Ceres City Council
March 23, 2026

AGENDA
AMENDMENT #1
Dated: March 20, 2026

CITY COUNCIL REGULAR MEETING

CITY OF CERES, CALIFORNIA

City Council Chambers, 2701 Fourth Street
Monday, March 23, 2026, at 6:00 p.m.

Mailing Address: Ceres City Hall, 2220 Magnolia Street, Ceres, CA 95307-3292 Phone: (209) 538-5700 Fax: (209) 538-5780

CALL TO ORDER

Mayor Lopez

ROLL CALL

Mayor: Javier Lopez
Vice Mayor: Daniel A. Martinez (District 4)
Councilmembers: James Casey (District 1); Rosalinda L. Vierra (District 2); Cerina Otero (District 3)

INVOCATION

Invocation by Tim Giannosa, Valley Grace Church.

Click this link to join the webinar:
https://us02web.zoom.us/j/82938539043?pwd=1jEBkL4JeHvSUMg4J0POfsGHeUUIw0.1

Webinar ID: 829 3853 9043; Passcode: 655957; or Dial: (669) 900-6833

REMOTE PUBLIC COMMENT IS AVAILABLE FOR THE CITY COUNCIL MEETING BY EMAILING THE CITY CLERK AT [email protected] BEFORE 4:00 PM THE DAY OF THE MEETING.

INCLUDE THE AGENDA ITEM NUMBER OR PUBLIC COMMENT PERIOD IN THE SUBJECT LINE OF THE EMAIL. THE CLERK MAY READ WRITTEN COMMENTS INTO THE RECORD, IF SPECIFICALLY REQUESTED TO DO SO AT THE BEGINNING OF YOUR EMAIL. YOUR WRITTEN

COMMENT WILL BE DISTRIBUTED TO THE CITY COUNCIL AND KEPT ON FILE AS PART OF THE OFFICIAL RECORD OF THE COUNCIL MEETING.

If you have any questions on how to attend virtually or are encountering difficulties connecting to the meeting, please contact the City Clerk at [email protected].

AGENDA
Regular City Council Meeting
March 23, 2026

PLEDGE OF ALLEGIANCE

Pledge of Allegiance led by Lexi Farinha, Virginia Parks Elementary School.

PRESENTATIONS

None

CITIZEN COMMUNICATIONS to the Council on matters not included on the agenda (five minutes).

While the City Council welcomes and encourages participation in City Council meetings, adopted rules allow no more than 5 minutes (Resolution No. 2007-106) for expression of non-agenda items. Matters under the jurisdiction of the City Council, and not on the posted agenda, may be addressed by the general public; however, California law prohibits the City Council from taking action on any matter which is not on the posted agenda unless it is determined to be an emergency by the City Council. Citizens are entitled to address the City Council on any agenda item subject to the 5-minute provision.

CONFLICT OF INTEREST DECLARATION

APPOINTMENTS TO BOARDS/COMMISSIONS

None

CONSENT CALENDAR
All matters listed on the consent calendar are considered routine in nature and will be enacted by a single motion unless otherwise requested by an individual Councilmember or public for special consideration.

Otherwise, the recommendation of staff will be accepted and acted upon by roll call vote.

1. Clerks Report of Posting. The agenda of the March 23, 2026, City Council Meeting was Posted on Wednesday, March 18, 2026. (City Clerk)

2. Waive Readings. All Readings of Ordinances and Resolutions are Waived. (Waive readings in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title). (City Clerk)

3. Approval of Minutes for the March 9, 2026 , Regular City Council Meeting. (City Clerk)

4. Register of Audited Demand(s) Dated February 25, 2026, through March 11, 2026. (Portillo)

5. Resolution No. 2026 -XXX, Approving a Professional Services Agreement with Goodwin Consulting Group in the Amount of $55,000 for Consulting Services to Establish Community Facilities District No. 4 and Authoriz ing the City Manager to Execute the Agreement. (Beltran)
AGENDA
Regular City Council Meeting
March 23, 2026

6. Resolution No. 2026 -XXX, Approving Amendment No. 1 to the Agreement with Schneider Electric Buildings Americas, Inc. in an Amount Not to Exceed $4,988,067 for Turnkey Design and Construction Energy Services, Authorizing the Construction of a 995 -Kilowatt Solar Photovoltaic System at the City of Ceres Wast ewater Treatment Plant, and Authorizing the City Manager to Execute the Amendment. (Beltran)

7. Resolution No. 2026-XXX, Approving a Three-Year Service Agreement with Jay's Tires for Upfitting Police Department Vehicles and Authorizing the City Manager to Execute the Agreement. (Johnson)

8. Resolution No. 2026 -XXX, Approving a Budget Amendment in the Amount of $45,427.88 for Fiscal Year 2025 -26 to Appropriate COPS (SLESF) Funds to Add Command Boxes and Upgraded Police Radios to the Two Watch Commander Police Vehicles. (Johnson)

CONSIDERATION OF ITEM(S) REMOVED FROM THE CONSENT CALENDAR

UNFINISHED BUSINESS

None

PUBLIC HEARING

9. Ordinance No. 2026-XXXX, An Ordinance of the City Council of the City Council of the City of Ceres Amending Chapter 10, Tobacco and Smoke Shop Restrictions, to Title 6, Health and Sanitation, of the Ceres Municipal Code. (Johnson) *This public hearing is being continued to the April 13, 2026, Regular City Council Meeting.

10. Ordinance No. 2026-XXXX, An Ordinance of the City Council of the City of Ceres Amending Title 5, Business Licenses and Regulation, Chapter 20, Fireworks Sales of the Ceres Municipal Code. (Johnson)

11a. Ordinance No. 2026-XXXX, An Ordinance of the City Council of the City of Ceres Amending Title 5, Business Licenses and Regulations, Chapter 3, General Permit Procedure, Section 010, General and Title 5, Business Licenses and Regulation, Chapter 22, Cannabis Pilot Program, of the Ceres Municipal Code. (City Attorney)

11b. Ordinance No. 2026 -XXXX, A Zoning Ordinance Text Amendment of the City Council of the City of Ceres Adding Chapter 43, Cannabis Conditional Use Permits, to Title 18, Zoning, and Amending Sections 18.02.010, 18.13.020,

18.16.040, 18.17.040, 18.18.040, 18.19.040, and 18.20.040, of Title 18, Zoning, of the Ceres Municipal Code. (City Attorney)

AGENDA
Regular City Council Meeting
March 23, 2026

12. Resolution No. 2026 -XXX, Approving Cannabis Business Tax Rates. (City Attorney)

NEW BUSINESS

None

DISCUSSION ITEMS

13. Official Bonding of City Treasurer and Addition of Vice Mayor to Bonding Coverage. (Portillo)

COUNCILMEMBER REFERRALS
Councilmembers request to have an agenda item placed on a future agenda (pursuant to Chapter 2 - City Council Meetings, J-8. City Council Referrals/Determination of Items for Agenda).

14. Create Ad-Hoc Committee for Christmas Tree Lane that Includes Christmas Tree Lane Residents
(Requested by Councilmember Otero at the December 8, 2025, Regular City Council Meeting).

REPORTS
At this time, any Councilmembers or City staff will make an announcement, or report briefly on his /her activities.

• Mayor
• City Council
• City Manager
• City Attorney
• Departments

CLOSED SESSION

15. Conference with Legal Counsel – Anticipated Litigation , Significant Exposure to Litigation Pursuant to Cal. Gov’t Code §54956.9(d)(2)
“For the purposes of this section, litigation shall be considered pending when any of the following circumstances exist… A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency.” Potential Case: 2 cases

16. Conference with Labor Negotiators, Cal Gov’t Code §54957.6(a) “Notwithstanding any other provision of law, a legislative body of a local agency may hold closed sessions with the local agency’s designated representatives regarding the salaries, salary schedules, or compensation paid in the form of fringe benefits of its represented and unrepresented employees, and, for represented employees, any other matter within the statutorily provided scope of representation.”
AGENDA
Regular City Council Meeting
March 23, 2026

Agency Designated Representative: City Manager, Douglas D. Dunford and Human Resources Director, Delilah Vasquez
Employee Organization: Laborers’ International Union of North America (LiUNA!)

17. Liability Claims, Cal. Gov. Code §54956.95
“For the purposes of Section 54956.9, ‘existing facts and circumstances’ shall consist only of one of the following: The receip t of a claim pursuant to the Government Claims Act (Division 3.6 (commencing with Section 810) of Title 1 of the Government Code) or some other written communication from a potential plaintiff threatening litigation, which claim or communication shall be available for public inspection pursuant to Section 54957.5.” Claimant: Ronald Smith
Agency Claimed Against: City of Ceres

18. Conference with Real Property Negotiators, Cal Gov’t Code §54956.8 “Notwithstanding any other provisions of this chapter, a legislative body of a local agency may hold a closed session with its negotiator prior to the purchase, sale, exchange, or lease of real property by or for the local agency to grant authority to its negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease.”
Property: 041-007-013
Agency Negotiator: City Manager, Douglas D. Dunford and City Attorney, Nubia I.

Goldstein
Negotiating Parties: Allen & Victoria Moore and G3 Enterprises Under Negotiations: Price and/or terms of payment

19. Conference with Real Property Negotiations, Cal Gov’t Code §54956.8 “Notwithstanding any other provisions of this chapter, a legislative body of a local agency may hold a closed session with its negotiator prior to the purchase, sale, exchange, or lease of real property by or for the local agency to grant authority to its negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease.”
Property: 041-007-010
Agency Negotiator: City Manager, Douglas D. Dunford and City Attorney, Nubia I.

Goldstein
Negotiating Parties: Daniel Lamb Trust and G3 Enterprises Under Negotiations: Price and/or terms of payment

20. Public Employee Performance Evaluation, Cal. Gov’t Code §54957(b)(1) Title: City Manager

REPORT FROM CLOSED SESSION

ADJOURNMENT
The next regularly scheduled City Council Meeting will be held on April 13, 2026, at 6:00 p.m. in the City Council Chambers located in the Community Center at 2701 Fourth Street, Ceres, CA.

AGENDA
Regular City Council Meeting
March 23, 2026

Council Agenda:

The City Council agenda is available for public review on the City’s website at www.ci.ceres.ca.us and posted at the time and places noted above.

Related Materials:

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the City Clerk’s Office at City Hall located at 2220 Magnolia Street, Ceres, CA during normal business hours. Persons with questions concerning any agenda item may call the City Clerk’s Office at (209) 538 - 5731.

Notice regarding Americans with Disabilities Act:

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting or if you need the agenda and/or the documents in the agenda packet provided in an alternative format, please contact the city clerk’s off ice at (209) 538- 5731 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made (28CFR 35.102-35.104 ADA TITLE II).

AFFIDAVIT OF POSTING

I, Fallon Martin, City Clerk, for the City of Ceres, declare under penalty of perjury that the foregoing agenda for the Regular City Council Meeting was posted on Wednesday, March 18, 2026, at the following locations in Ceres:

• Community Center Display Case – 2701 Fourth Street

__________________________________________________________________________________________________________________________________________________________ Fallon Martin, City Clerk

AGENDA
Enmienda n.º 1
Fecha: 20 de marzo de 2026
REUNIÓN REGULAR DEL CONCEJO MUNICIPAL

CIUDAD DE CERES, CALIFORNIA

Sala del Concejo Municipal, 2701 Fourth Street
Lunes, 23 de marzo de 2026, a las 6:00 p.m.

Dirección de envio: Ceres City Hall, 2220 Magnolia Street, Ceres, CA 95307-3292 Teléfono: (209) 538-5700 Fax: (209) 538-5780

LLAMAR AL ORDEN

Alcalde Lopez

PASE DE LISTA

Alcalde: Javier Lopez
Vicealcalde: Daniel A. Martinez (Distrito 4)
Concejales: James Casey (Distri to 1); Rosalinda L. Vierra (Distri to 2); Cerina Otero (Distrito 3)

INVOCACIÓN

Invocación por Tim Giannosa, Valley Grace Church.

Únete al seminario web de ZOOM para participar en vivo en:
https://us02web.zoom.us/j/82938539043?pwd=1jEBkL4JeHvSUMg4J0POfsGHeUUIw0.1

ID del seminario web: 829 3853 9043; Código de acceso: 655957; or Llame: (669) 900-6833

PARA PARTICIPAR EN LA SESIÓN DEL CONCEJO MUNICIPAL VIA COMMENTARIO PÚBLICO REMOTE ENVÍE UN CORREO ELECTRÓNICO A LA SECRETARIA MUNICIPAL A [email protected] ANTES DE LAS 4:00 P.M. EL DÍA DE LA REUNIÓN. INCLUYA EL NÚMERO DEL PUNTO DEL ORDEN DEL DÍA O MENCIONE "PERÍODO DE COMENTARIOS DEL PÚBLICO" EN EL ASUNTO DEL CORREO ELECTRÓNICO. LA SECRETARIA PODRÁ LEER LOS COMENTARIOS POR ESCRITO DURANTE LA SESIÓN, SI ASÍ LO SOLICITA EXPRESAMENTE AL COMIENZO DE SU CORREO ELECTRÓNICO. SU COMENTARIO ESCRITO SE DISTRIBUIRÁ A LOS MIEMBROS DEL CONCEJO MUNICIPAL Y SE ARCHIVARÁ COMO PARTE DEL ACTA OFICIAL DE LA REUNIÓN.

Si tiene alguna pregunta sobre cómo asistir virtualmente o si tiene dificultades en conectarse a la reunión, comuníquese con la Secretaria Municipal a través de la dirección de correo electrónico [email protected].

AGENDA
Reuniòn Regular Del Consejo Municipal
23 de marzo de 2026
Página 2

JURAMENTO A LA BANDERA

Juramento a la bandera dirigido por Lexi Farinha, Virgina Parks Elementary School.

PRESENTACIONES

Nada

COMENTARIOS PÚBLICOS al Consejo sobre asuntos no incluidos en la agenda (cinco minutos).

El Consejo Municipal da la bienvenida y fomenta la participación en sus reunion es. Las reglas adoptadas permiten un máximo de 5 minutos ( Resolución n.° 2007-106) para la expresión sobre temas no incluidos en la agenda. El público general puede dirigirse aserca de asuntos que esten bajo la jurisdicción del Consejo Municipal y que no estan incluidos en la agenda que fue publicada; sin embargo , la ley de California prohíbe que el Consejo Municipal tome decisiones sobre cualquier asunto que no esté en la agenda publicada, a menos que el Consejo Municipal lo declare como una emergencia. Cuidadanos tienen el derecho a dirigirse al Consejo Municip al sobre cualquier punto de la agenda, con la limitación de 5 minutos.

DECLARACIÓN DE CONFLICTO DE INTERESES

NOMBRAMIENTOS PARA JUNTAS/COMISIONES

Nada

CALENDARIO DE CONSENTIMIENTO
Todos los asuntos incluidos en el Calendario de Consentimiento se consideran de rutina ordinaria y se aprobarán por una sola moción, a menos que algún Concejal o miembro del público solicite su consideración por separado. Si no, se aceptará la recomendación del personal y se procederá a la votación nominal.

1. Informe de la Secretaria Municipal sobre la publicación de la agenda. La agenda de la Reunión del Concejo Municipal del 23 de marzo de 2026 se publicó el miércoles 18 de marzo de 2026. (Secretaria Municipal)

2. Renuncia procesal de lectura. Renuncia de la lectura de todas las ordenanzas y resoluciones. (Se renuncia la lectura completa de todas las ordenanzas y resoluciones incluidas en la agenda y se declara que los títulos mencionados en la agenda pública se considerarán leídos por título). (Secretaria municipal)

3. Aprobación de la acta de la Renuión Regular del Consejo Municipal del 9 de marzo de 2026. (Secretaria Municipal)

4. Registro de demandas de pago del 25 de febrero de 2026 al 11 de marzo de 2026. (Portillo)

AGENDA
Reuniòn Regular Del Consejo Municipal
23 de marzo de 2026
Página 3

5. Resolución Nº 2026-XXX, Aprobación de un contrato de servicios profesionales con Goodwin Consulting Group por un monto de $55,000 para servicios de consultoría destinados a la creación del Distrito de Instalaciones Comunitarias No. 4, y autorización al Administrador Municipal para la firma del contrato. (Beltran)

6. Resolución Nº 2026-XXX, Aprobación de la enmienda n° 1 al acuerdo con Schneider Electric Buildings Americas, Inc. por un monto que no exceda $4,988,067 para servicios integrales de diseño y construcción de energía, autorizando la construcción de un sistema solar fotovoltaico de 995 kilovatios en la planta de tratamiento de aguas residuales de la ciudad de Ceres, y autorizando al Administrador Municipal a firmar la enmienda. (Beltran)

7. Resolución Nº 2026-XXX, Aprobación de un acuerdo de servicios por tres años con Jay's Tires para el equipamiento de vehículos del Departamento de Policía, y autorización al Administrador de la Ciudad para firmar el contrato. (Johnson)

8. Resolución Nº 2026-XXX, Aprobación de una enmienda presupuestaria por un monto de $45,427.88 para el año fiscal 2025-26 para asignar fondos del programa COPS (SLESF) para agregar cajas de mando y radios policiales mejorad os a los dos vehículos policiales de los Comandantes de Turno. (Johnson)

CONSIDERACIÓN DE LOS ASUNTOS RETIRADOS DEL CALENDARIO DE

CONSENTIMIENTO

ASUNTOS PENDIETES

Nada

AUDIENCIA PÚBLICA

9. Ordenanza Nº 2026-XXXX, Una Ordenanza del Concejo Municipal de la Ciudad de Ceres que modifica el Capítulo 10, Restricciones a Estancos y Tiendas de Tabaco, al Título 6, Salud y Saneamiento, del Código Municipal de Ceres. (Johnson)
*Esta audiencia pública se pospone para la Reunión Regular del Consejo Municipal del 13 de abril de 2026.

10. Ordenanza Nº 2026-XXXX, Una Ordenanza del Concejo Municipal de la Ciudad de Ceres que enmienda el Título 5, Licencias y Regulación de Negocios, Capítulo 20, Venta de Fuegos Artificiales, del Código Municipal de Ceres. (Johnson)

11a. Ordenanza Nº 2026-XXXX, Una Ordenanza del Consejo Municipal de la Ciudad de Ceres que enmienda el Título 5, Licencias y Reglamentos Comerciales, Capítulo 3, Procedimiento General de Permisos, Sección 010, General y el Título 5, Licencias y Reglamentos Comerciales, Capítulo 22, Programa Piloto de Cannabis, del Código Municipal de Ceres. (Abogada Municipal)
AGENDA
Reuniòn Regular Del Consejo Municipal
23 de marzo de 2026
Página 4

11b. Resolución Nº 2026-XXX, Enmienda al Texto de la Ordenanza de Zonificación del Concejo de la Ciudad de Ceres que añade el Capítulo 43, Permisos de Uso Condicional de Cannabis, al Título 18, Zonificación, y modifica las Secciones

18.02.010, 18.13.020, 18.16.040, 18.17.040, 18.18.040, 18.19.040 y 18.20.040 del Título 18, Zonificación, del Código Municipal de Ceres. (Abogada Municipal)

12. Resolución Nº 2026-XXX, Aprobación de las tasas impositivas para negocios de cannabis. (Abogada Municipal)

ASUNTOS NUEVOS

Nada

TEMAS DE DISCUSIÓN

13. Fianza oficial del Tesorero Municipal y adición del Vice Alcalde a la cobertura de la fianza. (Portillo)

RECOMENDACIONES DE LOS CONCEJALES
Los concejales solicitan que se incluya un punto en la agenda de una futura reunión ( en conformidad con el Capítulo 2 - Reuniones del Consejo Municipal, J -8. Recomendaciones/Determinación de puntos para la agenda del Consejo Municipal).

14. Crear un comité especial para Christmas Tree Lane que incluya a los residentes de Christmas Tree Lane.
(Solicitado por la Concejal Otero en la Reunión Regular del Consejo Municipal del 8 de diciembre de 2025).

INFORMES
En este momento, cualquier miembro del Consejo o del personal municipal podrá hacer un anuncio o informar brevemente sobre sus actividades.

• Alcalde
• Consejales
• Administrador Municipal
• Abogada Municipal
• Departmentos

SESIÓN A PUERTA CERRADA

15. Conferencia con el asesor legal – Litigio Previsto, Exposición Significativa a Litigios de conformidad con el Código de Gobierno de California §54956.9(d)(2) “Para los efectos de esta sección, se considerará que existe un litigio pendiente cuando se presente alguna de las siguientes circunstancias… Se ha llegado a un punto en el que, a juicio del órgano legislativo de la agencia local, con el asesoramiento de su asesor legal y basándose en los hechos y circunstancias existentes, existe una exposición significativa a litigios contra la agencia local.” Casos Potenciales: 2 casos
AGENDA
Reuniòn Regular Del Consejo Municipal
23 de marzo de 2026
Página 5

16. Conferencia con con negociadores laborales, Código Gubernamental de California §54957.6(a)
“No obstante cualquier otra disposición legal, un órgano legislativo de una agencia local podrá tener sesiones a puerta cerrada con los representantes designados de dicha agencia local con respecto a los salarios, las escalas salariales o la compensación pagada en forma de beneficios complementarios a sus empleados representados y no representados y, en e l caso de los empleados representados, cualquier otro asunto comprendido dentro del ámbito de representación establecido por la ley.”
Representantes Designados de la Agencia: Administrador Municipal, Douglas D.

Dunford, y Directora de Recursos Humanos, Delilah Vasquez Organización de Empleados: Laborers’ International Union of North America (LiUNA!)

17. Reclamaciones de Responsabilidad Civil, Código de Gobierno de California §54956.95
“Para los efectos de la Sección 54956.9, los ‘hechos y circunstancias existentes’ consistirán únicamente en uno de los siguientes: la recepción de una reclamación conforme a la Ley de Reclamaciones Gubernamentales (División 3.6 (que comienza con la Sección 810) del Título 1 del Código de Gobierno) o cualquier otra comunicación escrita de un posible demandante que amenace con iniciar un litigio, la cual estará disponible para inspección pública conforme a la Sección 54957.5.”
Demandante: Ronald Smith
Organización Demandado: Ciudad de Ceres

18. Reunión para negociaciones sobre bienes inmuebles , Código de Gobierno de California §54956.8
“Sin perjuicio de cualquier otra disposición de este capítulo, un órgano legislativo de una agencia local podrá celebrar una sesión a puerta cerrada con su negociador antes de la compra, venta, intercambio o arrendamiento de bienes inmuebles por o para la agencia local, a fin de otorgarle autoridad a su negociador con respecto al precio y las condiciones de pago de dicha compra, venta, intercambio o arrendamiento.”
Propiedad: 041-007-013
Negociador de la agencia: Administrador Municipal, Douglas D. Dunford y Abogada Municipal, Nubia I. Goldstein
Partes negociadoras: Allen y Victoria Moore and G3 Enterprises Negociación: Precio y/o condiciones de pago

19. Reunión para negociaciones sobre bienes inmuebles , Código Gubernamental de California §54956.8
Propiedad: 041-007-010
Negociadores de la agencia: Administrador Municipal, Douglas D. Dunford y Abogada Municipal, Nubia I. Goldstein
Partes negociadoras: Daniel Lamb Trust y G3 Enterprises En negociación: Precio y/o condiciones de pago

20. Evaluación del desempeño de los empleados públicos, Código de Gobierno de California §§54957(b)(1)
Título: Gerente municipal

AGENDA
Reuniòn Regular Del Consejo Municipal
23 de marzo de 2026
Página 6
INFORME DE LA SESIÓN A PUERTA CERRADA

APLAZAMIENTO
La próxima reunión regular del Consejo Municipal será el 13 de abril de 2026, a las 6:00 p.m., en la sala del Consejo Municipal ubicada en el Centro Comunitario, en 2701 Fourth Street, Ceres, CA.

Agenda del Consejo:

La agenda del consejo está disponible para revisión pública en el sitio web de la ciudad en www.ci.ceres.ca.us y se publica en la fecha y los lugares indicados anteriormente.

Materiales relacionados:

Cualquier escrito o documento proporcionado a la mayoría del Consejo Municipal en relación con cualquier punto de esta agenda estará disponible para inspección pública en la Oficina de la Secretaria Municipal, ubicada en el Ayuntamiento, en 2220 Magnolia Street, Ceres, CA, durante el horario commercial normal . Las personas que tengan preguntas sobre cualquier punto de la agenda pueden llamar a la Oficina de la Secretaria Municipal al (209) 538-5731.

Aviso acerca de la Ley de Estadounidenses con Discapacidades:

En conformidad con la Ley para Estadounidenses con
Discapacidades, si necesita asistencia especial para participar en esta reunión o si necesita que la agenda o los documentos incluidos en el paquete de la agenda se le proporcionen en un a forma alternativa, comuníquese con la oficina de la secretaria municipal al (209) 538-5731 con al menos 48 horas en anticipación a la reunión para garantizar que se puedan realizar los arreglos necesarios (28 CFR 35.102-35.104, Título II de la ADA).

DECLARACIÓN JURADA DE PUBLICACIÓN
Yo, Fallon Martin , Secretaria Municipal de la Ciudad de Ceres, declaro bajo pena de perjurio que la agenda para la Sesiòn Regular del Concejo Municipal fue publicado el miércoles 18 de marzo de 2026 en los siguientes lugares de Ceres:
• Vitrina del Centro Comunitario – 2701 Fourth Street
_________________________________________________________________________________________________________________________________________________________________________ Fallon Martin, Sectretaria Municipal

DRAFT MINUTES

CITY COUNCIL REGULAR MEETING

CITY OF CERES, CALIFORNIA
(via ZOOM and in-person)
City Council Chambers, 2701 Fourth Street
Monday, March 9, 2026, at 6:00 p.m.

Mailing Address: Ceres City Hall, 2220 Magnolia Street, Ceres, CA 95307-3292 Phone: (209) 538-5700 Fax: (209) 538-5780

CALL TO ORDER
Mayor Lopez called the February 9, 2026, meeting to order at 6:00 p.m.

ROLL CALL – Present:

Mayor: Javier Lopez
Vice Mayor: Daniel A. Martinez (District 4)
Councilmembers: James Casey (District 1); Rosalinda L. Vierra (District 2); Cerina Otero (District 3)
District 1
Councilmember
Casey
District 2
Councilmember
Vierra
District 3
Councilmember
Otero
District 4
Vice Mayor
Martinez
Mayor Lopez
Present Present Present Present Present

INVOCATION
Invocation by Tim Giannosa, Big Valley Grace Community Church.

PLEDGE OF ALLEGIANCE
Pledge of Allegiance led by Cayden Perez Grandberry, Mae Hensley Junior High School.

PRESENTATIONS
A. Women’s History Month Proclamation
The Persephone Guild of Ceres and Soroptimist International of Ceres accepted the proclamation.

B. StanCOG Regional Transportation Plan and Sustainable Communities Strategy Chris Gregerson with Kimley-Horn gave the presentation.

ITEM 3

DRAFT MINUTES
Regular City Council Meeting
March 9, 2026

CITIZEN COMMUNICATIONS to the Council on matters not included on the agenda (five minutes)

Narinder Bahia provided an update on Senator Alvarado-Gil’s office.

Ismael Ontiveros spoke regarding lighting at Costa Fields, City Manager comments, and American Rescue Plan Act (ARPA) funds.

Jorge Guerrero spoke regarding documentation on lighting at Costa Fields and March 27th being opening day for Ceres Youth Baseball.

Brandy Meyer spoke regarding a Soroptimist International of Ceres event, multi-chamber mixer event, coffee and conversation event, underserved business workshop, Ceres Street Faire, and Love Ceres.

John Warren thanked the Persephone Guild of Ceres and Soroptimist International of Ceres for accepting the Women’s History Month proclamation, thanked Council for the VFW donation, spoke regarding Memorial Day services, and Copper Trails.

CONFLICT OF INTEREST DECLARATION

None

APPOINTMENTS TO BOARDS/COMMISSIONS

None

CONSENT CALENDAR

1. Clerks Report of Posting. The agenda of the March 9, 2026, City Council Meeting was Posted on Wednesday, March 4, 2026. (City Clerk)

2. Waive Readings. All Readings of Ordinances and Resolutions are Waived. (Waive readings in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title). (City Clerk)

3. Approval of Minutes for the January 26, 2026, Regular City Council Meeting. (City Clerk)

4. Approval of Minutes for the February 9, 2026, Regular City Council Meeting. (City Clerk)

5. Register of Audited Demand(s) Dated January 23, 2026, through February 18, 2026. (Portillo)

ITEM 3

DRAFT MINUTES
Regular City Council Meeting
March 9, 2026

6. Resolution No. 2026 -19, Approving a Memorandum of Understanding with the Stanislaus County Regional Apprehension Team (RAT) for a Term of Three (3) Years and Authorizing the City Manager to Execute the MOU. (Johnson)

7. Resolution No. 2026 -20, Approving an Amendment to the Professional Services Agreement with GDR Engineering for Additional Surveying Services for the Morrow Village Phase 3 Sidewalk Improvements Project in the Amount of $2,360 and Authorizing the City Manager to Execute the Amendment. (Beltran)

8. Removed for separate consideration.

9. General Correspondence – Information Only
a. Annual Economic Development Report (Aguirre)
b. Public Works Monthly Report for January 2026 (Casas)

10. Resolution No. 2026 -22, Approving the Project Agreement to the Master Agreement for Professional Consultant Services with Westwood Professional Services in the amount of $26,084.44 for National Environmental Policy Act (NEPA) Studies for the Moffett Road Rehabilitation Project (2407) and Authorizing the City Manager to Execute the Agreement. (Beltran)

11. Resolution No. 202 6-23, Accepting the Annual Fire Inspection Report for 2025. (Hunter)

Action: Motion by Vice Mayor Martinez, seconded by Councilmember Vierra, approving items 1 – 7 and 9 – 11. Motion carried 5/0/0/0 by the following roll call vote:

Councilmember
Casey
Councilmember
Vierra
Councilmember
Otero
Vice Mayor
Martinez Mayor Lopez
Yes Yes Yes Yes Yes

CONSIDERATION OF ITEM(S) REMOVED FROM THE CONSENT CALENDAR

Item 8: Removed for separate consideration by Councilmember Casey

Resolution No. 2026 -21, Approving the Project Agreement to the Master Agreement for Professional Consultant Services with Consor North America for North Ceres Pump Station, Force Main and Downstream Up -Sizing (New Project String) Project in the Amount of $971,881.00, Approving the Creation of a New Project String, Approving a Budget Amendment in the Amount of $1,000,000.00, and Authorizing the City Manager to Execute the Agreement. (Beltran)

Councilmember Casey spoke regarding the funding source.

ITEM 3

DRAFT MINUTES
Regular City Council Meeting
March 9, 2026

Mayor Lopez asked for public comment. No one spoke. Mayor Lopez closed public comment.

Council and staff discussion included water and sewer funds.

Action: Motion by Vice Mayor Martinez, seconded by Councilmember Vierra, approving item 8. Motion carried 5/0/0/0 by the following roll call vote:

Councilmember
Casey
Councilmember
Vierra
Councilmember
Otero
Vice Mayor
Martinez Mayor Lopez
Yes Yes Yes Yes Yes

UNFINISHED BUSINESS

None

PUBLIC HEARING

None

NEW BUSINESS

None

DISCUSSION ITEMS

12. Approving Letters of Support from the Ceres City Council to Present to Stanislaus Regional Transit Authority for the Transit and Intercity Rail Capital Program Application (TIRCP). (City Manager)

City Manager, Doug Dunford, introduced the item.

Mayor Lopez asked for public comment. No one spoke. Mayor Lopez closed public comment.

Council and staff discussion included funding percentage and additional required support from the City.

Action: Motion by Vice Mayor Martinez, seconded by Councilmember Vierra, approving item 12. Motion carried 5/0/0/0 by the following roll call vote:

Councilmember
Casey
Councilmember
Vierra
Councilmember
Otero
Vice Mayor
Martinez Mayor Lopez
Yes Yes Yes Yes Yes
ITEM 3

DRAFT MINUTES
Regular City Council Meeting
March 9, 2026

COUNCILMEMBER REFERRALS

None

REPORTS

• Mayor

Mayor Lopez spoke regarding his federal advocacy trip to Washington DC and letters of support for the VFW project.

• City Council

Councilmember Vierra spoke regarding Stanislaus Homeless Alliance, school district meeting, Code Enforcement, chamber of commerce event, annual Easter event, and boxing event.

Vice Mayor Martinez spoke regarding the upcoming Easter event and Ceres Youth Baseball’s opening day.

• City Manager

Nothing to report.

• City Attorney

Nothing to report.

• Departments

Engineering Director, Mike Beltran, provided an update on Hatch Road.

Redevelopment & Economic Development Manager, Julian Aguirre, spoke regarding EMC and the implementation of the housing project.

Acting Deputy Public Works Director, Josh Casas, thanked Public Works staff and Joey Chavez for their efforts while on family leave.

CLOSED SESSION

None

REPORT FROM CLOSED SESSION

None

ITEM 3

DRAFT MINUTES
Regular City Council Meeting
March 9, 2026

ADJOURNMENT

The next scheduled City Council Meeting will be held on March 23, 2026, at 6:00 p.m. in the City Council Chambers located in the Community Center at 2701 Fourth Street, Ceres, CA.

There being no further business, Mayor Lopez adjourned the meeting at 6:52 p.m.

______________________________
Javier Lopez, Mayor

______________________________
Fallon Martin, City Clerk

Consistent with Council Policy, the minutes referenced above are in Action Format. The complete recording of the meeting can be viewed at http://www.ci.ceres.ca.us/ agenda center.

ITEM 3

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: March 23, 2026
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Vanessa Portillo, Director of Finance
[email protected], (209) 538-5764
SUBJECT: Register of Audited Demand(s) Dated February 25, 2026, through March 11, 2026
RECOMMENDED COUNCIL ACTION:

City Council approve the register of audited demand(s) dated February 25, 2026, through March 11, 2026, covering obligations to be paid by general warrants in the amount of $2,585,146.77 I. BACKGROUND:

In accordance with Section 37202 of the Government Code of the State of California this is presented here with a summary of demands against the City of Ceres covering obligations to be paid for the period ending February 25, 2026, through March 11, 2026.

Each demand has been audited and I hereby certify to their accuracy and conformance with the budget. Sufficient funds are available for payment of these demands.

I declare under penalty of perjury that the register of audited demands has been examined by me and to the best of my knowledge and belief is a true, correct and complete listing of claims audited and payable.

II. REASONS FOR RECOMMENDATION:

The Finance Department monitors payments of invoices for accountability, accuracy, and completeness. Budgeted payrolls and demands paid by warrants or checks may be presented to the legislative body for ratification and approval. This allows for invoices to be paid in a timely manner to establish goodwill with merchants and allows for discounts to be taken where applicable.

ITEM 4
III. FISCAL IMPACTS:

The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY 2025-26 budget. There is a $2,585,146.77 fiscal impact for the period of February 25, 2026 , through March 11, 2026.

IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

N/A
V. POLICY ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

N/A
VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

N/A
Approved by: _____________________
Douglas D. Dunford,
City Manager
Attachments:

1. Attachment A – Warrant Register February 25, 2026, through March 11, 2026 ITEM 4

ATTACHMENT A
3/16/2026
1 Date PO # Invoice Description Amount
125.00
125.00
615.00
615.00
125.00
125.00
477.00
477.00
132.34

22.49 230.21
385.04

31.76 31.76
369.04
283.02
284.97
156.45

92.46 1,185.94
5,110.00
5,110.00
822.32
822.32
22600004 2,521.00
1,950.00
4,471.00
02/25/26 AGILE OCCUPATIONAL MEDICINE, PC JAN 26 DOT PHYSICAL V.AYALA Total:

Voucher List
City of Ceres
Vendor Name
02/25/26 AGILE OCCUPATIONAL MEDICINE, PC JAN 26 PD MEDICAL PRE-EMPLOYMENT TESTS Total:
02/25/26 AGILE OCCUPATIONAL MEDICINE, PC NOV 25 DOT PHYSICAL S.KEYS Total:
02/25/26 AGILE OCCUPATIONAL MEDICINE, PC OCT 25 PRE EMP PD NON SWORN MEDICAL SCREENS Total:

Total:
02/25/26 AT&T 12/20/2025 - 01/19/2026 CALNET SVCS Total:
02/25/26 AT&T 02/07 - 03/06/25 FIRE ALARM SVC
02/25/26 AMAZON CAPITAL SERVICES, INC. SCREEN CLIPS

OUTDOOR LIGHT BULB

MOWER BLADES
02/25/26 AVENU GRS, LLC CLEARVIEW/STARS 3RD QRT JUL- SEP 2025 DATA Total:
02/25/26 AT&T FEB 5 - MAR 6 2026 SHORETEL
Total:
12/07/2025 - 01/06/2026 CALNET SVC
01/07 - 02/06/2025 CALNET SVC
01/07/2026 - 02/06/206 CALNET SVCS
01/12/2026 - 02/11/2026 CALNET SVC
Total:
02/25/26 BEAR ELECTRICAL SOLUTIONS, INC JAN 2026 TRAFFIC SIGNAL MAINTENANCE & REPAIR SRVCS

TRAFFIC SIGNAL RESPONSE
Total:

ITEM 4

ATTACHMENT A
3/16/2026
2 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
22500047 383.00
22500145 8,602.50
22500145 217.00
9,202.50
3,791.68
6,560.69
6,560.69
526.94
17,440.00
313.20
313.20
798.22
798.22
103,756.90
103,756.90
392.92
392.92
-138.24
118.64
-138.24
118.64
370.13
231.89
231.89
794.71
3,996.64
3,996.64

93.00 93.00
Total:
02/25/26 PARDY BOUNTHAVONG HEATER FOR FLEET DEPT. 02/25/26 BLACK WATER CONSULTING ENGINEERS, INC JAN 26 2022 WATER MAIN AND SERVICE REPLACEMENT JAN 2026 URBAN WATER MANAGEMENT PLAN UPDATE
2025 URBAN WATER MANAGEMENT PLAN UPDATE
02/25/26 AASIM PROPANE & GAS CORPORATION PROPANE FOR ADMIN UTILITY HEATING (WRRF) Total:
02/25/26 CALIFORNIA LANDSCAPE SUPPLY, INC. 5 YARDS OF SAND Total:

SOUTH HEATER @ FIRE STATION #17
NORTH HEATER @ FIRE STATION # 17
FS #17 ICE MACHINE REPAIR
Total:
02/25/26 CRESCENT SUPPLY ACADEMY RECRUIT UNIFORM CREDIT - IBARRA

ACADEMY RECRUIT UNIFORM - IBARRA

ACADEMY RECRUIT UNIFORM RETURN - MADSEN
02/25/26 CORELOGIC SOLUTIONS, LLC JAN 1 - JAN 31 2026 METRO SCAN OLINE ACCESS Total:
02/25/26 CITY OF TURLOCK JAN26 TURLOCK SEWER USE CHARGES 1/1-1/31/25 Total:
02/25/26 DEPT OF JUSTICE ACCOUNTING OFFICE LIVE SCANS - 1/1/26 - 1/31/26 Total:
02/25/26 DELTA DENTAL OF CALIFORNIA MARCH 2026 DENTAL PREMS & CREDITS JAN/FEB 2026 Total:

ACADEMY RECRUIT UNIFORM - MADSEN

ACADEMY RECRUIT UNIFORM - MADSEN

NEW HIRE UNIFORM - MALONEY - CAMPAIGN HAT

NEW HIRE UNIFORM - MCCLAIN - CAMPAIGN HAT
Total:

ITEM 4

ATTACHMENT A
3/16/2026
3 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
6,900.00
6,900.00
301.46
196.01
497.47

38.19 38.19
6,783.93
7,978.50
14,762.43
167.00
167.00
143,948.82
143,948.82
22600043 3,052.20
22600045 3,181.07
22600044 3,023.36
9,256.63
5,000.00
5,000.00
125.75
152.00
152.00
732.10
1,503.47
573.43
1,740.26
1,740.26
320.97
02/25/26 GREEN RUBBER-KENNEDY AG GREASE HOSE FOR DISK Total:
02/25/26 GEORGE REED, INC. 3.17 TONS OF ASPHALT FOR CITY PATCHING

2.02 TONS OF ASPHALT FOR CITY PATCHING
Total:
02/25/26 ENVIRONMENTAL INCENTIVES, INC UWUO ANNUAL REPORT DELIVERABLES 11/01/25 -01/31/26 Total:
02/25/26 KAISER FOUNDATION HEALTH PLAN, INC MARCH 2026 MEDICAL PREMIUMS Total:
02/25/26 INSTITUTE FOR ENVIRONMENTAL HEALTH INC. WATER QUALITY SAMPLES Total:
02/25/26 HUNT & SONS LLC 2/1-15/26 FUEL FOR PD
2/1-15/26 FUEL FOR PW
Total:

Total:
02/25/26 MICROBAC LABORATORIES, INC EFFLUENT MONTHLY ANALYSIS FEB 26 Total:
02/25/26 LLOYD R SMITH VFW POST 10293 DISTRICT 1 -DONATION TO VFW POST 10293 02/25/26 KLEINFELDER, INC JAN 26 RICHLAND AVE RECON GEO ENG SVCS-AGRMNT#5 JAN 26 CENTRAL AVE RECON GEO ENG SVCS-AGRMNT#4
JAN 26 N CENTRAL RECON GEO TECH ENG SVCS AGRMNT#3

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES
TURLOCK EXPORT ANALYSIS FEB #2
TURLOCK EXPORT ANALYSIS #1 FEB 26

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES
ITEM 4

ATTACHMENT A
3/16/2026
4 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
738.69

97.40 386.16
481.03
1,432.80
1,578.56
738.69
12,493.57
707.80
707.80
395.16
395.16

98.23 72.36
170.59
3,229.24
867.67
1,250.65

12.35 5,359.91
16,340.00
16,340.00
96,160.00
96,160.00

15.47 15.47

82.13 82.13
Total:
02/25/26 DIRK NIEUWENHUIS NIEUWENHUIS: LODGING/PER DIEM SLI SESS 3 MAR 25-28

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES
2/16/26 UNIFORM SERVICE WTR/WTR CONSERVATION
Total:
02/25/26 PACIFIC GAS & ELECTRIC 01/03/26 - 02/03/2026 PG&E SRVCS 420 SERVICE RD Total:
02/25/26 MISSION LINEN SUPPLY 2/16/26 UNIFORM SERVICE STREETS Total:
02/25/26 JULIAN AGUIRRE ICSC MONTEREY PERDIEM 3/23-3/25/2026 02/25/26 SUTTER HEALTH ALLIANCE MARCH 2026 MEDICAL PREMIUMS Total:
02/25/26 STANISLAUS COUNTY SHERIFF'S DEPT 09/22/25 - 02/06/26 ACADEMY TUITION Total:
01/06/2026 - 02/04/2026 PG&E SRVCS 2701 4TH ST
01/01/2026 - 02/02/2026 PG&E SRVCS 3101 FOWLER RD
01/06/2026 - 02/04/2026 PG&E SRVCS 2928 5TH ST
Total:
02/25/26 AVELINO ESCOBAR, LAURA UB OVERPAYMENT REFUND 0080 Total:
02/25/26 ADROIT CAPITAL LLC UB OVERPAYMENT REFUND 0040 Total:

ITEM 4

ATTACHMENT A
3/16/2026
5 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name

34.83 34.83
105.97
105.97
101.39
101.39

42.36 42.36

20.44 0.00
153.84
153.84

59.60 59.60

26.93 26.93

44.35 44.35

81.01 81.01

23.37 23.37

90.78 90.78

35.78 35.78
158.82
158.82

50.87 50.87
02/25/26 CERRILLO, NATASHA NICHOLE UB OVERPAYMENT REFUND 0160 Total:
02/25/26 ESPIRITU, DORA ISELA UB OVERPAYMENT REFUND 0141 Total:
02/25/26 DAVID, SAM UB OVERPAYMENT REFUND 0150 Total:
02/25/26 CHRISTIAN, DAN UB OVERPAYMENT REFUND 0080 Total:
02/25/26 GUTIERREZ, SALVADO OCHOA UB OVERPAYMENT REFUND 9735 Total:
02/25/26 GONZALEZ, RICARDO UB OVERPAYMENT REFUND 0120 Total:
02/25/26 ESQUIVEL, FRANCISCO UB OVERPAYMENT REFUND 0970 Total:
02/25/26 MAX VAL INC. UB OVERPAYMENT REFUND 0090 Total:
02/25/26 KHROENG, SOHPY UB OVERPAYMENT REFUND 0110 Total:
02/25/26 HINDMAN, JOSHUA VINCENT UB OVERPAYMENT REFUND 0680 Total:
02/25/26 RAMIREZ RIOS, EULALIA UB OVERPAYMENT REFUND 0120 Total:
02/25/26 MORA, ADAN UB OVERPAYMENT REFUND 0230 Total:
02/25/26 MINHAS, AMRIT PAL SINGH UB OVERPAYMENT REFUND 0250 Total:
02/25/26 RICE, JORDAN UB OVERPAYMENT REFUND 0790 Total:
02/25/26 RAMIREZ, MARIA UB OVERPAYMENT REFUND 0150 Total:

ITEM 4

ATTACHMENT A
3/16/2026
6 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name

14.75 14.75

8.54 8.54

38.81 38.81
133.16
133.16
171.71
171.71

59.58 59.58
140.46
140.46
127.97
127.97

65.82 65.82
413.50
413.50
9,035.70
3,868.86
1,879.64
3,298.24
02/25/26 RIVERA, JAIME UB OVERPAYMENT REFUND 0060 Total:
02/25/26 SANCHEZ, GERARDO UB OVERPAYMENT REFUND 0340 Total:
02/25/26 SALINAS, JESUS UB OVERPAYMENT REFUND 0250 Total:
02/25/26 ROMO, DENISE UB OVERPAYMENT REFUND 0230 Total:
02/25/26 TRICON SFR 2025-1 BORROWER LLC UB OVERPAYMENT REFUND 0210 Total:
02/25/26 SOUSA, MANUEL SOARES DE UB OVERPAYMENT REFUND 0070 Total:
02/25/26 SOLORIO, DANIEL UB OVERPAYMENT REFUND 0071 Total:
02/25/26 WESTERN STATE DESIGN FS #15 EXTRACTOR REPAIR Total:
02/25/26 ZACHARIAH, ALVIN UB OVERPAYMENT REFUND 0100 Total:
02/25/26 VALLEYWIDE PROPERTY MANAGEMENT UB OVERPAYMENT REFUND 0160 Total:
1/1–1/31/26 COPPER TRAILS LEGAL SERVICES
02/25/26 WHITE BRENNER LLP 1/1–1/31/26 GEN MUNI LEGAL SERVICES 1/1–1/31/26 HR LEGAL SERVICES
1/1–1/31/26 CODE ENF LEGAL SERVICES
ITEM 4

ATTACHMENT A
3/16/2026
7 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
3,944.42
283.72

35.46 6,664.91
2,720.96
31,731.91
319.71
319.71
200.00
200.00
334.58
829.75
1,164.33
276.60
276.60

8.66 14.08

22.59 39.58

21.50 21.64

42.24 42.26

23.83 31.42
267.80
22600058 6,855.00
6,855.00
1/1–1/31/26 RANUIO LEGAL SERVICES
Total:
02/25/26 WILLEY PRINTING CO., INC. #10 WINDOW SECURITY ENVELOPES A/P DEPT 1/1–1/31/26 TOW ONE LEGAL SERVICES
1/1–1/31/26 LITIGATION LEGAL SERVICES
1/1–1/31/26 REAL ESTATE LAND USE LEGAL SERVICES
1/1–1/31/26 MAVERIK LEGAL SERVICES

LIGHTING MODULE
Total:
03/04/26 ADVANCED TECHNOLOGY DISTRIBUTORS, INC FEB 2026 SCADA SYSTEM MANAGED BACKUPS Total:
03/04/26 A & B TRUCK PARTS, INC FUEL FILTERS & FUEL FILTER ELEMENT Total:
03/04/26 209 MULTIMEDIA CORPORATION PHN COPPER TRAILS CC#26-002

DECAL REMOVER

SOLDER IRON KIT

PRINTER PAPER FOR FLEET
TUBING
Total:

REPLACEMENT OFFICE EXTERIOR LIGHT BULB

BOOKENDS FOR SHELVES

HOSE CLAMPS/ PIPE PLUG

PHONE CASE FOR AL BURKETT

PULL ROPE
Total:
03/04/26 AMAZON CAPITAL SERVICES, INC. MONTHLY PLANNER FOR ADMIN 03/04/26 ANIMAL DAMAGE MANAGEMENT INC FEB 2026 PEST CONTROL FOR CITY BUILDINGS AND PARKS Total:

ITEM 4

ATTACHMENT A
3/16/2026
8 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name

31.84 31.84
156.45
122.67

32.89 64.09

41.76 481.54
668.67
668.67
22600042 4,095.14
4,095.14
698.49
698.49

93.59 93.59
22600091 14,555.79
14,555.79

37.81 81.51
119.32

49.70 54.05
103.75
150.15
150.15
22600021 13,074.70
13,074.70
01/20/2026 - 02/19/2026 CALNET SVC
01/20/2026 - 02/19/2026 CALNET SVC
01/20/2026 - 02/19/2026 CALNET SVC
01/20/2026 - 02/19/2026 CALNET SVC
Total:
03/04/26 AT&T 01/20/2026 - 02/19/2026 CALNET SVC
01/20/2026 - 02/19/2026 CALNET SVC
01/20/2026 - 02/19/2026 CALNET SVC
03/04/26 CARLSON SCALE, INC. WELL #22 MOD BUS SCALE Total:
03/04/26 AMANDA FENTON 2/1-28/2026 GRANT WRITING SERVICES Total:
03/04/26 ATCO MANUFACTURING CO. TRAFFIC SUPPLY MARKING WAND Total:
03/04/26 CNA SURETY 2/26-2/27 OFFICIALS BOND VICE MAYOR & TREASURE 2/26-2/27 OFFICIALS BOND VICE MAYOR & TREASURE
Total:
03/04/26 CIVICPLUS, LLC 1/16/26-1/15/27 CIVICREC SOFTWARE ANNUAL RNWL Total:
03/04/26 CITY OF MODESTO FEBRUARY 2026 WTR SVCS F/S 2 Total:
03/04/26 EIDE BAILLY LLP FEB 2026 ACCOUNTING CONSULTING SERVICES AUDIT Total:
03/04/26 DFM ASSOCIATES 2026 ELECTIONS CODE BOOKS Total:
03/04/26 DAIOHS USA INC. OFFICE WATER - WATER DEPT

OFFICE WATER - PW
Total:

ITEM 4

ATTACHMENT A
3/16/2026
9 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
22600074 3,339.00
3,339.00
148.95
265.64
444.55
859.14
384.95
437.29
822.24
172.74
172.74
193.92
193.92
249.00
249.00
232.00
232.00
360.00
360.00
202.43
202.43
140.00
140.00
1,226.54
1,226.54

48.42 48.42
411.50
411.50
Total:
03/04/26 FERGUSON US HOLDINGS, INC CURBSTOP KEYS
03/04/26 EWING IRRIGATION PRODUCTS INC. ROW IRRIGATION PARKS

ROW IRRIGATION

ROW IRRIGATION
03/04/26 EMTS, INC. FEBRUARY MONTHLY MAINTENANCE SERVICES Total:

Total:
03/04/26 PRYOR LEARNING, LLC ANNUAL PLUS ACCESS TRAINING Total:
03/04/26 FISHER SCIENTIFIC COMPANY, LLC SAMPLE DIPPER

SHUT OFF TOOL
Total:
03/04/26 FERGUSON US HOLDINGS, INC PULLING SOCK-SERVICE LINE REPLACEMENT TOOL Total:
03/04/26 GEORGE REED, INC. 2.09 TONS OF ASPHALT FOR CITY PATCHING Total:
03/04/26 GATE-OR-DOOR INC. RIVERBLUFF GATE
Total:
03/04/26 STATE CENTER COMMUNITY COLLEGE DISTRICT JAN 26 BACKGROUND INVESTIGATION COURSE (2) Total:
03/04/26 VALLEY FARM SUPPLY STORES, INC 6 AIR FILTERS FOR WEED EATER Total:
03/04/26 HERITAGE LANDSCAPE SUPPLY GROUP, INC IRRIGATION SPRINKLERS Total:
03/04/26 HAO VAN LE MONTHLY EFFLUENT ANALYSIS FEB 26 Total:

Total:
03/04/26 INSTITUTE FOR ENVIRONMENTAL HEALTH INC. WELL 22 START UP HPC ANALYSIS ITEM 4

ATTACHMENT A
3/16/2026
10 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
215.52
215.52
500.00
22600009 1,745.42
22600009 1,745.42
22600009 1,438.94
22600009 1,438.94
22600009 2,532.71
9,401.43
345.72
345.72
714.92
714.92
176.65
176.65

25.00 25.00
140.00
140.00
4,090.00
4,090.00

75.00 75.00
140.00
140.00
140.00
140.00
140.00
140.00
Total:
03/04/26 INDUSTRIAL ELECTRICAL CO. PORTABLE GENERATOR LEAK REPAIR/DIAGNOSIS 03/04/26 IMPERIAL BAG & PAPER CO. LLC CUSTODIAL SUPPLIES Total:
03/04/26 M&G-4 13 INC. 3/6/26 SENIOR KARAOKE & BRUNCH EVENT LUNCH FOOD Total:
03/04/26 JJMS ENTERPRISES INC PARTS FOR TIRE MACHINE

ANNUAL GENERATOR PREVENTATIVE MAINTENANCE

ANNUAL GENERATOR PREVENTATIVE MAINTENANCE
ANNUAL GENERATOR PREVENTATIVE MAINTENANCE #1
ANNUAL GENERATOR PREVENTATIVE MAINTENANCE #2
GENERATOR PREVENTATIVE MAINTENANCE WELL 28
Total:
03/04/26 ANTONIO LEPE A. LEPE 4/27-4/30/26 PER-DIEM CRWA EXPO Total:
03/04/26 ALEJANDRO RODRIGUEZ REFUND UNION INITIATION FEE DEDUCTED IN ERROR JAN Total:
03/04/26 MARTIN MARIETTA MATERIALS, INC. 2.05 TONS OF ASPHALT FOR CITY PATCHING Total:
03/04/26 JEFF ARNOLD J. ARNOLD 4/27-4/30/26 PER-DIEM CRWA EXPO Total:
03/04/26 GLORIA ORDAZ-ZARCO TOILET REBATE #183 Total:
03/04/26 ENRIQUE AND DORA LEPE REIMBURSEMENT LEPE GPA25-02 Total:

Total:
03/04/26 OMAR REBOLLEDO O. REBELLEDO 4/27-4/30/26 PER-DIEM CRWA EXPO Total:
03/04/26 JOHNATHAN GOMES J. GOMES 4/27-4/30/26 PER-DIEM CRWA EXPO ITEM 4

ATTACHMENT A
3/16/2026
11 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name

25.00 25.00

75.00 75.00

10.00 70.16

88.32 129.23

67.89 129.23
129.23
160.92
187.92

38.73 10.00

89.51 31.73

28.30 24.80

72.36 1,268.33

17.37 17.37

32.88 127.72
160.60
8,622.98
8,622.98
03/04/26 ROSALBA MUNETON LOPEZ REFUND UNION INITIATION FEE DEDUCTED IN ERROR JAN 1 BOX OF NITRILE GLOVES
2/16/26 UNIFORM SERVICE PARKS
2/23/26 UNIFORM SERVICE PARKS
2/16/26 UNIFORM SERVICE FLEET
2/23/26 MATS FOR PW ADMIN BUILDING
2/16/26 UNIFORM SERVICE WASTEWATER
2/23/26 UNIFORM SERVICE WASTEWATER

NITRILE GLOVES
2/23/26 UNIFORM SERVICE STREETS
1 BOX OF NITRILE GLOVES
Total:
03/04/26 MISSION LINEN SUPPLY 2/16/26 MATS FOR PW ADMIN BUILDING Total:
03/04/26 ROSE ALBERTO WASHING MACHINE REBATE #184 Total:
03/04/26 MODESTO WINDUSTRIAL CO BUSHINGS FOR CONDUIT BOXES Total:
03/04/26 MODESTO BATTERY COMPANY & SUPPLIES, INC. BATTERIES FOR LOCATOR 2/23/26 NITRILE GLOVES FLEET
2/23/26 UNIFORM SERVICE FLEET
2/16/26 UNIFORM SERVICE FACILITIES
2/23/26 UNIFORM SERVICE FACILITIES
2/23/26 UNIFORM SERVICE WTR/WTR CONSERVATION
Total:

PIPE WRENCH
Total:
03/04/26 MOTOROLA SOLUTIONS, INC RADIO FOR NEW K-9 ITEM 4

ATTACHMENT A
3/16/2026
12 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
22600024 2,450.00
2,450.00

44.18 27.53
141.18
371.80
584.69
1,808.25
1,772.08
124.12
204.66

86.53 464.65
223.85
1,103.81
173.79
173.79
104.20
104.20
1,000.00
1,000.00
2,617.40
2,617.40
2,111.71
471.82
1,903.16
4,486.69
1,000.00
1,000.00
Total:
03/04/26 O'REILLY AUTO PARTS LIGHT FOR STOCK
03/04/26 NORTHSTAR ENGINEERING GROUP, INC. JAN 2026 PLANNING PROJECT MANAGEMENT SERVICES 03/04/26 PRICE FORD OF TURLOCK, INC. SEATBELT UNIT 10-110-21 MOLDING FOR UNIT 10-102-23
FOG LIGHT BRACKET UNIT 10-102
03/04/26 PACE SUPPLY CORP MAG METER AMPLIFIER
Total:

A/C SEAL KIT FOR UNIT 10-244-13
A/C CONDENSOR FOR UNIT 10-244-13

BATTERY
Total:
03/04/26 RAYCO INDUSTRIAL SUPPLY INC FILTER @ FS #15 Total:
03/04/26 QUADIENT, INC. 03/14/26 - 06/13/26 POSTAGE MTR RNTL & ONLINE MA Total:

EXHAUST PIPES FOR UNIT 10-104-21
TRANS MOUNT FOR UNIT 10-104-21
Total:
03/04/26 SITEONE LANDSCAPE SUPPLY, LLC IRRIGATION PARKS

APHIDS TREATMENT

ROW IRRIGATION
03/04/26 RELIASTAR LIFE INSURANCE COMPANY FEB 26 ACCIDENT/ILLNESS/HOSPITAL Total:
03/04/26 IRMA GUTIERREZ GUTIERREZ P9589 1/10/26 RFND CC LRG RM Total:

Total:

Total:
03/04/26 JEFF C BURROWS PLC HEADWORKS EMERGENCY DIAGNOSIS & REPAIR ITEM 4

ATTACHMENT A
3/16/2026
13 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
3,138.05
3,145.95
3,153.05
9,437.05
22600051 5,537.40
22600051 8,994.00
22600051 5,122.10
22600051 23,962.00
43,615.50
22600066 6,750.00
22600066 6,750.00
13,500.00
269.92
269.92
22500084 288.75
22500084 330.00
22500084 495.00
22500084 165.00
22500084 577.50
1,856.25
1,278.03
221.44
1,499.47

46.41 173.36
219.77
2,499.15
2,499.15
03/04/26 STANISLAUS COUNTY STAN COUNTY INSPECTIONS DEC 2025 STAN COUNTY PLAN CHECK DEC 2025
STANCOUNTY INSPECTIONS JANUARY 2026
JAN 2026 BASIC/VOLUNTARY LIFE INS PREMS
FEB 2026 BASIC/VOLUNTARY LIFE INS PREMS
Total:
03/04/26 STANDARD INSURANCE MAR 2026 BASIC/VOLUNTARY LIFE INSURANCE PREMS Total:
03/04/26 TRUEPOINT SOLUTIONS, LLC. CONSERO INTACCT 3/31/25 ACCELA SUPPORT 1/1-1/31/26 PLANNING, COMMUNICATION & ENGAGEMENT
Total:
03/04/26 THE PAPE GROUP INC FILTERS FOR FLEET
STANCOUNTY PLAN CHECK JAN 2026
Total:
03/04/26 THE LEW EDWARDS GROUP 12/1-12/31/25 PLANNING, COMMUNICATION & ENGAGEMENT 03/04/26 VALLEY WIDE COOPERATIVE GLUE TRAPS FOR H. WORKS AERATOR BLDG (4) MONTEREY WEED WACKER FOR WATER DEPT.

Total:
03/04/26 VALLEY TIRE SALES, INC. FOAM FILL
2 TIRES
Total:

ACCELA SUPPORT SEPTEMBER 2025
ACCELA SUPPORT MAY 2025
ACCELA SUPPORT JUNE 2025
ACCELA SUPPORT JUL 2025
Total:
03/04/26 VERIZON WIRELESS AUG 5 - SEP 4 2025 VERIZON SV Total:

ITEM 4

ATTACHMENT A
3/16/2026
14 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
22600073 2,072.00
22500043 9,348.00
11,420.00
22500117 1,120.00
1,120.00
3,231.26
977.52
4,208.78

71.53 71.53
1,520.00
1,520.00
22600002 49.95
22600002 49.95
22600002 49.95
22600002 105.00
22600002 49.95
22600002 105.00
22600002 89.95
22600002 149.85
22600002 154.95
22600002 49.95
22600002 49.95
22600002 105.00
150.00
1,159.45
200.38
200.38
03/04/26 WILLDAN FINANCIAL SERVICES WTR & WW RATE STUDY UPDATE AGRMNT RESO25-017 FY25 Total:
03/04/26 WESTWOOD PROFESSIONAL SERVICES 1/1-31/26 - CROWS LANDING IRR DESIGN (2520) 1/1-31/26 - CENTRAL & HACKETT CORRIDOR
Total:
03/04/26 WOOD RODGERS, INC. COPPER TRAILS MASTER PLAN Total:
03/04/26 WILLEY PRINTING CO., INC. BUSINESS CARDS FOR JC Total:
03/04/26 WILLE ELECTRIC SUPPLY, INC. 119 PHOTO CELLS FOR STREET LIGHTS 100 PHOTO CELLS FOR STREETLIGHTS
Total:

Total:
03/11/26 A & B TRUCK PARTS, INC FILTERS
FIRE AND SECURITY ALARM SERVICES @CITY HALL/ANNEX
FIRE AND SECURITY ALARM SERVICES @PW YARD
FIRE AND SECURITY ALARM SERVICES @ CC
FIRE AND SECURITY ALARM SERVICES @ PW-FIRE

SERVICE CALL OUT TO PW CORP YARD
FIRE AND SECURITY ALARM SERVICES @MUSEUM/WHITMORE
FIRE AND SECURITY ALARM SERVICES @WHITMORE MANSION
FIRE AND SECURITY ALARM SERVICES @CC (FIRE)
FIRE AND SECURITY ALARM SERVICES @ WATER YARD
FIRE AND SECURITY ALARM SERVICES @ RIVERBLUFF PARK
03/11/26 1ST SECURITY & SOUND, INC FIRE AND SECURITY ALARM SERVICES @ COSTA FIELDS FIRE AND SECURITY ALARM SERVICES @PARKS YARD
FIRE AND SECURITY ALARM SERVICES @LEGION HALL
Total:

ITEM 4

ATTACHMENT A
3/16/2026
15 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
497.12
497.12
100.00
100.00
22600001 4,312.00
4,312.00

97.47 105.15
232.16

40.63 200.76
676.17
501.39
216.11
163.76
152.95
296.30
1,330.51

88.36 88.36
5,772.42
5,772.42
589,321.21
589,321.21
6,003.20
6,003.20
335.00
335.00
Total:
03/11/26 ALPINE PROTECTIVE SOLUTIONS LLC CITY SECURITY SERVICES FOR EIGHT PARKS Total:
03/11/26 ADVANCED TECHNOLOGY DISTRIBUTORS, INC MAR 2026 SCADA SYSTEM MONTHLY MONITORING 03/11/26 ACCORD SYSTEMS, LLC FEB 26 ACA REPORTING FEE 03/11/26 AT&T 01/20/2026 - 02/19/2026 CALNET SVC
01/20/2026 - 02/16/2026 CALNET SVC
01/20/2026 - 02/19/2026 ATT T-1 LINE

RUBBER BOOTS

MIXING CUP, MAGNETIC FLOOR SWEEPER

WELDING TORCH KIT
12 VOLT WATER PUMP
Total:

Total:
03/11/26 AMAZON CAPITAL SERVICES, INC. SUBMERSIBLE PUMP FOR DEWATERING 03/11/26 BACKFLOW APPARATUS & VALVE CO INC CITY BACKFLOWS REPLACEMENT PARTS Total:
03/11/26 AT&T MOBILITY JAN 24 - FEB 23 2026 MODEMS FOR PD/FIRE VEHICLES Total:
01/20/2026 - 02/19/2026 CALNET SVC
CLETS LINE - 1/13/26 - 2/12/26
Total:
03/11/26 BSK ASSOCIATES WATER QUALITY SAMPLES
Total:
03/11/26 BRIAN ALBONETTI FEB 26 BACKGROUND INVESTIGATIONS Total:
03/11/26 BERTOLOTTI CERES DISPOSAL, INC FEB 2026 BERTOLOTTI FRANCHISE FEE Total:

ITEM 4

ATTACHMENT A
3/16/2026
16 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
146.31
167.98
314.29
189.00
260.00
449.00

25.00 25.00
380.00
380.00
22600030 669,331.58
669,331.58
143,460.53
143,460.53

80.00 80.00
146.98

40.26 187.24
22600059 5,780.33
5,780.33

25.56 25.56

66.00 128.00
194.00
1,500.00
1,500.00
03/11/26 CERES BODY SHOP, INC DOLLY TOW
Total:
03/11/26 CAR WASH PARTNERS, INC. 2/1/ -2/28/25 CAR WASHES FOR PD 2/1/ -2/28/25 CAR WASHES FOR PW
Total:
03/11/26 CALIFORNIA LANDSCAPE SUPPLY, INC. ¼ OF CONCRETE FOR 2005 CENTRAL AVE ½ YARD OF CONCRETE AT CENTRAL AND SERVICE
Total:
03/11/26 CITY OF MODESTO 1/01 - 01/31/2026 NORTH CERES SEWER SRVCS Total:
03/11/26 CITY OF MODESTO MAR 26 CERES FIRE SRVS CONTRACT Total:
03/11/26 CHARTER COMMUNICATIONS 3/4-4/3/26 INTERNET FOR SCADA WW Total:
03/11/26 DAVID LANGLEY INC. MARCH 26 JANITORIAL SVCS COMM CNTR Total:
03/11/26 CRESCENT SUPPLY RECRUIT UNIFORM - DIAZ - SHOES

RECRUIT UNIFORM - MADSEN - SHORTS
Total:
03/11/26 CONDIT, GARY MATTHEW G. CONDIT MTHLY PC STIPEND 3/1-3/31/2026 Total:
03/11/26 DIESEL LAPTOPS, LLC SOFTWARE
Total:
03/11/26 DEPT OF JUSTICE ACCOUNTING OFFICE JAN 26 FINGERPRINT APPS FEB 26 FINGERPRINT APPS
Total:
03/11/26 DELTA DENTAL OF CALIFORNIA COBRA PREMIUMS DECEMBER 2025 Total:

ITEM 4

ATTACHMENT A
3/16/2026
17 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name

80.00 80.00
756.00
756.00
135.00
135.00
2,218.75
2,218.75
121.29
304.53
835.78
1,665.88
2,927.48
144.00
144.00

80.00 80.00
22600034 75,010.83
75,010.83
107.19
107.19

29.13 987.00
1,016.13
195.09
183.17
378.26
22600056 5,797.75
5,797.75
03/11/26 ELEVATOR TECHNOLOGY, INC. ELEVATOR SERVICE @ CC 12/1-12/31/25 Total:
03/11/26 EDEN K9 CONSULTING & TRAINING CORP. KATS PLATFORM FOR K9 TRACKING Total:
03/11/26 DORIS DAKIN PEREZ D. PEREZ MTHLY PC STIPEND 3/1-3/31/2026 Total:

CURBSTOPS FOR SERVICE TRUCK
Total:
03/11/26 FORD MOTOR COMPANY TELEMATICS FOR P.D CARS 03/11/26 FERGUSON US HOLDINGS, INC COMMUNITY CENTER PLUMBING REPAIR

SERVICE LINE/ REPLACEMENT / STOCK

LINE CRIMP TOOL GATE VALVE WRENCH
03/11/26 BERNARD A LICATA FEB 26 CONTRACT SERVICES Total:

Total:
03/11/26 GARTON TRACTOR, INC AXLE WASHER
Total:
03/11/26 FIRE RISK MANAGEMENT SERVICES APRIL 2026 SPECIAL ASSESSMENT Total:
03/11/26 FRANCISCO MIRELES JR F. MIRELES MTHLY PC STIPEND 3/1-3/31/2026

1.88 TONS OF ASPHALT FOR CITY PATCHING
Total:
03/11/26 GOUVEIA ENGINEERING, INC. PRINCIPAL PLANNER SERVICES 11/1-11/30/2025

HIGH ROLL GATE FOR FENCE REPAIR AT SMYRNA PARK
Total:
03/11/26 GEORGE REED, INC. 2.01 TONS OF ASPHALT FOR PATCHING Total:
03/11/26 GARYS FENCING & WIRE SUPPLY, INC STEEL FOR FENCE REPAIRS AT PARKS Total:

ITEM 4

ATTACHMENT A
3/16/2026
18 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
-281.42
281.42

35.00 211.99
354.61
601.60
835.94
1,388.33
122.14
2,346.41
8,501.21
6,411.18
14,912.39

70.61 70.61
2,173.72
9,106.19
22600009 1,951.49
22600009 1,677.02
22600009 1,794.33
22600009 1,700.87
22600009 1,804.57
22600009 660.00
20,868.19
1,792.72
1,070.98
2,863.70

80.00 80.00
03/11/26 VALLEY FARM SUPPLY STORES, INC 1 POLE PRUNER, CHAIN SAW FUSE 3 WEED EATERS
HITCH FOR TOWING `

AED'S AND CPR UNI PADS

BRUSH/ CLEANING FILTERS

USA PAINT SUPPLIES

USA PAINT
Total:
03/11/26 GRAINGER RETURN ON AED AND CPR PADS
Total:
03/11/26 INDUSTRIAL ELECTRICAL CO. GEN. SERVICE CALL OUT REPAIR @ PD 2/16-28/26 FUEL FOR PD
Total:
03/11/26 HUNT OIL OF CALIFORNIA PROPANE UNIT 30-230-23 Total:
03/11/26 HUNT & SONS LLC 2/16-28/26 FUEL FOR PW
03/11/26 INFOSEND, INC. JAN 2026 CITIZEN SURVEY BILL INSERT FEB 2026 COMMUNITY SURVEY INSERT
Total:

GENERATOR PREVENTATIVE MAINTENANCE WELL # 41

GENERATOR PREVENTATIVE MAINTENANCE BLAKER RES
Total:

VFD WATER PUMP EQUIPMENT

GENERATOR PREVENTATIVE MAINTENANCE BLAKER RES TANK
GENERATOR PREVENTATIVE MAINTENANCE WELL 35
GENERATOR PREVENTATIVE MAINTENANCE WELL #42
GENERATOR PREVENTATIVE MAINTENANCE WELL #34
03/11/26 JAMMU, RULDIP RJ JAMMU MTHLY PC STIPEN 3/1-3/31/2026 Total:

ITEM 4

ATTACHMENT A
3/16/2026
19 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
208.00
188.30
396.30
500.00
500.00
1,000.00
131.00
738.69
639.70
738.69
515.67
386.16
3,149.91

60.19 60.19
132.24
132.24
225.00
225.00

10.00 129.23

70.78 53.85

61.32 31.73
03/11/26 JOCELYN E. ROLAND PH.D., ABPP, INC FEB 26 PRE-EMPLOYMENT PSYCH SCREENING FEB 26 PRE-EMPLOYMENT PSYCH SCREENING
Total:
03/11/26 JANA KIRCHERT 2/16-26/26 GET FIT/ZUMBA GOLD CLASSES FEB 26 BEGIN LINE DANCING CLASSES
Total:
03/11/26 ANGELICA MARTINEZ GAS REIMBURSEMENT - CACEO MODULE II Total:

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES
Total:
03/11/26 MICROBAC LABORATORIES, INC TURLOCK EXPORT ANALYSIS #2 FEB 26

DRINKING WATER QUALITY SAMPLES

DRINKING WATER QUALITY SAMPLES
3/2/26 UNIFORM SERVICE STREETS
3/2/26 UNIFORM SERVICE PARKS
3/2/26 UNIFORM SERVICES FLEET
03/11/26 MISSION LINEN SUPPLY 3/2/26 MATS FOR PW ADMIN BUILDING

HEAVY DUTY NITRILE GLOVES
3/2/26 UNIFORM SERVICE WASTEWATER
03/11/26 MICHELE BRUMBAUGH TOILET REBATE #185 (3 TOILETS @ $75 EA) Total:
03/11/26 DELILAH VASQUEZ MAR26 CSJVRMA MEETING D.VASQUEZ Total:

ITEM 4

ATTACHMENT A
3/16/2026
20 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name

24.58 29.30

72.36 483.15
1,149.01
1,149.01
125.00
125.00
348.39
348.39
3,500.72
3,500.72
5,873.65
670.30
6,543.95
1,240.76
1,240.76
608.52
2,176.68
1,510.96
185.09
906.15
5,387.40
3/2/26 UNIFORM SERIVCE FACILITIES
3/9/26 UNIFORM SERVICE FACILITIES
Total:
03/11/26 MODESTO WINDUSTRIAL CO PVC AT ROCKEFELLER Total:
03/11/26 MODESTO POLICE DEPARTMENT TRAINING UNIT CHRIM: TUITION SFST COURSE 03/23-25/26 3/2/26 UNIFORM SERVICE WTR/WTR CONSERVATION
Total:
03/11/26 MODESTO COLOR CENTER PAINT FOR GRAFFITI

SWEEPER FLAP SET
Total:
03/11/26 NORTHSTAR CHEMICAL CL2 AT WELL# 39-40
Total:
03/11/26 MUNICIPAL MAINTENANCE EQUIPMENT INC SEWER TRACTOR CAMERA REPAIR Total:
03/11/26 MOTOR PARTS DISTRIBUTORS INC VALVE COR,COOLING FAN,BULBS,FILTERS,WIPERS,BRK PAD

FERTILIZER FOR PARKS

FERTILIZER FOR PARKS

CHEMICALS

HERBICIDE FOR PARKS
Total:

Total:
03/11/26 NUTRIEN AG SOLUTIONS, INC HERBICIDE FOR PARKS ITEM 4

ATTACHMENT A
3/16/2026
21 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name

50.89 99.66

28.16 33.55
212.26

93.28 402.02
495.30
6,264.81
6,264.81
464.72
464.72

96.00 96.00

48.00 48.00

84.53 42.27
357.64
167.30
829.22

18.42 1,123.10
2,622.48
495.00
495.00
15,597.21
15,597.21
03/11/26 O'REILLY AUTO PARTS WELDING HELMET, BATTERIES VEHICLE PROTECTANT

EQUIPMENT COOLANT

DEODORIZER
Total:
03/11/26 PACIFIC GAS & ELECTRIC 02/03/206 - 03/04/2026 PG&E SRVCS 3101 FOWLER RD

TONER FOR DISPATCH
Total:
03/11/26 PACE SUPPLY CORP WATER METERS 2"
EVAP VALVE UNIT 10-133-26
Total:
03/11/26 ODP BUSINESS SOLUTIONS, LLC UB CREDIT CARD RECEIPT ROLLS Total:
03/11/26 PRICE FORD OF TURLOCK, INC. SCREW PINS
Total:
03/11/26 PORAC-PEACE OFFICERS RESEARCH ASSOC DUES FOR RESERVE OFFICERS - APRIL - JUNE 2026 Total:
03/11/26 PORAC LEGAL DEFENSE FUND LEGAL DEFENSE FUND - RESERVE OFFICERS - APR-JUN 26 Total:
03/11/26 RAYMOND R. LOPEZ OUTSIDE SERVICE ON VEHICLE 10-228-20 RUBBER FLOOR UNIT 20-25-220
Total:
03/11/26 BARRY R. VALLERAND OUTSIDE CITY TOWING SERVICE CALL

RIVETS/ NUTS
SHOCK ABSORBERS UNIT 10-156-20
A/C PARTS UNIT 40-200-19
A/C COMPRESSOR AND PARTS UNIT 35-233-18

HOSE FOR FLEET
Total:

ITEM 4

ATTACHMENT A
3/16/2026
22 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name

80.00 80.00
338.56
338.56
1,086.84
113.67
154.15
1,354.66
2,519.28
2,519.28
1,219.00
1,219.00
630.41
1,711.11
2,341.52
22600036 201,519.75
22600036 11,011.00
212,530.75
225.00
225.00
225.00
675.00
22600051 5,354.30
22600051 4,706.79
10,061.09
695.27
695.27

91.20 91.20
Total:
03/11/26 SAFE T LITE OF MODESTO INC 10 TRAFFIC SIGNS Total:
03/11/26 RYAN HERCO PRODUCTS CORP CHECK VALVE
03/11/26 ROBERT R GOBBLE JR R. GOBBLE MTHLY STIPEND 3/1-3/31/2026 03/11/26 SHARP ELECTRONICS CORPORATION 03/01 - 03/31/2026 MNTHLY PYMT 8 COPIERS 1 PRINTER Total:
03/11/26 SHARP ELECTRONICS CORPORATION SEP 19 - DEC 30 2025 DUPLICATING COST Total:

GLOVES 14 MIL FOR WATER DEPT.

USA BLUE (WATER) FLAGS
Total:
03/11/26 STANISLAUS CARDIOLOGY FEB 26 PRE-EMPLOYMENT SCREENING FEB 26 PRE-EMPLOYMENT SCREENING
FEB 26 PRE-EMPLOYMENT SCREENING
03/11/26 STANISLAUS ANIMAL SERVICES AGENCY ANIMAL CONTROL OPERATIONAL COST JAN - MAR 2026 ANIMAL CONTROL DEBT SERVICE JAN - MAR 2026
Total:
03/11/26 SITEONE LANDSCAPE SUPPLY, LLC IRRIGATION FOR PARKS

TREE POLES AND STAKES
Total:

Total:
03/11/26 SUN BADGE COMPANY INC BADGE RENUMBERING
STAN COUNTY INSPECTION FEB2026
Total:
03/11/26 STERICYCLE, INC HAZARDOUS WASTE PICKUP
Total:
03/11/26 STANISLAUS COUNTY STAN COUNTY PLAN CHECKS FEB2026 Total:

ITEM 4

ATTACHMENT A
3/16/2026
23 Date PO # Invoice Description Amount
Voucher List
City of Ceres
Vendor Name
6,447.47
6,447.47
470.00
470.00

74.81 68.99
143.80
750.00
750.00
30,745.71
30,745.71
2,812.15
2,812.15
1,790.09
1,790.09
1,899.88
581.82
922.19
362.16
3,766.05

30.50 30.50
11,901.25
11,901.25
22600000 2,375.00
2,375.00
2,585,146.77
Total:
03/11/26 THE SHERWIN-WILLIAMS CO. STORE #8149 PAINT FOR F/S #18 Total:
03/11/26 INTERNATIONAL TELE-PATH PW YARD CAMERA REPAIR 03/11/26 T-MOBILE USA, INC 01/21/2026 - 02/20/2026 T-MOBILE PHONE SRVCS Total:
03/11/26 ULINE, INC REPLACEMENT FLAMMABLES CABINET Total:
03/11/26 U.S. BANK VISA FEB 26 VISAS
PAINT AT F/S #18
Total:
03/11/26 TOP DOG POLICE K9 TRAINING AND CONSULTING, LLC K9 TRAINING - FEB 1-28, 2026 4 TIRES
2 TIRES
2 TRAILERS TIRES
Total:

Total:
03/11/26 VALLEY TIRE SALES, INC. SWEEPER TIRES FOAM FILL Total:
03/11/26 US ARMOR CORPORATION BULLET PROOF VEST - KHUON Vouchers in this report Total vouchers:
03/11/26 WEST COAST ARBORISTS, INC. TREE MAINTENANCE AND REMOVAL PROGRAM 2/1-1/15/26 Total:
03/11/26 VIP AUDIO VISUAL COMPANY INC AV UPGRADES TO COUNCIL CHAMBER Total:
03/11/26 VALLEY WIDE COOPERATIVE GRASS FERTILIZER Total:

ITEM 4
Vendor: US BANK VISA
Check Date: 3/11/2026
Invoice No.: Feb-26
Invoice Descritpion: FEB 26 VISAS

CARD HOLDER CHARGE DESCRIPTION TOTAL
JOSEPH CHAVEZ 12/5/26 CHRISTMAS EVENT DECORATION 18.59
FALLON MARTIN CMCA MEMBERSHIP RENEWAL, D.DUNFORD: REFUND LOCC CM CONF REGISTRATION (400.00)

ANGELICA HERNANDEZ

REQUIRED ANNUAL OSHA POSTERS & OFFICE SUPPLIES, REFRESHMENTS FOR ORAL PANEL, BADGE PRINTER COLOR RIBBON, LUNCH FOR ORAL PANEL 585.53
ABRAHAM OCHOA JR RIVERBLUFF/ BATTERIES, WW/ SILICONE CAULKING, 1733 DOYAL/ PLYWOOD 166.49

JOSHUA CASAS
SHOP ORGANIZATION BINS, 3 FLASHLIGHTS, LEAK REGISTRY REPORTING CLASS- ELYSE D, EVENT SUPPLIES FOR

COMMUNITY CLEAN UP- TONI CORDELL, EXPO REGISTRATION -OMAR, EXPO REGISTRATION - JOHNATHAN G, EXPO REGISTRATION - TONI L 2,317.61

JESSICA PULLIAM

OFFICE SUPPLIES, SENIOR EVENT TABLECLOTH CLEANING, COUNTY SENIOR EVENTS, KIDS CRAFT CLASS & OFFICE SUPPLIES, SENIOR ACTIVITY SUPPLIES, 3/28/26 CITY EASTER EVENT SUPPLIES, SENIOR PROGRAMMING, SENIOR LOUNGE SUPP 2,099.41

MARCY PEDERSON
CCJWSA 2026 MEMBERSHIP, ACADEMY RECRUIT SUPPLIES - DUFFLE BAGS, ACADEMY RECRUIT SUPPLIES - MOUTHGUARDS, KEYBOARD FOR CODE CONFERENCE ROOM, MAIL BADGES TO SUN BADGE TO BE REFURBISHED, 3,995.07

JOHNNY CARRILLO

ELECTRICAL -PW ADMIN, PADLOCKS-STOCK, FLOOR MATS-PD, COAT HOOK- CITY HALL, DISTILLED WATER FLOOR SCRUBBER @ LEGION HALL, INK TONER- FACILITIES, DOOR CLOSERS, PLUMBING, OFFICE SUPPLIES, INTERVIEW PANEL- LUNCHEON, OFFICE SUPPLIES, CAULKING- FS 18, VACUUM CLEANER PARTS 1,184.45

SONIA LEDEZMA
(1) ERGO MOUSE, PRINTING PAPER CITY HALL, LUNCH FOR ACCOUNTANT INTERVIEW PANEL 02/10/26, (2)

WIRELESS MOUSE AND KEYBARD COMBO FOR UB COUNTER, ELECTRIP STAPLER, TAPE DISPENSE, BULLETIEN STRIP BOARD 453.87
SCOTT KEYS FILTERS RETURN, SEAL, FILTERS, SPOTLIGHT 835.46

JONATHAN FREDERICK

REPLACEMENT SSD FOR PD COMPUTER, MINI PC FOR PORTABLE BACKUP NETWORK CONNECTION, TV

STREAMING DEVICE FOR DIGITAL SIGNAGE AT COMMUNITY CENTER, MINI PC FOR VPN SERVER AT PD, OUTDOOR GRADE LOCKING TV MOUNT FOR DIGITAL SIGNAGE AT COMM. CENTER, IPHONE OTTERBOX CASE FOR PD, WILDCARD SSL CERTIFICATE FOR MULTIPLE SERVERS, DOMAIN NAME RENEWALS 1,640.79

TRAVIS HUDSON

STORAGE BINS FOR INVESTIGAITONS, CRIME SCENE TENT FOR INVESTIGAITONS, EVIDENCE PLACARDS FOR INVESTIGATIONS, CACEO MODULE 2 TRAININS FOR DE LA CRUZ, CACEO MODULE 2 TRAINING FOR MARTINEZ, POSSEE BOXES AND HAND CARTS FOR INVESTIGATIONS 2,042.12 ITEM 4

BOBBY TITUS

BATTERIES FOR HANDHELDS, ZACH TRIO BOOTS, METER COVERS/WELLS, LEAK REGISTRY REQUIRMENTS, METER COVERS/WELLS, ELLENS WATER USE EFFICENCY #1, FILTER UBIT/ VALVE/ POWER TOOL BATTERIES 2,391.06 JULIAN AGUIRRE SUPPLIES FOR PLANNING STAMP/PAPER/PPCLICKER 116.40

MATTHEW WILLIAMS

OPERATOR CERTIFICATION, STATE FEE, LUMBER FOR SAMPLER PLATFORM, BINDER & KEYBOARD/ MOUSE COMBO, NUTS AND SCREWS, TRAINING SEMINAR X4 OPERATORS, DI WATER FOR LAB TESTING, BUCKETS & WALL

PLATE, ROOMS FOR CONFERENCE, FEE FOR ROOM, BATTERIES FOR BARRICADE LIGHTS, OPERATOR CERTIFICATION RENEWAL, STATE FEE, CWEA ANNUAL CONFERENCE FULL ADMISSION 2,967.83

CRISTINA AGUILAR
1/22-2/21/26 ZOOM MEMBERSHIP SUBSCRIPTION, LUNCH FOR REGIONAL CM MONTHLY MEETING, 2/22-3/21/26 ZOOM MEMBERSHIP SUBSCRIPTION 212.81

KENNETH E VAUGHN

CALANDERS FOR PARKS SHOP, MISC FOR BOOTS COLE BODEY, BOOTS FOR COLE BODEY, IRRIGATION ELECTRIC COMPONENTS 354.92

AL BURKETT

CABLE TIES, TONERS FOR PRINTING USA'S, STREETS ORAL PANEL INTERVIEW LUNCH, CERTIFICATION RENEWAL GRADE 1, BREAKER FOR BLUERIDGE LIFT STATION 955.91

KEITH GRIEBEL
TUITION: FUTURE LEADERSHIP 3/2-3/26, LODGING: ICI ROBBERY COURSE PETERSEN ATTENDING, STORAGE BINS

FOR ARMORY, AMMO STORAGE AND TOOL CART FOR ARMORY, ROLLING CARTS FOR ARMORY, DISPATCH HEADSETS, 4) FOREGRIPS FOR RIFLES, LODGING: D. NIEUWENHUIS FOR 1ST MOD OF SLI, TUITION: KASSANDRA POND CTO ONLINE COURSE 3,762.17

JEFFERY GODFREY

TRAFFIC UNIT GLOVES AND GLASSES, MOTOR BOOTS FOR BRYAN AND KJ, E CITE PAPER FOR TICKET WRITERS, UNIFORM ALLOWANCE, HOSTED LEX MEETING BREAKFAST 1,167.63

VANESSA PORTILLO
CSMFO CHAPTER MTG 2.12.26, GFOA 2026 CITY MEMBERSHIP RENEWAL, GFOA CONFERENCE REGISTRATION 6/28-7/01 V. PORTILLO 1,160.00

DELILAH VASQUEZ
JAN 26 TRAINING HYATT HOTEL, JAN 26 PARKING LOT FEES FOR TRAINING, JAN 26 EMPLOYEE RECOGNITION AWARDS, JAN 26 EMPLOYEE RECOGNITION GIFTS 1,525.74
SAMIR ROYAL FOOD FOR CLEAN UP EVENT (LUNCH), OFFICE FURNITURE/ STORAGE FOR TONI 1,191.85 Grand Total 30,745.71
ITEM 4
ITEM 4

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: March 23, 2026
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Michael R. Beltran II, P.E., Director of Engineering/City Engineer [email protected], (209) 538-5775
SUBJECT:

Resolution No. 2026 -XXX, Approving a Professional Services Agreement with Goodwin Consulting Group in the Amount of $55,000 for Consulting Services to Establish Community Facilities District No. 4 and Authoriz ing the City Manager to Execute the Agreement
RECOMMENDED COUNCIL ACTION:

Staff recommends that the City Council adopt a resolution authorizing the Professional Services Agreement for consultant services between the City of Ceres and Goodwin Consulting Group, in the amount of $ 55,000, to provide professional services necessary to establish Community Facilities District No. 4 (CFD No. 4) and authorize the City Manager to execute the agreement.

I. BACKGROUND:

The City currently utilizes Community Facilities Districts to fund and administer municipal services for defined development areas, including Community Facilities District No. 3.

As the City continues to experience new residential and commercial development, it is necessary to establish a new services-based Community Facilities District to ensure that ongoing municipal service costs associated with new growth are appropriately funded.

Community Facilities District No. 4 (CFD No. 4) is proposed to include all new residential and commercial developments within the City that are not already subject to the existing services CFD.

CFD No. 4 will be established as a services district, and is intended to fund, at a minimum, the following municipal services:
• Police services
• Fire services
• Landscaping and landscape maintenance
ITEM 5
• Storm drain system maintenance
• Storm drain pump station operations and maintenance
• Street lighting operations and maintenance
The City proposes to retain Goodwin Consulting Group to assist with the legal, financial, and procedural steps necessary to form CFD No. 4 in accordance with applicable State law and City practices.

These services include, but are not limited to:
• Preparation of formation proceedings and documentation • Coordination with City staff and City Attorney
• Development of rate and apportionment methodology
• Assistance with public noticing, hearings, and formation actions • Coordination through final establishment of the district II. REASONS FOR RECOMMENDATION:

Establishing CFD No. 4 is necessary to ensure that new residential and commercial development contributes proportionately to the ongoing cost of public services that directly serve those developments.

The creation of citywide services CFD for future development will:
• Protect the City’s General Fund from absorbing new growth-related service costs; • Provide a consistent and transparent funding structure for new development; and • Support long-term fiscal sustainability for public safety and infrastructure -related services.

Goodwin Consulting Group specializes in the formation of community facilities districts and public financing programs for California municipalities and has extensive experience assisting cities with the creation of services CFDs.

Approval of this agreement will allow staff to begin the formal process of establishing CFD No. 4 in a timely manner to support upcoming and future development activity.

III. FISCAL IMPACTS:

The cost for professional consulting services to establish CFD No. 4 is $55,000.

Sufficient funds are available in the departmental Fiscal Year 2026 Adopted Budget within the contract services appropriations 10019.029900 to support this agreement. No additional budget appropriations are required to support this agreement.

This agreement is for consulting services only and does not obligate the City to levy special taxes until the formation process is completed and approved by the City Council.

IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

The recommended action supports the following elements of the City’s Strategic Plan:

ITEM 5
1) Infrastructure – Ensure that the community has adequate, well -maintained infrastructure that supports a strong economy and quality of life. 2) Economic Development – Improve long -term fiscal sustainability by reducing operating costs of major public facilities.

V. POLICY ALTERNATIVES:

The City Council can choose to:

1. Approve the request as recommended by staff; or

2. Deny the request , which would delay the City’s ability to implement a long -term services funding mechanism for new development.; or

3. Continue to a future City Council Meeting.

VI. INTERDEPARTMENTAL COORDINATION:

The proposed CFD No. 4 and associated consultant services have been coordinated between the Engineering, Finance, and Community Development Departments.

VII. PUBLIC PARTICIPATION:

Public participation will occur as part of the formal CFD formation process, including required public hearings and noticing prior to establishment of CFD No. 4.

VIII. ENVIRONMENTAL REVIEW:

The proposed action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, as it involves organizational and administrative activities of government that will not result in direct or indirect physi cal changes in the environment.

IX. STEPS FOLLOWING APPROVAL:

Upon approval, the City Manager will execute the Agreement and Staff will initiate formal proceedings to establish Community Facilities District No. 4.

Approved by: ____________________
Douglas D. Dunford,
City Manager

Attachments:

1. Attachment A – Resolution

2. Attachment B – Agreement

ITEM 5
ITEM 5

ATTACHMENT A
RESOLUTION NO. 2026-XXX

APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH
GOODWIN CONSULTING GROUP IN THE AMOUNT OF $55,000 FOR

CONSULTING SERVICES TO ESTABLISH COMMUNITY FACILITIES
DISTRICT NO. 4 AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE AGREEMENT

THE CITY COUNCIL
City of Ceres

WHEREAS, the City of Ceres desires to establish a new community facilities district to fund ongoing municipal services associated with new residential and commercial development; and

WHEREAS, the proposed Community Facilities District No. 4 (CFD No. 4) will be a services district and will include, at a minimum, police services, fire services, landscaping and landscape maintenance, storm drain maintenance, storm drain pump station operations and maintenance, and street lighting operations and maintenance; and

WHEREAS, the City desires to retain a qualified consulting firm to provide professional services necessary to form CFD No. 4, including preparation of formation documentation, development of the rate and method of apportionment, coordination with City staff and the City Attorney, and assistance with public notice and hearings; and

WHEREAS, Goodwin Consulting Group has demonstrated experience and expertise in the formation of community facilities districts and public finance consulting services for California public agencies; and

WHEREAS, staff has negotiated a Professional Services Agreement with Goodwin Consulting Group in the amount of $55,000 to provide consulting services required to establish Community Facilities District No. 4; and

WHEREAS, approval of this agreement is an administrative action that does not obligate the City to levy any special tax and does not constitute final formation of the district; and

WHEREAS, the proposed action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, as it involves organizational and administrative activities of government that will not result in direct or indirect physical changes in the environment.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ceres hereby approves a Professional Services Agreement with Goodwin Consulting Group in the amount of $55,000 for consulting services to establish Community Facilities District No. 4 and authorizes the City Manager to execute the agreement.

ITEM 5

ATTACHMENT A
PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on the 23rd day of March 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

________________________________
Javier Lopez, Mayor
ATTEST:

_________________________________
Fallon Martin, City Clerk

ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City
of Ceres and Goodwin Consulting Group

PROFESSIONAL SERVICES AGREEMENT
TH
IS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this ____ day of ___________, 2026 (the “Effective Date”), by and between the City of Ceres, a California municipal corporation (“City”), and Goodwin Consulting Group, a California corporation (“Professional”). City and Professional may herein be referred to individually as a “Party” and collectively as the “Parties.” There are no other parties to this Agreement.

RECITALS
A. City seeks to hire an independent contractor to perform a Fiscal Shortfall Analysis, CFD Formation, and CFD Administration services for the City (the “Project”).

B. Professional has submitted a proposal to City to provide such professional services.

A description of the services Professional proposes to provide (“Services”) is attached hereto as Exhibit A: Services . City desires to retain Professional to perform the Services, subject to the terms and conditions set forth in this Agreement.

C. The Parties have outlined the rates and method of payment to Professional for its performance of the Services under this Agreement, which shall be included in the Scope of Services in Exhibit A.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth below, the Parties agree as follows:

AGREEMENT
Section 1. Recitals . The recitals set forth above (“Recitals”) are true and correct and are hereby incorporated into and made part of this Agreement by this reference. In the event of any inconsistency between the Recitals and Sections 1 through 31 of this Agreement, Section 1 through 31 shall prevail.

Section 2. Term . The term of this Agreement shall be 1 year and will commence on __________________, 2026, and terminate on __________ ______, 20___ (“Term”) unless the Term is extended or the Agreement is terminated earlier pursuant to this Agreement.

Section 3. Extension of Agreement . City may elect to extend this Agreement for one (1) additional years, on the same terms and conditions, upon issuing an “Election to Extend Agreement” letter executed by the City Manager to Professional thirty (30) days prior to the expiration of this Agreement.

Section 4. Work .

4.1. Services . Subject to the terms and conditions set forth in this Agreement, Professional shall provide City the Services described in Exhibit A. If any conflicts exist between

ATTACHMENT B
ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

the terms of this Agreement and Exhibit A, the terms of this Agreement shall control. Any request for Services not included in Exhibit A will be considered a request for additional or modified Services (“Modification” or “Modifications”). Professional shall not receive additional compensation for any Modification of the Services unless the Parties agree otherwise in a writing executed by both Parties.

4.2. City Requested Modification of Services . City may, by written order, authorize Modifications to the Services described in Exhibit A. If such Modifications cause an increase in the cost or time required for performance of Professional’s Services, the Parties shall enter into a written amendment to this Agreement to adjust the Services and the rates to be paid to Professional.

The Services shall not be revised unless City and Professional mutually agree to a written amendment to this Agreement reflecting such revisions, additional compensation, time for performance, or such other terms or conditions mutually agreed upon by the Parties.

4.3. Professional Requested Modification in Services . Professional shall not be compensated for work outside the Services described in this Agreement, unless, prior to the commencement of the Services:

(a) Professional provides City with written notice that specific work requested by City or required to complete the Project is outside the agreed upon Services. Such notice shall:
(i) be supported by substantial evidence that the work is outside the Services; and (ii) set forth the Professional’s proposed course of action for completing the work and a specific request for City to approve the Modification to the Services; and

(b) City agrees that the work requires a Modification;

(c) The Parties execute a written amendment to this Agreement describing any Modification. Compensation for any additional Services shall not exceed ______ Dollars ($______) per hour.

Section 5. Compensation .

5.1. Amount, Time, and Manner of Payment for Professional Services . City shall pay Professional according to the rates and timing set forth in Exhibit A. City’s total compensation to Professional shall not exceed fifty five thousand Dollars ($55,000) (“Maximum Payment”) unless the Parties mutually agree in writing otherwise. Professional hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Professional anticipates and that Professional shall not be entitled to additional compensation unless agreed otherwise by the Parties.

5.2. Subsequent Payments . City shall make monthly payments in the amount invoiced by Professional within thirty (30) calendar days of receiving such invoice. In the event that an amount of an invoice is in dispute, City shall inform Professional of the amount and basis for the dispute and may withhold the amount which is in dispute until the dispute has been resolved.

ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

5.3. Invoices . Professional shall provide City with monthly invoices sufficiently evidencing Professional’s expenses and completion of the Services. All invoices furnished to City by Professional shall be in a form approved by City. The payments specified shall be the only payments made to Professional for performance of the Services, including compensation for any Modification. Professional shall submit all billings for Services to City within forty-five (45) days of the performance of such Services. City shall issue payment according to City’s customary procedures and practices for issuing payments to independent contractors.

5.4. Reimbursement . City shall pay Professional for reimbursable expenses specified in Exhibit A incurred related to Professional’s performance of the Services. Such reimbursable costs shall be invoiced and billed to City on a monthly basis, provided that in no event shall reimbursable expenses exceed zero Dollars ($0).

Section 6. Notice to Proceed . Professional shall not commence the performance of the Services until it has been given notice by City (“Notice to Proceed”).

Section 7 Time of Performance . Professional will commence performance of the Services within fourteen (14) calendar days of the date the Notice to Proceed. The time of performance is a material term of this Agreement relied on by City in entering into this Agreement.

Section 8. Professional’s Resources . Professional shall, at its sole cost and expense, furnish all facilities, equipment, materials, information, personnel, and administrative assistance which may be required to perform its obligations under this Agreement, with the exception of items of City assistance specified in Exhibit A.

S
ection 9. Duties of City. In order to permit Professional to render the services required hereunder, City shall, at its expense and in a timely manner: (a) Provide such information as Professional may reasonably require to undertake or perform the Services; (b) Promptly review any and all documents and materials submitted to City by Professional in order to avoid unreasonable delays in Professional’s performance of the Services; and (c) Promptly notify Professional of any fault or defect in the performance of Professional’s services hereunder.

Section 10. Time and Personnel Devoted to Services . Professional shall devote such time and personnel to the performance of this Agreement, as is necessary to perform the Services in compliance with this Agreement.

Section 11. Performance by Qualified Personnel; No Subcontracting . Services under this Agreement shall be performed only by competent personnel under the supervision and direct employment of Professional. Professional will conform with City’s reasonable requests regarding assignment of personnel, but all personnel, including those assigned at City’s request, shall be supervised by Professional. Professional is prohibited from subcontracting this Agreement or any part of it unless such subcontracting is expressly approved by City in writing. Neither Party shall, on the basis of this Agreement, contract on behalf of, or in the name of the other Party. An agreement made in violation of this provision shall confer no rights on any Party and shall be null and void.

ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

Section 12. Representations of Professional . City relies upon the following representations by Professional in entering into this Agreement:

12.1. Qualifications . Professional represents that it is qualified to perform the Services provided in Exhibit A and that it possesses the necessary licenses and permits required to perform the Services or will obtain such licenses or permits prior to the time such licenses or permits are required. Professional shall also ensure that all subcontractors are similarly licensed and qualified.

Professional represents and warrants to City that Professional shall, at Professional's sole cost and expense, keep in effect or obtain at all times during the Term of this Agreement, any licenses, permits, and approvals which are legally required for Professional to practice Professional's profession at the time the Services are rendered.

12.2. Professional Performance . Professional represents that all Services under this Agreement shall be performed in a manner consistent with the professional skill and care ordinarily provided by consultants practicing in the same or similar locality under the same or similar circumstances. Professional shall perform its services as expeditiously as is consistent with such professional skill and care and as necessary for the orderly progress of the Project. Professional agrees that, if a Service is not so performed, in addition to all of its obligations under this Agreement and at law, Professional shall re-perform or replace unsatisfactory Service at no additional expense to City.

12.3. No Waiver of Claims . The granting of any progress payment by City, or the receipt thereof by Professional, or any inspection, review, approval or oral statement by any representative of City, or state certification shall not, in any way, waive, limit, or replace any certification or approval procedures normally required or lessen the liability of Professional to re-perform or replace unsatisfactory Service, including, but not limited to, cases where the unsatisfactory character of such Service may not have been apparent or detected at the time of such payment, inspection, review or approval.

12.4. City’s Remedies are Cumulative . Nothing in this Section shall constitute a waiver or limitation of any right or remedy, whether in equity or at law, which City or Professional may have under this Agreement or any applicable law. All rights and remedies of City, whether under this Agreement or applicable law, shall be cumulative.

12.5. No Conflict of Interest . Professional represents that no conflict of interest will be created under state or federal law by entering into or in carrying out this Agreement.

Section 13. Conformity with Law and Safety. Professional shall observe and comply with all applicable laws, ordinances, codes, regulations, and permits of governmental agencies, including federal, state, municipal and local governing bodies having jurisdiction over any or all of the scope of Services, including all provisions of the Occupational Safety and Health Act of 1979 as amended, all California Occupational Safety and Health Regulations, the California Building Code, the Americans with Disabilities Act, any copyright, patent, or trademark law, and all other applicable federal, state, municipal and local safety regulations, appropriate trade association safety standards, and appropriate equipment manufacturer instructions. All Services performed by Professional must be in accordance with these laws, ordinances, codes, and regulations, including ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

the administrative policies and guidelines of City pertaining to the work. Professional’s failure to comply with any laws, ordinances, codes, or regulations applicable to the performance of the Services hereunder shall constitute a breach of contract. In cases where standards conflict, the standard providing the highest degree of protection shall prevail.

If a death, serious personal injury, or substantial property damage occurs in connection with the performance of this Agreement, Professional shall immediately notify City Manager by telephone. If any accident occurs in connection with this Agreement, Professional shall promptly submit a written report to City, in such form as City may require. This report shall include the following information: (a) Name and address of the injured or deceased person(s); (b) Name and address of Professional's subcontractor, if any; (c) Name and address of Professional's liability insurance carrier; and (d) A detailed description of the accident, including whether any of City's equipment, tools or materials were involved.

If a release of a hazardous material, substance, or waste occurs in connection with the performance of this Agreement, Professional shall immediately notify City Manager.

Section 14. Confidentiality . Professional understands and agrees that, in the performance of Services under this Agreement or in the contemplation thereof, Professional may have access to private or confidential information that may be owned or controlled by City and that such information may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to City (“Confidential Information”).

Professional shall not, either during or after the Term, disclose to any third party any Confidential Information without the prior written consent of City. If City gives Professional written authorization to make any such disclosure, Professional shall do so only within the limits and to the extent of that authorization. Professional may be directed or advised by the City’s General Counsel on various matters relating to the performance of the Services on the Project or on other matters pertaining to the Project and, in such event, Professional agrees that it will treat all communications between itself, its employees and its subcontractors as being communications which are within the attorney-client privilege.

Notwithstanding the foregoing, Professional may disclose Confidential Information required to be disclosed under law, provided that, prior to disclosure, Professional shall first give notice to City and make a reasonable effort to obtain a protective order requiring that City’s Confidential Information not be disclosed. This exception is limited to the extent disclosure is required under law.

Section 15. Ownership of Work Product . Any and all work, artwork, copy, posters, billboards, photographs, videotapes, audiotapes, systems designs, software, reports, designs, specifications, drawings, diagrams, surveys, source codes, professional or technical information or data, photographs, notes, letters, emails or any original works of authorship created by Professional or its subcontractors or subcontractors in connection with Services performed under this Agreement (“Products”) shall be works for hire as defined under Title 17 of the United States Code, and all copyrights in such works are the property of City. In the event it is ever determined that any Product created by Professional or its subcontractors, or subcontractors under this ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

Agreement, are not works for hire under U.S. law, Professional hereby assigns all copyrights to such Products to City. With the prior written approval of City’s point of contact for the Project, Professional may retain and use copies of such Products for reference and as documentation of its experience and capabilities.

All Products shall become the property of City irrespective of where located or stored, and Professional agrees to deliver all such documents and information to City, without charge and in whatever form it exists, on the completion of the Professional's Services hereunder. Professional shall have no ownership interest in such Products.

All work product of Professional under this Agreement, including written information which City will cause to be distributed for either internal or public circulation, including both preliminary and final drafts, shall be delivered to City in both printed and electronic form, or as may be specified in Exhibit A.

Upon the conclusion of the Term or in the event of Termination of this Agreement, Professional agrees, at its expense and in a timely manner, to return to City all documents, drawings, photographs and other written or graphic material, however produced, that it received from City, its contractors, or agents, in connection with the performance of its Services under this Agreement. All materials shall be returned in the same condition as received.

Section 16. Assignment Prohibited . No Party to this Agreement may assign any right or obligation pursuant to this Agreement. Any attempt or purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect.

Section 17. Excusable Delays; Notice to Other Party of Delay . Professional shall not be in breach of this Agreement in the event that performance of Services is temporarily interrupted or discontinued due to a “Force Majeure” event which is defined as: riots, wars, sabotage, civil disturbances, insurrections, explosion, natural disasters such as floods, earthquakes, landslides, fires, strikes, lockouts and other labor disturbances or other catastrophic events, which are beyond the reasonable control of Professional. Force Majeure does not include: (a) Professional’s financial inability to perform; (b) Professional’s failure to obtain any necessary permits or licenses from other governmental agencies; or (c) Professional’s failure to obtain the right to use the facilities of any public utility where such failure is due solely to the acts or omissions of the Professional.

Section 18. Suspension of Services by City . City reserves the right to suspend Professional's Services under this Agreement when City determines that it is necessary to do so. When possible, City shall give Professional notice of such suspension and Professional shall, upon receipt of said notice, suspend all Services except any Services, the completion of which is authorized by the notice given by City. If the Services are suspended by City for more than sixty (60) consecutive days, for reasons other than the fault of the Professional, the Professional shall be compensated for Services performed prior to notice of such suspension. When the Project is resumed, the Professional's compensation shall be equitably adjusted by City to provide for expenses incurred by the interruption of the Services. In this regard, Professional shall furnish to City such financial information that, in the judgment of the City Manager, is necessary to determine the reasonable value of the Services rendered by Professional during the period when Services were suspended.

ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

Section 19. Termination of Work by City for Its Convenience . City shall have the right to terminate this Agreement at any time for its convenience by giving notice of such termination to Professional (“Termination”). In the event City shall give such notice of termination, Professional shall cease rendering Services upon receipt of said notice given as required in this Agreement. If City terminates this Agreement:

(a) Professional shall deliver copies of all Products prepared by it pursuant to this Agreement.

(b) If City terminates this Agreement for convenience before City issues the Notice to Proceed to Professional or before Professional commences any Services hereunder, whichever last occurs, City shall not be obligated to make any payment to Professional. If City terminates this Agreement after City has issued the Notice to Proceed to Professional and after Professional has commenced performance under this Agreement, City shall pay Professional the reasonable value of the Services rendered by Professional pursuant to this Agreement prior to termination of this Agreement. City shall not in any manner be liable for Professional's actual or projected lost profits had Professional completed the Services. Professional shall furnish to City such financial information that, in the judgment of the City Manager, is necessary to determine the reasonable value of the Services rendered by Professional prior to termination.

(c) Except as provided in this Agreement, in no event shall City be liable for costs incurred by or on behalf of Professional after the date of the notice of termination.

(d) Notwithstanding this Section, this Agreement may be terminated by City for cause based on the loss or suspension of any licenses, permits or registrations required for the continued provision of the Services, or Professional’s malfeasance. Termination of the Agreement for cause as set forth in this Section shall relieve City from compensating Professional.

Section 20. Assurance of Performance . If, at any time, City believes Professional may not be adequately performing its obligations under this Agreement or may fail to complete the Services as required by this Agreement, City may submit a written request to Professional for written assurances of performance and a plan to correct observed deficiencies in Professional's performance. Failure to provide written assurances subsequent to such written request, constitutes grounds to declare a breach under this Agreement.

Section 21. Cancellation for Breach by Either Party . Should either Party fail to substantially perform its obligations in accordance with the provisions of this Agreement, the other Party shall thereupon have the right to cancel the Agreement by giving written notice and specifying the effective date of such cancellation. If City cancels this Agreement for breach and it is subsequently determined that Professional did not fail to substantially perform its obligations in accordance with this Agreement, then cancellation for breach by City shall be deemed, and treated, as termination for convenience.

Neither Party waives the right to recover damages against the other for breach of this Agreement, including any amount necessary to compensate City for all detriment proximately ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

caused by Professional's failure to perform its obligations hereunder or which in the ordinary course of things would be likely to result therefrom. City reserves the right to offset such damages against any payments owed to Professional.

City shall not in any manner be liable for Professional's actual or projected lost profits had Professional completed the Services required by this Agreement.

Section 22. Arbitration of Disputes. All claims, disputes and other matters in question between City and Professional arising out of, or relating to this Agreement or the breach thereof, including claims of Professional for extra compensation for Services related to the Project, shall be decided by arbitration before a single arbitrator in accordance with the provisions of Sections 1281 to 1284.2 of the California Code of Civil Procedure (the “Arbitration Laws”) unless the Parties mutually agree otherwise. The provisions of Section 1283.05 of the Arbitration Laws apply to any arbitration proceeding except as otherwise provided in this Agreement. The arbitrator shall have authority to decide all issues between the Parties including, but not limited to, claims for extras, delay and liquidated damages, if any, provided for in this Agreement, matters involving defects in the work product of the Professional, rights to payment, and whether the necessary procedures for arbitration have been followed. The award rendered by the arbitrator shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.

Notice of the demand for arbitration shall be filed in writing with the other Party. The demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in question has arisen, and in no event shall it be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations.

The Parties shall jointly appoint an arbitrator within fifteen (15) calendar days of the date of giving the notice of the demand for arbitration. If the Parties are unable to jointly agree upon the appointment of an arbitrator within said fifteen (15) calendar day period, and do not agree in writing to extend said period for a fixed period, then either Party may seek to have the arbitrator appointed by the Superior Court of Stanislaus County in accordance with the Arbitration Laws.

If any proceeding is brought to contest the right to arbitrate and it is determined that such right exists, the losing Party shall pay all costs and attorneys' fees incurred by the prevailing party.

In addition to the other rules of law which may be applicable to any arbitration hereunder, the following shall apply:

(a) Promptly upon the filing of the arbitration each Party shall be required to set forth in writing and to serve upon each other Party a detailed statement of its contentions of fact and law.

(b) All parties to the arbitration shall be entitled to the discovery procedures as provided in Section 1283.05 of the California Code of Civil Procedure.

ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

(c) The arbitration shall be commenced and conducted as expeditiously as possible consistent with affording reasonable discovery as provided herein.

(d) These additional rules shall be implemented and applied by the arbitrator.

The costs of arbitration shall be borne by the Parties as determined by the arbitrator, but each Party shall bear its own attorney's fees associated with the dispute with the other Party and to the arbitration.

Section 23. Insurance Coverage . During the Term, the Professional shall maintain in full force and effect policies of insurance set forth herein, which shall be placed with insurers with a current A M Best’s rating of no less than A VII and will provide City with written proof of said insurance.

Professional shall maintain coverage as follows:

23.1. General Liability . Professional shall carry general liability insurance in the amount of Two Million Dollars ($2,000,000.00) per occurrence for bodily injury, personal injury, and property damage. If commercial general liability insurance or another form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Project or the general aggregate shall be Two Million Dollars ($2,000,000.00).

23.2. Workers’ Compensation Insurance and Employer's Liability . Professional shall carry workers’ compensation insurance as required by the State of California under the Labor Code. Professional shall also carry employer’s liability insurance in the amount of One Million Dollars ($1,000,000.00) per accident, with a One Million Dollar ($1,000,000.00) policy limit for bodily injury by disease, and a One Million Dollar ($1,000,000.00) limit for each employee’s bodily injury by disease.

23.3. Errors and Omissions Liability . Professional shall carry errors and omissions liability insurance in the amount of no less than Two Million Dollars ($2,000,000.00) per claim or greater if appropriate for the Professional's profession. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, elected and appointed councils, commissions, directors, officers, employees, agents, and representatives (“City’s Agents”); or the Professional shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claims administration and defense expenses.

23.4. Commercial Automobile Liability . Professional shall carry commercial automobile liability insurance in the amount of One Million Dollars ($1,000,000) or greater per occurrence for owned, leased, hired, and borrowed automobiles.

23.5. Waiver of Subrogation . With the exception of errors and omissions liability insurance, Professional hereby agrees to waive subrogation which any insurer of Professional may acquire from Professional by virtue of the payment of any loss. The commercial general liability policy and workers’ compensation policy shall be endorsed to contain a waiver of subrogation in favor of City for all work performed by Professional, its agents, employees, independent ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

contractors, and subcontractors. Professional agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation.

Section 24. Additional Insurance Requirements . Within five (5) days of the commencement of the Term, Professional shall provide City with certificates of insurance for all of the policies required under this Agreement (“Certificates”), excluding the required workers’ compensation insurance. Such Certificates shall be kept current for the Term of the Agreement and Professional shall be responsible for providing updated copies and notifying City if a policy is cancelled, suspended, reduced, or voided. With the exception of the workers’ compensation and errors and omissions liability insurance, all of the insurance policies required in this Agreement shall:

(a) Provide that the policy will not be cancelled, allowed to expire, or materially reduced in coverage without at least thirty (30) days’ prior written notice to City of such cancellation, expiration, or reduction and each policy shall be endorsed to state such;

(b) Name City, and City’s Agents as additional insureds with respect to liability arising out of Services, work, or operations performed by or on behalf of Professional;

(c) Cover products and completed operations of Professional, premises owned, occupied, or used by the Professional, or automobiles owned, leased, or hired or borrowed by the Professional; contain no special limitations on the scope of protection afforded to City;

(d) Be primary with respect to any insurance or self-insurance programs covering City or City’s Agents and any insurance or self-insurance maintained by City or City’s Agents shall be in excess of Professional’s insurance and shall not contribute to it;

(e) Contain standard separation of insured provisions; and

(f) State that any failure to comply with reporting or other provisions of the policy including breaches of warranties shall not affect the coverage provided to City.

Section 25. Indemnification by Professional. To the fullest extent permitted by law (including, without limitation, California Civil Code sections 2782 and 2782.8), Professional shall defend with legal counsel reasonably acceptable to City, indemnify and hold harmless the City and City’s Agents from and against any and all claims, loss, cost, damage, injury (including, without limitation, injury to or death of an employee of Professional or its subcontractors), expense and liability of every kind, nature and description that arise out of, pertain to or relate to acts or omissions of Professional, or any direct or indirect subcontractor, employee, contractor, representative or agent of Professional, or anyone that Professional controls (collectively “Liabilities”). Such obligations to defend, hold harmless and indemnify City and City’s Agents shall not apply to the extent that such Liabilities are caused in whole by the sole negligence, active negligence, or willful misconduct of City or City’s Agents, but shall apply to all other Liabilities.

With respect to third-party claims against the Professional, the Professional waives any and all rights of any type of express or implied indemnity against City and City’s Agents.

ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

Section 26. Liability of City . Notwithstanding any other provision of this Agreement, in no event shall City be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect, or incidental damages, including, but not limited to, lost profits or revenue, arising out of or in connection with this Agreement or the Services performed in connection with this Agreement.

Section 27. Independent Contractor . At all times during the Term, Professional shall be deemed to be an independent contractor and shall be wholly responsible for the manner in which Professional performs the Services required under this Agreement. Professional shall be liable for its acts and omissions and those of its employees, contractors, subcontractors, representatives, volunteers, and its agents. Nothing contained herein shall be construed as creating an employment, agency, or partnership relationship between City and Professional. City shall have the right to control Professional only insofar as the result of Professional’s Services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Professional accomplishes Services rendered pursuant to this Agreement.

Section 28. Professional Not Agent . Except as City may specify in writing, Professional shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Professional shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Section 29. Payment of Taxes and Other Expenses . Payment of any taxes, including California sales and use taxes, levied upon this Agreement, the transaction, or the Services or goods delivered pursuant hereto, shall be the obligation of Professional.

Section 30. Notices. Any notice or communication required hereunder between City and Professional must be in writing, and may be given either personally, by registered or certified mail (return receipt requested), or by Federal Express, UPS or other similar couriers providing overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the Party to whom it is addressed. Notices given by registered or certified mail shall be deemed to have been given and received on the first to occur of (a) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, (b) on the date delivered as shown on a receipt issued by the courier, or (c) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered as shown on a receipt issued by the courier. Any Party hereto may at any time, by giving ten (10) days written notice to the other Party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the Parties at the addresses in this paragraph set forth below:

If to City: City of Ceres
Attn: City Manager
2220 Magnolia Street
Ceres, California 95307

ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

With courtesy copies to: White Brenner LLP
Attn: Nubia I. Goldstein
1608 T Street
Sacramento, CA 95811

If to Professional: Goodwin Consulting Group
655 University Ave., Ste 200
Sacramento, CA 95825
Attn: Cindy Yan, Senior Principal

Section 31. General Provisions.

A. Modification. No alteration, modification, or termination of this Agreement shall be valid unless made in writing and executed by all Parties.

B. Waiver. No covenant, term, or condition or the breach thereof shall be deemed waived, except by written consent of the Party against whom the waiver is claimed, and any waiver of the breach of any covenant, term, or condition shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant, term, or condition.

C. Assignment. No Party shall assign, transfer, or otherwise dispose of this Agreement in whole or in part to any individual, firm, or corporation without the prior written consent of the other Party. Subject to the forgoing provisions, this Agreement shall be binding upon, and inure to the benefit of, the respective successors and assigns of the Parties.

D. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of California.

E. Venue . Venue for all legal proceedings shall be in the Superior Court of California for the County of Stanislaus.

F. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which shall be deemed a single agreement.

G. Severability. If this Agreement in its entirety is determined by a court to be invalid or unenforceable, this Agreement shall automatically terminate as of the date of final entry of judgment. If any provision of this Agreement shall be determined by a court to be invalid and unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, which becomes effective after the execution of this Agreement by any Party, the remaining provisions shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement.

H. Audit. City shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify Professional’s charges to City under this Agreement.

ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

I. Entire Agreement. This Agreement sets forth the entire understanding between the Parties as to the subject matter of this Agreement and merges all prior discussions, negotiations, proposal letters or other promises, whether oral or in writing.

J. Supersedes Prior Agreement . It is the intention of the Parties hereto that this Agreement shall supersede any prior agreements, discussions, commitments, or representations, whether written, electronic or oral, between the Parties with respect to the subject matter of this Agreement.

K. Headings Not Controlling. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.

L. Successors and Assigns . All representations, covenants, and warranties specifically set forth in this Agreement, by or on behalf of, or for the benefit of, any or all of the Parties hereto, shall be binding upon and inure to the benefit of such Party, its successors and assigns.

M. Interpretation. As used herein, any gender includes each other gender, the singular includes the plural and vice versa.

N. Mandatory and Permissive . “Shall” and “will” and “agrees” are mandatory. “May” and “can” are permissive.

O. Attorney’s Fees and Costs . If any action at law or in equity, including action for declaratory relief, is brought to enforce or interpret provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorney's fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled.

P. Time is of the Essence. Time is of the essence in this Agreement for each covenant and term of a condition herein.

Q. Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states or firms and that all former requirements necessary or required by the state or federal law in order to enter into the Agreement have been fully complied with. Further, by entering into this Agreement, neither Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.

R. Drafting and Ambiguities. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel, and based upon the advice of that counsel, freely entered into this Agreement. Each Party has participated fully in the review and revision of this ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

Agreement. Any rule of construction that ambiguities are to be resolved against the drafting party does not apply in interpreting this Agreement.

[S
ignatures on Following Page]

ITEM 5

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Goodwin Consulting Group

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last day and date below written.

CITY:

C
ITY OF CERES, a California municipal
corporation

By:

Douglas D. Dunford, City Manager

D
ate:

PROFESSIONAL:

G
oodwin Consulting Group, a California
corporation

By:

Name:

Date:

Approved as to Form:

Nubia I. Goldstein, City Attorney

ITEM 5

EXHIBIT A

Services

ITEM 5

Fiscal and CFD A-1 Scope of Work

EXHIBIT A

CITY OF CERES

FISCAL IMPACT ANALYSIS AND

COMMUNITY FACILITIES DISTRICT

FOR GENERAL CITY SERVICES AND PROJECT-SPECIFIC MAINTENANCE NEEDS

SCOPE OF WORK

Goodwin Consulting Group (GCG) will assist the City of Ceres (City) in evaluating the annual fiscal impacts associated with providing municipal services and project -specific maintenance services to new development within the Copper T rails Specific Plan, Whitmore Ranch Specific Plan, and West Landing Specific Plan . This analysis will be a comprehensive evaluation of the City’s revenues and expenses associated with future development that the City will be required to serve.

Based on the results of the fiscal analysis, and as requested by the City, GCG will serve as special tax consultant to assist the City in the formation of a Mello -Roos Community Facilities District (CFD) that will fund public services that support future residential and non- residential development. The CFD will include both an initial CFD boundary and a future annexation area to facilitate annexation of future development projects into the CFD. After the CFD is formed, GCG will manage the annual administration of the CFD, including preparing the annual special tax levy and monitoring delinquencies within the CFD. Specifically, GCG will provide the following tasks pursuant to this Scope of Work:

A. F ISCAL SHORTFALL ANALYSIS

Task A-1. Background Research and Data Collection

GCG will coordinate with C ity staff regarding components of the fiscal analysis and sources of data and information that will be needed for the study. Information needed for the fiscal analysis includes, but will not be limited to, the following:

a. Land uses to be analyzed. Generally, citywide fiscal analyses consider five major land use categories —single family residential, multi- family residential, retail, office, and industrial. GCG will discuss with the City whether any other uses should be included in the analysis.

b. Market values. For each land use category that will be analyzed, GCG will work with city staff to estimate average market values to be used in the projection of project revenues.

c. Budget to be used as basis of analysis. GCG and the City will discuss how to best reflect preferred service levels.

d. Other demographic assumptions. In addition to the items set forth above, GCG will coordinate with City staff regarding other demographic assumptions that will be factored into the fiscal analysis, including household income levels, average ITEM 5

Fiscal and CFD A-2 Scope of Work
population per household, square feet per employee, sales tax per square foot, and other factors.

e. Project-Specific Maintenance Needs and Associated Costs . For each specific plan area, GCG will rely on City staff to provide annual recurring maintenance costs associated with providing project -specific maintenance services (e.g., storm drainage maintenance, street lighting, landscape maintenance, etc.) to future development. These costs will be added to any potential general citywide services shortfall to arrive at the required mitigation amount .

Task A-2. Budget Review

Based on the discussion from Task A-1, GCG will review the City ’s current budget to develop case study and per-capita multiplier assumptions for applicable fiscal revenues. This analysis will ensure that: (i) property tax projections account for the ERAF shift, (ii) basic sales taxes and Prop 172 sales taxes are taken into account, and (iii) the VLF for property tax swap is incorporated into the analysis. In addition, GCG will work with staff to identify the tax rate areas that cover proposed new development projects and growth areas to get a breakdown of the general levy tax allocation factors from the Stanislaus County Auditor/Controller. For the Copper Trails Specific Plan area, GCG will coordinate with staff regarding possible property tax sharing assumptions between the City and Stanislaus County (County).

Standard fiscal methodologies will be applied but will be customized where appropriate to fit unique circumstances related to Ceres . Many of the operating revenues and expenses will be examined and projected on a persons-served multiplier basis, but others will be analyzed utilizing a detailed “case study” approach. Note that water and sewer enterprise funds, and other non - General Fund accounts that are self-supported through user charges, will not be evaluated.

Task A-3. Fiscal Impact Model

GCG will create a dynamic fiscal model to estimate the average annual fiscal impacts of projected new development in the City. The model can also be used to provide sensitivity analysis of changes in value, population per household, density, or other factors that may affect the fiscal impacts.

Task A-4. Mitigation of Projected Deficits (if applicable)

To the extent negative fiscal impacts are forecasted, GCG will estimate the impacts by land use to identify the annual CFD special tax or other funding amount that would be needed to relieve anticipated deficits and achieve revenue neutrality.

Task A-5. Technical Memorandum

GCG will summarize the analysis and findings in a brief technical memorandum. Technical analyses will be presented in easy -to-read charts and tables, which will be attached to, and referenced in, the memorandum. GCG will review one draft of the memorandum with City staff and make appropriate revisions prior to finalizing the memorandum.

ITEM 5

Fiscal and CFD A-3 Scope of Work
Task A-6. Meeting Attendance

GCG will attend up to two in-person meetings to collect data, formulate assumptions, and review draft findings, which may include working group meetings and/or City Council meetings. Virtual meetings are not included in this limitation.

B. CFD FORMATION

Task B-1. Background Research and Data Collection

GCG will coordinate with City staff, affected developers, and the City’s legal counsel to discuss the structure and components of the CFD, including special tax categories, maximum special tax rates, development triggers for levy of the special tax, boundaries of the CFD and future annexation area, the use of tax zones , and the CFD formation timeline and action items. GCG will review service costs and coordinate with the City regarding annual administration costs to determine the maximum special tax rates for property in the CFD.

Task B-2. Rate and Method of Apportionment of Special Tax

Based on the special tax structure selected by the working group, GCG will prepare the Rate and Method of Apportionment of Special Tax (RMA), which will serve as the official special tax formula for the CFD. The RMA will provide detail and direction as to how the special tax should be levied in future years to ensure adequate revenues are available for timely payment of costs funded by the CFD. The RMA will be included as an exhibit to the Resolution of Intention to Form the CFD, which will be adopted by the City Council as part of the first set of actions taken towards forming the CFD.

Task B-3. Preparation of CFD Boundary Map

GCG will prepare the official boundary map for the CFD in a format acceptable to the County Recorder’s Office. The map will identify the initial CFD boundaries, as well as the boundaries of the future annexation area. GCG will record the CFD boundary map pursuant to Section 3111 of the Streets and Highways Code.

Task B-4. Review of Legal Documents

GCG will coordinate with the C ity’s legal counsel to review and contribute to CFD formation documents, including preparing the CFD Report required pursuant to the Mello-Roos law.

Task B-5. Meeting Attendance

GCG will attend up to two in-person meetings during the CFD formation process, which may include working group meetings and/or City Council meetings. Virtual meetings are not included in this limitation.

ITEM 5

Fiscal and CFD A-4 Scope of Work
C. CFD ADMINISTRATION

Task C-1. Background Research and Data Collection

Each fiscal year, GCG will confirm the Assessor’s parcel numbers for lots within the CFD and determine which parcels are Developed Property and which remain Undeveloped Property. GCG will allocate parcels to the special tax categories set forth in the RMA to determine the maximum special tax for each parcel.

Task C-2. Annual Special Tax Levy Calculation

GCG will calculate the special tax levy for each taxable parcel in the CFD by applying the RMA.

Each fiscal year, GCG will coordinat e with City staff to identify the maintenance costs and administrative expenses to be covered by special taxes, and the special tax will be levied in the amount needed, up to the maximum special tax for each parcel.

Task C-3. Summary of Annual Special Tax Levy

GCG will annually prepare a summary of the special tax levy which contains the results of our parcel research and identification of costs to be paid in the current fiscal year. The appendix to this summary will identify the special tax levy for each Assessor’s parcel for the fiscal year.

Task C-4. Annual Special Tax Enrollment

GCG will compile a list of parcels in the CFD that will be subject to the special tax levy and format it in compliance with the specific formatting instructions of the County Auditor -Controller’s Office. The formatted tax levies will be submitted on or before August 10 (or other specified date) for inclusion on the consolidated property tax bills.

Task C-5. Delinquency Management

GCG will monitor the County’s tax collection summaries and report on delinquent parcels and corresponding delinquent CFD taxes.

Task C-6. Annexation Services

With each annexation, GCG will: (i) prepare a consolidated CFD boundary map reflecting the annexation area in the CFD, (ii) work with City staff to identify costs and land uses to calculate the maximum special taxes for the area being annexed, (iii) prepar e the rate supplement to be attached to the unanimous approval form for new tax zones, and (iv) assist the City and legal counsel with anything related to annexing property into the CFD.

Task C-7. Answer Inquiries from Various Parties

GCG will respond to property owners, realtors, title companies, appraisers and other parties’ questions regarding the special tax and other CFD related issues. A GCG staff member will be designated as the primary contact for inquiries received by the County Tax Collector’s Office, and most inquiries will be responded to on the same day they are received.

ITEM 5

Fiscal and CFD B-1 Budget

EXHIBIT B

CITY OF CERES

FISCAL IMPACT ANALYSIS AND

COMMUNITY FACILITIES DISTRICT FOR GENERAL CITY SERVICES

BUDGET & FEE SCHEDULE

A. Fiscal Shortfall Analysis

The budget for the fiscal shortfall analysis is $30,000. This budget represents a maximum amount not to be exceeded. Additional consulting services beyond those included in the scope of work may be provided within the maximum budget if total hourly billings are less than the budget maximum. Alternatively, if the scope of work can be completed for less than the maximum budget, only hours expended will be billed. A total of two in-person meetings is included in the maximum budget. Additional in-person meetings will be billed on an hourly basis, not to exceed a total of $1,200 per meeting. Services will be billed based on the hourly service rates shown below in Table A.

B. CFD Formation

The budget for CFD Formation is $25,000. This budget represents a maximum amount not to be exceeded. A dditional consulting services beyond those included in the scope of work may be provided within the maximum budget if total hourly billings are less than the budget maximum.

Alternatively, if the scope of work can be completed for less than the maximum budget, only hours expended will be billed. A total of two in-person meetings is included in the maximum budget.

Additional in-person meetings will be billed on an hourly basis, not to exceed a total of $1,200 per meeting. Services will be billed based on the following hourly service rates:

Table A

Goodwin Consulting Group, Inc.

Managing Principal $380/Hour
Senior Principal $365/Hour
Principal $330/Hour
Senior Vice President $310/Hour
Vice President $290/Hour
Senior Associate $265/Hour
Associate $250/Hour
Analyst $230/Hour
Research Assistant $95/Hour

Note: These hourly rates are effective through December 31, 2026, and may be adjusted thereafter.

ITEM 5

Fiscal and CFD B-2 Budget
C. CFD Administration

The budget for CFD administration services, not including annexation services, is $5,000 per year plus $2.25 per parcel. The budget for annexation services is $5,000 per annexation. These fees will be subject to an inflation adjustment beginning after fiscal year 2025-26 and include direct expenses. Expenses may entail travel, parcel data purchases, photocopying, courier, overnight delivery, long-distance telephone, and other direct costs. Administration services shall be billed in two semiannual installments.

ITEM 5

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: March 23, 2026
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Michael R. Beltran II, P.E., Director of Engineering/City Engineer [email protected], (209) 538-5775
SUBJECT:

Resolution No. 2026 -XXX, Approvin g Amendment No. 1 to the Agreement with Schneider Electric Buildings Americas, Inc. in an Amount Not to Exceed $4,988,067 for Turnkey Design and
Construction Energy Services, Authorizing the Construction of a 995-Kilowatt Solar Photovoltaic System at the City of Ceres Wastewater Treatment Plant, and Authorizing the City Manager to Execute the Amendment
RECOMMENDED COUNCIL ACTION:

Staff recommends that the City Council adopt a Resolution approving an amendment to the Agreement for Turnkey Design and Construction Energy Services with Schneider Electric Buildings Americas Inc. in the not to exceed amount of $ 4,988,067 to authorize the construction of a 995-Kilowatt Solar Photovoltaic System at the City of Ceres Wastewater Treatment Plant and authorize the City Manager to execute the amendment.

I. BACKGROUND:

On June 24, 2024, the City Council approved an Agreement for Turnkey Design and Construction Energy Services with Schneider Electric Buildings Americas, Inc. for the development of energy and infrastructure improvement projects at the City of Ceres Wastewater Treatment Plant (WWTP) in accordance with California Government Code Sections 4217.10 through 4217.18.

The purpose of the original agreement was to allow Schneider Electric to act as the City’s design-build energy services provider to evaluate, design, and develop energy efficiency and infrastructure improvement projects that would improve plant capacity, r educe operating costs, and address increasing regulatory and operational demands at the Wastewater Treatment Plant.

As part of the project development and engineering effort, Schneider Electric evaluated multiple energy and infrastructure improvement measures at the W astewater Treatment ITEM 6
ITEM 6
Plant. One of the major components identified to reduce the City’s long -term operational and energy costs is the installation of a large-scale on-site solar photovoltaic system.

Schneider Electric has completed technical evaluation and engineering design to advance a proposed 995 -kilowatt solar photovoltaic system at the City’s Wastewater Treatment Plant. The proposed system is intended to significantly offset the facility’s electrical demand associated with existing operations and future planned upgrades.

This amendment to the existing agreement authorizes the City to proceed with the construction of the 995-kilowatt solar photovoltaic system as a defined project under the City’s existing turnkey design-build energy services agreement.

The solar project is consistent with the original intent of the agreement and supports the City’s goals to reduce energy consumption, control long -term utility costs, and improve the financial sustainability of wastewater operations.

II. REASONS FOR RECOMMENDATION:

The Wastewater Treatment Plant is one of the City’s highest energy-consuming facilities, and electrical demand is expected to continue to increase as the City implements future regulatory compliance and capacity improvement projects.

Construction of the 995-kilowatt solar photovoltaic system will:
• Reduce long-term electricity costs at the Wastewater Treatment Plant; • Provide greater budget stability for wastewater operations; • Reduce the City’s exposure to future utility rate increases; and • Support the City’s long-term infrastructure and operational resiliency goals.

In addition, advancing the project at this time allows the City to be eligible for the federal Investment Tax Credit (ITC) associated with the construction of the solar photovoltaic system. The ITC benefit for this project is currently estimated to be appr oximately $1,496,420 and represents a significant financial benefit to the overall project.

Approving this amendment allows the City to move directly into construction of a fully designed project and secure the associated federal tax credit benefits.

III. FISCAL IMPACTS:

Funding for construction of the 995 -kilowatt solar photovoltaic system is available in Capital Improvement Project No. 2510. The project currently has $5,000,000 funded from the Sewer Fund. No General Fund resources will be used for this project.

Approval of this amendment authorizes construction of the solar photovoltaic system in accordance with the scope, schedule, and payment terms contained in the amendment to the existing agreement. The project is expected to generate long -term operational savings by reducing purchased electrical power for wastewater treatment operations and will allow the Ci ty to be eligible for the federal Investment Tax Credit (ITC), currently estimated at approximately $1,496,420.

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IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

The recommended action supports the following elements of the City’s Strategic Plan:
1) Infrastructure – Ensure that the community has adequate, well- maintained infrastructure that supports a strong economy and quality of life.
2) Economic Development – Improve long-term fiscal sustainability by reducing operating costs of major public facilities.
3) Planning for the Future – Invest in infrastructure that supports future growth and regulatory requirements.

V. POLICY ALTERNATIVES:

The City Council can choose to:

1. Approve the request as recommended by staff; or

2. Deny the request , which would delay the construction of the solar photovoltaic system, and the City would forgo the opportunity to secure the estimated $1.5 million federal Investment Tax Credit and the associated long -term energy cost savings.; or

3. Continue to a future City Council Meeting
VI. INTERDEPARTMENTAL COORDINATION:

The Engineering Department has coordinated with the Waste Water Treatment Department .

VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

Environmental review for the solar photovoltaic project will be completed in accordance with the California Environmental Quality Act (CEQA) prior to or in conjunction with project implementation.

IX. STEPS FOLLOWING APPROVAL:

Upon approval, the City Manager will execute the amendment to the Agreement for Turnkey Design and Construction Energy Services with Schneider Electric Buildings Americas, Inc., and staff will proceed with construction, inspection, and project administration for the 995-kilowatt solar photovoltaic system at the Wastewater Treatment Plant.

Approved by: ____________________
Douglas D. Dunford,
City Manager

Attachments:

1. Attachment A – Resolution

2. Attachment B – Amendment No. 1
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ATTACHMENT A
RESOLUTION NO. 2026-XXX

APPROVING AMENDMENT NO. 1 TO THE AGREEMENT WITH
SCHNEIDER ELECTRIC BUILDINGS AMERICAS, INC. IN AN AMOUNT NOT TO EXCEED $4,988,067 FOR TURNKEY DESIGN AND

CONSTRUCTION ENERGY SERVICES, AUTHORIZING THE
CONSTRUCTION OF A 995-KILOWATT SOLAR PHOTOVOLTAIC

SYSTEM AT THE CITY OF CERES WASTEWATER TREATMENT

PLANT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE

AMENDMENT

THE CITY COUNCIL
City of Ceres

WHEREAS, the City Council of the City of Ceres recognizes the need to reduce long-term energy and operational costs at the City’s wastewater treatment plant located at 4200 Morgan Road, Ceres, California; and

WHEREAS, on June 24, 2024, the City Council approved an Agreement for Turnkey Design and Construction Energy Services with Schneider Electric Buildings Americas, Inc. for the design and construction of an energy services project for the City of Ceres Wastewater Tre atment Plant improvements and upgrades, by Resolution No. 2024-083, pursuant to California Government Code sections 4217.10 through 4217.18 ; and

WHEREAS, the design of a 995 -kilowatt solar photovoltaic system at the City of Ceres Wastewater Treatment Plant has been completed under the previously approved Agreement and part of the Capital Improvement Plan Project 2510; and

WHEREAS, the City desires to proceed with construction of the 995-kilowatt solar photovoltaic system in order to reduce energy consumption, improve operational efficiency, and support the long -term financial sustainability of wastewater operations ; and

WHEREAS, staff recommends approval of an amendment to the Agreement with Schneider Electric Buildings Americas, Inc. to authorize construction of the 995 -kilowatt solar photovoltaic system; and

WHEREAS, advancing the project at this time allows the City to be eligible for the federal Investment Tax Credit associated with the construction of the solar photovoltaic system, which is currently estimated to be approximately $1,496,420.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ceres hereby approves Amendment No. 1 to the agreement with Schneider Electric Buildings Americas, Inc. in an amount not to exceed $4,988,067 for turnkey design and construction energy services, authorizes the construction of a 995-kilowatt solar photovoltaic system at the City of Ceres Wastewater Treatment Plant, and authorizes the City Manager to execute the amendment.

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ATTACHMENT A
BE IT FURTHER RESOLVED The City Council of the City of Ceres hereby reaffirms all findings previously made by the City Council in connection with its approval of that certain Agreement for Turnkey Design and Construction Energy Services with Schneider Electric Buildings Americas, Inc. for the design and construction of an energy services project for the City of Ceres Wastewater Treatment Plant improvements and upgrades, approved by the City Council on June 24, 2024, by Resolution No. 2024 -083, pursuant to California Government Code sections 4217.10 through 4217.18.

The City Council further finds and determines that:

1. The proposed amendment to the Agreement with Schneider Electric Buildings Americas, Inc. for the City of Ceres Wastewater Treatment Plant improvements and upgrades does not materially change the scope, purpose, or structure of the original energy services project approved by the City Council, and does not invalidate or require modification of the findings previously adopted by the City Council pursuant to California Government Code sections 4217.10 through 4217.18; and

2. The findings adopted by the City Council in Resolution No. 2024-083 on June 24, 2024, remain true and correct and continue to apply to the Agreement as amended; and

3. The Agreement, as amended, continues to provide for energy conservation and operational improvements at the City of Ceres Wastewater Treatment Plant and continues to satisfy all applicable requirements of California Government Code sections 4217.10 through 4217.18.

Accordingly, the City Council of the City of Ceres hereby reaffirms and incorporates by reference all findings previously adopted in Resolution No. 2024 -083 approving the Agreement for Turnkey Design and Construction Energy Services with Schneider Electric Buildings Americas, Inc., as though fully set forth herein.

PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on the 23rd day of March 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

________________________________
Javier Lopez, Mayor
ATTEST:

_________________________________
Fallon Martin, City Clerk

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ATTACHMENT B
General

AMENDMENT AND NOTICE TO PROCEED WITH THE SOLAR PV CONSTRUCTION PHASE

PURSUANT TO AGREEMENT FOR TURNKEY DESIGN AND CONSTRUCTION ENERGY SERVICES This Amendment and Notice to Proceed with the Solar PV Construction Phase (this “ Construction Amendment No. 1”) is executed and made effective as of March 23, 2026 (the “Construction Amendment No. 1 Effective Date ”) by and between the City of Ceres , a California General Law City (“City”), and Schneider Electric Buildings Americas, Inc., a Delaware corporation with California Contractors License Number 708952 (“ Design/Builder”). City and Design/Builder may be referred to herein as the “Parties”, collectively, and each, individually, as a “Party”. This Construction Amendment No. 1 is executed pursuant to and made part of the Agreement (defined and described below) . The Agreement, as amended by this Construction Amendment, shall be referred to herein as the " Amended Agreement", and any capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Agreement.

RECITALS
WHEREAS, the Parties previously entered into that certain Agreement For Turnkey Design And Construction Energy Services dated as of June 27, 2024 (the " Agreement"), whereby City engaged Design/Builder to perform Design work related to Solar PV and the City’s Wastewater Treatment Plant; WHEREAS, Design/Builder has completed the Design work for the Solar Photovoltaic (“PV”) and provided a Project Proposal to the C ity for the Solar PV work , while Design/Builder continues to work on preparing a Project Proposal for the Wastewater Treatment Plant;
WHEREAS, pursuant to California Government Code Section 4217.12, City held a regularly scheduled public hearing on March 23, 2026, of which two weeks advance public notice was given, regarding this Construction Amendment and its subject matter;
WHEREAS, at such meeting, City accepted the Solar PV Project Proposal (“Solar Project Proposal”), and determined that Design/Builder has the technical and management capabilities and experience to implement the Solar Project Proposal, and that the anticipated cost to City to implement the Energy Conservation Measures (“ECMs”) identified in the Solar Project Proposal will be less than the anticipated cost to City for thermal, electrical, and other energy, together with anticipated operational, maintenance and other costs, that would have been consumed by City in the absence of the identified ECMs in compliance with California Government Code Sections 4217.10 through 4217.18; WHEREAS, City has further determined that the Agreement, as amended hereby, constitutes an “energy service contract” within the meaning of California Government Code Section 4217.10 et seq., that entering into this Construction Amendment to implement the Project Proposal is in the best interests of City, and that California Government Code Section 4217.10 et seq. allows City to enter into this Construction Amendment No. 1;
WHEREAS, City now wishes to engage Design/Builder, pursuant to the terms and conditions of this Construction Amendment No. 1 , to finalize the design and construct the Solar Project for purposes of implementing the ECMs; and
WHEREAS, effective as of the Construction Amendment No. 1 Effective Date, this Construction Amendment No. 1 shall become part of the Agreement and shall serve to incorporate the details of the Construction Phase therein.

NOW, THEREFORE, in consideration of the foregoing and of the respective rights and obligations of the Parties set forth in the Amended Agreement, the Parties hereby agree as follows:

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ATTACHMENT B

General

I. CONSTRUCTION AMENDMENT NO. 1

The following provisions shall modify, supplement, and become part of the Agreement, as applicable:

Section 1. Amended Agreement. This Construction Amendment No. 1 and all of the Exhibits attached hereto are hereby made part of the Agreement as if set forth in full therein . In the event of any conflict between the provisions of the Agreement and the provisions of this Construction Amendment No. 1, the provisions of this Construction Amendment No. 1 shall prevail.

Section 2. Scope of Construction Services. In accordance with Section 0.5 of the Agreement, the Scope of the Solar Construction Work to be performed by Design/Builder in connection with the Solar Project is set forth on Exhibit D, attached hereto and incorporated in the Agreement by this reference. ESCO makes no representation, warranty or guarantee that the Solar Project or the performance thereof will entitle the Customer to receive any Incentive Funds. Procurement, or lack thereof, of the Incentive Funds will not alter the Solar Project Fee or the payment timeline associated with payment of the Solar Project Fee. Incentive Funds means tax credits, energy efficiency rebates, incentives , and/or loan programs for which City may apply or otherwise be eligible in connection with the Solar Project.

Section 3. Preliminary Construction Schedule . In accordance with Section 0.5 of the Agreement, the Preliminary Construction Schedule, setting forth the Completion Date for the Solar Construction Work and any applicable milestone dates, is attached hereto as Exhibit E, and incorporated in the Agreement by this reference.

Section 4. Project Fee. The Solar Project Fee is set forth in Exhibit F, attached hereto, and incorporated in the Agreement by this reference. The Project Fee is inclusive of ONLY the Solar PV portion of the Design Fee (equal to $250,000), such Design Fee having been rolled into the Project Fee pursuant to Section 1.5.2 of the Agreement. If City does not wish to proceed into the Construction for the scope of work set forth in Design/Builder’s subsequently issued Project Proposal, then the terms of Section 1.5.1 of the Agreement shall apply and City may terminate the Agreement for convenience immediately upon providing Design/Builder with written notice of termination and payment in full for the Design Fee not included in the Solar PV Design Fee . The parties agree that such termination shall not terminate this Construction Amendment No. 1 unless City elects to terminate this Construction Amendme nt No. 1 for convenience or Construction Amendment No. 1 is terminated for other reasons allowed under the Agreement.

Section 5. Project Mobilization Payment. In accordance with Section 2.4.3 of the Agreement, the Project Mobilization Payment for the Solar Project will not exceed twenty percent (20%) of the Solar Project Fee, as noted in Exhibit F, and the Project Mobilization Payment is due within one month of the Construction Amendment No. 1 Effective Date.

Section 6. Notice to Proceed. In accordance with Section 2.1 of the Agreement, the execution of this Construction Amendment No. 1 serves as City’s Notice to Proceed with the Solar Construction Work.

Section 7. Performance Guarantee. Upon completion of the Solar Construction Work, Design/Builder shall provide certain energy and/or efficiency savings guarantees to City, subject to the terms and conditions of this Section 7 and Exhibits G through J, attached hereto and incorporated in the Agreement by this reference:

Exhibit G: Performance Assurance Support Services Agreement Exhibit H: Performance Guarantee and Definitions
Exhibit I: Measurement & Verification (“M&V”) Plan
Exhibit J: City Responsibilities for Performance Guarantee

Section 8. Project Proposal for Waste water Treatment Plant . The parties acknowledge that Design/Builder continues to perform Design work under the Agreement related to the Wastewater Treatment Plant. The parties agree that they may in the future enter into an additional Amendment and ITEM 6
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ATTACHMENT B

General
Notice to Proceed for the performance of work related to the Wastewater Treatment Plant pursuant to a Project Proposal resulting from said Design work.

II. GENERAL PROVISIONS

The following provisions shall govern the interpretation and enforcement of this Construction Amendment No. 1:

Section 1. No Other Modifications. The provisions of Part I of this Construction Amendment No. 1, together with the Schedules referenced therein, shall be construed as the sole extent of the modifications being made to the Agreement pursuant to this Construction Amendment No. 1. Except as hereby modified, the Agreement shall continue in full force and effect in accordance with its provisions.

Section 2. Governing Law . This Construction Amendment No. 1 shall be governed by and interpreted in accordance with California law, regardless of any conflict -of-laws provisions applicable in California or any other jurisdiction.

Section 3. Severability. If any provision of this Construction Amendment No. 1 is determined to be invalid, illegal, or unenforceable as written, such provision shall be construed consistent with and to the fullest extent permitted under applicable law, and any such determination shall not affect or impair the validity, legality, and enforceability of the remaining provisions.

Section 4. Entire Agreement. The Amended Agreement constitutes the entire understanding and agreement between the Parties pertaining to the performance by Design/Builder of the services required by the Amended Agreement.

Section 5. Counterparts. This Construction Amendment No. 1 may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute one and the same instrument. Signature pages may be detached from counterpart originals and combined to physically form one or more copies of this Construction Amendment No. 1 having original signatures of both Parties.

Section 6. Due Authority of Signatories. Each person signing this Construction Amendment No. 1 represents and warrants that he or she has been duly authorized by appropriate action of the Party he or she represents to execute, and thereby bind such Party to, this Construction Amendment No. 1.

In Witness Whereof, the Parties have executed this Construction Amendment No. 1 as evidenced by the signatures of their authorized representatives below.

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ATTACHMENT B

General
City of Ceres, California Schneider Electric Buildings Americas , Inc.

By: By:

Print Name: Print Name:

Title: _____________________________________ Title: ________________________________

Date Signed: Date Signed:

Fed. Tax ID No:

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ATTACHMENT B

General

EXHIBIT D

SCOPE OF CONSTRUCTION WORK

City hereby acknowledges and agrees that the scope of work shall be limited to, and Design/Builder shall only perform the following:

Solar Photovoltaic Installation

Design/Builder shall design, engineer, obtain required permits where required, procure require d devices and materials, construct, start -up, and commission a public utility interconnected solar photovoltaic (PV) system(s) as defined below:

Project Site
Ceres Water Reclamation Facility
4200 Morgan Road, Ceres, CA

PV System Size - 995.5 kW DC

Design Basis
• Final electrical design of the PV system and associated infrastructure will be completed prior to installation. See System Layout (below) noting location of proposed PV system , and for basis of Project Fee. Final system configuration to be shown on the 100% design drawings. • Primary System Component Basis of Design
o PV module basis of design is 550W modules.
o Inverter basis of design is 480v, 100kW AC inverters. o Racking basis of design is Terrasmart Wave and Fuse systems. o Monitoring system basis of design is five years of service from Data Acquisition System using ALSO Energy Package, relying on City -provided intranet connection drop, in existing electrical room. Solar data monitoring system will allow for remote web-based monitoring and access.
o Solar arrays shall be installed with a 20-degree tilt for 2P systems, a 12.5-degree tilt for 4P system, and a front lip clearance height of 36” minimum for all systems. • Installation of ground mounted structural solar racking system in locations designated on System Layout (below).
• Installation of solar modules and associated wiring and combiner boxes connected to solar inverters.
• Installation of solar inverters and associated electrical equipment, connections, and gear to connect inverters into new switch board.
• Installation of new switch board and concrete pad extension for Electrical Interconnection at location of existing switch gear as designated on System Layout (below). • Provide energy production enclosure which will include production meter, weather station, and network switch for array monitoring.
• Provide solar temperature and irradiance sensors
• Existing City-provided asphalt grindings stored on site will be loaded, hauled , and placed on graded and prepped areas by Design/Builder, to include - array footprint areas, a vehicle access way 10’ wide around arrays, and Design/Builder laydown/ storage area - up to a maximum depth of 6”. Actual depth of grindings placed will be based on total quantity of City grindings available on site at the time of construction.
• Tree removal in the Solar PV installation area as required shall be performed by Design/Builder. • Cut, cap and modification to all irrigation system piping to the solar array footprint areas will be completed by City prior to construction.
• Design/Builder will complete the Interconnect Agreement Application, pay the Interconnection Application fee, and coordinate Interconnection Application Inspection and Issuance of Permit to Operate with Turlock Irrigation District (local Utility). • Start up and commissioning of PV system.

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ATTACHMENT B

General
• Training for Solar System Components, Operations and Maintenance upon completion of each array.

Clarifications
• Permanent fencing around the arrays or PV system components shall not be required per discussions with City staff and AHJ (Stanislaus County), as the project site already has secure fencing and controlled access. Design/Builder shall be responsible for obtaining electrical & building permits as required from the local AHJ for the installation of the Solar PV system, including coordinating and passing inspections upon completion of work. Stanislaus County shall be the permitting and inspection authority.
• Special inspections including any lab of records or testing are excluded and the responsibility of the City.
• Other than the Utility Interconnection Application fee paid for by Design/Builder, City is responsible to pay all fees associated with Permitting, Plan Check Review, and any 3rd party lab of record testing and inspections as required. (if necessary) • City of Ceres shall utilize City Staff, or hire and pay for, an Inspector of Record (if required). • Final equipment selection inclusive of modules, inverters, electrical components, and monitoring system are subject to change based on final design and equipment lead-time at the discretion of Design/Builder.
• Due to construction phasing, while Racking, Modules and Inverters may be installed, PV system will not be operable until all long lead Electrical switch gear arrives and can be installed as well as permission to operate (PTO) by Utility.
• Multiple Electrical shutdowns will be required and will be coordinated with the City and Utility for system interconnection:
o During the design phase to inspect the switchgear for switchboard manufacturing. o During construction for interconnection of PV array into the existing switchgear. • Scope is based on, first shift, normal working hours, Monday through Friday, 7 a.m. to 5 p.m., non- Federal Holidays. Some after-hours work may be required to accomplish the Scope of Work. This proposal assumes City will grant Design/Builder access to the facilities after hours if needed. • On-site staging areas will be made available by City for storage of equipment and materials in generally close area to project.
• Owner shall provide Design/Builder complete access to the site for installation activities and support of those activities with relocation of vehicles as required while providing suitable laydown area to support installation as shown on conceptual plans.
• The City is responsible to notify Design/Builder of any projects that may impact the project schedule or require coordination. Design/Builder currently has not accounted for coordination with other City projects or contractors. Design/Builder is not responsible for delays caused by other projects occurring within the designated project areas.
• Storm water pollution prevention plan (SWPPP) is responsibility of Design/Builder, as required to comply with applicable code.
• Design/Builder will provide temporary sanitary facilities. • City will provide working office space for Design/Builder Site Management personnel, in Admin Building and/or Electrical Room.
• The City will be responsible for any and all future landscaping maintenance specific to weed mitigation or trimming of foliage around the solar array following the installation of the project • Design/Builder receiving payment from City for mobilization and completed work is not contingent on loan, bond, or grant funding.

Exclusions
• Added scope or changes required by AHJ are excluded.
• Changes to array locations initiated by City are excluded. • Upgrades to Utility company infrastructure or mitigation work, that is not included in the design, discovered by the Utility company during the Interconnection Application review process , is ITEM 6
ITEM 6

ATTACHMENT B

General
excluded.
• All utility driven sub -meters (i.e. NGOM) costs are excluded and will be the responsibility of the City, if required.
• Expansion of City’s network or coverage to serve data monitoring system is excluded. • Design changes and or relocation of underground utility lines including but not limited to electrical, gas, water, sewer, irrigation, fiber optic, television, etc. is excluded. Hard rock drilling, underground obstructions, caving soils, casing, and water mitigation are excluded. • Design/Builder is not responsible for replacing inverter fuses. • Lightning protection systems are excluded.
• Any temporary utilities including temporary power and lighting during scheduled utility shutdown is excluded.
• Fire alarm, fire sprinkler, CCTV, security, and communication work beyond data monitoring system is excluded.
• Additional labor cost resulting from the restriction of allowable work hours or days is excluded. • Night/Holiday/Overtime work not performed at Design/Builder’s discretion is excluded. • Costs incurred due to lack of access to required areas or due to access to storage areas to which materials are to be delivered are excluded.
• Costs of providing access, access control, or security escorts not specified in the Scope of Work is excluded.
• This project assumes all existing utility and City owned electrical , mechanical, plumbing, architectural, or drainage systems are currently code complaint. Bringing non -compliant systems up to current codes is excluded.
• Ground contamination and/or hazardous materials handling, testing, and/or removal are excluded. • Asbestos or hazardous material abatement of any kind of any kind is excluded. • Environmental permits/approvals of any type are excluded. • Any environmental reviews, investigations, assessments, and/or ornithologist observations, reports, and associated schedule impacts which may result from the project Scope of Work are excluded.
• Coordination with other projects occurring within City’s facilities has been excluded from this scope of work. Design/Builder is not responsible for delays caused by other City projects. • Painting or any other "decorative work" on the PV Power Systems or any of its components are excluded.
• Repairs or upgrades to the property which are otherwise required or discovered during the project are excluded. This can include existing electrical equipment and civil or structural improvements. • Any reporting that must be completed to government entities , other than what is required for labor compliance in the Agreement For Turnkey Design And Construction Energy Services, is excluded. • Unforeseen underground conditions are excluded.
• Suitable soil conditions, as noted in the Geotechnical Investigat ion Reports previously provided to Design/Builder by the City , are assumed at the installation site. Any added work due to differing soil conditions, seismic issues, liquefaction issues, land -use issues, or environmental concerns is excluded.
• Easements that could affect proposed underground and /or aboveground conduit or equipment installation are excluded.
• Site will be returned to previous condition where trenching takes place. New paving, new landscaping, and/or irrigation work not defined in Scope of Work is excluded. • The guarantee of tax credits from the Inflation Reduction Act are excluded. • Any new tariffs enacted after the date of the Construction Amendment No. 1 Effective Date and any increases in existing tariffs enacted after the date of the Construction Amendment No. 1 Effective Date are excluded.

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ATTACHMENT B

General
System Layout

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ATTACHMENT B

General

EXHIBIT E

PRELIMINARY CONSTRUCTION SCHEDULE

The schedule below is a preliminary construction schedule which reflects Design/Builder’s best estimation of activity durations for construction to account for anticipated design durations, equipment lead times, implementation durations, and TID Permission to Operate. While Design/Builder will strive to finish construction in advance of this s chedule, actual implementation durations will be based on coordination with City of Ceres and TID. Construction schedule updates will be periodically provided throughout the construction phase and shall reflect Design/Build best estimates.

Milestone Start Date End Date
Notice to Proceed 3/23/2026 3/23/2026
Issue Contracts 3/24/2026 4/08/2026
Complete 100% Design & Issue for Construction 4/09/2026 8/08/2026 Review and Approval of Submittals 4/09/2026 5/09/2026
Equipment Procurement Lead Time 5/10/2026 8/08/2026
Site Mobilization 8/09/2026 8/16/2026
Installation 8/17/2026 11/07/2026
Substantial Completion - Punchlist, Cx, Startup, TID PTO 11/08/2026 12/09/2026 Final Completion - Training, O&M Manuals, Closeout Docs 12/10/2026 1/09/2027

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ATTACHMENT B

General

EXHIBIT F

PROJECT FEE

The Project Fee, inclusive of ONLY the Solar PV portion of the Design Fee (equal to $250,000), shall be:
$4,988,067

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ATTACHMENT B

General

EXHIBIT G

PERFORMANCE ASSURANCE SUPPORT SERVICES AGREEMENT

1. TERM AND TERMINATION:

The Performance Assurance Support Services (“ PASS”) Agreement described in this Exhibit G will commence on the Savings Guarantee Commencement Date and will continue for an initial term of 1 year (the “ Initial Term ”). Upon expiration of the Initial Term and upon commencement of each Guarantee Year thereafter, the PASS Agreement will automatically renew for additional one -year periods (each, a “Renewal Term”) unless City terminates the PASS Agreement by giving Design/Builder written Notice of termination at least thirty (30) days prior to the end of the then -current term.

NOTWITHSTANDING ANYTHING TO THE CONTRARY, IN THE EVENT THE PASS AGREEMENT

EXPIRES OR IS CANCELED OR TERMINATED BY CUSTOMER FOR ANY REASON, THE

PERFORMANCE GUARANTEE SET FORTH IN EXHIBIT H OF THE AGREEMENT SHALL BE

DEEMED TO HAVE BEEN SATISFIED AND FULFILLED AS OF THE EFFECTIVE DATE OF

EXPIRATION, CANCELLATION OR TERMINATION OF THE PASS AGREEMENT, AND

DESIGN/BUILDER SHALL HAVE NO FURTHER OBLIGATIONS OR LIABILITIES ASSOCIATED WITH SUCH PERFORMANCE GUARANTEE.

2. SERVICE SCOPE:

a. Initial Term (Guarantee Year 1):

i. PASS Services for Guarantee Year 1 . Design/Builder shall provide the following PASS Services during Guarantee Year 1:

Remote System Monitoring & Reporting
Design/Builder will remotely access your solar system on a monthly basis. During each session, the system will be inspected , and variables will be compared to the contractual agreement. Additionally, Design/Builder will inspect the system for other areas of malfunction or energy waste and report those findings for City review. All findings will be reported and that report will be delivered to City electronically. Design/Builder will notify City if remote access is not available. City is responsible for restoring remote access and notifying Design/Builder.

Design/Builder is not responsible for providing the planned service session if remote access is unavailable. Design/Builder is also not responsible for O&M of the solar system components or solar system subscription fees, unless otherwise included in Exhibit D Scope of Work.

Measurement & Verification with Savings Reporting Portal Design/Builder will perform the measurement & verification as outlined in the M&V plan and will update the energy savings and performance portal as data is received. This website contains charts and graphs showing the energy savings by month and by meter for the project. City will be given web access to the Schneider Electric Resource Advisor website for the contacts specified by City. Changes to that contact list can be made at any time. Data can only be updated on this website if utility bills and other necessary information are provided. If bills and other necessary informa tion are not provided, Design/Builder is not responsible for maintaining updated information in the energy savings and performance portal until the missing data is provided.

On-Site Visit
Design/Builder will provide On-Site Energy Consulting consisting of 4 site visits per year (once ITEM 6
ITEM 6

ATTACHMENT B

General
per quarter). This service will include a site assessment to determine current conditions and identify areas of improvement. Each site visit will be documented in a report indicating the findings and outlining a plan for further improvement. Each site visit will vary depending upon the needs of that particular visit. City is responsible for providing access to all PV system equipment and any supervision required by City. Site visits must be requested fourteen (14) days or more prior to the requested date. Design/Builder and City will work to schedule a mutually acceptable date for each visit.
b. Renewal Terms (Guarantee Years 2-20):

i. PASS Services for Guarantee Year 2. Unless City terminates the PASS Agreement pursuant to Section 1 above or selects a change in the PASS Agreement pursuant to Section 2(c) below, the first Renewal Term (Guarantee Year 2) shall include the f ollowing PASS Services:

Remote System Monitoring & Reporting
Design/Builder will remotely access your solar system on a monthly basis. During each session, the system will be inspected , and variables will be compared to the contractual agreement. Additionally, Design/Builder will inspect the system for other areas of malfunction or energy waste and report those findings for City review. All findings will be reported and that report will be delivered to City electronically. Design/Builder will notify City if remote access is not available. City is responsible for restoring remote access and notifying Design/Builder.

Design/Builder is not responsible for providing the planned service session if remote access is unavailable. Design/Builder is also not responsible for O&M of the solar system components or solar system subscription fees, unless otherwise included in Exhibit D Scope of Work.

Measurement & Verification with Savings Reporting Portal Design/Builder will perform the measurement & verification as outlined in the M&V plan and will update the energy savings and performance portal as data is received. This website contains charts and graphs showing the energy savings by month and by meter for the project. City will be given web access to the Schneider Electric Resource Advisor website for the contacts specified by City. Changes to that contact list can be made at any time. Data can only be updated on this website if utility bills and other necessary information are provided. If bills and other necessary informa tion are not provided, Design/Builder is not responsible for maintaining updated information in the energy savings and performance portal until the missing data is provided.

On-Site Visit
Design/Builder will provide On -Site Energy Consulting consisting of four (4) site visits per year (once per quarter) . This service will include a site assessment to determine current conditions and identify areas of improvement. Each site visit will be documented in a report indicating the findings and outlining a plan for further improvement. Each site visit will vary depending upon the needs of that particular visit. City is responsible for providing access to all PV system equipment and any supervision required by City. Site visits must be requested fourteen (14) days or more prior to the requested date. Design/Builder and City will work to schedule a mutually acceptable date for each visit.
ii. PASS Services for Later Guarantee Years: Unless City terminates the PASS Agreement pursuant to Section 1 above or selects a change in the PASS Agreement pursuant to Section 2(c) below, each Renewal Term shall include the same PASS Services included with the PASS Agreement in the immediately prior Renewal Term.

ITEM 6
ITEM 6

ATTACHMENT B

General
c. Change in PASS Agreement for Renewal Term. Approximately ninety (90) days prior to the end of the then-current Renewal Term, Design/Builder and City will discuss any recommended and/or requested changes in the PASS Services for the upcoming Renewal Term. Any agreed changes to the PASS Agreement will be documented in writing and signed by both Parties at least thirty (30) days prior to the end of the then -current term, and such changes shall take effect upon commencement of the upcoming Renewal Term.

3. PASS FEES AND PAYMENT:

a. PASS Fee for Initial Term. The PASS Fee for the Initial Term is included in the Project Fee.

b. PASS Fees for Renewal Terms. Unless City terminates the PASS Agreement pursuant to Section 1 above or selects a change in the PASS Agreement pursuant to Section 2(c) above, the PASS Fee for the first Renewal Term (Guarantee Year 2) shall be $30,000.00, and such PASS Fee shall be adjusted upwards for each Renewal Term thereafter in accordance with the increase in Consumer Price Index (“CPI”).

c. Payment. After the Initial Term, the PASS Fee for each Renewal Term shall be paid within thirty (30) days of the commencement of such Renewal Term. If Design/Builder has not received payment of all undisputed amounts within thirty (30) days of the applicable invoice date, then a late penalty equal to one percent (1%) or the late penalty imposed by applicable law will be applied to the overdue amounts each month until paid.

ITEM 6
ITEM 6

ATTACHMENT B

General

EXHIBIT H

PERFORMANCE GUARANTEE

Subject to the terms and conditions of this Exhibit H and the other Performance Guarantee Exhibits, Design/Builder hereby provides the Performance Guarantee described below.

1. DEFINITIONS:

The terms listed in this Exhibit H shall have the respective meanings assigned to them below. Any other capitalized terms used but not defined in the Performance Guarantee Exhibits shall have the respective meanings assigned to them in the Agreement.

1.1. “Actual Savings” means the total savings realized or stipulated to by City during a specified period of time, as determined in accordance with the provisions of Exhibits H - J.

1.2. “Excess Savings ” means the amount (if any) by which Actual Savings exceed the Guaranteed Cumulative Savings to date , including and Actual Savings achieved prior to the Savings Guarantee commencement Date.

1.3. “Guaranteed Annual Savings” means the amount of savings guaranteed by Design/Builder for a given Guarantee Year, as set forth in the Savings Table under Exhibit H.

1.4. “Guaranteed Cumulative Savings” means, with respect to the entire Performance Period or any other specified period, the total amount of savings guaranteed by Design/Builder for such period, as set forth in the Savings Table under Exhibit H.

1.5. “Guarantee Year ” means any twelve (12) month period that begins on the Savings Guarantee Commencement Date or any anniversary thereof and that occurs during the Performance Period.

1.6. “Initial Term” has the meaning set forth in Exhibit G.

1.7. “M&V” means measurement and verification.

1.8. “M&V Plan” means the Measurement & Verification Plan set forth in Exhibit I.

1.9. “PASS Fee” means the annual dollar amount to be paid by City under the PASS Agreement.

1.10. “PASS Agreement” means the Performance Assurance Support Services Plan set forth in Exhibit G.

1.11. “PASS Services” means the services to be provided by Design/Builder under the PASS Agreement.

1.12. “Performance Guarantee ” has the meaning set forth in Section 1 of the Agreement. means Design/Builder’s guarantee to City as set forth in Exhibit H, as supplemented and/or modified by the terms and conditions of the Performance Guarantee Exhibits applicable thereto.

1.13. “Performance Period” has the meaning set forth in Exhibit H.

1.14. “Renewal Term” has the meaning set forth in Exhibit G.

1.15. “Savings Guarantee Commencement Date ” means the first day of City’s first utility billing period following Design/Builder’s issuance of the Project Substantial Completion Letter, unless the Parties agree in writing to a different Savings Guarantee Commencement Date.

1.16. “Savings Reconciliation” has the meaning set forth in Exhibit H.

ITEM 6
ITEM 6

ATTACHMENT B

General

1.17. “Savings Shortfall” means the difference between the Guaranteed Annual Savings and the Actual Savings for a given Guarantee Year.

2. TERM AND TERMINATION:

The Performance Guarantee shall commence on the Savings Guarantee Commencement Date and shall continue in effect for a period of 20 years thereafter, unless sooner terminated in accordance with the Agreement Documents (the “Performance Period”).

NOTWITHSTANDING ANYTHING TO THE CONTRARY, IN THE EVENT THE AGREEMENT OR THE

PASS PLAN EXPIRES OR IS CANCELED OR TERMINATED FOR ANY REASON, THE

PERFORMANCE GUARANTEE SET FORTH IN THIS EXHIBIT H SHALL BE DEEMED TO HAVE

BEEN SATISFIED AND FULFILLED AS OF THE EFFECTIVE DATE OF SUCH EXPIRATION,

CANCELLATION OR TERMINATION, AND DESIGN/BUILDER SHALL HAVE NO FURTHER OBLIGATIONS OR LIABILITIES ASSOCIATED WITH SUCH PERFORMANCE GUARANTEE.

3. SAVINGS RECONCILIATION:

City shall send Design/Builder all utility and energy data in accordance with the requirements of Exhibit J. Within sixty (60) days of receipt of such information for the previous Guarantee Year, Design/Builder will determine the Actual Savings for such Guarantee Year in accordance with the M&V Plan set forth in Exhibit I (such determination, the “Savings Reconciliation”).

If the Actual Savings for a Guarantee Year are less than the Guaranteed Annual Savings for such Guarantee Year, Design/Builder will pay City the Savings Shortfall, less any Excess Savings, within forty-five (45) days of completing that year's Savings Reconciliation.

Except as set forth in this Performance Guarantee, Design/Builder makes no express or implied representations, warranties, guarantees or covenants concerning the potential energy efficiency or cost savings benefits of the Work, and payment by Design/Builder for any Savings Shortfall(s) in accordance with this Performance Guarantee shall be City’s sole and exclusive remedy for any alleged energy efficiency or cost savings deficiencies.

4. GUARANTEE:

SAVINGS TABLE
Guarantee
Year #
Measured
Savings
Non-Measured
Savings
Guaranteed
Annual Savings
Guaranteed
Cumulative Savings
0 $0 $0 $0 $0
1 $170,330 $0 $170,330 $170,330
2 $176,257 $0 $176,257 $346,587
3 $222,100 $0 $222,100 $568,687
4 $229,829 $0 $229,829 $798,516
5 $237,827 $0 $237,827 $1,036,343
6 $246,103 $0 $246,103 $1,282,447
7 $254,668 $0 $254,668 $1,537,115
8 $263,530 $0 $263,530 $1,800,645
9 $272,701 $0 $272,701 $2,073,346
10 $282,191 $0 $282,191 $2,355,537
11 $292,011 $0 $292,011 $2,647,549
12 $302,173 $0 $302,173 $2,949,722
13 $312,689 $0 $312,689 $3,262,411
14 $323,571 $0 $323,571 $3,585,982
ITEM 6
ITEM 6

ATTACHMENT B

General

SAVINGS TABLE
Guarantee
Year #
Measured
Savings
Non-Measured
Savings
Guaranteed
Annual Savings
Guaranteed
Cumulative Savings
15 $334,831 $0 $334,831 $3,920,813
16 $346,483 $0 $346,483 $4,267,296
17 $358,541 $0 $358,541 $4,625,836
18 $371,018 $0 $371,018 $4,996,854
19 $383,929 $0 $383,929 $5,380,783
20 $397,290 $0 $397,290 $5,778,073
Total $5,778,073 $0 $5,778,073

ITEM 6
ITEM 6

ATTACHMENT B

General

EXHIBIT I

MEASUREMENT & VERIFICATION (M&V) PLAN

PROJECTED ANNUAL SAVINGS

The Performance Guarantee as established in Exhibit H shall consist of savings from multiple scopes of work. The projected savings from each scope of work is presented in the table below.

Annual Projected Savings
Scope of Work
Electric
kWh kW
City of Ceres Solar PV 1,422,709 0
Total 1,422,709 0

The projected savings in the table above are provided for reference only and are not intended to construe a savings guarantee by meter, facility, or energy unit. The savings guarantee is fully defined in Exhibit H.

ENERGY, WATER, AND OPERATIONS & MAINTENANCE (O&M) RATE DATA

The cost of energy in any period will be determined by applying the rates as defined below (“Baseline Energy Rates”), or the actual energy rates during the period, at the discretion of Design/Builder, to the energy used in a given period for each fuel type. These rates will escalate at eight percent (8%) beginning in year 1, and four percent (4%) per year beginning in Year 2.

Option B Solar Marginal Rate
Site $/kWh
Ceres WWTP Solar Years 1 & 2 $0.1114
Ceres WWTP Solar Years 3 – 20* $0.1357
* Assume higher load from
upgraded Water Resources
Recovery Facility (WRRF)

ITEM 6
ITEM 6

ATTACHMENT B

General
Option B – Solar PV
A. Overview of M&V Plan, and Savings Calculation
B. Energy Savings Calculations
C. Parameter Measurement Strategy
D. Cost Savings Calculations

A. Overview of M&V Plan, and Savings Calculation

Savings in this section are determined by using an “Option B: Retrofit Isolation – All Parameter Measurement” approach as described in the International Performance Measurement & Verification Protocol (IPMVP Volume I, EVO 10000-1:2012). The remainder of this section describes the energy savings calculations, parameter measurements that will be conducted, and how cost savings will be calculated. The energy and cost savings will be determined using this approach for each year of the Performance Period.

B. Energy Savings Calculations

Provided within this section is an explanation of the calculations that will be used to perform energy savings calculations for this verification method.

The production, solar irradiance, ambient temperature , and module temperature will be measured beginning in the Performance Period. The relationship between those variables will be determined and a performance curve created. Savings are calculated as the production normalized to a typical year’s irradiance. Normal solar irradiance is based on the TMY3 weather data for Modesto, CA. This approach verifies the performance characteristics of the PV system but does not take accountability for excess/insufficient solar opportunity.

PV savings will be calculated each year of the Performance Period at the end of the guarantee d year.

During the construction period, PV savings will be reported as actual production rather than as normalized production and will be considered Excess Savings.

Design/Builder reserves the right to make non-routine adjustments in the case of inverter failure outside the control of Design/Builder, shading resulting from structures or vegetation constructed after the Effective Date, snow cover, or other causes as detailed in Exhibit J.

C. Parameter Measurement Strategy

This section outlines the measurements that will be conducted to determine the measured values in the equations provided above in Paragraph B. For this PV project, the parameters that will be measured are the production from the solar panels, the available solar irradiance, and module temperature . Production will be measured with the installed production meter(s), and solar irradiance and module temperature will be measured with the installed local sensors at intervals no longer than one hour. All productio n at the Ceres Wastewater Treatment Plant (WWTP) will be included in the Solar PV savings calculations.

D. Cost Savings Calculations

This section provides the methods and equations used to determine the cost savings associated with this particular methodology.

Normalized production will be converted to cost savings using the utility rates as defined in Exhibit I, Energy, Water, and O&M Rate Data. These rates will escalate at eight percent (8%) beginning in Year 1, and four percent (4%) per year beginning in Year 2.

ITEM 6
ITEM 6

ATTACHMENT B

General
Equation 1 – Total Cost Savings
$𝑠𝑎𝑣𝑒 = ∑(𝐸𝑠𝑎𝑣𝑒 × $𝐸)𝑖
𝑛
𝑖=1

Where,
$save = Guarantee year cost savings
Esave = Total production (kWh)
$E = Marginal rate for kWh
n = Total number of production meters

ITEM 6
ITEM 6

ATTACHMENT B

General

EXHIBIT J

CITY RESPONSIBILITIES FOR PERFORMANCE GUARANTEE

GENERAL RESPONSIBILITIES

City acknowledges and agrees that proper maintenance is essential to any energy conservation program.

Therefore, City agrees to undertake the following responsibilities:

City agrees to: (1) provide, or cause its suppliers to provide, periodic utility invoices to Design/Builder within ten (10) days of receipt, (2) execute all City responsibilities as outlined herein, and (3) provide to Design/Builder reasonable access to all City facilities and information necessary for Design/Builder to perform its responsibilities. Access will include, but is not limited to, the following items:

• All buildings listed within this Contract
• All buildings served by the meters listed within this Contract • All mechanical equipment rooms in the buildings listed within this Contract • Remote connection to all temperature control and energy management systems which control part or all of any of the buildings listed within this Contract. Remote connections will use a cyber secure access point approved by Design/Builder.
• Personnel with responsibility for operating and/or managing any of the buildings listed within this Contract
• Monthly utility invoices and billing history for all of the meters listed within this Contract • Construction documents, equipment inventories, and other documents that may be helpful in evaluating a cause for adjustment as listed within this Contract • Any data from meters or sub-meters relevant to M&V associated with this Contract

City will be solely responsible for providing communications and/or network interface to all buildings for operation and PASS support.

City will perform daily facilities monitoring and promptly review any alarm summaries.

City will designate a “Primary Operator” of the system. The Primary Operator is defined as the individual who will be trained by Design/Builder during the installation period and will be responsible for daily operation and maintenance of the equipment and systems necessary to achieve the Performance Guarantee. City will notify Design/Builder within five (5) days after the departure or termination of the Primary Operator.

Within ten (10) days of the departure of the current Primary Operator, City will designate a new Primary Operator and shall provide Design/Builder access to train the new Primary Operator. Design/Builder shall train a new Primary Operator at the sole expense of City on a time and materials basis.

MAINTENANCE RESPONSIBILITIES

City agrees to use its best efforts to maintain the ECMs in original operating condition (“Original Operating Condition”) with allowance for normal wear and tear. If an ECM is operating at any state other than the Original Operating Condition as defined above (“Failed ECM”), City agrees to (1) repair or replace the ECM immediately, and (2) contact a PASS representative at 1 -800-274-5551, within twenty-four (24) hours of such event. Design/Builder reserves the right to adjust the amount of Performance Guaran tee associated with the Failed ECM for the duration of the failure in the Annual Savings Guarantee.

City will agree to maintain all parts of the Project site(s) where the ECM(s) reside including but not limited to components, equipment, machinery, energy management systems, structure of the facility(s), computer hardware, network, and IT systems, either existing or newly installed. City must comply with the general maintenance requirements specified by equipment manufacturers and the maintenance tasking guidelines included in the operating and maintenance manual. City will be responsible to , provide to Design/Builder documentation that proper maintenance has been performed at Design/Builder’s request within fifteen (15) days of written request.

ITEM 6
ITEM 6

ATTACHMENT B

General

Notwithstanding anything to the contrary contained herein, all ECM(s) must be maintained in proper working condition, in all cases where the performance of said ECM(s) affects or could affect the ability to achieve, measure, or verify the Annual Savings Guarantee. Should City refuse to perform the required maintenance as required in this Contract, Design/Builder and City shall agree to one of the following means of recourse:
(1) Design/Builder will adjust the Performance Guarantee associated with that ECM p ursuant to Exhibit J, or (2) Design/Builder may terminate this Performance Guarantee and any and all obligations and liabilities of Design/Builder associated therewith upon fifteen (15) days written notice.

ADJUSTMENT RESPONSIBILITIES

In addition to the responsibilities of City set forth in this Exhibit, City also agrees to undertake the responsibilities set forth in the Adjustment Schedule Is necessary.

ADJUSTMENT SCHEDULE

Below is the procedure for accounting for non -routine adjustments for any of the utility meters included in Exhibit I. A non-routine adjustment is required for any change outside of those explicitly defined in Exhibit I that will impact the energy use or the verified savings under this Contract. It is City’s responsibility to notify Design/Builder of any changes that may necessitate a non-routine baseline adjustment and to perform the required non-routine baseline adjustment steps identified below at City’s sole expense.

CITY REQUIRED NON-ROUTINE BASELINE ADJUSTMENT RESPONSIBILITIES

If the required non-routine baseline adjustment steps are not performed, and the change is greater than the threshold limit, savings will be determined with the Assumed Savings Procedure Adjustment, as defined below. Actual Savings will be determined using the Assumed Savings Procedure Adjustment for all billing periods until the required non-routine baseline adjustment steps have been completed, or until the change which necessitated the non -routine baseline adjustment is no longer in place. If City fails to notify Design/Builder of a change necessitating a non-routine baseline adjustment or fails to provide details of the change, savings will be determined with the Assumed Savings Procedure Adjustment.

If the required non -routine baseline adjustment steps are not performed, and the change is less than the threshold limit, savings will be determined with the “Estimated Savings Procedure Adjustment”. Actual Savings will be determined using the Estimated Sa vings Procedure Adjustment for all billing periods until the required non -routine baseline adjustment steps have been completed, or until the change which necessitated the non-routine baseline adjustment is no longer in place.

1. Addition of New Building or New Energy User
• All utility services to the building or energy user which affect the energy use of any meter included in Exhibit I must be sub-metered at City’s expense.
• Threshold limit: the lesser of ten percent (10%) of the area served by any affected meter, as defined in Exhibit I or 20,000 ft2.

2. Addition to Existing Building
• All utility services to the addition which affect the energy use of any meter included in Exhibit I must be sub-metered at City’s expense.
• Threshold limit: the lesser of ten percent (10%) of the area served by any affected meter, as defined in Exhibit I or 20,000 ft2.

3. Renovation / Modification to Existing Building or Utility Service • All utility services for the affected portion of the building must be sub -metered before and after the change until the effect on the energy consumption has been determined at City’s expense. • Threshold limit: the lesser of ten percent (10%) of the area served by any affected meter, as defined in Exhibit I or 20,000 ft2.

ITEM 6
ITEM 6

ATTACHMENT B

General

4. Demolition / Abandonment of Existing Building or Utility Service • All utility services for the affected buildings must be sub-metered before and after the change until the effect on the energy consumption has been determined at City’s expense. • Threshold limit: the lesser of ten percent(10%) of the area served by any affected meter, as defined in Exhibit I or 20,000 ft2.

5. Re-commissioning of Out of Service Building
• All utility services for the affected buildings must be sub-metered before and after the change until the effect on the energy consumption has been determined at City’s expense. • Threshold limit: the lesser of ten percent (10%) of the area served by any affected meter, as defined in Exhibit I or 20,000 ft2.

6. Change in Occupancy
• City must perform, or cause to be performed, at City’s expense, a calibrated computer simulation to account for the change. If the impact computed by the simulation is greater than twenty percent (20%) of the projected savings on the meter, the “Assumed Savings Procedure” listed below will be followed. In no event will the adjusted savings be reported as less than the savings achieved in the preceding project year.
• Threshold limit: five percent (5%) of the total occupant count in the base year.

7. Change in Schedule
• City must perform, or cause to be performed, at City’s expense, a calibrated computer simulation to account for the change. If the impact computed by the simulation is greater than twenty percent (20%) of the projected savings on the meter, the Assumed Savings Procedure will be followed. In no event will the adjusted savings be reported as less than the savings achieved in the preceding project year.
• Threshold limit: five percent (5%) of the total scheduled hours for the meter as defined in Exhibit I.

8. Change in Set-points
• City must perform, or cause to be performed, at City’s expense, a calibrated computer simulation to account for the change. If the impact computed by the simulation is greater than twenty percent (20%) of the projected savings on the meter, the Assumed Savings Procedure will be followed. In no event will the adjusted savings be reported as less than the savings achieved in the preceding project year.
• Threshold limit: An average of 0.5° from the set-points defined in Exhibit I.

9. Change in Operational Calendar
• City must perform, or cause to be performed, at City’s expense, a calibrated computer simulation to account for the change. If the impact computed by the simulation is greater than twenty percent (20%) of the projected savings on the meter, the Assumed Savings Procedure will be followed. In no event will the adjusted savings be reported as less than the savings achieved in the preceding project year.
• Threshold limit: five percent (5%) of the total scheduled hours for the meter as defined in Exhibit I.

10. Change in Plug Load
• City must perform, or cause to be performed, at City’s expense, a simulation of energy impact to account for the change. If the computed impact is greater than twenty percent (20%) of the projected savings on the meter, the Assumed Savings Procedure will be followed. In no event will the adjusted savings be reported as less than the savings achieved in the preceding project year. • Threshold limit: one percent ( 1%) of the base year peak 15 -minute average kW for the affected meter.

ITEM 6
ITEM 6

ATTACHMENT B

General

11. City Initiated ECMs
• City must develop and execute an M&V plan at City’s expense, which has been reviewed and approved by Design/Builder, to evaluate the impact of the change. If the impact determined by the M&V plan is greater than twenty percent (20%) of the projected savings on the meter, the Assumed Savings Procedure will be followed. In no event will the adjusted savings be reported as less than the savings achieved in the preceding project year.
• Threshold limit: two percent (2%) of the projected savings on any affected meter.

12. Missing Bills
• City is required to provide Design/Builder with utility bills for meters defined in Exhibit I within ten (10) days of receipt of each bill or provide Design/Builder direct access to retrieve the utility bills electronically. If utility bills are not received by Design/Builder within sixty (60) days of the end of the service date, the Assumed Savings Procedure will be used.

13. Failure to Operate ECMs According to Operational and Design Intent • City agrees to operate the ECMs according to the Operational and Design Intent of the ECMs.

Failure to do so will necessitate a baseline adjustment using the Assumed Savings Procedure.

14. Failure to Perform Project Specific City Responsibilities • City agrees to perform the project specific City responsibilities as defined in Exhibit J. Failure to do so will necessitate a baseline adjustment using the Assumed Savings Procedure.

15. Other Causes
• Any change that impacts the energy use on the meters defined in Exhibit I that does not fit into any of the other categories may still require a non -routine baseline adjustment. City will notify Design/Builder before any change is made so that an agreeable adjustment strategy can be determined. If no agreeable adjustment method can be reached, the Assumed Savings Procedure will be used.

ASSUMED SAVINGS PROCEDURE ADJUSTMENT

• If the Actual Savings for the affected meter(s) in the prior Guarantee Year are greater than or equal to the projected savings for the affected meter(s), the Actual Savings from the prior Guarantee Year will be reported while savings are assumed for the affected meter(s). • If the Actual Savings for the affected meter(s) in the prior Guarantee Year are less than the projected savings for the affected meter(s) and there have been less than twenty-four (24) months since the commencement of the Performance Period, Actual Savings will be reported at the projected savings level while savings are assumed for the affected meter(s). • If the Actual Savings for the affected meter(s) in the prior Guarantee Year are less than the projected savings for the affected meter(s) and there have been twenty -four (24) months or more since the commencement of the Performance Period, Actual Savings w ill be reported as the average of the achieved savings over the two (2) most recent Guarantee Year plus half (1/2) of the difference between the projected savings and the average of the achieved savings over the two (2) most recent Guarantee Years.
o If pursuant to the Assumed Savings Procedure, Design/Builder makes improvements to the Project beyond the original scope as defined in Exhibit D Construction Scope of Work ., which results in an increase in the Actual Savings, an M&V plan accounting for those improvements will be executed and the resulting savings will be added to the Actual Savings.

ESTIMATED SAVINGS PROCEDURE ADJUSTMENT

• At Design/Builder’s sole discretion, Design/Builder will estimate the impact of the change using computerized building simulations, manual calculations, or other generally accepted estimating procedures and may ignore any changes which fall below the threshold limit.

ITEM 6
ITEM 6
ITEM 6
ITEM 6

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: March 23, 2026
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT:

Trenton Johnson, Police Chief
[email protected], (209) 538-5725
Travis Hudson, Lieutenant
[email protected], (209) 538-5607
SUBJECT:

Resolution No. 2026 -XXX, Approving a Three-Year Service Agreement with Jay’s Tires for Upfitting Police Department Vehicles and Authorizing the City Manager to Execute the Agreement
RECOMMENDED COUNCIL ACTION:

Staff recommends the City Council authorize the City Manager to enter into a three-year service agreement with Jay’s Tires for upfitting Police Department vehicles and authorizing the City Manager to execute the agreement.

I. BACKGROUND:

The Police Department patrol fleet has evolved to include increasingly complex electrical, communications and safety systems. Traditionally, the City’s Fleet Department has performed patrol vehicle upfitting in addition to its primary responsibility of mai ntaining vehicles for all City departments.

The Fleet Department is currently managing a high workload with limited staffing resources. Patrol vehicle upfitting is a labor-intensive and highly specialized process that competes with essential fleet maintenance and repair functions.

II. REASONS FOR RECOMMENDATION:

Jay’s Tires is owned by Jason Brown and Cody Williams. The location providing the upfitting is located in Ceres, keeping the business revenue local. They have been ITEM 7
providing upfitting services for the Modesto Police Department and the Stanislaus County Sheriff’s Office. Two years ago, Jay’s upfitted our CNT Van and staff found the level of service and workmanship to be superior.

Private patrol vehicle upfitting companies , such as Jay’s Tires, specialize exclusively in law enforcement vehicle construction. These vendors utilize standardized designs, dedicated technicians, and purpose -built facilities that allow patrol vehicles to be completed in a more timely and consistent manner.

Using Jay’s Tires will reduce the time required to place new patrol vehicles into service, improving fleet availability and operational readiness. In addition, vendor -built vehicles typically demonstrate improved workmanship, organization of electrical systems, and long-term reliability, resulting in fewer equipment-related issues during service life.

Transitioning this function from in-house to Jay’s Tires will reduce the operational burden on our Fleet Department. By removing patrol vehicle responsibilities, Fleet staff will be able to focus on preventative maintenance, repairs, and support for the City’s overall vehicle inventory. This is particularly important given current staffing levels and workload demands within the Fleet Department.

In conclusion, the use of Jay’s Tires for patrol vehicle upfitting provides operational efficiencies, improved build quality and timely deployment of patrol vehicles, while relieving workload pressures on an understaffed Fleet Department. This approach supports both the Police Department operations and reflects responsible management of City resources.

III. FISCAL IMPACTS:

This agreement establishes and secures the hourly rate of $125.00 and the maximum of $30,000 per vehicle for upfitting with Jay’s Tires. There is no fiscal impact associated with this item at this time. Any future vehicle upfitting will be presented to City Council for approval and will include a detailed budget appropriation outlining the cost.

IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

Approval of this agreement fulfills the strategic plan for Government Operations: “Provide quality services to meet community needs, assuring that the City has…properly equipped…staff.”
V. POLICY ALTERNATIVES:

Council could choose not to approve this service agreement. Staff would then continue to use in -house patrol vehicle upfitting which will result in delays in patrol vehicle deployment and added strain on the Fleet Department staff.

VI. INTERDEPARTMENTAL COORDINATION:

This transition was coordinated with the Fleet Department, Finance Department, IT Department, and the City Manager. It was determined that the Fleet Department will continue to research and purchase Police Department vehicles, and the IT Department ITEM 7
will continue to install and maintain the in -vehicle computers and associated equipment.

VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

Following Council approval, the Service Agreement will be routed through the City Clerk’s office for the appropriate signatures.

Approved by: ____________________
Douglas D. Dunford,
City Manager
Attachments:

1. Attachment A – Resolution

2. Attachment B – Agreement
ITEM 7
ITEM 7

ATTACHMENT A
RESOLUTION NO. 2026-XXX
APPROVING A THREE-YEAR SERVICE AGREEMENT WITH JAY’S TIRES

FOR UPFITTING POLICE DEPARTMENT VEHICLES AND AUTHORIZING

THE CITY MANAGER TO EXECUTE THE AGREEMENT

THE CITY COUNCIL
City of Ceres
WHEREAS, the City of Ceres Police Department relies on a safe, reliable, and fully equipped patrol vehicle fleet to effectively provide public safety services to the community; and WHEREAS, the patrol fleet has evolved to include increasingly complex electrical, communications and safety systems; and
WHEREAS, the City of Ceres Fleet Department is currently managing a high workload with limited staffing resources; and
WHEREAS, Patrol vehicle upfitting is a labor -intensive and highly specialized process that competes with essential fleet maintenance and repair functions; and WHEREAS, qualified private patrol vehicle upfitting vendors specialize in law enforcement vehicle construction and are able to complete vehicle builds in a timely, consistent and high-quality manner; and
WHEREAS, utilizing Jay’s Tires to upfit our vehicles will improve the efficiency of patrol vehicle deployment, enhance build quality and reliability, and all the Fleet Department personnel to focus on core maintenance and repair responsibilities; and WHEREAS, all future vehicle upfit projects to be paid for through this agreement will be brought before the Council for approval, including the required budget appropriation.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ceres hereby approves a three-year service agreement with Jay’s Tires for upfitting Police Department vehicles and authorizes the City Manager to execute the agreement.

PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on 23rd day of March 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
______________________________________
Javier Lopez, Mayor
ATTEST:
______________________________________________
Fallon Martin, City Clerk
ITEM 7
ITEM 7

PROFE SSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

PROFESSIONAL SERVICES AGREEMENT
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 23rd day of March, 2026 (the “Effective Date”), by and between the City of Ceres, a California municipal corporation (“City”), and Jay’s Tires, a California corporation (“Professional”). City and Professional may herein be referred to individually as a “Party” and collectively as the “Parties.” There are no other parties to this Agreement.

RECI
TALS
A. City seeks to hi re an independent contractor to perform vehicle build out services for the City of Ceres Pol ice Department (the “Project”) B. Professional has submitted a proposal to City to provide such professional services.

A description of the services Professional proposes to provide (“Services”) is at tached hereto as Exhibit A: Services. City desires to retain Professional to perform the Services, subject to the t
erms and conditions set forth in this Agreement.

C. The Parties have outlined the rates and method of payment to Professional for its pe
rformance of the Services under this Agreement, which shall be included in the Scope of S
ervices in Exhibit A.

NOW, THEREFORE, in consideration of the mutual promises and covenants set for th below, the Parties agree as follows:

AGREEMENT
Section 1. Recitals . The recitals set forth above (“Recitals”) are true and correct and are her
eby incorporated into and made part of this Agreement by this reference. In the event of any inconsistency between the Recitals and Sections 1 through 32 of t his Agreement, Section 1 through 32 shal
l prevail.

Section 2. Term. The term of this Agreement shall be three years and will commence on March 23, 2026, and terminate on March 22, 2029 (“Term”) unless the Term is extended or the Agreement is terminated earlier pursuant to this Agreement.

Se
ction 3. Extension of Agreement . City may elect to extend this Agreement for two (2) addi
tional years , on the same terms and conditions, upon issuing an “Election to Extend Agreement” letter executed by the City Manager to Professional thirty (30) days prior to the expi
ration of this Agreement.

ATTACHMENT B
ITEM 7

PROFE SSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

Section 4. Work .

4.1. CO
NTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, bonds and insurance necessary to perform and complete the required work as specified below and in strict accordance with the conditions of the complete agreement.

CON
TRACTOR shall do and perform the work contemplated hereby in a good workman-like manner under the direction of and to the satisfaction of the CITY representative.

CON
TRACTOR shall maintain proper insurance with the CITY for the duration of the AGREEMENT.

CON
TRACTOR shall maintain a CITY business license for the duration of the AGREEMENT.

CON
TRACTOR shall furnish said services at the following AGREEMENT rates.

AGREEMENT PRICING
STANDARD ORDER PARTS1
Minimum Discount Off List Price 20%
SPECIAL ORDER PARTS2
Minimum Discount Off List Price 20%
LABOR RATES (per hour)
Pickup/Delivery/Travel $125.00
Custom Box Fabrication $125.00
Law Enforcement/Small Vehicle Upfitting/Strip-Outs $125.00 Shop Rate $125.00
Fabrication $125.00
Mobile Service $125.00
Vehicle Down/Emergency $125.00
1 “Standard-Order Parts” refers to parts from manufacturers for whom the contractor is a licensed reseller. 2 “Special Order Parts” refers to parts from manufacturers for whom the contractor is not a licensed reseller.

4.2. Serv
ices. Subject to the terms and conditions set forth in this Agreement, Professional shall provide City the Services described in Exhibit A. If any conflicts exist between the terms of this Agreement and Exhibit A, the terms of this Agreement shall control. Any request for Services not included in Exhibit A will be considered a request for additional or modified Services (“Modification” or “Modifications”). Professional shall not receive additional compensation for any Modification of the Services unless the Parties agree otherwise in a writing executed by both Parties.

4.3. Ci
ty Requested Modification of Services . City may, by written order, authorize Modifications to the Services described in Exhibit A . If such Modifications cause an increase in the cost or time required for performance of Professional’s Services, the Parties shall enter into a written amendment to this Agreement to adjust the Services and the rates to be paid to Professional.

ATTACHMENT B
ITEM 7

PROFE SSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

The Services shall not be revised unless City and Professional mutually agree to a written amendment to this Agreement reflecting such revisions, additional compensation, tim e for performance, or such other terms or conditions mutually agreed upon by the Parties.

4.4. Pro
fessional Requested Modification in Services . Professional shall not be compensated for work outside the Services described in this Agreement, unless, prior to the commencement of the Services:
(a) Pr
ofessional provides City with written notice that specific work requested by City or required to complete the Project is outside the agreed upon Services. Such notice shall:
(i) be supported by substantial evidence that the work is outside the Services; and (ii) set forth the Professional’s proposed course of action for completing the work and a specific request for City to approve the Modification to the Services; and
(b) City
agrees that the work requires a Modification;
(c) T
he Parties execute a written amendment to this Agreement describing any Modification. Compensation for any additional Services shall not exceed One hundred twenty five Dollars ($125.00) per hour.

Secti
on 5. Compensation .

5.1. A
mount, Time, and Manner of Payment for Professional Services . City shall pay Professional according to the rates and timing set forth in Exhibit A. City’s total compensation to Professional shall not exceed thirty thousand Dollars ($30,000.00) (“Maximum Payment”) per vehicle unless the Parties mutually agree in writing otherwise. Professional hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Professional anticipates and that Professional shall not be entitled to additional compensation unless agreed otherwise by the Parties.

5.2. Subse
quent Payments. City shall make monthly payments in the amount invoiced by Professional within thirty (30) calendar days of receiving such invoice. In the event that an amount of an invoice is in dispute, City shall inform Professional of the amount and basis for the dispute and may withhold the amount which is in dispute until the dispute has been resolved.

5.3. In
voices. Professional shall provide City with monthly invoices sufficiently evidencing Professional’s expenses and completion of the Services. All invoices furnished to City by Professional shall be in a form approved by City . The payments specified shall be the only payments made to Professional for performance of the Services, including compensation for any Modification. Professional shall submit all billings for Services to City within forty-five (45) days of the performance of such Services. City shall issue payment according to City ’s custom ary procedures and practices for issuing payments to independent contractors.

5.4. Rei
mbursement. City shall pay Professional for reimbursable expenses specified in Exhibit A incurred related to Professional ’s performance of the Services. Such reimbursable

ATTACHMENT B
ITEM 7

PROFE SSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

costs shall be invoiced and billed to City on a monthly basis, provided that in no event shall reimbursable expenses exceed thirty thousand Dollars ($30,000.00) per vehicle.

Secti
on 6. Notice to Proceed . Professional shall not commence the performance of the Services until it has been given notice by City (“Notice to Proceed”).

Secti
on 7 Time of Performance. Professional will commence performance of the Services within seven (7) calendar days of the date the Notice to Proceed. The time of performance is a material term of this Agreement relied on by City in entering into this Agreement.

Secti
on 8. Professional’s Resources. Professional shall, at its sole cost and expense, furnish all facilities, equipment, materials, information, personnel, and administrative assistance which may be required to perform its obligations under this Agreement , with the exception of items of City assistance specified in Exhibit A.

Secti
on 9. Duties of City . In order to permit Professional to render the services required hereunder, City shall, at its expense and in a timely manner: (a) Provide such information as Professional may reasonably require to undertake or perform the Services; (b) Promptly review any and all documents and materials submitted to City by Professional in order to avoid unreasonable delays in Professional’s performance of the Services; and (c) Promptly notify Professional of any fault or defect in the performance of Professional’s services hereunder.

Secti
on 10. Time and Personnel Devoted to Services. Professional shall devote such time and personnel to the performance of this Agreement, as is necessary to perform the Services in compliance with this Agreement.

Secti
on 11. Performance by Qualified Personnel; No Subcontracting . Services under this Agreement shall be performed only by competent personnel under the supervision and direct employment of Professional. Professional will conform with City’s reasonable requests regarding assignment of personnel, but all personnel, including those assigned at City ’s request, shall be supervised by Professional. Professional is prohibited from subcontracting this Agreement or any part of it unless such subcontracting is expressly approved by City in writing. Neither Party shall, on the basis of this Agreement, contract on behalf of, or in the name of the other Party. An agreement made in violation of this provision shall confer no rights on any Party and shall be null and void.

Secti
on 12. Representations of Professional . City relies upon the following representations by Professional in entering into this Agreement:

12.1. Qua
lifications. Professional represents that it is qualified to perform the Services provided in Exhibit A and that it possesses the necessary licenses and permits required to perform the Services or will obtain such licenses or permits prior to the time such licenses or permits are required. Professional shall also ensure that all subcontractors are similarly licensed and qualified.

Professional represents and warrants to City that Professional shall, at Professional's sole cost and expense, keep in effect or obtain at all times during the Term of this Agreement, any licenses,

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

permits, and approvals which are legally required for Professional to practice Professional's profession at the time the Services are rendered.

12.2. P
rofessional Performance. Professional represents that all Services under this Agreement shall be performed in a manner consistent with the professional skill and care ordinarily provided by consultants practicing in the same or similar locality under the same or similar circumstances. Professional shall perform its services as expeditiously as is consistent with such professional skill and care and as necessary for the orderly progress of the Project. Professional agrees that, if a Service is not so performed, in addition to all of its obligations under this Agreement and at law, Professional shall re- perform or replace unsatisfactory Service at no additional expense to City.

12.3. N
o Waiver of Claims. The granting of any progress payment by City, or the receipt thereof by Professional, or any inspection, review, approval or oral statement by any representative of City, or state certification shall not, in any way, waive, limit, or replace any certification or approval procedures normally required or lessen the liability of Professional to re -perform or replace unsatisfactory Service, including, but not limited to, case s where the unsatisfactory character of such Service may no t have been apparent or detected at the time of such payment, inspection, review or approval.

12.4. C
ity’s Remedies are Cumulative. Nothing in this Section shall constitute a waiver or limitation of any right or remedy, whether in equity or at law, which City or Professional may have under this Agreement or any applicable law. All rights and remedies of City , whether under this Agreement or applicable law, shall be cumulative.

12.5. N
o Conflict of Interest. Professional represents that no conflict of interest will be created under state or federal law by entering into or in carrying out this Agreement.

Sect
ion 13. Conformity with Law and Safety. Professional shall observe and comply with all applicable laws, ordinances, codes, regulations, and permits of governmental agencies, including federal, state, municipal and local governing bodies having jurisdiction over any or all of the scope of Services, including all provisions of the Occupational Safety and Health Act of 1979 as amended, all California Occupational Safety and Health Regulati ons, the California Building Code, the Americans with Disabilities Act, any copyright, patent, or trademark law, and all other applicable federal, state, municipal and local safety regulations, appropriate trade association safety standards, and appropriate equipment manufacturer instructions. All Services performed by Professional must be in accordance with these laws, ordinances, codes, and regulations, including the administrative policies and guidelines of City pertaining to the work. Professional’s failure to comply with any laws, ordinances, codes, o r regulations applicable to the performance of the Services hereunder shall constitute a breach of contract. In cases where standards conflict, the standard providing the highest degree of protection shall prevail.

If
a death, serious personal injury, or substantial property damage occurs in connection with the performance of this Agreement, Professional shall immediately notify City Manager by telephone. If any accident occurs in connection with this Agreement, Professional shall promptly submit a written report to City , in such form as City may require. This report shall include the

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

following information: (a) Name and address of the injured or deceased person(s); (b) N ame and address of Professional's subcontractor, if any; (c) N ame and address of Professional's liability insurance carrier; and (d) A detailed description of the accident, including whether any of City 's equipment, tools or materials were involved.

If
a release of a hazardous material, substance, or waste occurs in connection with the performance of this Agreement, Professional shall immediately notify City Manager.

Sect
ion 14. Contact by Professional with Project Owner or Project Applicant . Unless otherwise set forth in the Services, neither Professional nor Professional's subcontractors shall directly contact the owner of the property involved in the Project or any party who is the applicant for the Project (“Interested Party”), or an employee or contractor of an Interested Party, on any matter relating to the Project without the prior consent of City. In no event shall Professional take any instructions or directions from an Interested Party on any matter pertaining to the Professional's Services to be performed for City under this Agreement.

Sect
ion 15. Confidentiality. Professional understands and agrees that, in the performance of Services under this Agreement or in the contemplation thereof, Professional may have access to private or confidential information that may be owned or controlled by City and that such information may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to City (“Confidential Information”).

Pr
ofessional shall not, either during or after the Term, disclose to any third party any Confidential Information without the prior written consent of City . If City gives Professional written authorization to make any such disclosure, Professional shall do so only within the limits and to the extent of that authorization. Professional may be directed or advised by the City ’s General Counsel on various matters relating to the performance of the Services on the Project or on other matters pertaining to the Pr oject and, in such event, Professional agrees that it will treat all communications between itself, its employees and its subcontractors as being communications which are within the attorney-client privilege.

Not
withstanding the foregoing, Professional may disclose Confidential Information required to be disclosed under law, provided that, prior to disclosure, Professional shall first give notice to City and make a reasonable effort to obtain a protective order requiring that City ’s Confidential Information not be disclosed. This exception is limited to the extent disclosure is required under law.

Sect
ion 16. Ownership of Work Product . Any and all work, artwork, copy, posters, billboards, photographs, videotapes, audiotapes, systems designs, software, reports, designs, specifications, drawings, diagrams, surveys, source codes, professional or technical information or data, photographs, notes, letters, emails or any original works of authorship created by Professional or its subcontractors or subcontractors in connection with Services performed under this Agreement (“Products”) shall be works for hire as defined under Title 17 of the United States Code, and all copyrights in such works are the property of City. In the event it is ever determined that any Product created by Professional or its subcontractors, or subcontractors under this Agreement, are not works for hire under U.S. law, Professional hereby assigns all copyrights to

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

such Products to City . With the prior written approval of City ’s point of contact for the Project, Professional may retain and use copies of such Products for reference and as documentation of its experience and capabilities.

Al
l Products shall become the property of City irrespective of where located or stored, and Professional agrees to deliver all such documents and information to City , without charge and in whatever form it exists, on the completion of the Professional's Services hereunder. Professional shall have no ownership interest in such Products.

Al
l work product of Professional under this Agreement, including written information which City will cause to be distributed for either internal or public circulation, including both preliminary and final drafts, shall be delivered to City in both printed and electronic form, or as may be specified in Exhibit A.

Upon t
he conclusion of the Term or in the event of Termination of this Agreement , Professional agrees, at its expense and in a timely manner, to return to City all documents, drawings, photographs and other written or graphic material, however produced, that it received from City, its contractors, or agents, in connection with the performance of its Services under this Agreement. All materials shall be returned in the same condition as received.

Sect
ion 17. Assignment Prohibited . No Party to this Agreement may assign any right or obligation pursuant to this Agreement. Any attempt or purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect.

Sect
ion 18. Excusable Delays; Notice to Other Party of Delay. Professional shall not be in breach of this Agreement in the event that performance of Services is temporarily interrupted or discontinued due to a “Force Majeure” event which is defined as: riots, wars, sabotage, civil disturbances, insurrections, explosion, natural disasters such as floods, earthquakes, landslides, fires, strikes, lockouts and other labor disturbances or other catastrophic events, which are beyond the reasonable control of Professional. Force Majeure does not include: (a) Professional’s financial inability to perform; (b) Professional’s failure to obtain any necessary permits or licenses from other governmental agencies; or (c) Professional’s failure to obtain the right to use the facilities of any public utility where such failure is due solely to the acts or omissions of the Professional.

Sect
ion 19. Suspension of Services by City . City reserves the right to suspend Professional's Services under this Agreement when City determines that it is necessary to do so. When possible, City shall give Professional notice of such suspension and Professional shall, upon receipt of said notice, suspend all Services except any Services, the completion of which is authorized by the notice given by City . If the Services are suspended by City for more than sixty (60) consecutive days, for reasons other than the fault of the Professional, the Professional shall be compensated for Services performed prior to notice of such suspension. When the Project is resumed, the Professional's compensation shall be equitably adjusted by City to provide for expenses incurred by the interruption of the Services. In this regard, Professional shall furnish to City such financial information that, in the judgment of the City Manager, is necessary to determine the reasonable value of the Services rendered by Professional during the period when Services were suspended.

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

Section 20. Termination of Work by City for Its Convenience. City shall have the right to terminate this Agreement at any time for its convenience by giving notice of such termination to Professional (“Termination”). In the event City shall give such notice of termination, Professional shall cease rendering Services upon receipt of said notice given as required in this Agreement. If City terminates this Agreement:
(a) P
rofessional shall deliver copies of all Products prepared by it pursuant to this Agreement.
(b)
If City terminates this Agreement for convenience before City issues the Notice to Proceed to Professional or before Professional commences any Services hereunder, whichever last occurs, City shall not be obligated to make any payment to Professional. If City terminates this Agreement after City has issued the Notice to Proceed to Professional and after Professional has commenced performance under this Agreement, City shall pay Professional the reasonable value of the Services rendered by Professional pursuant to this Agreement prior to termination of this Agreement. City shall not in any manner be liable for Professional's actual or projected lost profits had Professional completed the Services. Professional shall furnish to City such financial information that, in the judgment of the City Manager, is necessary to determine the reasonable value of the Services rendered by Professional prior to termination. (c) E
xcept as provided in this Agreement, in no event shall City be liable for costs incurred by or on behalf of Professional after the date of the notice of termination. (d) Not
withstanding this Section, this Agreement may be terminated by City for cause based on the loss or suspension of any licenses, permits or registrations required for the continued provision of the Services, or Professional’s malfeasance. Termination of the Agreement for cause as set forth in this Section shall relieve City from compensating Professional.

Sect
ion 21. Assurance of Performance. If, at any time, City believes Professional may not be adequately performing its obligations under this Agreement or may fail to complete the Services as required by this Agreement, City may submit a written request to Professional for written assurances of performance and a plan to correct observed deficiencies in Professional's performance. Failure to provide written assurances subsequent to such written request, constitutes grounds to declare a breach under this Agreement.

Sect
ion 22. Cancellation for Breach by Either Party. Should either Party fail to substantially perform its obligations in accordance with the provisions of this Agreement, the other Party shall thereupon have the right to cancel the Agreement by giving written notice and specifying the effective date of such cancellation. If City cancels this Agreement for breach and it is subsequently determined that Professional did not fail to substantially perform its obligations in accordance with this Agreement, then cancellation for breach by City shall be deemed, and treated, as termination for convenience.

Nei
ther Party waives the right to recover damages against the other for breach of this Agreement, including any amount necessary to compensate City for all detriment proximately caused by Professional's failure to perform its obligations hereunder or which in the ordinary

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

course of things would be likely to result therefrom. City reserves the right to offset such damages against any payments owed to Professional.

City s
hall not in any manner be liable for Professional's actual or projected lost profits had Professional completed the Services required by this Agreement.

Sect
ion 23. Dispute Resolution . In the event of any dispute between the Parties to this Agreement, the Parties agree to first negotiate in good faith toward a resolution with participation by representatives of each party holding sufficient authority to resolve the dispute. If such dispute cannot be resolved within fifteen (15) business days, the dispute shall be submitted to mediation as a condition precedent to initiating formal litigation.

Sect
ion 24. Insurance Coverage. During the Term, the Professional shall maintain in full force and effect policies of insurance set forth herein, which shall be placed with insurers with a current A M Best’s rating of no less than A VII and will provide City with written proof of said insurance.

Professional shall maintain coverage as follows:

24.1. General Liability . Professional shall carry general liability insurance in the amount of Two Million Dollars ($2,000,000.00) per occurrence for bodily injury, personal injury, and property damage. If commercial general liability insurance or another form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Proje ct or the general aggregate shall be Two Million Dollars ($2,000,000.00).

24.2. W
orkers’ Compensation Insurance and Employer's Liability . Professional shall carry workers’ compensation insurance as required by the State of California under the Labor Code. Professional shall also carry employer’s liability insurance in the amount of One Million Dollars ($1,000,000.00) per accident, with a One Million Dollar ($1,000,000.00) policy limit for bodily injury by disease, and a One Million Dollar ($1,000,000.00) limit for each employee’s bodily injury by disease.

24.3. E
rrors and Omissions Liability . Professional shall carry errors and omissions liability insurance in the amount of no less than Two Million Dollars ($2,000,000.00) per claim or greater if appropriate for the Professional's profession. Any deductibles or self -insured retentions must be declared to and approved by City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self -insured retentions with respect to the City , elected and appointed councils, commissions, directors, officers, employees, agents, and representatives (“City’s Agents”); or the Professional shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claims administration and defense expenses.

24.4. C
ommercial Automobile Liability . Professional shall carry commercial automobile liability insurance in the amount of One Million Dollars ($1,000,000) or greater per occurrence for owned, leased, hired, and borrowed automobiles.

24.5. Wai
ver of Subrogation . With the exception of e rrors and omissions liability insurance, Professional hereby agrees to waive subrogation which any insurer of Professional may

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

acquire from Professional by virtue of the payment of any loss. The commercial general liability policy and workers’ compensation policy shall be endorsed to contain a waiver of subrogation in favor of City for all work performed by Professional, its agents, employees, independent contractors, and subcontractors. Professional agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation.

Sect
ion 25. Additional Insurance Requirements. Within five (5) days of the commencement of the Term , Professional shall provide City with certificates of insurance for all of the policies required under this Agreement (“Certificates”), excluding the required workers’ compensation insurance. Such Certificates shall be kept current for the Term of the Agreement and Professional shall be responsible for providing updated copies and notifying City if a policy is cancelled, suspended, reduced, or voided. With the exception of the workers’ compensation and errors and omissions liability insurance, all of the insurance policies required in this Agreement shall:
(a) Provi
de that the policy will not be cancelled, allowed to expire, or materially reduced in coverage without at least thirty (30) days’ prior written notice to City of such cancellation, expiration, or reduction and each policy shall be endorsed to state such; (b) Name
City, and City’s Agents as additional insureds with respect to liability arising out of Services, work, or operations performed by or on behalf of Professional; (c) Cover
products and completed operations of Professional, premises owned, occupied, or used by the Professional, or automobiles owned, leased, or hired or borrowed by the Professional; contain no special limitations on the scope of protection afforded to City; (d) Be pr
imary with respect to any insurance or self -insurance programs covering City or City’s Agents and any insurance or self-insurance maintained by City or City’s Agents shall be in excess of Professional’s insurance and shall not contribute to it; (e) C
ontain standard separation of insured provisions; and
(f) Sta
te that any failure to comply with reporting or other provisions of the policy including breaches of warranties shall not affect the coverage provided to City.

Sect
ion 26. Indemnification by Professional . To the fullest extent permitted by law (including, without limitation, California Civil Code sections 2782 and 2782.8), Professional shall defend with legal counsel reasonably acceptable to City, indemnify and hold harmless the City and City’s Agents from and against any and all claims, loss, cost, damage, injury (including, without limitation, injury to or death of an employee of Professional or its subcontractors), expense and liability of every kind, nature and description that arise out of, pertain to or relate to acts or omissions of Professional, or any direct or indirect subcontractor, employee, contractor, representative or agent of Professional, or anyone that Professional controls (collectively “Liabilities”). Such obligations to defend, hold harmless and indemnify City and City’s Agents shall not apply to the extent that such Liabilities are caused in whole by the sole negligence, active negligence, or willful misconduct of City or City’s Agents, but shall apply to all other Liabilities.

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

With respect to third -party claims against the Professional, the Professional waives any and all rights of any type of express or implied indemnity against City and City’s Agents.

Sect
ion 27. Liability of City . Notwithstanding any other provision of this Agreement, in no event shall City be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect, or incidental damages, including, but not limited to, lost profits or revenue, arising out of or in connection with this Agreement or the Services performed in connection with this Agreement.

Sect
ion 28. Independent Contractor . At all times during the Term, Professional shall be deemed to be an independent contractor and shall be wholly responsible for the manner in which Professional performs the Services required under this Agreement. Professional shall be liable for its acts and omissions and those of its employees, contractors, subcontractors, representatives, volunteers, and its agents. Nothing contained herein shall be construed as creating an employment, agency, or partnership relationship between City and Professional. C ity shall have the right to control Professional only insofar as the result of Professional’s Services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Professional accomplishes Services rendered pursuant to this Agreement.

Sect
ion 29. Professional Not Agent . Except as City may specify in writing, Professional shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Professional shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Sect
ion 30. Payment of Taxes and Other Expenses . Payment of any taxes, including California sales and use taxes, levied upon this Agreement, the transaction, or the Services or goods delivered pursuant hereto, shall be the obligation of Professional.

Sect
ion 31. Notices. Any notice or communication required hereunder between City and Professional must be in writing, and may be given either personally, by registered or certified mail (return receipt requested), or by Federal Express, UPS or other similar couriers providing overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the Party to whom it is addressed. Notices given by registered or certified mail shall be deemed to have been given and received on the first to occur of (a) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, (b) on the date delivered as shown on a receipt issued by the courier, or (c) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the Uni ted States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered as shown on a receipt issued by the courier. Any Party hereto may at any time, by giving ten (10) days written notice to the other Party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the Parties at the addresses in this paragraph set forth below:

If to
City: City of Ceres

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

Attn : City Manager
2220 Magnolia Street
Ceres, California 95307
Wi
th courtesy copies to: White Brenner LLP
Attn: Nubia I. Goldstein
1608 T Street
Sacramento, CA 95811
If to
Professional: Jay’s Tires
Attn: Cody Williams
2940 Geer Road
Turlock, CA 95382
Sect
ion 32. General Provisions.

A. Mod
ification. No alteration, modification , or termination of this Agreement shall be valid unless made in writing and executed by all Parties.

B. Waive
r. No covenant, term, or condition or the breach thereof shall be deemed waived, except by written consent of the Party against whom the waiver is claimed, and any waiver of the breach of any covenant, term, or condition shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant, term, or condition.

C. Assi
gnment. No Party shall assign, transfer , or otherwise dispose of this Agreement in whole or in part to any individual, firm, or corporation without the prior writ ten consent of the other P arty. Subject to the forgoing provisions, this Agreement shall be binding upon, and inure to the benefit of, the respective successors and assigns of the Parties.

D. Gove
rning Law. This Agreement shall be governed by and construed in accordance with the laws of the state of California.

E. Ve
nue. Venue for all legal proceedings shall be in the Superior Court of California for the County of Stanislaus.

F. Co
unterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which shall be deemed a single agreement.

G. Severability. If this Agreement in its entirety is determined by a court to be invalid or unenforceable, this Agreement shall automatically terminate as of the date of final entry of judgment. If any provision of this Agreement shall be determined by a court to be invalid and unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, which becomes effective after the execution of this Agreement by any Party, the remai ning provisions shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement.

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

H. Audi t. City shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify Professional’s charges to City under this Agreement.

I. En
tire Agreement . This Agreement sets forth the entire understanding between the Parties as to the subject matter of this A greement and merges all prior discussions, negotiations, proposal letters or other promises, whether oral or in writing.

J. Su
persedes Prior Agreement. It is the intention of the Parties hereto that this Agreement shall supersede any prior agreements, discussions, commitments, or representations, whether written, electronic or oral, between the Parties with respect to the subject matter of this Agreement.

K. He
adings Not Controlling. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.

L. Su
ccessors and Assigns . All representations, covenants, and warranties specifically set forth in this Agreement, by or on behalf of, or for the benefit of, any or all of the Parties hereto, shall be binding upon and inure to the benefit of such Party, its successors and assigns.

M. In
terpretation. As used herein, any gender includes each other gender, the singular includes the plural and vice versa.

N. Man
datory and Permissive. “Shall” and “will” and “agrees” are mandatory. “May” and “can” are permissive.

O. At
torney’s Fees and Costs . If any action at law or in equity, including action for declaratory relief, is brought to enforce or interpret provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorney's fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled.

P. Ti
me is of the Essence. Time is of the essence in this Agreement for each covenant and term of a condition herein.

Q. Au
thority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states or firms and that all former requirements necessary or required by the state or federal law in order to enter into the Agreement have been fully complied with. Further, by entering into this Agreement, neither Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

R. Dr afting and Ambiguities. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel, and based upon the advice of that counsel, freely entered into this Agreement. Each Party has participated fully in the review and revision of this Agreement. Any rule of construction that ambiguities are to be resolved against the drafting party does not apply in interpreting this Agreement.
[Si
gnatures on Following Page]

ATTACHMENT B
ITEM 7
IN WITNESS IilHEREOF, the Parties have executed this Agreement as of the last day and dxe below written.

CITY:

CITY OF CERES, a Califomia municipal
corporation
By
Douglas D. Dunford. City Manager
Dale
Approved as to Form:

Nubia I. Goldstein, City Attomey
PROFESSIONAL:

Jay
r/tso, /
fornia corporation
,/,t /2, 2{"Date

PROFESSIONAL SERVICES AGREEMENT
City of Cer€s ond Jay's TiEs
Psge r5 of lE

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

EXHIBIT A
Services
SCOPE OF WORK – LAW ENFORCEMENT VEHICLE UPFITTING

1. Project Intake & Planning
• Vehicle inspection upon receipt (condition, mileage, baseline electrical checks). • Review of agency specifications, equipment lists, wiring diagrams, and operational requirements.
• Develop an upfitting plan including equipment layout, wiring route, power load calculations, and safety considerations.
• Coordination with fleet managers and command staff regarding special requirements.

2. REMOV AL & PREPARATION
• Removal of OEM interior panels, seats, trim, headliners, and consoles as needed. • Preparation of mounting surfaces for equipment.
• Installation or modification of partitions, cargo storage systems, or K-9 transport units.

3. ELECTRICAL SYSTEM INTEGRATION
• Installation of primary and secondary power distribution systems. • Use of agency-approved wiring standards (proper gauge, color coding, fusing, circuit protection). • Battery management systems, idle reduction tech, and load-shedding systems. • Grounding, bonding, and surge protection.

ATTACHMENT B
ITEM 7

PRO FESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

4. EMERGENCY LIGHTING & WARNING EQUIPMENT
• Lightbar installation (roof, interior, low-profile as specified). • Front/rear/interior lights, grille lights, corner strobes, and integration of siren amplifiers. • Proper synchronization of flash patterns; compliance with state regulations. • Testing for line-of-sight visibility and electrical reliability.

5. COMMUNICATION & TECHNOLOGY SYSTEMS
• Radios (VHF/UHF/700-800 MHz), mobile data terminals (MDTs), docking stations. • GPS, AVL systems, LoJack, broadband modems, routers, Wi-Fi. • In-car video systems (front, rear, bodycam integration). • External antenna installation with correct grounding and roof reinforcement.

6. CONSOLES & INTERIOR EQUIPMENT
• Installation of center consoles, equipment racks, armrests, and organizer systems. • Switch panels, control heads, cup holders, and cable management. • Gun racks (vertical, horizontal, trunk-mounted) with secure wiring for locks.

7. VEHICLE PROTECTION SYSTEMS
• Push bumpers, prisoner partitions, rear seat conversions, window barriers. • K-9 units: temperature sensors, fans, alarms, dog compartments, door pop systems. • Skid plates, brush guards, protective housings for sensitive electronics.

8. EXTERNAL EQUIPMENT INSTALLATION
• Spotlights, ALPR systems, radar units.
• License plate brackets, stealth lighting, rear deck lighting.

ATTACHMENT B
ITEM 7

PROFESSIONAL SERVICES AGREEMENT
City of Ceres and Jay’s Tires

• Speaker and siren installation (grille or external mount).

9. SOFTWARE & SYSTEM PROGRAMMING
• Programming and configuration of lighting controllers (e.g., Whelen, Code 3, Federal). • Radio programming (if permitted by agency).
• Integration of MDT software, cameras, GPS, ALPR, and vehicle gateways. • Troubleshooting network connectivity and device interoperability.

10. QUALITY CONTROL & TESTING
• Full system power-on diagnostics.
• Load tests, voltage drop tests, and alternator capacity verification. • Operational tests for lights, sirens, cameras, radios, MDT, sensors, and K-9 systems. • Road test (if authorized).

11. DOCUMENTATION & DELIVERY
• As-built wiring diagrams, equipment locations, fuse charts, serial numbers. • Warranty documentation and user instructions.
• Vehicle hand-over inspection with agency personnel.
• Post-delivery support and maintenance plans.

12. OPTIONAL ONGOING SUPPORT
• Preventive maintenance checks.
• Warranty service and repair.
• Upgrades, add-ons, or reconfiguration for new missions or technology.

ATTACHMENT B
ITEM 7

COUNCIL AGENDA REPORT

CITY COUNCIL

Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: March 23, 2026
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT:

Trenton Johnson, Police Chief
[email protected], (209) 538-5725

Travis Hudson, Lieutenant
[email protected], (209) 538-5607
SUBJECT:

Resolution No. 2026 -XXX, Approving a Budget Amendment in the Amount of $45,427.88 for Fiscal Year 2025-26 to Appropriate COPS (SLESF) Funds to Add Command Boxes and Upgraded Police Radios to the Two Police Watch Commander Vehicles
RECOMMENDED COUNCIL ACTION:

Staff recommends that the City Council approve a Budget Amendment in the amount of $45,427.88 for Fiscal Year 2025-26 to appropriate COPS (SLESF) funds to add command boxes and upgrade police radios to the two police Watch Commander Vehicles.

I. BACKGROUND:

The City of Ceres Police Department currently utilizes two Chevrolet Tahoe vehicles as Patrol Watch Commander units. Both vehicles are equipped with radio systems that have reached end-of-life and are no longer serviceable. Additionally, neither vehicle has the capability to operate the radio from the rear compartment.

At present, these vehicles lack mobile command functionality. There are no command boxes installed in the rear workspace, no integrated screens to display UAV feeds, which are now frequently utilized, and no systems that allow Watch Commanders to effectively track incidents or personnel during critical incidents. There is no power to run other needed devices or chargers.

II. REASONS FOR RECOMMENDATION:

Police Watch Commanders (Sergeants) serve as first -line supervisors and must assume immediate command of any critical incident occurring within the City of Ceres. In addition, ITEM 8
they are frequently called upon to respond throughout the county to assist partner public safety agencies with incidents ranging from major law enforcement operations and structure fires to natural disasters such as flooding and large vegetation fires in neighboring jurisdictions.

Our current Watch Commander vehicles are equipped with radio systems that have been recycled from other vehicles. These radios are now at end -of-life, no longer supported by the manufacturer, and lack the capability to operate from the rear compartment. The proposed replacement radios incorporate updated technology, including encryption capability when required, and dual control heads that will be mounted in both the front and rear of the vehicle to allow operational use from either position.

At present, the rear compartment of each Watch Commander vehicle contains only a lock box and lacks the equipment necessary to effectively manage critical incidents. The requested mobile command center retrofit will include an integrated command box equipped with a screen capable of displaying live UAV feeds, allowing the Watch Commander to obtain real -time situational awareness. The unit will also include a power inverter to support laptops, cellular phones, and other mission -critical devices. Additional features include secured storage for a drone and a secondary lock box for controlled equipment.

This retrofit will provide Watch Commanders with the necessary tools to effectively manage critical incidents and maintain reliable communication. The mobile command units are modular and can be removed and reinstalled in future Watch Commander vehicles, ensuring long-term usability and cost efficiency.

The vehicles to be retrofitted are Vehicle 203 and Vehicle 228. The retrofitting will be completed by BWE 209 / Jay’s Tires.

III. FISCAL IMPACTS:

Funding for the retrofitting of the two Watch Commander vehicles with mobile command centers and upgraded radio systems will be provided through the COPS (SLESF) Fund .

Approval of this item will require a budget amendment to appropriate $45,427.8 8 to account 29610.051100. Sufficient fund balance is available in the COPS (SLESF) Fund to support this amendment. No General Fund monies will be required.

The total requested amount for this project is $45,427.88 and is broken down as follows:
• $25,837.93 – Retrofitting of two Watch Commander vehicles with mobile command center units, including integrated UAV display screens (see Attachment C). • $19,589.95 – Police radio systems for two Watch Commander vehicles (see Attachment D).

ITEM 8
IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

Approval of these retrofits to the Watch Commander vehicles fulfills the strategic plan for Government Operations: “Provide quality services to meet community needs, assuring that the City has…properly equipped…staff.”
V. POLICY ALTERNATIVES:

Council could choose not to approve these vehicle retrofits. The Sergeants will continue to use existing vehicles as they are.

VI. INTERDEPARTMENTAL COORDINATION:

These retrofits will be coordinated between the Fleet Services Department, Finance Department, IT Department, and the Police Department.

VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

Following Council approval, the Motorola Radio Quote will be routed through the City Clerk’s office for the appropriate signatures , and the Finance Director will implement the Budget Amendment.

Approved by: ____________________
Douglas D. Dunford,
City Manager
Attachments:

1. Attachment A – Resolution

2. Attachment B – Budget Amendment

3. Attachment C – Upfitting Quote

4. Attachment D – Radio Quote
ITEM 8
ITEM 8

ATTACHMENT A
RESOLUTION NO. 2026-XXX

APPROVING A BUDGET AMENDMENT IN THE AMOUNT OF $45,427.88 FOR FISCAL YEAR 2025-26 TO APPROPRIATE COPS (SLESF) FUNDSTO ADD

COMMAND BOXES AND UPGRADED POLICE RADIOS TO THE TWO WATCH

COMMANDER POLICE VEHICLES

THE CITY COUNCIL
City of Ceres

WHEREAS, the Police Department has two Chevrolet Tahoe vehicles that are assigned as Patrol Watch Commander units; and

WHEREAS, both of these vehicles are equipped with radio systems that have reached end-of-life, are no longer serviceable and do not have the capacity to operate from the rear compartment; and

WHEREAS, both of these vehicles also lack mobile command functionality, including no command boxes in the rear workspace, no integrated screens to display UAV feeds, no power to run needed devices and chargers, and no systems that allow Watch Commanders to effectively track incidents or personnel during critical incidents; and

WHEREAS, the retrofit of these vehicles will include units that are modular and can be removed and installed in future Watch Commander vehicles, ensuring long-term usability and cost efficiency; and

WHEREAS, approval of this project requires a budget amendment to appropriate $45,427.88 to account 29 610.051100, and sufficient fund balance is available to support this amendment.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ceres hereby approves a budget amendment in the amount of $45,427.88 for Fiscal Year 2025-26 to appropriate COPS (SLESF) funds to add command boxes and upgraded police radios to the two Watch Commander police vehicles.

BE IT FURTHER RESOLVED that the City of Ceres Finance Director is hereby authorized and directed to record the appropriate accounting entries.

PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on 23rd day of March 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

______________________________
Javier Lopez, Mayor
ATTEST:

_____________________________
Fallon Martin, City Clerk
ITEM 8
ITEM 8
Budget Amendment No.

Fiscal Year
Reference Resolution No . , dated authorizing appropriations for as follows:

Appropriations:

Fund Name Org. Object Project
(if appl.)
Appropriation
Amount
Requested Appropriation
Current Appropriation
Total Appropriation
Estimated Revenues:

Fund Name Org. Object Project
(if appl.)
Appropriation
Amount
Estimated Revenue
Current Estimated Revenue
Total Estimated Revenue
Fiscal Impact:

ITEM 8
ITEM 8

ATTACHMENT C
ITEM 8
ITEM 8
QUOTE-3474567

CERES, CITY OF
Sgt. Vehicle
APX8500 DH (2) Vehicular Chargers (2)
01/26/2026
The design, technical, pricing, and other information (“Information”) furnished with this submission is confidential proprietary information of Motorola Solutions, Inc. or the Motorola Solutions entity providing this quote (“Motorola”) and is submitted with the restriction that it is to be used for evaluation purposes only. To the fullest extent allowed by applicable law, the Information is not to be disclosed publicly or in any manner to anyone other than those required to evaluate the Information without the express written permission of Motorola.

MOTOROLA, MOTO, MOTOROLA SOLUTIONS, and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. © 2020 Motorola Solutions, Inc. All rights reserved.

ATTACHMENT D
ITEM 8
01/26/2026

CERES, CITY OF
2727 THIRD ST., POLICE DEPARTMENT
CERES, CA 95307

RE: Motorola Quote for Sgt. Vehicle APX8500 DH (2) Vehicular Chargers (2) Dear Dave McCann,
Motorola Solutions is pleased to present CERES, CITY OF with this quote for quality communications equipment and services.  The development of this quote provided us the opportunity to evaluate your requirements and propose a solution to best fulfill your communications needs.

This information is provided to assist you in your evaluation process. Our goal is to provide CERES, CITY OF with the best products and services available in the communications industry. Please direct any questions to Nathan Tran at [email protected].

We thank you for the opportunity to provide you with premier communications and look forward to your review and feedback regarding this quote.

Sincerely,
Nathan Tran
Motorola Solutions Manufacturer's Representative
QUOTE-3474567

ATTACHMENT D
ITEM 8
Billing Address:

CERES, CITY OF
2727 THIRD ST., POLICE

DEPARTMENT
CERES, CA 95307
US
Quote Date:01/26/2026
Expiration Date:03/27/2026
Quote Created By:

Nathan Tran
[email protected]
End Customer:

CERES, CITY OF
Dave McCann
[email protected]
209-
595-6068

Summary:

Any sales transaction resulting from Motorola's quote is based on and subject to the applicable Motorola Standard Terms and Conditions, notwithstanding terms and conditions on purchase orders or other Customer ordering documents.

Motorola Standard T
erms and Conditions are found at www.motorolasolutions.com/product-terms.

Line # Item Number

Description Qty List Price Sale Price Ext. Sale Price
APX™ 8500

1 M37TSS9PW1CN

APX8500 ALL BAND MP
MOBILE

2 $6,558.00 $4,787.34 $9,574.68
1a GA00250AA

ADD: GNSS/BT-WIFI THRU
MNT ANT, 17FT LOW LOSS
PFP-100A/240, QMA

2 $118.00 $86.14 $172.28
1b HA00694AA

ADD: 7Y ESSENTIAL SERVICE
HTM

2 $604.80 $604.80 $1,209.60
1c GA01513AB

ADD: ALL BAND MOBILE
ANTENNA (7/8/V/U)

2 $112.00 $81.76 $163.52
1d G51AT

SOFTWARE LICENSE
ENH:SMARTZONE

2 $1,766.00 $1,289.18 $2,578.36
1e GA05508AA

DEL: DELETE VHF BAND

2 -$800.00 -$584.00 -$1,168.00
1f GA05509AA

DEL: DELETE UHF BAND

2 -$800.00 -$584.00 -$1,168.00
1g B18CR

ADD: AUXILIARY SPKR 7.5

WATT APX

4 $71.00 $51.83 $207.32
1h G843AH

ADD: AES ENCRYPTION AND
ADP

2 $560.00 $408.80 $817.60
1i G444AH

ADD: APX CONTROL HEAD

SOFTWARE

2 $0.00 $0.00 $0.00
1j G67EH

ADD: REMOTE MOUNT E5 MP

2 $350.00 $255.50 $511.00
QUOTE-3474567
Sgt. Vehicle APX8500 DH (2)
Vehicular Chargers (2)
Any sales transaction following Motorola's quote is based on and subject to the terms and conditions of the valid and executed written contract between Customer and Motorola (the ""Underlying Agreement"") that authorizes Customer to purchase equipment and/or services or license software (collectively ""Products""). If no Underlying Agreement exists between Motorola and Customer, then Motorola's Standard Terms of Use and Motorola's Standard Terms and Conditions of Sales and Supply shall govern the purchase of the Products.

Motorola Solutions, Inc.: 500 West Monroe, United States - 60661 ~ #: 36-1115800Page 3

ATTACHMENT D
ITEM 8
Line # Item Number

Description

Qty List Price Sale Price Ext. Sale Price
1k GA01517AA

DEL: NO J600 ADAPTER CABLE
NEEDED

2 $0.00 $0.00 $0.00
1l G806BL

SOFTWARE LICENSE ENH:

ASTRO DIGITAL CAI OP APX

2 $607.00 $443.11 $886.22
1m GA01670AA

ADD: APX E5 CONTROL HEAD

2 $767.00 $559.91 $1,119.82
1n W22BA

ADD: STD PALM

MICROPHONE APX

4 $85.00 $62.05 $248.20
1o QA09113AB

ADD: BASELINE RELEASE SW

2 $0.00 $0.00 $0.00
1p W969BG

SOFTWARE LICENSE ENH:

MULTIKEY OPERATION

2 $388.00 $283.24 $566.48
1q G361AH

SOFTWARE LICENSE ENH: P25

TRUNKING SOFTWARE APX

2 $353.00 $257.69 $515.38
1r G628AC

ADD: REMOTE MOUNT CABLE
17 FT APX

2 $18.00 $13.14 $26.28
1s GA00092AU

ADD: APXM DUAL E5 CH

2 $671.00 $489.83 $979.66
1t G618AC

ADD: REMOTE MOUNT CABLE
10 FT APX

2 $12.00 $8.76 $17.52
2 NNTN7624C

CHARGER, VEHICULAR
IMPRES 12VDC HARDWIRE

2 $545.44 $409.08 $818.16
Subtotal

$18,076.08
Estimated Tax

$1,513.87
Grand Total
$19,589.95(USD)
Notes:

QUOTE-3474567
Sgt. Vehicle APX8500 DH (2)
Vehicular Chargers (2)
Any sales transaction following Motorola's quote is based on and subject to the terms and conditions of the valid and executed written contract between Customer and Motorola (the ""Underlying Agreement"") that authorizes Customer to purchase equipment and/or services or license software (collectively ""Products""). If no Underlying Agreement exists between Motorola and Customer, then Motorola's Standard Terms of Use and Motorola's Standard Terms and Conditions of Sales and Supply shall govern the purchase of the Products.

Motorola Solutions, Inc.: 500 West Monroe, United States - 60661 ~ #: 36-1115800Page 4

ATTACHMENT D
ITEM 8
Purchase Order Checklist NA OM
Markedas PO/ Contract/ Notice toProceedonCompany Letterhead (POwill not be processedwithout this)
PONumber/ Contract Number
PODate
Vendor = Motorola Solutions, Inc.

Payment (Billing) Terms/ State Contract Number
Bill-ToName onPOmust be equal totheLegalBill-ToName
Bill-ToAddress
Ship-ToAddress (If we are shippingtoa MR location, it must be documentedonPO) Ultimate Address (If the Ship-Toaddress is the MR locationthenthe Ultimate Destination address must be documentedonPO)
POAmount must be equal toor greater thanOrder Total
Non-Editable Format (Word/ Excel templates cannot be accepted) Tax ExemptionStatus
Signatures (As required)
NOTE: When an email order is submitted a confirmation is sent from Motorola AutoNotify referencing a case number.

Once checklist is complete, order still must go through Order Validation/Credit Approval

ATTACHMENT D
ITEM 8
ITEM 8

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: March 23, 2026
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT:

Trenton Johnson, Chief of Police
[email protected], (209) 538-5726
David McCann, Community Service Officer
[email protected], (209) 538-5700, ext. 1010
SUBJECT: Ordinance 2026-XXX, An Ordinance of the City Council of the City of Ceres Amending Title 5, Business Licenses and Regulation, Chapter 20, Fireworks Sales of the Ceres Municipal Code RECOMMENDED COUNCIL ACTION:

Staff recommends the City Council approve the first reading and introduction of Ordinance No. 2026-XXX, reading by title only, waiving further reading, an Ordinance of the City Council of the City of Ceres amending Title 5, Business Licenses and Regulation, Chapter 20, Fireworks Sales of the Ceres Municipal Code.

I. BACKGROUND:

The City of Ceres currently permits the seasonal sale of State Fire Marshal -approved “safe and sane” fireworks pursuant to Title 5, Chapter 20 of the Ceres Municipal Code.

Over recent years, staff have identified recurring issues during the fireworks sales period, including:
• Increased illegal fireworks activity
• Fire hazards and property damage
• Enforcement challenges
• Neighborhood complaints related to noise, debris and safety In response, staff reviewed the existing ordinance to develop recommended revisions.

II. REASONS FOR RECOMMENDATION:

Staff is recommending these revisions to the existing ordinance to accomplish the following:

ITEM 10
• Broaden the definition of dangerous fireworks
• Address Point of Sale safety requirements
• Strengthen the requirements for the storage of fireworks • Provide updated standards for Safety Training
• Augment the fines imposed for violations
III. FISCAL IMPACTS:

Depending on the fines issued during the fireworks season, these revisions could result in improved cost recovery to the city.

IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

N/A
V. POLICY ALTERNATIVES:

Should Council decide not to approve the revisions to the ordinance, the Police Department will continue to attempt to regulate fireworks sales u sing the existing municipal code.

VI. INTERDEPARTMENTAL COORDINATION:

N/A
VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

The City Council will consider a second reading and adoption of the Ordinance at a later meeting of the City Council.

Approved by: ____________________
Douglas D. Dunford,
City Manager
Attachments:

1. Attachment A – Ordinance

2. Attachment B – Redline Changes

3. Attachment C – Public Hearing Notice
ITEM 10

ATTACHMENT A

ORDINANCE NO. 2026-XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CERES AMENDING TITLE 5, BUSINESS LICENSES AND REGULATION, CHAPTER 20, FIREWORKS

SALES OF THE CERES MUNICIPAL CODE

WHEREAS, the City of Ceres currently permits the seasonal sale of State Fire Marshal-approved “safe and sane” fireworks; and

WHEREAS, staff has identified recurring issues during the fireworks sales period to include increased illegal fireworks activity, fire hazards and property damage, enforcement challenges and neighborhood complaints; and

WHEREAS, staff is recommending revisions to address dangerous fireworks, Point of Sale safety requirements, the storage of fireworks, Safety Training, and fines imposed for violations.

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

SECTION 1. Section 5.20.010, Definitions, of Chapter 20, Fireworks Sales, of Title 5, Business Licenses and Regulations, shall be amended to read as follows:

5.20.010 Definitions.

For the purpose of this chapter, and except where otherwise expressly defined in another section of this chapter, the following words and phrases shall have the meanings provided in this section. Where words and phrases are not expressly defined under this chapter, they shall be construed as their ordinary meaning within the context which they are used:

“Applicant” means the person that files an application for a permit.

“Dangerous fireworks” has the same meaning as that term is defined by Health and Safety Code section 12505. Dangerous fireworks may also be defined as illegal fireworks, those fireworks not having the California State Fire Marshal seal for safe and sane fireworks.

“Fire Chief” means the Fire Chief or designated representative.

“Fireworks sales booth” means the booth, stand, or other approved temporary structure used for the purpose of selling safe and sane fireworks.

“Local nonprofit organization” means a nonprofit organization that:

1. Has a primary meeting place within the official sphere of influence of the City of Ceres, as approved by the Local Agency Formation Commission;

2. Has been organized and established within the City of Ceres' sphere of influence for a minimum of one continuous year preceding the filing of the application for a permit; and
ITEM 10

ATTACHMENT A

3. Has a bona fide membership of at least ten members who reside in the City of Ceres.

“Nonprofit organization ” means any nonprofit association or corporation organized primarily for veteran, patriotic, welfare, religious, civic betterment or charitable purposes that has been approved by the Internal Revenue Service as a tax -exempt organization under Section 501(c)(3) of the Internal Revenue Code. Groups that are integral part of a recognized national organization must also operate under the organization’s IRS - recognized 501(c)(3) tax-exempt status.

“Owner-occupant” means the record owner of real property as listed in the most current equalized assessment roll as maintained by the Stanislaus County Assessor.

“Permit” means a permit for the sale of safe and sane fireworks issued pursuant to section

5.20.030.

“Permittee” means a local nonprofit organization that has received a permit for the sale of safe and sane fireworks.

“Responsible party” means any person with an ownership interest or right of possession of the real property where unpermitted fireworks are possessed, sold, used, manufactured or discharged, including, but not limited to:

1. Any owner-occupant.

2. Any lessee, subtenant, licensee, or other person having possessory control over a property, structure, or parcel of land.

3. Any person that organizes, supervises, officiates, conducts, or controls the gathering or any other person accepting responsibility for such a gathering.

“Safe and sane fireworks ” has the same meaning as that term is defined by California Health and Safety Code section 12529. All safe and sane fireworks shall be approved by the California Fire Marshal and labeled as safe and sane.

SECTION 2. Section 5.20.0 30, Permit applications, of Chapter 20, Fireworks Sales, of Title 5, Business Licenses and Regulations, shall be amended to read as follows:

5.20.030 Permit applications.

A. The Fire Chief shall cause a standard application to be prepared for a permit. In addition to the requirements of section 5.02.010 the permit application shall include all of the following:

1. Proper identification and signature of the applicant.

2. A proposed location of the fireworks sales booth that includes the nine digit accessor's parcel number of the Stanislaus County Assessor.

3. Proof of safety training.

4. A site plan for the fireworks sales booth.

5. The written consent of the owner of the property upon which the proposed fireworks sales booth will be located.

ITEM 10

ATTACHMENT A

6. A nonrefundable applicable fee as established by resolution of the City Council pursuant to Section 9.30.120.

7. Any other reasonable information that the Fire Chief may deem necessary to properly implement and administer the provisions of this chapter.

B. Applications shall be submitted during normal business hours from April 15 through June 15 of the same year.

C. All applications shall be submitted to the Fire Chief on or before June 15 of each year. Each application must be complete and contain all required information. Any application that is not properly completed and submitted to the office of the Fire Chief by 5:00 p.m. on June 15 will not be considered.

D. The Fire Chief or his or her designee shall review all submitted applications, and may consult with the Departments of Public Works, Engineering Services, and Community Development to ensure that the proposed location meets existing zoning regulations and does not create pedestrian or vehicular traffic hazards.

SECTION 3. Section 5.20.060, Firework sales, of Chapter 20, Fireworks Sales, of Title 5, Business Licenses and Regulations, shall be amended to read as follows:

5.20.060 Fireworks sales.

A. Safe and sane fireworks may only be sold or offered for sale from 12:00 noon to 10:00 p.m. on June 28 and from 9:00 a.m. to 10:00 p.m. from June 29 through July

6. B. Each of the following are mandatory point-of-sale safety requirements:

1. No person under the age of 18 shall sell, or handle for sale, any fireworks.

2. No person under the age of 18 shall purchase or be allowed to purchase any fireworks.

3. Smoking, open flame, or spark -producing equipment shall be prohibited for a distance of 100 feet in all directions of a fireworks sale booth.

4. Dry grass, weeds, trash, and all other combustible material shall be removed for a distance of 20 feet if the booth is on concrete or asphalt or 100 feet when on an open, unimproved lot in all directions of a fireworks sale booth.

5. Fireworks shall not be discharged within 150 feet in all directions of a fireworks sale booth.

C. Merchandise may be displayed in an approved glass-enclosed counter or showcase, or displayed in fireworks sale booths constructed in the following manner:

1. Walls and roof shall be of plywood at least one -third-inch thickness or of an approved noncombustible material.

2. The fireworks sale booth shall have a roof.

3. Notwithstanding an exit door, walls shall extend to a minimum height of six feet, eight inches on at least three sides. These three sides shall not have any openings.

ITEM 10

ATTACHMENT A

4. Two exit doors shall be provided in each fireworks sale booth, with a minimum size of 24 inches in width and six feet in height. Exits shall be maintained clear and unobstructed at all times while open to the public.

5. The front wall of the fireworks sale booth shall provide a physical barrier not less than 18 inches in height between the public and the merchandise on display.

6. Approved "NO SMOKING" signs shall be securely fastened to the fireworks sale booth and prominently displayed in and on the exterior of the stand.

7. Approved "NO SALES TO PERSONS UNDER THE AGE OF 18" signs shall be securely fastened to the fireworks sale booth and prominently displayed in and on the exterior of the booth.

8. An approved fire extinguisher having a minimum U.L. classification of 2A shall be located in the fireworks sale booth near the exit and be readily accessible.

SECTION 4. Section 5.20.070, Storage of fireworks, of Chapter 20, Fireworks Sales, of Title 5, Business Licenses and Regulations, shall be amended to read as follows:

5.20.070 Storage of fireworks.

A. Permittees may only store safe and sane fireworks within the City solely during the period of June 22 through July 15 of each year.

B. Safe and sane fireworks that are not being sold or displayed with the intent to sell shall be stored in the following manners:

1. Within the permitted fireworks sale booth with a responsible adult on the premises at all times.

2. In a completely enclosed and locked utility type trailer constructed of one - quarter-inch plywood or other approved noncombustible material.

3. In a completely detached garage on residential property with a minimum of ten- foot clearance to other structures or property lines and 100 feet from any place of habitation. There shall be no open flame or spark producing equipment, or class 1 flammable liquids stored or used within the garage.

4. Fireworks shall not be stored within 100 feet of any building classified or used as a public or private school, day care facility, residential care facility, hospital, place of detention, public oil/gas station, or public garage, or any place of public assembly that can accommodate 50 or more persons.

5. The following information shall be submitted to and approved by the Fire Chief:
a. Storage location.
b. Description of storage facility.

SECTION 5. Section 5.20.080, Permittee safety training, of Chapter 20, Fireworks Sales, of Title 5, Business Licenses and Regulations, shall be amended to read as follows:

5.20.080 Permittee safety training.

Each calendar year one or more representatives from each permittee shall attend a fireworks sales booth safety seminar conducted by the Fire Department. Failure to attend the seminar shall result in the revocation of the permittee's permit for that calendar year.

ITEM 10

ATTACHMENT A

SECTION 6. Section 5.20.100, Dangerous fireworks prohibited, of Chapter 20, Fireworks Sales, of Title 5, Business Licenses and Regulations, shall be amended to read as follows:

5.20.100 Dangerous fireworks prohibited.

A person shall not sell, use, possess, manufacture, or discharge dangerous fireworks within the City as defined by section 5.20.010.

SECTION 7. Section 5.20. 110, Penalties, of Chapter 20, Fireworks Sales , of Title 5, Business Licenses and Regulations, shall be amended to read as follows:

5.20.110 Penalties.

A. In addition to any other remedies set forth in this title, administrative penalties may be imposed against any responsible party for violations of this chapter. The administrative penalty for violations of this chapter shall be as follows within a 36 - month period:

1. First violation: $2,500.00 fine.

2. Second violation: $3,500.00 fine.

3. Third violation and any thereafter: $4,500.00 fine.

Any violation of this section shall constitute a misdemeanor , which may result in imprisonment for a period not exceeding six (6) months. Any person who possesses less than 25 pounds of dangerous fireworks is also in violation of 12700 of the California Health and Safety Code and the City may refer the violation to the District Attorney’s Office for criminal prosecution.

B. Any person who engages in the sales, manufacture, or distribution of dangerous fireworks shall be guilty of a misdemeanor and may be subject to an administrative penalty of $10,000.00 per occurrence or imprisonment for a period not exceeding six (6) months. Any person who sales, manufactures, or transports dangerous fireworks is also in violation of 12676 of the California Health and Safety Code and can have the violation referred to the District Attorney’s Office for criminal prosecution.

C. Every owner, occupant, lessee, tenant, or holder of any possessory interest of a residence or other private property within the City is required to maintain, manage and supervise property and all persons thereon in a manner so as not to violate the provisions of this chapter. A responsible party need not be present at the time dangerous fireworks are possessed, manufactured, sold, used, or discharged in order for the City to issue an administrative citation under this section.

D. For the purposes of this section, the term “responsible party” means any person with an ownership interest or right of possession of the real property where unpermitted fireworks are possessed, sold, used, manufactured or discharged, including but not limited to:

ITEM 10

ATTACHMENT A

1. Any owner-occupant

2. Any lessee, subtenant, licensee, or other person having possessory control over a property, structure or parcel of land.

3. Any person that organizes, supervises, officiates, conducts or controls the gathering or any other person accepting responsibility for such a gathering.

4. Every parent, guardian or other person, having the legal care, custody or control of any person under the age of eighteen (18) years old may be issued a citation in accordance with the provisions of this article, in addition to any citation that may be issued to the offending minor.

E. Nothing in this section shall be intended to limit any of the penalties provided for under the Health and Safety Code or Penal Code.

SECTION 2. SEVERABILITY. If any section, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, a nd such holding shall not affect the validity of the remaining portions thereof.

SECTION 3. PUBLICATION AND EFFECTIVE DATE. This ordinance shall become effective thirty (30) days from and after its final passage and adoption, provided it is published in a newspaper of a general circulation at least within fifteen (15) days after its passage or a summary of the Ordinance is published in a newspaper of general circulation at least five (5) days prior to adoption and again at least fifteen (15) days after its passage.

SECTION 4. CERTIFICATION OF COUNCIL ADOPTION AND APPROVAL . This Ordinance was introduced at a regular meeting of the City Council held on the 23rd day of March 2026, and passed and adopted as Ordinance No. 202 6-XXXX at a regular meeting of the City Council held on the 13th day of April 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

APPROVED:

___________________________________
Javier Lopez, Mayor
ATTEST:

________________________________
Fallon Martin, City Clerk

APPROVED AS TO FORM:

________________________________
Nubia I. Goldstein, City Attorney
ITEM 10

ATTACHMENT B

Title 5 – Business Licenses and Regulations
Chapter 20 - Fireworks Sales Amended

5.20.010 Definitions.

For the purpose of this chapter, and except where otherwise expressly defined in another section of this chapter, the following words and phrases shall have the meanings provided in this section. Where words and phrases are not expressly defined under this chapter, they shall be construed as their ordinary meaning within the context which they are used:
“Applicant” means the person that files an application for a permit. “Dangerous fireworks” has the same meaning as that term is defined by Health and Safety Code section 12505. Dangerous fireworks may also be defined as illegal fireworks, those fireworks not having the California State Fire Marshal seal for safe and sane fireworks. “Fire Chief” means the Fire Chief or designated representative. “Fireworks sales booth” means the booth, stand, or other approved temporary structure used for the purpose of selling safe and sane fireworks. “Local nonprofit organization” means a nonprofit organization that:

1. Has a primary meeting place within the official sphere of influence of the City of Ceres, as approved by the Local Agency Formation Commission;

2. Has been organized and established within the City of Ceres' sphere of influence for a minimum of one continuous year preceding the filing of the application for a permit; and

3. Has a bona fide membership of at least ten members who reside in the City of Ceres.
“Nonprofit organization” means any nonprofit association or corporation organized primarily for veteran, patriotic, welfare, religious, civic betterment or charitable purposes, that has been approved by the Internal Revenue Service as a tax -exempt organization under Section 501(c)(3) of the Internal Revenue Code. Groups that are integral part of a recognized national organization must also operate under the organization’s IRS - recognized 501(c)(3) tax-exempt status.which has been issued a tax exempt certific ate as required under the California Revenue and Taxation Code or a group that is an integral part of of a recognized national organization having a tax exempt status. “Owner-occupant” means the record owner of real property as listed in the most current equalized assessment roll as maintained by the Stanislaus County Assessor. “Permit” means a permit for the sale of safe and sane fireworks issued pursuant to section

5.20.030.
“Permittee” means a local nonprofit organization that has received a permit for the sale of safe and sane fireworks.

ITEM 10

“Responsible party” means any person with an ownership interest or right of possession of the real property where unpermitted fireworks are possessed, sold, used, manufactured or discharged, including, but not limited to:

1. Any owner-occupant.

2. Any lessee, subtenant, licensee, or other person having possessory control over a property, structure, or parcel of land.

3. Any person that organizes, supervises, officiates, conducts, or controls the gathering or any other person accepting responsibility for such a gathering. “Safe and sane fireworks ” has the same meaning as that term is defined by California Health and Safety Code section 12529. All safe and sane fireworks shall be approved by the California Fire Marshal and labeled as safe and sane.

5.20.030 Permit applications.

A. The Fire Chief shall cause a standard application to be prepared a standard application for a permit. In addition to the requirements of section 5.02.010 the permit application shall include all of the following:

1. Proper identification and signature of the applicant.

2. A proposed location of the fireworks sales booth that includes the nine digit accessor's parcel number of the Stanislaus County Assessor.

3. Proof of safety training.

4. A site plan for the fireworks sales booth.

5. The written consent of the owner of the property upon which the proposed fireworks sales booth will be located.

6. A nonrefundable applicable fee as established by resolution of the City Council pursuant to Section 9.30.120.

7. Any other reasonable information that the Fire Chief may deem necessary to properly implement and administer the provisions of this chapter.

B. Applications shall be submitted during normal business hours from April 15 through June 15 of the same year.

C. All applications shall be submitted to the Fire Chief on or before June 15 of each year. Each application must be complete and contain all required information. Any application that is not properly completed and submitted to the office of the Fire Chief by 5:00 p.m. on June 15 will not be considered.

D. The Fire Chief or his or her designee shall review all submitted applications, and may consult with the Departments of Public Works, Engineering Services, and Community Development to ensure that the proposed location meets existing zoning regulations and does not create pedestrian or vehicular traffic hazards.

ITEM 10

5.20.060 Fireworks sales.

A. Safe and sane fireworks may only be sold or offered for sale from 12:00 noon to 10:00 p.m. on June 28 and from 9:00 a.m. to 10:00 p.m. from June 29 through July

6. B. Each of the following are mandatory point-of-sale safety requirements:

1. No person under the age of 18 shall sell, or handle for sale, any fireworks.

2. No person under the age of 18 shall purchase or be allowed to purchase any fireworks.

3. Smoking, open flame, or spark -producing equipment shall be prohibited for a distance of 100 feet in all directions of a fireworks sale booth.

4. Dry grass, weeds, trash, and all other combustible material shall be removed for a distance of 20 feet if the booth is on concrete or asphalt or 100 feet when on an open, unimproved lot in all directions of a fireworks sale booth.

5. Fireworks shall not be discharged within 150 feet in all directions of a fireworks sale booth.

C. Merchandise may be displayed in an approved glass-enclosed counter or showcase, or displayed in fireworks sale booths constructed in the following manner:

1. Walls and roof shall be of plywood at least one -third-inch thickness or of an approved noncombustible material.

2. The fireworks sale booth shall have a roof.

3. Notwithstanding an exit door, walls shall extend to a minimum height of six feet, eight inches on at least three sides. These three sides shall not have any openings.

4. Two exit doors shall be provided in each fireworks sale booth, with a minimum size of 24 inches in width and six feet in height. Exits shall be maintained clear and unobstructed at all times while open to the public.

5. The front wall of the fireworks sale booth shall provide a physical barrier not less than 18 inches in height between the public and the merchandise on display.

6. Approved "NO SMOKING" signs shall be securely fastened to the fireworks sale booth and prominently displayed in and on the exterior of the stand.

7. Approved "NO SALES TO PERSONS UNDER THE AGE OF 18" signs shall be securely fastened to the fireworks sale booth and prominently displayed in and on the exterior of the booth.

8. An approved fire extinguisher having a minimum U.L. classification of 2A shall be located in the fireworks sale booth near the exit and be readily accessible.

5.20.070 Storage of fireworks.

A. Permittees may only store safe and sane fireworks within the City solely during the period of June 22 through July 15 of each year.

ITEM 10

B. Safe and sane fireworks that are not being sold or displayed with the intent to sell shall be stored in the following manners:

1. Within the permitted fireworks sale booth with a responsible adult on the premises at all times.

2. In a completely enclosed and locked utility type trailer constructed of one - quarter-inch plywood or other approved noncombustible material.

3. In a completely detached garage on residential property with a minimum of ten- foot clearance to other structures or property lines and 100 feet from any place of habitation. There shall be no open flame or spark producing equipment, or class 1 flammable liquids stored or used within the garage.

4. Fireworks shall not be stored within 100 feet of any building classified or used as a public or private school, day care facility, residential care facility, hospital, place of detention, public oil/gas station, or public garage, or any place of public assembly that can accommodate 50 or more persons.

5. The following information shall be submitted to and approved by the Fire Chief will be required:
a. Storage location.
b. Description of storage facility.

5.20.080 Permittee safety training.

Each calendar year one or more representatives from each permittee shall attend a fireworks sales booth safety seminar conducted by the Fire Department or the fireworks industry. Failure to attend the seminar shall result in the revocation of the permittee's permit for that calendar year.

5.20.100 Dangerous fireworks prohibited.

A person shall not sell, use, possess, manufacture, or discharge dangerous fireworks within the City as defined by section 5.20.010.

5.20.110 Penalties.

A. In addition to any other remedies set forth in this title, administrative penalties may be imposed against any responsible party for violations of this chapter. The administrative penalty for violations of this chapter shall be $2,500.000 or imprisonment for a period not exceeding six months. as follows within a 36 -month period:

1. First violation: $2,500.00 fine.

2. Second violation: $3,500.00 fine.

3. Third violation and any thereafter: $4,500.00 fine.

Any violation of this section shall constitute a misdemeanor , which may result in imprisonment for a period not exceeding six (6) months. Any person who possesses less than 25 pounds of dangerous fireworks is also in violation of 12700 of the ITEM 10

California Health and Safety Code and the City may refer the violation to the District Attorney’s Office for criminal prosecution.

B. Any person who engages in the sales, manufacture, or distribution of dangerous fireworks shall be guilty of a misdemeanor and may be subject to an administrative penalty of $10,000.00 per occurrence or imprisonment for a period not exceeding six (6) months. Any person who sales, manufactures, or transports dangerous fireworks is also in violation of 12676 of the California Health and Safety Code and can have the violation referred to the District Attorney’s Office for criminal prosecution.

B.C. Every owner, occupant, lessee, tenant, or holder of any possessory interest of a residence or other private property within the City is required to maintain, manage and supervise property and all persons thereon in a manner so as not to violate the provisions of this chapter. A responsible party need not be present at the time dangerous fireworks are possessed, manufactured, sold, used, or discharged in order for the City to issue an administrative citation under this section.

D. For the purposes of this section, the term “responsible party” means any person with an ownership interest or right of possession of the real property where unpermitted fireworks are possessed, sold, used, manufactured or discharged, including but not limited to:

1. Any owner-occupant

2. Any lessee, subtenant, licensee, or other person having possessory control over a property, structure or parcel of land.

3. Any person that organizes, supervises, officiates, conducts or controls the gathering or any other person accepting responsibility for such a gathering.

4. Every parent, guardian or other person, having the legal care, custody or control of any person under the age of eighteen (18) years old may be issued a citation in accordance with the provisions of this article, in addition to any citation that may be issued to the offending minor.

C.E. Nothing in this section shall be intended to limit any of the penalties provided for under the Health and Safety Code or Penal Code.

ITEM 10
ITEM 10

ATTACHMENT C
City of Ceres

NOTICE OF PUBLIC HEARING

NOTICE IS HEREBY GIVEN THAT THE CERES CITY COUNCIL will hold a public hearing in the Council Chambers at 2701 Fourth Street, Ceres, CA on March 23, 2026, at 6:00 p.m. or as soon as possible thereafter, to receive and consider all evidence and reports relative to adoption of the following: An Ordinance of the City Council of the City of Ceres amending and adding to Title 5 – Business Licenses and Regulations, Chapter 20 – Fireworks Sales, amending Section 5.20.010 – Definitions, amending Section

5.20.060 – Fireworks Sales, amending Section 5.20.070 – Storage of Fireworks, amending Section 5.20.080 – Permittee Safety Training, amending Section 5.20.100 – Dangerous Fireworks Prohibited, and amending Section 5.20.110 – Penalties, of the City of Ceres Municipal Code.

The Ceres City Council will consider an amendment to the Ceres Municipal Code to broaden the definition of dangerous fireworks, address Point of Sale safety requirements, strengthen the requirements for the storage of fireworks, provide updated standards for safety training and augment the fines imposed for violations. This amendment is being proposed in response to staff identifying the following recurring issues during the fireworks sales period: increased illegal fireworks activity, fire hazards and property damage, enforcement challenges and neighborhood complaints.

All interested parties are invited to attend said hearing and express opinions or submit evidence for or against proposal as outlined above.

Further information on the above hearing may be obtained or viewed at the office of the City Clerk, City Hall, 2220 Magnolia Street Ceres, CA 95307 or by telephone at (209) 538-5731.

If a citizen wishes to challenge the nature of the above actions in court, they may be limited to raising only those issues they or someone else raised at the public hearing described in the notice, or in written correspondence delivered to the City of Ceres, at, or prior to the public hearing.

/s/ Fallon Martin, City Clerk

Date Notice Posted: March 11, 2026

ITEM 10
ITEM 10

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: March 23, 2026
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Nubia I. Goldstein, City Attorney
SUBJECT:

Ordinance No. 2026-XXXX, An Ordinance of the City Council of the City of Ceres Amending Title 5, Business Licenses and
Regulations, Chapter 3, General Permit Procedure, Section 010, General and Title 5, Business Licenses and Regulation, Chapter 22, Cannabis Pilot Program, of the Ceres Municipal Code
Ordinance No. 2026-XXXX, A Zoning Ordinance Text Amendment of the City Council of the City of Ceres Adding Chapter 44, Cannabis Conditional Use Permits, to Title 18, Zoning, and Amending Sections 18.02.010, 18.13.020, 18.16.040, 18.17.040, 18.18.040,

18.19.040, and 18.20.040, of Title 18, Zoning, of the Ceres Municipal Code
RECOMMENDED COUNCIL ACTION:

Staff recommends Council take the following actions to revise the City of Ceres ’ Cannabis Business Regulations in the Ceres Municipal Code:

1. Approve the first reading and introduction of Ordinance No . 2026-XXX (Attachment A), reading by title only, waiving further reading, an Ordinance of the City of Ceres amending Section 5.03.010, General, of Chapter 5.03, General Permit Procedure, and amending Chapter 5.22, Cannabis Pilot Program, of Title 5, Business License and Regulation, of the Ceres Municipal Code.

2. Approve the first reading and introduction of Zoning Ordinance Text Amendment No. 2026-XXX (Attachment B), reading by title only, waiving further reading, a Zoning Ordinance Text Amendment of the Ceres City Council adding Chapter 18.4 4, Cannabis Conditional Use Permits, to Title 18, Zoning, and amending Sections 18.02.010,

18.13.020, 18.16.040, 18.17.040, 18.18.040, 18.19.040, and 18.20.040, of Title 18, Zoning of the Ceres Municipal Code.

ITEM 11a & 11b
4910-5751-9513, v. 2
I. BACKGROUND:

The Medical and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”), codified in Business and Professions Code section 26000 et seq., established the comprehensive state regulatory framework for commercial medicinal and adult -use cannabis activity.

MAUCRSA expressly preserves the authority of local jurisdiction to regul ate or prohibit cannabis operations within their boundaries.

The City of Ceres (“ City”) has permitted and regulated medical and adult use cannabis businesses under the Cannabis Pilot Program codified in Chapter 5.22 (“Pilot Program”), of the Ceres Municipal Code (“CMC”), established on May 29, 2018. Since the establishment of the Pilot Program, the City has gained a better understanding of the commercial cannabis industry and its impact to public health, safety, and welfare. Based on this experience, staff and the Ceres City Council (“ City Council”) have identified the need to update the Pi lot Program to a permanent regulatory structure to strengthen the City’s enforcement authority and ensure consistent compliance with local and state regulations.

II. DISCUSSION:

The City Council has held multiple public discussions and heard from staff, City cannabis operators, and the public regarding potential changes to the City’s regulation of cannabis businesses. Based on these discussions, staff has prepared substantial amendments to the CMC to implement the City Council’s direction regarding updates to the City’s cannabis regulations.

The updates to cannabis business regulations are contained in two separate ordinances.

The first Ordinance proposes amendments to section 5.03.010, General, of Chapter 5.03, General Permit Procedure, and amends Chapter 5.22 , Cannabis Pilot Program . The second Ordinance , is a zoning ordinance text amendment that adds Chapter 18.4 4, Cannabis Conditional Use Permits to the City’s Zoning Ordinance and amends related zoning provisions to authorize cannabis businesses within specified zoning districts.

The revisions to the CMC will result in cannabis businesses being subject to three entitlements: (1) a City business license, (2) a development agreement, and (3) a cannabis conditional use permit. Although each entitlement is governed by a separate chapter of the CMC, they are intended to operate collectively to ensure compliance with applicable state and local laws. Together, these entitlements create an integrated and cohesive regulatory framework governing cannabis businesses within the City.

1. Proposed Changes to Section 5.03.010 General, of Chapter 5.03, General Permit Procedure.

Section 5.03.010, subdivision (A), currently requires commercial cannabis businesses to obtain a separate permit issued by the City. The City Council has directed staff to eliminate this standalone permit requirement and instead rely on development agreements and cannabis conditional use permits as the primary regulatory mechanisms for commercial cannabis businesses.

The proposed amendment to section 5.03.010 aligns the CMC accordingly by removing the redundant cannabis business permit requirement. Cannabis businesses will remain ITEM 11a & 11b
4910-5751-9513, v. 2
subject to the requirement to obtain and maintain a general City business license pursuant to Title 5.

2. Proposed Changes to Chapter 5.22, Cannabis Business Regulations.

Chapter 5.22, Cannabis Pilot Program, currently contains the City’s cannabis business regulations. The proposed ordinance would repeal Chapter 5.22 in its entirety and replace it with a revised Chapter 5.22, Cannabis Business Regulations.

The proposed Chapter 5.22 contains general requirements on cannabis businesses, provides the procedure for cannabis businesses to obtain a development agreement, and establishes the City’s enforcement mechanisms.

The City Council has expressed interest in establishing a limit on the number of cannabis dispensaries permitted within the City. The proposed amendments to Chapter 5.22 present two alternatives for the Council’s consideration: a cap of two dispensaries or a cap of four dispensaries. Prior to introduction of the Ordinance, the Council must determine whether to impose a cap and, if so, select the preferred alternative. Staff will revise the Ordinance to reflect the Council’s direction. As discussed in the fi scal impact section below, adopting a cap of four dispensaries will help the City maximize potential tax revenue . This approach preserves the City’s ability to attract additional operators, particularly in light of the City’s comparatively competitive tax rates.

The revised Chapter 5.22 clarifies and formalizes the procedures for cannabis business development agreements. The Chapter establishes defined application requirements and approval procedures, including fingerprinting and police -conducted background checks for all cannabis business owners.

The proposed amendments to Chapter 5.22 expand the City’s enforcement authority by expressly authorizing inspections, establishing administrative fines for minor violations, incorporating nuisance abatement procedures for code violations, and providing a c ost- recovery mechanism to reimburse the City for expenses incurred in connection with enforcement actions.

3. Proposed Addition of Chapter 18.44, Cannabis Conditional Use Permits.

Adding Chapter 18.44, Cannabis Conditional Use Permits, is an amendment to the City’s Zoning Ordinance. On February 2, 2026, the Ceres Planning Commission passed a resolution recommending the City Council adopt the Zoning Ordinance Text Amendment to add Chapter 18.44 to the CMC as required by state law.

The addition of Chapter 18.4 4 to the CMC requires all cannabis businesses operating within the City to obtain and maintain a Cannabis Conditional Use Permit. Each permit establishes property -specific conditions of approval that govern the operation of the cannabis business and with which the business must continuously comply.

Cannabis conditional use permits start with the same cannabis business application used for development agreements. The cannabis conditional use permit then follows the existing procedure for conditional use permits which are approved by the Planning Commission.

ITEM 11a & 11b
4910-5751-9513, v. 2
Chapter 18.44 provides the minimum conditions of approval for each cannabis business.

The Planning commission may impose more stringent conditions based on an applicants circumstances. The conditions of approval include but are not limited to:
• Premises Conditions;
• Security Conditions;
• Cannabis Waste Conditions;
• Cannabis Odor Conditions;
• Cannabis Cultivation Conditions;
• Cannabis Manufacturing Conditions;
The City’s enforcement options for cannabis conditional use permits include administrative citations and revocation. Specific circumstances under which a cannabis conditional use permit may be revoked are also provided by the Chapter. Revocation proceedings follow the same procedures applicable to the revocation of traditional conditional use permits under Chapter 18.30.

In addition to adding chapter 18.4 4, the ZOTA amends multiple sections of Title 18 to identify where cannabis businesses are permitted as conditional uses. The City’s current cannabis businesses are located in Planned Community and Industrial zones. Staff has proposed that cannabis businesses may be conditional uses in the following zones:
• Planned Community - CMC Chapter 18.13
• Community Commercial – CMC Chapter 18.16
• Wholesale Commercial - CMC Chapter 18.17
• Highway Commercial - CMC Chapter 18.18
• Light Industrial - CMC Chapter 18.19
• General Industrial - CMC Chapter 18.20
III. FISCAL IMPACTS:

The City Council directed staff to present two alternatives for the cap on the number of retail cannabis businesses. Staff has proposed establishing a cap of either two or four retail operators in the municipal code. When considering this issue, the City Council should be aware that by setting low tax rates, it has created an incentive that could attract additional retail businesses. To fully capitalize on this more business-friendly environment and generate new tax revenue, the City may wish to allow additional retailers to operate.

Conversely, maintaining a cap of two retailers while keeping tax rates low would limit the City’s ability to realize the potential economic benefits of the new tax structure, as new operators would be prohibited from entering the market.

The proposed amendments clarify and strengthen the City’s enforcement authority over cannabis businesses. By establishing clearer compliance mechanisms and enforcement tools, the amendments are expected to reduce the administrative and legal costs associated with pursuing violations and to enhance the City’s ability to recover fines, fees, and other revenues owed by cannabis businesses.

V. POLICY ALTERNATIVES:

1. Introduce the ordinances for first reading with the City Council’s preference related to the limit on cannabis businesses permitted in the City; or ITEM 11a & 11b
4910-5751-9513, v. 2

2. Provide direction to staff related to the ordinances; or

3. Deny the ordinances.

VI. INTERDEPARTMENTAL COORDINATION:

N/A.

VII. PUBLIC PARTICIPATION:

The public is encouraged to provide input at the City Council meeting.

VIII. ENVIRONMENTAL REVIEW:

The proposed Ordinances are a general policy change that does not result in a direct or reasonably foreseeable indirect physical change in the environment and, therefore, does not meet the definition of a “project” under the California Environmental Quality Act (“CEQA”) pursuant to Section 21065 of the Public Resources Code and Section 15378 of the CEQA Guidelines (Title 14, California Code of Regulations).

IX. STEPS FOLLOWING APPROVAL:

The City Council will consider approval of the second reading and adoption of the Ordinance at a later meeting of the City Council.

Approved by: ____________________
Douglas D. Dunford,
City Manager
Attachments:

1. Attachment A – Cannabis Pilot Program Ordinance Amendment

2. Attachment B – Zoning Ordinance Text Amendment

3. Attachment C – Redline Changes to Cannabis Pilot Program Ordinance

4. Attachment D – Redline Changes to Zoning Ordinance Text Amendment

5. Attachment E – Public Hearing Notice
ITEM 11a & 11b
ITEM 11a & 11b

ATTACHMENT A
ORDINANCE NO. 2026-XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CERES AMENDING TITLE 5, BUSINESS LICENSES AND REGULATIONS, CHAPTER 3, GENERAL PERMIT PROCEDURE, SECTION 010, GENERAL AND TITLE 5, BUSINESS LICENSES AND REGULATION, CHAPTER 22, CANNABIS PILOT PROGRAM, OF

THE CERES MUNICIPAL CODE
WHEREAS, the Medicinal and Adult -Use Cannabis Regulation and Safety Act (“MAUCRSA”), codified in Business and Professions Code section 26000 et seq., establishes the comprehensive state regulatory framework for commercial medicinal and adult-use cannabis activity, and expressly preserves the authority of local jurisdictions to regulate or prohibit such operations within their boundaries; and WHEREAS, on May 29, 2018, the City Council adopted Ordinance No. 2018-1045, establishing a Cannabis Business Pilot Program (“ Pilot Program ”) regulating the operation of cannabis businesses within the City which is now codified in Chapter 5.22 of the Ceres Municipal Code (“CMC”); and
WHEREAS, on November 8, 2018, Ceres voters approved Measure W, which authorized the City Council to impose a business license tax of up to fifteen percent (15%) of the gross receipts of any marijuana-related business (“Cannabis Business Tax”); and WHEREAS, since the establishment of the Pilot Program, the City has gained a better understanding of the cannabis industry, which has informed how the City intends to regulate cannabis businesses going forward; and
WHEREAS, the City Council finds that updating the Pilot Program to establish a permanent regulatory structure for cannabis businesses is necessary to protect the public health, safety, and welfare; and
WHEREAS, as part of these permanent regulations, the City Council has determined to update the Pilot Program to implement the Cannabis Business Tax, clarify procedural requirements for cannabis business entitlements , and strengthen the City’s enforcement authority to further protect the public health, safety, and welfare of the community; and
WHEREAS, prior to implementing the Cannabis Business Tax, the City must make minor adjustments to the general business license procedure for City business licenses section to ensure consistency with revisions to the Pilot Program and to provide for proper administration, collection, and enforcement of the Cannabis Business Tax; and WHEREAS, the City Council now wishes to update Chapter 5.22, Cannabis Business Pilot program to implement a permanent regulatory structure for cannabis businesses within the City; and
ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
WHEREAS, the proposed Ordinance constitutes a general policy change that does not result in a direct or reasonably foreseeable indirect physical change in the environment and, therefore, does not meet the definition of a “project” under the California Environmental Quality Act (“CEQA”) pursuant to Section 21065 of the Public Resources Code and Section 15378 of the CEQA Guidelines (Title 14, California Code of Regulations).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CERES ORDAINS AS FOLLOWS:

SECTION 1. Section 5.03.010, General, of Chapter 3, General Permit Procedure, of Title 5, Business Licenses and Regulations, of the Ceres Municipal Code shall be amended to remove subsection 16 , Commercial cannabis businesses, and move 17, Sidewalk vending, to 16 of Paragraph (A) as follows:

5.03.010 – General.

A. Certain activities in the City require permits issued by the City Manager or designee.

The following activities require a permit issued by the City:

1. Patrol services;

2. Motion picture and television production;

3. Alcoholic beverages;

4. Junk dealers and scrap metal recyclers;

5. Special events and temporary street closures;

6. Public dances, dancing places, and concerts;

7. Fortunetelling;

8. Taxicabs;

9. Adult entertainment businesses;

10. Garage sales;

11. Massage establishments;

12. Mobile food vendor;

13. Bingo;

14. Firework sales;

15. Ambulances;

16. Sidewalk vending.

B. All requirements of this chapter are in addition to the requirements of chapters 5.06 through 5.24.

ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
SECTION 2. Chapter 5.22, Cannabis Pilot Program, of Title 5, Business Licenses and Regulations, of the Ceres Municipal Code shall be repealed in its entirety and replaced with a new Chapter 5.22, Cannabis Business Regulations, which shall read as follows:

Chapter 5.22

CANNABIS BUSINESS REGULATIONS
Sections:

5.22.010 Declaration of purpose.

5.22.020 Definitions.

5.22.030 State requirements.

5.22.040 Required local approvals.

5.22.050 Cannabis business application.

5.22.060 Investigation and fingerprinting of applicant.

5.22.070 Development agreement.

5.22.080 Revocation of development agreement.

5.22.090 Cannabis business tax.

5.22.100 Operational requirements.

5.22.110 Limit on number of cannabis dispensaries.

5.22.120 Inspections.

5.22.130 Enforcement.

5.22.140 Public nuisance.

5.22.150 Cost recovery.

5.22.160 Nonconforming use.

5.22.170 Relationship to other laws.

5.22.180 Severability.

5.22.010 Declaration of Purpose.

A. The City finds and declares that the purpose of this chapter is to regulate all commercial cannabis activity in the City of Ceres, to the extent authorized by state law and in a manner designed to minimize negative impacts on the City, and to promote the h ealth, safety, morals, and general welfare of residents and businesses within the City.

B. It is the purpose and intent of the City Council to implement state law by regulating cannabis businesses and to ensure that commercial cannabis activity does not result in the diversion of cannabis for illicit purposes.

C. Cannabis businesses shall comply with all provisions of the Ceres Municipal Code, state law, and all other applicable local and state regulations. It is neither the intent nor the effect of this chapter to condone or legitimize the illegal use, consumption, or cultivation of cannabis under federal, state, or local law.

D. The regulations in this chapter do not interfere with a qualified patient's right to obtain and use cannabis as authorized under state law, nor do they criminalize the ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
possession or cultivation of cannabis by qualified patients or their primary caregivers.

5.22.020 Definitions.

Abatement costs shall include the actual and reasonable costs incurred by the City to abate a public nuisance. These costs include all direct and indirect costs to the City that result from the total abatement action, including, but not limited to, investigation costs, costs to enforce the Ceres Municipal Code and any applicable State, County or local law, clerical and administrative costs to process paperwork, costs incurred to provide notices and prepare for and conduct administrative appeal hearings, and costs to conduct actual abatement of the nuisance. Costs include personnel costs, administrative overhead, costs for equipment such as cameras and vehicles, staff time to hire a contractor, and reasonable attorneys’ fees incurred by City.

Applicant shall mean a person that files an application to operate a cannabis business pursuant to this code.

Business means a profession, trade, occupation, gainful activity, and all and every kind of calling whether or not carried on for profit.

Cannabis shall mean all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. “Cannabis” does not mean “industrial hemp” as defined by Cal. Health & Safety Code § 11018.5.

Commercial cannabis activity includes the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a state license, including medicinal cannabis or medicinal cannabis product as defined in section 26001 of the Business and Professions Code.

Cannabis business shall mean any person or business that engages in commercial cannabis activity.

Cannabis Business Tax shall mean the tax imposed on all commercial cannabis businesses pursuant to Ceres Municipal Code chapter 3.26.

Cannabis conditional use permit shall mean a conditional use permit issued to a cannabis business pursuant to Ceres Municipal Code chapter 18.44.

ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
Cannabis delivery or cannabis deliveries shall mean the sale of cannabis and cannabis products by delivery to a customer pursuant to a Type 10 State cannabis license. “Cannabis delivery” does not mean the transfer or sale of cannabis or cannabis products between two cannabis businesses.

Cannabis dispensary shall mean a business at a particular location or real property involving the distribution of cannabis to qualified patients, primary caregivers, persons with identification cards, or customers pursuant to a Type 10 State cannabis license that is consistent with State law and this chapter.

Cannabis manufacturing business shall mean any cannabis business that, pursuant to a Type 6, Type 7, or Type 12 State cannabis license, manufactures cannabis or cannabis products.

Cannabis product shall mean cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

City business license shall mean a business license issued by the City pursuant to Ceres Municipal Code Title 5.

City Manager shall mean the Ceres City Manager or their designee.

Cultivation shall mean any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

Customer shall mean natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physician's recommendation, or a primary caregiver who purchases or otherwise lawfully obtains cannabis or cannabis products from a licensed cannabis business for personal use, whether for medicinal or adult-use purposes, and not for resale.

Medicinal and Adult -Use Cannabis Regulation and Safety Act or MAUCRSA has the same meaning as chapter 1 (commencing with section 26000) of division 10 of the California Business and Professions Code, and any applicable rules and regulations promulgated thereafter.

Permittee shall mean any person or entity who has been granted a cannabis conditional use permit by the City authorizing the operation of a cannabis business, and who is operating or intends to operate such business in accordance with the terms and conditions of that permit.

Person shall mean an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.

ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
Primary caregiver shall have the same meaning as set forth in California Health and Safety Code section 11362.7(d).

Responsible party shall mean a person or entity responsible for creating, causing, committing, or maintaining any violation of this code or State, County, or local law.

Subject property shall mean the real property that is the subject of any abatement or enforcement action by the City for which the City incurred costs and seeks recovery under this code.

Qualified patient shall have the same meaning as set forth in California Health and Safety Code section 11362.7(f).

5.22 030 State requirements.

A. Any cannabis business that does not have the applicable state license is prohibited within the City.

B. Every cannabis business operating within the City shall:

1. Obtain and maintain all required licenses, permits, and approvals issued by the State of California or any applicable state regulatory agency, including, without limitation, licenses under the Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA).

2. Operate in full compliance with all applicable state laws, regulations, and guidelines governing cannabis businesses, including but not limited to cultivation, manufacturing, distribution, testing, and retail sales.

3. Immediately notify the City of any suspension, revocation, or other enforcement action taken by a state agency against the business’s license(s).

4. Cease operations if any required state license is suspended or revoked until such time as the license is reinstated.

C. This chapter, and the provisions herein, shall be read consistent with any statewide regulation of cannabis that is promulgated by the legislature or by voter approval.

5.22.040 Required local approvals.

A. No person or entity shall establish, operate, or continue to operate any cannabis business within the City without first obtaining and thereafter maintain in good standing each of the following approvals:

1. A valid development agreement.

2. A valid cannabis conditional use permit.

3. A valid City business license.

B. Each cannabis business shall continuously maintain all required approvals listed in subsection (A). The expiration, suspension, or revocation of any one of these approvals shall constitute grounds for suspension or revocation of the others and shall immedi ately require the cessation of all cannabis operations until such approvals are reinstated or reissued.

ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
C. The issuance of any approval under this Chapter does not create a vested right to continue operating a cannabis business and shall not limit the City’s authority to amend, suspend, or terminate such approvals as provided by law or the terms of the applicable approval.

5.22.050 Cannabis business application.

A. A person may apply to operate a cannabis business by filing a cannabis business application with the City Manager on a form provided by the City.

B. No cannabis business application shall be processed unless applicant pays the application fee in an amount to be established by resolution of the City Council.

C. No cannabis business application shall be processed unless applicant has entered into a funding agreement with the City to cover application processing costs and all other established costs payable to the City in connection with a cannabis business application.

D. No cannabis business application shall be process ed unless applicant has executed an indemnification agreement approved by the City Attorney.

E. Any proposed transfer of ownership of a cannabis business shall be submitted through a cannabis business application, together with all required fees and documentation. The transferee shall meet all eligibility requirements for a cannabis business under this chapter.

5.22.060 Investigation and fingerprinting of applicant.

A. Prior to the acceptance of applications for a license, transfer of ownership, or other approval as provided in this chapter, the following individuals shall authorize the Chief of Police to perform criminal background investigation by providing verified fingerprint information to the Ceres Police Department:

1. If the applicant is a natural person, that person.

2. If the applicant is a partnership, all of the partners.

3. If the applicant is a corporation, both the officers and directors, together with any person with an ownership interest of ten percent (10%) or more.

B. No cannabis business shall be permitted to operate in the City if the background investigation indicates disqualifying criminal history.

5.22.070 Development agreement.

A. No cannabis business shall commence or continue operations in the City without obtaining and maintaining a valid development agreement in full force and effect.

B. An applicant shall be eligible to enter into a development agreement upon completion of background investigation of all applicable individuals.

C. Development agreements shall be issued pursuant to Ceres Municipal Code chapter 18.37.

D. A development agreement may be approved prior to an applicant having received all required state licenses and local permits; however, no cannabis business shall ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
receive a certificate of occupancy nor operate in the City prior to possessing the required state and local licenses and approvals.

E. Development agreements may not be transferred, sold, assigned or bequeathed expressly or by operation of law. Any attempt to directly or indirectly transfer a development agreement shall be unlawful and void and shall automatically revoke the permit.

F. Development agreements shall be periodically reviewed pursuant to Ceres Municipal Code section 18.37.180.

5.22.080 Termination of development agreement.

A. Termination of development agreements shall follow procedures provided by Ceres Municipal Code chapter 18.37.

B. Upon termination a development agreement, an operator’s cannabis conditional use permit and City business license shall be subject to revocation.

5.22.090 Cannabis business tax.

A. All cannabis businesses within the City are subject to the Cannabis Business Tax established by Ceres Municipal Code chapter 3.26.

B. A cannabis business’ failure to pay the Cannabis Business Tax constitutes grounds for revocation of its development agreement, cannabis conditional use permit or City business license.

5.22.100 Operational requirements.

A. Cannabis business operations shall comply with all applicable state and local laws and regulations.

B. Cannabis business operations shall comply with the conditions of approval of their cannabis conditional use permit.

C. A cannabis business shall immediately cease operations upon revocation of its development agreement, cannabis conditional use permit, or City business license and operator shall comply with all closure and inventory disposal requirements under this code and state and local law and regulations.

5.22.110 Limit on number of cannabis dispensaries.

A. The total number of licensed cannabis dispensaries operating within the city shall not exceed four (4) at any given time.

Alternative
A. The total number of licensed cannabis dispensaries operating within the city shall not exceed two (2) at any given time.

B. If the maximum number of cannabis dispensaries is reached, no additional cannabis dispensaries shall be issued a development agreement or cannabis conditional use permit until an existing cannabis dispensary’s development ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
agreement and cannabis conditional use permit is voluntarily surrendered, revoked, or otherwise terminated.

5.22.120 Inspections.

A. The City Manager and any authorized City official shall have the right to enter the premises of any cannabis business, during regular business hours or at any other reasonable time, to inspect the premises and business records to ensure compliance with this code, any conditions of approval, and state and local law and regulations.

5.22.130 Enforcement.

A. Violation of any condition of approval of a cannabis conditional use permit shall constitute a violation of this chapter.

B. Violations of this chapter are subject to administrative remedies provided by Ceres Municipal Code chapter 19.10.

C. The amount of fine imposed for violation of this chapter shall not exceed:
a. Schedule 1. Five Hundred Dollars ($500) for a first violation. b. Schedule 2. Seven hundred and Fifty Dollars ($750) for a second violation of the same code section within one (1) year.
c. Schedule 3. One Thousand Dollars ($1,000) for each additional violation of the same code section within one (1) year.

D. Each violation of this chapter, or of any condition of approval of a cannabis conditional use permit, shall constitute a separate offense.

E. Any permittee whose cannabis conditional use permit, development agreement, or City business license is revoked shall immediately cease all cannabis -related operations within the City.

F. In addition to any other remedy, the City may seek injunctive relief and may recover costs of enforcement, including attorneys’ fees.

G. The remedies provided herein are cumulative and in addition to any other remedies available under law.

5.22.140 Public nuisance.

A. Any commercial cannabis use or activity caused or permitted to exist in the City in violation of any provision of this chapter shall be and is hereby declared a public nuisance and may be abated by the City pursuant to the procedures provided by Ceres Municipal Code chapter 19.07.

B. The remedies provided in this section are cumulative and do not limit the City’s authority to pursue all other remedies available under law.

5.22.150 Cost recovery.

A. The City shall be entitled to recover its abatement and enforcement costs incurred in obtaining compliance with this code. Costs incurred by the City are recoverable ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
even if a public nuisance or violation of this code, the Ceres Municipal Code, or state law or regulation is corrected by the property owner or other responsible party.

B. The cost of abating a public nuisance or enforcing this code shall either be a special assessment and lien on the subject property or the personal obligation of the owner of the subject property or the responsible party. If there is more than one (1) responsible party, each party shall be jointly and severally liable for the costs.

5.22.160 Nonconforming use.

Any cannabis business established or operating in the City in violation of this chapter shall not be considered a lawful or permitted nonconforming use, and no such cannabis business shall be eligible for issuance of any permits or approvals under the Cere s Municipal Code. Further, any such unlawfully established cannabis business shall constitute a public nuisance subject to abatement by the City.

5.22.170 Relationship to other laws.

Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in chapter 1 (commencing with section 26000) of division 10 of the California Business and Professions Code, or its successors. In the event of any conflict between the provisions of this chapter and the provisions of that chapter or any other applicable state or local law, the more restrictive provision shall control.

5.22.180 Severability.

Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of th is chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.

SECTION 3. SEVERABILITY. If any section, subdivision, sentence, clause, phrase or portion of this ordinance is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof and shall continue to be in full force and effect.

SECTION 4 . EFFECTIVE DATE AND PUBLICATION . This Ordinance shall become effective thirty (30) days from and after its final passage and adoption, provided it is published in a newspaper of general circulation at least within fifteen (15) days after its passage or a summary of the Ordinance is published in a newspaper of general circulation at least five (5) days prior to adoption and again at least within fifteen (15) days after its passage.

ITEM 11a & 11b

ATTACHMENT A
4910-2763-4841, v. 1
SECTION 5 . CERTIFICATION OF COUNCIL ADOPTION AND APPROVAL. This Ordinance was introduced at a regular meeting of the City Council held on the 23rd day of March 2026, and passed and adopted as Ordinance No. 2026-XXXX at a regular meeting of City Council held on the 13th day of April 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

APPROVED:
________________________________
Javier Lopez, Mayor
ATTEST:
______________________________
Fallon Martin, City Clerk
APPROVED AS TO FORM:
______________________________
Nubia I. Goldstein, City Attorney
ITEM 11a & 11b
ITEM 11a & 11b

ATTACHMENT B
ORDINANCE NO. 2026-XXXX

A ZONING ORDINANCE TEXT AMENDMENT OF THE CERES CITY COUNCIL ADDING CHAPTER 44, CANNABIS CONDITIONAL USE PERMITS TO TITLE 18, ZONING, AND AMENDING SECTIONS 18.02.010, 18.13.020, 18.16.040, 18.17.040,

18.18.040, 18.19.040, AND 18.20.040, OF TITLE 18, ZONING, OF THE CERES

MUNICIPAL CODE
WHEREAS, the Medicinal and Adult -Use Cannabis Regulation and Safety Act (“MAUCRSA”), codified in Business and Professions Code section 26000 et seq., establishes the comprehensive state regulatory framework for commercial medicinal and adult-use cannabis activity, and expressly preserves the authority of local jurisdictions to regulate or prohibit such operations within their boundaries; and WHEREAS, on May 29, 2018, the Ceres City Council (“City Council”) adopted Ordinance No. 2018 -1045, establishing a Cannabis Pilot Program (“ Pilot Program ”) regulating the operation of cannabis businesses within the City which is now codified in Chapter 5.22 of the Ceres Municipal Code; and
WHEREAS, since the establishment of the Pilot Program, the City has gained a better understanding of the cannabis industry, which has informed how the City intends to regulate cannabis businesses going forward; and
WHEREAS, the City Council finds that updating the Pilot Program to establish a permanent regulatory structure for cannabis businesses is necessary to protect the public health, safety, and welfare; and
WHEREAS, as part of these permanent regulations, the City Council has determined that all cannabis businesses operating within the City shall be required to obtain a cannabis conditional use permit; and
WHEREAS, the addition of Chapter 18.4 4, Cannabis Conditional Use Permits, implements the City Council’s determination and establishes procedures, operational standards, and enforcement authority for the City related to cannabis conditional use permits; and
WHEREAS, to ensure consistency within Title 18, Zoning, corresponding amendments have been made to designate cannabis businesses as conditional uses in the Community Commercial, Wholesale Commercial, Highway Commercial, Light Industrial, General Industrial, and Planned Community zones; and WHEREAS, on February 2, 2026, the Planning Commission of the City of Ceres held a duly noticed public hearing and adopted a resolution recommending that the City Council approve this zoning ordinance text amendment.

ITEM 11a & 11b

ATTACHMENT B
4932-8960-9881, v. 2

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

SECTION 1. Chapter 44, Cannabis Conditional Use Permits, shall be added to of Title 18, Zoning, of the Ceres Municipal Code which shall read as follows:

Chapter 18.44 - CANNABIS CONDITIONAL USE PERMITS
Sections:

18.44.010 Definitions.

18.44.020 Cannabis conditional use permit required.

18.44.030 Cannabis conditional use permit application.

18.44.040 Cannabis conditional use permit procedure.

18.44.050 Revocation of cannabis conditional use permit.

18.44.060 Conditions of approval for cannabis conditional use permit.

18.44.070 General conditions.

18.44.080 Premises conditions.

18.44.090 Security conditions.

18.44.100 Signage conditions.

18.44.110 Cannabis waste conditions.

18.44.120 Odor control conditions.

18.44.130 Cultivation conditions.

18.44.140 Manufacturing conditions.

18.44.150 Cannabis delivery conditions.

18.44.160 Insurance conditions.

18.44.170 Severability.

18.44.010 Definitions.

Applicant: a person that files an application for a cannabis conditional use pursuant to this chapter.

Cannabis: all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivativ e, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks , oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapa ble of germination. “Cannabis” does not mean “industrial hemp” as defined by Cal. Health & Safety Code § 11018.5.

Cannabis business: any person or entity that engages in commercial cannabis activity.

ITEM 11a & 11b

ATTACHMENT B
4932-8960-9881, v. 2
Cannabis business tax: the tax imposed by the City on persons engaged in a cannabis business pursuant to Ceres Municipal Code chapter 3.26.

Cannabis conditional use permit: a conditional use permit issued to a cannabis business pursuant to this chapter.

Cannabis cultivation business : any business engaged in commercial cannabis activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

Cannabis delivery: the sale of cannabis and cannabis products by delivery to a customer pursuant to a Type 10 State cannabis license. “Cannabis delivery” does not mean the transfer or sale of cannabis or cannabis products between two cannabis businesses.

Cannabis dispensary : a business at a particular location involving the distribution of cannabis to customers pursuant to a Type 10 State cannabis license that is consistent with State law and this chapter.

Cannabis manufacturing business: a business engaged in commercial cannabis activity involving compounding, blending, extracting, infusing, packaging, labeling, or otherwise making or preparing a cannabis product.

Cannabis product: cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

Cannabis waste: waste that is cannabis or cannabis product that has been discarded, destroyed, or is no longer usable or saleable, including plant material, trimmings, extracts, infused products, packaging containing cannabis residue, or other materials contaminated with cannabis.

City Manager: the Ceres City manager or their designee.

City business License: a business license issued by the City pursuant to Ceres Municipal Code chapter 5.02.

Commercial cannabis activity : the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a state license, including medicinal cannabis or medicinal cannabis product as defined in section 26001 of the Business and Professions Code.

Customer: natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physician's recommendation, or a primary caregiver who purchases or otherwise lawfully obtains cannabis or cannabis products from a licensed cannabis business for personal use, whether for medicinal or adult-use purposes, and not for resale.

ITEM 11a & 11b

ATTACHMENT B
4932-8960-9881, v. 2
Permittee: any person, business, or entity that has been issued a cannabis conditional use permit by the City under this chapter, and includes the permit holder’s agents, employees, successors, and assigns acting within the scope of the permit.

Premises: the land, buildings, structures, and any other improvements or facilities occupied, used, or intended to be used by a permittee for the operation of a cannabis business.

Person: an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.

Temporary structure shall mean a structure that is erected or placed on a lot for a limited and specified period, not intended for permanent occupancy, and removed upon expiration of the approved time period.

18.44.020 Cannabis conditional use permit required.

A. No cannabis business shall operate in the City unless it has first obtained and continues to maintain compliance with all of the following:

1. All applicable state licenses and permits.

2. A cannabis conditional use permit.

3. A validly executed development agreement.

4. A City business license.

B. Any cannabis business that fails to satisfy any of the requirements in subsection (A) shall immediately cease operations and shall not resume operations until that cannabis business is in full compliance with all applicable requirements.

18.44.030 Cannabis conditional use permit application.

A. An applicant shall file the following information with the City at the time of application for a cannabis conditional use permit:

1. A completed cannabis business application.

2. Completed background checks of all applicable individuals pursuant to Ceres Municipal Code section 5.22.060.

3. Any additional information required by the City Manager.

B. No cannabis conditional use permit application shall be processed unless the applicant pays the application fee in an amount to be established by resolution of the City Council.

18.44.040 Cannabis conditional use permit procedure.

A. A cannabis conditional use permit shall be processed in accordance with the procedures set forth in Ceres Municipal Code chapter 18.30.

B. A permittee seeking to amend the conditions of approval of its cannabis conditional use permit shall submit a written request to the City Manager and pay applicable processing fees. Amendments that do not substantially change the type or scope ITEM 11a & 11b

ATTACHMENT B
4932-8960-9881, v. 2
of use may be approved by the City Manager. All other amendments shall require a public hearing and Planning Commission approval.

18.44.050 Revocation of cannabis conditional use permit.

A. A cannabis conditional use permit may be revoked based on certain findings, including but not limited to if any of the following:

1. That the permittee has violated any condition of approval of its cannabis conditional use permit.

2. That the permittee has violated any term or condition of its development agreement.

3. That the permittee’s development agreement has been revoked, terminated, or otherwise rendered invalid.

4. That the permittee’s City business license has been revoked, suspended, or otherwise rendered invalid.

5. That the permittee has failed to pay any applicable cannabis business tax.

6. That the permittee’s applicable state license has been revoked, suspended, or otherwise rendered invalid.

7. That the permittee has violated any provision of the Ceres Municipal Code.

8. That the permittee has violated any applicable state or local law or regulation.

9. That the use is being exercised in such a way as to be detrimental to the public health , safety, or welfare, or in such a manner as to constitute a nuisance.

10. That the use for which approval was granted has ceased to exist or has been suspended for a period in excess of six months.

B. Revocation of a cannabis conditional use permit shall be processed in accordance with the procedures set forth in Ceres Municipal Code chapter 18.30.

C. Upon revocation of a cannabis conditional use permit, all cannabis operations on the premises shall immediately cease, and the permittee shall comply with all closure and inventory disposal requirements under this code and state law and regulations.

18.44.060 Conditions of approval for cannabis conditional use permit.

Upon approval of a cannabis conditional use permit, the Planning Commission may impose conditions in excess of the requirements set forth in this chapter.

18.44.070 General conditions.

A. Permittee shall not operate without a valid cannabis conditional use permit, nor shall a permittee operate if its cannabis conditional use permit has been revoked, suspended, or otherwise rendered invalid.

B. Permittee shall not operate in violation of the conditions of its cannabis conditional use permit.

ITEM 11a & 11b

ATTACHMENT B
4932-8960-9881, v. 2
C. Permittee shall obtain and maintain a valid development agreement. Any breach or default of permittee’s development agreement or revocation of the development agreement shall be grounds for revocation of a cannabis conditional use permit.

D. Permittee shall obtain and maintain a valid City business license.

E. Permittee shall comply with all state and local laws and regulations.

F. Permittee shall timely pay the applicable taxes pursuant to state and local laws.

G. Permittee shall not make any operational changes to its cannabis business operations without an approved amendment to its conditional use permit.

H. A cannabis conditional use permit may be issued prior to an applicant having received all required state licenses; however, no cannabis business shall receive a certificate of occupancy nor operate in the City prior to possessing the required state and local licenses and permits.

18.44.080 Premises conditions.

A. The premises must be fully compliant with all applicable federal, state, and local laws and regulations.

B. Permittee’s operations shall be conducted within fully enclosed buildings.

Operations, including storage and cultivation of cannabis, shall not be visible from the exterior of any building.

C. The premises shall not be located within a 1000-foot radius of any park, day care center, youth center or public or private school providing instruction to pre - kindergarten, kindergarten, or grades 1 -12. The distance specified in this subsection shall be the horizontal distance measured in a straight line without regard to intervening structures, from the property line of the lot on which the cannabis business is located to the nearest property line of those uses described in this subsection.

D. Permittee shall not establish, operate, or maintain any cannabis business within a temporary structure on the premises.

E. No person shall sell, dispense, or consume alcoholic beverages or tobacco products on the premises.

F. No person shall consume cannabis or cannabis products on the premises.

G. Permittee shall take all necessary and reasonable steps to discourage and prevent unlawful or disorderly conduct, including loitering, from occurring on the premises and in the immediate area surrounding the premises during business hours and after closing.

H. The premises shall comply with a site plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved site plan constitutes a violation of its cannabis conditional use permit.

ITEM 11a & 11b

ATTACHMENT B
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18.44.090 Security conditions.

A. All entrances and exits to buildings on the premises shall be secured with commercial locks or similar measures to prevent unauthorized entry.

B. Permittee’s shall have a digital video surveillance system monitoring all entrances, exits, cannabis cultivation and processing rooms, cannabis point of sale rooms, limited access rooms and security rooms on the premises.

1. Surveillance cameras shall record continuously, 24 hours a day.

2. Surveillance cameras must provide sufficient resolution and color fidelity to identify individuals on the premises.

3. Surveillance recordings shall be maintained for a minimum of ninety (90) days, stored in such a way that protects the recordings from tampering or theft, and be made available to the City upon request.

C. Permittees shall ensure a licensed alarm company operator installs, maintains, monitors, and responds to the alarm system.

1. Upon request, p ermittee shall make available to the City all information related to the alarm system, monitoring, and alarm activity.

D. Permittee must store all cannabis, cannabis products, and cannabis waste in locked and secure areas.

E. The City may impose additional site -specific security conditions on permittee as necessary to protect public health and safety or to address unique risks associated with the location or type of cannabis operation.

F. Permittee shall comply with the security plan approved or conditionally approved as part of its Cannabis Conditional Use Permit. Permittee’s noncompliance with its approved or conditionally approved security plan constitutes a violation of its cannabis conditional use permit.

G. The City Manager, Chief of Police or other designated City official may require updates or revisions to a Permittee’s Security Plan at any time based on operational changes, observed risks, or complaints.

18.44.100 Signage conditions.

A. Permittee’s signage shall comply with the sign standards set forth by state law and regulation and by this Code.

B. Offsite and temporary signs are prohibited.

C. Permittee’s signs shall be approved by the Director of Community Development prior to installation . Changes or modifications to signage require prior written approval from the Director of Community Development.

18.44.110 Cannabis waste conditions.

A. Permittee shall secure all cannabis waste in locked designated areas within the premises until properly disposed of in compliance with state law.

ITEM 11a & 11b

ATTACHMENT B
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B. Permittee shall maintain records of all cannabis waste disposal activities, including quantities, dates, and responsible parties. Records shall be made available to the City upon request.

C. Permittee shall comply with the cannabis waste plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved cannabis waste plan constitutes a violation of its cannabis conditional use permit.

18.44.120 Odor control conditions.

A. Permittee shall install and maintain an odor control system designed to prevent cannabis odors from escaping the interior of the facility. Cannabis odors shall not be detectable at the exterior of the premises or within adjacent properties.

B. Odors from Permittee ’s premises may not unreasonably impact adjacent properties or public areas, consistent with state law and regulation and local nuisance standards.

C. Permittee shall comply with the odor control plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved odor control plan constitutes a violation of its cannabis conditional use permit.

18.44.130 Cultivation conditions.

A. This section is only applicable to permittees granted a cannabis conditional use permit for a cannabis cultivation business.

B. Outdoor commercial cannabis cultivation is prohibited.

C. Permittee shall only perform cultivation methods authorized by its cannabis conditional use permit. Any additional cultivation methods may only be conducted with an amendment to a cannabis conditional use permit.

D. Permittee shall obtain and maintain a valid Industrial Waste Discharge Permit issued by the City pursuant to chapter 13.19 of this Code. Permittee shall comply with all requirements of its Industrial Sewage Permit.

E. If applicable, Permittee shall register with the Stanislaus County Department of Hazardous Materials Division. Permittee shall comply with all requirements imposed by the Stanislaus County Department of Hazardous Materials Division.

F. Permittee shall comply with all fire, building, and electrical codes, including specific requirements for flammable solvents, pressurized gases, and chemical storage.

G. Permittee must obtain and maintain fire safety approval from the City Fire Chief.

H. Operations shall not create a public or private nuisance, including, but not limited to, noise, odor, lighting, or pest management impacts on neighboring properties.

I. Permittee shall comply with the cannabis cultivation plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved cannabis cultivation plan constitutes a violation of its cannabis conditional use permit.

ITEM 11a & 11b

ATTACHMENT B
4932-8960-9881, v. 2

18.44.140 Manufacturing conditions.

A. This section is only applicable to permittees granted a cannabis conditional use permit for a cannabis manufacturing business.

B. Permittee shall only perform manufacturing methods authorized by its cannabis conditional use permit. Any additional manufacturing methods may only be conducted with an amendment to a cannabis conditional use permit.

C. Permittee shall obtain and maintain a valid Industrial Waste Discharge Permit issued by the City pursuant to Chapter 13.19 of this Code. Permittee shall comply with all requirements of its Industrial Sewage Permit.

D. If applicable, Permittee shall register with the Stanislaus County Department of Hazardous Materials Division. Permittee shall comply with all requirements imposed by the Stanislaus County Department of Hazardous Materials Division.

E. Permittee shall comply with all fire, building, and electrical codes, including specific requirements for flammable solvents, pressurized gases, and chemical storage.

F. Permittee must obtain and maintain fire safety approval from the City Fire Chief.

G. Permittee shall obtain and maintain any required clearance from the County Department of Health prior to commencing operations.

H. Permittee shall comply with the cannabis manufacturing plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved cannabis manufacturing plan constitutes a violation of its cannabis conditional use permit.

18.44.150 Cannabis delivery.

A. Cannabis delivery is permitted only as an accessory use to a permitted cannabis dispensary, subject to approval of a cannabis conditional use permit issued pursuant to this chapter.

B. All cannabis delivery shall originate and be dispatched from the premises identified and approved under a cannabis conditional use permit.

C. Prior to providing cannabis or cannabis products to a delivery customer, the Permittee shall confirm the identity and age of the delivery customer as required under State law and shall secure a written or electronic signature of the delivery customer before completing the sale.

18.44.160 Insurance conditions.

Permittee shall maintain insurance in the amounts and of the types that are acceptable to the City Manager. The City shall be named as additional insured on all City-required insurance policies.

18.44.170 Severability.

Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of th is chapter or the ITEM 11a & 11b

ATTACHMENT B
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application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.

SECTION 2. Section 18.02.010, Definitions and interpretive provisions, of Chapter 2, Definitions, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to add the definition of “Cannabis business” as follows:

18.02.010 - Definitions and interpretive provisions.

For the purpose of carrying out the provisions and intent of this title, words, phrases, and terms shall be deemed to have the meanings ascribed to them and shall be interpreted to have the standards and include the parts, elements and the features set for th in this chapter. When not inconsistent with the context, words used in the present tense include the future; words in the singular number include the plural; words in the plural number include the singular. The word "shall" is mandatory, and the word "may" is permissive. …
Cannabis business: any person or entity that engages in the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a state license, including medicinal cannabis or med icinal cannabis product as defined in section 26001 of the Business and Professions Code.

SECTION 3 . Section 18.13.020, General Provision, of Chapter 13 - P-C, Planned Community Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to add subdivision (L) as follows:

The following general provisions shall apply to all P -C zones:
…
L. Cannabis businesses shall be permitted in any P -C zone subject to a cannabis conditional use permit as provided for in chapter 18.4 4 of this title.

SECTION 4. Section 18.16.040, Conditional uses, of Chapter 16 - C-2, Community Commercial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (M) as follows:

18.16.040 – Conditional Uses
The following uses may be permitted in the C -2 zone subject to a conditional use permit as provided for in chapter 18.30 or 18.44 of this title. …
M. Cannabis businesses
SECTION 5. Section 18.17.040, Conditional uses, of Chapter 17 - C-3, Wholesale Commercial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (L) as follows:

ITEM 11a & 11b

ATTACHMENT B
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18.17.040 – Conditional Uses
The following uses may be permitted in the C -3 zone subject to a conditional use permit as provided for in chapter 18.30 or 18.44 of this title. …
L. Cannabis businesses
SECTION 6. Section 18.18.040, Conditional uses, of Chapter 18 - H-1, Highway Commercial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (E) as follows:

18.18.040 – Conditional Uses
The following uses may be permitted in the H -3 zone subject to a conditional use permit as provided for in chapter 18.30 or 18.44 of this title. …
E. Cannabis businesses
SECTION 7. Section 18.19.040, Conditional uses, of Chapter 19 - M-1, Light Industrial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (L) as follows:

18.19.040 – Conditional Uses
The following uses may be permitted in the M-1 zone subject to a conditional use permit as provided for in chapter 18.30 or 18.44 of this title. …
L. Cannabis businesses
SECTION 8. Section 18.20.040, Conditional uses, of Chapter 20 - M-2, General Industrial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (T) as follows:

18.20.040 – Conditional Uses
The following uses may be permitted in the M-2 zone subject to a conditional use permit as provided for in chapter 18.30 or 18.44 of this title. …
T. Cannabis businesses
SECTION 9. Severability. If any section, subdivision, sentence, clause, phrase or portion of this ordinance is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof and shall continue to be in full force and effect.

ITEM 11a & 11b

ATTACHMENT B
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SECTION 10. Effective Date and Publication. This Ordinance shall become effective thirty (30) days from and after its final passage and adoption, provided it is published in a newspaper of general circulation at least within fifteen (15) days after its passage or a summary of the Ordinance is published in a newspaper of general circulation at least five (5) days prior to adoption and again at least within fifteen (15) days after its passage.

This Ordinance was introduced at a regular meeting of the City Council held on the 23rd day of March 2026, and passed and adopted as Ordinance No. 2026-XXXX at a regular meeting of City Council held on the 13th of April 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

APPROVED:
________________________________
Javier Lopez, Mayor
ATTEST:
______________________________
Fallon Martin, City Clerk
APPROVED AS TO FORM:
______________________________
Nubia I. Goldstein, City Attorney
ITEM 11a & 11b

ATTACHMENT C
Section 5.03.010, General, of Chapter 3, General Permit Procedure, of Title 5, Business Licenses and Regulations, of the Ceres Municipal Code shall be amended to remove subsection 16, Commercial cannabis businesses, and move 17, Sidewalk vending, to 16 of Paragraph (A) as follows:

5.03.010 – General.

A. Certain activities in the City require permits issued by the City Manager or designee.

The following activities require a permit issued by the City:

1. Patrol services;

2. Motion picture and television production;

3. Alcoholic beverages;

4. Junk dealers and scrap metal recyclers;

5. Special events and temporary street closures;

6. Public dances, dancing places, and concerts;

7. Fortunetelling;

8. Taxicabs;

9. Adult entertainment businesses;

10. Garage sales;

11.Massage establishments;

12. Mobile food vendor;

13. Bingo;

14. Firework sales;

15. Ambulances;

16. Commercial cannabis businesses.
1716. Sidewalk vending
B. All requirements of this chapter are in addition to the requirements of chapters 5.06 through 5.24.

Chapter 5.22, Cannabis Pilot Program, of Title 5, Business Licenses and Regulations, of the Ceres Municipal Code shall be repealed in its entirety and replaced with a new Chapter 5.22, Cannabis Business Regulations, which shall read as follows:

5.22.010 - Declaration of purpose.

A. The City finds and declares that the purpose of this chapter is to regulate all commercial cannabis activity in the City of Ceres, to the extent authorized by state law and in a manner designed to minimize negative impacts on the City, and to promote the health, safety, morals, and general welfare of residents and businesses within the City.

ITEM 11a & 11b

ATTACHMENT C
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B. It is the purpose and intent of the City Council to implement state law by regulating cannabis businesses and to ensure that commercial cannabis activity does not result in the diversion of cannabis for illicit purposes.

C. The regulations in this chapter do not interfere with a qualified patient's right to obtain and use cannabis as authorized under state law, nor do they criminalize the possession or cultivation of cannabis by qualified patients or their primary caregivers. Cannabis businesses shall comply with all provisions of the Ceres Municipal Code, state law, and all other applicable local and state regulations. It is neither the intent nor the effect of this chapter to condone or legitimize the illegal use, consumption, or cultivation of cannabis under federal, state, or local law.

5.22.020 - Definitions.

Adult Use of Marijuana Act or AUMA has the same meaning as Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act approved by California voters at the November 8, 2016, election, and any applicable rules and regulations promulgated thereafter.

Business means a profession, trade, occupation, gainful activity, and all and every kind of calling whether or not carried on for profit.

City Manager shall mean the Ceres City Manager or designee.

Commercial cannabis activity includes the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a state license, including medicinal cannabis or medicinal cannabis product as defined in section 26001 of the Business and Professions Code.

Cannabis business shall mean any person or business that engages in commercial cannabis activity.

Cannabis business permit shall mean any permit issued to a cannabis business pursuant to the provisions of this chapter.

Cannabis Business Pilot Program shall mean the City's permitting process and procedures pursuant to the provisions of this chapter for the purpose of determining and evaluating the feasibility and desirability of regulating multiple cannabis businesses within City limits.

Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

Medicinal and Adult -Use Cannabis Regulation and Safety Act or MAUCRSA has the same meaning as chapter 1 (commencing with section 26000) of division 10 of the California Business and Professions Code, and any applicable rules and regulations promulgated thereafter.

Primary caregiver shall have the same meaning as set forth in California Health and Safety Code section 11362.7(d).

ITEM 11a & 11b

ATTACHMENT C
4921-8683-5609, v. 1
Qualified patient shall have the same meaning as set forth in California Health and Safety Code section 11362.7(f).

5.22.030 - Cannabis business pilot program.

A. Cannabis businesses shall only be permitted to operate in the City following application, investigation, verification, approval, and issuance of a development agreement approved by the City Council, and a cannabis business permit issued by the City in accordance with the criteria and procedures set forth in this chapter.

No land use entitlement, permit (including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a cannabis business shall be granted or permitted unless it complies with the provisions of the Ceres Municipal Code.

B. All persons who are engaged in or who are attempting to engage in commercial cannabis activity in any form shall do so only in strict compliance with the terms, conditions, limitations and restrictions of this chapter, AUMA, and MAUCRSA, as it applies, the provisions of the Ceres Municipal Code, as may be amended from time to time, and all other applicable state and local laws and regulations.

C. The City Manager is authorized to make policies and procedures consistent with the intent of this chapter concerning the applications, the application process, the information required of an applicant, the application procedures, and the administration an d procedures to be used and followed in the application and hearing process.

5.22.040 - All state and local licenses and permits required.

A. No cannabis business shall operate unless it is in possession of all applicable state and local licenses and permits.

B. Every cannabis business shall submit to the City Manager a copy of any and all of its state and local licenses and permits required for its operation.

C. If any other applicable state or local license or permit required for a cannabis business' operation is denied, suspended, modified, revoked, or expired, the cannabis business shall notify the City Manager in writing within ten days of such denial, suspension, modification, revocation, or expiration.

5.22.050 - Permits not transferable.

Cannabis business permits issued pursuant to this chapter are not property and have no value. Cannabis business permits may not be transferred, sold, assigned or bequeathed expressly or by operation of law. Any attempt to directly or indirectly transfer a cannabis business permit shall be unlawful and void, and shall automatically revoke the permit. • 5.22.060 - Development agreement.

A. Prior to operating in the City, and as a condition of issuance of any applicable permits, including, but not limited to, a cannabis business permit, the applicant seeking to operate a cannabis business shall enter into a development agreement ITEM 11a & 11b

ATTACHMENT C
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with the City setting forth the terms and conditions under which the cannabis business will operate. Such development agreement shall be in addition to the requirements of this chapter, including, but not limited to, public outreach and education, communit y service, payment of fees and other charges as mutually agreed upon, approval of architectural plans (including site plan, floor plan, and elevation), and such other terms and conditions that will protect and promote the public health, safety, and welfare of all persons in the City.

B. Every development agreement approved by the City pursuant to this chapter shall be subject to an annual review by the City Council to determine compliance with the terms of the development agreement, applicable local and state laws and regulations, this c hapter, and the Ceres Municipal Code. The City Council may from time to time determine whether to allow additional cannabis businesses as part of the Cannabis Business Pilot Program.

5.22.070 - Nonconforming use.

Any cannabis business established or operating in the City in violation of this chapter shall not be considered a lawful or permitted nonconforming use, and no such cannabis business shall be eligible for issuance of any permits or approvals under the Cere s Municipal Code. Further, any such unlawfully established cannabis business shall constitute a public nuisance subject to abatement by the City.

5.22.080 - Outdoor cultivation of cannabis prohibited.

A. A cannabis business shall only be allowed to cultivate cannabis within a fully enclosed building.

B. A cannabis business shall not cultivate cannabis outdoors.

C. The outdoor cultivation of cannabis, as defined in California Business and Professions Code section 26001, is strictly prohibited on all agricultural, residential, commercial, and industrial zoned properties.

5.22.090 - Relationship to other laws.

Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in chapter 1 (commencing with section 26000) of division 10 of the California Business and Professions Code, or its successors. In the event of any conflict between the provisions of this chapter and the provisions of that chapter or any other applicable state or local law, the more restrictive provision shall control.

5.22.100 - Statewide regulation.

This chapter, and the provisions herein, shall be read consistent with any statewide regulation of cannabis that is promulgated by the legislature or by voter approval.

5.22.110 - Severability.

Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise ITEM 11a & 11b

ATTACHMENT C
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void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.

Chapter 5.22

CANNABIS BUSINESS REGULATIONS
Sections:

5.22.010 Declaration of purpose.

5.22.020 Definitions.

5.22.030 State requirements.

5.22.040 Required local approvals.

5.22.050 Cannabis business application.

5.22.060 Investigation and fingerprinting of applicant.

5.22.070 Development agreement.

5.22.080 Revocation of development agreement.

5.22.090 Cannabis business tax.

5.22.100 Operational requirements.

5.22.110 Limit on number of cannabis dispensaries.

5.22.120 Inspections.

5.22.130 Enforcement.

5.22.140 Public nuisance.

5.22.150 Cost recovery.

5.22.160 Nonconforming use.

5.22.170 Relationship to other laws.

5.22.180 Severability.

5.22.010 Declaration of Purpose.

A. The City finds and declares that the purpose of this chapter is to regulate all commercial cannabis activity in the City of Ceres, to the extent authorized by state law and in a manner designed to minimize negative impacts on the City, and to promote the h ealth, safety, morals, and general welfare of residents and businesses within the City.

B. It is the purpose and intent of the City Council to implement state law by regulating cannabis businesses and to ensure that commercial cannabis activity does not result in the diversion of cannabis for illicit purposes.

C. Cannabis businesses shall comply with all provisions of the Ceres Municipal Code, state law, and all other applicable local and state regulations. It is neither the intent nor the effect of this chapter to condone or legitimize the illegal use, consumption, or cultivation of cannabis under federal, state, or local law.

D. The regulations in this chapter do not interfere with a qualified patient's right to obtain and use cannabis as authorized under state law, nor do they criminalize the ITEM 11a & 11b

ATTACHMENT C
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possession or cultivation of cannabis by qualified patients or their primary caregivers.

5.22.020 Definitions.

Abatement costs shall include the actual and reasonable costs incurred by the City to abate a public nuisance. These costs include all direct and indirect costs to the City that result from the total abatement action, including, but not limited to, investigation costs, costs to enforce the Ceres Municipal Code and any applicable State, County or local law, clerical and administrative costs to process paperwork, costs incurred to provide notices and prepare for and conduct administrative appeal hearings, and costs to conduct actual abatement of the nuisance. Costs include personnel costs, administrative overhead, costs for equipment such as cameras and vehicles, staff time to hire a contractor, and reasonable attorneys’ fees incurred by City.

Applicant shall mean a person that files an application to operate a cannabis business pursuant to this code.

Business means a profession, trade, occupation, gainful activity, and all and every kind of calling whether or not carried on for profit.

Cannabis shall mean all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. “Cannabis” does not mean “industrial hemp” as defined by Cal. Health & Safety Code § 11018.5.

Commercial cannabis activity includes the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a state license, including medicinal cannabis or medicinal cannabis product as defined in section 26001 of the Business and Professions Code.

Cannabis business shall mean any person or business that engages in commercial cannabis activity.

Cannabis Business Tax shall mean the tax imposed on all commercial cannabis businesses pursuant to Ceres Municipal Code chapter 3.26.

Cannabis conditional use permit shall mean a conditional use permit issued to a cannabis business pursuant to Ceres Municipal Code chapter 18.44.

ITEM 11a & 11b

ATTACHMENT C
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Cannabis delivery or cannabis deliveries shall mean the sale of cannabis and cannabis products by delivery to a customer pursuant to a Type 10 State cannabis license. “Cannabis delivery” does not mean the transfer or sale of cannabis or cannabis products between two cannabis businesses.

Cannabis dispensary shall mean a business at a particular location or real property involving the distribution of cannabis to qualified patients, primary caregivers, persons with identification cards, or customers pursuant to a Type 10 State cannabis license that is consistent with State law and this chapter.

Cannabis manufacturing business shall mean any cannabis business that, pursuant to a Type 6, Type 7, or Type 12 State cannabis license, manufactures cannabis or cannabis products.

Cannabis product shall mean cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

City business license shall mean a business license issued by the City pursuant to Ceres Municipal Code Title 5.

City Manager shall mean the Ceres City Manager or their designee.

Cultivation shall mean any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

Customer shall mean natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physician's recommendation, or a primary caregiver who purchases or otherwise lawfully obtains cannabis or cannabis products from a licensed cannabis business for personal use, whether for medicinal or adult-use purposes, and not for resale.

Medicinal and Adult -Use Cannabis Regulation and Safety Act or MAUCRSA has the same meaning as chapter 1 (commencing with section 26000) of division 10 of the California Business and Professions Code, and any applicable rules and regulations promulgated thereafter.

Permittee shall mean any person or entity who has been granted a cannabis conditional use permit by the City authorizing the operation of a cannabis business, and who is operating or intends to operate such business in accordance with the terms and conditions of that permit.

Person shall mean an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.

ITEM 11a & 11b

ATTACHMENT C
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Primary caregiver shall have the same meaning as set forth in California Health and Safety Code section 11362.7(d).

Responsible party shall mean a person or entity responsible for creating, causing, committing, or maintaining any violation of this code or State, County, or local law.

Subject property shall mean the real property that is the subject of any abatement or enforcement action by the City for which the City incurred costs and seeks recovery under this code.

Qualified patient shall have the same meaning as set forth in California Health and Safety Code section 11362.7(f).

5.22 030 State requirements.

A. Any cannabis business that does not have the applicable state license is prohibited within the City.

B. Every cannabis business operating within the City shall:

1. Obtain and maintain all required licenses, permits, and approvals issued by the State of California or any applicable state regulatory agency, including, without limitation, licenses under the Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA).

2. Operate in full compliance with all applicable state laws, regulations, and guidelines governing cannabis businesses, including but not limited to cultivation, manufacturing, distribution, testing, and retail sales.

3. Immediately notify the City of any suspension, revocation, or other enforcement action taken by a state agency against the business’s license(s).

4. Cease operations if any required state license is suspended or revoked until such time as the license is reinstated.

C. This chapter, and the provisions herein, shall be read consistent with any statewide regulation of cannabis that is promulgated by the legislature or by voter approval.

5.22.040 Required local approvals.

A. No person or entity shall establish, operate, or continue to operate any cannabis business within the City without first obtaining and thereafter maintain in good standing each of the following approvals:

1. A valid development agreement.

2. A valid cannabis conditional use permit.

3. A valid City business license.

B. Each cannabis business shall continuously maintain all required approvals listed in subsection (A). The expiration, suspension, or revocation of any one of these approvals shall constitute grounds for suspension or revocation of the others and shall immedi ately require the cessation of all cannabis operations until such approvals are reinstated or reissued.

ITEM 11a & 11b

ATTACHMENT C
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C. The issuance of any approval under this Chapter does not create a vested right to continue operating a cannabis business and shall not limit the City’s authority to amend, suspend, or terminate such approvals as provided by law or the terms of the applicable approval.

5.22.050 Cannabis business application.

A. A person may apply to operate a cannabis business by filing a cannabis business application with the City Manager on a form provided by the City.

B. No cannabis business application shall be processed unless applicant pays the application fee in an amount to be established by resolution of the City Council.

C. No cannabis business application shall be processed unless applicant has entered into a funding agreement with the City to cover application processing costs and all other established costs payable to the City in connection with a cannabis business application.

D. No cannabis business application shall be process ed unless applicant has executed an indemnification agreement approved by the City Attorney.

E. Any proposed transfer of ownership of a cannabis business shall be submitted through a cannabis business application, together with all required fees and documentation. The transferee shall meet all eligibility requirements for a cannabis business under this chapter.

5.22.060 Investigation and fingerprinting of applicant.

A. Prior to the acceptance of applications for a license, transfer of ownership, or other approval as provided in this chapter, the following individuals shall authorize the Chief of Police to perform criminal background investigation by providing verified fingerprint information to the Ceres Police Department:

1. If the applicant is a natural person, that person.

2. If the applicant is a partnership, all of the partners.

3. If the applicant is a corporation, both the officers and directors, together with any person with an ownership interest of ten percent (10%) or more.

B. No cannabis business shall be permitted to operate in the City if the background investigation indicates disqualifying criminal history.

5.22.070 Development agreement.

A. No cannabis business shall commence or continue operations in the City without obtaining and maintaining a valid development agreement in full force and effect.

B. An applicant shall be eligible to enter into a development agreement upon completion of background investigation of all applicable individuals.

C. Development agreements shall be issued pursuant to Ceres Municipal Code chapter 18.37.

D. A development agreement may be approved prior to an applicant having received all required state licenses and local permits; however, no cannabis business shall ITEM 11a & 11b

ATTACHMENT C
4921-8683-5609, v. 1
receive a certificate of occupancy nor operate in the City prior to possessing the required state and local licenses and approvals.

E. Development agreements may not be transferred, sold, assigned or bequeathed expressly or by operation of law. Any attempt to directly or indirectly transfer a development agreement shall be unlawful and void and shall automatically revoke the permit.

F. Development agreements shall be periodically reviewed pursuant to Ceres Municipal Code section 18.37.180.

5.22.080 Termination of development agreement.

A. Termination of development agreements shall follow procedures provided by Ceres Municipal Code chapter 18.37.

B. Upon termination a development agreement, an operator’s cannabis conditional use permit and City business license shall be subject to revocation.

5.22.090 Cannabis business tax.

A. All cannabis businesses within the City are subject to the Cannabis Business Tax established by Ceres Municipal Code chapter 3.26.

B. A cannabis business’ failure to pay the Cannabis Business Tax constitutes grounds for revocation of its development agreement, cannabis conditional use permit or City business license.

5.22.100 Operational requirements.

A. Cannabis business operations shall comply with all applicable state and local laws and regulations.

B. Cannabis business operations shall comply with the conditions of approval of their cannabis conditional use permit.

C. A cannabis business shall immediately cease operations upon revocation of its development agreement, cannabis conditional use permit, or City business license and operator shall comply with all closure and inventory disposal requirements under this code and state and local law and regulations.

5.22.110 Limit on number of cannabis dispensaries.

A. The total number of licensed cannabis dispensaries operating within the city shall not exceed four (4) at any given time.

Alternative
A. The total number of licensed cannabis dispensaries operating within the city shall not exceed two (2) at any given time.

B. If the maximum number of cannabis dispensaries is reached, no additional cannabis dispensaries shall be issued a development agreement or cannabis conditional use permit until an existing cannabis dispensary’s development ITEM 11a & 11b

ATTACHMENT C
4921-8683-5609, v. 1
agreement and cannabis conditional use permit is voluntarily surrendered, revoked, or otherwise terminated.

5.22.120 Inspections.

A. The City Manager and any authorized City official shall have the right to enter the premises of any cannabis business, during regular business hours or at any other reasonable time, to inspect the premises and business records to ensure compliance with this code, any conditions of approval, and state and local law and regulations.

5.22.130 Enforcement.

A. Violation of any condition of approval of a cannabis conditional use permit shall constitute a violation of this chapter.

B. Violations of this chapter are subject to administrative remedies provided by Ceres Municipal Code chapter 19.10.

C. The amount of fine imposed for violation of this chapter shall not exceed:
a. Schedule 1. Five Hundred Dollars ($500) for a first violation. b. Schedule 2. Seven hundred and Fifty Dollars ($750) for a second violation of the same code section within one (1) year.
c. Schedule 3. One Thousand Dollars ($1,000) for each additional violation of the same code section within one (1) year.

D. Each violation of this chapter, or of any condition of approval of a cannabis conditional use permit, shall constitute a separate offense.

E. Any permittee whose cannabis conditional use permit, development agreement, or City business license is revoked shall immediately cease all cannabis -related operations within the City.

F. In addition to any other remedy, the City may seek injunctive relief and may recover costs of enforcement, including attorneys’ fees.

G. The remedies provided herein are cumulative and in addition to any other remedies available under law.

5.22.140 Public nuisance.

A. Any commercial cannabis use or activity caused or permitted to exist in the City in violation of any provision of this chapter shall be and is hereby declared a public nuisance and may be abated by the City pursuant to the procedures provided by Ceres Municipal Code chapter 19.07.

B. The remedies provided in this section are cumulative and do not limit the City’s authority to pursue all other remedies available under law.

5.22.150 Cost recovery.

A. The City shall be entitled to recover its abatement and enforcement costs incurred in obtaining compliance with this code. Costs incurred by the City are recoverable ITEM 11a & 11b

ATTACHMENT C
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even if a public nuisance or violation of this code, the Ceres Municipal Code, or state law or regulation is corrected by the property owner or other responsible party.

B. The cost of abating a public nuisance or enforcing this code shall either be a special assessment and lien on the subject property or the personal obligation of the owner of the subject property or the responsible party. If there is more than one (1) responsible party, each party shall be jointly and severally liable for the costs.

5.22.160 Nonconforming use.

Any cannabis business established or operating in the City in violation of this chapter shall not be considered a lawful or permitted nonconforming use, and no such cannabis business shall be eligible for issuance of any permits or approvals under the Cere s Municipal Code. Further, any such unlawfully established cannabis business shall constitute a public nuisance subject to abatement by the City.

5.22.170 Relationship to other laws.

Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in chapter 1 (commencing with section 26000) of division 10 of the California Business and Professions Code, or its successors. In the event of any conflict between the provisions of this chapter and the provisions of that chapter or any other applicable state or local law, the more restrictive provision shall control.

5.22.180 Severability.

Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of th is chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.

ITEM 11a & 11b

ATTACHMENT D
Chapter 44, Cannabis Conditional Use Permits, shall be added to of Title 18, Zoning, of the Ceres Municipal Code which shall read as follows:

Chapter 18.44 - CANNABIS CONDITIONAL USE PERMITS
Sections:

18.44.010 Definitions.

18.44.020 Cannabis conditional use permit required.

18.44.030 Cannabis conditional use permit application.

18.44.040 Cannabis conditional use permit procedure.

18.44.050 Revocation of cannabis conditional use permit.

18.44.060 Conditions of approval for cannabis conditional use permit.

18.44.070 General conditions.

18.44.080 Premises conditions.

18.44.090 Security conditions.

18.44.100 Signage conditions.

18.44.110 Cannabis waste conditions.

18.44.120 Odor control conditions.

18.44.130 Cultivation conditions.

18.44.140 Manufacturing conditions.

18.44.150 Cannabis delivery conditions.

18.44.160 Insurance conditions.

18.44.170 Severability.

18.44.010 Definitions.

Applicant: a person that files an application for a cannabis conditional use pursuant to this chapter.

Cannabis: all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivativ e, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or c ake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of ger mination. “Cannabis” does not mean “industrial hemp” as defined by Cal. Health & Safety Code § 11018.5.

Cannabis business: any person or entity that engages in commercial cannabis activity.

ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1
Cannabis business tax: the tax imposed by the City on persons engaged in a cannabis business pursuant to Ceres Municipal Code chapter 3.26.

Cannabis conditional use permit: a conditional use permit issued to a cannabis business pursuant to this chapter.

Cannabis cultivation business : any business engaged in commercial cannabis activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

Cannabis delivery: the sale of cannabis and cannabis products by delivery to a customer pursuant to a Type 10 State cannabis license. “Cannabis delivery” does not mean the transfer or sale of cannabis or cannabis products between two cannabis businesses.

Cannabis dispensary : a business at a particular location involving the distribution of cannabis to customers pursuant to a Type 10 State cannabis license that is consistent with State law and this chapter.

Cannabis manufacturing business: a business engaged in commercial cannabis activity involving compounding, blending, extracting, infusing, packaging, labeling, or otherwise making or preparing a cannabis product.

Cannabis product: cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

Cannabis waste: waste that is cannabis or cannabis product that has been discarded, destroyed, or is no longer usable or saleable, including plant material, trimmings, extracts, infused products, packaging containing cannabis residue, or other materials contaminated with cannabis.

City Manager: the Ceres City manager or their designee.

City business License: a business license issued by the City pursuant to Ceres Municipal Code chapter 5.02.

Commercial cannabis activity : the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a state license, including medicinal cannabis or medicinal cannabis product as defined in section 26001 of the Business and Professions Code.

Customer: natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physician's recommendation, or a primary caregiver who purchases or otherwise lawfully obtains cannabis or cannabis products from a licensed ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1
cannabis business for personal use, whether for medicinal or adult-use purposes, and not for resale.

Permittee: any person, business, or entity that has been issued a cannabis conditional use permit by the City under this chapter, and includes the permit holder’s agents, employees, successors, and assigns acting within the scope of the permit.

Premises: the land, buildings, structures, and any other improvements or facilities occupied, used, or intended to be used by a permittee for the operation of a cannabis business.

Person: an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.

Temporary structure shall mean a structure that is erected or placed on a lot for a limited and specified period, not intended for permanent occupancy, and removed upon expiration of the approved time period.

18.44.020 Cannabis conditional use permit required.

A. No cannabis business shall operate in the City unless it has first obtained and continues to maintain compliance with all of the following:

1. All applicable state licenses and permits.

2. A cannabis conditional use permit.

3. A validly executed development agreement.

4. A City business license.

B. Any cannabis business that fails to satisfy any of the requirements in subsection (A) shall immediately cease operations and shall not resume operations until that cannabis business is in full compliance with all applicable requirements.

18.44.030 Cannabis conditional use permit application.

A. An applicant shall file the following information with the City at the time of application for a cannabis conditional use permit:

1. A completed cannabis business application.

2. Completed background checks of all applicable individuals pursuant to Ceres Municipal Code section 5.22.060.

3. Any additional information required by the City Manager.

B. No cannabis conditional use permit application shall be processed unless the applicant pays the application fee in an amount to be established by resolution of the City Council.

18.44.040 Cannabis conditional use permit procedure.

ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1
A. A cannabis conditional use permit shall be processed in accordance with the procedures set forth in Ceres Municipal Code chapter 18.30.

B. A permittee seeking to amend the conditions of approval of its cannabis conditional use permit shall submit a written request to the City Manager and pay applicable processing fees. Amendments that do not substantially change the type or scope of use may be approved by the City Manager. All other amendments shall require a public hearing and Planning Commission approval.

18.44.050 Revocation of cannabis conditional use permit.

A. A cannabis conditional use permit may be revoked based on certain findings, including but not limited to if any of the following:

1. That the permittee has violated any condition of approval of its cannabis conditional use permit.

2. That the permittee has violated any term or condition of its development agreement.

3. That the permittee’s development agreement has been revoked, terminated, or otherwise rendered invalid.

4. That the permittee’s City business license has been revoked, suspended, or otherwise rendered invalid.

5. That the permittee has failed to pay any applicable cannabis business tax.

6. That the permittee’s applicable state license has been revoked, suspended, or otherwise rendered invalid.

7. That the permittee has violated any provision of the Ceres Municipal Code.

8. That the permittee has violated any applicable state or local law or regulation.

9. That the use is being exercised in such a way as to be detrimental to the public health , safety, or welfare, or in such a manner as to constitute a nuisance.

10. That the use for which approval was granted has ceased to exist or has been suspended for a period in excess of six months.

B. Revocation of a cannabis conditional use permit shall be processed in accordance with the procedures set forth in Ceres Municipal Code chapter 18.30.

C. Upon revocation of a cannabis conditional use permit, all cannabis operations on the premises shall immediately cease, and the permittee shall comply with all closure and inventory disposal requirements under this code and state law and regulations.

18.44.060 Conditions of approval for cannabis conditional use permit.

Upon approval of a cannabis conditional use permit, the Planning Commission may impose conditions in excess of the requirements set forth in this chapter.

ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1

18.44.070 General conditions.

A. Permittee shall not operate without a valid cannabis conditional use permit, nor shall a permittee operate if its cannabis conditional use permit has been revoked, suspended, or otherwise rendered invalid.

B. Permittee shall not operate in violation of the conditions of its cannabis conditional use permit.

C. Permittee shall obtain and maintain a valid development agreement. Any breach or default of permittee’s development agreement or revocation of the development agreement shall be grounds for revocation of a cannabis conditional use permit.

D. Permittee shall obtain and maintain a valid City business license.

E. Permittee shall comply with all state and local laws and regulations.

F. Permittee shall timely pay the applicable taxes pursuant to state and local laws.

G. Permittee shall not make any operational changes to its cannabis business operations without an approved amendment to its conditional use permit.

H. A cannabis conditional use permit may be issued prior to an applicant having received all required state licenses; however, no cannabis business shall receive a certificate of occupancy nor operate in the City prior to possessing the required state and local licenses and permits.

18.44.080 Premises conditions.

A. The premises must be fully compliant with all applicable federal, state, and local laws and regulations.

B. Permittee’s operations shall be conducted within fully enclosed buildings.

Operations, including storage and cultivation of cannabis, shall not be visible from the exterior of any building.

C. The premises shall not be located within a 1000-foot radius of any park, day care center, youth center or public or private school providing instruction to pre - kindergarten, kindergarten, or grades 1 -12. The distance specified in this subsection shall be the horizontal distance measured in a straight line without regard to intervening structures, from the property line of the lot on which the cannabis business is located to the nearest property line of those uses described in this subsection.

D. Permittee shall not establish, operate, or maintain any cannabis business within a temporary structure on the premises.

E. No person shall sell, dispense, or consume alcoholic beverages or tobacco products on the premises.

F. No person shall consume cannabis or cannabis products on the premises.

G. Permittee shall take all necessary and reasonable steps to discourage and prevent unlawful or disorderly conduct, including loitering, from occurring on the premises ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1
and in the immediate area surrounding the premises during business hours and after closing.

H. The premises shall comply with a site plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved site plan constitutes a violation of its cannabis conditional use permit.

18.44.090 Security conditions.

A. All entrances and exits to buildings on the premises shall be secured with commercial locks or similar measures to prevent unauthorized entry.

B. Permittee’s shall have a digital video surveillance system monitoring all entrances, exits, cannabis cultivation and processing rooms, cannabis point of sale rooms, limited access rooms and security rooms on the premises.

1. Surveillance cameras shall record continuously, 24 hours a day.

2. Surveillance cameras must provide sufficient resolution and color fidelity to identify individuals on the premises.

3. Surveillance recordings shall be maintained for a minimum of ninety (90) days, stored in such a way that protects the recordings from tampering or theft, and be made available to the City upon request.

C. Permittees shall ensure a licensed alarm company operator installs, maintains, monitors, and responds to the alarm system.

1. Upon request, p ermittee shall make available to the City all information related to the alarm system, monitoring, and alarm activity.

D. Permittee must store all cannabis, cannabis products, and cannabis waste in locked and secure areas.

E. The City may impose additional site -specific security conditions on permittee as necessary to protect public health and safety or to address unique risks associated with the location or type of cannabis operation.

F. Permittee shall comply with the security plan approved or conditionally approved as part of its Cannabis Conditional Use Permit. Permittee’s noncompliance with its approved or conditionally approved security plan constitutes a violation of its cannabis conditional use permit.

G. The City Manager, Chief of Police or other designated City official may require updates or revisions to a Permittee’s Security Plan at any time based on operational changes, observed risks, or complaints.

18.44.100 Signage conditions.

A. Permittee’s signage shall comply with the sign standards set forth by state law and regulation and by this Code.

B. Offsite and temporary signs are prohibited.

ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1
C. Permittee’s signs shall be approved by the Director of Community Development prior to installation . Changes or modifications to signage require prior written approval from the Director of Community Development.

18.44.110 Cannabis waste conditions.

A. Permittee shall secure all cannabis waste in locked designated areas within the premises until properly disposed of in compliance with state law.

B. Permittee shall maintain records of all cannabis waste disposal activities, including quantities, dates, and responsible parties. Records shall be made available to the City upon request.

C. Permittee shall comply with the cannabis waste plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved cannabis waste plan constitutes a violation of its cannabis conditional use permit.

18.44.120 Odor control conditions.

A. Permittee shall install and maintain an odor control system designed to prevent cannabis odors from escaping the interior of the facility. Cannabis odors shall not be detectable at the exterior of the premises or within adjacent properties.

B. Odors from Permittee ’s premises may not unreasonably impact adjacent properties or public areas, consistent with state law and regulation and local nuisance standards.

C. Permittee shall comply with the odor control plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved odor control plan constitutes a violation of its cannabis conditional use permit.

18.44.130 Cultivation conditions.

A. This section is only applicable to permittees granted a cannabis conditional use permit for a cannabis cultivation business.

B. Outdoor commercial cannabis cultivation is prohibited.

C. Permittee shall only perform cultivation methods authorized by its cannabis conditional use permit. Any additional cultivation methods may only be conducted with an amendment to a cannabis conditional use permit.

D. Permittee shall obtain and maintain a valid Industrial Waste Discharge Permit issued by the City pursuant to chapter 13.19 of this Code. Permittee shall comply with all requirements of its Industrial Sewage Permit.

E. If applicable, Permittee shall register with the Stanislaus County Department of Hazardous Materials Division. Permittee shall comply with all requirements imposed by the Stanislaus County Department of Hazardous Materials Division.

ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1
F. Permittee shall comply with all fire, building, and electrical codes, including specific requirements for flammable solvents, pressurized gases, and chemical storage.

G. Permittee must obtain and maintain fire safety approval from the City Fire Chief.

H. Operations shall not create a public or private nuisance, including, but not limited to, noise, odor, lighting, or pest management impacts on neighboring properties.

I. Permittee shall comply with the cannabis cultivation plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved cannabis cultivation plan constitutes a violation of its cannabis conditional use permit.

18.44.140 Manufacturing conditions.

A. This section is only applicable to permittees granted a cannabis conditional use permit for a cannabis manufacturing business.

B. Permittee shall only perform manufacturing methods authorized by its cannabis conditional use permit. Any additional manufacturing methods may only be conducted with an amendment to a cannabis conditional use permit.

C. Permittee shall obtain and maintain a valid Industrial Waste Discharge Permit issued by the City pursuant to Chapter 13.19 of this Code. Permittee shall comply with all requirements of its Industrial Sewage Permit.

D. If applicable, Permittee shall register with the Stanislaus County Department of Hazardous Materials Division. Permittee shall comply with all requirements imposed by the Stanislaus County Department of Hazardous Materials Division.

E. Permittee shall comply with all fire, building, and electrical codes, including specific requirements for flammable solvents, pressurized gases, and chemical storage.

F. Permittee must obtain and maintain fire safety approval from the City Fire Chief.

G. Permittee shall obtain and maintain any required clearance from the County Department of Health prior to commencing operations.

H. Permittee shall comply with the cannabis manufacturing plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee’s noncompliance with its approved or conditionally approved cannabis manufacturing plan constitutes a violation of its cannabis conditional use permit.

18.44.150 Cannabis delivery.

A. Cannabis delivery is permitted only as an accessory use to a permitted cannabis dispensary, subject to approval of a cannabis conditional use permit issued pursuant to this chapter.

B. All cannabis delivery shall originate and be dispatched from the premises identified and approved under a cannabis conditional use permit.

C. Prior to providing cannabis or cannabis products to a delivery customer, the Permittee shall confirm the identity and age of the delivery customer as required ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1
under State law and shall secure a written or electronic signature of the delivery customer before completing the sale.

18.44.160 Insurance conditions.

Permittee shall maintain insurance in the amounts and of the types that are acceptable to the City Manager. The City shall be named as additional insured on all City-required insurance policies.

18.44.170 Severability.

Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of th is chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.

Section 18.02.010, Definitions and interpretive provisions, of Chapter 2, Definitions, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to add the definition of “Cannabis business” as follows:

18.02.010 - Definitions and interpretive provisions.

For the purpose of carrying out the provisions and intent of this title, words, phrases, and terms shall be deemed to have the meanings ascribed to them and shall be interpreted to have the standards and include the parts, elements and the features set for th in this chapter. When not inconsistent with the context, words used in the present tense include the future; words in the singular number include the plural; words in the plural number include the singular. The word "shall" is mandatory, and the word "may" is permissive. …
Cannabis business: any person or entity that engages in the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a state license, including medicinal cannabis or med icinal cannabis product as defined in section 26001 of the Business and Professions Code.

Section 18.13.020, General Provision, of Chapter 13 - P-C, Planned Community Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to add subdivision (L) as follows:

The following general provisions shall apply to all P-C zones:
…
L. Cannabis businesses shall be permitted in any P -C zone subject to a cannabis conditional use permit as provided for in chapter 18.4 4 of this title.

ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1
Section 18.16.040, Conditional uses, of Chapter 16 - C-2, Community Commercial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (M) as follows:

18.16.040 – Conditional Uses
The following uses may be permitted in the C -2 zone subject to a conditional use permit as provided for in chapter 18.3050 or 18.44 of this title. …
M. Cannabis businesses
Section 18.17.040, Conditional uses, of Chapter 17 - C-3, Wholesale Commercial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (L) as follows:

18.17.040 – Conditional Uses
The following uses may be permitted in the C -3 zone subject to a conditional use permit as provided for in chapter 18.30 or 18.44 of this title. …
L. Cannabis businesses
Section 18.18.040, Conditional uses, of Chapter 18 - H-1, Highway Commercial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (E) as follows:

18.18.040 – Conditional Uses
The following uses may be permitted in the H -3 zone subject to a conditional use permit as provided for in chapter 18.30 or 18.44 of this title. …
E. Cannabis businesses
Section 18.19.040, Conditional uses, of Chapter 19 - M-1, Light Industrial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (L) as follows:

18.19.040 – Conditional Uses
The following uses may be permitted in the M-1 zone subject to a conditional use permit as provided for in chapter 18.30 or 18.44 of this title. …
L. Cannabis businesses
ITEM 11a & 11b

ATTACHMENT D
4901-9532-7641, v. 1
Section 18.20.040, Conditional uses, of Chapter 20 - M-2, General Industrial Zone, of Title 18, Zoning, of the Ceres Municipal Code shall be amended to revise the introductory paragraph and add subdivision (T) as follows:

18.20.040 – Conditional Uses
The following uses may be permitted in the M-2 zone subject to a conditional use permit as provided for in chapter 18.30 or 18.44 of this title. …
T. Cannabis businesses
ITEM 11a & 11b
ITEM 11a & 11b

ATTACHMENT E

CITY OF CERES

NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of Ceres will conduct public hearings to receive and consider all evidence, reports, and testimony on Monday, March 23, 2026, at 6:00 p.m., or as soon thereafter as the matter s may be heard, in the City Council Chambers located at 2701 Fourth Street, Ceres, CA on the following:

1. The a pproval of a Resolution establishing the Cannabis Business Tax rates pursuant to Chapter 3.26, Cannabis Business Tax, of Title 3, Revenue and Finance of the Ceres Municipal Code;

2. The adoption of an Ordinance amending Section 5.03.010, General, of Chapter

5.03, General Permit Procedure, and Chapter 22, Cannabis Pilot Program, of Title 5, Business Licenses and Regulations, of the Ceres Municipal Code; and

3. The adoption of a Zoning Ordinance Text Amendment adding Chapter 43, Cannabis Conditional Use Permits, and Amending Applicable Chapters of Title 18, Zoning, of the Ceres Municipal Code.

The purpose of the public hearings is to receive public comments on the proposed actions to revise the City’s cannabis business regulations. The proposed Resolution set s the Cannabis Business Tax rates. The proposed Ordinance amends the City’s commercial cannabis regulations to implement the adopted tax rates, clarify application and operational procedures for cannabis businesses, and expand the City’s enforcement authority related to cannabis business regulation. The proposed Zoning Ordinance Text Amendment requires all cannabis businesses to obtain and maintain a Cannabis Conditional Use Permit and identifies the zoning districts in which cannabis businesse s are permitted as conditional uses.

All Interested parties are invited to attend the public hearing and provide comments on the proposed Ordinance. Public comments may be submitted by emailing [email protected] by 4:00 p.m. on the date of the hearing or verbally at the hearing.

Further information on the above hearing may be obtained or viewed at the office of the City Clerk, City Hall, 2220 Magnolia Street, Ceres, CA 95307 during regular business hours or by telephone at (209) 538-5731.

If a citizen wishes to challenge the nature of the above actions in court, they may be limited to raising only those issues they or someone else raised at the public hearing described in the notice, or in written correspondence delivered to the City of Ceres at, or prior to, the public hearing.
/s/ Fallon Martin, City Clerk
Date Notice Posted: March 11, 2026
ITEM 11a & 11b
ITEM 11a & 11b

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: March 23, 2026
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Nubia I. Goldstein, City Attorney
SUBJECT: Resolution No. 2026 -XXX, Approving Cannabis Business Tax Rates
RECOMMENDED COUNCIL ACTION:

Staff recommends the City Council adopt a resolution (Attachment A) approving Cannabis Business Tax Rates.

I. BACKGROUND:

The City of Ceres (“ City”) permit s and regulate s medical and adult use cannabis businesses under the Cannabis Pilot Program (“ Pilot Program”) established on May 29, 2018. Since the establishment of the Pilot Program, the City has gained a better understanding of the commercial cannabis industry and its impact to public health, safety, and welfare. Based on this experience, staff and the Ceres City Council (“ City Council”) have identified the need to set Cannabis Business Tax rates and update the Pilot Program to a permanent regulatory structure to strengthen the City’s enforcement authority and ensure consistent compliance with state and local regulations.

II. DISCUSSION:

The City Council has held multiple public discussions and heard from staff, cannabis operators in the City, and the public regarding potential changes to the City’s regulation of cannabis businesses. Based on these discussions, the City Council provided direction to staff to begin the process of setting the cannabis business tax rates.

On November 8, 2018, City voters approved Measure W, which authorized the City Council to set cannabis business license tax up to fifteen percent (15%) of the gross receipts of any cannabis business (“Cannabis Business Tax”). Measure W added Chapter

3.26, Cannabis Business Tax, to Title 3, Revenue and Finance, o f the Ceres Municipal Code (“CMC”).

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While the City Council has been authorized to set Cannabis Business Tax rates since Measure W’s approval, tax rates have not previously been established, nor has the City utilized this provision for revenue collection. Since the inception of the Pilot Program, the City has relied on public benefit fees, established through development agreements with cannabis businesses, to generate revenue.

The City Council now wishes to implement the Cannabis Business Tax by formally setting tax rates and incorporating the requirement of the payment of Cannabis Business Taxes into the regulatory framework. Pursuant to CMC chapter 3.26, the City Council may, by resolution, establish the Cannabis Business Tax rates.

The City Council provided direction to staff on all cannabis tax rates except cultivation.

Council expressed interest in a dollar -per-square-foot canopy tax and requested comparison data from other jurisdictions. The table below provides comparable rates.

Jurisdiction Tax Rate – Cultivation
Modesto 2.5% gross receipts – No Canopy Tax
Stanislaus County $5-$8 per square foot depending on facility size, cap at 4% of gross receipts
Fresno $6 per square foot
Santa Rosa $5.00 per square foot or 2% or gross receipts.

Long Beach $13.09 per square foot
Needles $1.75 per square foot
Sonoma County $3 per square foot indoor
Contra Costa County $7 per square foot indoor
Based on this review, staff proposes a rate of $3.00 per square foot of canopy or 4% of gross receipts, whichever is lower. The proposed cultivation rates are set to encourage cannabis cultivation businesses to be establishes in the City as the City does not currently have any cultivation businesses.

The proposed resolution sets the Cannabis Tax Rates at the following rates for each category of cannabis business:
• Adult-Use Retail Sales: 4% of monthly gross receipts; • Medical-Use Retail Sales: 4% of monthly gross receipts; • Manufacturing: 3% of monthly gross receipts;
• Distribution: 2% of monthly gross receipts;
• Laboratory: 1% of monthly gross receipts;
• Cultivation: $4 per square foot of Canopy or 3% of gross receipts, whichever is lower.

Cannabis businesses operating pursuant to an existing development agreement with the City shall not be subject to the newly adopted cannabis business tax rates for the remaining term of their development agreement, unless the parties mutually agree, in writing, to amend the agreement to apply the revised tax rates.

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III. FISCAL IMPACTS:

The proposed Cannabis Business Tax rates are lower than the public benefit fees currently imposed under existing development agreements. As a result, the City should anticipate a reduction in monthly payments from existing cannabis operators. However, changes in cannabis business regulations may improve compliance and increase the rate of collection, partially offsetting the reduced revenue from lower tax rates. Additionally, the City’s tax structure remains highly competitive within the region, enhancing the City’s attractiveness to potential new cannabis businesses. Despite this, the ongoing downturn in the cannabis market may limit the number of new businesses that choose to locate in the City.

V. POLICY ALTERNATIVES:

The City Council may elect to provide instruction to staff to revise the proposed Resolution or choose to reject the proposed Resolution and continue relying on public benefit fees to collect revenue from cannabis businesses.

VI. INTERDEPARTMENTAL COORDINATION:

N/A.

VII. PUBLIC PARTICIPATION:

The public is encouraged to provide input at the City Council meeting.

VIII. ENVIRONMENTAL REVIEW:

The proposed Resolution is a general policy change that does not result in a direct or reasonably foreseeable indirect physical change in the environment and, therefore, does not meet the definition of a “project” under the California Environmental Quality Act (“CEQA”) pursuant to Section 21065 of the Public Resources Code and Section 15378 of the CEQA Guidelines (Title 14, California Code of Regulations).

IX. STEPS FOLLOWING APPROVAL:

N/A
Approved by: ____________________
Douglas D. Dunford,
City Manager
Attachments:

1. Attachment A – Resolution
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ITEM 12

ATTACHMENT A
RESOLUTION NO. 2026-XXX

APPROVING CANNABIS BUSINESS TAX RATES

THE CITY COUNCIL
City of Ceres
WHEREAS, on November 8, 201 8, Ceres voters approved Measure W, which authorized the City Council to impose a business license tax of up to fifteen percent (15%) of the gross receipts of any marijuana-related business; and WHEREAS, the passage of Measure W resulted in the enactment of an ordinance which added Chapter 3.26, Cannabis Business Tax, to Title 3, Revenue and Finance, of the Ceres Municipal Code; and
WHEREAS, section 3.26.020, Cannabis Business Tax, of Chapter 3.26, provides that cannabis business tax rates shall be set by resolution of the City Council at any rate that does not exceed 15 cents for each $1.00 of gross receipts generated by each cannabis business; and
WHEREAS, the setting of the previously approved cannabis business tax rates, pursuant to California Environmental Quality Act (“CEQA”) and Title 14, of the California Code of Regulations Section 15378(b)(2), constitutes an administrative action and does not qualify as a “Project” under CEQA; t herefore, no environmental review is required; and
WHEREAS, the City Council now wishes to establish the tax rate s for cannabis businesses operating within the City of Ceres, including setting different tax rates for each classification of cannabis business.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ceres as follows:

1. The City Council of the City of Ceres hereby sets rates for Cannabis Businesses at the following rates:

A. Adult-Use Retail Sales: 4% of monthly gross receipts B. Medical-Use Retail Sales: 4% of monthly gross receipts C. Manufacturing: 3% of monthly gross receipts
D. Distribution: 2% of monthly gross receipts
E. Laboratory: 1% of monthly gross receipts
F. Cultivation: $4 per square foot of Canopy or 3% of gross receipts, whichever is lower.

2. If any section, subsection, sentence, clause, or phrase of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council declares that it would have adopted this Resolution, and each and every section, subsection, sentence, clause, or phrase not declared invalid ITEM 12

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or unconstitutional, without regard to whether any portion of the Resolution would be subsequently declared invalid or unconstitutional.

PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on the 23rd day of March 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

________________________________
Javier Lopez, Mayor
ATTEST:

_________________________________
Fallon Martin, City Clerk

ITEM 12

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: March 23, 2026
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Vanessa Portillo, Finance Director
[email protected], (209) 538-5764
SUBJECT: Informational Item – Official Bonding of City Treasurer and Addition of Vice Mayor to Bonding Coverage.

RECOMMENDED COUNCIL ACTION:

This is an informational item only. No action is required.

I. BACKGROUND:

The City maintains bonding coverage for designated public officials who perform or may perform functions involving the handling or disbursement of public funds. Official bonds provide financial protection to the City by ensuring faithful performance of dut ies and safeguarding public assets.

Pursuant to Ceres Municipal Code Section 2.15.040; Bonds of Clerk and Treasurer and California Government Code Section 36518 , the City Clerk and City Treasurer are required to execute official bonds prior to entering upon the duties of their respective offices. These bonds must comply with state law governing public officer bonding requirements.

II. REASONS FOR RECOMMENDATION:

Consistent with Municipal Code Section 2.15.040 and applicable provisions of state law, the City Treasurer will execute the required official bond in the amount established by ordinance.

In addition, the City will include the Vice Mayor within the City’s bonding coverage an administrative measure. The Vice Mayor is listed as a designated signor for City’s warrants under Municipal Code Section 3.02.090; Persons Designated; Bond Required.

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III. FISCAL IMPACTS:

The cost associated with bonding coverage will be accommodated within the City’s existing risk management budget. Future costs will be included in the budget projections.

No additional budget appropriation is required at this time.

IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

N/A
V. POLICY ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

N/A
VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

N/A
Approved by: _____________________
Douglas D. Dunford,
City Manager
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