply with the best management practices and shall submit verification of compliance with the waste discharge requirements of the state water resource control board, or waiver thereof. Excess irrigation water or effluent from cultivation activities shall be directed to a sanitary sewer, septic, irrigation, graywater, or bio-retention treatment systems. If discharged to a septic system, a system capacity evaluation by a qualified sanitary engineer shall be included in the management plan.

Such a plan must be permitted by the Kern County Health Department. All domestic waste for employees shall be disposed of in a permanent sanitary sewer or on-site septic system demonstrated to have adequate capacity.
q. Public Access and Improvement Required. Outdoor cultivation sites shall be located on sites that have or will have required public street right-of-way, dedication of street right-of-way, and meeting the City of Arvin improvement standards. Should an outdoor cultivation operation be proposed on a site not meeting the improved right-ofway requirement, the applicant shall enter into a Street Improvement Agreement. The agreement shall include but not limited to dedication of right-of-way, improvement of all road frontages (street improvement, curb, gutter, and sidewalk, street lighting, etc.), joining a or creating a Lighting and Landscape District, prior to the issuance of a Commercial Cannabis Permit by the City Manager. The City Manager may defer the implementation of the Deferred Street Improvement Agreement for a period of time not to exceed two (2) years.

6. Commercial Cannabis Nurseries.
a. A Commercial Cannabis Permit for a commercial cannabis nursery shall be subject to all of the restrictions and requirements in this section 8.29.05.115 for any activities of the nursery that will be conducted outdoors and all of the restrictions and requirements in any other section of 8.25.05 for all activities of the nursery that will be conducted indoors. b. A Commercial Cannabis Permit for a commercial cannabis nursery shall state the maximum square footage allowed for designated nursery areas with only immature plants, designated nursery areas for seed propagation that may contain mature plants, and designated research and development areas that may contain mature plants if the permittee will be conducting research and development activities that require a plant to flower. The City may place restrictions on such square footage to maintain consistency with other laws, surrounding commercial uses, and neighborhood compatibility. c. Nursery activities may not be permitted in a residential dwelling or accessory structure connected to a residential dwelling.

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7. Operating Standards.
a. Compliance Inspections. All cultivation sites shall be subject to on-site compliance inspections by agencies having jurisdiction. The inspection shall be conducted during regular business hours.
b. Hours of Operation. Outdoor harvesting activities and processing activities may be conducted seven (7) days a week, twenty-four (24) hours per day as needed. Deliveries and shipping, and outdoor processing activities, shall be limited to the hours from 8:00 a.m. to 5:00 p.m., unless modified by the City Manager. c. Occupational Safety. Cultivators shall comply with all applicable federal, state, and local laws and regulations governing California Agricultural Employers, which may include: federal and state wage and hour laws, CAL/OSHA, OSHA, and the California Agricultural Labor Relations Act.

SECTION 9. Section 8.29.05.160, to Title 8 of the Arvin Municipal Code entitled “Fees and Charges” is herby amended as follows:

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. Pursuant to Section 8.29.05.04(d), the City has limited the number of commercial cannabis permits authorizing the operation of outdoor cultivation that may be active or valid in the city at any given time shall not exceed ten (10) permits for 2024, shall not exceed an additional ten (10) permits in 2025, shall not exceed an additional ten (10) permits in 2026, and shall not exceed an additional ten (10) permits in 2027, additional permits be established by the city council.

4. Additional Fees:
a. Micro-businesses: Due to the limitation of square footage for commercial cannabis business, limitation to the maximum number of Micro-businesses, the

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applicant of and any assignee shall pay, upon approval of each Commercial Cannabis permit, a minimum sum of $25,000.00 annually for each permit and/or activity, regardless of operational status. The annual fee is in addition to the commercial cannabis tax established under Chapter 3.19.
b. Outside Cultivation – Mixed-Cultivation: Outside cultivation shall pay $25,000 per gross acre annually, the annual fee is in addition to the commercial cannabis tax established under Chapter 3.19. For clarification, gross area includes setbacks and screening areas and outdoor cultivation areas as established by Section 8.29.05.115 Outdoor Cultivation of Commercial Cannabis.
c. The annual payment shall be paid within 10 days of the approval/conditional approval of a Commercial Cannabis permit. Alternatively, payment(s) may be deferred by the City Manager but no later than the date of permit issuance of commercial cannabis permits by the State of California or may be deferred as may be approved by the City Manager.
d. Credit Upon Operation: Should the Commercial Cannabis business be operational within the first year, the quarterly tax liability due from the minimum quarterly payment(s) shall be credited toward that business’s annual payment of $25,000.0 per a. and b. above.
e. Should the Permit Holder fail to begin operations within two years of the first permit’s issuance, payment of the annual $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 established as a deterrent against non-operational permit holders. The non-operation of permitted Commercial Cannabis establishments is determined to be detrimental to the health and welfare of the City.

SECTION 10. Section 8.29.05.250, to Title 8 of the Arvin Municipal Code entitled "Operating requirements for cultivation businesses and nurseries” is hereby amended as follows:
a Outdoor commercial cultivation and outdoor nursery activity is permitted subject to Section 8,29.05 Commercial Cannabis Activity prohibited.

All other portions of Section 8.29.05.250 shall remain as stated in the Arvin Municipal Code.

SECTION 11. Section 8.29.05.290, to Title 8 of the Arvin Municipal Code entitled “Total Area Devoted to Commercial Cannabis Businesses” is hereby amended as follows:

Section 8.29.05.290 - Total Area Devoted to Commercial Cannabis Businesses, Accessory Struture Limitation, Minimum Square Footage Required, and Minimum Parcel Size Required for Outside Cultivation.
(d) Minimum parcel size of one-acre (1.0) gross area of 43,560 square feet required for outside cultivation and accessory uses each permit regardless of minimums established by the State of California for outdoor cultivation.

All other portions of Section 8.29.05.290 shall remain as stated in the Arvin Municipal Code.

SECTION 12. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this chapter or any part thereof is for any reason held to be unconstitutional, invalid,

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or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this chapter or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase of this chapter irrespective of whether one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases is held invalid or ineffective.

SECTION 13: 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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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 23rd day of January 2024, and adopted the Ordinance after the second reading at a regular meeting held on the 13th day of February 2024, 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:

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NOTICE OF EXEMPTION:

Filing of Notice of Exemption in Compliance with Section 15062 of the California Environmental Quality Act. Code Amendment -CA 2023-01 Title 8 -Outdoor Cultivation
Commercial Cannabis
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 35 days from the filing date.

TO: County Clerk
County of Kern
1115 Truxtun Ave., 1
st 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 Amendment - CA 2023-01 Title 8, of the City Council of the City of Arvin amending Title 8, Chapter 8.29, Section 8.29.05 Commercial Cannabis Activity of the Arvin Municipal Code to adopt new and amended permitting standards and regulations applicable to commercial cannabis outdoor cultivation activities in the City.

Project location: City locations within the industrial and agricultural zones.

Description of nature, purpose, and beneficiaries of project: Code amendments to Title 8 Health, Chapter 8.29 Marijuana, Section 8.29.05 Commercial Cannabis Activity allowing outdoor cultivation which benefits the City of Arvin and business applicants establishing commercial cannabis business within the City of Arvin.

Name of public agency approving project: City of Arvin, CA – City Council Adopted Ordinance No. 2024- XX Outdoor Cultivation – Commercial Cannabis on February 13, 2024.

Name and person or agency
carrying out the project
City of Arvin, 200 Campus Drive, Arvin, CA 93023
Exempt status: CEQA Guidelines, General Rule Exemption sections,15061(b)(3), 15307, 15308, and required findings 15300.2.

Reasons why the project is exempt: 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.

Contact person: Chris Soriano, City Planner, City of Arvin, 141 Plumtree Drive, Arvin, CA 93203
Signature/Title/ Date:

Chris Soriano, City Planner Date: February 14, 2024
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.

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CITY OF ARVIN
Staff Report
Meeting Date: February 13, 2024
TO: Arvin City Council
FROM: Christine Viterelli, Grants Manager
Jeff Jones, City Manager / Finance Director
SUBJECT: PUBLIC HEARING TO DISCUSS THE CLOSEOUT OF THE CITY OF ARVIN’S COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 18-
CDBG-12902 CITY OF ARVIN FRANKLIN STREET REHABILITATION

PROJECT
BACKGROUND:

CDBG Program regulations require that the City conduct a public hearing on all CDBG-related matters to provide for and encourage citizen participation, particularly by low- and moderateincome persons residing in areas where CDBG funds are used. Therefore, when the public hearing is opened, the public will be invited to comment on the City’s 18-12902-CDBG grant for the Franklin Street Rehabilitation project.

A public notice was published on January 25, 2024, in the issue of the Bakersfield Californian and posted at regular locations throughout the city, notifying the public of this public hearing.

In 2018, HCD released an announcement about the availability of CDBG Program funds. The City submitted an application to the NOFA and was awarded for the rehabilitation of Franklin Street.

Program Update

1. CDBG Over the Counter Program, 18-CDBG-12902
The City was awarded $2,872,138.00 in CDBG funds to rehabilitate Franklin Street. This project benefited 18,235 primarily Hispanic residents with very low, and low income and provided a benefit to the community that improved a heavily traveled arterial street that is no longer in substandard conditions and will have a useful life of at least 10 years.

Budget Total Expenses Disencumbered Funds
Total Implementation: $ 2,872,138. $ 2,766,283.10 $ 105,854.90 The grant expired on August 31, 2023; upon approval, the City will submit the final closeout documents to HCD, completing all obligations under the grant. Currently, an estimated total of $ 105,854.90 funds will be disencumbered.

6.C.1
Attachment: Staff Report re Close Out 02.13.24 (Public Hearing to Discuss the Closeout of CDBG 12902 Franklin Street) *Estimation of disencumbering: in the case that the need to disencumber changes for the current estimate is discovered, the City will work with HCD to disencumber those funds or to provide any credits.

DISCUSSION
When the Public Hearing is opened, citizens are encouraged to ask questions and/or comment on the closeout of the CDBG-18-12902 grant. Citizens are also invited to submit written comments to the City.

STAFF RECOMMENDATION:

Staff recommends that the City Council approve the CDBG-18-12902 closeout process and authorize its submittal to the CA Department of Housing and Community Development, Community Development Block Grant Program.

FINANCIAL IMPACT:

There is no fiscal impact for the closeout of the City’s CDBG grant.

ATTACHMENTS:

Public Hearing Notice (Published January 25
th, 2024)
CDBG 18-12902 Close-Out Reports (Drafts)

6.C.1
Attachment: Staff Report re Close Out 02.13.24 (Public Hearing to Discuss the Closeout of CDBG 12902 Franklin Street)

6.C.2
Attachment: Close Out Draft awaiting signature 2.6.24 (Public Hearing to Discuss the Closeout of CDBG 12902 Franklin Street)

CITY OF ARVIN

PUBLIC NOTICE
NOTICE IS HEREBY GIVEN that the City of Arvin will conduct a public hearing on February 13, 2024 at 6:00 p.m., at Arvin City Council Chambers located at 200 Campus Drive, Arvin, CA 93203 in order to discuss the closeout of the City’s 18-CDBG-12902 (Franklin Street Rehabilitation) grant.

PUBLIC HEARING
DATE: February 13, 2024
TIME: 6:00 p.m.

PLACE: Arvin City Council Chambers
200 Campus Drive, Arvin CA 93203
The City would like to give the public an opportunity to provide feedback regarding the expenditure and program outcome of all grant funds awarded under contract 18-CDBG-12902, which provided for the rehabilitation of Franklin Street. If you require special accommodations to participate in the public hearing, please contact Cecilia Vela, City Clerk, 200 Campus Drive, Arvin CA 93203 or call (661) 854-3134. In addition, a public information file is available for review at the above address during normal business hours. If you are unable to attend the public hearing, you may direct written comments to Cecilia Vela, City Clerk, 200 Campus Drive, Arvin CA 93203 or via email to [email protected].

The City of Arvin promotes fair housing and makes all its programs available to low- and moderate-income families regardless of age, race, color, religion, sex, national origin, sexual preference, marital status or handicap.

CIUDAD DE ARVIN
NOTICIA PÚBLICA
POR EL PRESENTE SE NOTIFICA que la Ciudad de Arvin llevará a cabo una audiencia pública el 13 de febrero de 2024 a las 6:00 p.m., en las Cámaras del Concejo Municipal de Arvin ubicado en 200 Campus Drive, Arvin, CA 93203 para discutir el cierre de la subvención 18-CDBG-12902 (Rehabilitación de la calle Franklin Street) de la Ciudad.

AUDIENCIA PÚBLICA
FECHA: 13 de febrero de 2024
HORA: 6:00 p.m.

LUGAR: Cámaras del Concejo Municipal de Arvin
200 Campus Drive, Arvin CA 93203
La Ciudad desea dar al público la oportunidad de dar su opinión sobre los gastos y el resultado del programa de todos los fondos de subvención otorgados bajo el contrato 18-CDBG-12902, que proveyó para la rehabilitación de la calle Franklin. Si necesita adaptaciones especiales para participar en la audiencia pública, comuníquese con Cecilia Vela, Secretaria Municipal de la Ciudad, 200 Campus Drive, Arvin CA 93203 o llame al (661) 854-3134.

Además, un archivo de información pública está disponible para su revisión la dirección proporcionada anteriormente durante el horario de apertura de la oficina. Si no puede asistir a la audiencia pública, puede dirigir sus comentarios por escrito a Cecilia Vela, Secretaria Municipal de la Ciudad, 200 Campus Drive, Arvin CA 93203 o por correo electrónico a [email protected]. La Ciudad de Arvin promueve la vivienda justa y pone todos sus programas a disposición de familias de ingresos bajos y moderados, independientemente de su edad, raza, color, religión, sexo, nacionalidad, preferencia sexual, estado civil o discapacidad.

Published: Bakersfield Californian, January 25, 2024

6.C.3
Attachment: PHN Arvin CDBG Franklin Close Out Hearing_Published Jan 25, 2024 (Public Hearing to Discuss the Closeout of CDBG 12902

6.C.4
Attachment: Proof of Publication Franklin Close out (Public Hearing to Discuss the Closeout of CDBG 12902 Franklin Street)

Page 1 of 2 ends

Staff Report Setting PH Date of Feb 27, 2024 – Request for Modification to Conditions of Approval – Starbucks.

CITY OF ARVIN
Staff Report
Meeting Date: February 13, 2024
TO: Arvin City Council
FROM: Chris Soriano, City Planner
Jake Raper, Contract Planner
Jeffrey Jones, City Manager/Finance Director
SUBJECT: Setting A Date to Conduct A Public Hearing of the City Council of the City of Arvin to Consider Request Submitted by Jhaj & Brar Investment Inc. for Modification to Conditions of Approval to the Site Development Permit 2022-322BMB-Starbucks, 320 Bear Mountain Blvd., Arvin, APN 190-130-27.

BACKGROUND:

The Planning Commission conditionally approved SDP2022-322BMB-Starbucks on December 14, 2022. The applicant later applied for modification to conditions ES&BI-8 and PL&A-2, which references the improvement of the alley located north of Bear Mountain Blvd. between A Street and B Street. The Planning Commission conducted a public hearing on September 19, 2023, and at the conclusion of the hearing the Planning Commission’s vote was 2-2, a tie vote which resulted in NO ACTION. The Planning Commission under a separate vote recommended that the item be forwarded to the City Council for their consideration. On October 10, 2023, the City Council conducted their public hearing on the request to modify the conditions. The City Council vote was 2-2 resulting in a tie vote which resulted in NO ACTION. No further action was taken at the public hearing of October 10, 2023 because the Applicant requested to withdraw their request to modify the conditions.

DISSCUSSION:

The applicant has resubmitted an application requesting deletion and modification of conditions ES&BI-8 and PL&A-2 which relate to the improvement of the alley located north of Bear Mountain Blvd. between A Street and B Street. The City Council must conduct a public hearing prior to consideration of the request. The attached public hearing notice proposes the meeting of February 27, 2024, in which the public hearing would be conducted.

RECOMMENDATION:

Staff recommends that the City Council consider setting the public hearing date to be held on February 27, 2024.

FISCAL IMPACT:

The applicant has paid the fees as established by the City Council to process the request for modification of conditions as established by the Planning Commission.

EXHIBIT:

1. Public Hearing Notice date of February 27, 2024, for the City Council of the City of Arvin to Consider Request Submitted by Jhaj & Brar Investment Inc. for Modification to

7.A.1
Attachment: 1-Staff Report Set PH Date of Feb 27, 2024 for Starbucks Request for Modifications to COA_021324 [Revision 1] (Set Public

Page 2 of 2 ends

Staff Report Setting PH Date of Feb 27, 2024 – Request for Modification to Conditions of Approval – Starbucks.

Conditions of Approval to the Site Development Permit 2022-322BMB-Starbucks, 320 Bear Mountain Blvd, Arvin, APN 190-130-27.

7.A.1
Attachment: 1-Staff Report Set PH Date of Feb 27, 2024 for Starbucks Request for Modifications to COA_021324 [Revision 1] (Set Public

CITY OF ARVIN
Notice of Public Hearing
Notice is hereby given that the City Council of the City of Arvin, California, will conduct a public hearing, at which time the public may be present and be heard, to consider the following:

Consider deletion and modification of conditions ES&BI-8 and PL&A-2 which relate to the improvement of the alley located north of Bear Mountain Blvd. between A Street and B Street, Site Development Permit 2022-322BMB-Starbucks.

Applicant: Jhaj & Brar Investment Inc.

Location: 320 Bear Mountain Blvd, Arvin, APN 190-130-27 - The project site is located on the north side of Bear Mountain Boulevard with A Street to the west and B Street to the East with an alley to the north of and adjacent to the project site which provides east and west access to A Street and B Street.

Purpose of Public Hearing: 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 email to [email protected]. All public comments will be provided to the City Council and may be read into the record or compiled as part of the record. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting and/or should you desire Spanish translation at the meeting, please call (661) 854-3134. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility and translation services.

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 (Govt. Code Sec. 65009). Address any communications or comments regarding the project to Cecilia Vela, City Clerk, 200 Campus Drive, Arvin, CA 93203, (661) 854-3134, [email protected]. /s/
Cecilia Vela, City Clerk
City of Arvin, California
Published: ON OR BEFORE FEBRUARY 17, 2024, Bakersfield Californian City Council of the City of Arvin Public Hearing Information Date: February 27, 2024
Time: 6:00 PM
Place: City of Arvin Council Chambers, 200 Campus Drive, Arvin, CA 93203

7.A.2
Attachment: Public Hearing Notice - Starbucks Request for Modifications to COA_021324 (Set Public Hearing Date for Starbucks Request for Staff Report Awarding Bid to United Rental for Heavy Equipment_021324.

Page 1 of 2 ends

CITY OF ARVIN
Staff Report
Meeting Date: February 13, 2024
TO: Arvin City Council
FROM: Pedro Barraza, Public Works Supervisor
Jeff Jones, City Manager
SUBJECT: Approval of A Resolution of the City Council of the City of Arvin Accepting and Awarding Bid and Authorizing the City Manager to Execute the Proposal from United Rentals for the Purchase of Heavy Equipment for the Public Works Department in the Amount of $121,688.48

BACKGROUND
The City of Arvin Public Works Department issued a request for sealed bids to purchase heavy equipment per Council’s direction to assist with improving City streets.

Arvin Municipal Code section 3.08.090 establishes a formal contract procedure for purchases over thirty thousand dollars and requires a notice inviting sealed bids to be published in a newspaper of general circulation, printed and published in the city of Arvin; requiring sealed bids submitted to the City Clerk; and identifying the time and place of the bid opening.

The Request for Bids invited sealed bids for any or all of the following heavy equipment:
2016-2020 John Deere 210L Skip Loader
2016-2020 John Deere 310 Backhoe with loader or Caterpillar 415F2 Backhoe with loader 2016-2020 Wacker Newson, or Volvo or Caterpillar 5-Ton Utility Compactors 2016-2020 Ditch Witch SX 500-gallon Vacuum Trailer
2016-2020 John Deere 2038R with loader and backhoe and forks 2016-2020 Toyota 3-Wheel electric Forklift 3,000-4,000 lb. lifting capacity The City received only one bid in response to the request submitted by United Rentals. United Rentals provided a bid for the following 2 equipment only:
1 Used - John Deere Skip Loader $57,289.68 (3 month warranty) 1 Used - Ditch Witch Vacuum Trailer $55,650.00 (3 month warranty) Tax: $ 8,748.80
Total: $121,688.48
Staff recommends the City Council approve to award the bid to United Rentals for the two heavy equipment listed above. Staff will seek quotes from vendors for the heavy equipment that were not bid on.

7.B.1
Attachment: Staff Report Award Bid to United Rentals for Heavy Equipment for PW Dept_021324 (Award Bid to United Rentals for Purchase of Staff Report Awarding Bid to United Rental for Heavy Equipment_021324.

Page 2 of 2 ends

RECOMMENDATION
Staff recommends that the City Council approve the Resolution of the City Council of the City of Arvin Accepting and Awarding Bid and Authorizing the City Manager to Execute the Proposal from United Rentals for the Purchase of Heavy Equipment for the Public Works Department in the amount of $121,688.48.

FINANCIAL IMPACT
The project is funded by the American Rescue Plan Act.

ATTACHMENTS
Bid from United Rentals

7.B.1
Attachment: Staff Report Award Bid to United Rentals for Heavy Equipment for PW Dept_021324 (Award Bid to United Rentals for Purchase of Reso Awarding Bid to United Rentals for Purchase of Heavy Equipment_021324.

Page 1 of 2 ends

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARVIN

ACCEPTING AND AWARDING BID AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE PROPOSAL FROM UNITED RENTALS

FOR THE PURCHASE OF HEAVY EQUIPMENT FOR THE PUBLIC
WORKS DEPARTMENT IN THE AMOUNT OF $121,688.48.

WHEREAS, the Members of the City Council of the City of Arvin requested that City staff seek to purchase heavy equipment to assist with improving City streets; and WHEREAS, Arvin Municipal Code section 3.08.090 establishes a formal contract procedure for purchases over thirty thousand dollars and requires a notice inviting sealed bids to be published in a newspaper of general circulation, printed and published in the city of Arvin; requiring sealed bids submitted to the City Clerk; and identifying the time and place of the bid opening; and
WHEREAS, on December 21, 2023 City staff issued a Request for Bids following the procedures as prescribed by AMC 3.08.090, inviting sealed bids from vendors for purchase of heavy equipment; and
WHEREAS, on January 25, 2024, at 3:00 pm, one bid was received at Arvin City Hall for this purchase and said bid was submitted by United Rentals for the following equipment:
1 Used - John Deere Skip Loader $57,289.68 (3-month warranty) 1 Used - Ditch Witch Vacuum Trailer $55,650.00 (3-month warranty) Tax: $ 8,748.80
Total: $121,688.48
and;
WHEREAS, Staff has examined the bid received, and found the bid from United Rentals to be a qualified responsive and responsible bid, and has recommended it for the award of this purchase; and
WHEREAS, the City desires to finance this purchase using American Rescue Plan Act funds; and
NOW, THEREFORE, BE IT RESOLVED THAT: The City Council of the City of Arvin does hereby resolve as follows:

1. The recitals above are true and correct and incorporated by this reference.

2. The City Council finds that United Rentals is the only qualified responsive and responsible bidder.

3. The City Council of the City of Arvin does hereby accept the bid received, awards the bid to United Rentals, and authorizes the City Manager to execute the proposal from United Rentals for the purchase of the heavy equipment.

7.B.2
Attachment: Reso Awarding Bid to United Rentals for Heavy Equipment for PW Dept__021324 (Award Bid to United Rentals for Purchase of Reso Awarding Bid to United Rentals for Purchase of Heavy Equipment_021324.

Page 2 of 2 ends

4. The City Council finds that this action is in the best interests of the City of Arvin.

5. The City Clerk shall certify the passage and adoption of this Resolution.

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 13th day of February 2024 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.

7.B.2
Attachment: Reso Awarding Bid to United Rentals for Heavy Equipment for PW Dept__021324 (Award Bid to United Rentals for Purchase of

7.B.3
Attachment: Bid for Heavy Equipment from United Rentals_021324_Redacted (Award Bid to United Rentals for Purchase of Heavy Equipment)

7.B.3
Attachment: Bid for Heavy Equipment from United Rentals_021324_Redacted (Award Bid to United

7.B.3
Attachment: Bid for Heavy Equipment from United Rentals_021324_Redacted (Award Bid to United Rentals for Purchase of Heavy Equipment)

7.B.3
Attachment: Bid for Heavy Equipment from United Rentals_021324_Redacted (Award Bid to United

7.B.3
Attachment: Bid for Heavy Equipment from United Rentals_021324_Redacted (Award Bid to United Rentals for Purchase of Heavy Equipment)

7.B.3
Attachment: Bid for Heavy Equipment from United Rentals_021324_Redacted (Award Bid to United Rentals for Purchase of Heavy Equipment) Staff Report – Necessity to Commence Eminent Domain Proceedings – APN 446-010-62.

Page 1 of 3 ends

CITY OF ARVIN
Staff Report
Meeting Date: February 13, 2024
TO: Arvin City Council
FROM: Jeff Jones, City Manager
SUBJECT: Report, Discussion, and Potential Approval of A Resolution of the City Council of the City of Arvin Declaring the Necessity to Commence Eminent Domain Proceedings for the Acquisition of the Property Located at the Southwest Corner of Millux and Tejon Highway, Arvin, California 93203, Assessor’s Parcel No. 446-010-62.

Recommendation:

Adopt the Resolution of Necessity (2/3 vote required).

Background:

Earlier this year, the City was ordered by the State Water Control Board to comply with new requirements related to its Wastewater Treatment Facility to comply with a Cease and Desist Order. In order to comply with these requirements, the City needs additional land to properly disperse the effluent from its Wastewater Treatment Facility.

The City, however, does not own sufficient land in the vicinity of the Wastewater Treatment Facility, and after analyzing the property surrounding the Treatment Facility, it was determined that the property located at the Southwest corner of Millux and Tejon Highway, Arvin, CA 93203, Assessor’s Parcel No. 446-010-62, is the best property to allow the City to comply with the State Water Control Board’s requirements. The property is designated as Restricted Commercial, C-1, zoning on the City General Plan Map and Zoning map.

A map showing the location of the property is attached as an exhibit to the proposed Resolution.

Staff has been in contact with the property owners. Additionally, an appraiser, retained by the City, assigned a fair market value to the property necessary to complete the Project. An offer from the City to acquire the property for the amount stated in the appraisal was made on September 15, 2023. Additionally, since sending the offer to acquire the property, the City has sought to negotiate the purchase of the property in good faith. However, the Property Owner has not agreed to a purchase price for the Property. Therefore, in order to comply with the State Water Control Board’s requirements, the City must consider the filing of an eminent domain action, which will allow the City to proceed with the project while the fair market value is determined by the Court.

Before an eminent domain case can be filed, the City Council must adopt, by at least a 2/3 vote, a “Resolution of Necessity.” This resolution makes certain findings required by state law and authorizes the city attorney to begin the proceedings.

7.C.1
Attachment: Staff Report Necessity to Commence Eminent Domain_Millux and Tejon Hwy APN 446-010-62 Garcia Property_021324 (Declaring Staff Report – Necessity to Commence Eminent Domain Proceedings – APN 446-010-62.

Page 2 of 3 ends

It must be emphasized that the price to be paid for the property is NOT the subject of this hearing.

This hearing has the sole purpose of determining whether the statutory findings can be made.

Statutory Findings:

The statutory findings required to be made, and the facts supporting the making of the findings, are as follows:
1 . The project is planned and located in a manner that will be most compatible with the greatest public good and the least private injury.

Facts: Yes, the closest property, which would allow the City to comply with the new requirements related to effluent is the Property at issue. This property is vacant and will require the least amount of work in order to allow the City to utilize it as intended.

Additionally, the Property is currently being used by the City’s contract farmer to disburse effluent. Therefore, the property, although vacant, is currently being utilized in the same manner as the City intends to utilize the property once acquired. This Project is deemed important for the safety of the residents of Arvin and is necessary to allow the City to continued compliance with the State Water Board’s Cease and Desist requirements.

2. The taking of the project is necessary for the proposed project.

Facts: Yes, as stated above, the City does not own sufficient land within the vicinity of its Wastewater Treatment Facility to allow it to comply with the State Water Control Board’s requirements. Additionally, because this land is currently vacant, it will require the lease amount of work to allow it to be utilized for the public’s interest.

3. The offer to purchase required by California Government Code Sec. 7267.2 was made to the owners of the property interests.

Facts: Yes, a written offer to acquire the property at the fair market value as determined by the appraiser was made on September 15, 2023.

4. The necessary notice of this hearing was given as required by Code of Civil Procedure Sec. 1245.235.

Facts: Yes, the notice was given by the City Clerk on December 20, 2023.

5. The City of Arvin has complied with all conditions and statutory requirements necessary to exercise the power of eminent domain.

Facts: Yes, as outlined in this staff report.

6. The City of Arvin has complied with all provisions of the California Environmental Quality Act for the project.

Facts: Yes. The land acquisition meets the exemption criteria pursuant to California Environmental Quality Act (CEQA) Guidelines, Chapter 18.04 CEQA Implementation and Environmental Clearance and Resolution No. 2022-08 CEQA Implementation Guidelines. Pursuant to Title 14 of the California Code of Regulations, Sections 15061 (b) (2) 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. This project and the associated project approvals are exempt from review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Section 15061(b)(2) and (3) because it can be seen with certainty that there is no possibility that it will have a significant effect on the

Page 3 of 3 ends

environment, as the proposed project is merely a transfer of ownership with no other changes to the land or use. In addition, the project is exempt pursuant to Section 15325, Class 25 (Transfers of Ownership of Interest in Land to Preserve Existing Natural Conditions and Historical Resources), subsection (b)- as the acquisition will allow the continued agricultural use of the area.

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. The project will not have a significant adverse impact on a historic resource.

The Notice of Exemption is to be filed with Kern County Clerk in accordance with the City of Arvin’s Guideline for the implementation of CEQA. For all the foregoing, including evidence in the administrative record, the City Planner recommends the City of Arvin adopts a Class 3 Categorical Exemption under CEQA Guidelines section 15301- Existing Facilities and 15061(b)(1) and (b)(3).

7. If any portion of the property is appropriated for a public use, the public uses are necessary and paramount pursuant to Code of Civil Procedure Sec. 1240.610, or alternatively, will not unreasonably interfere with or impair the continuance of the public use as it then exists or can be reasonably expected to exist in the future.

Facts: Yes, the property will be used for public purposes, including disbursement of effluent from the City’s Wastewater Treatment facility.

Fiscal Impact:

Acquisition of this property is included in the costs of the Project budget.

Conclusion:

If the City Council wishes to proceed with the project, then this Resolution should be adopted.

Attachments:
1) Resolution with Exhibits

7.C.1
Attachment: Staff Report Necessity to Commence Eminent Domain_Millux and Tejon Hwy APN 446-010-62 Garcia Property_021324 (Declaring Reso Necessity to Commence Eminent Domain Proceedings APN 446-010-62.

Page 1 of 9 ends

Arvin City CouncilFebruary 13, 2024

Arvin City Council
February 13, 2024