Agenda — City Council/Successor Agency/Public Finance Authority, June 9, 2022

CITY OF AVENAL
“Pistachio Capital of the World®”

REGULAR CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING
JUNE 9, 2022; 5:15 P.M.

AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA VIA ZOOM VIDEO/WEB CONFERENCING:

Web Link: bit.ly/AvenalCouncil or use https://us02web.zoom.us/j/87243440488 Or by calling +1 669 900 6833 and use meeting ID 872 4344 0488 to join.

StudySession: None
LAST ORDINANCE: 2022-03 CITY LAST RESOLUTION: 2022-34
(SA) LAST RESOLUTION: 2021-04 PFA LAST RESOLUTION: 2021-05 AGENDA

1. CALL TO ORDER & PLEDGE OF ALLEGIANCE:

2. ROLL CALL: Councilmembers: Louis Gravelle, Ricardo Verdugo, Pablo Hernandez, Mayor Pro Tem Alejandro Ramirez; Mayor Alvaro Preciado.

CITY CLERK:

Government Code Section 54952.3: The members of the City Council/Successor Agency are entitled to receive a total of $300.00 per month because of being elected to the City Council. They receive no other compensation for sitting as a member of Successor Agency.

3. CLOSED SESSION: (City/Successor Agency):

It is the intent of this governing body to meet in closed session to review its position and to instruct its designated representatives: Any person may directly address the Council/Agency at this time on items of interest regarding Closed Session.

A. PENDING LITIGATION (Government Code § 54956.9).

Conference with legal counsel – ANTICIPATED LITIGATION (Government Code § 54956.9(d)).

Significant exposure to litigation (Government Code § 54956.9(d)(2)).

Number of potential cases is: 1
B. PERSONNEL (Government Code § 54957(b)).

It is the intention of this governing body to meet in closed session to:

1. Hear Complaints or Charges Against a Public Employee.

2. Consider Public Employee Performance Evaluation for the Position of:
• City Manager

4. PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPEARANCES:

Any person may directly address the Council/Agency at this time on any item on the agenda or on any other items of interest to the public that is within the subject matter jurisdiction of the City Council/Successor Agency. State Law prohibits any member of the Council/Agency from commenting or acting on matters not on the agenda. Three (3) minutes are allowed per person.

5. CONSENT CALENDAR:

All items listed under the consent calendar are routine and enacted by one motion: (Action).

A. Consider City of Avenal/Successor Agency’s Approval of Minutes for May 26, 2022.

B. Consider Approval for Out of State Travel Requests to California Rural Water Association Expo, and Tri-State Seminar.

6. MAYOR & COUNCIL MEMBER/ SUCCESSOR AGENCY/ ITEMS FOR
CONSIDERATION:

A. Consider Dates for FY 2022-2023 Budget Hearings: (Discussion/Action).

June 9, 2022 Pg. 1

7. ACTIVITY REPORTS/SPECIAL PRESENTATIONS & COMMITTEE REPORTS:

A. Activity Reports:

1. Public Works/Code Enforcement/Animal Control Departments Activity Report: Rob Williams, Public Works Director/Scott Davis Public Works Supervisor.

B. Special Presentations/Reports:
1) None.

8. PUBLIC HEARING(s):

A. Public Hearing for: 2022 Community Development Block Grant Application; Approval of The Economic Development Business Assistance and Microenterprise Guidelines; and Closeout of 20-CDBG-CV1-0055 Grant.
• Staff Report
• Public Hearing
• Adopt Resolution (Discussion/Action).

9. OLD BUSINESS:

A. Consider Extending Local Emergency Declared on March 24, 2020: (Discussion/Action).

B. Consider Extending Local Emergency Declared on May 27, 2021: (Discussion/Action).

10. NEW BUSINESS:

A. Presentation to Identify New Revenue Sources: City Manager/City Attorney (Discussion/Direction).

11. CORRESPONDENCE/ANNOUNCEMENTS/ CLOSING COMMENTS:
• Upcoming/Future Agenda Items to Consider.
• Correspondence/Announcements/Information/Closing Comments.

12. ADJOURNMENT:
1) In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office (559) 386-5766. Avenal Theater & Event Center, 233 East Kings Street Avenal, CA 93204.

Notification 48 hours prior to the meeting will enable the city to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.02.35.1044 AA Title II].
2) Materials related to an item on this Agenda submitted to the [Council/ Authority] after distribution of the agenda packet are available for public inspection in the [City Clerks] office at 919 Skyline Blvd., Avenal, CA 93204 during normal business hours.

I certify this Agenda of the City of Avenal City Council workshop is to be posted at the following locations: 1) City Council Chambers, Avenal Theater 233 E. Kings St.; 2) City Hall 919 Skyline Blvd.; 3) Avenal Lumber, 600 Skyline Blvd.; and 4) T&T Market, 801 Skyline Blvd. Avenal CA 93204 on, June 6, 2022.
/s/ Maria Ortiz
Maria Ortiz, City Clerk
June 9, 2022 Pg. 2

CIUDAD DE AVENAL
"Capital Mundial® del Pistacho"
REUNIÓN REGULAR DEL CONCEJO MUNICIPAL / AGENCIA
SUCESORA / PFA 9 DE JUNIO DE 2022; 5:15 P.M.

AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA A TRAVÉS DE ZOOM VIDEO/WEB CONFERENCING:

Enlace web: bit.ly/AvenalCouncil o utilizar https://us02web.zoom.us/j/87243440488 O llamando al +1 669 900 6833 y usando el ID de reunión 872 4344 0488 para unirte.

Sesión de estudio: Ninguna
ÚLTIMA ORDENANZA: 2022-03 CIUDAD ÚLTIMA RESOLUCIÓN: 2022-3 4 (SA) ÚLTIMA RESOLUCIÓN: 2021-04 PFA ÚLTIMA RESOLUCIÓN: 2021-05 AGENDA

1. LLAMADA AL ORDEN Y JURAMENTO DE LEALTAD:

2. PASE DE LISTA: Concejales: Louis Gravelle, Ricardo Verdugo, Pablo Hernández, Alcalde Interino Alejandro Ramírez; Alcalde Álvaro Preciado.

SECRETARIO DE LA CIUDAD:

Sección 54952.3 del Código de Gobierno: Los miembros del Concejo Municipal / Agencia Sucesora tienen derecho a recibir un total de $ 300.00 por mes debido a ser elegidos para el Concejo Municipal. No reciben ninguna otra compensación por sentarse como miembros de la Agencia Sucesora.

3. SESIÓN CERRADA: (Ciudad/Agencia Sucesora):

Es la intención de este órgano rector reunirse en sesión privada para revisar su posición e instruir a sus representantes designados:

Cualquier persona puede dirigirse directamente al Consejo / Agencia en este momento sobre temas de interés relacionados con la sesión privada.

A. LITIGIO PENDIENTE (Código de Gobierno § 54956.9).

Conferencia con asesor legal – LITIGIO ANTICIPADO (Código de Gobierno § 54956.9(d)).

Exposición significativa a litigios (Código de Gobierno § 54956.9 (d) (2)).

El número de casos potenciales es: 1
B. PERSONAL (Código de Gobierno § 54957(b)).

Este órgano rector tiene la intención de reunirse en sesión privada para:

1. Oiga Complaints o Charges Against a Public Employee.

2. Considere Public Employee Performance Evaloración para la Posición de:
• Administrador de la ciudad

4. COMENTARIOS PÚBLICOS / ANUNCIOS Y APARICIONES NO PROGRAMADAS:

Cualquier persona puede dirigirse directamente al Consejo / Agencia en este momento sobre cualquier punto en la agenda o sobre cualquier otro tema de interés para el público que esté dentro de la jurisdicción de la materia del Concejo Municipal / Agencia Sucesora. La ley estatal prohíbe a cualquier miembro del Consejo / Agencia comentar o actuar sobre asuntos que no están en la agenda. Se permiten tres (3) minutos por persona.

5. CALENDARIO DE CONSENTIMIENTO :

Todos los elementos enumerados en el calendario de consentimiento son rutinarios y se promulgan mediante una moción:
(Acción).

A. Considere la aprobación de las actas de la Ciudad de Avenal / Agencia Sucesora para el 26 de mayo de 2022.

B. Considere la aprobación de solicitudes de viaje fuera del estado para la Exposición de la Asociación de Agua Rural de California y el Seminario Triestatal.

June 9, 2022 Pg. 3

6. ALCALDE Y CONCEJAL / AGENCIA SUCESORA / PUNTOS A
CONSIDERAR:

A. Considere las fechas para las audiencias presupuestarias del año fiscal 2022-2023: (Discusión / Acción).

7. INFORMES DE ACTIVIDADES/PRESENTACIONES ESPECIALES E INFORMES DE COMITÉS:

A. Informes de actividad:

1. Informe de actividades de los Departamentos de Obras Públicas/Aplicación de Códigos/Control de Animales: Rob Williams, Director de Obras Públicas/Scott Davis Supervisor de Obras Públicas.

B. Presentaciones/Informes Especiales:
1) Ninguno.

8. AUDIENCIA(S) PÚBLICA(S):

A. Audiencia pública para: Solicitud de subvención en bloque para el desarrollo comunitario de 2022; Aprobación delas Directrices para la Asistencia Empresarial al Desarrollo Económico y la Microempresa; y Closeout of 20-CDBG-CV1-0055 Grant. • Informe del personal
• Audiencia Pública
• Adoptar resolución (discusión/acción).

9. NEGOCIO ANTIGUO:

A. Considere extender la emergencia local declarada el 24 de marzo de 2020: (Discusión / Acción).

B. Considere extender la emergencia local declarada el 27 de mayo de 2021: (Discusión / Acción).

10. NUEVOS NEGOCIOS:

A. Presentación para identificar nuevas fuentes de ingresos: Administrador de la ciudad / Abogado de la ciudad (discusión / dirección).

11. CORRESPONDENCIA/ANUNCIOS/COMENTARIOS FINALES:
• Próximos/Futuros puntos del orden del día a considerar. • Correspondencia/Anuncios/Información/ Comentarios finales.

12. APLAZAMIENTO:
1) De conformidad con la Ley de Estadounidenses con Discapacidad, si necesita asistencia especial para participar en esta reunión, comuníquese con la Oficina del Secretario de la Ciudad (559) 386-5766. Avenal Theater & Event Center, 233 East Kings Street Avenal, CA 93204. La notificación 48 horas antes de la reunión permitirá a la ciudad hacer arreglos razonables para garantizar la accesibilidad a esta reunión [28 CFR 35.02.35.1044 AA Título II]. 2) Los materiales relacionados con un punto de esta Agenda presentados al [Consejo / Autoridad] después de la distribución del paquete de la agenda están disponibles para inspección pública en la oficina [De los Secretarios de la Ciudad] en 919 Skyline Blvd., Avenal, CA 93204 durante los negocios normales horas.

Certifico que este taller de la Agenda del Concejo Municipal de la Ciudad de Avenal se publicará en los siguientes lugares: 1) Cámaras del Concejo Municipal, Teatro Avenal 233 E. Calle reyes; 2) Ayuntamiento 919 Skyline Blvd.; 3) Avenal Lumber, 600 Skyline Blvd.; y 4) T&T Market, 801 Skyline Blvd. Avenal CA 93204 el 6 de junio de 2022. /s/ María Ortiz
María Ortiz, Secretaria municipal
June 9, 2022 Pg. 4

CITY OF AVENAL
“Pistachio Capital of the World®”

REGULAR CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING
MAY 26, 2022; 5:15 P.M.

AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA VIA ZOOM VIDEO/WEB CONFERENCING:

Web Link: bit.ly/AvenalCouncil or use https://us02web.zoom.us/j/87243440488 Or by calling +1 669 900 6833 and use meeting ID 872 4344 0488 to join.

MINUTES
CALL TO ORDER & PLEDGE OF ALLEGIANCE: by Mayor Preciado at 5:21 p.m.

ROLL CALL: Councilmembers: Louis Gravelle, Pablo Hernandez, Luis Gravelle, and joined meeting via zoom Ricardo Verdugo, Mayor Pro Tem Alejandro Ramirez.

ABSENT: None.

STAFF: Lopez, Ortiz, Bermudez, Davis, Lara-Nieto, Price.

LEGAL COUNCEL: Moses Diaz.

CITY CLERK:

Captain Tapia introduced Officer Gonzalez as a new Police Officer for the Avenal Police Department (APD) and is doing great. Also, he is local and will be on his on within 12-weeks. Officer Gonzalez is happy to be working for APD.

The Council welcomed Officer Gonzalez to the Avenal Family.

The City Council went into Closed Session at 5:23 p.m.

CLOSED SESSION: (City/Successor Agency):

A. PENDING LITIGATION (Government Code § 54956.9).

Conference with legal counsel – ANTICIPATED LITIGATION (Government Code § 54956.9(d)).

Significant exposure to litigation (Government Code § 54956.9(d)(2)).

Number of potential cases is: 1.

Mayor Preciado re-opened City Council meeting at 6:19 p.m. with nothing to report out of Closed Session.

PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPERANCES ITEMS:

Nelda Balderaz stated that the Avenal Police Department (APD) needs to invest in Mental Health for this community with mental illness, because those individuals place their trust in APD. And instead, they end up in jail cells instead of a hospital. She would like to request and ask that the Police Department please take their time and investigate these situations trusting people to consider their medical attention first before jail and patients need to trust in our professionals for justice to them CONSENT CALENDAR:

All items listed under the consent calendar are routine and enacted by one motion: (Action).

A. Consider City of Avenal/Successor Agency’s Approval of Minutes for May 12, 2022.

Council Member/Successor Agency Member Gravelle made a motion to approve Consent Calendar as presented, seconded by Council Member/Successor Agency Member Hernandez, and carried.

AGENDA ITEM NO. 5. – A.

June 9, 2022 Pg. 5
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Roll Call Vote:

AYES: Gravelle, Hernandez, Ramirez, Verdugo, Preciado.

NOES: None.

ABSENT: None.

ABSTAIN: None.

MAYOR & COUNCIL MEMBER/ SUCCESSOR AGENCY/ ITEMS FOR CONSIDERATION:

A. Status Report on Chief of Police Recruitment Process: Griselda Price, Director of Administrative Services & Antony V. López, City Manager
Mr. Lopez reported that he will be brief because there are other presentations coming up. Staff continues to gather input from the community regarding the Police Chief recruitment process we've been pushing out the survey the City Council was able to see it last meeting had about 25to 30 responses. Also, individual different kind of survey form our Police Department and received good feedback. Staff has Town Hall meeting tomorrow and inviting the community to come out. His been pushing out the flyer pushing out the survey as much as possible. He went to Rotary, Veterans Hall during open hours with the seniors during and Annual Vaccination Clinic. He handed flyers to everyone and received some feedback. Staff has been compiling data and yesterday Staff had a meeting with Avenal Police Department Officers and productive meeting and tomorrow Staff will have another meeting with another half of the Police Department. Then taking the next steps in June and identifying people with first round of interviews. Also, invited everyone to tomorrow's Town Hall meeting at Avenal Theater & Event Center at 6:15 p.m.

Staff will translate meeting if needed.

ACTIVITY REPORTS/SPECIAL PRESENTATIONS & COMMITTEE REPORTS:

Mr. Lopez asked to move up Community & Economic Development Activity Report & Special Presentations/Reports: Properties Zoned for Commercial and Industrial Uses - CrisCom and Kao Nou Yang, Community & Economic Development Director.

The Council was in consensus to move up items.

A. Activity Reports:

1. Community & Economic Development Activity Report: Kao Nou Yang, Community & Economic Development Director.

Kao Nou Yang, Community & Economic Development Director reported the following: 1) Processing Zoning Land Use Applications, Land Division Applications and Current Planning; 2) Site Plan Reviews Zoning Permits –Site Plan Review No., 22-02 and 22-03; 3) Tentative Tract Map No. 21-01 Finalizing the IS/MND and preparing a Notice of Intent to Adopted the Environmental Document; 4) Long Range Planning: Zoning, Subdivision and Building Ordinance; 5) Building Division continues Building and Permit Applications- implemented an electronic application submission for Building Permits, Land Use and Zoning Permits and Business License. The Application Link is Located on the City Website on the Home Page under the BUTTON APPLY FOR PERMIT ONLINE. Also, have a QR code for the Online portal. If any applicant community member resident has any questions, we are happy to help answer and show you how to submit online. From January 2022 to April 2022, we had over 120 electronic submissions of Building permits. Process is slow but it is working and progressing very well; 6) Staffing- Department is working on a staff report to add an in-house building inspector to the personnel classification. Hopeful that the position will be added into the next fiscal year as well as a possible position for a permit technician to help facilitate the building division of the department. This is informational for Council and the public to start the interest for those new possible recruitment coming in the next fiscal year 22/23. Still working on recruiting for a Community Development Assistant to help with the Permitting and the Building Systems. Recruitment will close on the first week of June. Hoping to start interviews on Second week of June and then position Start day the first week of July; 7) Economic Development: Properties Zoned for Commercial and Industrial Uses – City Staff has been given direction to look into options that will entice development on the many commercial and industrial properties that are vacant and under utilize. The Economic Team CrisCom and City Staff are reviewing these options with the City Attorney and City Manager. These options will be researched and presented to the Council with potential recommendations from City staff and then staff will rely on Council for further direction on those recommendations and /or options Grants; 8) Avenal Safe Route to School ATP Cycle 4 – The City’s consultant has submitted the package to Caltrans for review and their okay in regard to the plans and specs. We are awaiting their review; 9) Avenal Kids Park – The City will Finalized Bid Package for construction with O’Dell. All preliminary sketches and drawing have been reviewed and tentatively approve by City Staff.

The draft Construction Bid package has been submitted to the city for review. The city has conducted O’Dell to move forward with project and a Final Bid Package will be coming soon; 10) Utilities, Mortgage and Rental Assistance Program workshop with Self Help Dates Scheduled at the Avenal Technology Center from 5-7PM: June 15, 2022 – July 20, 2022 - August 17, 2022 - September 21, 2022 - PM to 7:00 PM.

Rene Missakian, CrisCom & Chuck Jelloian CEO reported that about a month ago and they talked about going and doing postcards and she has passed out postcards prior to your closed session. Also, gave a stack to Kao for her to have at the city. They attended Innovation Commerce Serving Communities (ICSE) went really well and able to meet with a lot of different retailers like McDonald's, Wendy's Yum and inspire brands and you know Raising Cane's Chicken Fingers and every possible restaurant or store. Also, some of the stores we are not quite big enough for a party city. We are going to put Avenal on the map and had these post cards and pictures obtained by Antony Lopez, City Manager and they are great pictures. She June 9, 2022 Pg. 6
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knows a couple council members commented on the pictures and part of these pictures to we have used for an online presence. She knows when we were here last time Jason Siegen Executive Vice President Chief Operating Officer has trying to get rid of any derogatory pictures or any pictures that are not pretty about Avenal so when these developers and restaurants are looking at City of Avenal, they see how great it is. They received 540,000.

2. IT Department Activity Report: Humberto Bermudez, IT Manager.

Humberto Bermudez, IT Manager reported the following: 1) Internet Access; 2) Phone System; 3) Emails; 4) Serve; And 5) assisted - Old Timer’s Day, Police Department and Kings County District Attorney’s Office for their screening of California’s Forgotten Children at the Avenal Theater & Event Center, Continues to work with KCAG to allow regular remote viewing and participation of their monthly Technical Advisory Committee and Transportation Policy Committee and KCAG Commission meetings, Scout House for printing and daily operations for the Community Activities Supervisor, Reviews documents provided by Paymentus’s technical support team to begin integration of their online customer payment system for OpenGov & continues to provide tech support across all facilities.

3. Police Department Activity Report: David Tapia,Police Captain (I).

David Tapia,Police Captain (I) reported the following: 1) 4/1/22, arrest for driving while under the influence of prescribed medications; 2) 4/9/22, APD Officers arrested a male VC 10851, vehicle theft; 3) 4/9/22, APD Officers arrested a male juvenile in the area of Second Avenue and Kings Street for several violations, including VC 2800.2 (a), evading a peace officer, PC 148(a)(1), resisting arrest, VC 20002(a), hit and run traffic collision; 4) 4/15/22, Officer Voyles conducted a traffic stop in the area of Avenal Cutoff and Plymouth Avenue. A pursuit ensued and the male driver was later taken into custody for Driving Under the Influence (DUI); 5) 4/16/22, Officer Mendoza arrested a known gang member; 6) 4/18/22, APD Officers assisted the California Highway Patrol (CHP) with a call for service in the area of Highway 33 and Utica.

During the course of the investigation, an AR-15 rifle was located and the female who was the victim in the case was fine; Coalinga PD is the investigating agency since it originated in their jurisdiction; 7) 4/22/22, Officer Hernandez arrested a male in the area of W. San Joaquin Street and N. “A” Avenue for driving under the influence; 8) 4/23/2022, a male was arrested at Shell Gas Station for VC 10851, vehicle theft; 9) 04/24/22, PC664/PC 187 A male was the attended target, but no one was injured; the investigation is ongoing; 10) Community Oriented Policing - On 04/14/2022, Kings County District Attorney Investigator Trejo and Investigative Assistant Pfarr came to town and hid rocks for a scavenger hunt in town. The prices for the event were gift cards from the Gallery and Circle K.

On 04/14/2022, Kings County District Attorney Investigator Keith Fagundes came to the PD and placed windmills out in front for the child abuse prevention month; and 11) 12 Month Statistical Report.

PUBLIC HEARING(s):

A. None
OLD BUSINESS:

A. Consider Extending Local Emergency Declared on March 24, 2020:

Mr. Lopez reported that the On March 24, 2020, the Avenal City Council adopted Resolution No. 2020-14 declaring a Local Emergency due to the existence or threatened existence of a local emergency: COVID 19 pandemic. The declaration is required to be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists.

On October 28, 2021, the Avenal City Council adopted Resolution No. 2021-48 to satisfy AB 361 to continue Teleconferenced Meetings. AB 361 provides that, if the state of emergency remains active for more than 30 days, a local agency must make the following findings by majority vote every 30 days to continue using the bill’s exemption to the Brown Act teleconferencing rules:
• The legislative body has reconsidered the circumstances of the emergency; and • Either of the following circumstances exist: The state of emergency continues to directly impact the ability of members to meet safely in person, or State or local officials continue to impose or recommend social distancing measures.

Staff is recommending the City Council consider the following action by motion:

Approve and support the ongoing local emergency Resolution, and specifically, move to renew the emergency Resolution by sixty (60) days, unless a Councilmember or member of the public request that the Council convene to consider the ongoing emergency Resolution, at which time a special meeting would be scheduled. Additionally, that the Council find that a state of emergency continues to directly impact the ability of members to meet safely in person, and that State and local officials continue to impose or recommend social distancing measures.

Mayor Pro Tem Ramirez motioned to approve as recommended, seconded by Councilman Verdugo, and carried.

Roll Call Vote:

AYES: Verdugo, Ramirez, Gravelle, Hernandez, Preciado.

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NOES: None.

ABSENT: None.

ABSTAIN: None.

B. Consider Extending Local Emergency Declared on May 27, 2021:

Mr. Lopez reported that on May 27, 2021, the Avenal City Council adopted Resolution No. 2021-23 declaring a Local Emergency due to the existence or threatened existence of a local emergency: Severe Water Shortage. The declaration is required to be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists. Staff is recommending the City Council consider the following action by motion:

Mayor Pro Tem Ramirez motioned to approve as recommended, seconded by Councilman Verdugo, and carried.

Roll Call Vote:

AYES: Verdugo, Ramirez, Gravelle, Hernandez, Preciado.

NOES: None.

ABSENT: None.

ABSTAIN: None.

C. Consider Establishing Two Summer Internship Positions within City Hall (Discussion/Action).

Mr. Lopez reported that brought this up at the last council meeting and it was tabled at that time. Staff is waiting for news on the potential grant. Staff did call earlier today, but no response. He understands there is concerns regarding funding and it is an investment for our community. This would give us some assistance at City Hall by assisting on projects like scanning, social media and learn how government functions. The Council could consider approving the position just not funding it and/or funding position. He spoke to one student that's reached out and their schools could pay for internship.

Councilman Verdugo motion to approve one position contingent to funding and lack of the second motion dies.

Mayor Pro Tem Ramirez made a motion to approve both positions fund one and other position is contingent on funding.

After a brief discussion, the following action was taken.

RESOLUTION 2022-33: ESTABLISHMENT OF TWO SUMMER INTERNSHIP EMPLOYMENT POSITION WITHIN CITY HALL. Mayor Pro Tem Ramirez motioned to approve, seconded by Councilman Gravelle, and carried.

Roll Call Vote:

AYES: Ramirez, Gravelle, Hernandez, Preciado.

NOES: Verdugo.

ABSENT: None.

ABSTAIN: None.

NEW BUSINESS:

A. Consider Construction Bids for 18'' Water Transmission Pipeline Replacement Project:

Scott Davis, Public Works Supervisor reported that the bids for the 18’’Water transmission line were opened on May 18, 2022 @ 2:00 p.m., at Avenal City Hall. the project will be from Interstate 5 to Tank #3 site (approx.3.17 miles of pipeline. The City Engineer, Brian Skaggs, estimated cost of the project in the amount of $8,200,000. The 18’’Water transmission line project will be funded by State Water Resources Control Board (Prop 1 Funding ) The project is scheduled to commence as soon as all the Documents are signed, and Contractor gives city staff a scheduled and starting date .

Along with this memo are the bid proposals as from the contractors. The bid results are as follows:

1. Specialty Construction Inc. $6,419,602.00

2. Sukut Construction, LLC $7,612,093.00

3. Nicholas Construction Inc. $7,622,400.00

4. Mountain Cascade, Inc. $7,782,661.00
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5. West Valley Construction Co. Inc. $7,998,321.00

6. Brough Construction Inc. $8,344,908.00

7. Floyd Johnson Construction $8,821,328.00

8. HPS Mechanical, Inc. $8,948,659.00

9. Clark Bros, Inc. $9,889,900.00
Staff recommends that by Resolution, authorize the City Manager: 1) to enter into an agreement with Specialty Construction Inc. for the installation 18’’ Water Transmission Line Project for a cost not to exceed $6,419,602.00; and 2) authorize the City Manager to request awarded funding from the State Water Resource Control Board (SWRCB) for the 18’’ Water Transmission Line Project. After a brief discussion, the following action was taken. All construction expenses will be reimbursable from the Prop 1 grant by the State Water Resources Control Board Funding (SWRCB). City Staff is inquiring on a bridge loan to cover contractor expenses while the city seeks reimbursement from the State. It is likely that interest costs will not be covered by the grant.

After a brief, discussion the following action was taken.

RESOLUTION 2022-34: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH SPECALITY, INC. FOR 18” WATER TRANSMISSION PIPELINE REPLACMENT PROJECT. Councilman Gravelle made a motion to approve, seconded by Councilman Hernandez, and carried.

Roll Call Vote:

AYES: Gravelle, Hernandez, Verdugo, Preciado, Ramirez,
NOES: None.

ABSENT: None.

ABSTAIN: None.

Mayor opened Public Time at 8:37 p.m.

Susan Sinclair stated that has a complaint about the Avenal Police Officers (APD) regarding calls for services. She has called numerous times and there no response form APD. She lives with a 70-year-old lady and her son really abusive, and she calls 911 and no responses. If in order for the APD to come, do she need to get hurt.

CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS:

Councilman Gravelle thanked Anna for removing mask form mannequins.

Councilman Verdugo reported the following: 1) showers for homeless at Veterans Hall or obtain grant; 2) Splash pad for the park.

Mr. Lopez did mention that in the works.

Mayor Pro Tem Ramirez reported the following: 1) Study Session for Norms Procedures.

Antony Lopez, City Manager reported the following: 1) Free Spring Cleaning this weekend 7AM -2PM at Avenal Landfill and tarp your loads.

Mayor Preciado reported the following: 1) celebrating Memorial Day at Coaling Cemetery & attended various meetings. The Council went into Closed Session at 8:37 p.m. Mayor Preciado re-opened meeting at 9:16 p.m. with nothing to report.

ADJOURNMENT:

There being no further business the City Council meeting was adjourned at 9:16 p.m.

Respectfully submitted,
Maria Ortiz, City Clerk
June 9, 2022 Pg. 9
City of Avenal
919 Skyline Blvd
Avenal, CA 93204
Phone (559) 386-5766
Fax: (559) 386-0629
1 TO: The Honorable Mayor and City Council members
From: Antony V. Lopez, City Manager
Prepared by: Ronald Brumley, Utilities Supervisor
Date: May 24, 2022
RE: Out of State Travel to The California Rural Water
Association Expo Lake Tahoe, Nevada
Information:

As has been done every year, two employees from public works and two from utilities would like to attend two out of state water/wastewater conferences (operators rotate annually). The California Rural Water Association Expo, held in Lake Tahoe, Nevada in April 2023 and the 37th Annual Tri-State Seminar which will be held in Las Vegas, Nevada August 8-12, 2022.

These conferences will enable us to attend a variety of sessions that are directly applicable to our work and will allow us to network with a variety of experts and colleagues from the tri state area.

Many of the presentations are tailored to the water and wastewater profession which will allow us to gain knowledge and understanding about how we can improve our processes and water quality. We will also earn valuable contact hours to keep our certifications current.

The presentations are facilitated by both industry experts and water and wastewater colleagues who have faced similar challenges and are familiar with the industry. Getting the information in a conference format will greatly reduce time and costs that would normally incur in researching the topics.

With our current water quality issues, I feel this would be beneficial. We would be able to get more information on the current technologies available and firsthand experiences from other operators experiencing similar problems.

Here is an estimated cost breakdown of what each conference would cost:

California Rural Water Association EXPO:

Registration- $425 for members per person (estimate from 2022) Hotel- $105 per night for 4 nights per person (estimate from 2022) Per Diem- $218 for 5 days
Travel- $200/fuel for all. 2 cars, $50 per person (estimate) Total- $1113, (estimate) per person
Anticipated 2022/23 budget in 15.15100-661 is $3,000, Public works 14.14100/661 $6,000.00 June 9, 2022 Pg. 10
AGENDA ITEM NO. 5. B
City of Avenal
919 Skyline Blvd
Avenal, CA 93204
Phone (559) 386-5766
Fax: (559) 386-0629
2 Tri-State Seminar
Registration- $95 for members per person (estimate from 2021) Hotel- $395 for 4 nights
Per Diem- $218 for 5 days
Travel- $200/fuel for all. 2 cars, $50 per person (estimate) Total- $758 (Estimate) per person
Anticipated 2022/23 budget in 14.14000-661 is $2,500.00. Public works anticipated budget for 2021/22 is $6,000.

Recommendation:

By motion approve the out of state travel requests for both the California Rural Water Association Expo, held in Lake Tahoe, Nevada in April 2023, and the 37th Annual Tri-State Seminar which will be held in Las Vegas, Nevada August 8-12, 2022.

June 9, 2022 Pg. 11
AGENDA ITEM NO. 5. B
City of Avenal
TO: Honorable Mayor & City Council
FROM: Antony V. Lopez, City Manager
PREPARED BY: Rob Williams, Public Works Director
DATE: June 3, 2022
RE: Public Works Monthly Report May 2022
INFORMATION:
7300 CODE ENFORCEMENT:

Code Enforcement continues property and weed abatements. Staff is giving verbal warnings for water waste and will be giving citations as needed. They are also working on illegal venders that have come into town.

SEE ATTACHED REPORT.
8100 PARKS & LANDSCAPE:

Staff continues to maintain Rice Park, landscaped areas on Skyline, Neighborhood Park, Skate Park, Sport Complex, the Ken Brown Public Safety Center and Elliott Park. Staff has made repairs and replaced the slide at the Neighborhood Park and it is now open. The Skate Park is open but there is still a graffiti problem. We are continuing to keep two (2) restrooms open at Rice Park. 9000 ANIMAL CONTROL DEPARTMENT:

Staff continues to maintain the Animal Shelter with animals rescued weekly. Staff continues to work with Corcoran and Animal Rescue. Staff was successful with the latest grant and the shelter was awarded $11,500.00 for another spay and neuter program, it should be received in July.

SEE ATTACHED REPORT.
13000 STREETS:

Staff maintains city streets, signs, flags, and banners. Staff continues working with the City Engineer on more street projects in town. We will continue to patch and crack seal as time allows. The street sweeper is repaired and back in service. Staff is working with Mid Valley on a schedule for sweeping. 14100 WATER DISTRIBUTION:

Staff continues to work with the City Engineer for the 18” water transmission replacement. The bid opening was May 18th and the low bid was $6,419,602.00 from Specialty Construction, Inc. Staff is working on the final paper work for SWRCB before awarding the project on July 1, 22022. Staff continues to maintain and repair the distribution system.
15000 WASTEWATER COLLECTIONS:

Staff continues to report monthly to Regional Water Quality Control Board regarding overflows. We continue to work with the City Engineer for the replacement of a section of sewer line along Highway 33.

There were five (5) calls for sewer plugs, one (1) on the City side and four (4) on Customer side. Staff is continuing the enzyme treatment for grease.
18000 VEHICLES, EQUIPMENT & BUILDING MAINTENANCE:

Staff continues to maintain city-owned property, vehicles, and equipment. Staff continues monthly/quarterly reporting to SJVAPCD.

AGENDA ITEM NO. 7. A. – 1)
June 9, 2022 Pg. 12
Monthly Report
May 2022
Vehicle Abatements
Total of Vehicles Tagged (private property) 00
City of Avenal Abatements 00
Voluntary Abetments 00
Pending 00
Property Abetments
Mailed Abetments 17
Courtesy Verbal Abetments 23
Courtesy Door Hangers 21
Abetments Completed 57
Pending 04
Miscellaneous Complaints
Illegal Business/Expired License 02
Stop Work/No Permit 01
Illegal Occupancy 02
Illegal Venders 04
Complaints Received 04
*Phone 02
*Walk In 00
Miscellaneous Inspections 51
Miscellaneous Meetings 03
Recycling Control 04
Graffiti Control 12
Water Waste Control (verbal and/or citations) 15
Weed Abatement (properties posted for cleanup) 00
Weed Abatement (completed) 00
Illegal Yard Sales/No Permits 03
Notes: Graffiti still a problem we are doing our best to stay on it. Have begun verbal warnings for water waste if it’s the 1st contact with customer. As it gets hotter, and more water being used or wasted will move to zero warning. Illegal vendors are starting to come into town, especially on the weekends but we are staying on top of it.

June 9, 2022 Pg. 13

CITY OF AVENAL

ANIMAL CONTROL ACTIVITY REPORT
MAY 2022
TO: Rob Williams, Public Works Director
FROM: Luis E. Gonzales, Animal Control Department
DATE: June 2, 2022
Animal Control Activity Report
Dogs Detained 30
Returned to Owner 08
Adopted 00
Died in Shelter 01
Euthanized 02
Stolen from Shelter 0
Escaped from Shelter 0
Remaining in Shelter 07
Dog Bite(s) 2
Citations 1
Complaints 00
Door Hangers 07
Cats Detained 37
Euthanized 00
Rescued 37
Redeemed 00
Adopted 00
Dogs Rescued 13
Roosters/Chickens/Owls/Turtles, etc. 02
Deceased Animals Received
Dogs 05
Cats 16
Other Animals Deceased 00
Dogs Redeemed from APRIL THAT WERE LEFT 02
Dogs Euthanized from APRIL THAT WERE LEFT 01
Dogs Rescued from MARCH THAT WERE LEFT 01
June 9, 2022 Pg. 14

CITY OF CORCORAN

ANIMAL CONTROL ACTIVITY REPORT
MAY 2022
TO: City of Corcoran, Animal Control Department
FROM: Luis E. Gonzales, Animal Control Department
DATE: June 2, 2022
Animal Control Activity Report
Dogs Detained 42
Returned to Owner 02
Adopted 00
Died in Shelter 00
Euthanized 05
Stolen from Shelter 0
Escaped from Shelter 0
Remaining in Shelter 20
Dog Bite(s) 3
Citations 0
Cats Detained 24
Rescued 24
Euthanized/Feral 00
Returned to Owner 00
Adopted 00
Roosters/Chickens/Rabbits/Ducks, etc. 00
Deceased Animals Received
Dogs 04
Cats 30
Other Animals Deceased 00
DOGS RESCUED FROM MAY 2022 19
DOGS RESCUED LEFT FROM APRIL 2022 06
DOGS ADOPTED LEFT FROM APRIL 2022 02
DOGS EUTHANIZED LEFT FROM APRIL 2022 04
June 9, 2022 Pg. 15
1 TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: ANTONY LOPEZ, CITY MANAGER
PREPARED BY: KAO NOU YANG, DIRECTOR OF COMMUNITY AND ECONOMIC

DEVELOPMENT
DATE: JUNE 2, 2022
SUBJECT: PUBLIC HEARING TO DISCUSS SUBMITTAL OF A 2022

COMMUNITY DEVELOPMENT BLOCK GRANT APPLICATION,
CLOSEOUT OF 20-CDBG-CV1-0055 GRANT, AND APPROVAL

OF THE ECONOMIC DEVELOPMENT BUSINESS ASSISTANCE
AND MICROENTERPRISE GUIDELINES.

BACKGROUND
2022 CDBG NOFA
CDBG Program regulations require that the City conduct a public hearing on all CDBGrelated matters to provide for and encourage citizen participation, particularly by lowand moderate-income persons who reside in areas in which CDBG funds are used.

Therefore, when the public hearing is opened, the public will be invited to comment on the City’s proposed resubmittal of a 2022 CDBG Grant application, CDBG Program Income, and to make their comments known on the proposed activities.

A public notice was published in the May 20,2022, issue of the Hanford Sentinel notifying the public of this public hearing.

HCD released a NOFA announcing the availability of CDBG Program funds in April 2022. The City is preparing to apply and submit an application for Economic Development and Planning & Technical Assistance.

Eligible activities available in the 2022 NOFA must benefit low- and moderate-income Californians and include: Housing Assistance Programs (Single-Family Homeownership Assistance, and Single-Family Housing Rehabilitation); Public Service programs, Planning Studies, Economic Development Business Assistance and Microenterprise activities. The City may apply for a maximum of $1,500,000 for a maximum of three activities.

Closeout of 20-CDBG-CV1-00055
The City was awarded $87,639 in CDBG-CV1 funds in May 2021 in response to the pandemic to aid City of Avenal residents affect by Covid-19 in the form of subsistence payments for utility payments. Permission to incur cost and begin accepting applications was received on December 10, 2020. The program provided income eligible households with up to $1,000 in assistance to cover past due and/or currently due utility expenses for up to 3 consecutive months as grants with no repayment June 9, 2022 Pg. 16
AGENDA ITEM NO. 8. A
2 obligation.

Applications Received 169
Households Assisted 79
Applications Denied 90
Households Assisted had Incomes as follows:

Very-low income 45
Low income 27
Moderate income 7
Total 79
Household Demographics:

White 2
Asian 1
Multi-Race 1
Hispanic 72
Unknown 3
Total 79
Female Head of Household 37
Senior Citizens 10
Disabled 0
Budget Total Expenses Disencumbered Funds
Total Admin: $14,899 $14,899 $0
Total Implementation: $72,740 $72,740 $0
The grant expired on May 4, 2022, upon approval the City will submit the final closeout documents to HCD, completing all obligations under the grant. There will be no disencumbering of funds since all funds under this grant were expended.

Economic Development Business Assistance and Microenterprise Program Guidelines
To establish a Business Assistance and Microenterprise Loan/Grant Program for local small businesses within the City of Avenal. As a part of this program the City must establish program guidelines outlining the program, eligibility requirements, eligible uses, maximum assistance, and terms of the funding, as well as the approval process, and repayment requirements.

DISCUSSION
The City proposes to apply for CDBG funds for Economic Development and Planning and Technical Assistance. Economic Development funds will be utilized to provide local businesses with low-interest, no-interest, or forgivable loans and infrastructure in June 9, 2022 Pg. 17
3 support of businesses. Planning and Technical assistance funding will be utilized to develop the Environmental Justice Element of the City’s General Plan and to complete predevelopment work associated with a future Sewer/Water/Storm Drainage project.

Economic Development –Business Assistance & Microenterprises $ 750,000 Planning & Technical Assistance –
Environmental Justice Element for the City’s General Plan $ 125,000 Planning & Technical Assistance –
Predevelopment work for the City’s Sewer/Water/Strom Drain $ 125,000 $1,000,000
When the Public Hearing is opened, citizens are encouraged to ask questions and/or comment on the proposed activities/applications, closeout of the 20-CDBG-CV1-00055 grant, Business Assistance/Microenterprises Guidelines or any aspect of the CDBG Program. Citizens are also invited to submit written comments to the City or to review information on the City’s CDBG Program at Avenal Theater, 233 E. Kings Street, Avenal, CA 93204. Write or contact Maria “Angie” Ortiz, City Clerk, at the same address.

RECOMMENDED ACTION

1. Open the public hearing to accept comments on the City’s proposed submittal of an application to apply for the 2022 State Community Development Block Grant (CDBG) Notice of Funding Availability (NOFA), and to solicit citizen input.

2. Approve Resolution 2022-____ approving the submittal of the 2022 applications.

3. Approve the 20-CDBG-CV1-00055 grant closed out report and authorize its submittal to the CA Department of Housing and Community Development, Community Development Block Grant Program.

4. Approve Resolution 2022-____ approving the Economic Development, Business Assistance and Microenterprises Program guidelines.

FINANCIAL IMPACT
The cost for preparation of the CDBG applications by Self-Help Enterprises is $4,500.00.
35 36
June 9, 2022 Pg. 18
City of Avenal
Microenterprise Financial Assistance
Program Guidelines

FUNDED BY A GRANT FROM THE

CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Adopted COA:

Approved HCD:

Revision No.:

June 9, 2022 Pg. 19
Attachment A

TABLE OF CONTENTS

1. INTRODUCTION..................................................................................................................................1

2. MICROENTERPRISE PROGRAM OVERVIEW.........................................................................1

1. ProgramAdministrator..................................................................................................1

2. Program Service Area ...................................................................................................1

3. Source of Grant Funds....................................................................................................... 1

4. Meeting CDBG Microenterprise Definition................................................................. 2

5. Types of Micro-enterprise Businesses ....................................................................2

6. Required MicroenterpriseTechnical Assistance........................................................... 2

7. Meeting CDBG Income Eligibility Requirement .........................................................3

8. Use of CDBG Funds................................................................................................................. 3

9. Ineligible Use ofCDBG Funds...........................................................................................4

10. Other CDBG Requirements..........................................................................................4

11. Required Grant Review by Department Staff...............................................................5

3. PROGRAM OPERATIONS AND GRANT PROCESSING................................................................. 5

1. Program Marketing and Outreach................................................................................5

2. Fair Lending Compliance .............................................................................................6

3. Grant Application Processing.......................................................................................6

4. Review and Approval of Grant Request.......................................................................6

5. Grant Applicant Confidentiality..............................................................................6

6. Dispute Resolution/ Appeals Procedure .......................................................................7

7. No Conflict of Interest Allowed..........................................................................................7

8. Exceptions / Special Circumstances............................................................................. 7

4. GRANT REQUIREMENTS .................................................................................................................. 8

1. Grant Fees...........................................................................................................................8

2. Collateral and Security Requirements .........................................................................8

3. Personal Financial Analysis .........................................................................................8

4. General Credit Requirements.......................................................................................8

5. Management and Capacity Requirements .................................................................... 8

6. Requirement for Third Party Cost Verification ............................................................ 9

7. Requirement forTechnical Assistance.......................................................................... 9

8. Requirement forGrant Disbursement ........................................................................... 9

5. PROGRAM OVERSIGHT BY GRANTOR.......................................................................................... 9 Oversight of Program Administrator.................................................................................. 9 ATTACHMENT A:

ATTACHMENT B:

ATTACHMENT C:

ATTACHMENT D:

ATTACHMENT E:

ACRONYMS AND DEFINITIONS

INCOME ELIGIBILITY CHART SAMPLE

GRANT APPLICATION FORM SAMPLE

GRANT PROPOSAL

SAMPLE GRANT AGREEMENT
June 9, 2022 Pg. 20
1 CITY OF AVENAL

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

MICROENTERPRISE FINANCIAL ASSISTANCE PROGRAM GUIDELINES

1.0 INTRODUCTION
The City of Avenal hereafter called "Grantor" has established a microenterprise assistance grant program, hereafter called "the Program". The Program is designed to stimulate economic growth and create businesses and jobs that will improve the living conditions of residents in the community. The Program provides affordable financing to eligible businesses to start up or expand. The Program is useful for small start-up businesses as the underwriting standards and grant terms are flexible and can be tailored to the needs of the business. In addition, funds are available for technical assistance and capacity building of eligible businesses. These Program guidelines have been formally adopted by the Grantor and approved by the Department.

2.0 MICROENTERPRISE PROGRAM OVERVIEW

2.1 PROGRAM ADMINISTRATOR
The Grantor will secure the services of a qualified program administrator here after called "the Administrator" who has experience in originating microenterprise business assistance grants and isfamiliar with CDBG requirements. The Administrator's detailed scope ofservices will be negotiated and included in a formal agreement for services executed between the Grantor and Administrator. In general, the Administrator will market the Program, accept, and process applications, underwrite and recommend approval of grants, ensure proper grant closing and disbursement of funds, maintain grant files and fiscal records and support the Grantor's staff in administration of state grants and program income used to fund this program. The Administrator will follow and ensure compliance with these guidelines.

2.2 PROGRAM SERVICE AREA
Financing under this Program is available to all eligible businesses located in the Grantor's jurisdiction. These CDBG funds may not be used in urban areas that receive CDBG funds annually from the federal Department of Housing and Urban Development (HUD) entitlement program.

2.3 SOURCE OF GRANT FUNDS
The Program is capitalized with CDBG funds provided by HUD to the State of California Department of Housing and Community Development, hereafter called "the Department". CDBG funds are federal funds and as such have a number of federal requirements that must be met, as described below. These CDBG funds come to the Grantor from two sources: 1) from state grant awards that are administered under a state grant contract; and 2) from grant repayments made by existing CDBG grants (called program income funds). Program income funds are administered locally by the Grantor under an adopted program income reuse plan approved by the Department.

2.4 MEETING CDBG MICROENTERPRISEDEFINITION
Grant applicants for this Program must meet the CDBG definition of a microenterprise business.

The CDBG definition is a business having five (5) or fewer employees, including the owner(s).

All employees, part time and full time, on the business payroll at the time of grant application will be counted. The term "employee" includes all owners of the business on the payroll, even if June 9, 2022 Pg. 21
2 the owner's "salary draws" are not done on a regular basis. The Administrator will require the business to provide third party records documenting the current number of employees on the payroll, including owners of the business.

2.5 TYPES OF MICROENTERPRISE BUSINESSES
An applicant may be an existing microenterprise business that needs funds to stay in business or expand. Existing micro business applicants include private business concerns, corporations, partnerships, and sole proprietorships that are legal, properly licensed and operating. Non- profits are not microenterprises.

Applicants can also be individuals who wish to start a business but have not taken all the proper steps to set their business up. A condition of funding for these persons will be to have the business development process completed, such that they can be recognized and operate as a legal business.

2.6 REQUIRED MICROENTERPRISE TECHNICAL ASSISTANCE
For all applicants under this program, the Grantor will require attendance at one or more technical assistance classes given by the Avenal Microenterprise Development Program, local Small Business Development Center (SBDC) or other local business development agency approved by the Grantor. Each applicant must have a letter of recommendation from the local business development agency that shows the applicant has completed or updated a proper business plan, has proper management capacity in place and has proper financial capacity in place to become or continue to be a successful business operator. The local business development agency will confirm that the applicant for this Program is at a point where CDBG financial assistance will support and assist the business toward future success.

It is anticipated that most of the applicants for this program will be referred by local business development agencies after completion of proper business development workshops and one- onone business counseling. Regardless of a microenterprise applicant's status, a start-up or existing business wanting to expand or an existing business struggling to survive, the proper business development workshops are needed to ensure the financial assistance provided gives the applicant the best chance to succeed. The Administrator will review each applicant individually in conjunction with the local microenterprise technical assistance staff at the local business development agency and process grant requests based on the compliance with these guidelines and the applicant's ability to use the grant funds for business expansion, retention, or start-up activities.

2.7 MEETING CDBG INCOME ELIGIBILITY REQUIREMENT
Under federal regulations, use of CDBG funds for assistance to microenterprise businesses must go toward meeting the national objective of low-income benefit. Furthermore, the Department requires that CDBG economic development funds for microenterprise only be used for businesses that qualify as a microenterprise as described above AND when the business owners meet HUD criteria as an income qualified low-moderate income (LMI) household or if the owner is not LMI, the LMI requirement can be meet by the creation/retention of LMI jobs.

Microenterprise income eligibility must be documented prior to any approval of financial assistance. The owners of the business being reviewed for funding must have a household income at or below current published HUD income limits for the county, adjusted for household size. At initial grant application stage, the business owners will complete the Program's June 9, 2022 Pg. 22
3 application and income self-certification form (Attachment C). When the owner is income eligible this eliminates the need to track job creation or retention numbers. Furthermore, there is a 3-year presumption of LMI status to allow for continued assistance. When certifying LMI status, only the owner’s income needs to be documented, not that of any employees. For owners qualifying under LMI job creation/retention, jobs must be documented with the activity is completed, typically 3-5 years.

The Grantor will use the current State Income Determination Manual for Federal Programs (Manual) to verify the micro business owner's income eligibility. The Manual is based on determination of "household income," as calculated in accordance with the regulations at 24 CFR 5.611 (Part 5). Each applicant must provide proper third-party documentation that confirms the family's current size and income level. This is compared to the current HUD published rate for eighty percent (80%) of median income adjusted for family size, to determine if the person meets HUD's definition of low-moderate income. See Attachment B for current HUD published limits for the County. The chart will be updated annually with new HUD published limits obtained from: https://www.hcd.ca.gov/grants-funding/income-limits/stateand-federal-income-limits/docs/2021-cdbg-income-limits.pdf The income limits published at the time of grant approval will apply when determining income eligibility. All persons in the residence are considered household members for purposes of income eligibility. Income eligibility for a microenterprise business is good for three (3) years from date of certification.

2.8 USE OF CDBG FUNDS
Funds under this Program are typically provided to eligible microenterprise businesses as small grants. Program grants are normally up to $35,000 on a one-time basis. See Sections 3.0,

4.0 and 5.0 for description of grant processing and grant requirements.

Funds under this program are restricted to certain eligible costs. The Avenal Financial Assistance Grant Program will be used primarily for funding business marketing and advertising costs. Requests for the use of grant funds for other CDBG eligible purposes will be considered on a case-by-case basis. Examples of other eligible costs may include 1) financial management and financial services (e.g., installation of a bookkeeping system such as QuickBooks); 2) a cash register for inventory control; and 3) payment of operating licenses, permits or fees. The Administrator will review the scope of work proposed by the business applicant and the proposed use of CDBG funds to verify that they are necessary for success of the business, reasonable in amount, and conform to the eligible use of CDBG funds under this Grant program not to exceed $35,000.

2.9 INELIGIBLE USE OF CDBG FUNDS
Funds under this Program will not pay for reimbursement of expenses incurred prior to grant approval. Program funds will not be used to pay off personal debt of owners not associated with the business. Grant funds cannot be shifted from one approved type of cost to another, (e.g., from FF&E to working capital) without resubmitting the grant for Grantor’s approval. Funds cannot be used to support other businesses the borrower may have a financial interest in.

Nonprofits are not eligible for assistance.

2.10 OTHER CDBG REQUIREMENTS
June 9, 2022 Pg. 23
4 There are a number of other federal laws and state requirements that are triggered by use of CDBG funding. The Grantor and Administrator will take the lead and ensure compliance with these other CDBG regulations. Any impacts of these federal regulations on a proposed project being funded will be explained at the time of grant application screening so the borrower knows and understands how the project will be impacted by these CDBG federal regulations.

Prior to award or approval of funds, federal environmental reviews are required by HUD for each business funded with CDBG monies (24 CFR 58). The environmental review must comply with HUD's regulations regarding the National Environmental Policy Act (NEPA). The Grantor is required to complete and certify the proper NEPA review along with any State environmental review under California's Environmental Quality Act (CEQA). The level of environmental review is based on the type of project proposed and activities to be completed.

Applicant will be informed of any additional time required for grant processing due to the NEPA review. No costs will be charged to the borrower for the NEPA Compliance with Davis Bacon and related Acts is required when CDBG funding is used to pay for construction costs. This will add additional costs to projects that require CDBG funds to pay for construction. In addition, state prevailing wage may be triggered when CDBG funding is used. Grant processing staff will work with businesses to ensure that funded business projects are in compliance with the state and federal prevailing wage laws. Applicants will be informed of any additional time or costs, or administrative work required due to the prevailing wage regulations. Any additional costs resulting from this regulation will be incorporated into the business grant.

Acquisition and Relocation laws may be triggered when using CDBG funds (24 CFR 570.606).

Acquisition laws, both federal and state, must be followed when CDBG funds are used to assist in the purchase of real property. In the same way, federal and state relocation laws apply whenever there may be displacement of a person or business because of the use of CDBG funding. Grant processing staff will work with grant applicants to ensure the business is in compliance with any state or federal acquisition/relocation laws triggered by the project.

Applicants will be informed of any additional time or costs, or administrative work required due to acquisition or relocation regulations.

All businesses who wish to receive funds under this Program will be required to obtain a DATA UNIVERSAL NUMBER SYSTEM (DUNS) number. The DUNS number is a unique nine-digit identification number provided by Dun & Bradstreet (D&B) that can be obtained for free online. A copy of the web site page with the confirmation of a D&B assigned DUNS number will be placed in the grant file and used in reports to the Department.

The Administrator will check the federal debarred status of each business and borrower(s) prior to funding. A copy of the web site search will be printed out and will be placed in the grant file to confirm the business is not on the federal debarred contractors list.

HUD also requires that the Department and the Grantor collect certain income and demographic data from the business and any new hires resulting from the investment of CDBG funds using Department approved forms. Applicants will be required to obtain all proper licenses and insurance to operate legally in the community.

2.11 REQUIRED GRANT REVIEW BY DEPARTMENT STAFF
June 9, 2022 Pg. 24
5 Department staff must review each business assistance grant for procedural compliance with federal regulations and these adopted program guidelines. Upon review and approval of a grant package submitted by the Grantor, a formal written approval letter will be issued by the Department.

3.0 PROGRAM OPERATIONS AND GRANT PROCESSING

3.1 PROGRAM MARKETING AND OUTREACH
Program marketing will be conducted by the Administrator with assistance from the Grantor.

Administrator staff will arrange local media coverage with ads in local papers. Marketing brochures will be distributed to local chambers of commerce, SBDC, local economic and business development, and business networking organizations. Presentations will be scheduled for these groups as well as real estate groups and local commercial banks and Grantors. A local U.S. SBA administered Small Business Development Center (SBDC) will be used as a referral agency.

3.2 FAIR LENDING COMPLIANCE
This program will be implemented in ways consistent with the Grantor's commitment to state and federal fair lending laws. No person or business shall be excluded from participation in, denied the benefit of, or be subjected to discrimination under any program or activity funded in whole or in part with CDBG program funds on the basis of his or her religion or religious affiliation, age, race, color, ancestry, national origin, sex, marital status, familial status (number or ages of children), physical or mental disability, sexual orientation, or other arbitrary cause.

3.3 GRANT APPLICATION PROCESS
Grant applications will be processed on a first come first served basis. See Attachment C for sample application form. The Administrator will accept grant applications and review them for initial eligibility. Applicants that do not meet basic requirements of the program will be returned with an explanation of requirements needing to be met. The Administrator will interview the business owners and review the application for funding and the Program guidelines and conduct a site visit if it is an existing business in operation.

The program grant approval checklist showing required documentation will be provided to the business so proper financial information is made available. Sample sources and uses forms and profit, and loss statements and pro forma spreadsheets can be made available so that the business or their financial representative can input the proper financial figures. Proper financial history of the business and future financial projections can be developed with the help of the local business development agency.

3.4 REVIEW AND APPROVAL OF GRANTREQUEST
A complete review of the grant request will take place at the Program Administrator level and at the Grantor level for each grant prior to funding. The Program Administrator will be responsible for obtaining all application documentation and completing a grant write-up. The grant write-up will be forwarded to HCD for review and approval. When grant approval has been received from HCD, the Program Administrator will submit the application package and recommendation to Grantor staff for final written approval. Grantor staff may choose to request additional information and/or require contingencies prior to approval. If significant changes to terms and conditions are requested by the Grantor, the revised grant write-up will be June 9, 2022 Pg. 25
6 resubmitted to HCD staff before final approval and funding.

See Attachment D for a sample grant proposal and approval memo.

3.5 GRANT APPLICANT CONFIDENTIALITY
Persons serving as the Administrator and Grantor for this Program will not disclose any of the Borrower(s) personal confidential information as part of the grant approval process. All confidential information of businesses will only be disclosed to persons required to view the information as part of grant review and approval. All personal and business confidential information of grant applicants will be kept in a locked secured storage facility and not be available to persons outside of the program. If the Grantor or Administrator or Department gets a request for public records for a grant applicant, then only non-confidential information, as verified by legal counsel, will be provided.

3.6 DISPUTE RESOLUTION/ APPEALS PROCEDURE
Any person applying for a business assistance grant through the CDBG program has the right to appeal if their application is denied. The appeal must be made in writing to the Administrator and the Grantor. The Administrator and the Grantor will schedule a meeting for the appeal to be heard. If the application is denied a second time, the person may ask to have their appeal presented to the Grantor's governing body for a final decision.

The Administrator is responsible to the Grantor to assure that the Program is implemented in compliance with state and federal regulations. In addition, grants must be underwritten in accordance with proper program guidelines in a timely and responsible manner. This includes developing accurate and professional files, work write-ups and contract documents. The Administrator will ensure that each funded business is eligible, the project costs are eligible, and each grant is underwritten in compliance with these guidelines.

3.7 NO CONFLICT OF INTEREST ALLOWED
In accordance with Title 24, Section 570.611 of the code of Federal Regulations, no member of the governing body and no official, employee or agent of the local government, nor any other person who exercises policy or decision-making responsibilities (including members of the grant committee and officers, employees, and agents of the grant committee, the administrative agent, contractors and similar agencies) in connection with the planning and implementation of the CDBG program shall directly or indirectly be eligible for this program. Exceptions to this policy can be made only after public disclosure and formal approval by the governing body and authorized in writing by Grantor's legal counsel. In the event representatives from the financial community serving in an advisory capacity have a separate financial interest (excluding regular checking and savings accounts) in a grant applicant, such member will not participate in grant deliberations.

3.8 EXCEPTIONS/ SPECIAL CIRCUMSTANCES
Exceptions are defined as any action, which would depart from policy and procedures stated in the guidelines. For example, the Grantor can, on a case-by-case basis, accept a partially secured grant. The Grantor or Administrator may initiate consideration of an exceptional/special circumstance. A summary of the proposed exception will be prepared. This report shall contain a narrative, including s. fs recommended course of action and any written or verbal information supplied by the applicant. The Administrator /Grantor shall make a determination of the June 9, 2022 Pg. 26
7 exceptional/ special circumstances request at a regular or special meeting.

4.0 GRANT REQUIREMENTS

4.1 GRANT FEES
There are no fees associated with these grants.

4.2 COLLATERAL AND SECURITY REQUIREMENTS
Grants will not require collateral or security.

4.3 PERSONAL FINANCIALANALYSIS
The business owners must show that they have sufficient personal financial stability as to not cause undue financial strain on the business. To that end, a financial analysis or underwriting will be provided during the technical assistance part of the program and will be then summarized in the grant proposal write-up.

4.4 GENERAL CREDIT REQUIREMENTS
Credit worthiness of the applicant(s) will be reviewed as part of the personal financial analysis referred to above. Good credit will not be a requirement for a grant but will be factored into the stability of the applicant and business.

4.5 BUSINESS MANAGEMENT AND FINANCIAL CAPACITY REQUIREMENTS A Grant applicant will be reviewed for their ability to manage their proposed (startup) or existing business. As part of providing the initial technical assistance to applicants, the Program Administrator will evaluate and work to increase any management weaknesses of the business before grant funds are awarded.

The Grant Applicant should:
• Show ability to operate a business successfully.
• Show the business has enough borrowing ability or equity to operate, with the grant, on a sound financial basis.
• Show the proposed grant is of sound value and provides for the current and future needs of the business.
• Show that the past earning records and future prospects of the business indicate ability to repay existing, new or other fixed debt, if any, out of the profits. • Show financial capacity to cover combined business and personal financial obligations and sufficient cash flow to cover personal living expenses.

The business owner must show capacity for operating the business and managing future growth.

This can be done by showing past experience of the owner or using experienced hired staff or by attending microenterprise technical assistance classes. By completing the proper business training classes, the business owner will develop the skills and business plan and financial projects needed to document that the project is eligible for the Program.

4.6 REQUIREMENT FOR THIRD-PARTY COSTVERIFICATION
The Program Administrator must receive third-party cost estimates of the grant eligible costs being requested to confirm that the costs are eligible and reasonable. Typically, necessary June 9, 2022 Pg. 27
8 materials and costs of activities for future growth of the business will be determined during the evaluation and technical assistance part of the program.

4.7 REQUIREMENT FOR TECHNICALASSISTANCE
The Grantor may make small grants of up to $35,000 on a one-time basis to eligible existing micro businesses. The micro business must be participating in the Grantor’s technical assistance program and grant funds may be provided upon completion of technical assistance activities.

The grants are to be used to complement work started under the technical assistance activities provided by the Grantor and their agents. The Grantor's technical assistance activities focus primarily on development of business and marketing plans and financial management capacity building. As such, examples of complementing grant activities are paying for marketing costs such as business cards, logo/branding design and development, flyers and publications/ advertisements, web site enhancement or development. Other costs related to the business may also include 1) financial management and financial services (e.g., installation of an accounting system such as QuickBooks); 2) purchase of a cash register for inventory control; and 3) payment of operating licenses, permits or fees that may be required.

The Program Administrator will provide documentation that the grant funded activities will have a positive impact on the future profitability and sustainability of the company. This will be done through analysis of financial projections /preformats for the business that include the impact of the grant funded activities.

4.8 REQUIREMENT FOR GRANT DISBURSEMENT
Grant funds may be paid to the business for reimbursement of costs upon providing copies of receipts of eligible costs. Grant funds may be paid directly to third party vendors. Grantees will be required to sign a grant agreement that stipulates eligible costs, payment process and reporting on any future job creation activities resulting from grant funds.

5.0 PROGRAM OVERSIGHT BY

GRANTOR OVERSIGHT OF PROGRAM

ADMINISTRATOR
The Grantor's staff will serve as the primary contact with the Department CDBG Program representative. Grantor's staff will be responsible for securing services of a qualified Administrator for implementation of this Program. The Administrator can be secured via a proper CDBG procurement or with a Subrecipient Agreement or Non-profit Development Organization Agreement.

The Administrator will follow these adopted program guidelines. The Grantor's staff will work directly with the Administrator and be kept informed of all marketing efforts and outreach. The Administrator will provide a monthly tracking sheet to the Grantor's staff that shows all applications received, technical assistance provided to each applicant and when applicants are ready for receiving grant funds or have dropped out of the program.

As per the agreement between the Grantor and Administrator, all required reports for the Program will be reviewed and approved by the Grantor's staff prior to any signatures. For June 9, 2022 Pg. 28
9 financial reporting, the Grantor's staff will ask for the Grantor's fiscal staff to review and approve each fiscal report. Grant servicing staff will complete all required quarterly and annual program income reports for review, approval signature and submittal by the Grantor to the Department CDBG Program representative.

Once a grant is able to be approved, the Grantor's staff will review the grant package and coordinate submittal to the Department for review and approval. When Department written approval is given, then the Grantor's staff will schedule a meeting for final grant approval.

The Grantor's staff will ensure all grant documents are properly reviewed by legal staff and meet CDBG requirements prior to signing by the borrower.

June 9, 2022 Pg. 29
10 ATTACHMENT A

ACRONYMS, ABBREVIATIONS, & DEFINITIONS
Administrator………………………………………………………………Local Program Operator CDBG……………………………………………………………………...Community Development Block Grant HCD /Department……………State: California Department of Housing and Community Development FF&E……………………………………………………………………………… Furniture, Fixtures, and Equipment UD…………………………………………Federal: U.S. Department of Housing and Urban Development Grantor…………………………………………………………………………………..Local Jurisdiction MDP........................................................................................................Microenterprise Development Program PI................................................................................ Program Income (income from existing CDBG grants) Program .......................................................................................................CDBG Microenterprise Grant Program RLA ..............................................................................PI Revolving Grant Account under CDBG Reuse Plan SBA ....................................................................................Federal: U.S. Small Business Administration SBDC ...............................................................................................Small Business Development Center TIG…………. Targeted Income Group (Department term equal to HUD low /moderate income)
June 9, 2022 Pg. 30
11 June 9, 2022 Pg. 31

ATTACHMENT B

INCOME ELIGIBILITY CHART
Income eligibility must be established prior to receiving any micro business assistance. The Program Administrator will use the most recent copy of the State's Federal Program Guide to Income Eligibility when doing verification of income for applicants to this program. This State income calculation will then be compared to the current income limits and based on family size; income eligibility will be certified. The Department term "Targeted Income Group (TIG)" is used interchangeably with the HUD term "low /moderate income".

Income eligibility status is good for three years from certification date. All income documentation must be in the participant's file and kept confidential.

INCOME ELIGIBILITY LIMITS BASED ON HOUSEHOLD SIZE
City of Avenal
2022 Income Limits Effective June 1, 2021*
Household Size 1 2 3 4 5 6 7 8
Maximum Annual
Income 39,050 44,600 50,200 55,750 60,250 64,700 69,150 73,600 *Income guidelines will be updated annually with the current HUD published limits obtained from https://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits/docs/2021-cdbgincome-limits.pdf The State Income Calculation and Determination Guide for Federal Programs may be obtained https://www.hcd.ca.gov/grants-funding/income-limits/income-calculation-and-determinationguide.shtml.

June 9, 2022 Pg. 32
(This section is voluntary.)
Part I: Confidential Job Applicant / Employee HUD Demographic Data Part II: Confidential Job Applicant / Employee Income Certification My total family size(Certification process may not be administered by business receiving CDBG funds.) consists of members, and the total gross annual income* for all adult members is $ .
*Gross annual income must include all sources of income (wages, child support, SSI, unemployment, pension, income from assets, etc., but does not include the income of live-in aids, per 24 CFR 5.403).

Job Applicant / Employee Signature: Date:

Applicant / Employee Name (print):

Job Applicant / Employee Physical Home Address: , (City) I certify that the information given on this form is true and accurate to the best of my knowledge. I am aware that there are penalties for willfully and knowingly giving false information on an application for Federal or State funds, which may include immediate repayment of all Federal or State funds received and/or prosecution under the law. I understand that the information on this form is subject to verification by state or federal personnel as part of compliancemonitoring.

ATTACHMENT C

Page 1 ends

Status: ☐ Job Applicant ☐ CurrentEmployee
Business Name:

Business Physical Address: , (City)
Ethnicity (Select One) ☐ Not Hispanic ☐ Hispanic
Race (Select One)
White ☐
Black/African American ☐
Asian ☐
American Indian/Alaskan Native ☐
Nat. Hawaiian/Other Pacific Isl. ☐
Am. Indian/Alaskan Nat. & White ☐
Asian & White ☐
Black/African American & White ☐
Am. Indian/Alaskan & Black/African ☐
Other Multi-Racial ☐
Business Assistance Project SELF-CERTIFICATION of Income for ☐ City of / ☐Town of / ☐ County of CDBG Funded Activity June 9, 2022 Pg. 33
June 9, 2022 Pg. 34
Program Operator Certification: I certify that Applicant / Employee demographic data provided is true and correct, to the best of my knowledge. I certify that, using the current HCD annual income publication compared to stated family size and gross income, the income level indicated above is true and correct. I certify that residency of the Applicant / Employee and the business address is true and correct per the requirements of 24 CFR 570.486(b) and/or (c) as applicable.

Page 2 ends

Project Information:

Business Name:

Job Applicant / Employee Name:

Public Benefit Type: ☐ Job Creation ☐ JobRetention
Project funded by: ☐ Grant #: - Or - ☐ PI FiscalYear:

Business and Job Applicant / Employee Location Verification:

Business Physical Address: ☐ In JurisdictionLimits
Job Applicant / Employee Physical Home Address: ☐ In JurisdictionLimits NOTE: Business must be located in Jurisdiction. Significant number of Job Applicants should reside in Jurisdiction (does not apply to retention).

Job Applicant / Employee Income Verification:

Effective Date of the Income Limit Chart being used:

Family is: ☐ 30% or less (Extremely Low Income)
☐31%-50% (Low Income)
☐51%- 80% (Moderate Income)
☐Over 80% of median income: NOT ELIGIBLE AS LOW /MOD JOB Program Operator must:
1) Must complete confidential demographic data on cert. form if applicant / employee leaves blank. 2) Must complete business project information and business & applicant / employee location verification.
3) Must complete the applicant/employee income verification by:

Print the current HCD Income limits from the HCD website (NOT HUD’s) and Circle the applicable family size and annual income on HCD limit printout and Include the copy of the circled printout with these certification forms.

Note: This completed certification, whether Job Applicant / Employee benefited (was hired) or not, must be maintained in the Confidential Project file for review at time of monitoring. Certification of Job Creation cannot be done prior to CDBG funding approval.

Program Operator Name (print) Job Title
CDBG Business Assistance Project Verification by
☐ City of / ☐Town of / ☐ County of for CDBG Funded Activity June 9, 2022 Pg. 35
Signature: Date:

June 9, 2022 Pg. 36

SAMPLE GRANT APPLICATION FORM
Avenal Microenterprise Financial Assistance Program

APPLICATION FOR FINANCIAL ASSISTANCE GRANT
Business Name: Duns#
Business Startup date: Number of Employees
Applicant(s) Name:

Business Address:

Contact Phone: Email:

Please indicate what you wish to use grant funds for:

Marketing Plan Development
Advertising/Marketing Campaign Implementation
Website Development/Improvement
Please indicate approximate amount to be used for each activity:

MarketingPlanConsultant: $
Advertising: $
Marketing Materials (Brochures/Catalogs): $
Website Development: $
Other $
Total: $
Please provide a short description of your goals for this plan:

Applicant Signature: Date:

June 9, 2022 Pg. 37

ATTACHMENT D
City of Avenal

MICROENTERPRISE FINANCIAL ASSISTANCE PROGRAM GRANT PROPOSAL CDBG Grant#-----
GAC REVIEW DATE:

APPLICANT/ OWNER(S):

NAME OFBUSINESS:

TYPE OF BUSINESS:

ADDRESS OF BUSINESS:

CDBG AMOUNT REQUESTED: $
CDBG MICROENTERPRISE PROJECT ELIGIBILITY:

Verification of Income Eligibility for Business Owner(s):

The Applicant and Business Owner is . (His/Her) family resides in ---CA.

Currently people live in the household. Persons with countable incomes are , has an annual income of $ . , has an annual income
of $ . has an annual income of $ .

Total adjusted Household Income is $ .

Income Assets for the family are as follows: Business Property and Equipment and checking and savings accounts, as shown in the income summary form.

Program operator obtained proper income verification information on the owner of this business and used the State HCD Federal Programs income determination method to analyze income sources and assets to get a total gross household income for the owner. The gross annual income of the household was determined to be $ . The maximum income for a household of in City/County, based on current HUD published limits, is $ . The adjusted gross income of the business owner's household is less than HUD limits published annually.

Verification of Business Employees:

The business employs worker(s). Payroll documents were obtained and are on file to show that these workers are in place. The business has owner(s). The number of employees plus owners’ totals . This number is less than five (5) which is the maximum workers plus owners a business can have and still qualify for micro eligibility status.

June 9, 2022 Pg. 38
DETAILED PROJECT SCOPE OF WORK (includes work with all funding):

SOURCES AND USES:

Activity Cost Client CDBG Total
0 0
0 0
0 Total Project Costs $0 $0 $0 0
Percentages 100% 100% 100%
CDBG FEDERAL OVERLAY REQUIREMENTS:

Environmental Review:

Based on the aggregate scope of work described above, the level of review required under the National Environmental Policy Act (NEPA) is: Categorically Excluded Subject to 58.5 statutes. The NEPA review has been submitted for approval by the state.

Acquisition and Relocation Review:

Based on the aggregate scope of work, there is no procurement of real property required. The scope of the project does not involve displacing any "persons" from the project site for completion of these activities.

Davis Bacon and Prevailing Wage Review:

Based on the use of CDBG funds in the scope of work, CDBG funds will not be used for construction and Davis Bacon will not be triggered.

June 9, 2022 Pg. 39

CDBG HUD PROGRAM ELIGIBILITY AND LOAN UNDERWRITING
(Based on Lender Adopted Guidelines and HUD Part 570)
Appropriate HUD Underwriting Analysis

1. Reasonableness of Project Costs - The costs for the project's scope of work have been verified using third party estimates. The costs are felt to be legitimate and reasonable. All project items in the scope of work are necessary to assist the business implement its marketing plans.

2. Commitment of Other Sources of Funds - County CDBG funding is the sole source of funding.

3. Non-Substitution of CDBG Funds for Private Funds - No private funding is available for this project because the business cannot afford additional debt.

4. Financial Feasibility of the Project - Based on the analysis in the following pages the business has been determined to be financially feasible. The micro business is currently breaking even and generating minimal cash; however, additional family income allows the family to service their debt and living expenses.

5. Return on Equity Investment - The planned marketing directly benefits the business. By injecting CDBG funds as a marketing grant, the owner will be able to advertise the business and attract additional customers. The calculation of ROI with and without CDBG funds shows that no undue enrichment will take place because of the use of these funds.

6. Pro Rata Fund Disbursement - CDBG grant funds will be disbursed on an as needed basis with purchase orders or invoices being paid directly to vendors or client will be reimbursed for costs paid directly by them after the approval date of the grant.

7. Meeting Other CDBG Federal Overlays- City is verifying compliance with other federal overlays by submitting a completed State CDBG Micro Loan Checklist.

SITE OWNERSHIP:

Business site is owned by the client.

BACKGROUND OF BUSINESS AND FUTURE PLANS:

Describe micro-TA services provided to date:
has been working with the
Microenterprise Development Program since . They have developed an effective business and marketing plan of which this marketing grant is a key component. Description of additional TA:

Please see the attached letter of recommendation from Superior California Economic Development, the operator of the Microenterprise Development Program.

June 9, 2022 Pg. 40
Business Description
(Short Description of the business. Can be cut and pasted from Business/Marketing Plan.) The Business History:
(Short story of the history of the business. Can be cut and pasted from Business/Marketing Plan.) Management/Experience
(Can be cut and pasted from Business/Marketing Plan.)
Credit History
Enter brief credit review report.

HISTORIC FINANCIAL SUMMARY:

Business Historic Income and Expenses
Business Name: 20-20-
2 yr.
average
Total Sales
Cost of Goods Sold
Gross Profit 0 0
Operating Expenses
Net Profit $ - $ -
Adjust for Depreciation
Cash Flow Before Principal Payment 0 0
Historical Personal CASH FLOW
20 20
Cash In
Wages
Interest Income
0 0
0 June 9, 2022 Pg. 41
Schedule C - business 1
Schedule C - Business 2
Schedule E - Rental Property
Other Income, SSI Non-Taxable
Total Cash In 0 0
Cash Out
Health Savings Account 0 0
Self-Employment Taxes & Other 0
Self-Employment Health Insurance 0 0
Home Mortgage Payment
Commercial Property (principal)
Commercial Property (principal)
Credit Card (Rule of thumb avg - 5% of Outstanding Balance) Total Cash Out 0 0
Net Personal Cash Flow available for Hying expertise 0 0 FUTURE FINANCIAL SUMMARY:

Business Income and Expense Projections
Projected increase in Sales %
20-20-
Total Sales
Cost of Goods Sold 0 0% 0 0%
Gross Profit 0 0
Operating Expenses 0 0% 0 0%
Net Profit $ - $ -
Adjust for Depreciation
Projected Net Cash Flow 0 0
PERSONAL FINANCIAL STATEMENT, YEAR TO DATE _
Real Estate (Primary
Residence)
Real Estate (Primary
Residence)
Commercial Property 1 Commercial Property 1
June 9, 2022 Pg. 42
Commercial Property 2 Commercial Property 2
Other Personal Assets Other Liabilities
Total Assets 0 Total Liabilities 0
Net Worth 0
STRENGTHS OF BUSINESS AND BORROWER:
• Strength 1.
• Strength 2.
• Strength 3.
• Strength 4.
• Strength 5.

WEAKNESSES OF BUSINESS AND BORROWER:
• Weakness 1
• Weakness 2
FINANCIAL ASSISTANCE CONDITIONS:

1. Participation in Microenterprise Development Program

2. Conditions for Disbursements: The Grantee will obtain at least two (2) cost estimates for each of the grant eligible costs being requested, in order to confirm that the costs are eligible and reasonable. Grant funds will be paid directly to third party vendors. Funds under this Program will not pay for reimbursement of expenses incurred prior to grant approval.

RECOMMENDATION:

Approval is recommended subject to the above terms and conditions.

OTHER CDBG APPROPRIATE DETERMINATIONS:

National Flood Insurance Program: This project is not located in an area that has been identified by the Director of the Federal Emergency Management Agency as an area having special flood hazards.

Conflict of Interest: Lender verified that there was no conflict of interest between the borrower or business owner and city or other program operators involved in loan.

Staff Recommendation:

Grant Approved-City of Avenal: _
Antony Lopez, City Manager
Date: _
Date: _
June 9, 2022 Pg. 43
June 9, 2022 Pg. 44

ATTACHMENT E
Avenal Microenterprise Financial Assistance Program

GRANT AGREEMENT
THIS AGREEMENT is made and entered into this day of _, 20_, by and between the City of Avenal, hereinafter referred to as "City" and hereinafter referred to as "Applicant."
The Applicant and the City certify and agree to the terms and conditions as set forth below:

1. The Applicant is the owner in good standing of a certain business named and located at in the City of Avenal, California, hereinafterreferred to as the "Business."

2. The Business is used for for-profit purposes and Applicant's proposed improvements to the Business fall within the Avenal Microenterprise Financial Assistance Program Guidelines.

The Business must meet all eligibility standards of said Guidelines.

3. All activities to be undertaken will be consistent with the City's CDBG Microenterprise Development Program (MDP) as administered by ________________ Economic Development and the Microenterprise Grant Proposal (MGP) as submitted to MDP.

4. Only the expenditures agreed to by the City and the applicant, as outlined in the formal written Microenterprise Grant Proposal, will be eligible for funding. Any changes to the project that are not approved by the City in writing will not be eligible for funding.

Expenditures by the Applicant that occur prior to the execution of this agreement will not be eligible for funding.

5. Disbursement of CDBG grant funds will be disbursed on an as needed basis with purchase orders or invoices being paid directly to vendors or client will be reimbursed for approved costs paid directly by them after the approval date of the grant.

6. The Applicant has thirty (30) days from the date that the City signs the Agreement to begin activities outlined in the MGP. If applicant has not started to implement stated activities within ninety (90) days, the City has the right to terminate the Agreement and utilize the reserved grant/loan funds for other applicants who are ready to proceed. Extensions, if warranted, may be granted at the sole discretion of the City.

June 9, 2022 Pg. 45

7. Applicant understands and agrees that the City, their officers, agents, sub-contractors and employees shall have no responsibility or liability of any failure or inadequacy of performance in regard to the agreed-upon activities. Applicant shall indemnify, release, defend and hold the City, their officers, agents, sub-contractors and employees harmless from all claims, losses, liabilities, damages, suits, actions or proceedings by any person including Business Owner(s), Applicant(s), its employees and agency from personal injury, death or property damage from any cause whatsoever in whole or in part arising out of this Agreement or the activities completed hereunder by this indemnification shall not include the sole negligence or willful misconduct of the City, their officers, agents, sub-contractors and employees.

8. This Agreement incorporates the following documents as fully a part of this Agreement as if herein repeated:

MDP Application
MDP Grant Application
MDP Grant Proposal
City of Avenal Microenterprise Financial Assistance Program Guidelines This Agreement shall inure and be binding upon the successors and assigns to the parties hereto.

Executed this day of , 20_
City of Avenal Business Name
Antony Lopez
City Manager
Business Owner/Applicant
June 9, 2022 Pg. 46

EXHIBIT E

AGREEMENT BETWEEN CITY OF AVENAL
AND

SUPERIOR CALIFORNIA ECONOMIC DEVELOPMENT
FOR A

MICROENTERPRISE TRAINING & TECHNICAL ASSISTANCE PROGRAM THIS AGREEMENT is entered into this day of by and between the City of Avenal (herein called the "Grantee") and Superior California Economic Development, Inc. (herein called the "Subrecipient").

WHEREAS, the Grantee has applied for and received funds from the State of California, Department of Housing and Community Development, State Community Development Block Grant Program ("the Department") originating from the United States Government under Title I of the Housing and Community Development Act of 1974, as amended (HCD Act), Public Law 93-383; and
WHEREAS the Grantee wishes to engage the Subrecipient to assist the Grantee in utilizing such funds.

NOW, THEREFORE, it is agreed between the parties hereto that.

SCOPE OF SERVICE
A. Activities
The Subrecipient will be responsible for administering CDBG Grant, Microenterprise Development Program, in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:

Program Delivery
Activity #1: Assessment
Determine TIG eligibility and assess readiness of TIG participants to enter a business development program.

Activity #2: Business Training & Technical Assistance
Provide business training and technical assistance for TIG participants through oneon-one counseling, classroom training and referral to outside resources.

Activity #3: Marketing Assistance
Assist TIG participants in developing a marketing strategy and preparing grant requests.

June 9, 2022 Pg. 47
Activity #4: Financing
Assist in preparing microloan package for SCED Business Development Loan Program where requested and appropriate.

General Administration
The Subrecipient will be responsible for the following General Administration services:

1. Draft General Program Guidelines and Financial Assistance Program Guidelines and have approved by CDBG.

2. Work with City and CDBG to clear General and Special Conditions.

3. Monitor grant expenditures and achievement of goals.

4. Oversee program implementation and activities.

5. Generate program section of Financial and Accomplishment Report, Economic Development Progress Report, and Grantee Performance Reports.

6. Report on progress to Grantee and governing body.

B. National Objectives
The Subrecipient certifies that the activity(ies) carried out under this Agreement will meet the National Objective of benefitting low- and moderate-income persons by providing microenterprise training and technical assistance to TIG-eligible individuals.

C. Levels of Accomplishment - Goals and Performance Measures The Subrecipient agrees to provide the following levels of program services:

Activity
Microenterprise Eligibility, Training
& Technical Assistance
Marketing Strategy & Financing
Jobs Created/Retained
D. Staffing
Number per Grant Period
30 TIG participants
10 grants
13 Jobs
Staff Member Activity Time
Committed
Special Projects Manager
Program administration,
eligibility, technical
assistance, outreach
50%
Training/Business Development
Specialist
Training, technical
assistance, outreach 25%
Administrative Staff Fiscal & administrative
oversight 5%
June 9, 2022 Pg. 48
E. Performance Monitoring
The Grantee will monitor the performance of the Subrecipient against goals and performance standards as stated above. Substandard performance as determined by the Grantee will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated.

II. TIME OF PERFORMANCE
Services of the Subrecipient shall start upon approval of this agreement and end on the 30th day of , 20. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Subrecipient remains in control of CDBG funds or other CDBG assets, including program income.

11. BUDGET
Line Item Amount
Salaries $100,000
Fringe 32,000
Office Space (Program only) 8,000
Utilities/Communications 2,000
Reproduction/Printing 500
Supplies and Materials 2,000
Mileage 1,600
Accounting/Audit 2,500
Microenterprise Marketing Financing 50,000
Other: Supportive Services, 11,025
Marketing, Insurance, Postage, Travel
Computer Expense, Outside Services,
Other Miscellaneous
TOTAL $ 209,625
Any indirect costs charged must be consistent with the conditions of Paragraph VIII (C)(2) of this Agreement. Any amendments to the budget must be approved in writing by both the Grantee and the Subrecipient.

IV. PAYMENT
It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed $209,625. Drawdowns for the payment of eligible expenses shall be made against the line-item budgets specified in Paragraph herein and in accordance with performance. Expenses for general administration shall also be paid against the line-item budgets specified in Paragraph Ill and in accordance with performance.

June 9, 2022 Pg. 49
V. NOTICES
Notices required by this Agreement shall be in writing and delivered via mail (postage prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic means. Any notice delivered or sent as afore said shall be effective on the date of delivery or sending. All notices and other written communications under this Agreement shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice.

Communication and details concerning this contract shall be directed to the following contract representatives:

Grantee
Antony Lopez, City Manager
900 Skyline Blvd.

Avenal, CA 9
(559)
Fax: (559)
VI. SPECIAL CONDITIONS
Subrecipient
Subrecipient will submit Microenterprise Program Guidelines and Microenterprise Financial Assistance Program Guidelines to HCD for review prior to implementation.

VII. GENERAL CONDITIONS
A. General Compliance
The Subrecipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the U.S. Housing and Urban Development regulations concerning Community Development Block Grants (CDBG)) including subpart K of these regulations, except that (1) the Subrecipient does not assume the recipient's environmental responsibilities described in 24 CFR 570.604 and (2) the Subrecipient does not assume the recipient's responsibility for initiating the review process under the provisions of 24 CFR Part 52. The Subrecipient also agrees to comply with all other applicable Federal, State and local laws, regulations, and policies governing the funds provided under this contract. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.

B. "Independent Contractor"
Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance, as the Subrecipient is an independent contractor.

June 9, 2022 Pg. 50
C. Hold Harmless
The Subrecipient shall hold harmless, defend and indemnify the Grantee from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the Subrecipient's performance or nonperformance of the services or subject matter called for in this Agreement.

D. Workers' Compensation
The Subrecipient shall provide Workers' Compensation Insurance coverage for all of its employees involved in the performance of this Agreement.

E. Insurance & Bonding
The Subrecipient shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage.

The Subrecipient shall comply with the bonding and insurance requirements of 24 CFR 84.31 and 84.48, Bonding and Insurance.

F. Grantee Recognition
The Subrecipient shall insure recognition of the role of the Grantee in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement.

G. Amendments
The Grantee or Subrecipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Subrecipient from its obligations under this Agreement.

The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Subrecipient.

H. Suspension or Termination
In accordance with 24 CFR 85.43, the Grantee may suspend or terminate this Agreement if the Subrecipient materially fails to comply with any terms of this Agreement, which include, but are not limited to, the following:

June 9, 2022 Pg. 51

1. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes, regulations, executive orders, and HUD guidelines, policies or directives as may become applicable at any time.

2. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement.

3. Ineffective or improper use of funds provided under this Agreement; or

4. Submission by the Subrecipient to the Grantee reports that are incorrect or incomplete in any material respect.

In accordance with 24 CFR 85.44, this Agreement may also be terminated for convenience by either the Grantee or the Subrecipient, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if in the case of a partial termination, the Grantee determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the Grantee may terminate the award in its entirety.

VIII. ADMINISTRATIVE REQUIREMENTS
A Financial Management

1. Accounting Standards
The Subrecipient agrees to comply with 24 CFR 84.21-28 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

2. Cost Principles
The Subrecipient shall administer its program in conformance with 0MB Circulars A-122, "Cost Principles for Non-Profit Organizations," or A-21, "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.

B. Documentation and Record Keeping

1. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:
a) Records providing a full description of each activity undertaken. b) Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program.

June 9, 2022 Pg. 52
c) Records required to determine the eligibility of activities. d) Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance. e) Records documenting compliance with the fair housing and equal opportunity components of the CDBG program.
f) Financial records as required by 24 CFR 570.502, and 24 CFR 84.21-28; and
g) other records necessary to document compliance with Subpart K of 24 CFR Part 570.

2. Retention
The Subrecipient shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of four (4) years. The retention period begins on the date of the submission of the Grantee's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time.

Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the four-year period, whichever occurs later.

3. Client Data
The Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request.

4. Disclosure
The Subrecipient understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the Grantee's or Subrecipient's responsibilities with respect to services provided under this contract, is prohibited unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.

5. Closeouts
The Subrecipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to making final payments, disposing of program assets, program income balances, and accounts receivable to the Grantee, and determining the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the Subrecipient has control over CDBG funds, including program income.

6. Audits &Inspections
June 9, 2022 Pg. 53
All Subrecipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning subrecipient audits and 0MB Circular A-133.

C. Reporting and Payment Procedures

1. Program Income
The Subrecipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under this contract. The use of program income by the Subrecipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Subrecipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unexpended program income shall be returned to the Grantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account is not program income and shall be remitted promptly to the Grantee.

2. Indirect Costs
If indirect costs are charged, the Subrecipient will develop an indirect cost allocation plan for determining the appropriate Subrecipient's share of administrative costs and shall submit such plan to the Grantee.

3. Payment Procedures
The Grantee will pay to the Subrecipient funds available under this Agreement based upon information submitted by the Subrecipient and consistent with any approved budget and Grantee policy concerning payments. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Subrecipient, and not to exceed actual cash requirements.

Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Subrecipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Subrecipient.

June 9, 2022 Pg. 54

4. Progress Reports
The Subrecipient shall submit regular Progress Reports to the Grantee in the form, content, and frequency as required by the Grantee.

D. Procurement

1. Compliance
The Subrecipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-- expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this Agreement.

2. O1\/1B Standards
Unless specified otherwise within this agreement, the Subrecipient shall procure all materials, property, or services in accordance with the requirements of 24 CFR 84.40-

48. 3. Travel
The Subrecipient shall maintain travel records and will document for Grantee review any travel outside Superior California Economic Development District boundaries with funds provided under this Agreement.

E. Use and Reversion of Assets
The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following:

1. The Subrecipient shall transfer to the Grantee any CDBG funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination.

2. Real property under the Subrecipient's control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of $25,000 shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5) years after expiration of this Agreement. If the Subrecipient fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for the prescribed period of time, the Subrecipient shall pay the Grantee an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such payment shall constitute program income to the Grantee. The Subrecipient may retain real property acquired or improved under this Agreement after the expiration of the five-year period.

June 9, 2022 Pg. 55

3. In all cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that fund received under this Agreement were used to acquire the equipment). Equipment not needed by the Subrecipient for activities under this Agreement shall be (a) transferred to the Grantee for the CDBG program or (b) retained after compensating the Grantee an amount equal to the current fair market value of the equipment less the percentage of non-CDBG funds used to acquire the equipment.

IX. RELOCATION, REAL PROPERTY ACQUISITION AND ONE-FOR-ONE HOUSING

REPLACEMENT
It is not anticipated that any relocation activities will occur under this agreement.

X. PERSONNEL & PARTICIPANT CONDITIONS
A. Civil Rights

1. Compliance
The Subrecipient agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086.

2. Nondiscrimination
The Subrecipient agrees to comply with the non-discrimination in employment and contracting opportunities laws, regulations, and executive orders referenced in 24 CFR 570.607, as revised by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the HCDA are still applicable.

4. Section 504
The Subrecipient agrees to comply with all Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the individuals with disabilities or handicaps in any Federally assisted program. The Grantee shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement.

B. Affirmative Action

1. Approved Plan
The Subrecipient agrees that it shall be committed to carry out pursuant to the Grantee's specifications an Affirmative Action Program in keeping with the June 9, 2022 Pg. 56
principles as provided in President's Executive Order 11246 of September 24, 1966.

2. Women- and Minority-Owned Businesses (W/MBE)
The Subrecipient will use its best efforts to afford small businesses, minority business enterprises, and women's business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the terms "small business" means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15
U.S.C. 632), and "minority and women's business enterprise" means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are AfroAmericans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, Asian-Americans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation.

3. Access to Records
The Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Grantee, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein.

4. Notifications
The Subrecipient will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker's representative of the Subrecipient's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

5. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action employer.

6. Subcontract Provisions
The Subrecipient will include the provisions of Paragraphs X.A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own subrecipients or subcontractors.

C. Employment Restrictions

1. Prohibited Activity
The Subrecipient is prohibited from using funds provided herein or personnel June 9, 2022 Pg. 57
employed in the administration of the program for: political activities; inherently religious activities; lobbying; political patronage; and nepotism activities.

2. Labor Standards
The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, State and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The Subrecipient agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The Subrecipient shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Grantee for review upon request.

The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by the Grantee pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph.
"Section 3" Clause
a) Compliance: Compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as implemented by the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this contract, shall be a condition of the Federal financial assistance provided under this contract and binding upon the Grantee, the Subrecipient and any of the Subrecipient's subrecipients and subcontractors. Failure to fulfill these requirements shall subject the Grantee, the Subrecipient and any of the Subrecipient’s subrecipients and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists that would prevent compliance with these requirements.

The Subrecipient further agrees to comply with these "Section 3" requirements and to include the following language in all subcontracts executed under this Agreement:
"The work to be performed under this Agreement is a project assisted under a program providing direct Federal financial assistance from HUD and is subject to the requirements of Section June 9, 2022 Pg. 58
3 of the Housing and Urban Development Act of 1968, as
amended (12 U.S.C. 1701). Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to low- and very low-income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for lowand very low-income persons residing in the metropolitan area in which the project is located."
The Subrecipient further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project are given to low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to low- and very low-income persons within the service area of the project or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs; and award contracts for work undertaken in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project to business concerns that provide economic opportunities for low- and very low- income persons residing within the metropolitan area in which the CDBG- funded project is located; where feasible, priority should be given to business concerns that provide economic opportunities to low- and very low-income residents within the service area or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs.

The Subrecipient certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements. b) Notifications: The Subrecipient agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker's representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training.
c) Subcontracts: The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the granter agency. The Subrecipient will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.

D. Conduct

1. Assignability
The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Grantee thereto; provided, however, that claims for money June 9, 2022 Pg. 59
due or to become due to the Subrecipient from the Grantee under this contract may be assigned to a bank, trust company, or other financial institution without such approval.

Notice of any such assignment or transfer shall be furnished promptly to the Grantee.

2. Subcontracts
a) Approvals: The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Grantee prior to the execution of such agreement. b) Monitoring: The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. c) Content: The Subrecipient shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. d) Selection Process: The Subrecipient shall undertake to ensure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with applicable procurement requirements. Executed copies of all subcontracts shall be forwarded to the Grantee along with documentation concerning the selection process.

3. Hatch Act
The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C.

4. Conflict of Interest
The Grantee and Subrecipient and their officers and employees shall not have a financial interest, or acquire any financial interest, direct or indirect, in any business, property or source of income which could be financially affected by or otherwise conflict in any manner or degree with the performance of services required under this agreement.

5. Lobbying
The Subrecipient hereby certifies that:
a) If Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;
June 9, 2022 Pg. 60
b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and
c) It will require that the language of paragraph (d) of this certification be included in the award documents for all sub awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans, and cooperative agreements) and that all Subrecipients shall certify and disclose accordingly:
d) Lobbying Certification
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

6. Copyright
If this contract results in any copyrightable material or inventions, the Grantee and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for governmental purposes.

7. Religious Activities
The Subrecipient agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 24 CFR 570.200U), such as worship, religious instruction, or proselytization.

XI. ENVIRONMENTAL CONDITIONS
A. Air and Water
The Subrecipient agrees to comply with the following requirements insofar as they apply to the performance of this Agreement:
• Clean Air Act, 42 U.S.C., 7401, et seq.
• Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder.

June 9, 2022 Pg. 61
• Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended.

B. Flood Disaster Protection
In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the Subrecipient shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation).

C. Lead-Based Paint
The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B.

Such regulations pertain to all CDBG-assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning and the advisability and availability of blood lead level screening for children under seven.

The notice should also point out that if lead-based paint is found on the property, abatement measures may be undertaken. The regulations further require that, depending on the amount of Federal funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be conducted.

D. Historic Preservation
The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, in so far as they apply to the performance of this agreement.

In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, state, or local historic property list.

XII. SEVERABILITY
If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby, and all other parts of this Agreement shall nevertheless be in full force and effect.

XIII. SECTION HEADINGS AND SUBHEADINGS
The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

XIV. WAIVER
June 9, 2022 Pg. 62
The Grantee's failure to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the Grantee to exercise or enforce any right or provision shall not constitute a waiver of such right or provision.

XV. ENTIRE AGREEMENT
This agreement constitutes the entire agreement between the Grantee and the Subrecipient for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the Grantee and the Subrecipient with respect to this Agreement.

IN WITNESS WHEREOF, the Parties have executed this contract as of the date first written above.

City of Avenal Superior California Economic Development By
Antony Lopez, City Manager
By _
Chief Executive Officer
June 9, 2022 Pg. 63
Department of Housing and Community Development
Revised 10/15/21 2022 CDBG NOFA
RESOLUTION NO.____________

A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE

EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2022 FUNDING YEAR OF THE STATE CDBG PROGRAM
BE IT RESOLVED by the City Council of the City of Avenal as follows:

SECTION 1:

The City Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $1,000,000 for the following CDBG activities, pursuant to the January 2022 CDBG NOFA:

Activity (i.e. Public Services, Housing
Rehabilitation)
Dollar Amount Being Requested for
the Activity
Economic Development $750,000
Planning and Technical Assistance $125,000
Planning and Technical Assistance $125,000
TOTAL $1,000,000
SECTION 2:

The City hereby approves the use of Program Income in an amount not to exceed $_0_ for the CDBG activities described in Section 1.

SECTION 3:

The City acknowledges compliance with all state and federal public participation requirements in the development of its application(s).

SECTION 4:

The City hereby authorizes and directs the City Manager, or designee*, to execute and deliver all applications and act on the City’s behalf in all matters pertaining to all such applications.

SECTION 5:

If an application is approved, the City Manager, or designee*, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement) and any and all subsequent amendments thereto with the State of California for the purposes of the grant.

June 9, 2022 Pg. 64
2022-35
Department of Housing and Community Development
Revised 10/15/21 2022 CDBG NOFA
SECTION 6:

If an application is approved, the City Manager, or designee, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Avenal held on May by the following vote:

AYES: _____ NOES: _____
ABSENT: _____ ABSTAIN: _____
__________________________________
Alvaro Preciado, Mayor
City Council

STATE OF CALIFORNIA
City of Avenal
I, Maria Ortiz, City Clerk of the City of Avenal, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said City Council on this __ day of June, 2022.
_______________________________________________
Maria Ortiz, City Clerk of the City Avenal, State of California By: _____________________________________
Maria Ortiz, City Clerk
June 9, 2022 Pg. 65
Department of Housing and Community Development
Revised 10/15/21 2022 CDBG NOFA
RESOLUTION NO. 2022-36

A RESOLUTION APPROVING THE ADOPTION OF THE CDBG BUSINESS

ASSISTANCE AND MICROENTERPRISE GUIDELINES
BE IT RESOLVED by the City Council of the City of Avenal as follows:

SECTION 1:

The City Council has reviewed and hereby approves the CDBG Business Assistance and Microenterprise Guidelines.

SECTION 2:

The City acknowledges compliance with all state and federal public participation requirements in the development of its guidelines.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Avenal held on June 06, 2022 by the following vote:.

AYES: _____ NOES: _____
ABSENT: _____ ABSTAIN: _____
__________________________________
Alvaro Preciado , Mayor
City Council

By: _____________________________________
Maria Ortiz, City Clerk
City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 9. A
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: June 9, 2022
RE: Consider Extending Local Emergency Declaration (COVID-19) INFORMATION:

On March 24, 2020, the Avenal City Council adopted Resolution No. 2020-14 declaring a Local Emergency due to the existence or threatened existence of a local emergency: COVID 19 pandemic. Although case numbers have dropped to the single digits in Avenal, not all restrictions have been lifted, and the finding below is still required to be made to allow Councilmembers to attend meetings virtually.

The declaration is required to be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists.

On October 28, 2021, the Avenal City Council adopted Resolution No. 2021-48 to satisfy AB 361 in order to continue Teleconferenced Meetings. AB 361 provides that, if the state of emergency remains active for more than 30 days, a local agency must make the following findings by majority vote every 30 days to continue using the bill’s exemption to the Brown Act teleconferencing rules
• The legislative body has reconsidered the circumstances of the emergency; and • Either of the following circumstances exist: The state of emergency continues to directly impact the ability of members to meet safely in person, or State or local officials continue to impose or recommend social distancing measures.

At this time, staff is recommending the City Council consider the following action by motion:

Additionally, that the Council find that a state of emergency continues to directly impact the ability of members to meet safely in person, and that State and local officials continue to impose or recommend social distancing measures.

RECOMMENDATION:

Discussion/Action.

FISCAL IMPACT:

None.

June 9, 2022 Pg. 68

City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 9. B
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: June 9, 2022
RE: Consider Extending Local Emergency Declaration (Water) INFORMATION:

On May 27, 2021, the Avenal City Council adopted Resolution No. 2021-23 declaring a Local Emergency due to the existence or threatened existence of a local emergency: Severe Water Shortage.

The declaration is required to be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists.

As of May 18, 2022, USBR has conditionally allocated 2,000 acre feet of water to the City of Avenal as Public Health & Safety use. On average in the last few years, the City has required 2,300 acre feet of water under Phase III drought emergency conditions. As the City continues growing and new houses being build, 2,000 acre feet of water may not be enough and additional water may be need.

By continuing the local emergency due to drought conditions, this action helps to show the Bureau that the City takes the drought emergency seriously and helps them accommodate the necessary Public Health & Safety water needs to the City.

Staff is recommending the City Council consider the following action by motion:

RECOMMENDATION:

Discussion/Action.

FISCAL IMPACT:

None.

June 9, 2022 Pg. 69
City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 10.

B
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: June 9, 2022
RE: Presentation to Identify New Revenue Sources
BACKGROUND:

As a continuation on staff’s and legal counsel’s presentation in August of 2021, staff is returning the topic of discussing the idea of supporting ordinances to place a ballot measure to the voters regarding a dedicated general tax on sales revenue for the City, and another for taxing the sale of cannabis.

While the City continues to manage with the funding that it has, general fund revenue growth has not kept pace with the increasing costs of providing services to a growing population and inflated prices. The City’s main sources of revenue are property taxes, sales taxes, DMV fees, and any building and services fees.

The City has the lowest per capita revenue in the County, has a little less than half the national average of police officers per capita for a City our size (18 full time positions to 34 national average), is amongst the lowest paying City employer in the County for most positions (and as such has difficulties retaining employees), and has infrastructure concerns for its buildings, park, roads, sidewalks and public facilities. There are new services that community members expect, that the City does not and cannot provide. The City is fiscally challenged.

INFORMATION:

Discussing with legal counsel, there is still a window of opportunity for the City to consider supporting a resolution and ordinance to place a local sales tax measure and/or cannabis sales tax measure on the November 2022 ballot.

Some general rules are that the ballot measures for sales tax must be conducted when a council seat is up for election. There can be exemptions of placing it on the ballot at a different time for a fiscal emergency with a 4/5 or unanimous decision. Council’s role is to support taking the decision to the voters, not necessarily approving the tax itself, but the process of having it on the ballot in November and agreeing to spend resources to prepare the ballot and reimburse the County for the having it on the ballot.

Voter Threshold:

All Local Government Taxes Fall in One of Three Categories. New local government taxes generally can be placed into one of three categories: (1) property taxes to finance debt, (2) general taxes, and (3) special taxes. Each of these categories has different rules regarding voter approval.

City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 10.

B
Simple Majority Approval Is Required for General Taxes. A general tax requires approval by a simple majority of voters. (A simple majority is 50 percent of voters plus one additional voter.) A general tax is a tax (1) levied by a general purpose government—city or county— and (2) expended, at the discretion of the local government’s governing body, on any programs or services. All non–property taxes which cities and counties are authorized to levy may be imposed as general taxes.

Two–Thirds of Voters Are Required to Approve Special Taxes. Special taxes require approval from two–thirds of local voters. A special tax is a tax that meets one of the following conditions:
▪ Special–Purpose District Tax. All taxes—other than property taxes for infrastructure bonds—levied by special districts, school districts, and community college districts are special taxes.
▪ Tax Dedicated to a Specific Purpose. A city or county tax dedicated to a specific purpose or specific purposes—including a tax for a specific purpose deposited to the agency’s general fund—is a special tax. All non–property taxes that cities and counties are authorized to levy may be raised as special taxes.
▪ Tax Levied on Property. All taxes levied on property other than the property tax— typically parcel taxes—are special taxes.

Staff would recommend focusing on a general tax that could be used for a multitude of City services, and would be more likely to be passed by the voters.

Currently sales tax in the City is at 7.25%. While the state takes a large chunk of any sales tax, there is a small room for the City to include a tax. Any tax must be be increments of 1/8 of a penny. When speaking of the tax, it would not be in percentages but in pennies to make it easier to understand. At this time Staff has not determined what would be a reasonable amount to request until given direction. Currently sales tax revenue from the previous three fiscal years has hovered between $309,000 to $352,000, from 2019 to present. Staff is working with County finance officials to better understand what the total percentage the City receives and what any increase could potentially yield.

In practice, the Council can place controls on the taxes, such as suspending it if not needed.

Council can agree in the resolution, that any tax will be phased in, for example over a year or two years. Ease the burden, and also allow the tax to be suspended all together if enough revenues are coming in and not needed. That can ease taxpayer anxiety, that the tax is not forever, and can be shut on and off as needed. Likewise, whatever amount of tax is determined, would be the threshold of either utilizing the full extent, or even half or less as determined by the Council.

City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 10.

B
Cannabis Sales Tax:

Discussions have gravitated towards a tax on dispensaries and not the community as a whole.

Examples of how other cities have adopted is a tax the vendors will have to pay, and in turn they can pass the tax down to the customers – similar to how like liquor stores function.

Staff understand that the topic of cannabis is controversial. The City at this time does not allow the sale of cannabis/dispensaries, or cultivation which are items that that would need to be addressed separately. Most arguments in favor of a cannabis tax and sale of cannabis are that it is already in the community, and regulating it would bring revenues as opposed to expense to patrol its use. There are impacts and costs to dealing with cannabis dealing, the City could generate revenues to help fund emergency response, and services to the entire community. For residents that oppose it, they would not be charged, it would be a charge to the dispensaries and any customers.

As stated, depending on the direction of Council, if a tax were put on the ballot and approved by the voters, Staff will still need to work out the zoning, fees, and other land use policies that need to be created.

The City’s legal counsel has more experience on this topic and can elaborate more on how other Central Valley cities have adopted similar ordinances on cannabis.

Timeline:

If the majority of Council is in favor of either a general sales tax, cannabis tax, or both, staff needs direction to work on the details of the financial information and arguments. Legal counsel would play a large part in drafting the ordinances and resolutions. While some cities hire consultants to work on the financial information, most cities in the Central Valley have been able to do the work in-house, and City Staff feels comfortable taking the challenge.

The deadline to approve a tax ordinance will be by the July 14, 2022 regular City Council meeting, with noticing by July 8. Afterwards, Staff will need to publish a synopsis of the ballot measure and ordinance, with all documentation submitted to the Kings County Elections Office by August 9, 2022. August 11, 2022, will be the legal deadline for the Council to approve Order of Election, followed by request for alphabetical letter measure designation, and arguments. The election date is November 11, 2022.

RECOMMENDATION:

Discussion/Direction.

1. Direct staff to prepare a resolution and ordinance for City Council consideration at the July 14, 2022 meeting to place a local sales tax measure and/or cannabis sales tax measure on the November 2022 ballot.

2. Provide staff direction on what should be included in the draft ordinance.

City Council/Successor Agency/Public Finance AuthorityJune 9, 2022

City Council/Successor Agency/Public Finance Authority
June 9, 2022