Agenda — City Council/Successor Agency/Public Finance Authority, October 24, 2024

CITY OF AVENAL
“Pistachio Capital of the World®”

REGULAR CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING
OCTOBER 24, 2024; 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.

Study Session: Rainforest Energy Presentation 4:15pm
LAST ORDINANCE: 2023-06 CITY LAST RESOLUTION: 2024-50
(SA) LAST RESOLUTION: 2024-03 PFA LAST RESOLUTION: 2024-02 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 $450.00 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. Conference with Labor Negotiator(s) (Government Code § 54957.6).

It is the intent of this governing body to meet in Closed Session to review its position and to instruct its designated representatives: Designated representatives: APOA
B. Conference with Real Property Negotiator(s) (Government Code § 54956.8).

It is the intent of this governing body to meet in Closed Session to confer with its real property negotiator(s) concerning the purchase, sale, exchange, or lease of real property by or for this agency as follows:

1. Property Description: APN: 040-320-009-000; & 040-320-014-000 Negotiator(s): City Manager/City Attorney.

Party with whom negotiating: CrisCom Company. Instructions to negotiator concerning: Terms of Payment.

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.

New APD Staff Presentation: Erika Martinez - Property and Evidence Officer; Karen Celis - Records Clerk; María Miranda - Police Officer.

Staff Promotions: Angie Ortiz – City Clerk/Community Development Coordinator; Ronald Brumley – Utilities Director; Humberto Bermudez – IT Director; Brian Arellano – Finance Manager; Karla Curiel — Deputy City Clerk

5. CONSENT CALENDAR:

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

A. Consider City of Avenal/Successor Agency’s Approval of Minutes for October 10, 2024.

B. Authorization to Approve and Sign the Side Letter Agreement #3 between the City of Avenal and the Avenal Police Officers’ Association (APOA) Regarding Pre-Discipline and Post-Discipline Appeal Process (Resolution 2024-51).

C. Waive Second Reading and Adopt the 2024 Comprehensive Zoning and Subdivision Ordinance Update (Resolution 2024-52; Ordinance 2024-02).

D. Consider Final Agreement between City of Avenal and Reef-Sunset Unified School District for the Installation and Operation of a Digital Marquee Sign at Skyline Park (Resolution 2024-53).

6. ACTIVITY REPORTS/SPECIAL PRESENTATIONS & COMMITTEE REPORTS:

A. Activity Reports:

1. Police Department Activity Report: Cecilio Velasco, Chief of Police.

2. Community Development Activity Report: Kelsey George, Contract City Planner, 4Creeks.

3. Economic Development & Grant Writing Report: Emily Engelsgaard, Grants Manager, the CrisCom Company.

October 24, 2024 Pg. 1

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

A. Consider Approving Funding Request for FY 2024/2025 (Resolution 2024-54) – City Manager (Discussion/Action)
B. Update regarding new Utility Billing software implementation – City Manager (Informational).

8. PUBLIC HEARING(s):

A. None.

9. OLD BUSINESS:

A. Consider Approving SRO Agreement with RSUSD (Resolution 2024-4X) (Discussion/Action).

10. NEW BUSINESS:

A. Consider Authorizing the City Manager to Sign an Engagement Agreement with Guaranteed Community Advisors (GCA) for Sustainable Biofuel Project Development in Avenal (Resolution 2024-5X) – City Manager (Discussion/Action)
B. Consider Amending the City of Avenal Purchasing Policy Regarding Purchasing and Reimbursement for Used Equipment or Online Marketplace Items (Resolution 2024-56) – City Manager (Discussion/Action).

11. CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS:

Any Council member may request an item be placed on a future agenda, provided that a simple majority also support adding said item. Discussion or action on any item not on the current agenda is strictly prohibited. Closing comments are intended for Council members to report attendance of any special events and pertinent information back to the public.
• 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, October 21, 2024.
__ /s/ Maria Ortiz
Maria Ortiz, City Clerk
October 24, 2024 Pg. 2

CIUDAD DE AVENAL
"Capital Mundial del Pistacho®"
REUNIÓN ORDINARIA DEL CONCEJO MUNICIPAL/AGENCIA
SUCESORA/PFA 24 DE OCTUBRE DE 2024; 5:15 P.M.

TEATRO Y CENTRO DE EVENTOS AVENAL, 233 E. KINGS ST., AVENAL, CA A TRAVÉS DE VIDEO/CONFERENCIA WEB DE ZOOM:

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

Sesión de Estudio: Presentación de Rainforest Energy 4:15 horas ÚLTIMA ORDENANZA: 2023-06. ÚLTIMA RESOLUCIÓN DE LA CIUDAD: 2024-50 (SA) ÚLTIMA RESOLUCIÓN: 2024-03 ÚLTIMA RESOLUCIÓN DE PFA: 2024-02 AGENDA

1. LLAMADO AL ORDEN Y JURAMENTO DE LEALTAD:

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

SECRETARIO MUNICIPAL:

Sección 54952.3 del Código de Gobierno: Los miembros del Concejo Municipal/Agencia Sucesora tienen derecho a recibir un total de $450.00 por mes debido a ser elegidos para el Concejo Municipal. No reciben ninguna otra compensación por ser miembros de la Agencia Sucesora.

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

Es la intención de este órgano rector reunirse en sesión cerrada 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 Cerrada.

A. Conferencia con el (los) Negociador(es) Laboral (Código de Gobierno § 54957.6).

Es la intención de este órgano rector reunirse en sesión cerrada para examinar su posición e instruir a sus representantes designados para: Representantes designados: APOA B. Conferencia con el (los) Negociador(es) de Bienes Raíces (Código de Gobierno § 54956.8).

Es la intención de este órgano rector reunirse en sesión cerrada para consultar con su(s) negociador(es) de bienes inmuebles con respecto a la compra, venta, intercambio o arrendamiento de bienes inmuebles por o para esta agencia de la siguiente manera:

1. Descripción de la propiedad: APN: 040-320-009-000; y 040-320-014-000 Negociador(es): Administrador de la Ciudad/Abogado de la Ciudad.

Parte con la que se negocia: Empresa CrisCom. Instrucciones al negociador relativas a: Condiciones de pago.

4. COMENTARIOS PÚBLICOS/ANUNCIOS Y APARICIONES NO PROGRAMADAS:

Cualquier persona puede dirigirse directamente al Concejo/Agencia en este momento sobre cualquier tema en la agenda o sobre cualquier otro tema de interés para el público que esté dentro de la jurisdicción temática 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.

Nueva Presentación del Personal de APD: Erika Martínez - Oficial de Propiedad y Evidencia; Karen Celis - Secretaria de Registros;
María Miranda - Oficial de Policía.

Promociones del personal: Angie Ortiz – Secretaria Municipal/Coordinadora de Desarrollo Comunitario; Ronald Brumley – Director de Servicios Públicos; Humberto Bermúdez – Director de Tecnologías de la Información; Brian Arellano – Gerente de Finanzas; Karla Curiel — Secretaria Municipal Adjunta

5. CALENDARIO DE CONSENTIMIENTO:

Todos los elementos enumerados en el calendario de consentimiento son de rutina o solo para aprobación y se promulgan mediante una moción: (Acción).

A. Considere la aprobación de las minutas de la Ciudad de Avenal/Agencia sucesora para el 10 de octubre de 2024.

B. Autorización para Aprobar y Firmar el Acuerdo de Carta Complementaria #3 entre la Ciudad de Avenal y la Asociación de Oficiales de Policía de Avenal (APOA) sobre el Proceso de Apelación Pre-Disciplinario y Post-Disciplina (Resolución 2024-51).

C. Renunciar a la segunda lectura y adoptar la Actualización de la Ordenanza Integral de Zonificación y Subdivisión de 2024 (Resolución 2024-52; Ordenanza 2024-02).

D. Considerar el Acuerdo Final entre la Ciudad de Avenal y el Distrito Escolar Unificado de Reef-Sunset para la Instalación y Operación de un Letrero Digital en Skyline Park (Resolución 2024-53).

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

October 24, 2024 Pg. 3
A. Informes de actividad:

1. Reporte de Actividades del Departamento de Policía: Cecilio Velasco, Jefe de Policía.

2. Informe de Actividades de Desarrollo Comunitario: Kelsey George, Planificadora de la Ciudad por Contrato, 4Creeks.

3. Informe de Desarrollo Económico y Redacción de Subvenciones: Emily Engelsgaard, Gerente de Subvenciones, The CrisCom Company.

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

A. Considere aprobar la solicitud de financiamiento para el año fiscal 2024/2025 (Resolución 2024-54) - Administrador de la ciudad (discusión/acción)
B. Actualización sobre la nueva implementación del software de facturación de servicios públicos - Administrador de la ciudad (informativo).

8. AUDIENCIA(S) PÚBLICA(S):

A. Ninguno.

9. NEGOCIO ANTIGUO:

A. Considerar la aprobación del acuerdo de SRO con RSUSD (Resolución 2024-4X) (Discusión/Acción).

10. NUEVOS NEGOCIOS:

A. Considere autorizar al administrador de la ciudad a firmar un acuerdo de participación con Asesores Comunitarios Garantizados (GCA) para el desarrollo de proyectos de biocombustibles sostenibles en Avenal (Resolución 2024-5X) - Administrador de la ciudad (discusión/acción) B. Considere enmendar la política de compras de la Ciudad de Avenal con respecto a la compra y el reembolso de equipos usados o artículos del mercado en línea (Resolución 2024-56) - Administrador de la Ciudad (discusión/acción).

11. CORRESPONDENCIA/ANUNCIOS/COMENTARIOS FINALES:

Cualquier miembro del Consejo podrá solicitar que un tema se incluya en un orden del día futuro, siempre que una mayoría simple también apoye la adición de dicho punto. Queda terminantemente prohibida la discusión o acción sobre cualquier tema que no esté en el orden del día actual. Los comentarios finales están destinados a que los miembros del Consejo informen al público sobre la asistencia a cualquier evento especial e información pertinente. • Próximos y futuros puntos del orden del día a tener en cuenta. • Correspondencia/Anuncios/Información/Comentarios finales.

12. APLAZAMIENTO:
1) En cumplimiento con la Ley de Estadounidenses con Discapacidades, si necesita asistencia especial para participar en esta reunión, comuníquese con la Oficina del Secretario Municipal (559) 386-5766. Teatro y Centro de Eventos Avenal, 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 [Concejo/Autoridad] después de la distribución del paquete de la agenda están disponibles para inspección pública en la oficina [de los Secretarios Municipales] en 919 Skyline Blvd., Avenal, CA 93204 durante el horario comercial normal.

Certifico que esta Agenda del taller del Concejo Municipal de la Ciudad de Avenal se publicará en los siguientes lugares: 1) Cámaras del Concejo Municipal, Teatro Avenal 233 E. Kings St.; 2) Ayuntamiento 919 Skyline Blvd.; 3) Madera Avenal, 600 Skyline Blvd.; y 4) T&T Market, 801 Skyline Blvd. Avenal CA 93204 el 21 de octubre de 2024. __ /s/ María Ortiz
María Ortiz, Secretaria Municipal
October 24, 2024 Pg. 4

CITY OF AVENAL
“Pistachio Capital of the World®”

REGULAR CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING
OCTOBER 10, 2024, 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 5:15 p.m.

ROLL CALL: Councilman, Ricardo Verdugo, Pablo Hernandez, Mayor Pro Tem Alejandro Ramirez, Mayor Alvaro Preciado.

ABSENT: Councilman Lou Gravelle,
STAFF: Lopez, Ortiz, Price, Bermudez, Davis, Velasco, Lara-Nieto.

LEGAL COUNCEL: Moses Diaz.

CITY CLERK:

The City Council went into Closed Session at 5:19 p.m.

CLOSED SESSION: (City/Successor Agency):

A. Personnel (Government Code §54957(b)).

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

B. Conference with Labor Negotiator(s) (Government Code § 54957.6).

It is the intent of this governing body to meet in Closed Session to review its position and to instruct its designated representatives: Designated representatives: City Employees Bargaining Units 4.

Mayor Preciado reopened meeting at 6:20 p.m. with nothing to report.

PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPEARANCES:

Maria Ortiz, City Clerk stated no comment cards have been submitted at this time. Staff presented a video was presented of the Avenal Cutoff Road project and pictures.

CONSENT \CALENDAR:

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

A. Consider City of Avenal/Successor Agency’s Approval of Minutes for September 26, 2024.

B. Consider Updating the City Clerk/Administrative Assistant job description to City Clerk/Community Development Coordinator, within Avenal City Hall (Resolution 2024-46).

C. Consider Entering into an M.O.U. with Avenal Rotary Club for the 2024 Pistachio Days Festival.

D. Consider Adoption of Citywide Policy Governing the Assignment and Use of Take-Home Vehicles for City Employees (Resolution 2024-47).

E. Consider Adoption of Citywide Policy Governing Travel Per Diem and Mileage Reimbursements (Resolution 2024-48).

AGENDA ITEM NO. 5. – A.

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Joint Meeting City Council/Successor Agency/PFA – October 10, 2024

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RESOLUTION 2024-46: UPDATING THE CITY CLERK JOB. Councilman Verdugo made a motion to approve, seconded by Councilman Hernandez and carried.

RESOLUTION 2024-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL ADOPTING A CITYWIDE TAKEHOME AND GENERAL VEHICLE USE POLICY FOR CITY EMPLOYEES. Councilman Verdugo made a motion to approve, seconded by Councilman Hernandez and carried.

RESOLUTION 2024-48: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL ADDOPTING AN EMPLOYEE TRAVEL PER DIEM AND MILEAGE REIMBURSEMENT POLICY. Councilman Verdugo made a motion to approve, seconded by Councilman Hernandez and carried.

Council Member/Successor Agency Member Verdugo motioned to approve Consent Calendar, seconded by Councilman/Successor Agency Member Hernandez, and motion carried.

ROLL CALL VOTE:

AYES: Verdugo, Hernandez, Ramirez, Preciado.

NOES: None.

ABSENT: Gravelle.

ABSTAIN: None.

ACTIVITY REPORTS/SPECIAL PRESENTATIONS& COMMITTEE REPORTS:

A. Activity Reports:

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

Scott Davis, Public Works Supervisor reported the following: 1) Code Enforcement; 2) Park & Landscape; 3) Animal Control; 4) Streets; Water Distribution; 5) Wastewater Collection; 6) Vehicle, Equipment & Building Maintenance. a. City Engineer’s Activity Report: Javier Andrade –A&M Consulting Engineers Javier Andrade –A&M Consulting Engineers reported activities as follows: 1) Local Roadway; 2) Roads/Streets; Kids Park; 3) Bathrooms; 4) Transportation and 4) Grants.

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

Humberto Bermudez, IT Manager reported the following: 1) Internet; 2) Phone System; 3) Emails; 4) Services; and 5) Others: -Civic Plus provides us the necessary info for the .gov migration, -Golden Rule Signs set to provide updates by end of week for the Skyline/Kings Street digital sign replacement. Currently awaiting update from MAVP on the Elliot Park signs -Staff demos and deploys Crossroads Software, a traffic collision reporting software for APD. Further functionality to be expanded upon with guidance from Chief of Police. -Continuing to assist in local events (Food distributions, Block Party) -Continues to maintain the city website and provide tech support across all facilities. -Image2000 reaches out with two proposals for a new printer lease. Staff reaches out to C.A. Redding and American Business Machines for quotes for both printing and letter folding.

3. Recreation Department Activity Report: Anna Lara, Community Activities Senior Leader Anna Lara, Community Activities Senior Leader reported the following: 1) Community Garden; 2) September 25th Community Night Out; 3) Rentals; 4) working on - Pistachio Fest October 15th-19th , October 25th-Trunk or Treat 5PM8PM/Animal Shelter will join, Dia de Los Muertos, Thanksgiving Dinner, Holiday Magic – Date change to December 7th; 5) Collaborations - Valley Voices – Food Distribution & October 23rd - Avenal State Prison Trunk or Treat.

4. Economic Development & Grant Writing Report: Emily Engelsgaard, Grants Manager, the CrisCom Company.

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

A. None.

October 24, 2024 Pg. 6
Joint Meeting City Council/Successor Agency/PFA – October 10, 2024

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PUBLIC HEARING(s):

Joint Hearing of the City of Avenal Successor Agency RDA Trust Obligations Fund/Public Finance Authority:

A. Consider Proposed City of Avenal Fiscal Year (FY) 2024/2025 City Budget /Fees & Charges:
• Staff Report
• Public Hearing
• Discussion/Action: Approval by Resolution (including Fees & Charges).

Note: Funding Requests included in FY 2022/2023.

City Manager Lopez reported that would like to continue Consider Proposed City of Avenal Fiscal Year (FY) 2024/2025 City Budget /Fees & Charges to the next City Council meeting.

Mayor Preciado opened Public Hearing to Consider Proposed City of Avenal Fiscal Year (FY) 2024/2025 City Budget /Fees & Charges at 7:22 p.m.

Romy Gutierrez had the following concerns: 1) Budget; 2) Road funds; 3) Mental Health; Avenal Police Department and 4) helping the youth with gangs and mental health issues and training for families.

RESOLUTION 2024-49: ADOPTING THE CITY OF AVENAL FISCAL YEAR BUDGET 2024/2025. Councilman Verdugo made a motion to approve, seconded by Councilman Hernandez and carried.

ROLL CALL VOTE:

AYES: Verdugo, Hernandez, Ramirez, Preciado.

NOES: None.

ABSENT: Gravelle.

ABSTAIN: None
B. Consider Comprehensive Zoning and Subdivision Ordinance Update:
• Staff Report
• Public Hearing
• Discussion/Action: Approval by Resolution.

Kelsey George, Planning Consultant reported in 2021, the City of Avenal sought proposals from qualified firms to prepare a comprehensive update to both the Zoning and Subdivision Ordinances of the Avenal Municipal Code. The current ordinances are outdated, do not reflect the goals and policies of the General Plan, and in places are inconsistent with state law. The City contracted with consulting firm QK, Inc. to develop the updates to meet the following goals: • Implement the 2035 General Plan • Ensure consistency with state and federal laws • Improve user-friendliness • Create a transparent process • Promote improved project design • Respond to community concerns Encourage infill development • Standardize development review On August 12, 2024, the draft ordinances were presented to the Avenal Planning Commission as an informational item to highlight major changes. On September 9, 2024, the Planning Commission formally recommended adoption of the ordinances via Resolution 24-02.

This hearing is to introduce the new comprehensive Zoning and Subdivision Ordinance Update for adoption. It is recommended that the City Council take the following actions:

1. Request the City Planner to deliver the staff report;

2. Ask any questions of staff regarding the action;

3. Open the public hearing for comments; close the public hearing; ask for any additional Commission discussion and questions;

4. Request a motion for action on the project. Staff recommends the Council approve the project by adopting:

Ordinance 2024-02 (finding the project exempt from CEQA and adoption of the proposed ordinances) Mayor Preciado opened Public Hearing at 7:36 p.m. closed Public Hearing with no comments.

October 24, 2024 Pg. 7
Joint Meeting City Council/Successor Agency/PFA – October 10, 2024

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ORDINANCE 2024-02: (FIRST READING & INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AVENAL REVISING CHAPTER 6 AND REPEALING THE EXISTING ZONING ORDINANCE AND SUBDIVISION ORDINANCE (CHAPTERS 9 AND 10 OF THE AVENAL MUNICIPAL CODE) AND REPLACING THEM WITH A NEW COMPREHENSIVE ZONING AND ZONING ORDINANCE UPDATE.

Councilman Verdugo made a motion to approve, seconded by Councilman Hernandez and carried.

ROLL CALL VOTE:

AYES: Verdugo, Hernandez, Ramirez, Preciado.

NOES: None.

ABSENT: Gravelle.

ABSTAIN: None.

OLD BUSINESS:

A. Consider Approving SRO Agreement with RSUSD: (Discussion/Action).

City Manager Lopez reported still negotiation SRO Agreement requesting to table item.

Mayor Preciado made the motion to table, seconded by Councilman Verdugo and motion carried ROLL CALL VOTE:

AYES: Preciado, Verdugo, Gravelle.

NOES: None.

ABSENT: Hernandez, Ramirez.

ABSTAIN: None.

NEW BUSINESS:

A. None.

CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS:

City Manager Lopez reported the following: 1) Thanked, City Council for a speedy meeting.

Councilman Verdugo reported the following: Thanked all City staff.

Mayor Preciado reported the following: 1) attended many meetings and thanks the community for attending.

ADJOURNMENT:

Mayor Preciado report that with no further business the meeting was adjourned at 7:57 p.m.

Respectfully submitted,
Maria Ortiz, City Clerk
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City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 5. B
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: October 24, 2024
RE: Authorization to Approve and Sign the Side Letter Agreement #3 between the City of Avenal and the Avenal Police Officers’ Association (APOA) Regarding Pre-Discipline and Post-Discipline Appeal Process INFORMATION:

The City of Avenal and the Avenal Police Officers’ Association (APOA) have negotiated and mutually agreed upon a Side Letter Agreement regarding updates to the Pre-Discipline and PostDiscipline appeal process. This agreement formalizes the procedures and protocols for handling disciplinary matters for members of the APOA, ensuring clarity and consistency in the process.

Key elements of the agreement include:
• Pre-disciplinary procedures as outlined in Avenal Police Policy 1010.10.2. • Establishment of a post-disciplinary appeal process, including an Evidentiary Hearing before the City Manager or their designee.
• Cost-sharing for the Evidentiary Hearing between the employee and the City (50/50). • A non-binding advisory opinion provided to the City Manager following the hearing, with the City Manager rendering the final decision unless deferred to the City Council in cases of conflict of interest or extraordinary circumstances.

As a relatively young department, we have not previously had to engage in the Skelly process.

However, as both the City and the department continue to grow, it is essential that we retain our rights in handling disciplinary matters, particularly in cases of misconduct. This Side Letter Agreement ensures that we have a clear and consistent framework in place to manage predisciplinary and post-disciplinary processes, safeguarding the City’s ability to address these issues effectively while maintaining fairness for all parties involved.

RECOMMENDATION:

Staff recommends that the City Council approve the Side Letter Agreement with the Avenal Police Officers’ Association and authorize the City Manager to execute the agreement on behalf of the City of Avenal.

Approve by motion Resolution 2024-51 as presented.

October 24, 2024 Pg. 16
Side Letter Agreement
Between
City of Avenal
And
Avenal Police Officers' Association
The City of Avenal ("City) and the Avenal Police Officers Association ("Association"), collectively "parties", have met and conferred and agreed to this Side Letter of Agreement ("Agreement") regarding the Pre- Discipline and Post-Discipline appeal process.

This purpose of the Agreement is to establish clear and consistent protocols for the handling and administration of the pre-disciplinary process and post-disciplinary appeal process for members of the Association. Nothing in this Agreement is intended to usurp or take away from the California Peace Officer Bill of rights entitled to members of the Association.

Pre-Disciplinary Process
(As currently outlined in Avenal Police Policy 1010.10.2) Upon receipt of any written recommendation for disciplinary action, the Chief of Police shall review the recommendation and all accompanying materials. The Chief of Police may modify any recommendation and/or may return the file to the Division Commander for further investigation or action. Once the Chief of Police is satisfied that no further investigation or action is required by staff, the Chief of Police shall determine the level of discipline, if any, that should be imposed.

In the event disciplinary action is proposed, the Chief of Police shall provide the member with a pre-disciplinary procedural due process hearing (Skelly) by providing written notice of the charges, proposed action, and reasons for the proposed action.

Written notice shall be provided within one year from the date of discovery of the misconduct (Government Code§ 3304(d)). The Chief of Police shall also provide the member with:
(a) Access to all of the materials considered by the Chief of Police in recommending the proposed discipline.
(b) An opportunity to respond orally or in writing to the Chief of Police within five days of receiving the notice.

Upon a showing of good cause by the member, the Chief of Police may grant a reasonable extension of time for the member to respond.

October 24, 2024 Pg. 17
If the member elects to respond orally, the presentation may be recorded by the Department. Upon request, the member shall be provided with a copy of the recording.

Once the member has completed his/her response or if the member has elected to waive any such response, the Chief of Police shall consider all information received in regard to the recommended discipline. The Chief of Police shall render a timely written decision to the member and specify the grounds and reasons for discipline and the effective date of the discipline.

Once the Chief of Police has issued a written decision, the discipline shall become effective.

The Chief of Police or the authorized designee shall ensure that the complainant is notified of the disposition (i.e., sustained, not sustained, exonerated, unfounded) of the complaint (Penal Code§ 832. 7(f)).

Post Disciplinary Appeal Process
{Added language)
Whenever an employee chooses to appeal a Final Notice of Discipline for a Fine, Suspension, Demotion or Termination, the employee shall have ten (10) calendar days to notify the Director of Human Resources or their designee.

The post disciplinary appeal process will consist of an Evidentiary Hearing before the City Manager or their designee.
• This cost of the Evidentiary Hearing will be split equally between the Employee and City (50/50).
• At the conclusion of the Evidentiary Hearing, a non-binding advisory opinion shall be issued to the City Manager, who shall render the final decision on discipline. This advisory opinion shall be provided to the Employee and City within 60 calendar days, unless mutually extended by both parties, but not beyond 90 calendar days. • In cases where the City Manager determines that a conflict of interest or extraordinary circumstances exist, the City Manager may defer the decision to the City Council. The City Manager's decision shall be final, except in such instances of deferral, where the City Council's decision will be final. • Deliberation by City Council related to Disciplinary Appeal matters shall be held in Closed Session.

October 24, 2024 Pg. 18
This Agreement shall be effective on the date below and shall have no expiration unless the City and Association mutually agree to modify the Agreement in writing. This Agreement will be addressed and included, as agreed upon in writing, in the successor MOU.

FOR THE CITY OF AVENAL:

ANTONY LOPEZ
City Manager
Date:

ROLDAN DELEON
A. P.O.A. President
Date: l D -- le,, zi
October 24, 2024 Pg. 19
1 of 2

BEFORE THE CITY COUNCIL OF THE

CITY OF AVENAL
IN THE MATTER OF:

Resolution of the City Council of the City
of Avenal Ratifying Side Letter #3 with the
Avenal Police Officer’s Association
(APOA) Attached to the July 1, 2021 –
June 30, 2025 MOU.

RESOLUTION 2024-__51__
WHEREAS, a Resolution to Meet and Confer with the Avenal Police Officer’s Association (APOA) was adopted in 2011 to meet and discuss working conditions, salaries, benefits, and other incidental matters; and
WHEREAS, the City of Avenal and the Avenal Police Officers’ Association (APOA) have met and conferred in good faith to establish a clear, consistent, and fair pre-disciplinary and post-disciplinary process that aligns with legal requirements, including the California Peace Officer Bill of Rights; and WHEREAS, the City of Avenal and the APOA have reached an agreement regarding these processes and wish to formalize it through a Side Letter Agreement that outlines specific protocols for discipline, appeals, and post-disciplinary hearings; and WHEREAS, the City Council of Avenal supports the growth and professionalism of its police department while ensuring that the City retains the necessary authority to manage employee discipline effectively and fairly
WHEREAS, the City Council and the City Manager have agreed to the following:

SEE ATTACHMENT A
UPON MOTION OF COUNCIL MEMBER ______ , SECONDED BY
COUNCIL MEMBER _______ , THE FOLLOWING WAS PASSED,

APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL REGULAR MEETING HELD ON OCTOBER 24, 2024, BY THE FOLLOWING VOTE:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

Alvaro Preciado, Mayor

CITY OF AVENAL
MARIA A. ORTIZ, City Clerk

CITY OF AVENAL
October 24, 2024 Pg. 20
2 of 2
* * * * * * * * * * * * * * * * * *
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL:

1. Found the foregoing recitals to be true, correct and incorporated herein;

2. That the City Council hereby approves the side letter agreement #3 as agreed upon by both the City and APOA as per Attachment A.

3. That such language changes are effective as of July 1, 2019.

4. All other benefits shall remain the same.

5. The City Council of the City of Avenal hereby authorizes the Mayor or City Manager to sign and execute documents and agreements related to this action on behalf of the City of Avenal.

6. Ordered relevant City staff to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper and/or convenient and/or incidental thereto.
* * * * * * * * * * * * * * * * * *
20200916 - Avenal - Resolution Appointing City Attorney-v1.doc October 24, 2024 Pg. 21
City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
AGENDA ITEM NO. 5.- C
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: October 24, 2024
RE: Waive Second Reading and Adopt the 2024 Comprehensive Zoning and Subdivision Ordinance Update
BACKGROUND:

On October 10, 2024, the City Council held a public hearing to review the comprehensive updates to the Zoning and Subdivision Ordinances (Ordinance No. 2024-02) as part of the broader implementation of the 2035 Avenal General Plan. During this meeting, the Council waived the first reading of the Ordinance and passed it on to today’s meeting for the second reading and adoption.

The updates include revisions to Chapter 9 (Zoning) and Chapter 10 (Subdivision) of the Avenal Municipal Code, addressing consistency with state and federal laws, promoting development, and streamlining the approval processes. Additionally, Chapter 6 (Sanitation and Health) was also amended as part of this process. These updates are necessary to ensure the City of Avenal’s zoning practices align with modern standards and support ongoing community development.

Request:

Today’s meeting is the second reading of Ordinance No. 2024-02. Staff is requesting that the City Council waive the second reading and adopt the ordinance in its entirety, implementing the changes to the City’s Zoning and Subdivision Ordinances as recommended.

FINANCIAL IMPACT:

No immediate financial impact is associated with this action. The adoption of the updated ordinances will promote streamlined development and ensure consistency with state laws, which may positively affect future development opportunities in Avenal.

RECOMMENDATION:

Staff recommends that the City Council:

1. Waive the second reading of the ordinance.

2. Adopt Ordinance No. 2024-02, implementing the updated Zoning and Subdivision Ordinances.

October 24, 2024 Pg. 22

Page 1 of 2 ends

BEFORE THE CITY COUNCIL OF THE

CITY OF AVENAL
IN THE MATTER OF:

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF AVENAL

WAIVING THE SECOND READING
AND ADOPTING ORDINANCE NO.
2024-02 REVISING CHAPTER 6 AND

REPEALING AND REPLACING
CHAPTERS 9 AND 10 OF THE

AVENAL MUNICIPAL CODE WITH

UPDATED ZONING AND

SUBDIVISION ORDINANCES
RESOLUTION 2024-_52_
WHEREAS, on October 10, 2024, the City Council of the City of Avenal held a public hearing and waived the first reading of Ordinance No. 2024-02, which revises Chapter 6 (Sanitation and Health) and repeals and replaces Chapter 9 (Zoning) and Chapter 10 (Subdivision) of the Avenal Municipal Code; and WHEREAS, the City Council now holds the second reading of Ordinance No. 2024-02 during its October 24, 2024 meeting; and
WHEREAS, the City Council finds that these updates are necessary to comply with the 2035 Avenal General Plan, state and federal laws, and to promote development and community engagement; and
WHEREAS, the City Council desires to waive the second reading and adopt Ordinance No. 2024-02 to revise Chapter 6, repeals and replaces Chapters 9 and 10 of the Avenal Municipal Code.

UPON MOTION OF COUNCIL MEMBER , SECONDED BY

COUNCIL MEMBER , THE FOLLOWING WAS PASSED,

APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL MEETING HELD ON October 24, 2024, BY THE FOLLOWING VOTE:

October 24, 2024 Pg. 23

Page 2 of 2 ends

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

Alvaro Preciado, Mayor

CITY OF AVENAL
MARIA A. ORTIZ, City Clerk

CITY OF AVENAL
* * * * * * * * * * * * * * * * * *
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL:

1. Finds that the foregoing recitals are true and correct.

2. The City Council of the City of Avenal waives the second reading and adopts Ordinance No. 2024-02, revising Chapter 6 and repealing and replacing Chapters 9 and 10 of the Avenal Municipal Code.

3. The City Manager is authorized to take any additional actions necessary to complete the implementation of the comprehensive Zoning Ordinance Update.

4. Authorizes the City Manager, City Clerk, and all relevant City staff to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper, and/or convenient and/or incidental thereto. * * * * * * * * * * * * * * * * * *
October 24, 2024 Pg. 24

BEFORE THE CITY COUNCIL OF THE

CITY OF AVENAL
IN THE MATTER OF:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AVENAL REVISING CHAPTER 6 AND REPEALING THE

EXISTING ZONING ORDINANCE AND SUBDIVISION
ORDINANCE (CHAPTERS 9 AND 10 OF THE AVENAL

MUNICIPAL CODE) AND REPLACING THEM WITH A NEW

COMPREHENSIVE ZONING AND ZONING ORDINANCE
UPDATE
ORDINANCE 2024-02
WHEREAS, the City of Avenal has prepared a comprehensive update of the Avenal Zoning and Subdivision Ordinance; and,
WHEREAS, several action plans of the 2035 Avenal General Plan call for the City to adopt a new Zoning and Subdivision Ordinance for a variety of reasons, including:
• Implementation of the 2035 Avenal General Plan
• Consistency with State and FederalLaws
• User-Friendliness
• Creation of a Transparent Process
• Promotion of Areas of Development Design
• Response to Community Concerns
• Promotion of Infill Development
• Standardized Development Review
WHERAS, the City’s existing Zoning and Subdivision Ordinances are significantly dated and not consistent with current development practices or the goals and policies of the 2035 General Plan; and,
WHEREAS, on September 9, 2024, the Planning Commission recommended approval of the comprehensive Draft Zoning and Subdivision Ordinance, as well as recommended approval to the changes made to the Sanitation and Health Code; and, WHERAS, on September 26, 2024, the City Council received an update on the status of the Draft Zoning and Subdivision Ordinance; and, WHERAS, the City has reviewed the Project in compliance with the California Environmental Quality Act (CEQA) and determined the Project was exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the common sense exemption, since the updates will have no significant environmental effect; and, WHEREAS, a duly noticed public hearing was held by the City Council for the review of the proposed comprehensive updates to the Zoning and Subdivision Ordinances on October 10, 2024 for the purposes of receiving public comments and taking action to adopt the ordinances; and,
October 24, 2024 Pg. 25

UPON MOTION OFCOUNCILMEMBER , SECONDED BY COUNCILMEMBER , FOREGOING ORDINANCE NO. 2024- _ WAS INTRODUCED AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF AVENAL ON THE 10TH DAY OF OCTOBER, 2024, AND WAS PASSED AND ADOPTED AT A REGULAR MEETING OF THE CITY COUNCIL ON THE __ DAY OF _________________, 2024, BY THE FOLLOWING VOTE:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

Alvaro Preciado, Mayor

CITY OF AVENAL
MARIA A. ORTIZ, City Clerk

CITY OF AVENAL
* * * * * * * * * * * * * * * * * *

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AVENAL DOES ORDAIN AS FOLLOWS:

Section 1. Chapter 9 (Zoning) is hereby rescinded and replaced with the Zoning Ordinance Update (new Chapter 9) as shown in Attachment “A”.

Section 2. Chapter 10 ( Subdivision Ordinance) of the Avenal Municipal Code is hereby rescinded and replaced with the Subdivision Ordinance Update (new Chapter 10) as shown in Attachment “B”.

Section 3. Chapter 6 (Sanitation and Health) of the Avenal Municipal Code is hereby amended with the Sanitation and Health Update as shown in Attachment “C”.

Section 4. Any typographical or clerical errors in this Ordinance may be remedied by the City Planner with the assistance of the City Clerk and shall not constitute an ordinance update.

Section 5. This ordinance shall take effect thirty days after its adoption.

Section 6. The City Clerk is authorized and directed to cause this ordinance to be codified after its adoption.

Section 7. The City Clerk is further authorized and directed to cause this ordinance or a summary of this ordinance to be published once in a newspaper of general circulation published and circulated in the City of Avenal within 15 days after its adoption. If a summary of this ordinance is published, then the City Clerk also shall cause a summary of the proposed ordinance to be published and a certified copy of the full text of the proposed ordinance to be posted in the office of the City Clerk at least five days prior to the Council’s meeting at which the ordinance is adopted and again after the meeting at which the ordinance is adopted. The summary shall be approved by the City Attorney.

Section 8. Authorized the City Manager, City Clerk and all relevant City staff to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper and/or convenient and/or incidental thereto.
* * * * * * * * * * * * * * * * * *
October 24, 2024 Pg. 26
City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
AGENDA ITEM NO. 5.- D
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: October 24, 2024
RE: Consider Final Agreement between City of Avenal and Reef-Sunset Unified School District for the Installation and Operation of a Digital Marquee Sign at Skyline Park
BACKGROUND:

The City of Avenal has secured $100,000 in funding from Kings County Behavioral Health for the promotion of mental health awareness and substance use prevention. The first digital sign was installed at Kings and Skyline, and a second larger sign will be installed at Skyline Park, the purchase of which has previously been approved in July by the Council.

For the second sign, the City has negotiated an MOU with Reef-Sunset Unified School District (RSUSD), in which RSUSD will contribute $72,000 to cover a portion of the cost. This partnership is beneficial as it helps to offset the cost of the sign without utilizing the City’s General Fund.

Agreement Summary:
• RSUSD will contribute $72,000 towards the sign’s purchase and installation. • The City will retain ownership and maintenance responsibilities for the sign. • RSUSD will have access to 50% of the viewing time on the digital marquee for District communications.
• Both parties will meet at least twice per year to determine how viewing time will be allocated.
• The City will cover all operational costs, including electricity and maintenance.

FINANCIAL IMPACT:

The total cost of the sign is $116,025, which the remainder $44,025 will be covered by the grant from Behavioral Health, with some remaining for contingencies or future operational expenses.

Overall, this agreement is a positive financial decision for the City, as it leverages external funding to pay for a much-needed community resource.

RECOMMENDATION:

Staff recommends that the City Council approve the MOU between the City of Avenal and RSUSD for the installation of a digital marquee sign at Skyline Park and authorize the City Manager to execute the agreement.

October 24, 2024 Pg. 27

Page 1 of 2 ends

BEFORE THE CITY COUNCIL OF THE

CITY OF AVENAL
IN THE MATTER OF:

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF AVENAL

APPROVING THE FINAL AGREEMENT

BETWEEN CITY OF AVENAL AND

REEF-SUNSET UNIFIED SCHOOL

DISTRICT FOR THE INSTALLATION

AND OPERATION OF A DIGITAL

MARQUEE SIGN AT SKYLINE PARK
RESOLUTION 2024-_53_
WHEREAS, the City of Avenal has received funding from Kings County Behavioral Health to promote mental health awareness and substance use prevention; and WHEREAS, the City has a remaining balance from the initial grant following the purchase of the first digital sign; and
WHEREAS, the City seeks to install a second digital marquee sign at Skyline Park with a total cost of $116,025; and
WHEREAS, the Reef-Sunset Unified School District (RSUSD) has agreed to contribute $72,000 towards the cost of the sign, as stipulated in the attached agreement; and
WHEREAS, the partnership with RSUSD provides a mutual benefit to both the District and the City by ensuring 50% of the viewing time for District use while promoting community engagement; and
WHEREAS, the collaboration allows for the installation of the digital marquee sign without utilizing the City’s General Fund, thus being fiscally responsible.

UPON MOTION OF COUNCIL MEMBER , SECONDED BY

COUNCIL MEMBER , THE FOLLOWING WAS PASSED,

APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL MEETING HELD ON October 24, 2024, BY THE FOLLOWING VOTE:

October 24, 2024 Pg. 28

Page 2 of 2 ends

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

Alvaro Preciado, Mayor

CITY OF AVENAL
MARIA A. ORTIZ, City Clerk

CITY OF AVENAL
* * * * * * * * * * * * * * * * * *
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL:

1. Finds that the foregoing recitals are true and correct.

2. The City Council approves the purchase and installation of a 14’ x 11’ digital sign at Skyline Park from MAVP.

3. The City Council authorizes the City Manager to execute the attached agreement with RSUSD, incorporating the agreed-upon terms and subject to legal review.

4. The City Manager is authorized to take any additional actions necessary to complete the purchase and installation of the sign, including addressing any price fluctuations.

5. Authorizes the City Manager, City Clerk, and all relevant City staff to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper, and/or convenient and/or incidental thereto. * * * * * * * * * * * * * * * * * *
October 24, 2024 Pg. 29
1 Agreement between
City of Avenal
and
Reef-Sunset Unified School District
Regarding the Installation and Operation of a Digital Marquee Sign at Skyline Park THIS AGREEMENT (“Agreement”) is entered into by and between the CITY OF AVENAL, a municipal corporation (“City”), and REEF-SUNSET UNIFIED SCHOOL DISTRICT, a public school district of the State of California (“RSUSD”) and shall commence on the Effective Date, as defined herein.

Recitals
Whereas, the City of Avenal has received funding support from the Kings County Behavioral Health to purchase and install digital marquee signs to promote mental health awareness and substance use prevention; and
Whereas, RSUSD has an interest in ensuring that parents and families of students and community members are properly informed of important educational events, issues and programs, and desires to assist City in the installation of one such sign (“Marquee Sign”) in exchange for a percentage of use of thereof for District communications, as described herein.

NOW THEREFORE, in consideration of the above recitals, the mutual covenants and conditions herein contained, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

Terms of Agreement:

1. Specifications of Marquee Sign
The Marquee Sign shall be installed and located at the corner of SR 269 (Skyline Blvd.) and Hydril Road.

The Marquee Sign shall be owned, operated and maintained by the City in accordance with applicable law, policy and terms of any grant funding, as well as the terms of this Agreement.

2. Cost Sharing:
(a) RSUSD agrees to pay or reimburse the City the amount of $72,000 to assist with the costs of purchasing the sign, construction and management. RSUSD’s payment shall be fixed, regardless of cost overruns, change orders or other unexpected costs that may arise hereunder, unless otherwise specified herein.
(b) The City will cover all remaining costs for installation of the Marquee Sign. City shall be solely responsible for meeting all legal requirements associated with acquisition and installation of the Marquee Sign, including environmental review, if necessary, permitting, bidding and associated public works requirements.

October 24, 2024 Pg. 30
2 3. Access and Control and Scheduling:
(a) RSUSD will have use, access and control over 50% of the cycled viewing time of the Marquee Sign. The Parties shall meet on a regular basis, no less than twice per year, to determine how cycled time allocations will be shared, whether daily, hourly, weekly, monthly or on any other basis. In the event of any conflict with the existing MOU between City and Kings County Behavioral Health, RSUSD will be allocated the City's 50% viewing time. Both RSUSD and the City's designated administrator (IT Manager) will have access to manage the sign's system. (b) Either Party may solicit commercial advertising for display during that Party’s viewing time.

4. Term:
(a) The initial term (“Term”) of this agreement shall be 10 years, commencing as of November 1, 2024 (“Effective Date”) and ending on October 31, 2034, unless extended. The Agreement may be extended at the mutual agreement of the Parties for up to three additional five-year terms (each, a Renewal Term). In the event the Marquee Sign no longer remain operational at the end of a Term or a Renewal Term, the Agreement shall expire, RSUSD use shall cease, and City shall be responsible for the costs of removal and disposal. However, if the Marquee Sign remains operational and functional at the end of the Term or a Renewal Term, but City no longer wishes to operate it, District shall have the option (but not the obligation) to assume full control over the Marquee Sign, including responsibility for all ongoing maintenance, utility costs, repairs and removal, on terms agreed to by the Parties.
(b) Termination with Cause. Either Party shall have the right to terminate this Agreement in the event of a default in performance by the other Party, which default shall not have been cured within thirty (30) days from notice thereof by the non-defaulting Party; provided, however, that if the Agreement is terminated hereunder, City shall repay RSUSD the amount of its contribution, less 10% for each year or portion thereof that the Agreement has been in effect. (c) Termination without Cause. This Agreement may be terminated without cause as of November 1, 2030 or any November 1 thereafter during the Term as long as the non-terminating Party has been provided 12 months’ written notice of termination by the terminating party; and provided further that should City elect to terminate this Agreement without cause it shall pay RSUSD a termination fee as follows:

Date of Termination Termination Fee Due
to RSUSD
November 1, 2030 $50,000
November 1, 2031 $37,500
November 1, 2032 $25,000
November 1, 2033 $12,500
November 1, 2034 and
thereafter
$0

5. Operational Costs:

The City will pay for the electricity and other utility, insurance and operating costs for the Marquee Sign.

October 24, 2024 Pg. 31
3 6. Maintenance and Repairs:

The City will keep the Marquee Sign in good repair at all times, and shall be solely responsibility for repairs and maintenance City shall promptly respond to and address repair and maintenance needs and shall coordinate repairs and maintenance to with RSUSD to minimize periods of non-operation of the Marquee Sign during the Term.

7. Content Management:

Neither Party shall interfere with or restrict the content of the other Party’s messaging on the Marquee Sign. City represents that no other agency, including Kings County Behavioral Health, shall require preapproval or content approval over RSUSD’s use of or messaging on the Marquee Sign.

8. Mutual Indemnification
Each Party shall, to the fullest extent permitted by law, indemnify, defend, and hold harmless the other Party, its officers, directors, and employees, attorneys, agents, representatives, volunteers, successors, and assigns (collectively hereinafter “Indemnified Party”) from and against any and all actions, suits, claims, demands, losses, costs, penalties, obligations, errors, omissions, or liabilities, including legal costs, attorneys' fees, and expert witness fees whether or not suit is actually filed and/or any judgment rendered against the Indemnified Party that may be asserted or claimed by any person, firm, or entity arising out of the installation and operation of the Marquee Sign and this Agreement, provided, however, that neither Party shall not have any obligation to indemnify, hold harmless, or defend the other Party from any and all claims, demands, actions, suits, losses, liabilities, expenses, and costs for any injury, death, or damage to any person or property resulting from or arising out of the willful negligence or intentional acts, errors, or omissions of the such Party.

October 24, 2024 Pg. 32
4 9. Fruitful Relationship:

Both parties agree to maintain open communication and cooperation to ensure the successful implementation and ongoing operation of the Marquee Sign. Any future agreements or modifications to this Agreement will be discussed and agreed upon by both parties, mutually, and in writing.

Signatories:

City of Avenal:
__________________________________________________
Antony V. López, City Manager
City of Avenal
Date: _____________________
Reef-Sunset Unified School District:
__________________________________________________
Juan Ruiz, Superintendent
Reef-Sunset Unified School District
Date: _____________________
October 24, 2024 Pg. 33

AVENAL POLICE DEPARTMENT
Cecilio Velasco, Chief of Police
317 Alpine St., Avenal, CA 93204
Bus. 559-386-4444 Fax 559-386-4447
Chief’s Monthly Report
October 24, 2024
Organizational Priorities
I. Leadership Stability
• Acting Captains R. DeLeon and E. Rij have been progressively adapting to their leadership roles, providing valuable guidance to officers and recognizing the importance of formal training to supplement hands-on experience for both recruits and junior officers. • We are currently holding regular discussions to evaluate department needs and remain proactive in addressing staffing, training, and operational requirements to ensure continued growth and efficiency. We continue to pinpoint critical areas for training and development to elevate our service standards and professionalism, ensuring our personnel receive the training necessary for success.
• We recently conducted our first Field Training Officer (FTO) meeting, now comprised of an FTO Supervisor and four FTOs. The discussion covered a range of topics, including expectations for both FTOs and trainees, maintaining high standards, accountability, enhancing professionalism, tact, leadership, effective training techniques, succession planning, and more.

II. Recruit and Retain the Best
• We are actively seeking candidates for Police Officer I/II, Police Sergeant positions. • Officer Rafael Silva has successfully completed the Field Training Officer (FTO) program and is now serving as a solo officer. Officer Baltazar Morillon is making steady progress through the FTO program and, if all continues to go well, is on track to complete the program in the near future.
• Officer Maria Miranda was sworn in on October 16 and has now entered the Field Training Officer (FTO) program. In addition, we currently have two Police Officer candidates undergoing the background process—one is a lateral transfer, and the other is a cadet in the academy. We also have a local, well-educated Community Service Officer (CSO) candidate in the background process. If all evaluations, checks, and tests are successfully completed, they may soon be joining our agency.
• Records Clerk Karen Celis started her position on September 30, 2024, and is steadily adjusting to her new role.
• We continue to actively utilize our agency's social media platforms to reach a wider audience.

III. International Model of Community Trust
• Our officers and professional staff are dedicated to strengthening our relationship with the community through ongoing positive interactions and events. We continue to collaborate closely with the Avenal Rotary Club, a wonderful local organization that does tremendous work for the October 24, 2024 Pg. 34

AVENAL POLICE DEPARTMENT
Cecilio Velasco, Chief of Police
317 Alpine St., Avenal, CA 93204
Bus. 559-386-4444 Fax 559-386-4447
community and youth. Their members are truly caring individuals who make a significant impact.

Additionally, we partner with the California Department of Corrections, attending the Citizen’s Advisory Committee Meetings where we discuss community projects and explore ways to collaborate. They have been exceptional partners, recently donating much-needed funds to revitalize our Explorer Program, facilitated by the Avenal Rotary Club. We also attended CDCR’s Family Night, which was a fantastic event. Our department was actively involved in the Avenal Pistachio Festival, Loteria Night, food distributions, and we look forward to participating in many more community events.
• We are in the process of revitalizing our Explorer Program, made possible through the generous support of the California Department of Corrections, the Avenal Rotary Club, as well as the city and community members. This program is vital for youth ages 14-20 who are interested in pursuing a career in law enforcement, whether in policing, corrections, or simply for those looking to become engaged community members dedicated to helping others. • Our anti-bullying, anti-gang, and anti-drug campaign will launch once the grant is executed.

Additionally, once the grant is executed, we plan to launch our Community Engagement Team, which will likely work in tandem with our Community Response Team that we will be revamping.

IV. Among the Safest Cities in America
• Our efforts to combat violence are showing positive results. While we still encounter some incidents, they have noticeably decreased thanks to our strategic adjustments in patrol deployment. Just last week, we successfully apprehended two individuals and seized two firearms. We remain committed to staying proactive and vigilant and will continue to push forward with these efforts to ensure the safety of our community. • Strengthening relationships remains a priority, and we’re making strides in building even deeper connections with both the community and neighboring agencies. • Congressman Valadao, who serves on the House Fiduciary Committee and has significant influence, visited with me recently. We discussed the possibility of securing much-needed federal funding through earmarks or grants to address our community's resource, system, and infrastructure needs. The meeting was positive, and I’m confident in his willingness and ability to help based on his encouraging remarks.

V. Embrace Wellness Among Our Employees
• Creating a supportive and thriving work environment remains a priority for us. We regularly engage staff in conversations that cover topics like healthy living, emotional resilience, fostering compassion, and managing both personal and professional challenges. Our focus is on holistic development, ensuring the team stays energized, positive, and equipped for success in all aspects of their roles.

October 24, 2024 Pg. 35

AVENAL POLICE DEPARTMENT
Cecilio Velasco, Chief of Police
317 Alpine St., Avenal, CA 93204
Bus. 559-386-4444 Fax 559-386-4447
Month
Calls for Service Officer Initiated Activity Citations Traffic Collisions Arrests Field
Interviews
January 770 438 23 6 39 10
February 842 473 22 10 38 12
March 1019 664 18 12 33 1
April 919 530 28 14 32 2
May 958 569 25 10 30 0
June 816 456 30 5 26 0
July 804 406 12 0 20 1
August 1008 630 32 1 40 0
September 993 592 24 8 27 0
October 474 232 5 3 23 0
November
December
October 24, 2024 Pg. 36
Date: October 24 , 2024
To: Avenal City Council
From: Kelsey George, City Planning Consultants
RE: Planning Activities
The following is brief summary of planning and zoning work conducted by our firm for the City of Avenal over the past month:
• Respond to miscellaneous public and staff inquiries planning and zoning issues, processing of OpenGov Tasks, and reviewing business licenses. • Temporary Use Permit for demo/clean up – 1037 7th Street • Address Assignments – 744 Shasta
• Review previously approved SPR - 524 San Joaquin
• Respond to questions on zoning and check permitted uses on property • Conditional Use Permit
• Second dwelling unit on property zoned D-C (Downtown Commercial) • PC on 10/7/2024 – no quorum
• Allowed applicant to move forward with building permits; withholding occupancy until November PC hearing
• Fresno and Kings County Boundary Change/Avenal Annexation • Continue to coordinate with applicable staff; meeting with Kings County LAFCo to discuss approach
• Working on application process and timeline to provide to City for review and get the application submitted
• Coordinate with Kings County on the Multi-Jurisdictional Housing Element • City Council authorized Draft Housing Element to be submitted to HCD on 8/26, 2024
• The City received one letter of support of the Housing Element during the review period
• Draft Housing Element is submitted to HCD by the consultant on 10/9/24 for 90- day review/commenting period.

October 24, 2024 Pg. 37
• Environmental Justice and Safety Elements
• Working on scope and approach for the City to update Safety Element and establish EJ Element in compliance with State Law
• Zoning and Subdivision Ordinance
o Went to CC for the first reading on 10/10/24; second hearing is 10/24/24  Will go into effect on 11/23/2024
October 24, 2024 Pg. 38
The CrisCom Company –
City of Avenal Update
October, 2024
Legislative Update
California's Legislative Landscape:

Governor Gavin Newsom has concluded the legislative session by signing or vetoing approximately 1,200 bills, addressing a wide range of issues facing California. We are maintaining communication with our state elected officials and preparing our requests for the next legislative session to ensure they are prioritized in the 2025 budget.

Federal Legislative Update
Congress is currently in recess until November 12, 2024, but significant developments have occurred. A bipartisan 12-week funding extension was passed, avoiding a federal shutdown and extending FY2024 funding until December 20th, 2024. House and Senate leaders will use this time to continue negotiations over federal spending levels for FY2025, with the outcome of the November presidential election expected to influence these discussions. Our Community Project Funding request is still on track with Congressman Valadao, and we are maintaining regular communication with his office to ensure our project remains a priority. We will continue to monitor federal legislative developments and maintain our strong relationships with our elected officials to further improve our city.

Sacramento Snapshot:

The final Sacramento Snapshot of the session was sent out on October 1, 2024. The Sacramento Snapshots will resume with updates in January, 2025 when the Legislature reconvenes and begins introducing new bills.

Economic Development Update:

We continue to contact various venues, from movie theatres to food establishments and clothing stores. While many of these companies have stated that Avenal is not on their radar, we continue to engage to ensure we are at the forefront and they are familiar with our City. We have diligently worked with a hand-full of vendors, hoping Avenal will gain a National fast-food chain. As such, now more than ever, the City must show they are great business partners and eager to see new development within the City. We continue to navigate the challenges the current economic climate presents, including the $20 minimum wage increase. Many restaurant companies seek second-generation restaurant October 24, 2024 Pg. 39
spaces, which are scarce in Avenal. We have already contacted several restaurants offering Avenal as a test ground or pilot program for fast-food chains for a predominantly automated restaurant. Additionally, a substantial portion of fast-food restaurants are franchises. Our team is working on contacting their franchise directors to put Avenal on their radar.

Grant Writing Update:

Since CrisCom began working with the City to help administer grants, a member of our team has been participating in bi-weekly staff meetings at the City Manager's invitation.

As always, our team continues to research numerous grant funding opportunities.

Awarded:
• COPS Hiring Grant - $375,000 (3 officers)
• Patrick Leahy Bulletproof Vest Partnership (BVP) - $6,681.50 Upcoming:
• Beverage Container Recycling City/County Payment Program - Due November 19th
• Per Capita Program - Due December 31st
• T-Mobile Hometown Grant - Due December 31st
Pending:
• Rural and Small Department Violent Crime Reduction Program - Ask: $300,000 • Acquiring and deploying 10 Flock Cameras across critical areas in Avenal to help prevent and solve violent crimes.
• Community-Based Violence Intervention and Prevention Initiative Site-Based - Ask: $2,000,000
• Prevent and reduce violent crime through evidence-based strategies and community partnerships.

Miscellaneous:

The CrisCom Team is working on a few other issues along with the City Manager having to do with Economic Development and a previous grant award. Also, our CEO, Chuck Jelloian recently met with Mayor Preciado, Chief Velasco, and City Manager Lopez to discuss coordination for the budget request. The City would like to expand their Government building to include the Police Department and City Hall within the same building. This endeavor might have some land use issues, which CrisCom will be assisting with.

We will continue to keep the City Manager apprised of all grant opportunities, and another other issues and/or updates relating to the City.

October 24, 2024 Pg. 40
City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
AGENDA ITEM NO. 7. A
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: October 24, 2024
RE: Consider Approving Funding Request for FY 2024/2025 INFORMATION:

In the FY 2024/2025 budget, the City Council approved setting aside $50,000 for the Community Fund, which was established to support non-profit organizations serving Avenal’s community from Measure A funds. This fund has been issued in past years, and normally approved as part of the budget. The City traditionally accepts solicitations from non-profits in good standing, ensuring that their work benefits the wider community.

For the current fiscal year, the City has received four requests from the following organizations:
• Reef-Sunset Unified School District (RSUSD) Education Foundation - $10,000 • Avenal Rotary Club - $14,000
• Avenal Historical Society & Museum - $8,000
• Kings County Commission on Aging - $5,000
The total request amounts to $37,000.

DISCUSSION:

RSUSD Education Foundation – Request: $10,000
The Education Foundation seeks to provide scholarships to at least five high school graduates pursuing higher education ($2,000 each). The requested funds will directly benefit these students, covering educational expenses and helping them advance their academic and professional goals.

Avenal Rotary Club – Request: $14,000
Rotary plays an integral role in community support. They frequently assist residents in need, such as offering facilities for rent during times of tragedy, as well as conducting fundraisers and providing free meals at various events in partnership with the City. Rotary’s monthly food distributions are essential for many local families, and they plan to use the funds to:
• Provide lunches for volunteers,
• Purchase a pallet jack to assist with moving goods during distributions, • Purchase tables and chairs for use by local organizations at events or meetings, • Support Old Timers Day and the Pistachio Festival by securing entertainment and talent for the community.

Avenal Historical Society & Museum – Request: $8,000
The Historical Society & Museum aims to preserve and promote Avenal’s rich history. They plan to use the funds for critical exterior upgrades to the museum building, specifically pieces of stucco that are falling off the wall. Additional funds will be used to promote the museum’s services, raise awareness about its open hours, and support efforts to preserve and display local artifacts. The museum also hopes to sell merchandise, such as t-shirts, to generate further awareness and engagement.

October 24, 2024 Pg. 41
City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
AGENDA ITEM NO. 7. A
Kings County Commission on Aging – Request: $5,000
Historically, the Commission has requested $5,000 annually, but due to the impacts of COVID, they had not submitted a request in recent years. Now, they are requesting the annual donation to continue supporting services for Avenal’s senior community. Staff supports this request, contingent on establishing a new Memorandum of Understanding (MOU) to formalize the use of the Veterans Hall and clarify program rules. Staff is currently working on drafting this agreement and will finalize it in the near future.

Fiscal Impact:

The total funding request of $37,000 is within the allocated $50,000 set aside in the FY 2024/2025 budget for the Community Fund. Approving these requests will leave a remaining balance of $13,000 in the fund for future needs. Pending revenues, this fund could increase to more have more available.

Conclusion:

The funding requested by these organizations directly benefits the Avenal community in various ways, ranging from education support to historical preservation and senior services. These organizations have demonstrated their ongoing commitment to the community, and the requested funds will help them continue their important work. Therefore, staff recommends approval of the funding requests.

RECOMMENDATION:

Approve the funding requests for RSUSD Education Foundation ($10,000), Avenal Rotary Club ($14,000), Avenal Historical Society & Museum ($8,000), and Kings County Commission on Aging ($5,000), for a total of $37,000, from the City Council - Community Fund for FY 2024/2025.

October 24, 2024 Pg. 42
ATTACHMENT “A”

CITY OF AVENAL APPLICATION FORM

REQUEST FOR FUNDING
All information shall be completed, application signed and returned to the City of Avenal no later than May 1st in order for the request to be considered by the Avenal City Council for the next fiscal year budget. Any applications received after that time will be reviewed and considered on a “request by request” basis and will be subject to the minimum funding amount depending on the availability of funds.

NAME OF AGENCY OR ORGANIZATION:

ADDRESS: PHONE NO.

NAME OF CONTACT PERSON/AGENCY REPRESENTATIVE:

PHONE NO. FEDERAL ID#/NON-PROFIT:

EXPLAIN WHO WILL BENEFIT FROM THE REQUESTED FUNDING:

1. Amount you are requesting from the City: $

2. Please state what the total/entire budget amount is for your agency/organization for the current budget year: $

3. What is the projected amount of income/funding that you believe you will obtain from sources other than the City?

4. If the City denies your request for funding, do you have any alternate means to secure the funding? Yes No

5. Any comments or additional information you would like to provide the City regarding this request:

6. The Avenal City Council encourages your organization’s participation in community events and utilization of volunteers to fulfill High School graduation requirements, community service or the desire to make an impact in the community. Please initial that you understand and acknowledge this request.

SIGNATURE OF APPLICANT DATE
RECEIVED BY THE CITY OF AVENAL:

DATE
October 24, 2024 Pg. 43
ATTACHMENT “A”

CITY OF AVENAL APPLICATION FORM

NAME OF AGENCY OR ORGANIZATION:

ADDRESS: PHONE NO.

NAME OF CONTACT PERSON/AGENCY REPRESENTATIVE:

PHONE NO. FEDERAL ID#/NON-PROFIT:

EXPLAIN WHO WILL BENEFIT FROM THE REQUESTED FUNDING:

1. Amount you are requesting from the City: $

2. Please state what the total/entire budget amount is for your agency/organization for the current budget year: $

3. What is the projected amount of income/funding that you believe you will obtain from sources other than the City?

4. If the City denies your request for funding, do you have any alternate means to secure the funding? Yes No

5. Any comments or additional information you would like to provide the City regarding this request:

SIGNATURE OF APPLICANT DATE
RECEIVED BY THE CITY OF AVENAL:

DATE
October 24, 2024 Pg. 44
October 24, 2024 Pg. 45

Page 1 of 2 ends

BEFORE THE CITY COUNCIL OF THE

CITY OF AVENAL
IN THE MATTER OF:

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF AVENAL
APPROVING FUNDING REQUESTS #1

FROM THE COMMUNITY FUND FOR
THE FISCAL YEAR 2024/2025
RESOLUTION 2024-_54_
WHEREAS, the City Council of the City of Avenal approved the allocation of $50,000 from the FY 2024/2025 budget to the Community Fund, intended to support non-profit organizations that provide services and benefits to the Avenal community; and WHEREAS, the City of Avenal traditionally accepts solicitations from non-profit organizations in good standing for funding requests that directly benefit the community; and
WHEREAS, the City has received funding requests from the following non-profit organizations:
• Reef-Sunset Unified School District (RSUSD) Education Foundation - $10,000 • Avenal Rotary Club - $14,000
• Avenal Historical Society & Museum - $8,000
• Kings County Commission on Aging - $5,000
WHEREAS, the total amount requested by these organizations is $37,000, which falls within the $50,000 allocated from the Community Fund for FY 2024/2025; and WHEREAS, the City Council recognizes the invaluable contributions these organizations make to the well-being and development of the Avenal community, and the positive impact these funds will have on their continued service.

UPON MOTION OF COUNCIL MEMBER , SECONDED BY

COUNCIL MEMBER , THE FOLLOWING WAS PASSED,

APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL MEETING HELD ON October 24, 2024, BY THE FOLLOWING VOTE:

October 24, 2024 Pg. 46

Page 2 of 2 ends

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

Alvaro Preciado, Mayor

CITY OF AVENAL
MARIA A. ORTIZ, City Clerk

CITY OF AVENAL
* * * * * * * * * * * * * * * * * *
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL:

1. Finds that the foregoing recitals are true and correct.

2. The City Council hereby approves the following funding allocations for FY 2024/2025 from the Community Fund:
o Reef-Sunset Unified School District (RSUSD) Education Foundation - $10,000
o Avenal Rotary Club - $14,000
o Avenal Historical Society & Museum - $8,000
o Kings County Commission on Aging - $5,000
The total amount of $37,000 is to be disbursed to these organizations, and the remaining $13,000 will be retained in the Community Fund for future allocations.

3. The City Manager is authorized to execute any necessary agreements or documents to implement this resolution.

Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 10. A
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: October 24, 2024
RE: Consider Authorizing the City Manager to Sign an Engagement Agreement with Guaranteed Community Advisors (GCA) for Sustainable Biofuel Project Development in Avenal
INFORMATION:

Since this summer, City Staff, along with the City Planner and the Economic Development team at CrissCom, have been in ongoing discussions with Rainforest Energy and Guaranteed Community Advisors (GCA). Their proposal focuses on exploring the development of a biofuel production facility using local agricultural waste and methane, integrating renewable energy, and leveraging incentives to transform Avenal into a sustainable community. This report outlines the key aspects of the proposal, including the benefits, potential drawbacks, and the financial liabilities the City may face.

Project Overview:

Rainforest Energy and GCA propose exploring the feasibility of a biofuel facility that would utilize local waste resources, methane capture, and advanced sustainability technologies. The project’s goals include generating biofuel and other co-products like propane and hydrogen, creating jobs, and reducing carbon emissions.

Estimate of what the facility is expected to produce:
• 1,461 barrels/day of biofuel output (approx. 19 million gallons/year). • An estimated $250 million in project financing.
• Approximately 40 permanent jobs directly linked to the facility and up to 250 additional jobs through connected ventures.

The financial structure involves securing grants, tax incentives, and third-party funding to cover most of the development costs.

Pros:

1. Environmental and Economic Benefits:
• Reduced greenhouse gas emissions through the capture of methane and production of low-carbon fuels.
• Local job creation and economic stimulation through related ventures. • The opportunity to generate revenue from carbon credits, LCFS credits, and other financial incentives.

October 24, 2024 Pg. 48
City of Avenal
919 Skyline Blvd.

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

2. Energy Independence:
• By utilizing local resources and integrating renewable energy systems (e.g., solar, wind), the project will increase Avenal’s energy independence and sustainability .

3. Cost Recovery via Incentives:
• A significant portion of the project’s cost will be offset by grants, incentives, and other funding sources .

Cons and Considerations:

1. Upfront Costs – Retainer:
• Retainer Fee: GCA requires a retainer to begin their services. For properties under 1 million square feet, which is the scope we foresee for Avenal, the retainer would be $2,500. If the project is deemed financially viable and we choose to proceed, the City would be responsible for 13% of gross incoming awards (e.g., grants, tax incentives) secured by GCA.
• While the retainer is relatively modest, the biggest risk lies in not proceeding with at least 33% of the proposed projects. In that case, the City would be responsible for feasibility and engineering costs which could become a financial burden.

2. Financial Liability:
• If the project is not financially viable, GCA refunds the retainer fee. However, if the City elects not to move forward with at least 33% of the proposed projects, we would be liable for the full feasibility and engineering costs. • Given the scope of the project, these costs could add up, particularly if unforeseen challenges arise during the feasibility study phase.

3. Complexity of the Project:
• This project involves coordinating multiple stakeholders and navigating complex regulatory processes. There may be risks related to delays, technological implementation, or obtaining the necessary permits.

Financial Risk and Mitigation:

The primary financial risk to the City is the retainer fee and the potential for incurring feasibility and engineering costs if the City does not move forward with a significant portion of the project (over 33%). To mitigate this:
• The retainer is refundable if GCA determines that the project is not financially viable. • Staff believes that the City will not need a facility over 1 million square feet, so the retainer will should not exceed $2,500.
• If the City moves forward with at least 33% of GCA’s proposed projects, the feasibility and engineering costs are waived, and GCA’s services would essentially “pay for themselves” through secured incentives and funding.

October 24, 2024 Pg. 49
City of Avenal
919 Skyline Blvd.

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

Given the potential benefits of this project—both environmentally and economically—Staff recommend that the City proceed with the feasibility study phase. This will allow the City to better assess the project’s viability without immediately committing to the full-scale costs.

However, it is important to recognize the financial risk associated with not proceeding with a significant portion of the proposed projects, which could result in feasibility costs becoming the City’s responsibility.

Next Steps:

1. Consider the Engagement Agreement with GCA to formally initiate the partnership and begin their advisory services.

2. Consider the Resolution authorizing the execution of development and incentive documents related to the sustainability project.

3. Work with Rainforest Energy and GCA to conduct a feasibility study and assess the project’s financial viability and potential benefits for Avenal.

Consider Resolution 2024-56.

October 24, 2024 Pg. 50
SUSTAINABLE PROJECT OWNER’S REP

ENGAGEMENT AGREEMENT

ORGANIZATION INFORMATION
Organization Name: EIN/TaxID: ____________
Contact Person(s): _____________________________________________________________ Phone/Email: _________________________________________________________________ Property Address: _____________________________________________________________ Mailing Address (If different than Property Address): _________________________________ Property Owner/ Legal Entity Name: ______________________________________________

ENERGY ADVISORY
As your Owner's Representative, Guaranteed Community Advisors (GCA) will execute a focused strategy on incentives, design, and engineering to advance your energy and sustainability projects. Our holistic process secures and maximizes incentives, ensuring your project capitalizes on financial opportunities. We apply capital stacking techniques to diversify funding sources, enhancing the project's financial foundation. Along with financial strategy, we conduct energy engineering to inform our targeted design and efficiency processes, aiming to improve energy efficiency and sustainability. This methodical approach underscores our commitment to delivering a project that is financially and engineering optimized.

The scope outlined in this Engagement Agreement is intended to provide an initial roadmap for the services, and not an exact plan. The roadmap is subject to alteration as we identify and evaluate the specific service requirements needed.

DELIVERABLES:

As part of your retainer, GCA may deliver:

1. Comprehensive Energy & Sustainability
Strategic Plan

2. On-site Engineering & Evaluation of facility

3. Review of energy conservation measures

4. Cataloging of most energy assets & equipment
October 24, 2024 Pg. 51

5. Analysis of energy maintenance/costs

6. Utility bill analysis and structure

7. “Energy Efficiency” system design &
recommendations

8. “Energy Generation” design & sizing

9. Financial grade energy reporting

10. Incentive processes identified and implemented

11. Holistic executable sustainability plan

12. Enhanced bid processes for projects managed

13. Funding sources identified

14. Project Management through completion of the
agreed upon scope
* Deliverables may vary depending on the final services required.

October 24, 2024 Pg. 52

1. RETAINER ENGAGEMENT
GCA requires a retainer fee to begin our service and is required before the onsite development.

Retainer fees must be paid in advance of the engineering team visiting the site(s).

It is understood that the cost of engineering and developing a holistic energy strategy is significantly more than the cost of the upfront retainer, and that GCA is investing in your project significantly over and above the expense of the retainer fee. Buildings, or properties:

Building or properties require a deposit of $2,500 for every 1,000,000 internal square feet.

Building or properties under 999,999 internal square feet require a deposit of $2,500.

Building or properties over 1,000,000 internal square feet require a deposit of $5,000.

Building or properties over 5,000,000 internal square feet require a deposit of $12,500.

Building or properties over 7,500,000 internal square feet require a deposit of $20,000.

For the avoidance of doubt, areas surrounding the building or property such as parks and open areas are not calculated as part of the building or properties square footage.

Properties that are within a 45-minute drive of each other and are owned by the same organization are considered to be the same project and can use one retainer fee.

If multiple properties are owned and spread out more than a 45-minute drive, a reasonable and mutually agreed additional cost for the retainer fee will be required. (Typical request is direct travel cost to each additional location, if needed airfare and rental car, plus $150/day per person.) Please disclose to GCA that this will be required before signing the agreement.

All retainer fees and expenses are either discounted from a completed Guaranteed Community Advisors project or returned, unless otherwise stated in this Engagement Agreement.

2. PAYMENT STRUCTURE: A PARTNERSHIP APPROACH
At Guaranteed Community Advisors (GCA), our payment structure embodies our commitment to a true partnership with our clients. We invest our expertise and resources upfront, aligning our compensation directly with the value we deliver. Our model is simple yet profoundly aligned with your success: we receive payment only when you, our client, realize tangible value from the incentives, capital stacking, and engineering solutions we implement.

Our fee is structured as a 13% of the gross incoming awards, other grant or non-commercial incentive funding, and sustainability project produced indirectly or directly by the services hereunder. For the avoidance of doubt, any incoming awards and other grant or non-commercial incentive funding received by the client after payment of the retainer will be considered resultant of the services provided by GCA hereunder. This means our remuneration is directly proportional to the project's success and scale, ensuring our goals are intrinsically linked. By GCA investing in the initial stages without immediate compensation, we demonstrate our confidence in the value we bring to your project. Through capital stacking, identifying viable measures, and strategic funding acquisition, we ensure that our payment integrates seamlessly into the project's financial structure. This approach aligns our mission so that GCA services effectively pay for themselves.

October 24, 2024 Pg. 53
By way of example, indirectly produced awards, grants, funding, or revenue includes, but is not limited to, any financial resources generated as a result of capital stacking options described above, and as further detailed below:
a) Grants
b) Tax Incentives
c) Loan Funding
d) Private Investment
e) Energy Savings Lease Programs
f) Green Loan Programs
g) Community Programs/Incentives stemming from infrastructure projects However, these indirectly produced resources do not include awards, grants, funding, or revenue initiated by the client before the payment of the retainer, provided the client gives GCA written notice of such within 30 days of the retainer payment. Additionally, it excludes any financial resources unrelated to energy and sustainability funding not directly attributed to GCA’s services.

This means our compensation is tied directly to the success and scale of your project, ensuring that our goals are fully aligned with yours. By investing our expertise and resources upfront, GCA shows confidence in the value we deliver. Through capital stacking, identifying effective measures, and securing strategic funding, we ensure our payment integrates into the financial structure of the project. In doing so, GCA’s approach aligns our mission so that GCA services effectively pay for themselves.

October 24, 2024 Pg. 54

3. Payment Expectations
As stated in “Retainer Agreement” Section 1 above, GCA will be operating on a minimal retainer fee, while spending significant amounts of time, money, and other capital over and above the retainer fee cost to create the energy strategy for our clients. By operating in this structure, it is important that our clients appreciate the sincere effort to reduce upfront cost to organization by GCA. To that end, all clients are subject to the following payment expectations:

For the purposes of this Engagement Agreement, the following definitions shall apply:
"Financial Viability" means that the proposed measure must be projected to generate net positive cash flows for, at minimum, the lesser of: (i) the expected useful lifespan of the project; or (ii) the net payback period. This financial viability requirement necessitates that the aggregate revenues and positive cash flows produced by the measure, including any applicable incentives, over its entire lifetime, shall be equal to or greater than the total costs and negative cash flows associated with the project over that same period. All financial viability projections are performed and prepared by GCA, and are underwritten by an insurance institution familiar with GCA’s engineering capabilities.
“Feasibility and Engineering Costs” means the market rate of $.18/sq. foot for the financial grade energy audit and reporting delivered.

A. If GCA does NOT show the client a project that is Financially Viable, then GCA is responsible for the costs incurred during the entire engagement. In this circumstance, the client has no responsibility to pay GCA any further fees and GCA will return the retainer.

B. If GCA shows the client a project that is Financially Viable and the client elects to move forward with at least 33% of the overall proposed project outlay, the Feasibility and Engineering costs are completely waived. The client shall pay 13% of the gross incoming awards and other grant or non-commercial incentive funding produced indirectly or directly by the services hereunder, as stated in “Payment Structure” Section 2 above. The retainer shall be applied against such amounts.

C. If GCA shows the client a project that is Financially Viable and the client elects to not move forward with at least 33% of the overall proposed project outlay, then the client shall pay any and all Feasibility and Engineering Costs. The retainer shall be applied against such amounts. In this circumstance, the client may utilize any deliverables provided or created by GCA hereunder, so long as GCA received full payment of the Feasibility and Engineering Costs.

October 24, 2024 Pg. 55
GCA Scope of Work: Transforming Avenal into a Sustainable, Regenerative City Objective:
● Highlight the use of a community’s geographical and natural landscape being used with technology and innovation to unite people and planet.
● Generate financial returns that directly benefit the town, funding sustainable infrastructure development, enhancing local economic resilience and creating an ecosystem of opportunity for connected ventures.
● Utilize agricultural waste and other resources in Avenal, California, to produce biofuel, turning the city into a case study in the U.S. for a community that harnesses regenerative methods for fuel production. Establishing Avenal as a US model for community led regenerative fuel production.
● Integrate a pet welfare program for community benefits and wellness. ● Foster collaborative partnerships with local stakeholders to ensure that the project reflects the community's vision and priorities, leading to shared ownership and decisionmaking.

October 24, 2024 Pg. 56
Phase 1: Feasibility Study and Stakeholder Engagement

1.1 Feasibility Study
● Resource Assessment Energy:
o Evaluate the utility needs and assets of the community, and identify areas of opportunities, needs, and efficiencies
● Resource Assessment Agriculture:
o Conduct a comprehensive study to quantify the volume and types of agricultural and livestock waste produced in and around Avenal, e.g. nut hulls, corn stover, orchard prunings, forest cullings, animal manure.
o Categorize the local sources and volumes of municipal solid waste for potential transformation into energy and other products.
o Evaluate the feasibility of converting these wastes into biofuel and co-products, considering the technology required, potential yields, and environmental impact. o Assess the local supply of methane or other sources of hydrogen for the project. o Evaluate the local opportunities to permanently sequester the carbon dioxide any captured carbon dioxide that is unused or unsold.
● Market Analysis:
o Assess the local and regional market demand for energy and co-products output. o Identify potential buyers, including nearby industries, transportation sectors, and state energy programs.
● Technology Evaluation:
o In collaboration with our technical partner, Rainforest Energy, explore different energy production technologies to determine the best fit for Avenal’s waste profile, e.g. gasification, pyrolysis, chemical catalytic reactions. o Consider the scalability, efficiency, and sustainability of each technology. o Evaluate the major options for carbon dioxide sequestration and/or enhanced oil recovery from carbon dioxide injection.
● Pet Welfare Evaluation:
o In collaboration with our pet welfare partner, Eggo’s Friends, assess the local and regional need for enhancements to spaying/neutering, microchipping, health support, affordable care, and educational programs.
o Quantify the direct and indirect benefits to the community for pet welfare both in the short term and the long term.
● Resource Assessment Holistic Sustainability:
o Analyze the community for a holistic sustainability approach that covers all basic needs, energy, food, water, housing, transportation, communications and joy.

1.2 Stakeholder Engagement
● Partnerships:
o Collaborate with local farmers, agricultural cooperatives, and businesses to secure a steady supply of agricultural waste.
o Partner with educational institutions, such as nearby universities, to bring in expertise and innovation.
● Government and Regulatory Support:

October 24, 2024 Pg. 57
o Engage with local, state, and federal agencies to secure necessary permits and regulatory approvals.
o Identify and apply for grants, tax incentives, and subsidies available for renewable energy projects.
● Community Involvement:
o Host town hall meetings and workshops to inform and engage Avenal residents about the project’s potential benefits.- (Education focused and then bringing in strategic people with a concrete framework.)
o Important to have the touches with major stakeholders: Schools District, local environmental group, and State prison is a large presence (but may not be decision maker) First Nations (Could be a possibility of sharing in the project.) o Establish a community advisory board to ensure local input and ownership throughout the project, seen as helpful once stakeholders are established. There is an active agriculture group and cattlemen’s group.

Phase 2: Project Development and Funding Strategy

2.1 Biofuel Production Facility
● Design and Engineering:
o Through technical partner, Rainforest Energy, develop detailed designs for a biofuel production facility tailored to Avenal’s specific needs. o Ensure the facility is designed for scalability, allowing for future expansion as production demand increases.
o Ensure the facility has the option to be reconfigured to produce hydrogen if a future market demands this product for fuel cell electric vehicles. ● Construction and Commissioning:
o Managed by technical partner, Rainforest Energy, prepare a construction plan for execution when a final investment decision is reached for development. o Rainforest Energy to oversee the construction of the facility with the assistance of an experienced EPC firm, ensuring adherence to timelines, budgets, and sustainability standards.
o An experienced operator to commission the facility and initiate the production ramp-up process to optimize operations.

October 24, 2024 Pg. 58

2.2 Community Investment and Funding
● Special Purpose Entity:
o The biofuel project to be owned by a special purpose entity (SPE). o The SPE is designed to facilitate commercial project financing. o Avenal shall have a carried equity participation in the SPE based on the economic feasibility and potential of the project.
● Community Funding Mechanism:
o Create a community investment fund allowing residents to invest in the biofuel project SPE, ensuring additional local ownership and profit-sharing. o Offer bonds or shares in the biofuel project SPE directly to local accredited investors, providing a financial return to community investors. ● Leveraging Profits for Infrastructure Development:
o Avenal to use its share of distributions from the SPE to fund infrastructure projects such as clean water systems, renewable energy installations (solar, wind), public transportation, and pet welfare programs. o Prioritize projects that enhance the city’s sustainability and resilience, creating a virtuous cycle of reinvestment in the community.

2.3 Financial Structuring
● Capital Stacking:
o Develop a financial strategy that combines public and private funding sources, including grants, loans, tax credits, and other sources. (NTD: took out “community Investments” as it implies that they have to come to the table – publicly or privately, with capital.)
o Engage with impact investors and green bonds to attract capital dedicated to sustainable projects.
● Revenue Streams:
o Diversify revenue streams by selling co-products and reinvesting profits into additional community projects.
o Explore opportunities for carbon credits such as Renewable Identification Number (RIN) credits, Low Carbon Fuel Standard (LCFS) credits, or Renewable Energy Certificates (RECs) to further enhance profitability.

Phase 3: Sustainable Infrastructure and Community Development

3.1 Infrastructure Expansion
● Renewable Energy Integration:
o Install solar panels, wind turbines, and other renewable energy systems to power the biofuel facility and other critical infrastructure. o Install an appropriate-scale waste to energy facility, if warranted. o Install a landfill methane capture system, if warranted. o Create a microgrid to ensure energy resilience and independence for Avenal. ● Water Management:
o Implement sustainable wastewater management practices, including rainwater harvesting and greywater recycling.
o Develop infrastructure to ensure a stable and clean water supply, critical for both the community and biofuel production.
● Sustainable Housing:

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o Design and build eco-friendly housing developments, using local materials and renewable energy.
o Incorporate community gardens and green spaces to enhance the quality of life for residents.
● Pet and People Programs
o Develop partnerships with local and regional organizations to expand or implement free spaying/neutering, microchipping and vaccines to humanely reduce economic costs of pet overpopulation, euthanasias and shelter burden. o Enhance awareness marketing of shelter pets to improve shelter pet perceptions and increase adoptions.
o Provide distribution of a user-friendly app that helps pet parents with medical, nutritional and behavioral support; reducing pet abandonment, surrenders, and costs of pet ownership.
● Internet/Connectivity Expansion
o Identify areas of broadband and internet availability for the community

3.2 Economic and Social Development
● Job Creation:
o Provide training and employment opportunities in biofuel production, facility maintenance, and sustainable agriculture.
o Encourage local entrepreneurship by offering grants and incentives for small businesses that support the city’s sustainability goals. o Advise local entrepreneurs on the feasibility of potential connected ventures to the biofuel facility, e.g. biomass collection and preparation, manure methanation and transportation, LPG bottling and marketing, carbon dioxide bottling and marketing, distilled water processing and marketing, or a connected greenhouse or indoor vertical farm.
● Education and Outreach:
o Partner with schools and universities to develop educational programs focused on renewable energy, sustainability, environmental stewardship, and responsible pet ownership.
o Launch public awareness campaigns to promote sustainable living practices among residents.

3.3 Long-Term Sustainability and Replication
● Monitoring and Evaluation:
o Establish a monitoring system to track the project’s environmental, economic, and social impact.
o Regularly review and adjust strategies to ensure the project’s continued success and sustainability.
● Replication and Scaling:
o Document the project’s process and outcomes to create a blueprint for replication in other communities.

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o Position Avenal as a model for sustainable development, attracting attention and support from policymakers, researchers, and other cities.

Conclusion: Building Avenal’s Sustainable Future
● By harnessing agricultural waste to produce biofuel, Avenal has the potential to become a pioneering city in the U.S., leading the way in regenerative energy and sustainable community development.
● This GCA initiative not only creates a profitable and environmentally friendly industry but also reinvests in the community, building infrastructure that supports long-term resilience, well being and prosperity.
● Avenal can serve as a blueprint for how cities can be built and sustained using their unique resources, creating a self-reliant, thriving community for generations to come.

Scope as Strategic Framework
● The scope of this document serves as a foundational outline for our strategic plan, providing a clear direction for development and continuous improvement. By adhering to this scope, we establish a structured approach to our initiatives, ensuring that we build upon a solid base while remaining adaptable to change.
● We recognize that this scope is a starting point rather than a conclusion. It is anticipated that the plan will undergo numerous updates and modifications, reflecting the dynamic nature of our work and the variability of our needs.
● This strategy is designed to unlock potential opportunities and foster an environment of open communication. It encourages a collaborative pathway that aligns with community desires, facilitating a journey towards realizing shared goals and possibilities.

Andrew Bittner
Founder & CEO
Guaranteed Community Advisors (GCA)
(330) 760-6364 Direct
(614) 344-8364 Office
to schedule a meeting: Andy's Live Calendar Link
[email protected]
gcommunityadvisors.com/
Our mission at Guaranteed Community Advisors (GCA) is to empower communities by lowering the barriers to own the access to their most essential sustainable needs. We are driven by the joy and connection of building meaningful local systems that rarely come out of budget.

We partner with our clients to provide additional resources in strategy, funding, incentives, and engineering so that communities can create their basic needs (such as energy, water, food, housing) as sustainable and regenerative infrastructure without using their own capital.

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SCOPE OF ENGINEERING EVALUATION:

Our focus is to identify savings/valuable measures during engineering/design evaluations as well as communication with your operations, buildings, and staff.

We are open to your needs and wants, as we analyze your opportunities, and will focus on the following potential items for our evaluation:

Energy Efficiency
o LED Lighting
o Lighting Sensors
o Lighting controls
o Load Balancing/Surge Suppression
o Peak/Load Shedding
o Economizers
o Energy Data Monitoring
o HVAC Equipment (RTUs, Chiller)
o Thermostat controls
o Pumps and Compressors
o Refrigerant
o Building Envelope
o Insulation/Thermal Mass
o Smart automation systems
o Refrigeration
o Stadium Lighting
o Window Film
o Light Ventilation and
Sterilization
o Smart Surfaces
o Smart Scoreboards and
billboards
o Natatorium
management and
coverings
o Water Conservation
o Other energy
conservation
measures
Clean Energy Generation
o Solar Energy
o Combined Heat-and-Power
o Energy Storage
o Wind
o Other Renewable Energy
Alternative Fuel Vehicles
o Electric
o Propane
o Natural Gas
o Hydrogen
o Charging
Infrastructure
Water Infrastructure
o Waste Water Treatment
o Water Pollution Control
Waste
o Recycling Programs
o Waste to Energy
Air Quality
o Air Testing
o Air Particulate
o Air Changes
Agriculture
o On-site food production
o Indoor grow facilities
o Landscaping as food

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TRUSTED ADVISORY ROLE
GCA will prepare a holistic strategy, incentives, engineering, planning, and capital stacking to create recommendations for the organization's use and consideration. GCA will prepare and present recommendations to the organization's decision-making body regarding its findings.

To be clear, any recommendations made by GCA in performing the services are advisory only, and do not constitute a guarantee or warranty of any particular outcome. It is GCA’s hope to provide you with the best possible outcome, but it is not possible to guarantee that any service provided by GCA will be successful or will result in useful outcome.

INCENTIVES, GRANTS, FUNDING LEADERSHIP
At Guaranteed Community Advisors (GCA), our approach to incentives is meticulous and strategic, focusing on identifying and securing advantageous financial opportunities for your project. Through a comprehensive analysis, we pinpoint grants, incentives, tax strategies, and other funding sources that align with your sustainability and energy goals. However, it's crucial to understand that while our expertise significantly increases the likelihood of securing these benefits, grants and certain incentives are subject to approval by the funding entities and cannot be guaranteed.

GCA will apply or assist in the application to file the administrative paperwork, and engineering qualifications for incentives. Our commitment is to navigate this complex landscape on your behalf, maximizing your project's financial and environmental potential with a clear understanding of the competitive and regulatory environment.

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COLLABORATIVE PROJECT LEADERSHIP FOR FUNDING GENERATION Guaranteed Community Advisors ("GCA") may serve as the “de facto” or primary developer and decision-making authority for energy generation projects where the client elects to utilize external funding resources and incentives, rather than their own capital. In these instances, the client strategically designates GCA to manage the creation of the capital stack, ensuring a comprehensive financial structure that leverages grants, incentives, tax credits, and other external funding opportunities, allowing GCA to apply for programs and establish site control.

This structure is activated only when the client opts to not use their own capital, and use GCA’s expertise for capital stack creation and strategic funding acquisition, providing the client with a streamlined and professionally managed path to project success without the need for internal capital deployment. Regular progress updates and collaborative discussions ensure that both GCA’s expertise and the client’s goals are harmonized, resulting in a well-funded, sustainable energy generation project.

As the de facto developer, GCA assumes full responsibility for the strategic planning, design, and implementation of the project, including technology selection, engineering design, vendor management, and financial structuring. This ensures the project adheres to established timelines, maximizes external funding opportunities, and meets or exceeds performance and sustainability goals.

While GCA holds decision-making authority as required by financial and construction institutions in this capacity, we maintain a strong collaborative relationship with the client. The client is fully empowered to communicate their specific needs and community priorities throughout the project lifecycle. GCA integrates these inputs into the development process, ensuring that the project aligns with the client’s vision for serving their community.

ADVISORY POLICIES AND PROCEDURES
The following Policies and Procedures are designed to ensure that GCA consistently fulfills its advisory role while maintaining a steadfast focus on delivering value to our clients. These terms are subject to compliance with local laws and regulations and cannot supersede any legal or policy requirements.

Projects will be evaluated by GCA advisors in 4 main stages 1) Master Energy Planning
2) Funding, Incentives and Implementation
3) Energy Feasibility Assessment
4) Design and Enhanced Bidding Process
Bidding Process and Vendors selection will be based on the following:
1) Overall value of the energy measure
2) Experience and references
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3) Ability to deliver in proper timelines and working hours 4) Overall comfort that the savings will be able to be measured and guaranteed 5) Organization recommendation and past/current experience with vendor

PROGRAM UNDERWRITING GUARANTEE
GCA projects are backed by guaranteed energy savings with underwritten guaranteed insurance policies written by institutional grade insurance companies. Any differences in guaranteed energy savings presented in agreement and actual energy savings garnered is paid out in 12- month cycles in a check.

The guarantee applies to energy savings portions of projects only and does not include operational savings or new construction. After adjusting for load and factor variances, comparison of the usage per day between the projection period and the verification period show the effect of the completion of measures implemented. The verification approach used in this report complies with the International Performance Measurement & Verification Protocol, Option C. Any negotiated changes to your utility bills must be confirmed with GCA for the first 3 years of your project before signing to verify impact.

All new equipment installations creating average annual kWh usage of 10,000 kWh or more must be submitted to GCA for filing with insurance coverage to balance usage and cash flow numbers.

JOY AND CONNECTION: Weaving Meaning Into Every Project
At Guaranteed Community Advisors ("GCA"), we believe that joy and connection should be at the heart of everything we do. Every project is not only an opportunity to create sustainable and impactful solutions but also a chance to cultivate meaningful relationships, shared experiences, and a sense of fulfillment for everyone involved. We invite our clients to join us in embracing this philosophy, as we believe that by weaving joy and connection into the process, we create projects that are not only successful but also deeply rewarding.

From the initial planning stages to project completion, we aim to foster a spirit of collaboration, open communication, and mutual respect. Our approach is centered on building strong, authentic relationships, ensuring that each project reflects the unique values and aspirations of the communities we serve. By embracing joy and connection, we create a foundation where innovation thrives, challenges are met with optimism, and solutions are crafted with care.

We ask that our clients share in this vision, contributing to a positive and collaborative environment where joy is a driving force behind every decision, interaction, and milestone.

Together, we can create projects that are not only financially and environmentally sustainable but also leave a lasting legacy of connection and shared success.

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TERMS AND CONDITIONS.

All services by Guaranteed Community Advisors (“GCA”) for its clients (each, a “Client”) pursuant to this Engagement Agreement (“Agreement”) are subject to these terms and conditions (“Terms”). Client’s acceptance of this Agreement and these Terms is made by paying the Retainer (defined herein) identified in this Agreement.

1. Services. During the Term, and following payment of the Retainer, GCA shall provide to Client the advisory services (the “Services”) set out in this Agreement. GCA shall provide the Services (a) in accordance with the terms and subject to the conditions set forth in these Terms and this Agreement; (b) using personnel of required skill, experience, and qualifications; (c) in a timely, workmanlike, and professional manner; and (d) in accordance with generally recognized industry standards in GCA’s field. Notwithstanding the foregoing, Client accepts and understands that this Agreement and the scope outlined herein is intended to provide an initial roadmap for the Services to be performed by GCA and not an exact plan. The Services are subject to alteration as the parties identify and evaluate the specific Service requirements needed hereunder.

2. Fees and Expenses.

2.1 Retainer. Initially, Client will pay to GCA the non-refundable retainer set forth in this Agreement (“Retainer”). Unless otherwise provided in this Agreement, said Retainer must be paid at least one (1) day in advance of GCA’s first site visit. The Retainer is refundable to Client only as set forth in this Agreement. For the avoidance of doubt, provision of the Services is contingent upon Client’s payment of the Retainer in full. GCA shall not be required to order or deliver any Services until Client timely pays the Retainer in full. Payment of the Retainer constitutes acceptance of these Terms.

2.2 Project Fees. In the event GCA shows Client a Financially Viable (as defined in the Engagement Agreement) project and Client elects to move forward with such project, Client shall pay GCA the fees due set out under the “Payment” section of this Agreement (such fees, the “Project Fees”). Payment to GCA of such fees shall constitute payment in full for the performance of the Services, and Client shall not be responsible for paying any other fees, costs, or expenses. If Client is receiving the funds as part of progress payments, Client shall pay GCA in three installments of 50%, 25%, and 25% of the Project Fees owed, in proportion to the disbursement amount received.

The Project Fees will be payable within fourteen (14) days of receipt by Client of the funds. Notwithstanding the foregoing, GCA reserves the right to offer differing installment payment plans, provided Client agrees to such changes in writing.

2.3 Feasibility and Engineering Costs. In the event GCA shows Client a Financially Viable (as defined in the Engagement Agreement) project and Client does not elect to move forward with such project, Client shall pay GCA the Feasibility and Engineering Costs (as defined in the Engagement Agreement) set out under the “Payment” section of the Engagement Agreement. Payment to GCA of the Feasibility and Engineering Costs shall constitute payment in full for the performance of the Services. Unless otherwise provided in this Agreement, the Feasibility and Engineering Costs will be payable within fourteen (14) days of the completed Services or Client’s receipt of an invoice, whichever comes first.

2.4 Tax. Client shall be responsible for all sales, use and excise taxes, and any other similar taxes, duties and charges of any kind imposed by any federal, state or local governmental entity on any amounts payable by Client hereunder; and to the extent GCA is required to pay any such sales, use, excise, or other taxes or other duties or charges, Client shall reimburse GCA in connection with its payment of fees and expenses as set forth in this Section. Notwithstanding the previous sentence, in no event shall Client pay or be responsible for any taxes imposed on, or regarding, GCA’s income, revenues, gross receipts, personnel, or real or personal property or other assets.

2.5 Payment Method. All late payments shall bear interest at the lesser of (a) the rate of 1.5% per month and (b) the highest rate permissible under applicable law, calculated daily and compounded monthly. In addition to all other remedies available under this Agreement or at law (which GCA does not waive by the exercise of any rights hereunder), GCA shall be entitled to suspend the provision of any Services if the Client fails to pay any October 24, 2024 Pg. 66
undisputed amounts when due hereunder and such failure continues for five (5) business days following written notice thereof.

3. Client Cooperation. The Client shall promptly (a) respond to any GCA request to provide direction, information, approvals, authorizations, or decisions that are reasonably necessary GCA to perform Services; (b) cooperate with GCA in its performance of the Services; (c) provide access to Client’s premises, employees, contractors, and equipment as required to enable GCA to provide the Services and inspect the Client’s facilities for confirmation of energy projects or any additional energy consumption or misuse; and (d) timely file any requisite documents, forms, or material as requested or required by GCA in connection with the Services. It is Client’s responsibility to ensure that all equipment, systems, cabling, or facilities provided by Client and used directly or indirectly in the provision of the Service is in good working order and suitable for the purposes for which it is used and conforms to all relevant legal or industry standards or requirements. If GCA’s performance of its obligations under this Agreement is prevented or delayed by any act or omission of Client, or its agents, subcontractors, consultants, or employees, GCA shall not be deemed in breach of its obligations under these Terms or otherwise liable for any costs, charges, or losses sustained or incurred by Client, in each case, to the extent arising directly or indirectly from such prevention or delay.

3.1 For the avoidance of doubt, upon the Client’s payment of the Retainer, the Client is required to submit all incentive programs completed by Guaranteed Community Advisors (“GCA”). This provision serves as a safeguard for both the Client and GCA, ensuring that the Client submits and applies to all incentive programs and grants completed by GCA. Failure to do so limits the Client’s potential benefits and undermines GCA’s efforts and resource allocation. By establishing this requirement, we create an incentive for both parties to fully follow through, maximizing the value of the incentives and ensuring that GCA’s work is effectively utilized. Should the Client fail to submit any incentive program completed by GCA, GCA shall have the right to (a) immediate payment from the Client for the cost of the work performed by GCA in connection with such unsubmitted incentive programs, calculated based on GCA’s hourly rates, currently set at $150 per hour, and (b) retain the Retainer.

4. Intellectual Property. Client is, and shall be, the sole and exclusive owner of all right, title, and interest in and to the documents, work product, and other materials that are delivered to Client hereunder or prepared by or on behalf of Impower.ai in the course of performing the Services (“Deliverables”), including all intellectual property rights therein. Notwithstanding the foregoing, GCA is, and shall remain, the sole and exclusive owners of all right, title, and interest in and to any and all proprietary systems, methodologies, tools, products, programs, processes, models, materials, worksheets, concepts, ideas, designs, business methods, templates, and development tools (“Background IP”), including all intellectual property rights therein, which is provided by or used by GCA in connection with performing the Services, in each case developed or acquired by GCA prior to the commencement or independently of these Terms. Background IP shall further include any skills, ideas, concepts, know-how, expertise and methodologies or rights thereto, whether preexisting or hereafter developed, that GCA or any GCA representatives learn, obtain, use, develop or create in rendering the Services for or providing the Services and Deliverables to Client, insofar as the same are of a type used generally in GCA’s business. GCA hereby grants Client a limited, irrevocable, perpetual, fully paid-up, royalty-free, non-transferable, non-sublicensable license to make use of its Background IP to the extent incorporated in, combined with or otherwise necessary for the use of the Deliverables solely to the extent reasonably required in connection with Client’s receipt or use of the Services and Deliverables. All other rights in and to the Background IP are expressly reserved by Impower.ai.

5. Client Materials. Client has and will retain sole responsibility for all information, data and other content, in any form or medium, that is tendered, submitted, transferred, transmitted, or otherwise provided or made available by or on behalf of Client to GCA for GCA’s use in connection with the Services (the “Client Material”), including the accuracy, quality and integrity of such Client Material. Client agrees to notify GCA immediately in writing if any of the Client Material that is the basis of GCA proposals becomes inaccurate or misleading in any respect. This includes items such as run times of energy consumption, new equipment, or HVAC setpoints. Any and all Client Material submitted to GCA by Client shall remain the sole property of Client during and after the Term of this Agreement. GCA shall use the Client Material submitted by Client for the sole purpose of performing its obligations under this Agreement.

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6. Confidentiality. Either party (the “Disclosing Party”) may, directly or indirectly, disclose to the other party (the “Receiving Party”) certain confidential and proprietary information relating to its business, in written, oral, or electronic form (collectively, the “Confidential Material”). The Receiving Party shall: (x) protect and safeguard the confidentiality of the Disclosing Party’s Confidential Material with at least the same degree of care as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable degree of care; (y) not use the Disclosing Party's Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise its rights or perform its obligations under these Terms; and (z) not disclose any such Confidential Information to any person or entity, except to the Receiving Party's group who need to know the Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under these Terms (collectively, “Agents”). The term “Confidential Material” shall also include any and all information which contains or otherwise reflects or is derived, directly or indirectly, therefrom, as well as any and all notes, analyses, compilations, studies or other documents prepared by the Receiving Party, and its Agents contain or otherwise reflect or are derived, directly or indirectly, from such information. The term “Confidential Material” shall not include any and all information which (i) is or becomes generally available to the public other than as a result of a disclosure by the Receiving Party or its Agents, (ii) is or becomes available to the Receiving Party on an unrestricted basis prior to its disclosure by the Disclosing Party, provided that such source is not known to the Receiving Party to be bound by a confidentiality agreement or obligation with or to the Disclosing Party, (iii) was independently developed by Receiving Party or its Agents without reference to the Disclosing Party’s Confidential Material, or (iv) is prepared by the Disclosing Party or Receiving Party and is considered public record under applicable law. If a party becomes legally compelled to disclose any Confidential Material of the Disclosing, the Receiving Party shall provide prompt written notice of such requirement (to the extent it may legally do so) so that the Disclosing Party may seek, at its sole cost and expense, a protective order or other remedy. If, after providing such notice and assistance as required herein, the Receiving Party remains required by law to disclose any Confidential Information, the Receiving Party shall disclose no more than that portion of the Confidential Information which, on the advice of the Receiving Party’s legal counsel, the Receiving Party is legally required to disclose. This Section shall survive any termination of this Agreement for a period of five (5) years from the date of this Agreement. With respect to any Confidential Material that constitutes “trade secret” under applicable law, the obligations of confidentiality and restrictions on use and disclosure of such Confidential Material shall survive for so long as such information retains its protection as a trade secret under such law. Upon the Disclosing Party’s request, the Receiving Party shall promptly return all documents and other materials received from the Disclosing Party. The Disclosing Party shall be entitled to injunctive relief for any violation of this Section.

7. Term; Termination.

7.1 Term. These Terms shall commence as of the Effective Date and shall continue thereafter until the completion of the Services unless sooner terminated pursuant to this Section 7 (the “Term”).

7.2 Mutual. Either party may terminate these Terms, effective upon written notice to the other party (the “Defaulting Party”), if the Defaulting Party: (a) materially breaches these Terms, and such breach is incapable of cure, or with respect to a material breach capable of cure, the Defaulting Party does not cure such breach within thirty (30) days after receipt of written notice of such breach; (b) becomes insolvent or admits its inability to pay its debts generally as they become due; (c) becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency law, which is not fully stayed within seven (7) business days or is not dismissed or vacated within forty-five (45) days after filing; (d) is dissolved or liquidated or takes any corporate action for such purpose; (e) makes a general assignment for the benefit of creditors; or (f) has a receiver, trustee, custodian, or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business.

8. Effect of Expiration or Termination. Upon expiration of these Terms, each party shall promptly: (a) return to the other any property, equipment, or materials which is owned by the other in its possession or control; (b) deliver to the other all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other’s Confidential Material; (c) permanently erase all of Confidential Material of the other from its computer systems; and (d) certify in writing to Client that it has complied with the requirements of this Section.

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9. Disclaimer. Not all GCA personnel utilized by GCA to perform the Services are licensed engineers. GCA makes no representations or warranties, express or implied, in respect of the Services to be provided by it hereunder. Any recommendations made by GCA in performing the Services are advisory only, and do not constitute a guarantee or warranty of any particular outcome. Client acknowledges that it is not possible to guarantee that any Service will be successful or will result in useful outcome.

10.Third-Party Consultant and Vendor Selection. Client may choose to select and collaborate on the project with service providers, contractors, vendors, or bidders (“Third Parties”) following Client standards of selection including but not limited to local law. However, selections that are not GCA recommended may have an impact on the success of the project and may affect the underwriting of the guaranteed insurance policy. GCA reserves the right to remove the portions of the project from a GCA energy guarantee in which underwriting may not be covered. For the avoidance of doubt, GCA may be compensated by any contractors or bidders that request assistance to data or information reflecting the engineering, design, administration, project management, incentives and other responsibilities that may be done in coordination with the Third Parties as part of the project.

11.Third-Party Consultants for Design. In the event that the Client wishes, requests, or requires Guaranteed Community Advisors ("GCA") to coordinate or collaborate with any consultant or vendor selected, engaged, or hired by the Client ("Client Vendors") for the purposes of the initial feasibility design phase of the project, such Client Vendors must be disclosed to GCA no later than four (4) weeks following GCA's initial onsite facility evaluation. For the avoidance of doubt, the term "Client Vendor" shall refer exclusively to consultants and vendors who are directly selected, engaged, and retained by the Client, and shall not include any consultant or vendor engaged, brought on, or retained by GCA.

12.Financing. Financing for GCA projects is provided through multiple programs and mechanisms to identify a valuable solution based on requirements and measures implemented. GCA makes no profit on financing. Client authorizes GCA and any GCA approved financing lenders or energy lending programs to make inquiries to verify the accuracy of the statements made and to GCA in order to determine Client’s creditworthiness (including, but not limited to, regular and investigative reports, credit reports, financial statements and other documents submitted by Client in connection with this Agreement). Client understands that this Agreement does not constitute a commitment on part of GCA or its finance lenders to extend credit. Not all energy programs or funding will qualify for off balance sheet financing, or non-debt obligations. Client may also use their own funding sources; provided, Client must disclose all finance information directly to the GCA and comply to industry standards.

13.Independent Contractor. It is understood and acknowledged that in providing the Services, GCA acts in the capacity of an independent contractor and not as an employee or agent of the Client. GCA shall control the conditions, time, details, and means by which GCA performs the Services. GCA shall have the right to inspect the work of GCA as it progresses solely for the purpose of determining whether the work is completed according to these Terms. GCA has no authority to commit, act for or on behalf of Client, or to bind Client to any obligation or liability. GCA shall not be eligible for and shall not receive any employee benefits from Client and shall be solely responsible for the payment of all taxes, FICA, federal and state unemployment insurance contributions, state disability premiums, and all similar taxes and fees relating to the fees earned by GCA hereunder.

14.Limited Liability. To the extent permitted by law, neither GCA nor any of its officers, directors, managers, principals, stockholders, partners, members, employees, agents, representatives, and affiliates (each a “Related Party” and, collectively, the “Related Parties”) shall be liable to Client for any loss, liability, damage, or expense arising out of or in connection with the performance of any Services contemplated by this Agreement, unless such loss, liability, damage, or expense shall be proven to result directly from the willful misconduct of such person. To the extent permitted by law, in no event will the GCA or any of its Related Parties be liable to Client for special, indirect, punitive, or consequential damages, including, without limitation, loss of profits or lost business, even if GCA has been advised of the possibility of such damages. To the extent permitted by law, under no circumstances will the liability of GCA and its Related Parties exceed, in the aggregate, the fees actually paid to the Service Provider hereunder.

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15.Compliance with Law. Each party is in compliance with and shall comply with all applicable laws, regulations, and ordinances. Each party has and shall maintain in effect all the licenses, permissions, authorizations, consents, and permits that it needs to carry out its obligations under these Terms.

16.Books and Records and Audit. In connection with his performance of the Services, each party shall maintain complete and accurate books, time-sheets, records, correspondence, instructions, plans, expenses back-up documentation, and detailed descriptions pertaining to the Services performed (the “Records”). Each party shall, at all reasonable times during, and for a period of one (1) year following the completion or termination of these Terms, have access to such Records.

17.Assignment. Neither party shall assign any rights or delegate or subcontract any obligations under these Terms without the other’s prior written consent. Any assignment in violation of the foregoing shall be deemed null and void. Subject to the limits on assignment stated above, these Terms will inure to the benefit of, be binding on, and be enforceable against each of the parties hereto and their respective successors and assigns.

18.Remedies. Each party acknowledges that any breach or threatened breach of his covenants contained in these Terms hereof could cause the other material and irreparable damage, the exact amount of which shall be difficult to ascertain and that the remedies at law for any such breach or threatened breach will be inadequate.

Accordingly, each party agrees, in addition to all other available rights and remedies (including but not limited to, seeking such damages), that other party shall be entitled to specific performance and injunctive relief in respect to any breach or threatened breach of any covenants contained herein, without being required to prove inadequacy of the available remedies at law or irreparable harm.

19.Publicity. Upon completion of the project, GCA may issue or release announcements, statements, or other publicity or marketing materials relating to the project without the prior written consent of the Client, but solely on or in connection with the promotion, advertising, and resale of GCA’s Services. Notwithstanding the foregoing, Client agrees to allow GCA to place signage at the site during construction or project implementation.

20.Entire Agreement. These terms, this Agreement, and any documents incorporated specifically by reference, represent the entire agreement between the parties and supersede all prior oral or written statements or agreements. These Terms may only be amended by written amendments duly executed by the parties hereto.

21.Governing Law. These Terms and all matters relating hereto are governed by, and construed in accordance with, the laws of the state in which the Client is domiciled, without regard to the conflict of laws provisions of such State.

22.Further Assurances. Each of the parties hereto shall use reasonable efforts to, from time to time at the request of the other party, without any additional consideration, furnish the other party such further information or assurances, execute and deliver such additional documents, instruments, and conveyances, and take such other actions and do such other things, as may be reasonably necessary to carry out the provisions of these Terms and give effect to the transactions contemplated hereby.

23.Notices. Each party shall deliver all communications in writing either in person, by certified or registered mail, return receipt requested and postage prepaid, by email (with confirmation of transmission), or by recognized overnight courier service, and addressed to the other party at the addresses each party may designate from time to time in accordance with this Section.

24. Severability. If any term or provision of these Terms are invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of these Terms or invalidate or render unenforceable such term or provision in any other jurisdiction.

25. Counterparts. These Terms may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of these Terms delivered by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of these Terms.

26. Survival. Any right or obligation of the parties in this Agreement which, by its nature, should survive termination or expiration of this Agreement, will survive any such termination or expiration of this Agreement.

October 24, 2024 Pg. 70

27. Force Majeure. No party shall be liable or responsible to the other party, or be deemed to have defaulted under or breached these Terms, for any failure or delay in fulfilling or performing any term of these Terms, when and to the extent such party’s (the “Impacted Party”) failure or delay is caused by or results from the following force majeure events (“Force Majeure Event(s)”): (a) acts of God; (b) flood, fire, earthquake, pandemics, or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order, law, or action; (e) embargoes or blockades in effect on or after the date of these Terms; (f) national or regional emergency; (g) strikes, labor stoppages or slowdowns or other industrial disturbances; and (h) other similar events beyond the reasonable control of the Impacted Party. The Impacted Party shall give notice within five (5) days of the Force Majeure Event to the other party, stating the period of time the occurrence is expected to continue. The Impacted Party shall use diligent efforts to end the failure or delay and ensure the effects of such Force Majeure Event are minimized. The Impacted Party shall resume the performance of its obligations as soon as reasonably practicable after the removal of the cause. In the event that the Impacted Party’s failure or delay remains uncured for a period of thirty (30) days following written notice given by it under this Section, the other party may thereafter terminate these Terms upon ten (10) days’ written notice.

By signing below, the organization listed on the first page of this Engagement Agreement hereby consents to, and agrees to be bound by, the services and obligations outlined in this Engagement Agreement, including the Terms and Conditions contained therein.

Organization Name: ________________________________________________ Representative Printed Name Title
Representative Signature Date
October 24, 2024 Pg. 71

Page 1 of 3 ends

BEFORE THE CITY COUNCIL OF THE

CITY OF AVENAL
IN THE MATTER OF:

A RESOLUTION OF THE CITY OF AVENAL

AUTHORIZING THE EXECUTION AND

DELIVERY OF DEVELOPMENT AND

INCENTIVE DOCUMENTS WITH RESPECT TO

DESIGNING AND IMPLEMENTING AN

INCENTIVE DRIVEN HOLISTIC

SUSTAINABILITY AND GENERATION

PROJECT AND ENERGY EQUIPMENT OR
CAPITAL ITEMS FOR THE PUBLIC BENEFIT;

AUTHORIZING THE EXECUTION AND

DELIVERY OF DOCUMENTS REQUIRED IN
CONNECTION THEREWITH; AND

AUTHORIZING ALL OTHER ACTIONS

NECESSARY TO THE CONSUMMATION OF

THE TRANSACTIONS CONTEMPLATED BY

THIS RESOLUTION
RESOLUTION 2024-_5__
WHEREAS, the city of Avenal (referred to as “COA”), a body politic and corporate duly organized and existing as a political subdivision of the state of California is authorized by the laws of the state of California to enter into agreements or contracts or as necessary lease personal property for the benefit of energy savings and energy incentives with respect thereto; and
WHEREAS, COA desires to further the advisory professional services of Guaranteed Community Advisors (GCA) for the purpose of identifying an incentive driven sustainability project; and
WHEREAS, the advisory services, including feasibility studies, project design, engineering, grant writing, compliance, administrative assistance, community communication, and other project related services will be paid for by the incentives of the project itself and not come out of existing budget; and WHEREAS, the funds to build and develop any energy efficiency project will be provided by incentive programs, grants, loan programs, and/or a third-party funding resources; and
WHEREAS, the funds to build and develop any energy generation project will be provided by a third-party including incentive programs, grants, and other funding mechanisms to cover the entire cost of the energy generation development and installation; and
October 24, 2024 Pg. 72

Page 2 of 3 ends

WHEREAS, the goal of the holistic project will be to empower the community by lowering the barriers to own and enjoy access to our most essential sustainable needs as meaningful local systems. Specifically designed to achieve results including: reduce cost of current energy and operational expenses, improve the learning environment, increase the resiliency and stability of the electric infrastructure and be stewards in the community of sustainability; and
WHEREAS, the energy savings and operations savings will cover the entire annual cost of the energy efficiency infrastructure upgrades and installation; and WHEREAS, the governing body of the COA deems it for the benefit of COA and for the efficient and effective administration thereof to enter into the Development Documents consisting of: Incentive Documents, Utility Request Documents, Funding Documents, Bidding Documents, Permitting Documents, Cost Recovery Documents, and any other documentation necessary, convenient or appropriate for the purpose of progressing development of the project.

NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF COA AS FOLLOWS:

UPON MOTION OF COUNCIL MEMBER , SECONDED BY

COUNCIL MEMBER , THE FOLLOWING WAS PASSED,

APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL MEETING HELD ON October 24, 2024, BY THE FOLLOWING VOTE:
* * * * * * * * * * * * * * * * * *
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL:

1. Finds that the foregoing recitals are true and correct.

Section 1. The Development Documents as described above and/or in the GCA engagement agreement under the terms and conditions are hereby approved. Any officer of the COA is authorized to execute, acknowledge and deliver the Development Documents and any and all incentives, documents and certificates which may be required by or provided for in the Development Documents or as may otherwise be required for or necessary, convenient or appropriate to the development described in this resolution together with any changes, insertions and omissions therein as may be approved by the officers who execute the Development Documents, such approval to be conclusively evidenced by such execution and delivery of the Development Documents.

Section 2. The proper officers of the COA, and each of them hereby is, authorized and directed to execute and deliver any and all papers, incentives, opinions, certificates, affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper for carrying out this resolution and the Development Documents.

October 24, 2024 Pg. 73

Page 3 of 3 ends

Section 3. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution.

Section 4. All bylaws, orders and resolutions or parts thereof, inconsistent herewith, are hereby repealed to the extent only of such inconsistency.

This repealed shall not be construed as reviving any bylaw, order, resolution or ordinance or part thereof.

Section 5. This resolution shall take effect immediately.

2. Authorizes the City Manager, City Clerk, and all relevant City staff to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper, and/or convenient and/or incidental thereto. * * * * * * * * * * * * * * * * * *
October 24, 2024 Pg. 74
1 proposed logo
Opportunity Presentation To
October 24, 2024 Pg. 75
2 proposed logo
Community Partnership Circle

GUARANTEED

COMMUNITY

ADVISORS
Eggo’s Friends
October 24, 2024 Pg. 76

ORGANIC WASTE
+ METHANE
= CLEAN FUEL
October 24, 2024 Pg. 77
LPG (Propane) Gasoline
CO2 Removed:

Ø Commercial Use
Ø Geological Storage
How It Works
Est. USD $218 million installed capital outlay
4 Logging Slash Straw Hemp Residue
Biomass
Gasification
(No Incineration
Air Emissions)
Natural
Gas or
Bio
Methane
Methane
Reforming
Synthesis
Gas
Syngas
Cleanup
Chemical
Catalytic
Stages
CoProducts:
v Power
vWater
v Heat
Waste Biomass
Plus
Other
Biomass
Options
11,800,000
Litres/Year
(3,118,000 USG)
73,600,000
Litres/Year
(19,285,000 USG)
150,000 MT per year 7.2 MMScf/d
Commercially Demonstrated Equipment Only
Super-Major
Oil Company
Offtake LOI
Signed
1,461 barrels/day
total output
~150,000
MT/year
CO2
Blue Hydrogen
Amendment
Possible
proposed logo
Can operate on 100% methane
feedstock if no biomass available.

October 24, 2024 Pg. 78
Hemp Plant
Oil Extraction
Sustainable
Logging
Sustainable
Farming
Hemp
Residue
Logging
Slash
Surplus
Straw
Methane
or Bio
Methane
(Manure)
All-Year Greenhouse
Land-Based Fish Farm
Low-Cost Power
Residual Heat
Agri Water
Biogenic CO2
Bio-Facility
Feedstocks
LPG
(Propane)
CO2 / LPG
Distribution
Agri-Ventures
Bio-Facility
Co-Products
40 Permanent
New Jobs
Related
Ventures:

Extra +250
Operations
New Jobs
Bio-Facility
(10 acres)
US$250
Million
project
finance
Feedstock Supply &
Preparation Venture
Connected Ventures
(Independent Operations)
Skills Training + Career Development Program 73% Trades >50% Trades Community Circular Economy
proposed logo
5 Local
Sources
CH4
October 24, 2024 Pg. 79
Opportunity
Hemp Circular Economy
(8% of King’s County)
(Hemp assumptions: https://docs.lib.purdue.edu/cgi/viewcontent.cgi?article=1054&context=jafe)

63.7 million lbs grain
273,000 ST fiber
70,000 Acres Farmland
Hemp Summer Crop
(Dual Grain-Fiber)
Grain: 910 pounds/acre
Fiber: 3.9 short tons/acre
Sell
Process
Hemp Oil
CBD Oil
Off-Spec
Process
Residue
CBD Oil
Hempcrete
Bio-Facility
Low-GHG
Gasoline
& LPG
(Propane)

22.4 million USG
Advantages:
ü Drip irrigation to
reduce water use
ü Guaranteed sales
ü No unsold material
ü Value-added price
ü Avoids hemp
market volatility 6
October 24, 2024 Pg. 80
Opportunity
Biomass Feedstock
Avenal Area:
(Kings, Tulare,
Fresno Counties)
Agricultural Residue County
Mature - Medium Scenario Kings Tulare Fresno Combined
Dry Short Tons / Year 228,056 665,898 666,177 1,560,131 Square Miles 1,391 4,824 5,958 12,173
Dry ST / Square Mile 164 138 112 128
Billions Btu / Year 3,600 11,000 12,000 26,600
Dry Metric Tons / Year 206,891 604,099 604,352 1,415,342 RFEC Bio-Facility Use 73% 25% 25% 11%
Medium Scenario – Ag Residue
USD $50 - $70 / dry short ton price
Dry ST / Square Mile
Southern
California
Conclusion:
ü Sufficient local
agricultural residue to
supply a bio-facility
7 October 24, 2024 Pg. 81
Opportunity
Natural Gas Feedstock
Avenal is connected to
the SoCalGas pipeline
network which delivers
2,057 MMscf/day at
about 80% annual
capacity. In 2022,
California imported
98% of total natural
gas supply. Slow
decline in overall
demand forecast
during the foreseeable
future.
(Source: https://www.socalgasenvoy.com/Public/ViewExternalCapacity.getCapacity) 8 October 24, 2024 Pg. 82
Opportunity
Manure Methane Feedstock
Typical Bio-Digestion:

One USG of liquid manure
(8% solids) = 2.5 cubic feet
of bio-methane = 3 cubic feet
bio-methane per lb. of solids
(Sources: https://www.nass.usda.gov/Statistics_by_State/California/Publications/County_Estimates/2022/CATCNTYE2022.pdf https://www150.statcan.gc.ca/n1/pub/16-002-x/2008004/article/10751-eng.htm# https://www.extension.purdue.edu/extmedia/ae/ae105.html#:~:text=A%20gallon%20of%20liquid%20manure,in%20a%20properly%2Doperating%20digester.) Typical Livestock:

Heifers = 53 lbs/day manure
= 159 cf/day bio-methane
Calves = 26 lbs/day manure
= 72 cf/day bio-methane
Typical Bio-Digester Schematic
(Source: Purdue University)
Bio-Methane Resource County
2022 Data Kings Tulare Fresno Combined
Beef Cows 4,200 72,000 16,200 92,400
Milk Cows 170,000 490,000 98,000 758,000
Calves 150,800 498,000 260,800 909,600
All Cattle & Calves 325,000 1,060,000 375,000 1,760,000 Short Tons/Day Manure 6,577 21,367 6,417 34,360
Mcf/Day Bio-Methane 39,460 128,202 38,500 206,162
RFEC Bio-Facility Use 18% 6% 19% 3%
9 October 24, 2024 Pg. 83
Opportunity
Carbon Capture & Storage Geology
(Source: https://ww2.arb.ca.gov/sites/default/files/2021-10/EFI-Stanford-sp22-electricity-ws-11-02-21.pdf) Avenal
10 October 24, 2024 Pg. 84
Opportunity
Carbon Capture & Storage / Enhanced Oil Recovery
Avenal
11 Kettleman North Dome CO2 EOR:
ü Temblor formation for CO2 enhancement
ü Light oil (36o API) = premium to WTI price
ü 7,000 feet depth of target formation
ü 1,400 MMbbls original oil in place (OOIP)
ü 31.3% recovery factor from 1929-2005 (407
MMbbls) / 891 MMbbls remaining oil in place
ü Each 1% incremental recovery of OOIP
produces 14 MMbls x $80/bbl = $1.1 billion
ü CO2 produced with new oil is re-injected
ü EOR oil would be among the lowest GHG
Sources: https://www.sciencedirect.com scores for North American crude oil /science/article/abs/pii/S1750583622000019 https://www.netl.doe.gov/sites/default/files/2021-03/Cal.pdf https://en.wikipedia.org/wiki/Kettleman_North_Dome_Oil_Field#/media/File:KettlemanNorthDome.jpg Kettleman North Dome CO2 Storage:
ü 66 - 147.5 million metric tons potential for
permanent storage
ü Capacity for 440 – 980 years of annual
RFEC bio-facility output (150,000 MT)
ü CO2 injection has 50-year safe history
October 24, 2024 Pg. 85
* ACTL levelized cost based on current operations of 1.8 million tonnes/year CO2 injection or 12% of maximum capacity. ** Proposed Capital Power / Genesee Project operating costs are internal estimates net of carbon nanotube revenues at USD $5.00/Kg. * Capital outlays are amortized over 20 years with an imbedded 10% weighted average cost of capital (60% debt, 40% equity financing). ** ACTL levelized cost based on current operations of 1.8 million tonnes/year CO2 injection or 12% of maximum capacity. *** Proposed Capital Power / Genesee Project operating costs are internal estimates net of carbon nanotube revenues at USD $5.00/Kg.

RAINFOREST

ON-SITE CCS

ALBERTA CARBON
TRUNK LINE *

AIR PRODUCTS

TEXAS EOR

CAPITAL POWER
GENESEE **

SHELL CANADA
QUEST

SASKPOWER

BOUNDARY DAM

PETRA NOVA / NRG

TEXAS EOR
ANNUAL OPERATING COSTS $2.03 $23.34 $14.35 $17.31 $30.78 $63.07 $81.99 20-YEAR LEVELIZED CAPEX $0.42 $13.14 $27.63 $38.33 $32.60 $40.19 $35.12 $0
$10
$20
$30
$40
$50
$60
$70
$80

TOTAL UNIT CCS C
2022 CDN / MT C

RAINFOREST

ON-SITE CCS

ALBERTA CARBON
TRUNK LINE **

AIR PRODUCTS

TEXAS EOR

CAPITAL POWER
GENESEE ***

SHELL CANADA
QUEST

SASKPOWER

BOUNDARY DAM

PETRA NOVA / NRG

TEXAS EOR
OPERATING COSTS $2.03 $23.34 $14.35 $17.31 $30.78 $63.07 $81.99 LEVELIZED CAPEX * $1.19 $31.09 $78.81 $90.05 $85.89 $108.60 $93.85 $0
$25
$50
$75
$100
$125
$150
$175

TOTAL UNIT CCS COST
2022 CDN / MT CO2

CARBON CAPTURE & STORAGE - TOTAL UNIT COST
LEVELIZED CAPEX * OPERATING COSTS
CCS Hub Opportunity
12 q Small volumes and on-site injection allow Rainforest to be a low-cost CCS hub. q Attached new ventures to benefit from competitive CCS tariff vs. mega-projects. q Local CCS service can economically proceed now without ITC or other subsidies. q Local CCS micro-hub is compatible with the Government’s major hub strategy.

GASOLINE
$54
$93
$107
$116
$172 $175
CCS Mega-Projects = High Cost
~$3
Micro-CCS
= Low Cost
CCS
(Carbon Capture & Storage)
ITC
(Investment Tax Credit)
October 24, 2024 Pg. 86
Opportunity
Transportation Logistics
Class 1 Railroads:

UP = Union Pacific
BNSF = Burlington Northern
Santa Fe
Avenal to:
§ Angiola (BNSF railyard)
53 miles, 58 minutes
§ Los Angeles (Marathon
refinery and fuel blend point)
207 miles, 3 hr 17 min
§ San Francisco (Chevron
refinery and fuel blend point)
205 miles, 3 hr 0 min
(Source: BNSF)
Avenal
13 October 24, 2024 Pg. 87
Opportunity
Low Carbon Fuel Standard Markets
B.C. LCFS
CDN $457/MT
USD $336/MT
($3.81/USG)

CA LCFS
USD $45/MT
($0.51/USG)

OR LCFS
USD $71/MT
($0.81/USG) Canadian LCFS
CDN $170/MT by 2030
USD $125/MT by 2030
($1.41/USG by 2030)
U.S. D3 RIN Credits
USD $3.05/USG
One RFEC bio-facility could generate incremental annual revenue of between USD $45 million (U.S. RIN credits only) to USD $52 million (CA LCFS included). (Source: S&P Global)
14 October 24, 2024 Pg. 88
Team Facility Experience
(Managed $10 billion of petroleum and renewable energy assets) C$240 million Enhanced
Oil Recovery Project and
Technology Development
Crude Oil & Natural Gas Production in Canada, United States and International of +100,000 Barrels-Oil-Equivalent Per Day Collective Experience (1.5 billion USG/year)
USG = U.S. Gallon
(3.78541 Litres)

17.4 million USG/year
Biodiesel Facility
+3 billion USG/year
Processing Facility
230 million USG/year
Crude Oil Asphalt Plant
rainforest
Energy
147
15 Peter Lafontaine
Corporate Director
& Chair
Proud Metis
tech geek
who fosters
great
connections.

Jeff Arsenych
Corporate Director
& Co-Chair
Believes you
cannot truly
be green
unless you
make green.

Shondell Sabad CFA
Corporate Director & CEO
Purpose is
a driving
force for
successful
businesses.

Khaled Saleh P.Eng., PMP
Corporate Director
Edmonton Oilers
hockey team fan
and a practical
engineer who
recognizes no
thinking box.

John D. Wright P.Eng., CFA
Corporate Director
A force of
nature in the
energy
sector.

Konstantin Starkov
COO/VP – Engineering
& Construction
Incarnation of
“Scotty” from
Star Trek. An
excellent
problem solver.

Travis Goldfeldt
CFA
Chief Financial Officer
Speaks the
language of
institutional
equity
investors.

Jacques Huot
Project & Infrastructure
Finance Advisor
Indigenous
Pipe Carrier
who enabled
project
financing
Worldwide.

October 24, 2024 Pg. 89
16 proposed logo
Thank You!
October 24, 2024 Pg. 90
City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
AGENDA ITEM NO. 10. B
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: October 24, 2024
RE: Consider Amending the City of Avenal Purchasing Policy Regarding Purchasing and Reimbursement for Used Equipment or Online Marketplace Items BACKGROUND:

City staff recommends the approval of an amendment to the City’s Purchasing Policy that will formalize and document existing practices of purchasing used or lightly used equipment through non-traditional channels such as online marketplaces. The amendment will ensure all transactions are properly documented and remain compliant with City procurement policies, helping to continue acquiring necessary equipment in a timely and cost-effective manner.

INFORMATION:

The City of Avenal’s current Purchasing Policy was adopted on November 10, 2022, under Resolution No. 2022-59. Since that time, the City has occasionally needed to procure essential equipment and supplies through non-traditional means when normal procurement channels were not feasible. Examples of items purchased include projectors, a trencher, a heat press, and other equipment that has proven highly beneficial to City operations.

Currently, the policy does not explicitly allow for these types of purchases, creating potential challenges in ensuring compliance with City procedures. However, these purchases have allowed the City to acquire high-quality, lightly used equipment at a fraction of the cost of new items, and have enabled the City to avoid delays in projects where timely acquisition was critical.

Discussion:

The proposed amendment will codify an existing practice that has benefited the City in many ways. It will allow the City Manager and employees to make purchases outside of normal procurement processes, when necessary, through sources such as online marketplaces or individual sellers, ensuring:
• Cost savings on equipment that is lightly used and does not require significant maintenance.
• The ability to avoid costly rental fees or delays in acquiring equipment needed for City projects and services.
• Enhanced flexibility in procurement without sacrificing accountability or documentation.

To maintain transparency and proper documentation, the amendment will require that all purchases made through these non-traditional channels be fully documented, with receipts, screenshots of listings, or other relevant transaction proof. Additionally, all purchases exceeding $5,000 will require approval from the Director of Administrative Services or Finance Manager, and all reimbursements to the City Manager will require dual sign-off from the City Clerk and Director of Administrative Services.

October 24, 2024 Pg. 91
City of Avenal
919 Skyline Blvd.

Avenal, CA 93204
Phone: (559) 386-5766
AGENDA ITEM NO. 10. B
Fiscal Impact:

The amendment will not require any additional allocation of funds but will instead provide flexibility in utilizing existing budgeted funds more efficiently. By allowing purchases from nontraditional sources, the City will continue to benefit from cost savings and timely acquisition of essential equipment.

Amending the Purchasing Policy to allow for purchases outside of normal channels will provide the City with greater flexibility in procurement, help reduce costs, and ensure that all transactions are fully documented and compliant with the City’s financial procedures. Staff recommends that the City Council approve the proposed amendment.

RECOMMENDATION:

Approve the amendment to the City of Avenal Purchasing Policy to include provisions for purchasing from online marketplaces or individual sellers, as outlined – Resolution 2024-56.

October 24, 2024 Pg. 92

Page 1 of 2 ends

BEFORE THE CITY COUNCIL OF THE

CITY OF AVENAL
IN THE MATTER OF:

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF AVENAL
ADOPTING REVISION #2 OF THE

AVENAL PURCHASING MANUAL

AMENDING THE PURCHASING

POLICY TO INCLUDE

REIMBURSEMENTS FOR PURCHASES

MADE OUTSIDE OF NORMAL

PROCUREMENT CHANNELS
RESOLUTION 2024-_56_
WHEREAS, the City of Avenal is organized and dictated per the City of Avenal Municipal Code, which is amended from time to time; and WHEREAS, Title 3 of the Avenal Municipal Code primarily focuses on Finance; and
WHEREAS, to ensure the smooth and proper operation of the City’s finances and to provide clarity for City staff, the City has compiled and expanded on Title 3 of the Municipal Code through the Avenal Purchasing Manual; and WHEREAS, Revision 1 of the Avenal Purchasing Manual was adopted by the City Council on November 10, 2022, through Resolution No. 2022-59, which included necessary updates to the purchasing process but is not a final and complete document; and
WHEREAS, since the adoption of Revision 1, the City has occasionally procured essential equipment through non-traditional procurement channels, such as online marketplaces and individual sellers, when normal procurement methods were not feasible; and
WHEREAS, the City wishes to formalize this practice by amending the Purchasing Policy to allow for reimbursement of purchases made outside of normal procurement channels, provided that proper documentation is submitted and procurement guidelines are followed;
WHEREAS, further revisions to the Avenal Purchasing Manual are planned and will be presented to the City Council, with the goal of adopting a final and complete document into the Avenal Municipal Code; and
October 24, 2024 Pg. 93

Page 2 of 2 ends

UPON MOTION OF COUNCIL MEMBER , SECONDED BY

COUNCIL MEMBER , THE FOLLOWING WAS PASSED,

APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL MEETING HELD ON October 24, 2024, BY THE FOLLOWING VOTE:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

Alvaro Preciado, Mayor

CITY OF AVENAL
MARIA A. ORTIZ, City Clerk

CITY OF AVENAL
* * * * * * * * * * * * * * * * * *
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL:

1. Finds that the foregoing recitals are true and correct.

2. The City Council of the City of Avenal hereby adopts Revision 2 of the Avenal Purchasing Manual and directs staff to continue working on a final more complete version of the Purchasing Manuel and adopting necessary amendments to the Avenal Municipal Code.

3. Authorizes the City Manager, City Clerk, and all relevant City staff to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper, and/or convenient and/or incidental thereto. * * * * * * * * * * * * * * * * * *
October 24, 2024 Pg. 94
Consider Amending the City of Avenal Purchasing Policy Regarding Reimbursements (Resolution 2024-56)
Create Section XVIII – Reimbursements
The purpose of this section is to provide general guidelines for the reimbursement of outof-pocket expenses incurred by City of Avenal employees for the purchase of equipment and supplies necessary for official city business. All reimbursements must comply with procurement guidelines and be properly documented. These guidelines may be further clarified, and amounts amended as needed, by written memo from the City Manager or the Director of Administrative Services and further finalized and approved by the City Council.

1. General guidelines
a. Pre-approval Requirement
Employees must obtain written pre-approval from their department head or authorized supervisor before making any out-of-pocket purchases. All purchases must be compliant with city policy, budgeted for, and necessary for city business.
b. Use of Normal Procurement Channels
Whenever feasible, employees are required to use proper channels such as:
i. City Issued Procurement Cards (Cal Cards).
ii. The City’s normal Purchasing Process
iii. Pre-approved vendors on the Vendor List
c. Eligible Expenses
Reimbursements will only be issued for expenses that:
i. Are directly related to the employee’s official city duties ii. Have been approved in advance by the department head or supervisor.
iii. Are within the scope of the employee’s responsibilities and align with city needs.
d. Non-Reimbursable Expenses
The following expenses will NOT be reimbursed:
i. Personal or non-work-related items
ii. Unapproved Purchases
iii. Equipment or supplies not essential to the employee’s duties and city business
iv. Purchases that exceed approved budgeted amounts without proper authorization
v. Purchases that were feasible with proper channels
vi. Fines incurred while operating a city vehicle
vii. Unauthorized flight upgrades, accommodations, etc. viii. Expenses for spouses that accompany employees on business trips

2. Reimbursement Process
a. Employees must submit a Reimbursement Request Form within 30 days of the purchase. The form must have the following attached:
i. Original itemized receipts for all purchases. Ideally, employees should take a picture or scan the receipt immediately after October 24, 2024 Pg. 95
Consider Amending the City of Avenal Purchasing Policy Regarding Reimbursements (Resolution 2024-56)
purchase. Original itemized receipts are required for all purchases. If original receipts are unavailable, employees must provide transaction documentation, such as photographs of the purchased item, screenshots of the listing (if applicable), the transaction agreement, and/or proof of payment.
ii. A detailed explanation of the expense and why it was necessary for city business
iii. Justification as to why normal procurement channels were not feasible
b. Reimbursements must be approved by the employee’s direct supervisor or department head. The supervisor or department heal will confirm:
i. The purchase was necessary for official city business. ii. The expense was preapproved or justified as necessary in an emergency
c. A final review will be conducted by the Finance Department to ensure compliance with city policy and verify that the requests includes necessary documents

3. Payment and Processing
a. Reimbursements will be processed within 30 days of submission. Any Reimbursements requests received without proper documentation and approval records may be delayed or denied.
b. Payment Method
Reimbursements will be issued via check

4. Emergency Purchases
a. Definition of Emergency Purchases
i. An emergency purchase refers to the acquisition of goods or services that is necessary to address an urgent and unforeseen situation that poses an immediate threat to:

1. The health and safety of the public or City employees.

2. The protection of public property.

3. The continuation of essential City services, including but not limited to public works, utilities, law enforcement, and emergency response.
ii. Emergency purchases are warranted when normal procurement methods cannot be followed due to the urgency of the situation, and any delay in acquiring the necessary goods or services would result in significant harm, hazard, or interruption of vital City operations.
b. Emergency Purchase Limits
Emergency purchases that exceed $500 require additional review and approval by the City Manager or Administrative Director before reimbursement can be processed.

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5. Reimbursements to the City Manager
a. The City Manager, being the purchasing officer, is authorized to make purchases related to city business.
b. If normal procurement methods are not feasible, the City Manager may make out-of-pocket purchases up to $5,000.
c. For purchases above $5,000, the Director of Administrative Services or Finance Manager must approve the reasonableness of the purchase. d. Reimbursements to the City Manager, regardless of the amount, require sign-off from both the City Clerk and the Director of Administrative Services to ensure proper documentation.
e. The City Manager may make purchases outside of normal procurement channels, including but not limited to used equipment from online marketplaces or individual sellers, provided that proper documentation (such as receipts, screenshots of the listing, or proof of transaction) is submitted.
f. These purchases should be lightly used items that do not require major maintenance and will be utilized to avoid renting equipment or hiring services that may not be available at a reasonable price.

6. Violations and Exceptions
a. Policy Violations
Failure to comply with this policy, including making unapproved purchases or failing to provide proper documentation, may result in denial of reimbursement and could lead to disciplinary action. b. Exceptions
Any exceptions to this policy must be approved in writing by the City Manager or Administrative Director.

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City of Avenal
Purchasing Manual
REVISION 1, NOVEMBER 2022
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I. Statement of Policy
General Policy Statement - All Purchases
This Manual presents the City of Avenal’s (herein referred to as the “City”) required purchasing process to assure uniformity of purchasing procedures as well as compliance with State and Federal Statutes and rules governing purchasing and the expenditure of public funds. Centralization of purchasing functions is key to an effective requisition and purchase order system, as well as control of public funds. Thus:

A. Only the Purchasing Agent can initiate and conduct solicitations for informal quotations for the purchase of necessary goods and services. Strict adherence to this requirement will be enforced. Failure to adhere to these procedures will result in disciplinary action including possible termination.

B. All vendors are to initially contact the Finance Department directly regarding all requests for purchases and clarification thereof. The Finance Department shall be available for clarification of specifications or existing contracts. The Finance Department shall inform vendors on how to conduct business with the City.

VENDORS: DO NOT MAKE INITIAL CONTACT WITH USING DEPARTMENTS.

C. No individual, group or user agency has the authority to legally and/or financially commit the City to any contract, agreement or purchase order for goods or services.

D. All user agencies are required to adhere to the purchasing procedures in requisitioning all goods and services.

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II. Table of Contents
Section I – Statement of Policy
Section II – Table of Contents
Section III – Definitions
Section IV – Methods of Purchasing
Section V – Procurement Process
Section VI – Agreements
Section VII- Professional Services
Section VIII – Exemptions from Centralized Purchasing
Section IX – Requisitions
Section X – Purchase Order
Section XI – Blanket Purchase Order
Section XII – Advance Payment
Section XIII – Emergency Procedures
Section XIV – Contracts
Section XV – Professional Services
Section XVI – Approved Vendors
Sectoin XVII - Memberships
Federal Grant Procurement Standards
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III. Definitions
Purchasing Officer.

The Purchasing Officer shall be the City Manager or a person appointed by the City Manager as his or her designated representative. The Purchasing Officer may delegate duties to other employees.

The duties of Purchasing Officer may be combined with those of any other office or position. The Purchasing Officer shall have authority to:
(a) Purchase and contract for all supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the Purchasing Officer shall adopt, and such other rules and regulations as shall be prescribed by the City Manager;
(b) Negotiate and recommend execution of contracts for the purchase of supplies and equipment; (c) Act to procure for the City the needed quality in supplies and equipment at least expense to the City;
(d) Discourage collusive bidding and endeavor to obtain as full and open competition as possibleon all purchases;
(e) Prepare and recommend rules governing purchasing, maintaining an inventory, and warehousing of supplies and equipment of the City;
(f) Keep informed of current developments in the fields of purchasing, prices, market conditions and new products;
(g) Prescribe and maintain such forms as are reasonably necessary to the operation of this chapterand other rules and regulations;
(h) Be responsible for the inspection of all supplies and equipment purchased to insure conformance with specifications, and, where necessary, to require chemical and physical tests of samples submitted with bids and samples of deliveries to determine their quality and conformance with specifications;
(i) Recommend the transfer of surplus or unused supplies and equipment between City departments as needed and the sale or other disposition of all supplies and equipment which cannot be used by any using agency or which have become obsolete or otherwise unsuitable for City use;
(j) Maintain a bidders' list, vendors catalog file and records needed for the efficient operation of thepurchasing division;
(k) Perform such other duties and functions as may be
necessary.(Ord. 92-03 (part), 1992)
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IV. Methods of Purchasing
(a) Procurement
All purchases, with a small number of exceptions, shall be made through the purchase order process via the Core Financials system. Any purchases over $25,001 shall be competitively bid with all records of quotes provided to Finance. Council will approve any purchases over $25,001 amount, while any other acquisition under $25,000 will be approved by the purchasing officer or designee. Additionally, all Supporting Documents, such as invoices, receipts, packing slips, must be submitted (b) Sole Sources
In the event that the purchase process cannot be used, or it would hinder timely acquisition of required materials or services, sole source justification can be submitted to the purchasing officer. The purchasing officer can approve justification for a procurement of up to $25,000, otherwise council approval is required.

Any department requesting the use of a blanket purchase order in excess of $25,001 must get approval from council.

For personal services, departments may procure personal services one time or on an annual basis, as long they do not exceed $25,000, without a competitive process and with the Purchasing Officers approval. Requests over $25,001 must be approved by council.

In the event approval by council is required, the sole source request must be submitted to Finance beforehand. Forms are available at the office. Approvals are valid for the fiscal year in which they were submitted.
(c) Estimates of Requirements
All using agencies shall file detailed estimates of their requirements in supplies and equipment in such manner, at such time, and for such future periods as the Purchasing Officer shall prescribe. (Ord. 92-03 (part), 1992)
(d) Funding of Purchases
The Purchasing Officer or designee shall not authorize or issue a written contract or payment warrant for supplies or equipment unless there exists sufficient unencumbered appropriation in the fund account against which the purchase is to be charged. (e) Cal Card Procedures

1. Finance administers the Cal Card Program for the City. Except as prohibited by Section C.2.c below, Cal Cards may be used to make authorized purchases at any establishment that accepts credit cards. The merchant is responsible for obtaining authorization from the issuing bank for the transaction.

Those transactions exceeding the single, daily, or monthly transaction limit, or that are for nonqualified purchases will not be processed. Department heads are responsible for the proper use of the Cal Cards issued to employees and for insuring compliance with the policies and procedures provided in this October 24, 2024 Pg. 102
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section. Violation(s) (one or more) of this Policy shall result in the revocation of the offender’s card, at the discretion of the Purchasing Officer.

2. The department head may request the Purchasing Officer to set up a department employee for the issuance of a CalCard and specify the approved Authorization Parameters. Finance will complete the issuing bank Cal Card Cardholder Set-Up/Change Request form for each employee authorized by the department head to be issued a card. Issuing bank will forward the cards to the Purchasing Division.

Finance will forward the Cal Card and a Cal Card Acknowledgement Statement to the department head and/or designated employee. The Cal Card Acknowledgement Statement must be signed by both the department head, or his/her designee, and employee to certify receipt of card and understanding of the Cal Card program. The signed Cal Card Acknowledgement Statement must be returned to Finance. a. Lost Or Stolen Cal Cards.

Departments should promptly report lost or stolen cards to the issuing bank, which will immediately cancel the card and arrange for a new card to be issued. Any unauthorized charges incurred prior to notifying issuing bank are the responsibility of the department, not to exceed $50 in accordance with the Issuing bank Cal Card Agreement. b. Cal Card Cancellation.

When a cardholder leaves City employment or the department head rescinds the employee's authorization, it is the responsibility of the department to promptly destroy the card(s) and contact Finance with a brief written explanation for cancellation. The department is responsible for any charges incurred after an employee leaves City employment if a request for cancellation has not been made.
c. Cal Card Restrictions.

Single transaction levels cannot exceed amounts (typically $500) set by the Finance and agreed upon by the Purchasing Officer – these amounts will be created individually based on job position and needs. Cal Cards shall not be used for any personal property items (office supplies or equipment, repair parts, equipment, capital assets etc., except as allowed in section “d” below), cash advances, personal or professional services, purchases from foreign countries, or items with an associated contract or under a price agreement. Also, Cal Cards may not be used for non-corporation vendors that may require 1099-MISC reporting at year end. d. Authorized Purchases Using Cal Card.

Cal Cards may be used for postage and post office box rentals, utilities, permits and fees, memberships, subscriptions, publications, seminars, training and technical materials (audio or video/cd/dvd), travel expenses (in accordance with the City’s Travel Policy), certain professional services where confidentiality may be an issue (drug testing, child abuse exams, etc), emergency procurement or payments where the normal purchasing procedure is not feasible, and generally any payment under $100 authorized by the department head. Card holders are strongly encouraged to use the purchase order process for all purchases. Additional, Cal Cards may be used for personal property items and professional services provided the card holder has gone through proper Purchase Order procedures and received approval. e. Supporting Documentation.

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Approved purchases will require the employee's (cardholder's) signature verifying the items purchased, correct pricing and sales tax (when applicable). All charges must be supported by a sales draft. If the sales draft does not contain sufficient description to properly identify the items purchased, a detailed receipt or other supporting documentation by the merchant should be attached to the sales draft. Sales drafts and receipts are to be maintained by the department for three years from the date of purchase for audit purposes and are considered public documents. The copy of the sales draft and any supporting receipts are used by the department to verify and reconcile the charges on the monthly statement from issuing bank and are to be submitted to the Department of Finance with the request for payment. f. Cal Card Purchase Payments.

At the close of each billing cycle, departments will receive a Statement of Account, which is the official invoice on which the Department of Finance will make payment.

Departments must review the Statement of Account for accuracy and verify that each charge is supported by a sales draft. The Statement of Account and the Cal Card Certification signed by an authorized department employee are forwarded to the Department of Finance no later than fifteen (15) days from date of the statement. Habitually late statements may result in loss of card privileges. The Department of Finance will pay all charges as listed on the Statement of Account. If a department discovers an invalid charge on their Statement of Account, they must first contact the vendor and attempt to have the charge reversed. If unsuccessful, cardholders must complete a Statement of Questioned Item Form and submit it to the Department of Finance. The form will be forwarded to Issuing bank for their review. g. Unauthorized Cal Card Use.

Employees that misuse their Cal Cards will lose all card privileges and may be subject to disciplinary actions. Cal Cards shall only be used by the employee to whom the card was issued.

Any misuse will be reported to the department head by the Department of Finance during the auditing process.
h. Records and Receipts
Employees must retain a copy of all purchases, first by taking a picture or scanning the receipt immediately after purchase and submit copies of corresponding receipts to the Finance department at the end of each month – the employee must keep all records and receipts of their purchases for a minimum of three years.
i. Missing Records of Receipts
Any missing records and receipts must be supplemented by a memo explaining the expense and why the record or receipt is missing. Employees that cannot account for two or more receipts from their Cal Cards in a fiscal year will lose all card privileges and may be subject to disciplinary actions.

V. Formal Bids
Unless Section 3-8.12 is applicable, the purchase of supplies and equipment shall be by open marketprocedures pursuant to Section 3-8.13. Formal bidding procedures required pursuant to Section 3-8.12 may be dispensed with only:

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(a) When the City Manager finds that such supplies or equipment are unique because of their quality, durability, availability, or fitness for a particular use and are available from only one source; or
(b) When an emergency, as determined by the City Manager, requires that the purchase becompleted within a period of time which will not permit normal bidding or quotation procedures; or
(c) When there is a breakdown in essential machinery or in an essential service, or when unforeseen circumstances arise including delays by contractors, delays in transportation, and unanticipated volume of work which requires the immediate attention of a professional or immediate service/repair in order to protect the public health, safety or welfare; or (d) When an essential operation affecting the preservation of life or property, public health, safetyor welfare would be greatly hampered if the prescribed procedure would cause an undue delay in the procurement of the needed services or materials; or (e) When the City has contracted with another governmental entity to purchase particular supplies or equipment on a cooperative basis; or
(f) When the City Manager determines that due to the nature of the supplies or equipment, formal bidding is not likely to result in the lowest price. (Ord. 92-03 (part), 1992)
VI. Informal Bids
Procurement Process
VII. Open Market Procedures
Purchases of supplies and equipment of an estimated value in an amount less than twenty-five thousand dollars ($25,000.00) but greater than five thousand dollars ($5,000.00) may, upon receipt and approval of a purchase requisition executed by a department manager, be made by the Purchasing Officer in the open market without observing the formal bidding procedures prescribed by Section 3-

8.12. (a) Minimum number of quotations. Open market purchases shall, wherever practicable, be based on at least three (3) quotations and shall be awarded to the lowest responsible vendor, except as otherwise provided herein.
(b) Inviting quotations. The Purchasing Officer may solicit quotations by written requests to prospective vendors, by telephone or by public notice posted on a public bulletin board in the Avenal City Hall, or by any other means deemed effective. (c) Quotations. Sealed, written quotations shall be submitted to the Purchasing Officer, who shall keep a record of all open market quotations and contracts for a period of two (2) years after submission of quotations or the execution of contracts. This record, while kept, shall be open to public inspection, except that vendor proprietary data shall not be open to public inspection.
(Ord. 92-03 (part), 1992
VIII. Exemptions from Centralized Purchasing
The Municipal Code Title 3 Finance Chapter 8 Section 3 grants the Purchasing officer the authority to make all purchases on behalf of the city. Additionally, the Purchasing Officer has the authority to designate and delegate specialized purchasing duties. All authorizations of any using agencies must be done in writing, and each using agency is required to submit periodic reports to Finance. The following is a brief list of designations
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List of Positions with Specialized Purchasing Duties, include but not limited to:

1. Public Works

2. Utilities – The Utilities Department Head and his/her designee shall be assigned purchasing responsibilities

3. Police

4. Information Technology
IX. Requisitions
Requests for items and services to the Purchasing Officer be submitted via Core Financials. All Quotes, terms, delivery dates, shipping charges, and any other relevant information to be submitted at the time of request. Advise the Purchasing Officer if you are unable to secure quotes.

X. Purchase Order
Purchase Orders will be issued to department heads. A Purchase order must include the selected vendor, the Compressed account code of the expenditure account, the items ordered, price, quantity, delivery location and the quote/contract transaction when provided.

XI. Blanket Purchase Orders
To request a blanket purchase order, submit a requisition stating the items or service to be provided, the requested vendor, the duration, price agreement number when applicable, the anticipated amount of funds required, and a detailed justification. The Department of Finance will encumber the funds when the blanket purchase order is issued. Blanket purchase orders are subject to the same purchase requirements.

XII. Advance Payment
In the event that advance payment is required (memberships, rentals, training, technical materials, etc.), these payments may be made with a CAL Card or by submitting a Disbursement Request Form, along with supporting documentation, to the Purchasing Officer for approval.

Payment warrants will be mailed to the vendors unless otherwise requested.

XIII. Emergency Procedures
With regard to public works purchases, if there is a great public calamity, such as an extraordinary fire, flood, storm, epidemic, or other disaster, or if it is necessary to do emergency work to prepare for national or local defense, the City Council may pass a resolution by a four-fifths (4/5) vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health or property. Upon adoption of the resolution, it may expend any sum required in the emergency without complying with the provisions of this chapter as they apply to such public works purchases.
(Ord. 92-03 (part), 1992)
XIV. Contracts
Purchases of supplies and equipment shall be made by contract, which may include a purchase order.

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(Ord. 92-03 (part), 1992)
XV. Professional Services
Any procurement of a professional service shall be made through the Purchase Order Process (Bidding) with few exceptions. Any required services over $xxxx, shall be competitively bid with all records of quotes and process submitted to Finance. Any services requested that do not exceed $XXXX, shall go through an informal bid with supporting documents submitted to Finance. If the dollar amount of the service is less than $xxxx, the Purchasing officer may approve the purchase. If the service exceeds $xxxx, the City Council’s approval is required.

XVI. Approved Vendors
Purchases may only be made from approved vendors. Once a vendor has been approved, they will be added to the Vendor Catalog. In order to add a vendor to the list, a Current W-9 form must be submitted to Finance along with any relevant Purchase Order Process Documentation.

In the event that a W-9 is not available, advise the Purchasing Officer.

XVII. Memberships
Memberships/subscriptions will need Justification, via a form, submitted to the Purchasing Officer for review. Once approval for the justification has been granted, the membership/subscription must go through the appropriate Purchasing Process.

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City Council/Successor Agency/Public Finance AuthorityOctober 24, 2024

City Council/Successor Agency/Public Finance Authority
October 24, 2024