Clovis City Council
May 20, 2024

May 20, 2024 - 1 - 11:02 AM
A G E N D A • C I T Y C O U N C I L M E E T I N G
May 20, 2024 6:00 PM Council Chamber
In compliance with the Americans with Disabilities Act, if you need special assistance to access the City Council Chamber to participate at this meeting, please contact the City Clerk or General Services Director at (559) 324-2060 (TTY – 711). Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the Council Chamber.

The Clovis City Council meetings are open to the public at the physical address listed above. There are numerous ways to participate in the City Council meetings: you are able to attend in person; you may submit written comments as described below; and you may view the meeting which is webcast and accessed at www.cityofclovis.com/agendas.

Written Comments
 Members of the public are encouraged to submit written comments at:
www.cityofclovis.com/agendas at least two (2) hours before the meeting (4:00 p.m.). You will be prompted to provide:
 Council Meeting Date
 Item Number
 Name
 Email
 Comment
 Please submit a separate form for each item you are commenting on.  A copy of your written comment will be provided to the City Council noting the item number.

If you wish to make a verbal comment, please see instructions below.  Please be aware that any written comments received that do not specify a particular agenda item will be marked for the general public comment portion of the agenda.  If a written comment is received after 4:00 p.m. on the day of the meeting, efforts will be made to provide the comment to the City Council during the meeting. However, staff cannot guarantee that written comments received after 4:00 p.m. will be provided to City Council during the meeting. All written comments received prior to the end of the meeting will be made part of the record of proceedings.

Council Chamber, 1033 Fifth Street, Clovis, CA 93612 (559) 324-2060 www.cityofclovis.com
1 May 20, 2024 - 2 - 11:02 AM

CALL TO ORDER
FLAG SALUTE - Councilmember Basgall

ROLL CALL

PRESENTATIONS/PROCLAMATIONS

1. Presentation of Proclamation Declaring May 19-25, 2024 as National Public Works Week.

PUBLIC COMMENTS - This is an opportunity for the members of the public to address the City Council on any matter within the City Council’s jurisdiction that is not listed on the Agenda. In order for everyone to be heard, please limit your comments to 3 minutes or less, or 10 minutes per topic. Anyone wishing to be placed on the Agenda for a specific topic should contact the City Manager’s office and submit correspondence at least 10 days before the desired date of appearance.

ORDINANCES AND RESOLUTIONS - With respect to the approval of resolutions and ordinances, the reading of the title shall be deemed a motion to waive a reading of the complete resolution or ordinance and unless there is a request by a Councilmember that the resolution or ordinance be read in full, further reading of the resolution or ordinance shall be deemed waived by unanimous consent of the Council.

CONSENT CALENDAR - Items considered routine in nature are to be placed upon the Consent Calendar. They will all be considered and voted upon in one vote as one item unless a Councilmember requests individual consideration. A Councilmember’s vote in favor of the Consent Calendar is considered and recorded as a separate affirmative vote in favor of each action listed. Motions in favor of adoption of the Consent Calendar are deemed to include a motion to waive the reading of any ordinance or resolution on the Consent Calendar. For adoption of ordinances, only those that have received a unanimous vote upon introduction are considered Consent items.

2. Administration - Approval - Minutes from the May 13, 2024, Council Meeting.

3. Administration - Adopt - Ord. 24-03, an Ordinance of the City Council of the City of Clovis Amending Sections 5.29.102, 5.29.203, and 5.29.301 of Chapter 5.29, of Title 5 of the Clovis Municipal Code Pertaining to Definitions and Regulations Relating to Multiple Responses to Nuisance Violations. (Vote: 5-0)

4. Administration - Adopt - Ord. 24-05, An ordinance of the City Council of the City of Clovis adding Section 5.10.25 to Chapter 5.10 of Title 5 of the Clovis Municipal Code relating to Massage Establishments. (Vote: 5-0)

5. Administration - Adopt - Ord. 24-06, An ordinance of the City Council of the City of Clovis adding Chapter 5.35 to Title 5 of the Clovis Municipal Code relating to Tobacco Retailers. (Vote: 5-0)

6. Administration - Approval - Authorize the City Manager, or designee, to execute an updated Permanent Local Housing Allocation Program funding agreement with Central California Housing Corporation (doing business as Affordable Housing Development Corporation (AHDC)), and Better Opportunities Builder, Inc. (BOB), in the amount of up to $1,481,281, and any amendments thereto, for the development of a 47-unit affordable senior rental housing project at 135 Osmun Ave.

7. Finance – Receive and File – Investment Report for the Month of January 2024. 2 May 20, 2024 - 3 - 11:02 AM

8. Finance – Receive and File – Treasurer’s Report for the Month of January 2024.

9. Fire – Receive and File – 2023 Fire Department Annual Report.

10. Planning and Development Services – Approval – Res.24-___, Adopt a list of projects funded by SB1: The Road Repair and Accountability Act.

11. Public Utilities – Approval – Waive Formal Bidding Requirements and Authorize the Purchase of a 2024 Avant M755 Tractor from California Turf Equipment & Supply Company in the Amount of $83,493.37.

PUBLIC HEARINGS - A public hearing is an open consideration within a regular or special meeting of the City Council, for which special notice has been given and may be required. When a public hearing is continued, noticing of the adjourned item is required as per Government Code 54955.1.

12. Consider Review and Introduction – Res. 24-___, 2024-25 City of Clovis Annual Budget, Five Year Capital Improvement Program, and information regarding the Clovis Successor Agency. (Continued from the May 13, 2024, council meeting) a. Finance Department (Jay Schengel)
b. City Council / City Attorney / City Manager / City Clerk (Andy Haussler / Jesse Velez) c. Public Utilities Department (Scott Redelfs)
d. Planning and Development Services/Community Investment Program (Renee Mathis)
e. Economic Development, Housing, and Communications (Chad McCollum) f. General Services (Shonna Halterman)
g. Fire Department (Chris Ekk) – Continued from the May 13, 2024, council meeting h. Police Department (Curt Fleming) – Continued from the May 13, 2024, council meeting
Staff: Jay Schengel, Finance Director/John Holt, City Manager Recommendation: Receive Introduction and continue the public hearing to June 10, 2024

13. Consider items associated with approximately 246 acres of land located southwest of the intersection of Behymer Avenue and the Sunnyside Avenue alignment, within the Heritage Grove Urban Center. Great Bigland LP., owner; Wilson Premier Homes, Inc., applicant; Harbour and Associates, representative.
a. Consider Approval - Res. 24-__, A Resolution (1) Certifying the Final Environmental Impact Report for the TM 6343 Project; (2) Adopting CEQA Findings of Fact and a Statement of Overriding Consideration; and (3) Adopting a Mitigation Monitoring and Reporting Program.
b. Consider Approval – Res. 24-__, GPA2021-003, A Resolution approving a request to amend the land use element of the General Plan for the Development Area (approximately 71.54 acres) from the Medium Density land use designation to the Medium High Density land use designation as part of the Second General Plan Amendment Cycle of 2024.
c. Consider Introduction - Ord. 24-__, R2021-006, An Ordinance approving a request to prezone the properties within the annexation area (246 acres) from the Fresno County AE-20 Zone District to the Clovis O, P-F, R-A, R-1, and R-1-PRD Zone Districts.
3 May 20, 2024 - 4 - 11:02 AM
d. Consider Approval - Res. 24-__, TM6343, A Resolution approving a vesting tentative tract map for a 590-lot single-family planned residential development. e. Consider Approval - Res. 24-___, PDP2021-001, A Resolution approving a planned development permit for a 590-lot single-family residential development. f. Consider Approval - Res. 24-___, RO305, A Resolution approving Application for the Annexation of the Territory known as the Behymer-Sunnyside Southwest Reorganization area (approximately 246 acres).

Staff: Lily Cha, Senior Planner
Recommendation: Approve

14. Consider Introduction - Ord. 24-___, R2024-001, An ordinance of the City Council approving an exemption from further environmental review under CEQA Guidelines Section 15183, and approving a rezone, adjusting the existing zoning designation from the R-1-7500 (Single Family Residential – 7,500 sq. ft.) Zone District to the C-P (Administrative and Professional Office) Zone District for the property located at 488 N. Armstrong Avenue. Dale and Mary De Geode, owner; GMA Engineering, applicant and representative.

Staff: Marissa Jensen, Assistant Planner
Recommendation: Approve
ADMINISTRATIVE ITEMS - Administrative Items are matters on the regular City Council Agenda other than Public Hearings.

15. Consider items associated with approximately 1.62 acres of land located on the northwest corner of Ashlan and De Wolf Avenues. Harpreet Singh Sumal, owner/applicant; Kelsey George of Precision Civil Engineering, representative. a. Consider Approval - Res. 24-40, A resolution to approve an environmental finding of a Mitigated Negative Declaration for General Plan Amendment 2023-002 and Rezone 2023-002. (April 15, 2024, Vote: 4-1 with Councilmember Basgall voting no) b. Consider Approval - Res. 24-41, GPA2023-002, A resolution to amend the General Plan as part of the Second General Plan Amendment Cycle of 2024, re-designating the subject property from the Low Density Residential (2.1-4.0 dwelling units per acre) and Open Space designations to the High Density Residential (15.1-30.0 dwelling units per acre) designation. (April 15, 2024, Vote: 3-2 with Mayor Ashbeck and Councilmember Basgall voting no)
c. Consider Adoption - Ord. 24-01, R2023-002, An ordinance to rezone the subject property from the R-A (Single-Family Residential Very Low Density) Zone District to the R-3 (Multifamily High Density Residential) Zone District. (April 15, 2024, Vote: 3-2 with Mayor Ashbeck and Councilmember Basgall voting no) Staff: McKencie Perez, MPA, Senior Planner
Recommendation: Approve
4 May 20, 2024 - 5 - 11:02 AM

CITY MANAGER COMMENTS

COUNCIL COMMENTS
CLOSED SESSION - A “closed door” (not public) City Council meeting, allowed by State law, for consideration of pending legal matters and certain matters related to personnel and real estate transactions.

16. Government Code Section 54956.9(d)(1)
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Case Name: Desiree Martinez v. City of Clovis, et al., Case No. F082914

17. Government Code Section 54956.9(d)(2)

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation
One potential case

RECONVENE INTO OPEN SESSION AND REPORT FROM CLOSED SESSION

ADJOURNMENT

FUTURE MEETINGS
Regular City Council Meetings are held at 6:00 P.M. in the Council Chamber. The following are future meeting dates:

June 3, 2024 (Mon.)
June 10, 2024 (Mon.)
June 17, 2024 (Mon.)
July 1, 2024 (Mon.)
5 6
AGENDA ITEM NO. 1.

PRELIMINARY - SUBJECT TO APPROVAL

CLOVIS CITY COUNCIL MEETING
May 13, 2024 6:00 P.M. Council Chamber
Meeting called to order by Mayor Ashbeck at 6:00
Flag Salute led by Councilmember Pearce
Roll Call: Present: Councilmembers, Basgall, Bessinger, Mouanoutoua, Pearce Mayor Ashbeck
PRESENTATION – 6:04
6:04 – ITEM 1 - PRESENTATION OF PROCLAMATION DECLARING MAY 2024, AS SPECIAL OLYMPICS NORCAL MONTH.

PUBLIC COMMENTS – 6:12
Eric Rollins, resident spoke on concerns about public safety staffing levels.

Leticia Navarett, resident, spoke on concerns at Butterfly Gardens.

CONSENT CALENDAR – 6:19
Motion by Councilmember Basgall, seconded by Councilmember Mouanoutoua, that the items on the Consent Calendar be approved. Motion carried by unanimous vote.

2. Administration - Approved - Minutes from the May 6, 2024, Council Meeting.

3. Administration - Received and Filed – Business Organization of Old Town (BOOT) Third Quarter Report, January through March 2024.

4. Finance – Approved – Res. 24-57, A Resolution of the Clovis City Council Dissolution of the Community Facilities District 2004-1 Oversight Committee. (Continued from the April 15, 2024, Council Meeting)

5. General Services – Approved – Res. 24-58, Authorizing Amendments to the City’s Classification Plan by Revising the Parks Maintenance Leadworker Classification in the Public Utilities Department.

6. Planning and Development Services – Approved – Bid Award for CIP 21-19, Shaw Avenue Street Rehabilitation to Cal Valley Construction, Inc., in the amount of $1,449,573.25; and authorize the City Manager to execute the contract on behalf of the City.

7. Planning and Development Services – Approved – Final Acceptance for CIP 23-26, ADA Curb Return Ramps 2024 – T1.

8. Public Utilities – Approval – Preliminary Engineer’s Report; and Approved – Res. 24-59, A Resolution Declaring the City’s Intention to Levy and Collect the Annual Assessments for Landscape Maintenance District No. 1.
7 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

PUBLIC HEARINGS – 6:19
6:20 ITEM 9 - APPROVED INTRODUCTION – ORD. 24-03, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CLOVIS AMENDING SECTIONS 5.29.102, 5.29.203, AND

5.29.301 OF CHAPTER 5.29, OF TITLE 5 OF THE CLOVIS MUNICIPAL CODE

PERTAINING TO DEFINITIONS AND REGULATIONS RELATING TO MULTIPLE RESPONSES TO NUISANCE VIOLATIONS.

Motion for approval by Councilmember Mouanoutoua, seconded by Councilmember Basgall. Motion carried by unanimous vote.
6:28 ITEM 10 - APPROVED INTRODUCTION – ORD. 24-04, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CLOVIS AMENDING SECTIONS 5.22.02 AND 5.22.05 OF CHAPTER 5.22, OF TITLE 5 OF THE CLOVIS MUNICIPAL CODE PERTAINING TO REGULATIONS FOR THE DELIVERY OF MEDICINAL MARIJUANA.

Mr. Scott, resident, spoke in support of the item.

Motion for approval of the ordinance with a provision allowing $1,000 administrative citation by Councilmember Mouanoutoua , seconded by Councilmember Bessinger. Motion carried by unanimous vote.
6:45 ITEM 11 - APPROVED INTRODUCTION - ORD. 24-05, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CLOVIS ADDING SECTION 5.10.25 TO CHAPTER 5.10 OF TITLE 5 OF THE CLOVIS MUNICIPAL CODE RELATING TO MASSAGE ESTABLISHMENTS.

Motion for approval by Councilmember Pearce, seconded by Councilmember Bessinger.

Motion carried by unanimous vote.
6:54 ITEM 12 - APPROVED INTRODUCTION - ORD. 24-06, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CLOVIS ADDING CHAPTER 5.35 TO TITLE 5 OF THE CLOVIS MUNICIPAL CODE RELATING TO TOBACCO RETAILERS.

Motion for approval by Councilmember Bessinger, seconded by Councilmember Mouanoutoua. Motion carried by unanimous vote.
7:04 ITEM 13 - CONSIDER REVIEW AND INTRODUCTION – RES. 24-XX, 2024-25 CITY OF

CLOVIS ANNUAL BUDGET, FIVE YEAR CAPITAL IMPROVEMENT PROGRAM, AND INFORMATION REGARDING THE CLOVIS SUCCESSOR AGENCY.
13A - FINANCE DEPARTMENT (JAY SCHENGEL)
8 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

13B - CITY COUNCIL / CITY ATTORNEY / CITY MANAGER / CITY CLERK (ANDY

HAUSSLER / JESSE VELEZ)
13C - PUBLIC UTILITIES DEPARTMENT (SCOTT REDELFS)
13D - PLANNING AND DEVELOPMENT SERVICES/COMMUNITY INVESTMENT

PROGRAM (RENEE MATHIS)
13E - ECONOMIC DEVELOPMENT, HOUSING, AND COMMUNICATIONS (CHAD

MCCOLLUM)
13F - GENERAL SERVICES (SHONNA HALTERMAN)
13G - FIRE DEPARTMENT (CHRIS EKK) –CONTINUED TO MAY 20, 2024 13H - POLICE DEPARTMENT (CURT FLEMING) – CONTINUED TO MAY 20, 2024 Motion to continue the item to May 20, 2024, by Councilmember Basgall, seconded by Councilmember Mouanoutoua. Motion carried by unanimous vote.

ADMINISTRATIVE ITEMS – 9:05
9:05 ITEM 14 - ADOPTED – ORD. 24-02, R2021-009, AN ORDINANCE OF THE CLOVIS CITY

COUNCIL APPROVING A REQUEST TO PREZONE PROPERTY WITHIN THE DEVELOPMENT AREA (APPROXIMATELY 77 ACRES) OF THE PROJECT SITE FROM THE FRESNO COUNTY AL20 ZONE DISTRICT TO THE CLOVIS R-1-PRD ZONE DISTRICT, ASSOCIATED WITH APPROXIMATELY 155 ACRES OF LAND LOCATED ON THE NORTH SIDE OF SHEPHERD AVENUE, BETWEEN N. SUNNYSIDE AND N.

FOWLER AVENUES. (VOTE: 4-0-1 WITH MAYOR ASHBECK ABSENT) Motion for approval by Councilmember Bessinger, seconded by Councilmember Pearce.

Motion carried by unanimous vote.

CITY MANAGER COMMENTS – 9:07
COUNCIL COMMENTS – 9:08
CLOSED SESSION – 9:12
ITEM 15 - GOVERNMENT CODE SECTION 54957.6 CONFERENCE WITH LABOR NEGOTIATORS AGENCY DESIGNATED REPRESENTATIVES: JOHN HOLT, ANDREW HAUSSLER, SHONNA HALTERMAN, AMY HANCE, SCOTT CROSS. EMPLOYEE ORGANIZATION: TRANSIT EMPLOYEES BARGAINING UNIT/OPERATING ENGINEERS 3 RECONVENE INTO OPEN SESSION AND REPORT FROM CLOSED SESSION – 9:35 No action taken.

ADJOURNMENT
9 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

Mayor Ashbeck adjourned the meeting of the Council to May 20, 2024 Meeting adjourned: 9:36 p.m.
______________________________ ________________________________ Mayor City Clerk
10 AGENDA ITEM NO. 2.

TO: Mayor and City Council
FROM: Administration
DATE: May 20, 2024
SUBJECT: Administration - Adopt - Ord. 24-03, an Ordinance of the City Council of the City of Clovis Amending Sections 5.29.102, 5.29.203, and 5.29.301 of Chapter 5.29, of Title 5 of the Clovis Municipal Code Pertaining to Definitions and Regulations Relating to Multiple Responses to Nuisance Violations. (Vote: 5-0)
ATTACHMENTS: None
This item was approved for introduction on May 13, 2024, with a unanimous vote.

Please direct questions to the City Manager’s office at 559-324-2060. 11 AGENDA ITEM NO. 3.

TO: Mayor and City Council
FROM: Administration
DATE: May 20, 2024
SUBJECT: Administration - Adopt - Ord. 24-05, An ordinance of the City Council of the City of Clovis adding Section 5.10.25 to Chapter 5.10 of Title 5 of the Clovis Municipal Code relating to Massage Establishments. (Vote: 5-0) ATTACHMENTS: None
This item was approved for introduction on May 13, 2024, with a unanimous vote.

Please direct questions to the City Manager’s office at 559-324-2060. 12 AGENDA ITEM NO. 4.

TO: Mayor and City Council
FROM: Administration
DATE: May 20, 2024
SUBJECT: Administration - Adopt - Ord. 24-06, An ordinance of the City Council of the City of Clovis adding Chapter 5.35 to Title 5 of the Clovis Municipal Code relating to Tobacco Retailers. (Vote: 5-0)
ATTACHMENTS: None
This item was approved for introduction on May 13, 2024, with a unanimous vote.

Please direct questions to the City Manager’s office at 559-324-2060. 13 AGENDA ITEM NO. 5.

TO: Mayor and City Council
FROM: City Administration
DATE: May 20, 2024
SUBJECT: Administration - Approval - Authorize the City Manager, or designee, to execute an updated Permanent Local Housing Allocation Program funding agreement with Central California Housing Corporation (doing business as Affordable Housing Development Corporation (AHDC)), and Better Opportunities Builder, Inc. (BOB), in the amount of up to $1,481,281, and any amendments thereto, for the development of a 47- unit affordable senior rental housing project at 135 Osmun Ave.

ATTACHMENTS: 1. Letter from Developer requesting unit reduction

2. Updated PLHA Development Agreement (revised from the version approved by the City Council on January 16, 2024)

CONFLICT OF INTEREST
Councilmembers should consider recusal if a campaign contribution exceeding $250 has been received from the project proponent (developer, applicant, agent, and/or participants) within the preceding 12 months (Government Code 84308).

RECOMMENDATION
Approve the updated Permanent Local Housing Allocation (PLHA) development agreement with Central California Housing Corporation (dba Affordable Housing Development Corporation (AHDC)), and Better Opportunities Builder, Inc. (BOB), for the development of a 47-unit affordable senior rental housing project at 135 Osmun Avenue and authorize City Manager to sign the agreement and related documents.

EXECUTIVE SUMMARY
The City of Clovis is the recipient of Permanent Local Housing Allocation (PLHA) funds from the State of California Housing and Community Development Department (HCD) for the development of affordable housing. On January 16, 2024, the City Council approved a development agreement with AHDC and BOB, for the use of PLHA funds at their 135 Osmun project, for the development of 51 senior rental housing units. Since the approval of the previous development agreement, the developers have slightly modified the proposed project and are now proposing a 47-unit project instead of a 51-unit project as previously approved by the City Council. The PLHA funding is still needed by the developers for this project and the same 14 AGENDA ITEM NO. 6.
number of PLHA units (six) will be made available by the developer – PLHA units will be restricted to households not exceeding 60% of area median income. The remaining units (except for one on-site manager unit) will be affordable and be available to households not exceeding 80% of area median income.

BACKGROUND
The Clovis City Council previously approved a development agreement for the 135 Osmun Project including $1,481,281 in PLHA funds. The originally proposed agreement included development of 51 affordable senior rental housing units.

Since that time City staff and developer representatives have continued to work on predevelopment of the project, including meeting with project area neighbors, PDS staff and State HCD staff to develop and finalize both the project and the development agreement. A neighborhood meeting was held on January 24, 2024, where neighborhood residents requested the developer modify the project design to reduce the project from three-stories to two-stories on the eastern facing side. To accommodate this request, the project design has been modified and the project is now proposed to be 47 units.

The previously approved development agreement, as approved by City Council and HCD, has not been executed, therefore an amendment to the previously approved agreement is not needed. Rather, approval of the attached updated development agreement is needed for the PLHA funding to be provided to this project and allow City staff and Developer representatives to move forward with the project pre-development and land acquisition, continue with the project design, and request project funding as previously proposed.

Council approval will include authorizing the City Manager to approve and sign the updated development agreement and any further revisions to the agreement and related project documents that may include a unit count change of up to 10% (more or less units) or a 10% change in the PLHA loan amount.

FISCAL IMPACT
There is no fiscal impact with the approval of this amendment. PLHA project financing is currently available in the 2023-2024 Budget.

REASON FOR RECOMMENDATION
Approval of the updated agreement will allow for the development of an affordable senior rental housing project while addressing neighborhood requests regarding the project design and layout at 135 Osmun Avenue.

ACTIONS FOLLOWING APPROVAL
City staff will effectuate signing of the development agreement, with the revised unit count before the end of the fiscal year.

Prepared by: Claudia Cazares, Housing Program Manager
Reviewed by: City Manager AH
15 AGENDA ITEM NO. 6.

May 14, 2024
Claudia Cazares
Affordable Housing Programs Manager
1033 Fifth Street
Clovis, CA 93612
RE: 135 Osmun Ave., Clovis, CA – Project Unit Count Amendment To Whom It May Concern,
Thank you for partnering with Better Opportunities Builder, Inc. (“BOB”) and Affordable Housing Development Corporation (“AHDC”), collectively referred to as “Developer”.

As the Developer of the proposed affordable senior housing located at 135 Osmun Ave. in Clovis, we would like to request an amendment to the current draft Permanent Local Housing Allocation Program Agreement (“Agreement”) with the City of Clovis. The current draft Agreement includes a project description that includes a total of 51 units of which 6 units are to funded by the PLHA Program Loan. We would like to request that the project description be amended to include a total of 47 units; there are no proposed changes to the 6 units to be funded by the PLHA Program Loan.

As part of our development process, we commonly engage with the surrounding neighborhood to inform them of the proposed project and seek feedback. Accordingly, we organized a community meeting on January 24th, 2024 at the City of Clovis Senior Activity Center which is in close proximity to the proposed Project development site.

Meeting invitations where sent to all surrounding property owners within a radius of approx. 500 feet from the subject development site. During the community meeting, we received meaningful feedback regarding various aspects of the proposed affordable housing development including concerns regarding the height of the three-story building. Generally, the building height concerns from the property owners located to the east of the development site, which consists of single-family homes.

Attachment 1 16
AGENDA ITEM NO. 6.

In response to the community meeting feedback, we modified the building design by lowering the east-facing portion of the building down to two-stories. As a result of the design change, four units where reduced to accommodate change. We believe the design change, resulting in a unit reduction, will help mitigate and respond to the community feedback. Again, we would like to request that the Project description be amended to now reflect 47 units total. However, if this amendment is not possible, we do have the ability to revert back to the original design that provided for 51 units total.

Should you require any additional information or clarification regarding this matter, please do not hesitate to contact me at [email protected], or 559-513-5848.

Sincerely,
Michael Duarte
Chief Executive Officer
Better Opportunities Builder, Inc.
17 AGENDA ITEM NO. 6.

RECORDING REQUESTED BY AND WHEN
RECORDED, RETURN TO:

City of Clovis
Attn: Housing Program Manager
1033 Fifth Street
Clovis, California 93612
SPACE ABOVE THIS LINE PROVIDED FOR RECORDER’S USE
No recording or filing fee required. This document exempt from fees pursuant to California Government Code sections 6103 and 27383.

CITY OF CLOVIS

PERMANENT LOCAL HOUSING ALLOCATION PROGRAM AGREEMENT

BY AND BETWEEN
CITY OF CLOVIS, a municipal corporation,
and
CLOVIS 135 OSMUN, LP, a California Limited Partnership
regarding
135 Osmun Senior Apartments, at
135 Osmun Avenue, Clovis, CA 93612
APNs: 492-080-74, 492-080-85, 492-080-86, and 492-080-08 (portion) Attachment 2 18
AGENDA ITEM NO. 6.

TABLE OF CONTENTS
RECITALS....................................................................................................................... 1 AGREEMENT ................................................................................................................. 2 ARTICLE 1. DEFINITIONS................................................................................... 2 ARTICLE 2. TERMS OF THE LOAN.................................................................... 6 ARTICLE 3. REPRESENTATIONS AND WARRANTIES OF DEVELOPER ........ 7 ARTICLE 4. WARRANTIES AND COVENANTS OF THE DEVELOPER............. 9 ARTICLE 5. PROPERTY MAINTENANCE......................................................... 13 ARTICLE 6. DISBURSEMENT OF PLHA PROGRAM FUNDS.......................... 16 ARTICLE 7. CONSTRUCTION OF THE PROJECT........................................... 19 ARTICLE 8. OPERATIONS OF THE PROJECT ................................................ 24 ARTICLE 9. INSURANCE, INDEMNITY AND BONDS ...................................... 27 ARTICLE 10. DEFAULTS AND REMEDIES ...................................................... 32 ARTICLE 11. GENERAL PROVISIONS............................................................. 34

EXHIBITS
EXHIBIT A – PROPERTY DESCRIPTION
EXHIBIT B – PROJECT DESCRIPTION AND SCHEDULE
EXHIBIT C – BUDGET
EXHIBIT D – EXEMPLAR DECLARATION OF RESTRICTIONS
EXHIBIT E – EXEMPLAR PROMISSORY NOTE
EXHIBIT F – EXEMPLAR DEED OF TRUST
19 AGENDA ITEM NO. 6.
1 PERMANENT LOCAL HOUSING ALLOCATION PROGRAM AGREEMENT
This Permanent Local Housing Allocation Program Agreement (“Agreement”) is entered into effective on January ___, 2024, by and between the City of Clovis, a municipal corporation (“CITY”) and Clovis 135 Osmun, LP, a California limited partnership (“DEVELOPER”).

RECITALS
A. WHEREAS, the CITY has received a Permanent Local Housing Allocation Program (“PLHA Program”) grant from the State of California as authorized by applicable provisions of the Health and Safety Code (Section 50470, et seq.) which created the Building Homes and Jobs Trust Fund and the PLHA Program, and which is designed to provide a permanent source of funding to help cities and counties implement plans to increase the affordable housing stock.

B. WHEREAS, to advance the supply of affordable rental housing within the City of Clovis, the CITY desires, among other things, to provide PLHA Program funds for affordable housing development.

C. WHEREAS, DEVELOPER is a California limited partnership consisting of Central California Housing Corporation, a California corporation and Better Opportunities Builder, Inc., a California non-profit public benefit corporation, each owning one-half interest as general partners of DEVELOPER.

D. WHEREAS, the DEVELOPER desires to act as the owner/developer exercising effective project control as to the construction of a forty-seven (47) unit rental housing apartment project of which six (6) units will be preserved as low-income units for households earning sixty percent (60%) or less of the Area Median Income as defined by the PLHA Program, and forty (40) units will be preserved as low-income housing units for households earning eighty percent (80%) or less of the Area Median Income, including related on-site and off-site improvements (“Project”) as more particularly described in EXHIBIT “B” – Project Description and Schedule, attached hereto and incorporated herein.

E. WHEREAS, the DEVELOPER and CITY agree PLHA Program funds are provided to encourage and support supplementary financing for the completion of financing needed for the Project, and the entirety of the project shall assist the CITY in meeting its PLHA Program goals.

F. WHEREAS, the Project will be constructed upon PLHA Program eligible real property located at 135 Osmun Avenue, Clovis, CA 93612, as more particularly described in EXHIBIT “A” – Property Description, attached hereto and incorporated herein, which Property is to be owned and controlled by DEVELOPER.

G. WHEREAS, to further its goal to increase the supply of affordable housing within the City of Clovis, the CITY desires to assist the DEVELOPER by providing a One Million Four Hundred Eighty One Thousand, Two Hundred Eighty One Dollar 20 AGENDA ITEM NO. 6.
2 ($1,481,281.00) residual receipts PLHA Program loan to the Project (“Loan”) at 3% interest, due and payable in full no later than at the 55-year maturity date, for eligible PLHA Project Property development costs, including property acquisition, upon the terms and conditions in this Agreement and any exhibits attached hereto and incorporated herein, as further identified in EXHIBIT “C” – Budget, attached hereto and incorporated herein, to be secured by the underlying Property and the affordable housing covenants attached as EXHIBIT “D” – Exemplar Declaration of Restrictions, and Note, Exemplar Note attached as EXHIBIT “E” – Promissory Note loan, upon the terms and conditions in this Agreement.

H. WHEREAS, the CITY has determined that this Agreement is in the best interest of, and will materially contribute to, the Housing Element of the City’s General Plan.

Further, the CITY has determined that the Project: (i) will have a positive influence in the neighborhood and surrounding environs, (ii) is in the vital and best interest of the CITY, and the health, safety, and welfare of CITY residents, (iii) will comply with applicable State and local laws and requirements, (iv) will increase, improve, and preserve the community’s supply of Very Low- to Low-Income Housing available at an affordable cost to Very Low- to Low-Income households, as defined hereunder, (v) planning and administrative expenses incurred in pursuit hereof are necessary for the production, improvement, or preservation of Very Low- to Low-Income Housing, and (vi) will comply with any and all owner participation rules and criteria applicable thereto.

I. WHEREAS, the CITY and DEVELOPER have determined that the Project’s PLHA Units, as defined below, constitute routine programmatic/grantee lender activities utilizing available and allocated program/grantee funding, outside the reach of the California Constitution Article XXXIV and enabling legislation.

NOW, THEREFORE, IN CONSIDERATION of the above recitals, which recitals are contractual in nature, the mutual promises herein contained, and for other good and valuable consideration hereby acknowledge, the parties agree as follows.

AGREEMENT
ARTICLE 1. DEFINITIONS
The following terms have the meaning and content set forth in this Article wherever used in this Agreement, attached exhibits or attachments that are incorporated into this Agreement by reference.

1.1 Acquisition means vesting of the Property in fee title to the DEVELOPER.

1.2 ADA means the Americans with Disabilities Act of 1990, as most recently amended.

1.3 Affirmatively Furthering Fair Housing (Affirmative Marketing) means a good faith effort to attract eligible persons of all racial, ethnic and gender groups, in the housing market area, to rent the Affordable Housing Units proposed for construction on the Property.
21 AGENDA ITEM NO. 6.
3 1.4 Affordability Period means the minimum period of fifty-five (55) years commencing from the date the CITY issues a certificate of occupancy for the Project.

1.5 Affordable Housing Units means the six (6) housing units of the forty-seven (47) Project housing units funded by the PLHA Program Loan which shall be available at a gross rent, including utility allowance, that does not exceed 60% of the applicable income eligibility level, and complies with the definition of Low-Income as outlined in the PLHA guidelines and Council-Approved PLHA Five-Year Plan, as amended, including the remaining forty (40) units which will be preserved as low-income housing units for households earning eighty percent (80%) or less of the Area Median Income. If other Project funding sources require lower levels of income, then the lower income levels shall apply. The remaining one (1) housing unit of the forty-seven (47) Project housing units shall be maintained as an on-site manager unit and shall not be required to be maintained as an Affordable Housing Unit in accordance with any income eligibility level.

1.6 Budget means the Budget for the development of the Project attached hereto as EXHIBIT “C” and incorporated herein by reference, as may be amended from time to time with the approval of the CITY’s City Manager, or designee, provided any increase in PLHA Program funds for the Project shall require City Council approval.

1.7 Commencement of Construction means the time the DEVELOPER or the DEVELOPER’s construction contractor begins substantial physical work on the Property, including, without limitation, site clearing, grading, delivery of materials, or any work beyond maintenance of the Property in its current condition, which shall take place in accordance with the Project Schedule.

1.8 Completion Date means the date the DEVELOPER has recorded a Notice of Completion for the Project.

1.9 City of Clovis PLHA Five Year Plan means that PLHA Five Year Plan approved by the Council on June 21, 2021, as may be amended from time to time.

1.10 Debt Service means payments made in a calendar year pursuant to the financing obtained for the acquisition, construction, operation and/or ownership of the Project, but excluding residual receipt payments made pursuant to the Note (defined below).

1.11 Declaration of Restrictions means the Declaration of Restrictions in substantially the form attached hereto as EXHIBIT “D”, which shall contain the affordability covenants and income-level restrictions of this Agreement and the Project which shall run with the Property and which the DEVELOPER shall record or cause to be recorded against the Property no later than the date of Commencement of Construction.

1.12 Deed of Trust means that standard form Deed of Trust in substantially the form attached hereto as EXHIBIT “F” (including the security agreement) given by the DEVELOPER as Trustor, to the CITY as beneficiary, through escrow established by the DEVELOPER at its sole cost with Placer Title Company, and recorded against the Property as security for the repayment of the Loan and Note, and approved as to form by 22 AGENDA ITEM NO. 6.
4 the City Attorney, as well as any amendments to, modification of and restatements of said Deed of Trust as approved by the City Manager and City Attorney, which Deed of Trust may be subordinated to Project Senior Lenders per the Budget attached as EXHIBIT “C” with the approval of the City Manager. The terms of any such Deed of Trust are hereby incorporated into this Agreement by this reference.

1.13 Eligible Costs means the PLHA eligible development costs funded by the Loan, consistent with the Project Budget attached as EXHIBIT “C”, allowable under the PLHA Final Guidelines dated October 2019 and Council-approved PLHA Five Year Plan.

1.14 Event of Default shall have the meaning assigned to such term under Section 10.1 hereunder.

1.15 Funding Sources means the CITY’s PLHA Funds, conventional permanent loan, DEVELOPER’s contribution, and any other funds that may become available to the Project.

1.16 Hazardous Materials means any hazardous or toxic substances, materials, wastes, pollutants or contaminants which are defined, regulated or listed as "hazardous substances," "hazardous wastes," "hazardous materials," "pollutants," "contaminants" or "toxic substances" under federal or State environmental and health safety laws and regulations, including without limitation, petroleum and petroleum byproducts, flammable explosives, urea formaldehyde insulation, radioactive materials, asbestos and lead.

Hazardous Materials do not include substances that are used or consumed in the normal course of developing, operating, or occupying a housing project, to the extent and degree that such substances are stored, used, and disposed of in the manner and in amounts that are consistent with normal practice and legal standards.

1.17 Household means persons related or unrelated, who are occupying the Affordable Housing Units within the Project.

1.18 Loan means the residual receipts Loan of PLHA Funds, in the total amount not to exceed One Million Four Hundred Eighty-One Thousand, Two Hundred Eighty-One Dollars ($1,481,281.00), as more specifically described in the Budget and in the Note evidencing the Loan to be in substantially the form attached hereto as EXHIBIT “E”. The Loan shall be payable in accordance with the terms of the Note and shall be secured by and subject to the Deed of Trust recorded against the Property.

1.19 Loan Documents collectively mean this Agreement, the Note, Deed of Trust, and Declaration of Restrictions for the Project and all related documents/instruments as they may be amended, modified, or restated from time to time along with all exhibits and attachments thereto, relative to the Loan.

1.20 Low or Lower-Income Household means households whose annual income does not exceed 80% of the area median income for the County of Fresno, California as determined by HUD.
23 AGENDA ITEM NO. 6.
5 1.21 Note means that certain One Million Four Hundred Eighty-One Thousand, Two Hundred Eighty-One Dollar ($1,481,281.00), PLHA Loan Promissory Note in favor of the CITY as promisee, evidencing the Loan and performance of the affordability and other covenants and restrictions set forth in this Agreement, secured by the Deed of Trust recorded against the Property as no worse than fourth (4 th) position encumbrance upon
the Property behind only the Senior Financing (defined below) for the Project as described in the Budget, naming the CITY as beneficiary and provided to the CITY no later than the date of the Project funding hereunder, including any amendments to, modifications of and restatements of said Note consented to in writing by the CITY. An exemplar of the Note is attached hereto as EXHIBIT “E,” and incorporated herein.

1.22 Notice of Completion shall mean that Notice of Completion under California Civil Code Section 8182. The Notice of Completion shall be recorded at the Fresno County Recorder’s Office with a conformed copy delivered to the CITY in the same manner as notice is to be provided pursuant to this Agreement.

1.23 Operating Expenses means actual, reasonable and customary costs, fees and expenses directly incurred, paid and attributable to the operation, maintenance and management of the completed Project in a calendar year, including, without limitation; painting, cleaning, repairs, alterations, landscaping, utilities, refuse removal, certifications, permits and licenses, sewer charges, real and personal property taxes, assessments, insurance, security, advertising and promotion, janitorial services, cleaning and building supplies, purchasing, repair, servicing and installation of appliances, equipment, fixtures and furnishings which are not paid from the capital replacement reserve, fees and expenses of property management and common area expenses, fees and expenses of accountants, attorneys, and other professionals, the cost of tenant services, repayment of any completion of operating loans including any and all deferred contractor’s fees per the Budget, made to the DEVELOPER, its successors or assignees, and other actual operating costs and capital costs which are incurred and paid by the Property, but which are not paid from reserve accounts.

1.24 PLHA means the Permanent Local Housing Allocation.

1.25 Project means the construction of forty-seven (47) rental units of which forty-six (46) units shall be preserved and maintained as Affordable Housing Units, with one (1) unit for an on-site manager.

1.26 PLHA Guidelines means the State of California Housing and Community Development 2019 PLHA Final Guidelines.

1.27 Project Schedule means the schedule for commencement and completion of the Project included in EXHIBIT “B” attached hereto and incorporated herein.

1.28 Project Unit means the forty-seven (47) rental units to be constructed for the Project.
24 AGENDA ITEM NO. 6.
6 1.29 Property means the real property located at APNs: 492-080-74, 492-080- 85, 492-080-86, and 492-080-08 (portion) as more specifically described in the Property Description attached hereto as EXHIBIT “A”.

1.30 Rent means the total monthly payment a tenant pays for an Affordable Housing Unit including the following: use and occupancy of the unit and land and associated facilities, including parking, provided by the DEVELOPER (other than parking services acquired by tenants on an optional basis), any separately charged fees or service charges assessed by the DEVELOPER which are required of all tenants (other than security deposits), the cost of an adequate level of service for utilities paid by the tenants (including garbage collection, sewer, water, common area electricity, but not telephone or internet service), any other interest, taxes, fees or charges for use of the land or associated facilities and assessed by a public or private entity other than the DEVELOPER, and paid by the tenant. Rent does not include payments for any optional services provided by the Project.

1.31 Residual Receipts means Residual Receipts as defined in the Note.

1.32 Senior Financing means the financing for the Project provided by Senior Lenders as set forth in the Budget which shall be senior to the Loan.

1.33 Senior Lender means lenders providing the Senior Financing for the Project.

1.34 State of California means the State of California’s Department of Housing and Community Development.

ARTICLE 2. TERMS OF THE LOAN

2.1 Loan of PLHA Funds. The CITY agrees to provide a loan of PLHA Funds to the DEVELOPER in an amount not to exceed One Million Four Hundred Eighty-One Thousand Two Hundred Eighty-One Dollars ($1,481,281.00), all under the terms and conditions provided in this Agreement.

2.2 Loan Documents. The DEVELOPER shall execute and deliver the Loan Documents, including the Note to the CITY, and notarized Deed of Trust to Placer Title Company in recordable form, as provided for in this Agreement.

2.3 Term of Agreement. This Agreement is effective upon the date of execution and shall remain in force with respect to the Project for the duration of the Affordability Period unless earlier terminated as provided herein. This Agreement shall expire upon the end of the 55-year Affordability Period.

2.4 Loan Repayment and Maturity. The Loan will accrue interest commencing on the date provided for in the Note and shall be due and payable in accordance with the Note in full not later than the maturity date provided in the Note.

2.5 Incorporation of Documents. The DEVELOPER’s PLHA proposal, the approved minutes of the Clovis City Council meeting of January 16, 2024, approving this 25 AGENDA ITEM NO. 6.
7 Agreement, the Loan Documents, PLHA Guidelines, City of Clovis PLHA Five Year Plan, and all exhibits, attachments, documents, and instruments referenced herein, as now in effect and as may be amended from time to time, constitute part of this Agreement and are incorporated herein by reference. All such documents have been provided or made available to the parties herewith or have been otherwise provided to/procured by the parties and reviewed or made available for review by each of them prior to execution hereof.

2.6 Covenants of DEVELOPER. The DEVELOPER for itself and its agents/assigns covenants and agrees to comply with all the terms and conditions of this Agreement and the requirements of the PLHA Guidelines, as amended.

2.7 Subordination. This Agreement, the Declaration of Restrictions, and the Deed of Trust may be subordinated to certain approved financing for the Project (in each case, a “Senior Lender”) to no worse than fourth (4
th) position, but only on condition that
all of the following are satisfied: (a) all of the proceeds of the proposed Senior Financing, less any transaction costs, must be used to provide construction financing for the Project consistent with an approved Budget; (b) the subordination agreement must provide the CITY with adequate rights to cure any defaults by the DEVELOPER including providing the CITY or its successor with copies of any notices of default; (c) upon a determination by the City Manager that the conditions in this Section have been satisfied, the City Manager or his/her designee is authorized to execute the approved subordination agreement, inter-creditor agreements, standstill agreements, and/or other documents as may be reasonably requested by the Senior Lender to evidence subordination to the Project financing, without the necessity of any further action or approval provided that such agreements contain written provisions that are no more onerous and which are consistent with the customary standard requirements imposed by the financing source(s), on subordinate cash flow obligations under their then existing senior financing policies, and further provided that the City Attorney approves such document(s) as to form.

2.8 Reversion of Land. Property will revert to CITY ownership on December 31, 2028, in the event that DEVELOPER is unsuccessful in obtaining other necessary Affordable Housing Financing for development of the Project as of that date, and the project remains undeveloped. This date may be modified if required by the State of California and/or CITY.

ARTICLE 3. REPRESENTATIONS AND WARRANTIES OF DEVELOPER

3.1 Existence and Qualification. DEVELOPER represents and warrants to the CITY as of the date hereof, that DEVELOPER is a duly organized California corporation in good standing with the State of California; and the DEVELOPER has the requisite power, right, and legal authority to execute, deliver, and perform its obligations under the Agreement and has taken all actions necessary to authorize the execution, delivery, performance, and observance of its obligations under this Agreement. This Agreement, when executed and delivered by the DEVELOPER is enforceable against the DEVELOPER, in accordance with its respective terms, except as such enforceability may be limited by: (a) bankruptcy, insolvency, fraudulent conveyance, reorganization, 26 AGENDA ITEM NO. 6.
8 moratorium, or other similar laws of general applicability affecting the enforcement of creditors' rights generally, and (b) the application of general principles of equity without the joinder of any other party.

3.2 No Litigation Material to Financial Condition. The DEVELOPER represents and warrants to the CITY as of the date hereof that, except as disclosed to and approved by the CITY in writing, no litigation or administrative proceeding before any court or governmental body or agency is now pending, nor, to the best of the DEVELOPER’s knowledge, is any such litigation or proceeding now threatened, or anticipated against the DEVELOPER that, if adversely determined, would have a material adverse effect on the financial condition, business, or assets of the DEVELOPER or on the operation of the Project.

3.3 No Conflict of Interest. The DEVELOPER represents and warrants to the CITY as of the date hereof that no officer, agent, or employee of the CITY directly or indirectly owns or controls any interest in the DEVELOPER, and no person, directly or indirectly owning or controlling any interest in the DEVELOPER, is an official, officer, agent, or employee of the CITY.

3.4 No Legal Bar. The DEVELOPER represents and warrants to the CITY, as of the date hereof that the execution, delivery, performance, or observance by the DEVELOPER of this Agreement will not, to the best of the DEVELOPER’s knowledge, materially violate or contravene any provisions of: (a) any existing law or regulation, or any order of decree of any court, governmental authority, bureau, or agency; (b) governing documents and instruments of the DEVELOPER; or (c) any mortgage, indenture, security agreement, contract, undertaking, or other agreement or instrument to which the DEVELOPER is a party or that is binding on any of its properties or assets, the result of which would materially or substantially impair the DEVELOPER’s ability to perform and discharge its obligations or its ability to complete the Project under this Agreement.

3.5 No Violation of Law. The DEVELOPER represents and warrants to the CITY as of the date hereof that, to the best of the DEVELOPER’s knowledge, this Agreement and the operation of the Project as contemplated by the DEVELOPER, do not violate any existing federal, State, or local laws of regulations.

3.6 No Litigation Material to Project. The DEVELOPER represents and warrants to the CITY as of the date hereof, except as disclosed to, and approved by the CITY in writing, there is no action, proceeding, or investigation now pending, or any basis therefor known or believed to exist by the DEVELOPER that questions the validity of this Agreement, or of any action to be taken under this Agreement, that would, if adversely determined, materially or substantially impair the DEVELOPER’s ability to perform and observe its obligations under this Agreement, or that would either directly or indirectly have an adverse effect or impair the completion of the Project.

3.7 Assurance of Governmental Approvals and Licenses. The DEVELOPER represents and warrants to the CITY, as of the date hereof, that the DEVELOPER has 27 AGENDA ITEM NO. 6.
9 obtained and, to the best of the DEVELOPER’s knowledge, is in compliance with all federal, State, and local governmental reviews, consents, authorizations, approvals, and licenses presently required by law to be obtained by the DEVELOPER for the Project as of the date hereof.

ARTICLE 4. WARRANTIES AND COVENANTS OF THE DEVELOPER
The DEVELOPER, for itself and its development team represents and warrants that:

4.1 Affirmative Marketing and Tenant Selection. The DEVELOPER warrants, covenants and agrees with the CITY that it shall comply with all affirmatively furthering fair housing and marketing requirements in order to provide information and otherwise attract eligible persons from all racial, ethnic and gender groups in the housing market in the rental of the Project Units. The DEVELOPER shall maintain records of actions taken to affirmatively market units constructed in the future, and to assess the results of these actions. In addition, the Project shall implement a Tenant Selection process outlining selection and screening criteria of eligible tenants.

4.2 Availability of PLHA Funds. The DEVELOPER understands and agrees that the availability of PLHA Program Funds is subject to the control of the State of California, or other, and should said PLHA Program Funds be encumbered, withdrawn or otherwise made unavailable to the CITY, whether earned by or promised to the DEVELOPER, and/or should the CITY in any fiscal year hereunder fail to allocate said funds, the CITY shall not provide said PLHA Program Funds unless and until they are made available for payment to the CITY by the State of California and the CITY receives and allocates said PLHA Program Funds. No other funds owned or controlled by the CITY shall be obligated under this Agreement.

4.3 Compliance with PLHA Agreement. The DEVELOPER warrants, covenants and agrees that, in accordance with the requirements of the PLHA Guidelines, upon any uncured default by the DEVELOPER within the meaning of Article 10.1 of this Agreement, the CITY may suspend or terminate this Agreement and all other agreements with the DEVELOPER without waiver or limitation of rights/remedies otherwise available to the CITY.

4.4 Conflict of Interest. The DEVELOPER warrants, covenants and agrees that it shall comply with the Conflict-of-Interest requirements as set forth in the PLHA Final Guidelines, without limitation, that no officer, employee, agent, or consultant of the DEVELOPER may occupy a Project Unit. The DEVELOPER understands and acknowledges that no employee, agent, consultant, officer or elected official or appointed official of the CITY, who exercises any functions or responsibilities with respect to the Project, or who is in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from the Project, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for him or herself or for anyone with which that person has family or business ties, during his or her tenure or for one year thereafter. 28 AGENDA ITEM NO. 6.
10 4.5 Construction Standards. The DEVELOPER shall construct the proposed Project Units assisted under this Agreement in compliance with all applicable local and state codes, ordinances, and zoning requirements in effect at the time of issuance of CITY building permits.

4.6 Covenants and Restrictions to Run with the Land. The CITY and the DEVELOPER expressly warrant, covenant and agree to ensure that the covenants and restrictions set forth in this Agreement are recorded and shall run with the land (Property), provided, however, that, on expiration of this Agreement such covenants and restrictions shall expire.

A. The CITY and the DEVELOPER hereby declare their understanding and intent that the covenants and restrictions set forth herein directly benefit the land by:
(a) enhancing and increasing the enjoyment and rental of the proposed Project by certain Low-Income Households, and (b) making possible the obtaining of advantageous financing for construction.

B. The DEVELOPER covenants and agrees with the CITY that after issuance of a recorded Certification of Completion for the Project until the expiration of the Affordability Period it shall cause six (6) of the Project Units to be rented as Affordable Housing Units for Low Income Households, earning no more than 60% of the Area Median Income; the remaining forty (40) units which will be preserved as low-income housing units for households earning eighty percent (80%) or less of the Area Median Income.

C. Without waiver or limitation, the CITY shall be entitled to injunctive or other equitable relief against any violation or attempted violation of any covenants and restrictions, and shall, in addition, be entitled to damages available under law or contract for any injuries or losses resulting from any violations thereof.

D. All present and future owners of the Property and other persons claiming by, through or under them shall be subject to and shall comply with the covenants and restrictions. The acceptance of a deed of conveyance to the Property shall constitute an agreement that the covenants and restrictions, as may be amended or supplemented from time to time, are accepted and ratified by such future owners, tenant or occupant, and all such covenants and restrictions shall be covenants running with the land and shall bind any person having at any time any interest or estate in the Property, all as though such covenants and restrictions were recited and stipulated at length in each and every deed, conveyance, mortgage or lease thereof.

E. The failure or delay at any time of the CITY or any other person entitled to enforce any such covenants or restrictions shall in no event be deemed a waiver of the same, or of the right to enforce the same at any time or from time to time thereafter, or an estoppel against the enforcement thereof.

4.7 Displacement of Persons. The DEVELOPER covenants and agrees with the CITY that it will take all reasonable steps to minimize the displacement of any persons 29 AGENDA ITEM NO. 6.
11 (families, households, individuals, businesses, nonprofit organizations, and farms) from the Property. The parties acknowledge and agree that the Property is vacant.

4.8 Initial and Annual Income Certification and Reporting. The DEVELOPER covenants and agrees with the CITY that it shall comply with the procedures for annual income determination. The DEVELOPER, shall obtain, complete, and maintain on file, immediately prior to initial occupancy, and annually thereafter, income certifications from the Project Unit Household members. The DEVELOPER, shall make a good faith effort to verify that the income provided by an applicant or occupying Household in an income certification is accurate by taking one or more of the following steps as part of the verification process: (1) obtain a pay stub for the most recent three pay periods; (2) obtain an income verification form from the applicant’s current employer; (3) obtain an income verification form from the Social Security Administration and California Department of Social Services if the applicant receives assistance from either of such agencies; (4) obtain income tax return for the most recent three years; (5) obtain checking and/or savings account statements for the most recent six months; or (6) if the applicant is unemployed, obtain another form of independent verification. Copies of Household income certification and verification must be available for review and approval by the CITY prior to initial lease up. The DEVELOPER further warrants, covenants and agrees that it will cooperate with the CITY in the CITY’s income certification/affordability monitoring activities.

4.9 Lead-Based Paint. The DEVELOPER covenants and agrees with the CITY that it shall comply with all applicable requirements of the Lead-Based Paint Poisoning Prevention Act of 42 U.S.C. 4821 et seq., 24 C.F.R. Part 35, including the HUD 1012 Rule, and 24 C.F.R. 982.401(j), and any amendment thereto, and Environmental Protection Agency (EPA) Section 402 (c)(3) of the Toxic Substances Control Act (TSCA) to address lead-based hazards created by renovation, repair, and painting activities that disturb lead-based paint in target housing and child-occupied facilities. Contractors performing renovations in lead- based paint units must be EPA-certified renovators.

These requirements apply to all units and common areas of the Project. The DEVELOPER shall incorporate or cause incorporation of this provision in all contracts and subcontracts for work performed on the Project, which involve the application of paint.

The DEVELOPER shall be responsible for all disclosure, inspection, testing, evaluation, and control and abatement activities.

4.10 Minority Outreach Activities. The DEVELOPER covenants and agrees that it shall comply with any applicable federal laws and regulations pertaining to minority outreach for the Project.

4.11 Other Laws and Regulations. The DEVELOPER covenants and agrees with the CITY that, in addition to complying with the federal laws and regulations already cited in this Agreement, the DEVELOPER has reviewed, and shall comply with and require all its contractors and subcontractors on the Project to comply with, all other federal laws and regulations that may apply to the PLHA Program, including, without limitation, requirements of 24 C.F.R. 58.6 and the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 4001-4128) including the following:
30 AGENDA ITEM NO. 6.
12 A. The Project is not located in an area identified by the Federal Emergency Management Agency as having special flood requirements.

B. The provisions of Section 102 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), as supplemented by Department of Labor Regulations (29 C.F.R. Part 5), regarding the construction and management of the proposed Project.

C. The DEVELOPER and its contractors, subcontractors and service providers for the Project, shall comply with all applicable local, State and federal requirements concerning equal employment opportunity, including compliance with Executive Order (E.O.) 11246, “Equal Employment Opportunity”, as amended by E.O. 11375, (amending E.O. 11246 Relating to Equal Employment Opportunity), and as supplemented by regulations at 41 C.F.R. part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor”.

D. The provisions of the Copeland “Anti-Kickback” Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 C.F.R. part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”).

4.12 Reporting Requirements. The DEVELOPER warrants, covenants and agrees with the CITY that it shall submit performance reports to the CITY as detailed in Section 7.17. Furthermore, commencing the calendar year after the Project's conversion to permanent financing, the DEVELOPER agrees to provide, at the sole cost of the DEVELOPER, annual audited Financial Statements and residual receipts calculations for the Project expenses and ongoing financial transactions which occur as a result of this Agreement as detailed in Section 5.6. The DEVELOPER agrees to account for the expenditure of PLHA Program Funds using generally accepted accounting principles, which financial documentation shall be made available to the CITY and the State of California upon their respective written request(s).

4.13 Housing Affordability. The DEVELOPER covenants and agrees with the CITY that forty-six (46) Project Units will be affordable to Low-Income Households during the Affordability Period. Six (6) Project Units, shall be designated as “PLHA Units”. The PLHA Units, at a minimum, shall be rented to and occupied by, or, if vacant, available for rental and occupancy by person(s) whose annual household income at the time of initial occupancy is at or below 60% of the area median income for the Affordability Period except upon foreclosure or other transfer in lieu of foreclosure following default under a Deed of Trust. Forty (40) Project Units, at a minimum, shall be rented to and occupied by, or, if vacant, available for rental and occupancy by person(s) whose annual household income at the time of initial occupancy is not greater than 80% of the area median income for the Affordability Period except upon foreclosure or other transfer in lieu of foreclosure following default under a Deed of Trust. However, if at any time following a transfer by foreclosure or transfer in lieu of foreclosure, but still during the Affordability Period, the DEVELOPER or either of its general partners thereafter obtains an ownership interest in the Project or the Property, the Affordability Period shall be revived according to its 31 AGENDA ITEM NO. 6.
13 original terms. In the event the DEVELOPER fails to comply with this Section 4.13 or the Affordability Period is not revived following transfer by foreclosure or transfer in lieu of foreclosure, the DEVELOPER shall return to the CITY all PLHA Program Funds disbursed to the DEVELOPER by the CITY under this Agreement.

4.14 Terminated Projects. The DEVELOPER understands and agrees that, if the Project is terminated before completion, either voluntarily or otherwise, such constitutes an ineligible activity, and the CITY will not be required to provide any further PLHA Program assistance to the Project.

ARTICLE 5. PROPERTY MAINTENANCE
The DEVELOPER covenants and agrees to the following, for the entire term of the Agreement.

5.1 Adequate Repair and Maintenance. The DEVELOPER, during its time on title to the Property, shall cause the maintenance of the Project and Property to be in compliance with all applicable codes, laws, and ordinances. The CITY reserves the right to require the DEVELOPER to change the property management company for the Property if it is determined through annual property monitoring that the property management company is not performing satisfactorily.

5.2 Affordable Rental Housing. The DEVELOPER covenants and agrees that the Project shall constitute forty-seven (47) Project Units (including one manager’s unit) with forty-six (46) Affordable Housing Units for rent during the entire Affordability Period.

This covenant shall remain in effect and run with and restrict the Property during the entirety of the Affordability Period. In the event the DEVELOPER fails to comply with the time period in which the Affordable Housing Units constitute affordable housing, the CITY shall without waiver or limitation, be entitled to injunctive relief, as the DEVELOPER acknowledges that damages are not adequate remedy at law for such breach.

5.3 Compliance with Environmental Laws. The DEVELOPER shall cause the Project Units to be in compliance with, and not to cause or permit the Project to be in violation of, any Hazardous Materials law, rule, regulation, ordinance, or statute. Although the CITY will utilize its employees and agents for regular inspection and testing of the eligible Property, the DEVELOPER agrees that, if the CITY has reasonable grounds to suspect any such violation, the DEVELOPER shall be entitled to thirty (30) days' written notice and opportunity to cure such violation. If the suspected violation is not cured, the CITY shall have the right to retain an independent consultant to inspect and test the eligible Property for such violation. If a violation is discovered by the independent consultant, the DEVELOPER shall pay for (including reimbursing the CITY upon written demand) the reasonable cost of the independent consultant.

Additionally, the DEVELOPER agrees:
32 AGENDA ITEM NO. 6.
14 A. That the CITY shall not be directly or indirectly responsible, obligated, or liable with the inspection, testing, removal, or abatement of asbestos or other hazardous or toxic chemicals, materials, substances, or wastes and that all cost, expense, and liability for such work shall be and remain solely with the DEVELOPER; B. Not to transport to, or from, the Property, or use, generate, manufacture, produce, store, release, discharge, or dispose of on, under, or about the Property, or surrounding real estate, or transport to or from the project site, or surrounding real estate, any hazardous or toxic chemicals, materials, substance, or wastes or allow any person or entity to do so except in such amounts and under such terms and conditions permitted by applicable laws, rules, regulations, ordinances, and statutes; C. To give prompt written notice to the CITY of the following:
(i) Any proceeding or inquiry by any governmental authority with respect to the presence of any hazardous or toxic chemicals, materials, substance, or waste in or on the eligible Property or the surrounding real estate or the migration thereof from or to other property;
(ii) All claims made or threatened by any third party against the DEVELOPER, or such properties relating to any loss or injury resulting from any hazardous or toxic chemicals, materials, substance, or waste; and (iii) The DEVELOPER’s discovery of any occurrence or condition on any real property adjoining or in the vicinity of such properties that would cause such properties or underlying or surrounding real estate or part thereof to be subject to any restrictions on the ownership, occupancy, transferability, or use of the property under any environmental law, rule, regulation, ordinance, or statute; and D. To indemnify, defend, and hold the CITY harmless from any and all claims, actions, causes of action, demands, judgments, damages, injuries, administrative orders, consent agreements, orders, liabilities, penalties, costs, expenses (including attorney’s fees and expenses), and disputes of any kind whatsoever arising out of or relating to the DEVELOPER or any other party’s, except to the extent caused by CITY, use of release of any hazardous or toxic chemicals, materials, substance, or waste on the Property regardless of cause or origin, including any and all liability arising out of or relating to any investigation, site monitoring, containment, cleanup, removal, restoration, or related remedial work of any kind or nature.

5.4 Compliance with Laws. The DEVELOPER shall promptly and faithfully comply with, conform to, and obey all present and future federal, State, and local statutes, regulations, rules, ordinances, and other legal requirements applicable by reason of this Agreement or otherwise to the Project including without limitation prevailing wage requirements. The DEVELOPER acknowledges that the use of PLHA Program Funds subjects the Project to State of California regulations and covenants and agrees that it shall comply with, conform to, and obey (and take steps as are required of the DEVELOPER to enable the CITY to comply with, conform to and obey) all State of 33 AGENDA ITEM NO. 6.
15 California regulations and laws applicable to the Project. DEVELOPER shall also comply with all mitigation measures and conditions identified in any environmental assessment for the Project.

5.5 Existence, Qualification, and Authority. The DEVELOPER shall provide to the CITY any evidence required or requested by the CITY to demonstrate the continuing existence, qualification, and authority of the DEVELOPER to execute this Agreement and to perform the acts necessary to carry out the Project.

5.6 Financial Statements and Audits. Commencing the year after the Project’s conversion to permanent financing, the DEVELOPER, at its sole cost and expense shall submit to the CITY:

A. Audited annual financial statements with notes that are current, signed, and prepared according to generally accepted accounting principles consistently applied (except as otherwise disclosed therein).

B. Audited financial statements with the management notes covering the income and expenses, and the financial transactions for the Project during the prior fiscal year.

5.7 Inspection and Audit of Books, Records and Documents. The DEVELOPER shall account for all PLHA Program Funds disbursed for the Project pursuant to this Agreement. Any duly authorized representative of the CITY or the State of California shall, at all reasonable times, have access to and the right to inspect, copy, make excerpts or transcripts, audit, and examine all books of accounts, records, files and other papers or property, and other documents of the DEVELOPER pertaining to the Project, or all matters covered in this Agreement and for up to six (6) years after the expiration or termination of this Agreement.

A. The DEVELOPER will maintain books and records for the Project using generally accepted accounting principles. The DEVELOPER agrees to maintain books and records that accurately and fully show the date, amount, purpose, and payee of all expenditures financed with PLHA Program Funds and to keep all invoices, receipts and other documents related to expenditures financed with PLHA Program Funds for not less than five (5) years after the expiration or termination of the Agreement. Books and records must be kept accurate and current. For purposes of this section, "books, records and documents" include, without limitation; plans, drawings, specifications, ledgers, journals, statements, contracts/agreements, funding information, funding applications, purchase orders, invoices, loan documents, computer printouts, correspondence, memoranda, and electronically stored versions of the foregoing. This section shall survive the termination of this Agreement.

B. The CITY may audit any conditions relating to this Agreement at the CITY’s expense, unless such audit shows a significant discrepancy in information reported by the DEVELOPER in which case the DEVELOPER shall bear the cost of such 34 AGENDA ITEM NO. 6.
16 audit. The DEVELOPER shall also comply with any applicable audit requirements of the PLHA Guidelines. This section shall survive the termination of this Agreement.

C. The DEVELOPER shall cooperate fully with the CITY and the State of California in connection with any interim or final audit relating to the Project that may be performed relative to the performance of this Agreement.

5.8 Inspection of Property. Any duly authorized representative of the CITY or the State of California shall, at all reasonable times and within 72 hours’ written notice, have access and the right to inspect the Property until completion of the Project and expiration of the applicable Affordability Period, subject to the rights of the tenants.

5.9 No Other Liens. The DEVELOPER shall not create or incur, or suffer to be created or incurred, or to exist, any additional mortgage, pledge, lien, charge, or other security interest of any kind on the Property, other than those related to the Project’s construction loans in relation to the Project, consistent with the attached Budget, without the prior written consent of the CITY. Notwithstanding the foregoing, the CITY agrees to provide its reasonable consent to any request by the DEVELOPER for the refinancing of debt on the Project, and further agrees to subordinate its deed of trust to any refinanced loan that was senior in priority to the CITY’s Loan prior to such refinancing.

5.10 Nondiscrimination. The DEVELOPER shall comply with and cause any and all contractors and subcontractors to comply with any and all federal, State, and local laws with regard to illegal discrimination, and the DEVELOPER shall not illegally discriminate against any persons on account of race, religion, sex, family status, age, handicap, or place of national origin in its performance of this Agreement and the completion of the Project.

5.11 Ownership. Except as required in pursuit hereof, the DEVELOPER shall not sell, lease, transfer, assign or otherwise dispose of all or any material part of any interest it might hold in the Property or the Project without the prior written consent of the CITY, which consent shall not be unreasonably withheld or delayed. “Transfer” shall exclude the leasing of any single Project Unit. The DEVELOPER shall request CITY’s written approval of the granting of the security interests in the Property described in Section 5.11 above.

5.12 Payment of Liabilities. The DEVELOPER shall pay and discharge in the ordinary course of its business all material obligations and liabilities, the nonpayment of which could have a material or adverse impact on its financial condition, business, or assets or on the operation of the Project, except such obligations and liabilities that have been disclosed to the CITY in writing and are being contested in good faith.

5.13 Report of Events of Default. The DEVELOPER shall promptly give written notice to the CITY upon becoming aware of any Event of Default under this Agreement.

ARTICLE 6. DISBURSEMENT OF PLHA PROGRAM FUNDS
Without waiver of limitation, the parties agree as follows, regarding PLHA Program Funds:
35 AGENDA ITEM NO. 6.
17 6.1 Loan Commitments and Financing Plan. The DEVELOPER shall submit its most current finance plan for the Project, including Funding Sources (Finance Plan) to the CITY prior to City Council approval and as other funding sources become part of the Project Budget. The City shall approve the Finance Plan so long as the Finance Plan is consistent with the Budget contained in EXHIBIT “C”. The CITY shall accept the Finance Plan and supporting documentation such as commitment letters, letters of credit, agreements, and resolutions for proposed funding to the Project. If the CITY disapproves the Finance Plan, it will specify the reason for the disapproval and ask the DEVELOPER to provide any additional information the CITY may need to approve the Finance Plan.

The parties agree and acknowledge that this Agreement does not constitute a commitment of loan funds, and that such Loan Commitment or approval of Loan may occur only upon satisfactory completion of the environmental review of the Project. In addition, no Loan Commitment shall be made until all requirements contained in this Agreement or another other loan, security or other related documents are met by the Developer, as determined by the CITY.

6.2 Finance Plan Content. The Finance Plan shall contain all Project preconstruction, post-construction, and permanent loans or letters of commitment from one or more qualified public/private lenders or Funding Sources in sufficient amounts, combined with any other DEVELOPER financing, for the DEVELOPER to complete construction of the Project. The total amount of the liens to be recorded against the Property as presented in the Finance Plan shall not exceed the DEVELOPER’s estimated construction Budget.

6.3 Use of PLHA Program Funds. The DEVELOPER warrants, covenants and agrees that it shall request PLHA Program Funds only for land acquisition and/or eligible construction costs incurred as identified in the itemized Budget, attached hereto as EXHIBIT “C”, aggregating not more than One Million Four Hundred Eighty-One Thousand, Two Hundred Eighty-One Dollars ($1,481,281.00). DEVELOPER may not incur costs to be paid with Loan funds for this Project until the CITY notifies the DEVELOPER that DEVELOPER is authorized to use Loan funds. The CITY’s obligations shall in no event exceed the PLHA Program Funds amount specified in this Agreement.

A. If any such Funds shall be determined to have been requested and/or used by the DEVELOPER for costs other than for eligible development costs, and subject to the notice and cure provisions of Section 10.2 hereunder, an equal amount from nonpublic funds shall become immediately due and payable by the DEVELOPER to the CITY; provided, however, that the DEVELOPER shall, subject to its full cooperation with the CITY, be entitled to participate in any opportunity to remedy, contest, or appeal such determination.

B. In the event PLHA Program Funds are requested to reimburse Eligible Costs which subsequently lose eligibility as Eligible Costs, the DEVELOPER shall immediately return such PLHA Funds to the CITY.
36 AGENDA ITEM NO. 6.
18 C. The CITY will disburse PLHA Program Funds, to the DEVELOPER through proper invoicing for eligible development costs of the Project Units as provided in this Article 6.

6.4 Conditions Precedent to Disbursement. The CITY shall not be obligated to make or authorize any disbursements of PLHA Program Funds unless the following conditions are satisfied:

A. There exists no Event of Default as provided in Article 10, nor any act, failure, omission, or condition that with the passage of time or the giving of notice or both would constitute an Event of Default.

B. The DEVELOPER has delivered to City a copy of the Purchase and Sale Agreement for the DEVELOPER’s purchase of the Property, along with escrow instructions, estimated settlement statement, and other escrow and title documents as may be necessary to effectuate City’s wire of PLHA Program Funds into escrow, and the DEVELOPER’s purchase of the Property.

C. The CITY has approved the eligible acquisition and/or development costs.

D. The DEVELOPER has obtained insurance coverage and delivered to the City as evidence of insurance as required in Article 9.

E. The DEVELOPER is current with its compliance of reporting requirements set forth in this Agreement.

F. The DEVELOPER has provided the CITY with a written request for PLHA Program Funds, for reimbursement of eligible Project costs and detailing such eligible costs applicable to the request on a City provided form.

G. The CITY has received certification required by Section 6.6 of this Agreement.

H. The CITY has received, and continues to the have the right to disburse, PLHA Program Funds.

I. The Developer has received environmental clearance for the Project on the Property.

6.5 Requests for PLHA Funds. The DEVELOPER shall request that the CITY deposit PLHA Program Funds into escrow as described above. The DEVELOPER shall only request a maximum of One Million Four Hundred Eighty-One Thousand Two Hundred Eighty-One Dollars ($1,481,281.00) in PLHA Program assistance for the Project Units. All requests should provide in detail such eligible costs applicable to the request.

All requests for PLHA Funds shall be accompanied with the Certification required by Section 6.6 of this Agreement.
37 AGENDA ITEM NO. 6.
19 6.6 DEVELOPER Certification. The DEVELOPER shall submit to the CITY a written certification that, as of the date of submitting the Request for PLHA Program Funds (Certification):

A. The representations and warranties contained in or incorporated by reference in this Agreement continue to be true, complete, and accurate in material respects; and
B. The DEVELOPER has carried out its obligations and is in compliance with all the obligations or covenants specified in this Agreement, to the extent that such obligations or covenants are required to have been carried out or are applicable at the time of the Request for PLHA Program Funds; and
C. The DEVELOPER has not committed or suffered an act, event, occurrence, or circumstance that constitutes an Event of Default or that with the passage of time or giving of notice or both would constitute an Event of Default; and D. The disbursement of funds shall be used solely for eligible property acquisition and/or construction costs identified in this Agreement and must by supported by the itemized obligations that have been properly incurred, expended and are properly chargeable in connection with construction of the Project.

6.7 Disbursement of Funds. The disbursement of PLHA Program Funds shall occur within the normal course of CITY business (approximately 30 days) after the CITY receives the Certification and Request for PLHA Program Funds with correct supporting documentation and to the extent of annually allocated and available PLHA Program Funds.

ARTICLE 7. CONSTRUCTION OF THE PROJECT
Without waiver of limitation, the parties agree as follows:

7.1 Pre-Construction Meeting Regarding PLHA Program Processes and Procedures. The CITY may schedule, and the DEVELOPER shall attend, a meeting prior to construction for the purpose of outlining the Project processes and procedures or the DEVELOPER may schedule, and the CITY shall attend, a meeting prior to the construction for the purpose of outlining the Project processes and procedures.

7.2 Commencement and Completion of Project. The DEVELOPER shall commence construction of the Project, and when completed, record a Notice of Completion of construction of the Project in accordance with the Project Schedule as identified in EXHIBIT “B” and provide the CITY with a copy of the recordation.

7.3 Contracts and Subcontracts. Consistent with Section 5.3, all hazardous waste abatement, construction work and professional services for the Project shall be performed by persons or entities licensed or otherwise legally authorized to perform the applicable work or service in the State of California and the City of Clovis. The DEVELOPER shall provide the CITY with copies of all agreements it has entered into with 38 AGENDA ITEM NO. 6.
20 any and all general contractors or subcontractors for this Project. The DEVELOPER shall require that each such general contractor agreement contain a provision whereby the party(ies) to the agreement, other than the DEVELOPER, agree to: (i) notify the CITY immediately of any event of default by the DEVELOPER thereunder, (ii) notify the CITY immediately of the filing of a mechanic’s lien, (iii) notify the CITY immediately of termination or cancellation of the construction agreement on the Project, and (iv) provide the CITY, upon the CITY’s request, an Estoppel Certificate certifying that the agreement is in full force and effect and the DEVELOPER is not in default thereunder. The DEVELOPER agrees to notify the CITY immediately of termination or cancellation of any such agreement(s), notice of filing of a mechanic’s lien, or breach or default by other party(ies) thereto.

7.4 Damage to Property. To the extent consistent with the requirements of any permitted encumbrance, or as otherwise approved by the CITY, and subject to Article 9 of this Agreement, if any building or improvement constructed on the Property is damaged or destroyed by an insurable cause, the DEVELOPER shall, at its cost and expense, diligently undertake to repair or restore said buildings and improvements consistent with the original plans and specifications of the Project. Such work or repair shall occur within ninety (90) days after the insurance proceeds are made available to the DEVELOPER and shall be completed within two years thereafter. All insurance proceeds collected for such damage or destruction shall be applied to the cost of such repairs or restoration and, if such insurance proceeds shall be insufficient for such purpose, the DEVELOPER shall use its best efforts to make up the deficiency.

7.5 Fees, Taxes and Other Levies. The DEVELOPER shall be responsible for payment of all fees, assessments, taxes, charges, and levies imposed by any public authority or utility company with respect to the Property or the Project and shall pay such charges prior to delinquency. However, the DEVELOPER shall not be required to pay and discharge any such charge so long as: (a) the legality thereof is being contested diligently and in good faith and by appropriate proceedings, and (b) if requested by the CITY, the DEVELOPER deposits with the CITY any funds or other forms of assurances that the CITY, in good faith, may determine from time to time are appropriate to protect the CITY from the consequences of the contest being unsuccessful. The DEVELOPER shall have the right to apply for and obtain an abatement and/or exemption of the Project from real property taxes in accordance with all applicable rules and regulations, including applicable provisions of the California Revenue and Taxation Code.

7.6 Financing. The DEVELOPER shall promptly inform the CITY of any new financing or funding not included in the Budget for the Project, and the DEVELOPER shall provide the CITY with copies of all agreements with Funding Sources for the Project. The DEVELOPER shall require each agreement with all Funding Sources not included in the Budget to contain a provision whereby the party(ies) to the agreement other than the DEVELOPER, if permitted by the party(ies) applicable rules and regulations, agree to notify the CITY immediately of any event of default by the DEVELOPER thereunder.

Should the DEVELOPER not comply with all the obligations of this section, the Loan shall become immediately due and payable as provided for in this Agreement. This Section shall survive expiration or termination of this Agreement. 39 AGENDA ITEM NO. 6.
21 7.7 Inspections. The DEVELOPER shall permit, facilitate, and require its contractors and consultants to permit and facilitate observation and inspection of the Project at the job site by the CITY and other public authorities during reasonable business hours, for the purpose of determining compliance with this Agreement, including without limitation those annual on-site Property inspections required of the CITY.

7.8 Utilities. The DEVELOPER shall be responsible, at its sole cost and expense, to determine the location of any utilities on the Property and to negotiate with the utility companies for, and to relocate the utilities, if any, as necessary to complete the Project.

7.9 Insurance and Bonds. The DEVELOPER shall submit for CITY approval bonds, certificates and applicable endorsements for all insurance and bonds required by this Agreement in accordance with Article 9.

7.10 Mechanic’s Liens and Stop Notices. If any claim of lien is filed against the Property or a stop notice affecting any financing, PLHA Program Funds or funding sources for the Project is served on the CITY or any other third party in connection with the Project, the DEVELOPER shall, within twenty (20) days of such filing or service, either pay and fully discharge the lien or stop notice, effect the release of such lien or stop notice by delivering to the CITY a surety bond in sufficient form and amount, or provide the CITY with other assurance satisfactory to the CITY that the claim of lien or stop notice will be paid or discharged.

A. If the DEVELOPER fails to discharge, bond, or otherwise satisfy the CITY with respect to any lien, encumbrance, charge, or claim referred to in Section 7.10 above, then, in addition to any other right or remedy, the CITY may, but shall not be obligated to, discharge such lien, encumbrance, charge, or claim at the DEVELOPER’s expense. Alternatively, the CITY may require the DEVELOPER to immediately deposit with the CITY, the amount necessary to satisfy such lien or claim and any costs, pending resolution thereof. The CITY may use such deposit to satisfy any claim or lien that is adversely determined against the DEVELOPER. The DEVELOPER hereby agrees to indemnify and hold the CITY harmless from liability for such liens, encumbrances, charges or claims together with all related costs and expenses.

7.11 Permits and Licenses. The DEVELOPER shall submit, for CITY approval, all the necessary permits and licenses required for commencement of construction. As the CITY may reasonably request, the DEVELOPER, at its sole cost and expense, shall provide to the CITY copies of any and all permit approvals and authorizations including plot plan, plat, zoning variances, sewer, building, grading, demolition, and other permits required by governmental authorities other than the CITY in pursuit of the Project, and for its stated purposes in accordance with all applicable building, environmental, ecological, landmark, subdivision, zoning codes, laws, and regulations.

7.12 Plans and Specifications. The DEVELOPER has submitted to the CITY preliminary plans and specifications for the Project.
40 AGENDA ITEM NO. 6.
22 A. This Agreement shall contain by reference the design and site plan of the Project; such design must be approved by the City.

B. Before commencement of construction, the DEVELOPER shall submit to the CITY, for its review and approval, the final plans and specifications for the Project. The DEVELOPER shall construct the Project in full conformance with the plans and specifications and modifications thereto approved by the CITY. The DEVELOPER shall obtain the CITY’s prior written approval for any modifications to the Project plans and specifications.

7.13 Project Responsibilities/Public Work-Prevailing Wage Requirements. The DEVELOPER shall be solely responsible for all aspects of the DEVELOPER’s conduct in connection with the Project, including but not limited to, compliance with all local, State and federal laws including without limitation, as to prevailing wage and public bidding requirements. Without limiting the foregoing, the DEVELOPER shall be solely responsible for the quality and suitability of the work completed and the supervision of all contracted work, qualifications and financial conditions of and performance of all contracts, subcontractors, consultants and suppliers. Any review or inspection undertaken by the CITY with reference to the Project and/or payroll monitoring/auditing is solely for the purpose of determining whether the DEVELOPER is properly discharging its obligation to the CITY and shall not be relied upon by the DEVELOPER or by any third parties as a warranty or representation by the CITY as to governmental compliance and/or the quality of work completed for the Project.

7.14 Property Condition. The DEVELOPER shall maintain the Project and all improvements on site in a reasonably good condition and repair (and, as to landscaping, in a healthy condition), all according to the basic design and related plans, as amended from time to time. The DEVELOPER and those taking direction under the DEVELOPER shall: (i) maintain all on-site improvements according to all other applicable law, rules, governmental agencies and bodies having or claiming jurisdiction and all their respective departments, bureaus, and officials; (ii) keep the improvements free from graffiti; (iii) keep the Project Property free from any accumulation of debris or waste material; (iv) promptly make repairs and replacements to on-site improvements; (iv) promptly replace any dead, or diseased plants and/or landscaping (if any) with comparable materials, and (v) enforce tenant lease terms.

7.15 Quality of Work. The DEVELOPER shall ensure that construction of the Project employs building materials of a quality suitable for the requirements of the Project.

The DEVELOPER shall cause completion of the construction of the Project on the Property in full conformance with applicable local, State, and federal laws, statutes, regulations, and building and safety codes.

7.16 Relocation. If and to the extent that the proposed Project results in the permanent or temporary displacement of residential tenants, the DEVELOPER shall comply with all applicable local, State, and federal statutes and regulations with respect to relocation planning, advisory assistance, and payment of monetary benefits. The DEVELOPER shall be solely responsible for payment of any relocation benefits to any 41 AGENDA ITEM NO. 6.
23 displaced persons and any other obligations associated with complying with said relocation laws.

7.17 Reporting Requirements. The DEVELOPER shall submit to the CITY the following Project reports:

A. Project Development Quarterly Reports: From the date of execution of this Agreement, until the DEVELOPER records a Notice of Completion, the DEVELOPER shall submit a Quarterly Report, in a form approved by the CITY, which will include, at a minimum, the following information: progress of the Project and affirmative marketing efforts. The Quarterly Reports are due 15 days after each March 31st, June 30th, September 30th, and December 31st, during said period.

B. Annual Project Rental Reports: Annually, beginning on the first day of the month following the recording of the Project Notice of Completion, and continuing until the termination of the Agreement, the DEVELOPER shall submit an Annual Rent Roll Report to the CITY, in a form approved by the CITY. The Annual Report shall include, at a minimum, the following information: occupancy of each Project Unit including the annual income and the household size, the date occupancy commenced, certification from an officer of the DEVELOPER that the Project is in compliance with the Affordability requirements, and such other information the CITY may be required by law to obtain. The DEVELOPER shall provide any additional information reasonably requested by the CITY upon request and at the annual monitoring of the property.

C. The DEVELOPER shall pay to the CITY an annual fee to cover the CITY’s actual costs of monitoring the Project during the Affordability Period. The annual fee shall be in an amount reflecting the CITY’s estimated costs of monitoring, oversight, and physical inspection of the Project. Monitoring fees shall be paid in an amount not to exceed $5,000 per calendar year, beginning on the date the Project receives its certificate of occupancy, and may increase each year thereafter by up to 3%.

D. Annually, beginning on the first day of the month following the recording of the Notice of Completion for the Project, the DEVELOPER shall submit proof of property and liability insurance, as required in Article 9, listing the CITY as loss payee.

7.18 Scheduling and Extension of Time; Unavoidable Delay in Performance. It shall be the responsibility of the DEVELOPER to coordinate and schedule the work to be performed so that the commencement of the construction and issuance of the Notice of Completion will take place in accordance with the provisions of the Agreement and Project Schedule. The time for performance contained in the Project Schedule shall be automatically extended upon the following:

A. The time for performance of provisions of the Agreement by either party shall be extended for a period equal to the period of any delay directly affecting the Project or this Agreement which is caused by: war, insurrection, strike or other labor disputes, lock-outs, riots, floods, earthquakes, fires, casualties, acts of God, acts of a public enemy, epidemics, quarantine restrictions, freight embargoes, lack of 42 AGENDA ITEM NO. 6.
24 transportation, suits filed by third parties concerning or arising out of this Agreement, or unseasonable weather conditions (force majeure). An extension of time for any of the above specified causes will be granted only if written notice by the party claiming such extension is sent to the other party within ten calendar days from the date the affected party learns of the commencement of the cause and the resulting delay and such extension of time is accepted by the other party in writing. In any event, the Project must be completed no later than 180 calendar days after the scheduled completion date specified in this Agreement, notwithstanding any delay caused by that included in this section.

B. Any and all extensions hereunder shall be by mutual written agreement of the CITY’s City Manager or designee and the DEVELOPER, which shall not cumulatively exceed 180 days. Any extension beyond 180 days shall require City Council Approval.

7.19 Project Completion. Upon completion of the construction of the Project, the DEVELOPER shall submit to the CITY: 1) certification in writing to that the Project has been substantially constructed in accordance with the plans and specifications, approved by the CITY; 2) a conformed copy of the recorded Notice of Completion; 3) a costcertifying final budget where the DEVELOPER shall identify the actual costs of construction of the Project. This final cost- certification shall identify costs in line-item format, consistent with the Project Budget. Upon a determination by the CITY that the DEVELOPER is in compliance with all of the DEVELOPER’s construction obligations, as specified in this Agreement. Upon the DEVELOPER taking the specified measures and meeting the specified standards, the DEVELOPER will certify to the CITY in writing.

ARTICLE 8. OPERATIONS OF THE PROJECT

8.1 Operation of the Project. The DEVELOPER or its contracted property management company shall lease, operate, and manage the Project in full conformity with the terms of this Agreement.

8.2 Occupancy Requirements. The PLHA Units shall be rented and occupied by, or if vacant, available for rental occupancy by Low-Income households whose income at the time of initial occupancy is not greater than 60% of the most recent annual median income, calculated and published by the State for the Fresno Metropolitan Statistical Area, applicable to such household’s size, and at an affordable rent consistent with PLHA Program Guidelines. Forty (40) of the Project Units shall be rented and occupied by, or if vacant, available for rental occupancy by those whose annual household income at the time of initial occupancy is not greater than 80% of the most recent annual median income, calculated and published by the State for the Fresno Metropolitan Statistical Area, applicable to such household’s size, and at an affordable rent consistent with PLHA Program Guidelines.

8.3 Leasing the PLHA Units. Before leasing any Project Units, the DEVELOPER or authorized property management company shall submit its proposed form of lease agreement for the CITY’s review and approval by the City Manager or 43 AGENDA ITEM NO. 6.
25 designee. The DEVELOPER or its authorized property management company covenants and agrees to utilize only leases that have been approved in advance by the CITY. The CITY shall respond to the DEVELOPER’s submission of a sample lease agreement within 30 days. Should the CITY not respond within thirty (30) days of the lease agreement submittal, the DEVELOPER shall be authorized to use the submitted sample lease agreement. Additionally, the DEVELOPER shall require that any property management company shall not terminate the tenancy or to refuse to renew or lease with a tenant of the Affordable Housing Units except for serious or repeated violation of the terms and conditions of the lease agreement, for violation of applicable federal, State, or local law, or for other good cause. Any such termination or refusal to renew must be preceded by not less than thirty (30) days’ written notice served by the DEVELOPER or its authorized management entity upon the tenant specifying the grounds for such action. The DEVELOPER agrees it shall annually report or require its authorized property management company to report to the CITY the number of leases that were not renewed or terminated and the reason for such non-renewal or termination.

8.4 Lease of Project Unit Provisions. In addition to the PLHA requirements, the leases are subject to the following:

A. The leases for the Affordable Housing Units shall authorize DEVELOPER or its authorized property management company to immediately terminate the tenancy of any Household of which one or more of its members misrepresented any fact material to the Household’s qualification as a Low-Income Household. Each such lease agreement shall also provide that the Household is subject to annual certification, and that, if the Household’s annual income increases above the applicable limits for LowIncome, such Household’s rent may be subject to increase to 30% of the Household’s actual adjusted monthly income.

8.5 Final Management Plan. Before leasing any Project Units, and at least sixty (60) calendar days prior to the construction Completion Date, the DEVELOPER shall submit to the CITY, for review and approval by the City Manager or designee, a plan for marketing and managing the proposed Affordable Housing Units (Property Management Plan). The Property Management Plan shall address in detail how the DEVELOPER or its designated management company plans to market the availability of the Affordable Housing Units to prospective tenants and how the DEVELOPER or its authorized property management company plans to certify the eligibility of potential tenants. The Property Management Plan shall also address how the DEVELOPER and/or the authorized property management company plan to manage and maintain the Affordable Housing Units in accordance with PLHA Program Guidelines and shall include appropriate financial information and documentation. The Property Management Plan shall contain detailed descriptions of policies and procedures with respect to tenant selections and evictions. Topics to be covered in these procedures shall include at a minimum the following:
• Interviewing procedures for prospective tenants;
• Previous rental history of tenants with references;
• Credit reports;
44 AGENDA ITEM NO. 6.
26 • Criminal background checks;
• Deposit amounts, purpose, use and refund policy;
• Employment/Income verification;
• Occupancy restrictions;
• Income Limits;
• Equal Housing Opportunity Statement;
• Restrictions on use of the premises; and
• Tenant/Landlord dispute resolution procedures.

A. The Property Management Plan shall contain copies of all standardized forms associated with the above listed topics. The Property Management Plan shall include a form lease agreement that the DEVELOPER proposes to enter into with the Low-Income tenants. The DEVELOPER and/or its authorized property management company shall abide by the terms of this Property Management Plan, approved by the CITY, in marketing, managing, and maintaining the Affordable Housing Units.

B. At least ninety (90) calendar days prior to the Project Completion Date, the DEVELOPER shall also submit proposed property management contract to the CITY for prior review and approval by the City Manager or designee. The CITY shall have the right to review any proposed amendments, other than renewals to the property management contract, and any new management contracts during the term of this Agreement. Such management contract(s) shall contain a provision expressing this right.

8.6 Property Management. The DEVELOPER shall comply with the following:

A. Management Responsibilities. The DEVELOPER directly and/or through its designated property management entity, is specifically responsible for all management functions with respect to the Project and Property including, without limitation, the selection of tenants, certification and re-certification of Household size and income, evictions, collection of rents and deposits, construction management, affirmative marketing, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items and security. The CITY shall have no responsibility for such property management of the Project.

8.7 Maintenance and Security. The DEVELOPER shall (i) at its own expense maintain the Project in good condition, in good repair and in decent, safe, sanitary, habitable and tenantable living conditions for the benefit of the Project Unit occupants.

The DEVELOPER shall not commit or permit any waste on or to the Project and shall prevent and/or rectify any physical deterioration of the Project. The DEVELOPER shall maintain the Units in conformance with all applicable federal, State, and local laws, ordinances, codes and regulations, the Property Management Plan, and this Agreement.

8.8 Nondiscrimination. Forty-six (46) of the Project Units shall be available for occupancy on a continuous basis to Households who are income eligible. The DEVELOPER shall not illegally discriminate or segregate in the constructed complex, the use, enjoyment, occupancy or conveyance of any part of the Project or Property on the 45 AGENDA ITEM NO. 6.
27 basis of race, color, ancestry, national origin, religion, sex, marital status, family status, source of income/rental assistance subsidy, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS-related conditions (ARC), sexual orientation, or any other arbitrary basis. The DEVELOPER shall otherwise comply with all applicable local, State, and federal laws concerning nondiscrimination in housing.

Neither the DEVELOPER nor any person claiming under or through the DEVELOPER, shall establish or permit any such practice or practices of illegal discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants or vendees of any Project Unit or in connection with employment of persons for the construction of any Project Unit. All deeds or contracts made or entered into by the DEVELOPER as to the Project or portion thereof, shall contain covenants concerning nondiscrimination consistent with this section. The DEVELOPER shall include a statement in all advertisements, notices, and signs for availability of Affordable Housing Units for rent to the effect that the DEVELOPER is an Equal Housing Opportunity Provider.

A. Nothing in this section is intended to require the DEVELOPER to change the character, design, use or operation of the Project; or to require the DEVELOPER to obtain licenses or permits other than those required for the Project.

8.9 Rent Schedule and Utility Allowances. The DEVELOPER covenants and agrees not to charge rent to tenants for Affordable Housing Units in an amount which exceeds those rents prescribed to the Project as they associate with particular income and rent limitations levels as established annually by the State of California, consistent with the PLHA Program requirements applicable to the Affordable Housing Units in the Fresno, California area, and further covenants not to impose a monthly allowance for utility services to tenants of such Affordable Housing Units in excess of an amount approved by the local Housing Authority. The DEVELOPER agrees to furnish to the CITY with a certificate setting forth the maximum monthly rentals for the Affordable Housing Units and the monthly allowances for utilities and services to be charged during any annual period until the expiration of the Affordability Period. The DEVELOPER shall reexamine the income of each tenant Household living in the Affordable Housing Units at least annually.

ARTICLE 9. INSURANCE, INDEMNITY AND BONDS
Without waiver of limitation, the parties agree as follows regarding the DEVELOPER’S Insurance and Indemnity Obligations:

9.1 Insurance Requirements. (a) Throughout the life of this Agreement, DEVELOPER shall pay for and maintain in full force and effect all insurance as required herein with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated no less than “A-VII” in the Best’s Insurance Rating Guide, or (ii) as may be authorized in writing by CITY'S Risk Manager or his/her designee at any time and in his/her sole discretion. The required policies of insurance as stated herein shall maintain limits of liability of not less than those amounts stated therein. However, the insurance limits available to CITY, its officers, 46 AGENDA ITEM NO. 6.
28 officials, employees, agents and volunteers as additional insureds, shall be the greater of the minimum limits specified therein or the full limit of any insurance proceeds to the named insured.
(b) If at any time during the life of the Agreement or any extension, DEVELOPER or any of its subcontractors fail to maintain any required insurance in full force and effect, all services and work under this Agreement shall be discontinued immediately until notice is received by CITY that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to CITY. Any failure to maintain the required insurance shall be sufficient cause for CITY to terminate this Agreement. No action taken by CITY pursuant to this section shall in any way relieve DEVELOPER of its responsibilities under this Agreement.

The phrase “fail to maintain any required insurance” shall include, without limitation, notification received by CITY that an insurer has commenced proceedings, or has had proceedings commenced against it, indicating that the insurer is insolvent. (c) The fact that insurance is obtained by DEVELOPER shall not be deemed to release or diminish the liability of DEVELOPER, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify CITY shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by DEVELOPER. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of DEVELOPER, vendors, suppliers, invitees, contractors, sub-contractors, subcontractors, or anyone employed directly or indirectly by any of them.

Coverage shall be at least as broad as:
(i) COMMERCIAL GENERAL LIABILITY insurance which shall be at least as broad as the most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01 and include insurance for “bodily injury,” “property damage” and “personal and advertising injury” with coverage for premises and operations (including the use of owned and non-owned equipment), products and completed operations, and contractual liability (including, without limitation, indemnity obligations under the Agreement) with limits of liability of not less than the following:
$2,000,000 per occurrence for bodily injury and property damage $2,000,000 per occurrence for personal and advertising injury $4,000,000 aggregate for products and completed operations $4,000,000 general aggregate applying separately to work performed under the Agreement
(ii) COMMERCIAL AUTOMOBILE LIABILITY insurance which shall be at least as broad as the most current version of Insurance Service Office (ISO) Business Auto Coverage Form CA 00 01, and include coverage for all owned, hired, and non-owned automobiles or other licensed vehicles (Code 1-Any Auto) with limits 47 AGENDA ITEM NO. 6.
29 of liability of not less than $1,000,000 per accident for bodily injury and property damage.
(iii) WORKERS’ COMPENSATION insurance as required under the California Labor Code.
(iv) EMPLOYEE LIABILITY insurance with limits of liability of not less than $1,000,000 each accident, $1,000,000 disease policy limit and $1,000,000 diseased each employee.
(v) BUILDERS RISK (Course of Construction) insurance, obtained by the DEVELOPER or subcontractor in an amount equal to the completion value of the Project with no coinsurance penalty provisions. (Only required if the project includes new construction of a building; or renovation of, or addition to, an existing building.)
(vi) CONTRACTOR POLLUTION with coverage for bodily injury, property damage or pollution clean-up costs that could result from of pollution condition, both sudden and gradual. Including a discharge of pollutants brought to the work site, a release of pre-existing pollutants at the site, or other pollution conditions with limits of liability of not less than the following:
$1,000,000 per occurrence
$2,000,000 general aggregate per annual policy period
In the event the work involves any lead-based, mold or asbestos environmental hazard, either the Automobile Liability insurance policy or the Pollution Liability insurance policy shall be endorsed to include Transportation Pollution Liability insurance covering materials to be transported by the DEVELOPER pursuant to this Agreement.

In the event the work involves any lead-based environmental hazard (e.g., leadbased paint), the DEVELOPER’s Pollution Liability insurance policy shall be endorsed to include coverage for lead based environmental hazards. In the event the DEVELOPER involves any asbestos environmental hazard (e.g., asbestos remediation), the DEVELOPER’s Pollution Liability insurance policy shall be endorsed to include coverage for asbestos environmental hazards. In the event this Agreement involves any mold environmental hazard (e.g., mold remediation), the Pollution Liability insurance policy shall be endorsed to include coverage for mold environmental hazards and “microbial matter including mold” within the definition of “Pollution” under the policy.

UMBRELLA OR EXCESS INSURANCE
In the event DEVELOPER purchases an Umbrella or Excess insurance policy(ies) to meet the “Minimum Limits of Insurance,” this insurance policy(ies) shall “follow form” and afford no less coverage than the primary insurance policy(ies). In addition, such Umbrella or Excess insurance policy(ies) shall also apply on a primary and noncontributory basis for the benefit of the CITY, its officers, officials, employees, agents and volunteers.
48 AGENDA ITEM NO. 6.
30 DEDUCTIBLES AND SELF-INSURED RETENTIONS
CONTRACTOR shall be responsible for payment of any deductibles contained in any insurance policy(ies) required herein and CONTRACTOR shall also be responsible for payment of any self-insured retentions.

OTHER INSURANCE PROVISIONS/ENDORSEMENTS
All policies of insurance required hereunder shall be endorsed to provide that the coverage shall not be cancelled, non-renewed, reduced in coverage or in limits except after thirty (30) calendar day written notice has been given to the CITY. Upon issuance by the insurer, broker, or agent of a notice of cancellation, non-renewal, or reduction in coverage or in limits, the DEVELOPER shall furnish the CITY with a new certificate and applicable endorsements for such policy(ies). In the event any policy is due to expire during the work to be performed for the CITY, the DEVELOPER shall provide a new certificate, and applicable endorsements, evidencing renewal of such policy not less than fifteen (15) calendar days prior to the expiration date of the expiring policy.

The General Liability, Pollution and Automobile Liability insurance policies shall be written on an occurrence form.

The General Liability, Automobile Liability and Pollution Liability insurance policies shall name the CITY, its officers, officials, agents, employees, and volunteers as an additional insured for ongoing and completed operations. All such policies of insurance shall be endorsed so the DEVELOPER’s insurance shall be primary and no contribution shall be required of the CITY.

The coverage shall contain no special limitations on the scope of protection afforded to the CITY, its officers, officials, employees, agents, and volunteers.

If the DEVELOPER maintains higher limits of liability than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits of liability maintained by the DEVELOPER.

The Builders Risk (Course of Construction) insurance policy shall be endorsed to name the CITY as loss payee.

All insurance policies required including the Workers’ Compensation insurance policy shall contain a waiver of subrogation as to the City, its officers, officials, agents, employees, and volunteers.

The DEVELOPER shall furnish the CITY with all certificate(s) and applicable endorsements effecting coverage required hereunder. All certificates and applicable endorsements are to be received and approved by the CITY’s Risk Manager or his/her designee before work commences. Upon request of the CITY, the DEVELOPER shall immediately furnish the CITY with a complete copy of any insurance policy required under this Agreement, including all endorsements, with said copy certified by the underwriter to 49 AGENDA ITEM NO. 6.
31 be a true and correct copy of the original policy. This requirement shall survive expiration or termination of this Agreement.

In the event of a partial or total destruction by the perils insured against of any or all of the work and/or materials herein provided for at any time prior to the final completion of the Agreement and the final acceptance by the CITY of the work or materials to be performed or supplied thereunder, the DEVELOPER shall promptly reconstruct, repair, replace, or restore all work or materials so destroyed or injured at his/her sole cost and expense. Nothing herein provided for shall in any way excuse the DEVELOPER or his/her insurance company from the obligation of furnishing all the required materials and completing the work in full compliance with the terms of this Agreement.9.2

9.2 Indemnification. To the furthest extent allowed by law, DEVELOPER shall indemnify, hold harmless and defend the CITY and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by the CITY, the DEVELOPER or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of performance of this Agreement. The DEVELOPER’s obligations under the preceding sentence shall apply regardless of whether the CITY or any of its officers, officials, employees, agents, or volunteers are passively negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs, or damages caused by the active negligence or by the willful misconduct of the CITY or any of its officers, officials, employees, agents, or volunteers.

If DEVELOPER should subcontract all or any portion of the work to be performed under this Contract, DEVELOPER shall require each subcontractor to indemnify, hold harmless and defend CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.

This section shall survive termination or expiration of this Agreement.

9.3 Property Insurance. The DEVELOPER shall maintain in full force and effect, throughout the remaining life of this Agreement, a policy or policies of property insurance acceptable to the CITY, covering the Project premises, with limits reflective of the value of the Project premises upon issuance of the Certificate of Occupancy or substantial completion of the Project referenced in this Agreement, including fire and Extended Comprehensive Exposure (ECE) coverage in an amount, form, substance, and quality as acceptable to the CITY’s Risk Manager. The CITY shall be added by endorsement as a loss payee thereon.

9.4 Bond Obligations. The DEVELOPER or its General Contractor shall obtain, pay for, and deliver good and sufficient payment and performance bonds along with a Primary Obligee, Co-Obligee or Multiple Obligee Rider in a form acceptable to the CITY from a corporate surety, admitted by the California Insurance Commissioner to do 50 AGENDA ITEM NO. 6.
32 business in the State of California and Treasury-listed, in a form satisfactory to the CITY and naming the CITY as Obligee.

A. The “Faithful Performance Bond” shall be at least equal to 100% of the DEVELOPER’s estimated construction costs as reflected in the Budget attached hereto as EXHIBIT “C” to the guarantee faithful performance of the Project, within the time prescribed, in a manner satisfactory to the CITY, consistent with this Agreement, and that all material and workmanship will be free from original or developed defects.

B. The “Payment Bond” or “Material and Labor Bond” shall be at least equal to 100% of construction costs approved by the CITY to satisfy claims of material suppliers and of mechanics and laborers employed for this Project. The bond shall be maintained by the DEVELOPER in full force and effect until the Project is completed and until all claims for materials and labor are paid and as required by the applicable provisions of the California Civil Code.

ARTICLE 10. DEFAULT AND REMEDIES

10.1 Events of Default. The parties agree that each of the following shall constitute an "Event of Default" by the DEVELOPER for purposes of this Agreement after the cure period in Section 10.2 has expired without a cure:

A. The DEVELOPER’s use of PLHA Program Funds for costs other than eligible costs or for uses not permitted by the terms of this Agreement; B. The DEVELOPER’s failure to obtain and maintain the insurance coverage required under this Agreement;
C. Except as otherwise provided in this Agreement, the failure of the DEVELOPER to punctually and properly perform any other covenant or agreement contained in this Agreement including without limitation the following:
(1) the DEVELOPER’s material deviation in the Project work specified in the Project Description as identified in this Agreement, without the CITY’s prior written consent;
(2) the DEVELOPER’s use of defective or unauthorized materials or defective workmanship in pursuit of the Project;
(3) the DEVELOPER’s failure to commence or complete the Project, as specified in this Agreement, unless delay is permitted under Section 7.18 of this Agreement;
(4) cessation of the Project for a period of more than fifteen (15) consecutive days (other than as provided at Section 7.18 of this Agreement) prior to submitting to the CITY certification that the Project is complete; 51 AGENDA ITEM NO. 6.
33 (5) any material adverse change in the condition of the DEVELOPER or its development team, or the Project that gives the CITY reasonable cause to believe that the Project cannot be completed by the scheduled completion date according to the terms of this Agreement;
(6) the DEVELOPER’s failure to remedy any deficiencies in record keeping or failure to provide records to the CITY upon the CITY’s request; and (7) the DEVELOPER’s failure to comply with any federal, State or local laws or applicable CITY restrictions governing the Project, including but not limited to provisions of this Agreement pertaining to equal employment opportunity, nondiscrimination and lead- based paint.

D. Any representation, warranty, or certificate given or furnished by or on behalf of the DEVELOPER shall prove to be materially false as of the date of which the representation, warranty, or certification was given, or that the DEVELOPER concealed or failed to disclose a material fact to the CITY, provided, however, that if any representation, warranty, or certification that proves to be materially false is due merely to the DEVELOPER’s inadvertence, the DEVELOPER shall have a thirty (30) day opportunity after written notice thereof to cause such representation, warranty, or certification to be true and complete in every respect; E. The DEVELOPER shall file, or have filed against it, a petition of bankruptcy, insolvency, or similar law, State or federal, or shall file any petition or answer seeking, consenting to, or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief, and such petition shall not have been vacated within 90 days; or shall be adjudicated bankrupt or insolvent, under any present or future statute, law, regulation, under State or federal law, and such judgment or decree is not vacated or set aside within 90 days;
F. The DEVELOPER’s failure, inability or admission in writing of its inability to pay its debts as they become due or the DEVELOPER assignment for the benefit of creditors;
G. A receiver, trustee, or liquidator shall be appointed for the DEVELOPER or any substantial part of the DEVELOPER’s assets or properties, and not be removed within ten days;
H. The DEVELOPER’s breach of any other material condition, covenant, warranty, promise, or representation contained in this Agreement not otherwise identified within this Section.

I. Any substantial or continuous breach by the DEVELOPER of any material obligation owned by the DEVELOPER imposed by any other agreement with respect to the financing, of the Project, whether or not the CITY is a party to such agreement after expiration of all notice and cure periods contained within such document. 52 AGENDA ITEM NO. 6.
34 10.2 Notice of Default and Opportunity to Cure. The CITY shall give written notice to the DEVELOPER, of any Event of Default by specifying: (1) the nature of the event or deficiency giving rise to the default; (2) the action required to cure the deficiency, if any action to cure is possible, and (3) a date, which shall not be less than the lesser of any time period provided in this Agreement, any time period provided for in the notice, or thirty (30) calendar days from the date of the notice, by which such deficiency must be cured, provided that if the specified deficiency or default cannot reasonably be cured within the specified time, with the CITY’s written consent, the DEVELOPER shall have an additional reasonable period to cure so long as it commences cure within the specified time and thereafter diligently pursues the cure in good faith. The CITY acknowledges and agrees that the DEVELOPER shall have the right to cure any defaults hereunder and that notice as provided herein.

10.3 Remedies Upon an Event of Default. Upon the happening of an Event of Default and a failure to cure said Event of Default within the time specified, the CITY’s obligation to disburse PLHA Program Funds shall terminate. The CITY may also at its option and without notice institute any action, suit, or other proceeding in law, in equity or otherwise, which it shall deem necessary or proper for the protection of its interests and may without limitation proceed with any or all of the following remedies in any order or combination that the CITY may choose in its sole discretion:

A. Terminate this Agreement immediately upon written notice; B. Bring an action in equitable relief: (1) seeking specific performance of the terms and conditions of this Agreement, and/or (2) enjoining, abating or preventing any violation of said terms and conditions, and/or (3) seeking declaratory relief; and C. Pursue any other remedy allowed by law or in equity or under this Agreement.

ARTICLE 11. GENERAL PROVISIONS
Without waiver of limitation, the parties agree that the following general provisions shall apply in the performance hereof:

11.1 Amendments. No modification or amendment of any provision of this Agreement shall be effective unless made in writing, first consented to by the State of California Department of Housing and Community Development, and signed by the parties hereto. The City recognizes that Senior Lenders and equity investors may request revisions to the Loan Documents to be consistent with their funding and investing requirements. Therefore, the CITY agrees to consider and negotiate as to any reasonable changes to this Agreement to address such requests, subject to approval as to form by the City Manager or designee and the City Attorney’s Office. Any material changes, however, shall require further City Council approval.

11.2 Attorney's Fees. If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the 53 AGENDA ITEM NO. 6.
35 prevailing party will be entitled to recover from the other party its reasonable attorney's fees and legal expenses.

11.3 Binding on All Successors and Assigns. Unless otherwise expressly provided in this Agreement, all the terms and provisions of this Agreement shall be binding on and inure to the benefit of the parties hereto, and their respective heirs, successors, assigns, and legal representatives.

11.4 Counterparts. This Agreement may be executed in counterparts, each of which when executed and delivered will be deemed an original, and all of which together will constitute one instrument. The execution of this Agreement by any party hereto will not become effective until counterparts hereof have been executed by all parties hereto.

11.5 Disclaimer of Relationship. Nothing contained in this Agreement, nor any act of the CITY or of the DEVELOPER, or of any other person, shall in and by itself be deemed or construed by any person to create any relationship of third-party beneficiary, or of principal and agent, of limited or general partnership, or of joint venture.

11.6 Discretionary Governmental Actions. Certain planning, land use, zoning and other permits and public actions required in connection with the Project including, without limitation, the approval of this Agreement, the environmental review and analysis under CEQA or any other statute, and other transactions contemplated by this Agreement are discretionary government actions. Nothing in this Agreement obligates the CITY or any other governmental entity to grant final approval of any matter described herein. Such actions are legislative, quasi-judicial, or otherwise discretionary in nature. The CITY cannot and does not commit in advance that it will give final approval to any matter. The CITY shall not be liable, in contract, law or equity, to the DEVELOPER or any of its executors, administrators, transferees, successors-in-interest or assigns for any failure of any governmental entity to grant approval on any matter subject to discretionary approval.

11.7 Effective Date. This Agreement shall be effective upon the date first above written, upon the CITY and the DEVELOPER’s complete execution following City Council approval and recordation of related documents.

11.8 Entire Agreement. This Agreement represents the entire and integrated agreement of the parties with respect to the subject matter hereof. This Agreement supersedes all prior negotiations, representations, or agreements, either written or oral.

11.9 Exhibits. Each exhibit and attachment referenced in this Agreement is, by the reference, incorporated into and made a part of this Agreement.

11.10 Expenses Incurred Upon Event of Default. The DEVELOPER shall reimburse the CITY for all reasonable expenses and costs of collection and enforcement, including reasonable attorney's fees, incurred by the CITY as a result of one or more Events of Default by the DEVELOPER under this Agreement.

11.11 Governing Law and Venue. Except to the extent preempted by applicable federal law, the laws of the State of California shall govern all aspects of this Agreement, 54 AGENDA ITEM NO. 6.
36 including execution, interpretation, performance, and enforcement. Venue for filing any action to enforce or interpret this Agreement will be Fresno, California.

11.12 Headings. The headings of the articles, sections, and paragraphs used in this Agreement are for convenience only and shall not be read or construed to affect the meaning or construction of any provision.

11.13 Interpretation. This Agreement in its fully executed form is the result of the combined efforts of the parties. Any ambiguity will not be construed in favor or against either party, but rather by construing the terms in accordance with their generally accepted meaning.

11.14 No Assignment or Succession. The DEVELOPER shall not sell, transfer, assign or otherwise dispose of all or a material part of any interest it might hold in the Property without the prior written consent of the CITY, which consent shall not be unreasonably withheld or delayed.

11.15 No Third-Party Beneficiary. No contractor, subcontractor, mechanic, materialman, laborer, vendor, or other person hired or retained by the DEVELOPER shall be, nor shall any of them be deemed to be, third-party beneficiaries of this Agreement, but each such person shall be deemed to have agreed: (a) that they shall look to the DEVELOPER as their sole source of recovery if not paid, and (b) except as otherwise agreed to by the CITY and any such person in writing, they may not enter any claim or bring any such action against the CITY under any circumstances. Except as provided by law, or as otherwise agreed to in writing between the CITY and such person, each such person shall be deemed to have waived in writing all right to seek redress from the CITY under any circumstances whatsoever.

11.16 No Waiver. Neither failure nor delay on the part of the CITY in exercising any right under this Agreement shall operate as a waiver of such right, nor shall any single or partial exercise of any such right preclude any further exercise thereof or the exercise of any other right. No waiver of any provision of this Agreement or consent to any departure by the DEVELOPER therefrom shall be effective unless the same shall be in writing, signed on behalf of the CITY by a duly authorized officer thereof, and the same shall be effective only in the specific instance for which it is given. No notice to or demand on the DEVELOPER in any case shall entitle the DEVELOPER to any other or further notices or demands in similar or other circumstances or constitute a waiver of any of the CITY's right to take other or further action in any circumstances without notice or demand.

11.17 Non-reliance. The DEVELOPER hereby acknowledges having obtained such independent legal or other advice as it has deemed necessary and declares that in no manner has it relied on the CITY, its agents, employees, or attorneys in entering into this Agreement.

11.18 Notice. Any notice to be given to either party under the terms of this Agreement shall be given by certified United States mail, postage prepaid, return receipt 55 AGENDA ITEM NO. 6.
37 requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties.

If to the CITY:

City of Clovis
Affordable Housing Programs
1033 Fifth Street
Clovis, CA 93612
If to DEVELOPER:

Clovis 135 Osmun, LP, a California Limited Partnership, AHDC, its Managing General Partner
Attention: Laurie Doyle, Executive Vice President
3128 Willow Ave., Suite 101
Clovis, CA 93612
BOB, its Administrative General Partner
Attention: Michael Duarte, CEO
1331 Fulton Street
Fresno, CA 93721
And
Baker Manock & Jensen, PC
Attn: Kenneth J. Price
5260 N. Palm Avenue, Suite 201
Fresno, CA 93704

11.19 Precedence of Documents. In the event of any conflict between the body of this Agreement and any exhibit or attachment hereto, the terms and conditions of the body of this Agreement will control.

11.20 Recording of Documents. The DEVELOPER agrees to cooperate with the CITY and execute any documents required, promptly upon the CITY’s request, and to promptly effectuate the recordation of this Agreement, the Declaration of Restrictions, the Deed of Trust, and any other documents/instruments that the CITY requires to be recorded, in the Official Records of Fresno County, California, consistent with this Agreement.

11.21 Remedies Cumulative. All powers and remedies given by this Agreement shall be cumulative and in addition to those otherwise provided by law. 56 AGENDA ITEM NO. 6.
38 11.22 Severability. The invalidity, illegality, or un-enforceability of any one or more of the provisions of this Agreement shall not affect the validity, legality, or enforceability of the remaining provisions hereof or thereof.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date appearing in the opening paragraph of this Agreement.

DEVELOPER:

Clovis 135 Osmun, LP
A California Limited Partnership
Managing General Partner:

Central California Housing Corporation, a
California Corporation (dba Affordable
Housing Development Corporation)
By: _________________________________
Austin Herzog, President
Administrative General Partner:

Better Opportunities Builder, Inc., a
California non-profit public benefit corporation
By: ________________________________
Michael Duarte, Chief Executive Officer
CITY:

City of Clovis,
A California Municipal Corporation
By: ________________________________
John Holt, City Manager
ATTEST:

By: ________________________________
Andy Haussler, Interim City Clerk
APPROVED AS TO FORM:

By: ________________________________
Scott G. Cross, City Attorney
(Attach notary certificate of acknowledgement for each signature) 57 AGENDA ITEM NO. 6.

EXHIBIT A

PROPERTY DESCRIPTION
58 AGENDA ITEM NO. 6.

Legal Description
The land described herein is situated in the State of California, County of Fresno, City of Clovis, described as follows:

PARCEL 1:

That portion of the South half of the North half of the Northwest quarter of the Southwest quarter of Section 4, Township 13 South, Range 21 East, Mount Diablo Base and Meridian, lying East of the centerline of Osmun Street produced Northerly and West of the center-line of the Alley in Block 11 of East Clovis according to the map thereof recorded in Book 2 of Record of Surveys at Page 47, Fresno County Records, when said center-line of alley is produced Northerly.

EXCEPTING THEREFROM the North 173 feet thereof.

APN: 492-080-85
PARCEL 2:

The South 150 feet of the East 475.73 feet of the South half of the North half of the Northwest quarter of the Southwest quarter of Section 4, Township 13 South, Range 21 East, Mount Diablo Base and Meridian, according to the United States Government Township Plats; EXCEPTING THEREFROM the East 275.73 feet thereof.

ALSO EXCEPTING THEREFROM the following described parcel for street purposes; Beginning at the Southwest corner of the TRACT NO. 2860, according to the map thereof recorded in Book 32 Page 40 of Plats, records of Fresno County, also being a point on the centerline of Baron Avenue; thence North 00° 35’ 42" East, a distance of 150 feet; thence Westerly a distance of 16.00 feet along a line parallel to South line of the North half of the Northwest quarter of the Southwest quarter of Section 4, Township 13 South, Range 21 East, according to the United States Government Township Plats approved by the Surveyor General on July 15, 1854; thence Southwesterly a distance of 152 feet, to an Intersecting point on the South line of the North half of the Northwest quarter of the Southwest quarter of said Section 4, being 31.00 feet West of the Southwest corner of Tract No. 3860; thence Easterly on said South line a distance of 31.00 feet to the point of beginning.

TOGETHER WITH that certain real property located in the East 475.73 feet of the South half of the North half of the Northwest quarter of the Southwest quarter of Section 4, Township 13 South, Range 21 East, Mount Diablo Base and Meridian, according to the United States Government Township Plats approved by the Surveyor General on July 15, 1854.

Excepting the East 275.73 feet; being more particularly described as follows:

The South 17 feet of the North 180 feet of the East 475.73 feet of the South half of the North half of the Northwest quarter of said Section 4, excepting the East 275.73 feet.

APN: 492-080-74
PARCEL 3:

Lots 21 and 22 of Block 11 of East Clovis, according to the map thereof recorded in Book 2, page 47 of Records of Surveys, records of said County
59 AGENDA ITEM NO. 6.

TOGETHER WITH, that portion of an unnamed public street as abandoned by and pursuant to the provisions as disclosed Resolution no. 96-65, recorded August 23, 1996, as Instrument No. 96104979, described as follows:

A parcel of land in the South half of the Northwest quarter of the Southwest quarter of Section 4, Township 13 South, Range 21 East, Mount Diablo Base and Meridian, according to Official Plat thereof, described as follows:

Beginning at the Northwest corner of Lot 22, Block 11, of The Town of East Clovis as shown on Map thereof Recorded in Book 2 of Record of Surveys, at Page 47, Fresno County Records; thence Easterly along the Northerly line of said lot 22 to the Northeast corner of said Lot 22; thence Northerly along the Northerly prolongation of the Easterly line of said Lot 22, said Easterly line also being the Westerly line of the alley in said Block 11, to the Southerly line of that certain parcel of land described in deed to International Church of the Foursquare Gospel, Recorded June 29, 1960, in Book 4407 at Page 465, Official Records of said County, said Southerly line also being the Northerly line of said South half; thence Westerly along said Southerly line to its intersection with the Northerly prolongation of the Westerly line of said Lot 22, last said Westerly line also being the Easterly line of Osmun Street as shown on said Map of the Town of East Clovis; thence Southerly along last said Northerly prolongation to the Point of Beginning.

APN: 492-080-86
PARCEL 4:

The South 9.06 feet of the North 173.00 feet of South half of the North half of the Northwest quarter of the Southwest quarter of Section 4, Township 13 South, Range 21 East, Mount Diablo Base and Meridian, lying East of the center-line of Osmun Street produced Northerly and West of the center-line of the alley in Block 11 of East Clovis according to the map thereof recorded in Book 2 of Record of Surveys at Page 47, Fresno County Records, when said centerline of alley is produced Northerly.

Excepting therefrom the West 35.00 feet thereof.

APN: 492-080-08 (portion)
APN: 492-080-85, 492-080-86, 492-080-74, 492-080-08 (ptn) 60 AGENDA ITEM NO. 6.

EXHIBIT B

PROJECT DESCRIPTION AND SCHEDULE
61 AGENDA ITEM NO. 6.

PROJECT DESCRIPTION
135 Osmun Apartments is a three-story affordable, senior (age restricted) apartment community that is comprised of 47 dwelling units consisting of 44 one-bedrooms units, 1 two-bedroom unit, and 1 three-bedroom manager unit on approximately 1.73 acres.

One-bedroom units are approximately 628 sq. ft., the two-bedroom unit is approximately 884 sq. ft and the three-bedroom manager’s unit is approximately 1,179 sq. ft.

The building is proposed to be a 3-story, type V-A wood framed building in a C-shape around a central courtyard including two elevators and interior and exterior amenity space. Proposed additional amenities include: a community center, managerial/leasing offices, library room, laundry facilities, a courtyard, and a dog run.

Ther target population will be senior residents of Clovis and the surrounding areas that are income qualified.

Six (6) units will be preserved as low-income units for households earning sixty percent (60%) or less of the Area Median Income as defined by the PLHA Program, and forty (40) units will be preserved as low-income housing units for households earning eighty percent (80%) or less of the Area Median Income. Project will include related on-site and off-site improvements.
62 AGENDA ITEM NO. 6.

PROJECT SCHEDULE

TASK PROJECTED COMPLETION
DATE
Signed LOI 11/10/2023
Sign Purchase & Sale Agreement 11/28/2023
DRC Submission to City of Clovis 12/15/2023
1 st Neighborhood Meeting 1/31/2024
2 nd Neighborhood Meeting 2/29/2024
Submission for GPA, Rezone, Site Plan Review
to City of Clovis
1/31/2024
Approval of Entitlements 5/31/2024
Application for State Funding Summer 2024
Construction/Permanent Loan Commitments Summer 2024
Application & Allocation for LIHTC Funding Summer 2024 – Fall 2024 Property Acquisition Spring 2025, or sooner if
applicable
Construction Commencement Spring 2025
Construction Completion Spring 2026
63 AGENDA ITEM NO. 6.

EXHIBIT C
BUDGET

CONSTRUCTION SOURCES
Source Funding Amount
Construction Loan $23,018,719
Tax Credit Equity $2,684,375
Deferred Costs $2,414,114
City of Clovis PLHA $1,481,281
Total $29,598,489

PERMANENT SOURCES
Source Funding Amount
Tax Credit Equity $26,843,749
Deferred Developer Fee $1,100,000
Other $173,459
City of Clovis PLHA $1,481,281
Total $29,598,489
TOTAL DEVELOPMENT COST: $29,598,489
64 AGENDA ITEM NO. 6.

EXHIBIT D

EXEMPLAR DECLARATION OF RESTRICTIONS
65 AGENDA ITEM NO. 6.

Recording requested by and on behalf of:

CITY OF CLOVIS
WHEN RECORDED MAIL TO:

City of Clovis
Attn: Housing Program Manager
1033 Fifth Street
Clovis, California 93612
(Space above this line for Recorder’s Use only)
No recording or filing fee required. This document is exempt from fees pursuant to California Government Code §§ 6103, 27383.

APNs: 492-080-74, 492-080-85, 492-080-86, and 492-080-08 (portion)

DECLARATION OF RESTRICTIONS
THIS DECLARATION OF RESTRICTIONS (“Declaration”) is executed as of ____________, 2024, by Clovis 135 Osmun, LP, a California limited partnership, (“DECLARANT”), in favor of the CITY OF CLOVIS, a California municipal corporation (“CITY”).

WHEREAS, DECLARANT is a California limited partnership consisting of Central California Housing Corporation, a California corporation and Better Opportunities Builder, Inc., a California nonprofit public benefit corporation, each owning one-half interest as general partners of DECLARANT.

WHEREAS, the DECLARANT is the owner of the real property in the City of Clovis, County of Clovis, California, located at 135 Osmun Avenue, Clovis, CA 93612 (APNs: 492-080-74, 492-080- 85, 492-080-86, and 492-080-08 (portion), which is more particularly described in EXHIBIT “A” attached hereto and incorporated herein by reference, including the improvements thereon (“Property”); and
WHEREAS, pursuant to a certain Permanent Local Housing Allocation Agreement between DECLARANT and CITY dated _____________, 2024 (“PLHA Agreement”), incorporated herein by reference and instruments referenced therein, the DECLARANT agree to utilize, and the CITY agrees to provide, certain PLHA funds from the State of California to the DECLARANT and the DECLARANT agree to construct a fortyseven (47) unit affordable senior rental housing project subject to the terms and conditions in the PLHA Agreement, with forty-six (46) units restricted to qualified low to very low income households and one (1) onsite manager unit (“Project”).

WHEREAS, the PLHA regulations promulgated by the State of California and the PLHA Agreement impose certain affordability requirements upon property owned by the DECLARANTS which affordability restrictions shall be enforceable for a Fifty-Five (55) year period commencing from the date the CITY issues a certificate of occupancy for the Project.; and
WHEREAS, these restrictions are intended to bind the DECLARANT and all purchasers and successorsin-interest of the Property and DECLARANT.

NOW THEREFORE, the DECLARANT declare that the Property is held and will be held, transferred, encumbered, used, sold, conveyed and occupied subject to the covenants, restrictions, and limitations set forth 66 AGENDA ITEM NO. 6.
in this Declaration, all of which are declared and agreed to be in furtherance of the Project. All of the restrictions, covenants and limitations shall run with the land and will be binding on all parties having or acquiring any right, title or interest in the Property or any part thereof, will inure to the benefit of the CITY, and will be enforceable by it. Any purchaser under a contract of sale covering any right, title or interest in any part of the Property, by accepting a deed or a contract of sale or agreement of purchase, accepts the document subject to, and agrees to be bound by, any and all restrictions, covenant, and limitations set forth in this Declaration commencing on the date the CITY has issued the Certificate of Occupancy, constituting the commencement of the 55-year Affordability Period.

1. Declarations. The DECLARANT hereby declare that the Property is and shall be subject to the covenants and restrictions hereinafter set forth, all of which are declared to be in furtherance of the Project and the PLHA Agreement and are established and agreed upon for the purpose of enhancing and protecting the value of the Property and in consideration of the CITY entering into the PLHA Agreement with the DECLARANT.

2. Restrictions. The following covenants and restrictions on the use and enjoyment of the Property shall be in addition to any other covenants and restrictions affecting the Property, and all such covenants and restrictions are for the benefit and protection of the CITY and shall run with the Property and be binding on any future owners of the Property and inure to the benefit of and be enforceable by CITY. These covenants and restrictions are as follows:
(a) The DECLARANT for themselves and their respective successor(s) on title covenant and agree that from the date the Project is complete, until the expiration of the Affordability Period, shall cause forty-six (46) Affordable Housing Units to be used as affordable rental housing to Low Income Households with an income of 80%, or below, of area median income. Six (6) units, referred to as the PLHA units will be available as affordable rental housing for households earning 60% or below, of the area median income. The DECLARANT further agree to file a recordable document setting forth the Project Completion Date when determined by the CITY. Unless otherwise provided in the Agreement, the term Affordable Housing Unit shall include, without limitation, compliance with the following requirements:
i. Nondiscrimination. There shall be no discrimination against nor segregation of any persons or group of persons on account of race, color, creed, religion, sex, marital status, national origin, ancestry, or handicap in the sale, transfer, use, occupancy, tenure, or enjoyment of any of the Property, nor shall the DECLARANT establish or permit any practice of discrimination or segregation with reference to the selection, location, number, use or occupancy of owners or vendees of the Project and/or Property. ii. Principal Residence. The PLHA-Assisted Units constituting the Affordable Housing Units upon the Project Property shall be leased only to eligible natural persons, who shall occupy the Affordable Housing Units as the tenants’ principal place of residence. The forgoing requirement that the eligible tenant occupy the unit as their principal residence does not apply to (i) persons, other than natural persons, who acquire the Project Property or portion thereof by foreclosure or deed in lieu of foreclosure; or (ii) State qualified entities that acquire the Property or portion thereof with the consent of the CITY. iii. Household Income Requirements. The forty-six (46) Affordable Housing Units constructed on the Project Property may be rented only to a natural person(s) whose annual Household income at the time of rental is not greater 80% of the most recent annual median income as provided for on the State of California website for Fresno County and applicable to such household’s size. Six (6) units, referred to as the PLHA units will be available as affordable rental housing for households earning 60% or below, of the area median income.
67 AGENDA ITEM NO. 6.

Section 2(a) above is hereinafter referred to as the Covenants and Restrictions.

3. Enforcement of Restrictions. Without waiver or limitation, the CITY shall be entitled to seek and obtain injunctive or other equitable relief against any violation or attempted violation of any of the Covenants and Restrictions.

4. Acceptance and Ratification. All present and future owners of the Property and other persons claiming by, through, or under them shall be subject to and shall comply with the Covenants and Restrictions.

The acceptance of a deed of conveyance to the Property shall constitute an agreement that the Covenants and Restrictions, as may be amended or supplemented from time to time, are accepted and ratified by any future owners, tenant, or occupant, and such Covenants and Restrictions shall be a covenant running with the land and shall bind any person having at any time any interest or estate in the Property, all as though such Covenants and Restrictions were recited and stipulated at length in each and every deed, conveyance, mortgage or lease thereof.

Notwithstanding the foregoing, upon foreclosure by a lender or other transfer in lieu of foreclosure, the Affordability Period shall be terminated unless the foreclosure or other transfer in lieu of foreclosure or assignment recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid the termination of low-income affordability. However, the requirements with respect to Affordable Housing Unit shall be revived according to their original terms, if during the original Affordability Period, the owner of record before the foreclosure or other transfer, or any entity that includes the former owner of those with whom the former owner has or had formally, family or business ties, obtains an ownership interest in the Project or the Property.

5. Benefit. This Declaration shall run with and bind the Property for a term commencing on the date the CITY issues the Certificate of Occupancy for the Project, until the expiration of the Fifty-five (55) year Affordability Period. The failure or delay at any time of CITY and/or any other person entitled to enforce this Declaration shall in no event be deemed a waiver of the same, or of the right to enforce the same at any time or from time to time thereafter, or an estoppel against the enforcement thereof.

6. Costs and Attorney’s Fees. In any proceeding arising because of failure of the DECLARANT or any future owner of the Property to comply with the Covenants and Restrictions required by this Declaration, as may be amended from time to time, the prevailing party shall be entitled to recover its respective costs and reasonable attorney’s fees incurred in connection with such proceeding, including default or failure.

7. Waiver. Neither the DECLARANT nor any future owner of the Property may exempt itself from liability for failure to comply with the Covenants and Restrictions required in this Declaration; provided however, that upon the transfer of the Property, the transferring owner may be released from liability hereunder, upon the CITY’s written consent of such transfer, which consent shall not be unreasonably withheld, conditioned or delayed.

8. Severability. The invalidity of the Covenants and Restrictions or any other covenant, restriction, condition, limitation, or other provision of this Declaration shall not impair or affect in any manner the validity, enforceability, or effect of the rest of this Declaration and each shall be enforceable to the greatest extent permitted by law.

9. Pronouns. Any reference to the masculine, feminine, or neuter gender herein shall, unless the context clearly requires the contrary, be deemed to refer to and include all genders. Words in the singular shall include and refer to the plural, and vice versa, as appropriate.

10. Interpretation. The captions and titles of the various articles, sections, subsections, paragraphs, 68 AGENDA ITEM NO. 6.
and subparagraphs of this Declaration are inserted herein for ease and convenience of reference only and shall not be used as an aid in interpreting or construing this Declaration or any provision hereof.

11. Amendments or Modifications. No amendments or modifications shall be permitted without the prior written consent, of the State of California Department of Housing and Community Development, the CITY and the DECLARANT

12. Recordation. The DECLARANTS acknowledge that this Declaration will be filed with and recorded by the County of Fresno Recorder’s Office.

13. Capitalized Terms. All capitalized terms used in this Declaration, unless otherwise defined herein, shall have the meanings assigned to such terms in the PLHA Agreement.

14. Headings. The headings of the articles, sections, and paragraphs used in this Declaration are for convenience only and shall not be read or construed to affect the meaning or construction of any provision.

IN WITNESS WHEREOF, the DECLARANT has executed this Declaration of Restrictions on the date first written above.

DECLARANT:

Clovis 135 Osmun, LP
A California limited partnership
Managing General Partner
Central California Housing Corporation, a
California Corporation (dba Affordable
Housing Development Corporation)
By: _________________________________________
Austin Herzog, President
Administrative General Partner
Better Opportunities Building, Inc., a
California non-profit public benefit corporation
By: _________________________________________
Michael Duarte, Chief Executive Officer
(Attach notary certificate of acknowledgement for each signature) 69 AGENDA ITEM NO. 6.

EXHIBIT E

EXEMPLAR PROMISSORY NOTE
70 AGENDA ITEM NO. 6.

DO NOT DESTROY THIS NOTE: When paid, this note, must be surrendered to Borrowers for Cancellation.

PROMISSORY NOTE
Secured by Deed of Trust
Loan Amount: $1,481,281.00
Date:_________________, 2024
Clovis, California
For value received, the undersigned, collectively referred to as Borrower (BORROWER) jointly and severally, promise to pay to the order of the City of Clovis, a California municipal corporation (Lender), the sum of One Million Four Hundred Eighty-One Thousand Two Hundred Eighty-One Dollars ($1,481,281.00), to the extent that such funds are loaned to the BORROWER, with interest on the unpaid principal balance running from the date of disbursement with simple interest at the rate of three percent (3.0%) annually in accordance with the Permanent Local Housing Allocation Agreement dated __________, 2024, entered into between the Lender and the BORROWER, (Agreement), which is incorporated herein by reference, with the balance of principal and interest due and payable on or before the earlier of (i) the BORROWER’s uncured default under the Agreement with respect to the Project, and (ii) 55-years from the date of this Note (Maturity Date), on which date the unpaid balance of principal with unpaid interest thereon shall be due and payable, along with reasonable attorney’s fees and costs of collection incurred by Lender, if any, and without relief from valuation and appraisement laws.

1. This is a Residual Receipts Note. Principal and interest payments will be paid on a peri passu basis to the extent that Residual Receipts exist and are itemized in annual audited financial statements supplied to Lender with each payment hereunder, shall be due 180 days following the end of the year in which the Project is completed, and said payment shall continue each successive year thereafter until the Maturity Date, upon which all principal and interest shall be due and payable (prorated amounts to be paid for the first and last year of the Note). Any failure to make a payment required hereunder within ten (10) days after such payment is due shall constitute a default under the Agreement with respect to the Project and this Note. It shall not be a default hereunder if no payment was made because the Project Residual Receipts did not exist for any particular year. Additionally, any failure to timely submit to Lender annual audited financial statements with the management notes and residual receipts calculation within thirty (30) days after such financial statements are due shall constitute a default under the Agreement with respect to the Project and Note.

2. Residual Receipts means in each operating year 100% of the sum of: (i) all cash received by the Project from rents, lease payments, and all sources generally considered in the apartment industry to be “other income” (which does not include payments for optional services provided by BORROWER), (ii) payments under a Housing Assistance Program Section 8 Contract (or tenant vouchers) or Section 811 Contract, if any, excluding tenant security or other deposits required by law to be segregated and 71 AGENDA ITEM NO. 6.
restricted, and interest on reserves not available for distribution, and the net proceeds of any insurance (including rental interruption insurance), other than fire and extended coverage and title insurance, to the extent not reinvested, less the sum of: (i) all payments on account of any loans (including unpaid principal and accrued reasonable interest) made for the benefit of the Project by the BORROWER, (ii) loans made by the general partner of BORROWER to fund operating deficits or Project construction cost overages; (iii) loans made by the general partner of BORROWER to fund any loan shortfall; (iv) loans made by the investor limited partner or the developer to the Project; (v) asset management fees payable to the investor limited partner and/or general partner of BORROWER; (vi) deferred developer fees and “lease-up fees”; (vii) any other fees payable to BORROWER or the general or limited partners of BORROWER; (iii) contributions to any prudent and reasonable cash reserves for working capital, operating expenses, capital expenditures, repairs, replacements and anticipated expenditures, in such amounts as may be reasonably required by the lenders to the Project for the operation of the Project not to exceed the amount required by the Project’s permanent lender, annually adjusted in proportion to the average increase of the following indices (a) the United States Bureau of Labor Statistics for Hourly Wage Rates of all workers in manufacturing, and (b) of all Commodity Wholesale Prices, said indices shall be redefined to the mutual satisfaction of the parties in the event of change in form and basis of indices, all increases shall use the indices for calendar year 2010 as their base; and (iv) the payment of principal and interest, and any associated fees, expenses, and costs, with respect to any Senior Financing.

3. Operating Expenses means actual, reasonable and customary (for comparable quality, rehabilitated rental housing developments in Fresno County) costs, fees and expenses directly incurred, paid, and attributable to the operation, maintenance and management of the Project in a calendar year, including, without limitation: painting, cleaning, repairs, alterations, landscaping, utilities, refuse removal, certificates, permits and licenses, sewer charges, real and personal property taxes, assessments, insurance, security, advertising and promotion, janitorial services, cleaning and building supplies, purchase, repair, servicing and installation of appliances, equipment, fixtures and furnishings which are not paid from the capital replacement reserve, fees and expenses of property management and common area expenses, fees and expenses of accountants, attorneys and other professionals, the cost of social services, repayment of any completion or operating loans including any and all deferred fees (including developer fees and contractor fees) per the Budget, made to the BORROWER, its successors or assigns, and other actual operating costs and capital costs which are incurred and paid by the BORROWER, but which are not eligible for payment from reserve accounts.

4. All capitalized terms used in this Note, unless otherwise defined, shall have the respective meanings specified for the terms in the Agreement. In addition, as used in this Note, the following terms will have the following meanings:

5. Business Day means any day other than Saturday, Sunday, or public holiday or the equivalent for banks generally under the laws of California. Whenever any payment to be made under this Note is stated to be due on a day other than a Business Day, that payment may be made on the next succeeding Business Day. 72 AGENDA ITEM NO. 6.

6. Note Maturity Date means 55 years from the Note date.

7. This Note, and any extensions or renewals hereof, is secured by a Deed of Trust and Assignment of Rents, on real estate in Fresno County, California, that provides for acceleration upon stated events, dated as of the same date as this Note, and executed in favor of and delivered to the Lender (Deed of Trust), insured as a fourth (4th) position lien/encumbrance on the Property.

8. Time is of the essence. It will be a default under this Note if the BORROWER defaults under the Agreement, any other Loan Document with the Lender, or this Note and such default continues beyond the notice and cure period as provided in such documents. In the event of a default by the BORROWER with respect to any sum payable under this Note and the failure to cure such default within ten (10) days, the BORROWER shall pay a late charge equal to the lesser of two percent (2.0%) of any outstanding payment or the maximum amount allowed by law. All payments collected shall be applied first to payment of any costs, fees or other charges due under this Note or any other Loan Documents then to the interest and then to principal balance. On the occurrence of an uncured default or on the occurrence of any other event that under the terms of the Loan Documents give rise to the right to accelerate the balance of the indebtedness, then, at the option of Lender, this Note or any notes or other instruments that may be taken in renewal or extension of all or any part of the indebtedness will immediately become due without any further presentment, demand, protest, or notice of any kind. Lender acknowledges and agrees that it shall send notice of any default hereunder to the limited partners of the BORROWER and shall accept any cure offered by such limited partners on the same basis as it would accept a cure from Borrower.

9. The indebtedness evidenced by this Note may, at the option of the BORROWER, be prepaid in whole or in part without penalty. Lender will apply all the prepayments first to the payment of any costs, fees, late charges, or other charges due under this Note or under any of the other Loan Documents and then to the interest and then to the principal balance.

10. All Loan payments are payable in lawful money of the United States of America at any place that Lender or the legal holders of this Note may, from time to time, in writing designate.

11. The BORROWER agrees to pay all costs including, without limitation, reasonable attorney fees, incurred by the holder of this Note in the successful enforcement of payment, whether or not suit is filed, and including, without limitation, all costs, reasonable attorney fees, and expenses incurred by the Lender or holder of this Note in connection with any bankruptcy, reorganization, arrangement, or other similar proceedings involving the BORROWER that in any way affects the exercise by the Lender or holder of this Note of its rights and remedies under this Note. All costs incurred by the Lender or holder of this Note in any action undertaken to obtain relief from the stay of bankruptcy statutes are specifically included in those costs and expenses to be paid by the BORROWER.
73 AGENDA ITEM NO. 6.

12. Any notice, demand, or request relating to any matter set forth herein shall be in writing and shall be given as provided in the Agreement.

13. No delay or omission of the Lender in exercising any right or power arising in connection with any default will be construed as a waiver or as acquiescence, nor will any single or partial exercise preclude any further exercise. The Lender may waive any of the conditions in this Note and no waiver shall be deemed to be a waiver of the Lender’s rights under this Note, but rather will be deemed to have been made in pursuance of this Note and not in modification. No waiver of any default shall be construed to be a waiver of or acquiescence in or consent to any preceding or subsequent default.

14. The Deed of Trust provides as follows:

Except as provided herein or in the Agreement, if the Trustor/Grantor shall sell, convey or alienate said property, or any part thereof, or any interest therein, or shall be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, without the written consent of the Beneficiary being first had and obtained, Beneficiary shall have the right, at its option, except as prohibited by law, to declare any indebtedness or obligations secured hereby, irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable.

15. The Lender may transfer this Note and deliver to the transferee all or any part of the Property then held by it as security under this Note, and the transferee will then become vested with all the powers and rights given to the Lender; and the Lender will then be forever relieved from any liability or responsibility in the matter, but the Lender will retain all rights and powers given by this Note with respect to Property not transferred.

16. If any one or more of the provisions in this Note is held to be invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions will not in any way be affected or impaired.

This Note shall be binding on and inure to the benefit of the BORROWER, Lender, and their respective successors and assigns.

17. The BORROWER and Lender agree that this Note will be deemed to have been made under and will be governed by the laws of California in all respects, including matters of construction, validity, and performance, and that none of its terms or provisions may be waived, altered, modified, or amended except as the Lender and BORROWER may consent to in a writing duly signed by the BORROWER or Lender or its authorized agents.

18. This Note shall be nonrecourse to the BORROWER and all its constituent members and may be prepaid at any time without penalty. Neither the BORROWER nor any of its general and limited partners shall have any personal liability for repayment of the Loan. The sole recourse of the Lender under the Loan Documents for repayment of the Loan shall be the exercise of its rights against the Property pursuant to the Deed of Trust and the Lender shall have no right to seek or recover any deficiency amount from the BORROWER or any partner of the BORROWER.
74 AGENDA ITEM NO. 6.

IN WITNESS WHEREOF, the BORROWER has caused this Promissory Note to be executed as of the date and year first above written.

BORROWER
Clovis 135 Osmun, LP
A California limited partnership
Managing General Partner
Central California Housing Corporation, a
California Corporation (dba Affordable
Housing Development Corporation)
By: _________________________________________
Austin Herzog, President
Administrative General Partner
Better Opportunities Building, Inc., a
California non-profit public benefit corporation
By: _________________________________________
Michael Duarte, Chief Executive Officer
(Attach notary certificate of acknowledgement for each signature) 75 AGENDA ITEM NO. 6.

EXHIBIT F

EXEMPLAR DEED OF TRUST
76 AGENDA ITEM NO. 6.

Recording requested by and on behalf of:

CITY OF CLOVIS
WHEN RECORDED MAIL TO:

City of Clovis
Attn: Housing Program Manager
1033 Fifth Street
Clovis, California 93612
(Space above this line for Recorder’s Use only)
No recording or filing fee required. This document is exempt from fees pursuant to California Government Code §§ 6103, 27383.

APNs: 492-080-74, 492-080-85, 492-080-86, and 492-080-08 (portion)

DEED OF TRUST ASSIGNMENT OF RENTS
THIS DEED OF TRUST (Deed of Trust) made this ____ day of ____________, 2024, by and between Clovis 135 Osmun, LP, a California limited partnership, (“Borrower”), _______________ Title Company, a California Corporation (“Trustee”), and the City of Clovis, a California municipal corporation organized and existing under the laws of the State of California and whose address is 1033 Fifth Street, Clovis, California 93612 “(Beneficiary” or “Lender”).

The Borrower, in consideration of the indebtedness herein recited and the trust herein created, does irrevocably grant and convey to Trustee, in trust, with power of sale, all the Borrower’s right, title, and interest now owned or hereafter acquired in the real property (Property) known as 135 Osmun, Clovis, CA 93612, located in Fresno County, California and more particularly described in EXHIBIT “A,” attached hereto and incorporated herein by reference (the Borrower agrees that any greater interest to the Property later acquired during the term of this Deed of Trust will be subject to this Deed of Trust), together with the rents, issues, and profits, subject however, to the right, power, and authority granted and conferred on the Borrower in this Deed of Trust to collect and apply the rents, issues, and profits; and
The Borrower also irrevocably grants, transfers, and assigns to the Trustee, in trust, with power of sale, all of the Borrower’s right, title and interest now owned or later for and located at the Property:
(1) All buildings (Buildings) and improvements now or later on the land and all easements, rights, appurtenances, water and water rights, minerals and mineral rights; all machinery, equipment, appliances, and fixtures for the generation or distribution of air, water, heat, electricity, light, fuel, or refrigeration or for ventilating or sanitary purposes or for the exclusion of vermin or insects or for the removal of dust, refuse, or garbage; all wall safes, built-in furniture, and installations, window shades and blinds, light fixtures, fire hoses and brackets, screens, linoleum, 77 AGENDA ITEM NO. 6.
carpets, furniture, furnishings, fixtures, plumbing, laundry tubs and trays, refrigerators, heating units, stoves, water heaters, incinerators, and communication systems and installations for which any Building is specially designed; all of these item, whether now or later installed, being declared to be for all purposes of this Deed of Trust a part of the Land, the specific enumerations in this Deed of Trust not excluding the general; and
(2) The rents, issues, profits, and proceeds relating to the foregoing; and (3) The Property to the extent not included in clauses (1) and (2) above.

TO SECURE, in order of priority that the Beneficiary determines:
(1) Payment of the indebtedness evidenced by a note of the Borrower of even date with this Deed of Trust in the principal amount of One Million Four Hundred EightyOne Thousand Two Hundred Eighty-One Dollars ($1,481,281.00) (Note), payable to the Beneficiary or order, and all extensions, modifications, or renewals of that note;
(2) Payment of the interest on that indebtedness according to the terms of the Note; (3) Payment of all other sums (with interest as provided herein) becoming due and payable to the Beneficiary or the Trustee pursuant to the terms of this Deed of Trust;
(4) Performance of every obligation contained in this Deed of Trust, the Note, the Permanent Local Housing Allocator Program Agreement (“Program Agreement”) (“PLHA Agreement”) dated ___________, 2024, and its related documents, the Declaration of Restrictions dated ___________, 2024, any instrument now or later evidencing or securing any indebtedness secured by this Deed of Trust, and any agreements, supplemental agreements, or other instruments of security executed by Borrower as of the same date of this Deed of Trust or at any time subsequent to the date of this Deed of Trust for the purpose of further securing any indebtedness amending this Deed of Trust or any instrument secured by this Deed of Trust (collectively the Loan Documents); and
(5) Payment of all other obligations owed by Borrower to Beneficiary that by their terms recite that they are secured by this Deed of Trust, including those incurred as primary obligor or as guarantor.

The Borrower covenants that the Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that the Property is unencumbered except for encumbrances of record. The Borrower covenants that the Borrower will forever warrant and will defend the grant made in this Deed of Trust against all claims and demands, subject to encumbrances of record. The Borrower covenants that the Borrower will maintain and preserve the lien of this Deed of Trust until all the indebtedness under the Note is paid in full.
78 AGENDA ITEM NO. 6.

The Borrower represents and warrants to the Beneficiary that as of the date of this Deed of Trust, the Borrower is a validly existing and is in good standing under the laws of the State of California and is qualified to do business in the State of California; that the Borrower has the requisite power and authority to own, develop, and operate the Property; and that the Borrower is in compliance with all laws, regulations, ordinances, and orders of public authorities applicable to it.

The Borrower represents and warrants to the Beneficiary that as of the date of this Deed of Trust the execution, delivery, and performance by the Borrower and the borrowings evidenced by the Note are within the power of the Borrower; have been duly authorized by all requisite corporate or partnership actions, as appropriate; has received all necessary governmental approvals; and will not violate any provision of law, any order of any court or agency of government, the charter documents of the Borrower, or any indenture, agreement, or any other instrument to which the Borrower is a party or by which the Borrower or any of it property is bound, nor will they conflict with, result in a breach of, or constitute (with due notice and lapse of time) a default under any indenture, agreement, or other instrument, or result in the creation or imposition of any lien, charge, or encumbrance of any nature on any of the property or assets of the Borrower, except as contemplated by the provisions of the Loan Documents; and each of the Loan Documents, when executed and delivered to the Beneficiary, will constitute a valid obligation, enforceable in accordance with its terms.

The Borrower represents and warrants to the Beneficiary that as of the date of this Deed of Trust that the Property is not used principally for agricultural or grazing purposes; that the Borrower is engaged in the development and operation of improvements to the Property; and that the principal purpose of the PLHA Loan is the construction of affordable housing and improvements to the Property.

UNIFORM COVENANTS. The Borrower and the Lender covenant and agree as follows:

1. Payment of Principal. The Borrower shall promptly pay when due the principal indebtedness evidenced by the Note. The Lender shall reuse repayments consistent with the PLHA guidelines.

2. Hazard Insurance. The Borrower, at its sole cost and expense, for the mutual benefit of the Borrower and Beneficiary, shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as the Lender may require and in such amounts and for such periods as the Lender may require as set forth in the PLHA Agreement referenced above. The insurance carrier providing the insurance shall be chosen by the Borrower subject to approval by the Lender; provided that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to the Lender and shall include a standard mortgage clause in favor of and in a form acceptable to the Lender. The Lender shall have the right to hold the policies and renewals 79 AGENDA ITEM NO. 6.
thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust.

In the event of loss, the Borrower shall give prompt notice to the insurance carrier and the Lender. The Lender may make proof of loss if not made promptly by the Borrower. If the Property is abandoned by the Borrower, or if the Borrower fails to respond to the Lender within thirty (30) days from the date notice is mailed by the Lender to the Borrower that the insurance carrier offers to settle a claim for insurance benefits, the Lender is authorized to collect and apply the insurance proceeds at the Lender's option either to restoration or repair of the Property or to the sums secured by this Deed of Trust.

3. Preservation and Maintenance of Property. Leaseholds; Condominiums; Planned Unit Developments. The Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a condominium or a planned unit development, the Borrower shall perform all of the Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents.

4. Protection of Lender's Security. If the Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects the Lender's interest in the Property, then the Lender, at the Lender's option, upon notice to the Borrower, may make such appearances, disburse such sums, including reasonable attorney's fees, and take such action as is necessary to protect the Lender's interest. If the Lender requires mortgage insurance as a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with the Borrower's and Lender's written agreement or applicable laws. Any amounts disbursed by the Lender pursuant to this section 4 shall become additional indebtedness of the Borrower secured by this Deed of Trust.

Unless the Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from the Lender to the Borrower requesting payment thereof. Nothing contained in this section 4 shall require the Lender to incur any expense or take any action hereunder.

5. Inspection. The Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that the Lender shall provide the Borrower notice prior to any such inspection specifying reasonable cause therefore related to the Lender's interest in the Property.

6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the 80 AGENDA ITEM NO. 6.

Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to the Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust.

7. Borrower Not Released; Forbearance By Lender Not a Waiver. The extension of the time for payment or modification of amortization of the sums secured by this Deed of Trust granted by the Lender to any successor in interest of the Borrower shall not operate to release, in any manner, the liability of the original Borrower and the Borrower's successors in interest. The Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Deed of Trust be reason of any demand made by the original Borrower and the Borrower's successors in interest. Any forbearance by the Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be waiver of or preclude the exercise of any such right of remedy.

8. Successors and Assignees Bound; Joint and Several Liability; Co-Signers. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to the respective successors and assignees of the Lender and the Borrower. All covenants and agreements of the Borrower shall be joint and several.

Any borrower who co-signs this Deed of Trust, but does not execute the Note is:
(a) co-signing this Deed of Trust only to grant and convey that the Borrower's interest in the Property of Trustee under the terms of this Deed of Trust, and (b) not personally liable on the Note or under this Deed of Trust or the Note, without that Borrower's consent and without releasing that Borrower or modifying this Deed of Trust as to that Borrower's interest in the Property.

9. Transferability. One of the inducements to the Beneficiary for making the Loan is the identity of the Borrower. The existence of any interest in the Property other than the interests of the Borrower and Beneficiary and any encumbrance permitted in this Deed of Trust, even though subordinate to the security interest of the Beneficiary, and the existence of any interest in the Borrower other than those of the present owners, would impair the Property and the security interest of the Beneficiary, and, therefore, except as provided herein or in the Loan Documents, the Borrower will not sell, convey, assign, transfer, alienate, or otherwise dispose of its interest in the Property, either voluntarily or by operation of law, or agree to do so, without the prior written consent of the Beneficiary. The consent to one transaction by the Beneficiary shall not be deemed a waiver of the right to require consent to further or successive transactions. If the Borrower is a corporation, any sale, transfer, or disposition of fifty percent (50%) or more of the voting interest of the Borrower or of any entity that directly or indirectly owns or controls the Borrower, including, without limitation, the parent company of the Borrower, and the parent company of the parent company of the Borrower, will constitute a sale of the Property for purposes of this section. If the Borrower is a partnership any change or addition of a general partner of the Borrower, change of a partnership 81 AGENDA ITEM NO. 6.
interest of the Borrower with the exception of a limited partner transfer, which shall not require the Beneficiary’s consent, or sale, transfer, or disposition of fifty percent (50%) or more of the voting interest or partnership interest of any general partner of the Borrower or of any corporation, partnership or entity that directly or indirectly owns or controls any general partner of the Borrower, including, without limitation, each parent company of a general partner of the Borrower and each parent company of any parent company of a general partner of the Borrower, will constitute a sale of the Property for purposes of this section. If the Borrower is a limited liability company, any change of the manager or any sale, transfer or disposition of fifty percent (50%) or more of the partnership interests of the Borrower, or disposition of fifty percent (50%) or more of the voting interest of the Borrower or of any corporation, partnership or entity that directly or indirectly owns or controls any member of the Borrower, including without limitations, each parent company of the Borrower and each parent company of any parent company of a member of the Borrower, will constitute a sale of the Property for purposes of this section. Any transaction in violation of this section will cause all indebtedness, irrespective of the maturity dates, at the option of the Beneficiary and without demand or notice, immediately to become due, together with any prepayment premium in accordance with the terms of the Note except as prohibited by law.

10. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to the Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing such notice by certified mail addressed to the Borrower at the Property address or at such other address as the Borrower may designate by notice to the Lender as provided herein, and (b) any notice to the lender shall be given by certified mail to the Lender's address stated herein or to such other address as the Lender may designate by notice to the Borrower as provided herein. Any notice provided for in this Deed of Trust shall be deemed to have been given to the Borrower or Lender when given in the manner designated herein.

11. Governing Law; Venue; Severability. The state and local laws applicable to this Deed of Trust shall be the laws of the jurisdiction in which the Property is located.

Venue for any judicial actions shall be in the Fresno County Superior Court or the United States District Court, Eastern District of California, as the case may be. The foregoing sentence shall not limit the applicability of Federal law to this Deed of Trust or if the Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or the Note which can be given effect without the conflicting provision, and to this end the provisions of this Deed of Trust and the Note are declared to be severable. As used herein, "costs", "expenses", and "attorney's fees" include all sums to the extent not prohibited by applicable law or limited herein.

12. Borrower's Copy. The Borrower shall be furnished a copy of the Note and a conformed copy of the recorded Deed of Trust at the time of execution or after recordation thereof.
82 AGENDA ITEM NO. 6.

13. Acceleration; Remedies. Upon the Borrower's breach of any covenant or agreement of the Borrower in this Deed of Trust, including the covenants to pay when due any sums secured by this Deed of Trust, the Note or the PLHA Program restrictions, the Lender prior to acceleration shall give notice to the Borrower as provided in section 10 hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, not less than ten (10) days from the date notice is mailed to the Borrower, by which such breach must be cured or thirty (30) days for a non-monetary default; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform the Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of the Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, the Lender, at the Lender's option may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. The Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this section 13, including, but not limited to, reasonable attorney's fees. If the Lender invokes the power of sale, the Lender shall execute or cause the Trustee to execute a written notice of the occurrence of an event of default and of the Lender's election to cause the Property to be sold and shall cause such notice to be recorded in each county in which the Property or some part thereof is located. The Lender or the Trustee shall mail copies of such notice in the manner prescribed by applicable law. The Trustee shall give public notice of sale to the persons and in the manner prescribed by applicable law. After the lapse of such time as may be required by applicable law, the Trustee, without demand on the Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in such order as Trustee may determine. The Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. The Lender or the Lender's designee may purchase the Property at any sale. The Trustee shall deliver to the purchaser the Trustee's deed conveying the Property so sold without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. The Trustee shall apply the proceeds of the sale in the following order: (a) to all reasonable costs and expenses of the sale, including, but not limited to, reasonable Trustee's and attorney's fees and costs of title evidence; (b) to all sums secured by this Deed of Trust; and (c) the excess, if any, to the person, persons, or entities legally entitled thereto.

14. Borrower's Right to Reinstate. Notwithstanding the Lender's acceleration of the sums secured by this Deed of Trust due to the Borrower's breach, the Borrower shall have the right to have any proceedings begun by the Lender to enforce this Deed of Trust discontinued at any time prior to five days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior 83 AGENDA ITEM NO. 6.
to entry of a judgment enforcing this Deed of Trust if: (a) the Borrower pays the Lender all sums which would be then due under this Deed of Trust and the Note had no acceleration occurred; (b) the Borrower cures all breaches of any other covenants or agreements of Borrower contained in this Deed of Trust; (c) the Borrower pays all reasonable expenses incurred by the Lender and Trustee in enforcing the covenants and agreements of Borrower in section 13 hereof, including but not limited to, reasonable attorney's fees; and (d) the Borrower takes such action as the Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's interest in the Property and the Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by the Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.

15. Nonrecourse. The sole recourse of the Lender under the Loan Documents for repayment of the Note shall be the exercise of its rights against the Property.

16. Withdrawal, Removal and/or Replacement. If applicable, the removal or replacement of any general partner of the Borrower pursuant to the terms of a partnership agreement due to violation by a general partner of the terms of a partnership agreement, or a voluntary withdrawal from a partnership by a general partner, and any transfer of limited partnership interest or interests in the same, shall not constitute a default under any of the Loan Documents, and any such actions shall not accelerate the maturity of the loan.

17. Lien of Deed of Trust. The Beneficiary agrees that the lien of this Deed of Trust shall be subordinated to any senior lender housing commitment (as such term is defined in Section (42(h)(6)(B) of the internal Revenue Code) (the Extended Use Agreement) recorded against the Property, provided that such Extended Use Agreement, by its terms, must terminate upon foreclosure under this Deed of Trust or upon a transfer of the Property by instrument of lieu of foreclosure, in accordance with Section 42(h)(6)(E) of the Internal Revenue Code, subject to the limitations upon evictions, terminations of tenancies and increases in gross rents of tenants of low-income units as provided in that Section.

18. Assignment of Rent; Appointment of Receiver; Lender in Possession. As additional security hereunder, the Borrower hereby assigns to the Lender the rents of the Property, provided that the Borrower shall, prior to acceleration under section 13 or abandonment of the Property, have the right to collect and retain such rents as they become due and payable. Upon acceleration under section 13 hereunder or abandonment of the Property, the Lender, in person, by agent or by judicially appointed receiver shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. All rents collected by the Lender or the receiver shall be applied first to premiums on receiver's bonds and reasonable attorney's fees, and then to the sums secured by this Deed of Trust. The Lender and the receiver shall be liable to account only for those rents actually received.
84 AGENDA ITEM NO. 6.

19. Release of Deed and Note. Upon payment of all sums secured by this Deed of Trust, the Lender shall request the Trustee to surrender this Deed of Trust, and the notes evidencing indebtedness secured by this Deed of Trust to Trustee.

20. Substitute Trustee. At the Lender's option, the Lender may from time to time, appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by the Lender and recorded in the Fresno County Recorder's Office. The instrument shall contain the name of the original the Lender, Trustee and Borrower, the book and page where this Instrument is recorded and the name and address of the successor trustee. The successor trustee shall, without conveyance of the Property, succeed to all the title, powers and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution.

21. Statement of Obligation. The Lender may collect a fee not to exceed fifty dollars ($50.00) for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California.

22. Event of Default. Prior to declaring or taking any remedy permitted under Loan Documents, (where applicable) the Borrower’s limited partners shall have an additional period of not less than thirty (30) days to cure such alleged default.

Notwithstanding the foregoing, in the case of a default that cannot with reasonable diligence be remedied or cured within thirty (30) days, the Borrower’s limited partners shall have such additional time as reasonably necessary to remedy or cure such default, but in no event more than ninety (90) days from the expiration of the initial thirty (30) day period above, and if the Borrower’s limited partners reasonably believe that in order to cure such default, the Borrower’s limited partners must remove one or both of the Borrower’s general partners in order to cure such default, the Borrower’s limited partners shall have an additional thirty (30) days following the effective date of such removal to cure such default. To the extent that there is a conflict between this section 22 and any remedy permitted by the PLHA Agreement, Loan Documents, or Loan, the terms of this section 22 shall control.

The following events are each an “Event of Default”:
(a) Default in the payment of any sum of principal or interest when due under the Note or any other sum due under the Loan Documents. (b) Failure to maintain insurance as provided in Section 2 hereof. (c) The failure (without cure during the applicable period, if any, for cure) of any the Borrower to observe, perform, or discharge any obligation, term, covenant, or condition of any of the Loan Documents, any agreement relating to the Property, or any agreement or instrument between Borrower and the Beneficiary.
85 AGENDA ITEM NO. 6.
(d) The assignment by the Borrower, as lessor or sublessor, as the case may be, of the rents or the income of the Property or any part of it (other than to Beneficiary) without first obtaining the written consent of the Beneficiary. (e) Any of the following events:
(i) the filing of any claim or lien against the Property or any party of it, whether or not the lien is prior to this Deed of Trust, and the continued maintenance of the claim or lien for a period of thirty (30) days without discharge, satisfaction, or adequate bonding in accordance with the terms of this Deed of Trust;
(ii) the existence of any interest in the Property other than those of the Borrower, Beneficiary, any tenants of the Borrower, and any one listed in a title exception approved by the Beneficiary in writing; or (iii) the sale, hypothecation, conveyance, or other disposition of the Property except with the express written approval of the Beneficiary, any of which will be an Event of Default because the Borrower’s obligation to own and operate the Property is one of the inducements to the Beneficiary to make the Loan;
(f) Default under any agreement to which the Borrower is a party, which agreement relates to the borrowing of money by the Borrower from Beneficiary.
(g) Any presentation or warranty made by any Loan Party or any other Person under this Deed of Trust or in, under, or pursuant to the Loan Documents, is false or misleading in any material respect as of the date on which the representation or warranty was made.
(h) Any of the Loan Documents, at any time after their respective execution and delivery and for any reason, cease to be in full force or are declared null and void, or the validity or enforceability is contested by the Borrower or any stockholder or partner of the Borrower, or the Borrower denies that it has any or further liability or obligation under any of the Loan Documents to which it is a party. If one or more Event of Default occurs and is continuing, then the Beneficiary may declare all the Indebtedness to be due and the Indebtedness will become due without any further presentment, demand, protest, or notice of any kind, and the Beneficiary may:
(i) in person, by agent, or by a receiver, and without regard to the adequacy of security, the solvency of the Borrower, or the existence of waste, enter on and take possession of the Property or any party of it in its own name or in the name of Trustee, sue for or otherwise collect the rents, issues, and profits, and apply them, less costs and expenses of operation and collection, including reasonable attorneys’ fees, upon the Indebtedness, all in any order that the Beneficiary many determine. The entering on and taking possession 86 AGENDA ITEM NO. 6.
of the Property, the collection of rents, issues, and profits, and the application of them will not cure or waive any default or notice of default or invalidate any act done pursuant to the notice; (ii) commence an action to foreclose this Deed of Trust in the manner provided by law for the foreclosure of mortgages of real property; (iii) deliver to the Trustee a written declaration of default and demand for sale, and a written notice of default and election to cause the Property to be sold, which notice the Trustee or the Beneficiary will cause to be filed for record;
(iv) with respect to any personal property, proceed as to both the real and personal property in accordance with the Beneficiary’s rights and remedies in respect of the Property, or proceed to sell the personal property separately and without regard to the Property in accordance with the Beneficiary’s rights and remedies; or
(v) exercise any of these remedies in combination or any other remedy at law or in equity.

23. Protection of Security. If an Event of Default occurs and is continuing, the Beneficiary or Trustee, without notice to or demand upon the Borrower, and without releasing the Borrower from any obligations or defaults may:
(a) enter on the Property in any manner and to any extent that either deems necessary to protect the security of this Deed of Trust; (b) appear in and defend any action or proceeding purporting to affect, in any manner, the Obligations or the Indebtedness, the security of this Deed of Trust, or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, or compromise any encumbrance, charge, or lien that in the judgment of Beneficiary or Trustee is prior or senior to this deed of Trust; and
(d) pay expenses relating to the Property and its sale, employ counsel, and pay reasonable attorneys’ fees.

The Borrower agrees to repay on demand all sums expended by the Trustee or the Beneficiary pursuant to this section with interest at the Note Rate of Interest, and those sums, with interest, will be secured by this Deed of Trust.

24. Effect of Assignment. The assignment of rents as provided herein will not impose on the Beneficiary any duty to produce rents, issues, or profits from the Property, or cause the Beneficiary to be:
(a) a “mortgage-in-possession” for any purpose;
(b) responsible for performing any of the obligations of the lessor under any of the Leases; or
(c) responsible for any waste committed by lessees or any other parties, any dangerous or defective condition of the Property, or any negligence in the management, upkeep, repair, or control of the Property. 87 AGENDA ITEM NO. 6.

The Beneficiary shall not be liable to the Borrower as a consequence of the exercise of the rights granted to the Beneficiary under this assignment or the failure of the Beneficiary to perform any obligation of the Borrower arising under Leases.

IN WITNESS WHEREOF, Borrower has executed this Deed of Trust on the day and year set forth above. By signing below, Borrower agrees to the terms and conditions as set forth above.

BORROWER
Clovis 135 Osmun, LP
A California limited partnership
Managing General Partner
Central California Housing Corporation, a
California Corporation (dba Affordable
Housing Development Corporation)
By: _________________________________________
Austin Herzog, President
Administrative General Partner
Better Opportunities Building, Inc., a
California non-profit public benefit corporation
By: _________________________________________
Michael Duarte, Chief Executive Officer
(Attach notary certificate of acknowledgement for each signature) 88 AGENDA ITEM NO. 6.

TO: Mayor and City Council
FROM: Finance Department
DATE: May 20, 2024
SUBJECT: Finance – Receive and File – Investment Report for the Month of January 2024.

ATTACHMENTS: 1. Distribution of Investments

2. Monthly Investment Transactions

3. Certificates of Deposit

4. Municipal Securities

5. Graph of January 31, 2024 Treasury Rates

CONFLICT OF INTEREST
Councilmembers should consider recusal if a campaign contribution exceeding $250 has been received from the project proponent (developer, applicant, agent, and/or participants) within the preceding 12 months (Government Code 84308).

EXECUTIVE SUMMARY
Attached is the Investment Report for the month of January 2024. Shown in Attachment 1 is the distribution of investments which lists all the individual securities owned by the City with the book and market values. Book value is the actual price paid for the investment. Market value is the amount that the investment is worth if sold in the open market. The market value (which fluctuates daily) that is used in the report is as of the last working day of the month. Attachment 2 reflects the monthly investment transactions for the month of January 2024. Attachment 3 lists the certificates of deposit. Attachment 4 lists the municipal securities. Attachment 5 is a graph of Treasury rates on January 31, 2024.

The investment of the City’s funds is performed in accordance with the adopted Investment Policy. Funds are invested with the following objectives in mind:

1. Assets are invested in adherence with the safeguards and diversity of a prudent investor.

2. The portfolio is invested in a manner consistent with the primary emphasis on preservation of the principal, while attaining a high rate of return consistent with this guideline. Trading of securities for the sole purpose of realizing trading profits is prohibited. 89 AGENDA ITEM NO. 7.

3. Sufficient liquidity is maintained to provide a source for anticipated financial obligations as they become due.

4. Investments may be made, consistent with the Investment Policy Guidelines, in fixed income securities maturing in three years or less and can be extended to five years with the City Manager’s approval.

The Finance Department invests the City’s assets with an expectation of achieving a total rate of return at a level that exceeds the annualized rate of return on short-term government guaranteed or insured obligations (90-day Treasury bills) and to assure that the principal is preserved with minimal risk of depreciation or loss. In periods of rising interest rates, the City of Clovis portfolio return may be less than that of the annualized 90-day Treasury bill. In periods of decreasing interest rates, the City of Clovis portfolio return may be greater than the annualized 90-day Treasury bill. The current 90-day Treasury bill rate (annualized) is 5.24%. The rate of return for the City of Clovis portfolio is 3.35%. The goal for the City of Clovis investment return is 120% of the 90-day Treasury bill rate. The current rate of return is 64% of the Treasury bill rate.

In accordance with the Investment Policy, the investment period on each investment does not exceed three years and can be extended to five years with the City Manager’s approval. As of January 2024, the average investment life of the City’s investment portfolio is 1.93 years.

Current Investment Environment and Philosophy
During the month of January 2024, the federal funds rate remained at 5.25%-5.50%. On January 31, 2024, the Treasury yield curve decreased from 3-month to 10-year notes.

Certificates of Deposit (CD’s)
The City purchases both negotiable and non-negotiable Certificates of Deposit (CD’s). Although negotiable CD’s can be traded, it is the City’s policy to buy and hold all CD’s. Negotiable CD’s are held by U.S. Bank, a third party custodian. Non-negotiable CD’s are held in the City’s safe.

Purchases and Maturities
• 2 government securities totaling $1,100,000 were purchased. • 0 government securities were called or matured.
• 3 certificates of deposit totaling $750,000 were purchased. • 0 certificates of deposit were called or matured.
• 2 municipal security totaling $2,000,000 were purchased. • 0 municipal securities were called or matured.

Market Environment
• During January the federal funds rate remained at 5.25%-5.50%. • On January 31, the yield curve decreased from 3-month to 10-year notes. See Attachment 5, Graph of Treasury Rates on January 31, 2024.

Prepared by: Jeffrey Blanks, Deputy Finance Director
Reviewed by: City Manager AH
90 AGENDA ITEM NO. 7.

STATED

DAYS TO

MATURITY

NET BOOK MARKET YIELD TO INTEREST INVEST MATURITY FROM
COST VALUE VALUE * MATURITY RATE DATE DATE 1/31/2024

GOV'T SECURITIES
FFCB 5,000,000 5,000,000 4,979,250 0.250% 0.250% 03/01/21 03/01/24 30 FHLB 4,998,000 4,999,761 4,989,300 3.276% 3.250% 08/17/22 03/08/24 37 FHLB 1,994,000 1,999,246 1,996,800 3.835% 3.625% 09/14/22 03/08/24 37 FFCB 1,999,000 1,999,928 1,987,220 0.317% 0.300% 03/24/21 03/18/24 47 FHLB 5,000,000 5,000,000 4,915,000 0.350% 0.350% 06/07/21 06/07/24 128 FHLB 941,770 982,482 982,270 4.500% 0.700% 11/17/22 06/24/24 145 FHLB 4,969,000 4,990,369 4,850,200 1.274% 1.050% 01/20/22 11/15/24 289 FHLB 1,595,506 1,669,303 1,666,780 4.515% 0.500% 11/16/22 12/30/24 334 FNMA 1,857,400 1,914,723 1,921,380 4.415% 0.500% 03/23/23 02/24/25 390 FNMA 930,300 958,279 960,760 4.338% 0.520% 03/23/23 02/25/25 391 FHLB 932,200 959,340 959,110 4.328% 0.625% 03/23/23 02/27/25 393 FHLB 3,980,000 3,992,245 3,871,600 1.922% 1.750% 02/28/22 02/28/25 394 FHLB 4,000,000 4,000,000 3,908,080 2.750% 2.750% 04/25/22 04/25/25 450 FAMCMTN 3,947,600 3,977,174 3,790,120 1.121% 0.750% 12/16/21 07/28/25 544 FHLB 5,000,000 5,000,000 4,929,950 3.600% 3.600% 08/30/22 08/28/25 575 FAMCMTN 4,948,500 4,977,701 4,708,800 0.869% 0.600% 10/14/21 09/08/25 586 FHLB 871,150 892,009 882,902 3.886% 0.500% 04/26/23 11/25/25 664 FHLB 4,963,000 4,982,312 4,633,750 0.750% 0.580% 09/08/21 02/11/26 742 FHLB 3,922,000 3,959,955 3,706,320 1.229% 0.750% 12/16/21 02/24/26 755 FHLB 2,751,000 2,806,092 2,786,310 3.916% 0.790% 05/17/23 03/16/26 775 FFCB 4,967,500 4,982,008 4,578,250 1.075% 0.940% 10/14/21 09/28/26 971 FHLB 3,649,200 3,771,160 3,674,480 3.342% 1.150% 06/29/22 10/28/26 1,001 FHLB 5,988,000 5,993,041 5,513,340 1.291% 1.250% 11/24/21 11/24/26 1,028 FHLB 5,127,757 5,076,969 4,736,800 1.580% 2.125% 01/20/22 12/11/26 1,045 FHLB 4,043,250 4,190,935 4,071,441 3.397% 1.020% 06/29/22 02/24/27 1,120 FHLB 4,550,000 4,686,471 4,552,849 3.173% 1.020% 08/17/22 02/24/27 1,120 FHLB 3,695,200 3,803,996 3,790,233 2.564% 0.900% 03/31/22 02/26/27 1,122 FHLB 6,072,400 5,212,338 5,193,480 3.737% 0.900% 01/19/23 02/26/27 1,122 FHLB 5,247,000 6,240,345 6,217,767 4.329% 0.900% 02/16/23 02/26/27 1,122 FHLB 5,050,770 5,409,783 5,179,419 3.971% 1.000% 12/14/22 02/26/27 1,122 FHLB 4,000,000 4,000,000 3,779,120 2.375% 2.375% 03/08/22 03/08/27 1,132 FFCB 5,160,000 5,292,287 5,271,960 3.996% 0.830% 03/23/23 02/22/28 1,483 FHLB 355,160 355,160 354,232 4.123% 1.125% 01/18/24 02/25/28 1,486 FFCB 2,123,750 2,145,842 2,201,625 4.812% 1.000% 09/27/23 03/02/28 1,492 FHLB 1,893,209 3,108,301 1,975,196 5.018% 1.000% 10/18/23 03/10/28 1,500 FHLB 3,124,500 1,909,429 3,052,950 3.553% 4.500% 05/17/23 03/10/28 1,500 FFCB 626,780 626,780 625,114 4.121% 1.370% 01/18/04 03/22/28 1,512 FFCB 6,102,000 6,088,091 5,972,820 3.501% 3.875% 04/26/23 04/25/28 1,546 FFCB 5,354,250 5,370,708 5,343,030 4.349% 3.740% 06/14/23 04/27/28 1,548 FFCB 2,955,000 2,959,283 2,976,900 4.814% 4.470% 07/12/23 06/22/28 1,604 FFCB 2,641,500 2,643,866 2,645,610 4.130% 1.230% 12/20/23 07/13/28 1,625 FHLMC 853,500 857,427 879,120 4.601% 1.100% 11/15/23 07/27/28 1,639 FNMA 848,800 852,851 874,970 4.613% 1.000% 11/15/23 07/28/28 1,640 FHLB 882,500 883,265 881,830 4.117% 1.300% 12/20/23 08/04/28 1,647 FHLB 2,981,700 2,982,458 3,100,170 4.892% 4.750% 10/18/23 09/08/28 1,682 FHLMC 842,300 846,330 866,670 4.614% 1.000% 11/15/23 10/19/28 1,723 SECURITIES TOTAL $ 155,350,042 153,736,451 $ 151,735,277 $ LAIF $ 56,706,769 56,706,769 $
Municipal Issuance $ 56,405,113 57,130,672 $
Sweep Account (Union Bank) $ 27,174,496 27,174,496 $
TOTAL CD'S $ 29,646,249 29,745,000 $
TOTAL INVESTMENTS $ 321,667,904 326,106,979 $
* Market values for securities obtained from US Bank.

City of Clovis
Distribution of Investments
As of January 31, 2024
ATTACHMENT 1
91 AGENDA ITEM NO. 7.

Activity Maturity
Institution Description Activity Amount Market Value Rate Date Date FFCB Gov. Sec. Purchase 700,000 626,780 1.370% 01/18/24 03/22/28 FHLB Gov. Sec. Purchase 400,000 355,160 1.125% 01/18/24 02/25/28 Desert CA Cmnty Clg Mun Iss. Purchase 1,000,000 907,300 2.023% 01/19/24 08/01/28 Santa Clarita CA Cmnty Mun Iss. Purchase 1,000,000 888,500 1.563% 01/19/24 08/01/28 Farmers & Merchants CD Purchase 250,000 250,000 4.150% 01/30/24 02/01/27 Hughes Fed Cr Un CD Purchase 250,000 250,000 4.400% 01/29/24 01/29/27 MVB Bk Inc Fairmont CD Purchase 250,000 250,000 4.250% 01/31/24 01/29/27

PORTFOLIO DATA
Current Month (01/24)
Book Market
CD'S 29,745,000 $ 29,646,249 $
Gov't Securities* 155,350,042 151,735,277
Municipal Securities 57,130,672 56,405,113
LAIF 56,706,769 56,706,769
Sweep Account (Union Bank) 27,174,496 27,174,496
TOTAL 326,106,979 $ 321,667,904 $
Prior Month (12/23) Three Months Previous (10/23)
Book Market Book Market
CD'S 28,995,000 $ 28,689,096 $ CD'S 27,245,000 $ 26,545,011 $ Gov't Securities* 154,368,102 150,412,489 Gov't Securities* 147,880,942 140,544,390 Municipal Securities 55,334,718 54,350,950 Municipal Securities 56,265,639 54,033,514 LAIF 56,142,817 56,142,817 LAIF 56,142,817 56,142,817
Sweep Account (Union Bank) 9,575,028 9,575,028 Sweep Account (Union Bank) 13,554,212 13,554,212 TOTAL 304,415,665 $ 299,170,380 $ TOTAL 301,088,610 $ 290,819,944 $ Six Months Previous (07/23) One Year Previous (01/23)
Book Market Book Market
CD'S 26,245,000 $ 25,548,434 $ CD'S 20,495,000 $ 19,979,564 $ Gov't Securities* 140,516,837 133,631,352 Gov't Securities* 131,438,007 125,970,574 Municipal Securities 59,228,719 57,461,565 Municipal Securities 52,935,000 49,074,621 LAIF 65,589,725 65,589,725 LAIF 75,000,000 75,000,000
Sweep Account (Union Bank) 6,314,423 6,314,423 Sweep Account (Union Bank) 29,536,545 29,536,545 TOTAL 297,894,704 $ 288,545,499 $ TOTAL 309,404,552 $ 299,561,304 $ *Adjusted Quarterly for Premium/Discount Amortization
As of January 31, 2024
Monthly Investment Transactions
City of Clovis
ATTACHMENT 2
92 AGENDA ITEM NO. 7.

MARKET INTEREST INVEST MATURITY MATURITY FROM INTEREST
Negotiable CDs COST PRICE RATE DATE DATE 01/31/24 FREQUENCY Transportation Alliance Bk 250,000 248,592.50 0.250% 03/12/21 03/12/24 41 QUARTERLY Preferred Bank 250,000 248,155.00 0.250% 03/25/21 03/25/24 54 QUARTERLY Bankunited Natl Assn 245,000 243,076.75 0.450% 03/31/21 04/01/24 61 QUARTERLY Greenstate Credit Union 250,000 245,652.50 0.450% 06/16/21 06/17/24 138 QUARTERLY Eaglemark Savings Bank 250,000 245,295.00 0.400% 06/30/21 06/28/24 149 QUARTERLY Texas Exchange Bk 250,000 245,057.50 0.500% 07/09/21 07/09/24 160 QUARTERLY BMW Bk North Amer 250,000 244,537.50 0.550% 07/30/21 07/30/24 181 QUARTERLY Toyota Finl Svgs 250,000 243,635.00 0.650% 09/09/21 09/09/24 222 QUARTERLY State Bk India 250,000 243,415.00 0.650% 09/17/21 09/17/24 230 QUARTERLY Ubs Bank Usa 250,000 241,877.50 0.750% 11/17/21 11/18/24 292 QUARTERLY Webbank Salt Lake City 250,000 241,665.00 0.750% 11/29/21 11/29/24 303 QUARTERLY Medallion Bank Salt Lake City 250,000 241,377.50 0.900% 12/20/21 12/20/24 324 QUARTERLY Beal Bank 250,000 240,970.00 0.950% 01/19/22 01/15/25 350 QUARTERLY Mountian Amer Fed 250,000 246,367.50 3.450% 08/31/22 02/28/25 394 QUARTERLY Barclays Bk 250,000 241,730.00 1.700% 03/09/22 03/10/25 404 QUARTERLY Goldman Sachs Bk 250,000 241,595.00 1.650% 03/09/22 03/10/25 404 QUARTERLY Safra National Bk 250,000 242,305.00 2.000% 03/23/22 03/24/25 418 QUARTERLY Pentagon Federal Cr Un 250,000 242,157.50 2.000% 03/28/22 03/28/25 422 QUARTERLY Beal Bank 250,000 242,725.00 2.200% 04/06/22 04/02/25 427 QUARTERLY JP Morgan Chase 250,000 243,462.50 2.500% 04/08/22 04/08/25 433 QUARTERLY First Natl Bank 250,000 242,550.00 2.200% 04/12/22 04/11/25 436 QUARTERLY One Community Bank 250,000 243,792.50 2.700% 04/29/22 04/29/25 454 QUARTERLY Americu Credit Union 250,000 244,065.00 2.800% 05/02/22 05/02/25 457 QUARTERLY Synchrony Bank Retail 250,000 244,850.00 3.100% 05/20/22 05/20/25 475 QUARTERLY Connexus Credit Union 250,000 244,507.50 3.000% 05/26/22 05/27/25 482 QUARTERLY Bmo Harris Bank 250,000 244,800.00 3.150% 06/17/22 06/17/25 503 QUARTERLY Saco Biddeford 250,000 243,802.50 2.850% 06/17/22 06/17/25 503 QUARTERLY Baxter Credit Union 250,000 245,585.00 3.400% 06/28/22 06/30/25 516 QUARTERLY Capital One Bank 250,000 245,417.50 3.350% 06/29/22 06/30/25 516 QUARTERLY American First Cr Un 250,000 244,960.00 3.250% 07/15/22 07/15/25 531 QUARTERLY Trustone Financial Cr Un 250,000 244,925.00 3.250% 07/19/22 07/21/25 537 QUARTERLY American Natl Bank 250,000 244,345.00 3.100% 07/27/22 07/28/25 544 QUARTERLY TCM Bank 250,000 245,242.50 3.350% 07/28/22 07/28/25 544 QUARTERLY Generations Bank 250,000 245,420.00 3.400% 08/03/22 08/04/25 551 QUARTERLY Direct Fed Credit 250,000 245,167.50 3.500% 08/17/22 08/18/25 565 QUARTERLY Resource One Credit 250,000 244,980.00 3.300% 08/17/22 08/18/25 565 QUARTERLY Connext Credit 250,000 245,715.00 3.500% 08/31/22 08/29/25 576 QUARTERLY Skyone Fed Credit 250,000 246,085.00 3.600% 08/30/22 09/02/25 580 QUARTERLY Credit Union of Texas 250,000 246,097.50 3.600% 09/14/22 09/15/25 593 QUARTERLY Forbright Bank 250,000 245,602.50 3.500% 09/16/22 09/16/25 594 QUARTERLY Ally Bank Sandy Utah 250,000 245,997.50 4.050% 09/29/22 09/19/25 597 QUARTERLY Alabama Credit Union 250,000 247,552.50 3.600% 09/20/22 09/22/25 600 QUARTERLY Kemba Finl Credit Union 250,000 247,735.00 4.000% 09/21/22 09/22/25 600 QUARTERLY Farmers Merchants 250,000 246,577.50 3.750% 09/28/22 09/29/25 607 QUARTERLY Jefferson Finl FCU 250,000 248,177.50 4.150% 09/29/22 09/29/25 607 QUARTERLY Dort Finl Credit Union 250,000 247,607.50 4.000% 09/30/22 09/30/25 608 QUARTERLY First National Bank 250,000 246,585.00 3.625% 09/30/22 09/30/25 608 QUARTERLY Numerica Credit Union 250,000 248,782.50 4.200% 09/30/22 09/30/25 608 QUARTERLY Vystar Credit Union 250,000 248,950.00 4.350% 09/30/22 09/30/25 608 QUARTERLY Bell Bank Fargo 250,000 248,165.00 4.150% 10/13/22 10/14/25 622 QUARTERLY Pacific Alliance 250,000 248,165.00 4.200% 10/14/22 10/14/25 622 QUARTERLY z1st Financial Bank 250,000 248,367.50 4.150% 10/13/22 10/17/25 625 QUARTERLY Great Southern Bank 250,000 249,612.50 4.500% 10/20/22 10/20/25 628 QUARTERLY American Bank 250,000 248,930.00 4.350% 10/21/22 10/21/25 629 QUARTERLY Queensborough Natl Bank 250,000 248,582.50 4.100% 10/21/22 10/21/25 629 QUARTERLY Public Alliance Cr Un 250,000 249,637.50 4.500% 10/25/22 10/27/25 635 QUARTERLY First Citizens Bank 250,000 250,390.00 4.700% 10/28/22 10/28/25 636 QUARTERLY LCA Bank Corp 250,000 249,152.50 4.400% 10/28/22 10/28/25 636 QUARTERLY Sharonview Fed Cr Un 250,000 250,262.50 4.850% 10/31/22 10/31/25 639 QUARTERLY United Heritage Cr Un 250,000 250,782.50 4.700% 11/04/22 11/04/25 643 QUARTERLY Capital One Natl Assn 250,000 251,492.50 4.900% 11/16/22 11/17/25 656 QUARTERLY Morgan Stanley Bank 250,000 250,292.50 5.000% 11/18/22 11/18/25 657 QUARTERLY Spokane Teachers Cr Un 250,000 251,940.00 5.000% 11/23/22 11/23/25 662 QUARTERLY Morgan Stanley Private 250,000 250,075.00 4.750% 12/09/22 12/09/25 678 QUARTERLY City of Clovis
Certificates of Deposit
As of January 31, 2024
ATTACHMENT 3
93 AGENDA ITEM NO. 7.

MARKET INTEREST INVEST MATURITY MATURITY FROM INTEREST
Negotiable CDs COST PRICE RATE DATE DATE 01/31/24 FREQUENCY City of Clovis
Certificates of Deposit
As of January 31, 2024
Community Bank Topeka 250,000 248,922.50 4.300% 12/14/22 12/15/25 684 QUARTERLY Austin Telco Fed 250,000 251,852.50 4.950% 12/16/22 12/16/25 685 QUARTERLY Rogue Credit Union 250,000 250,055.00 5.100% 12/23/22 12/23/25 692 QUARTERLY Alliant Credit Union 250,000 252,655.00 5.100% 12/30/22 12/30/25 699 QUARTERLY First Technology Fed Cr Un 250,000 252,882.50 5.150% 06/30/23 12/30/25 699 MONTHLY Liberty First Cr Un 250,000 250,220.00 4.550% 01/17/23 01/19/26 719 QUARTERLY Capital Educators Fed Cr 250,000 250,252.50 4.550% 01/19/23 01/20/26 720 QUARTERLY Manufacturers Traders 250,000 249,367.50 4.250% 01/31/23 01/23/26 723 QUARTERLY City Natl Bank 250,000 248,977.50 4.350% 01/25/23 01/26/26 726 QUARTERLY Coastlife Cr Un 250,000 250,802.50 4.650% 02/13/23 02/13/26 744 QUARTERLY Achieve Finl Cr Un 250,000 250,825.00 4.650% 02/17/23 02/17/26 748 QUARTERLY California Cr Un Glendale 250,000 250,022.50 4.500% 02/23/23 02/23/26 754 QUARTERLY Truliant Fed Cr Un 250,000 250,665.00 4.600% 02/28/23 02/27/26 758 QUARTERLY Pioneer Fed Cr Un Mtn Home 250,000 250,677.50 4.600% 02/28/23 03/02/26 761 QUARTERLY Tradition Cap Bankk 250,000 250,412.50 4.600% 03/03/23 03/03/26 762 MONTHLY Alaska Fed Cr 250,000 251,387.50 4.650% 03/05/23 03/09/26 768 MONTHLY Mid Carolina Credit 250,000 252,687.50 4.600% 03/13/23 03/13/26 772 MONTHLY Blue Ridge Bank 250,000 252,682.50 4.500% 03/16/23 03/16/26 775 MONTHLY Northwest Bank 250,000 252,765.00 4.600% 03/17/23 03/17/26 776 MONTHLY Valleystar Credit Union 250,000 252,790.00 4.600% 03/20/23 03/20/26 779 MONTHLY First Community Bank 250,000 252,517.50 4.500% 03/22/23 03/23/26 782 MONTHLY Technology Credit Union 250,000 252,835.00 4.650% 03/23/23 03/23/26 782 MONTHLY Cibc Bank 250,000 252,492.50 4.650% 03/24/23 03/24/26 783 MONTHLY Signature Bank 250,000 252,822.50 4.500% 03/24/23 03/24/26 783 MONTHLY Point West Credit Union 250,000 252,940.00 5.000% 04/12/23 04/13/26 803 MONTHLY Flagstar Bank 250,000 253,045.00 4.650% 03/30/23 04/24/26 814 MONTHLY Utah Cmnty Credit Union 250,000 251,010.00 4.600% 04/26/23 04/27/26 817 MONTHLY Cross River Bank 250,000 251,335.00 4.650% 05/19/23 05/19/26 839 MONTHLY Raiz FCU 250,000 252,267.50 4.650% 05/24/23 05/26/26 846 MONTHLY Usalliance FCU 250,000 251,715.00 4.700% 05/26/23 05/26/26 846 MONTHLY Chartway Fed Cr Un 250,000 252,932.50 4.900% 06/09/23 06/09/26 860 MONTHLY Customers Bank 250,000 251,827.50 4.700% 06/14/23 06/15/26 866 MONTHLY Lafayette Fed Cr Un 250,000 253,295.00 4.950% 12/13/23 06/15/26 866 QUARTERLY Latino Cmnty Cr Un 250,000 253,137.50 4.900% 06/27/23 06/29/26 880 MONTHLY Leaders Cr Un 250,000 253,717.50 5.000% 06/30/23 06/30/26 881 MONTHLY Farmers Insurance 250,000 253,887.50 5.000% 07/21/23 07/21/26 902 MONTHLY Maine Svgs FCU 250,000 253,887.50 5.000% 07/21/23 07/21/26 902 MONTHLY Popular Bank New York 250,000 253,450.00 4.850% 09/06/23 09/04/26 947 QUARTERLY Freedom Northwest Cr Un 250,000 256,675.00 5.350% 09/19/23 09/18/26 961 QUARTERLY Amex National Bank 250,000 254,535.00 5.000% 09/20/23 09/21/26 964 QUARTERLY First Gty Bank 250,000 255,370.00 5.100% 10/13/23 10/13/26 986 MONTHLY Bridgewater Bank 250,000 255,602.50 5.100% 11/03/23 11/03/26 1,007 MONTHLY Taylorsville Svgs Bk 250,000 255,602.50 5.100% 11/03/23 11/03/26 1,007 MONTHLY Mountain Comm Bk 250,000 252,095.00 4.500% 12/20/23 12/21/26 1,055 QUARTERLY American Bk Freedom 250,000 252,015.00 4.500% 12/22/23 12/22/26 1,056 QUARTERLY Rockland Fed Cr Un 250,000 252,782.50 4.600% 12/22/23 12/22/26 1,056 QUARTERLY Hughes Fed Cr Un 250,000 251,775.00 4.400% 01/29/24 01/29/27 1,094 QUARTERLY MVB Bk Inc Fairmont 250,000 250,697.50 4.250% 01/31/24 01/29/27 1,094 QUARTERLY Farmers & Merchants Tr Co 250,000 250,027.50 4.150% 01/30/24 02/01/27 1,097 QUARTERLY People Bank Co 250,000 254,930.00 4.650% 03/30/23 03/30/27 1,154 MONTHLY Carroll County 250,000 254,207.50 4.650% 03/30/23 03/30/28 1,520 MONTHLY Discover Bank 250,000 252,790.00 4.350% 04/26/23 04/24/28 1,545 MONTHLY TTCU Fed Cr Un 250,000 259,820.00 5.000% 07/26/23 07/26/28 1,638 MONTHLY Wells Fargo Natl Bk 250,000 261,212.50 5.050% 11/14/23 11/14/28 1,749 MONTHLY Consumers Fed Cr Un 250,000 260,722.50 5.000% 11/16/23 11/16/28 1,751 MONTHLY Negotiable CD TOTAL $ 29,646,249 29,745,000 $
CD TOTAL $ 29,646,249 29,745,000 $
ATTACHMENT 3
94 AGENDA ITEM NO. 7.

MARKET INTEREST INVEST MATURITY MATURITY FROM INTEREST
Municipal Securities COST PRICE RATE DATE DATE 01/31/24 FREQUENCY San Diego CA Convention Ref Bond 1,442,467 1,438,110 1.527% 08/18/22 04/15/24 75 QUARTERLY Santa Ana College Ref Bond 439,115 430,927 0.644% 12/17/21 08/01/24 183 QUARTERLY University CA Rev Bond 988,158 979,170 4.350% 09/15/22 05/15/25 470 QUARTERLY Antelope Valley CA Ref Bond 737,063 718,463 1.767% 05/12/22 08/01/25 548 QUARTERLY Chabot Las Positas Cmnty Clg Bond 1,444,182 1,409,480 0.880% 04/29/22 08/01/25 548 QUARTERLY Foothill De Anza Bond 793,391 791,338 0.906% 03/24/23 08/01/25 548 QUARTERLY San Dieguito High School Ref Bond 958,910 957,130 1.661% 10/13/22 08/01/25 548 QUARTERLY Santa Ana CCD Ref Bond 240,890 235,833 0.744% 05/12/22 08/01/25 548 QUARTERLY Orange County Water Dist Ref Bond 868,039 867,006 2.095% 10/13/22 08/15/25 562 QUARTERLY San Jose CA Txble Ser B 2,282,082 2,277,638 2.450% 10/13/22 09/01/25 579 QUARTERLY Los Angeles CA USD Ref Bond 1,005,405 930,690 1.455% 11/15/21 07/01/26 882 QUARTERLY Chabot Las Positas Cmnty Clg CA 3,331,213 3,232,206 1.080% 07/27/22 08/01/26 913 QUARTERLY Chaffey CA High School Ref Bond 1,524,924 1,493,573 2.475% 06/30/22 08/01/26 913 QUARTERLY Huntington Beach HS Dist Ref Bond 3,165,757 3,053,985 1.208% 04/29/22 08/01/26 913 QUARTERLY Placentia Yorba USD Ref Bond 1,059,224 1,023,342 1.070% 05/31/22 08/01/26 913 QUARTERLY San Diego CA Cmnty Ref Bond 460,727 447,149 2.299% 04/29/22 08/01/26 913 QUARTERLY San Ramon Valley CA USD Ref Bond 2,125,000 1,965,306 1.147% 11/03/21 08/01/26 913 QUARTERLY Sonoma Cnty Jr College Ref Bond 1,947,394 1,906,040 2.447% 06/30/22 08/01/26 913 QUARTERLY San Diego CA Pub Facs Ref Bond 1,557,631 1,513,931 1.812% 08/18/22 10/15/26 988 QUARTERLY CA ST Univ Rev Ref Bond 2,284,645 2,296,225 1.142% 02/17/23 11/01/26 1,005 QUARTERLY El Dorado CA Irr Dist Ref Bond 1,115,615 1,082,586 1.687% 08/18/22 03/01/27 1,125 QUARTERLY Rancho Santiago Cmnty Clg 298,847 299,524 1.106% 11/17/22 03/01/27 1,125 QUARTERLY University Gen Rev Bond 2,152,755 2,171,924 1.316% 10/13/22 05/15/27 1,200 QUARTERLY El Monte Ca Ref Bond 542,885 543,366 1.326% 03/24/23 06/01/27 1,217 QUARTERLY Los Angeles CA Dept Wtr Ref Bond 2,096,247 2,063,820 5.516% 04/27/23 07/01/27 1,247 QUARTERLY Colton CA Jt Uni Sch 960,821 968,469 1.603% 11/17/22 08/01/27 1,278 QUARTERLY Contra Costa Ref Bond 830,845 821,762 2.163% 09/15/22 08/01/27 1,278 QUARTERLY Corona Norco Ref Bond 228,152 233,220 2.297% 09/28/23 08/01/27 1,278 QUARTERLY Foothill De Anza CCD 490,256 491,935 1.473% 12/15/22 08/01/27 1,278 QUARTERLY Fremont CA Uni Sch Dist 1,088,767 991,012 1.113% 11/17/22 08/01/27 1,278 QUARTERLY Fremont CA USD Ref Bond 988,497 1,059,630 2.000% 05/31/22 08/01/27 1,278 QUARTERLY Marin CA Cmnty Clg Dist 321,391 324,890 3.330% 11/17/22 08/01/27 1,278 QUARTERLY Mount San Antonio Cmnty Clg 252,818 255,708 1.139% 11/17/22 08/01/27 1,278 QUARTERLY Mount San Antonio Ref Bond 375,771 378,857 2.329% 10/13/22 08/01/27 1,278 QUARTERLY Saddleback VY Uni Ref Bond 2,909,508 2,825,280 2.400% 08/10/22 08/01/27 1,278 QUARTERLY San Diego CA Com CD 554,376 554,860 2.407% 12/15/22 08/01/27 1,278 QUARTERLY San Ramon Valley Ref Bond 1,321,725 1,305,750 3.415% 09/15/22 08/01/27 1,278 QUARTERLY Santa Monica Cmnty Clg Ref Bond 985,080 974,140 3.050% 09/15/22 08/01/27 1,278 QUARTERLY Sierra CA Cmnty Clg Dist 414,371 418,323 1.129% 11/17/22 08/01/27 1,278 QUARTERLY William Hart CA Un High 177,904 180,274 1.174% 11/17/22 08/01/27 1,278 QUARTERLY San Jose CA Txble Ser B 852,242 859,713 2.600% 10/13/22 09/01/27 1,309 QUARTERLY Soquel Creek Cnty Ref Bond 488,864 487,415 1.445% 05/18/23 03/01/28 1,491 QUARTERLY Gardena Calif Pension Oblig 902,207 929,190 2.663% 10/19/23 04/01/28 1,522 QUARTERLY Beverly Hills Ref Bond 563,569 558,743 1.514% 06/15/23 06/01/28 1,583 QUARTERLY California Health FACS 713,788 729,532 3.378% 11/16/23 06/01/28 1,583 QUARTERLY Desert CA Cmnty College 907,300 915,110 2.023% 01/19/24 08/01/28 1,644 QUARTERLY Redondo Beach Ref Bond 577,213 593,757 1.430% 09/28/23 08/01/28 1,644 QUARTERLY San Ramon Valley CA Uni 1,608,124 1,632,394 1.670% 07/13/23 08/01/28 1,644 QUARTERLY Santa Ana College Impt 1,301,286 1,318,425 1.320% 07/13/23 08/01/28 1,644 QUARTERLY Santa Clarita CA Cmnty 888,500 888,790 1.563% 01/19/24 08/01/28 1,644 QUARTERLY William Hart CA High 880,712 887,140 1.429% 12/21/23 08/01/28 1,644 QUARTERLY Yosemite Calif Cmnty Clg 684,019 692,033 2.210% 12/21/23 08/01/28 1,644 QUARTERLY Mun. Securities TOTAL $ 56,405,113 57,130,672 $
Municipal Securities TOTAL $ 56,405,113 57,130,672 $
City of Clovis
Municipal Securities
As of January 31, 2024
ATTACHMENT 4
95 AGENDA ITEM NO. 7.

Treasury Rates as of January 31, 2024
3 month Treasury bill 5.42
6 month Treasury bill 5.18
2 Yr Treasury note 4.27
3 Yr Treasury note 4.05
5 Yr Treasury note 3.91
10 Yr Treasury note 3.99

CITY OF CLOVIS

FINANCE DEPARTMENT
JANUARY 31, 2024 TREASURY RATES
As indicated in the above graph, treasuries decrease from 3-month to 10-year notes. 0 1
2 3
4 5
6 3 month
Treasury bill
6 month
Treasury bill
2 Yr Treasury
note
3 Yr Treasury
note
5 Yr Treasury
note
10 Yr
Treasury note

INTEREST RATES

TREASURIES
TREASURY RATES ON JANUARY 31, 2024
ATTACHMENT 5
96 AGENDA ITEM NO. 7.

TO: Mayor and City Council
FROM: Finance Department
DATE: May 20, 2024
SUBJECT: Finance – Receive and File – Treasurer’s Report for the Month of January 2024.

ATTACHMENTS: 1. Summary of Cash Balances

2. Summary of Investment Activity

3. Investments with Original Maturities Exceeding One Year

CONFLICT OF INTEREST
Councilmembers should consider recusal if a campaign contribution exceeding $250 has been received from the project proponent (developer, applicant, agent, and/or participants) within the preceding 12 months (Government Code 84308).

EXECUTIVE SUMMARY
Attached for the Council’s information is the Treasurer’s Report for the month ended January 31, 2024.

Pursuant to Section 41004 of the Government Code of the State of California, the City Treasurer is required to submit a monthly report of all receipts, disbursements, and fund balances.

Attachment 1 provides a summary of the beginning balance, total receipts, total disbursements, ending balance for all funds, and a listing, by fund, of all month end fund balances. Attachment 2 summarizes the investment activity for the month and distribution, by type of investment, held by the City. Attachment 3 lists all investments with original maturities exceeding one year as of the month ended January 31, 2024.

Prepared by: Jeffrey Blanks, Deputy Finance Director
Reviewed by: City Manager AH
97 AGENDA ITEM NO. 8.

Previous Balance $ 5,102,169.87
Deposits 50,078,454.73
Disbursements (50,558,613.67)
Current Balance $ 4,622,010.93

FUNDS BALANCE
100 General Fund 16,334,135.43 $
201 Local Transportation 18,891,885.79
202 Parking and Business Improvements 200,785.76
203 Off Highway Use 73,665.31
204 Community Facilities District 2020-1 243,383.03
205 Senior Citizen Memorial Trust 56,444.16
207 Landscape Assessment District 8,311,105.57
208 Blackhorse III (95-1) Assessment District 18,960.71 209 Blackhorse III (95-1) Assessment District 2 46,048.92 275 HCD Block Grant Fund 575,954.77
301 Park & Recreation Acquisition 8,343,658.58
305 Refuse Equipment Reserve 2,448,664.56
310 Special Street Deposit Fund 49,983,209.71
314 Housing Successor Agency 381,971.07
402 1976 Fire Bond Redemption 25,475.23
404 1976 Sewer Bond Redemption Fund 425,512.34
501 Community Sanitation Fund 16,157,545.21
502 Sewer Service Fund 37,344,352.78
504 Sewer Capital Projects-Users 556,834.84
506 Sewer Capital Projects-Developer 5,287,448.54
507 Water Service Fund 45,999,585.66
508 Water Capital Projects-Users 6,230,078.87
509 Water Capital Projects-Developer 12,391,407.66
515 Transit Fund 4,426,735.47
540 Planning & Development Services 15,907,543.18
601 Property & Liability Insurance 272,489.48
602 Fleet Maintenance 24,377,903.83
603 Employee Benefit Fund 12,881,673.13
604 General Government Services 29,435,123.66
605 Facilities Maintenance 4,491,465.60
606 Information Technology 6,622,459.84
701 Curb & Gutter Fund 168,137.22
703 Payroll Tax & Withholding Fund 1,476,383.11
712 Temperance/Barstow Assmt Dist (98-1) 79,311.57
713 Shepherd/Temperance Assmt Dist (2000-1) 5,898.56
715 Supp Law Enforcement Serv 269,808.05
716 Asset Forfeiture 357,073.71
720 Measure A-Public Safety Facility Tax 1,991.09
736 SA Admin Trust Fund 1,421.40
741 SA Debt Service Trust Fund (375,681.37)
747 Housing Successor Trust Fund 1,137.98
SUBTOTALS $ 330,728,990.01
999 Invested Funds (326,106,979.08)
TOTAL $ 4,622,010.93
Statement of Cash Balances
As of January 31, 2024
City of Clovis
ATTACHMENT 1
98 AGENDA ITEM NO. 8.

Balance of Investments Previous Month End 304,415,666.43 $ Time Certificates of Deposit Transactions
Investments 750,000.00
Withdrawals 0.00
Total CD Changes 750,000.00
Other Changes
Government Securities 981,940.00
Local Agency Investment Fund 563,952.04
Municipal Securities 1,795,953.00
Sweep Account 17,599,467.61
Total Other Changes 20,941,312.65
Balance of Investments Current Month End $ 326,106,979.08 Insured CD's 29,745,000.00
Government Securities 155,350,042.35
US Treasury Notes 0.00
Local Agency Investment Fund 56,706,769.08
Municipal Securities 57,130,671.55
Sweep Account 27,174,496.10
Investment Total $ 326,106,979.08
Distribution of Investments
As of January 31, 2024
City of Clovis
Summary of Investment Activity
For the month of January 31, 2024
City of Clovis
ATTACHMENT 2
99 AGENDA ITEM NO. 8.

Investment
Balance At Stated
Institution Face Value Amortized Cost Maturity Rate
FFCB 5,000,000.00 5,000,000 3/1/2024 0.250%
FHLB 5,000,000.00 4,999,761 3/8/2024 3.250%
FFCB 2,000,000.00 1,999,246 3/8/2024 3.625%
FHLB 2,000,000.00 1,999,928 3/18/2024 0.300%
FHLB 5,000,000.00 5,000,000 6/7/2024 0.350%
FHLB 1,000,000.00 982,482 6/24/2024 0.700%
FHLB 5,000,000.00 4,990,369 11/15/2024 1.050%
FHLB 1,735,000.00 1,669,303 12/30/2024 0.500%
FNMA 2,000,000.00 1,914,723 2/24/2025 0.500%
FNMA 1,000,000.00 958,279 2/25/2025 0.520%
FHLB 1,000,000.00 959,340 2/27/2025 0.625%
FHLB 4,000,000.00 3,992,245 2/28/2025 1.750%
FAMCMTN 4,000,000.00 4,000,000 4/25/2025 2.750%
FAMCMTN 4,000,000.00 3,977,174 7/28/2025 0.750%
FHLB 5,000,000.00 5,000,000 8/28/2025 3.600%
FHLB 5,000,000.00 4,977,701 9/8/2025 0.600%
FHLB 980,000.00 892,009 11/25/2025 0.500%
FFCB 5,000,000.00 4,982,312 2/11/2026 0.580%
FHLB 4,000,000.00 3,959,955 2/24/2026 0.750%
FHLB 3,000,000.00 2,806,092 3/16/2026 0.790%
FHLB 5,000,000.00 4,982,008 9/28/2026 0.940%
FHLB 4,000,000.00 3,771,160 10/28/2026 1.150%
FHLB 6,000,000.00 5,993,041 11/24/2026 1.250%
FHLB 5,000,000.00 5,076,969 12/11/2026 2.125%
FHLB 4,500,000.00 4,190,935 2/24/2027 1.020%
FHLB 5,000,000.00 4,686,471 2/24/2027 1.020%
FHLB 4,000,000.00 3,803,996 2/26/2027 0.900%
FHLB 6,800,000.00 6,240,345 2/26/2027 0.900%
FHLB 5,700,000.00 5,212,338 2/26/2027 0.900%
FHLB 6,000,000.00 5,409,783 2/26/2027 1.000%
FHLB 4,000,000.00 4,000,000 3/8/2027 2.375%
FHLB 6,000,000.00 5,292,287 2/22/2028 0.830%
FHLB 400,000.00 355,160 2/25/2028 1.125%
FFCB 2,500,000.00 2,145,842 3/2/2028 1.000%
FHLB 3,000,000.00 3,108,301 3/10/2028 4.500%
FFCB 2,245,000.00 1,909,429 3/10/2028 1.000%
FFCB 700,000.00 626,780 3/22/2028 1.370%
FFCB 6,000,000.00 6,088,091 4/25/2028 3.875%
FFCB 5,500,000.00 5,370,708 4/27/2028 3.740%
FFCB 3,000,000.00 2,959,283 6/22/2028 4.470%
FFCB 3,000,000.00 2,643,866 7/13/2028 1.230%
FHLMC 1,000,000.00 857,427 7/27/2028 1.100%
FNMA 1,000,000.00 852,851 7/28/2028 1.000%
FHLB 1,000,000.00 883,265 8/4/2028 1.300%
FFCB 3,000,000.00 2,982,458 9/8/2028 4.750%
FHLMC 1,000,000.00 846,330 10/19/2028 1.000%
City of Clovis
Government Maturities Exceeding One Year
As of January 31, 2024
ATTACHMENT 3
100
AGENDA ITEM NO. 8.

Investment
Balance At Stated
Institution Face Value Amortized Cost Maturity Rate
San Diego Conv Ctr Expansion 1,450,000.00 1,442,467 4/15/2024 1.527% Sana Ana College Improv Dist 440,000.00 439,115 8/1/2024 0.644% UC General Revenue Bonds 1,000,000.00 988,158 5/15/2025 3.050% Antelope Valley Comm Coll 750,000.00 737,063 8/1/2025 1.767% Chabot Las Positas Comm Coll 1,490,000.00 1,444,182 8/1/2025 0.880% Foothill De Anza Ref Bds 2021B 835,000.00 793,391 8/1/2025 0.906% San Dieguito USD GO Bonds 1,000,000.00 958,910 8/1/2025 1.661% Santa Ana Coll Improv Dist 250,000.00 240,890 8/1/2025 0.744% Orange County Water Dist 900,000.00 868,039 8/15/2025 2.095% San Jose Ca Taxable Series B 2,355,000.00 2,282,082 9/1/2025 2.450% LA CUSD GO Bonds 1,000,000.00 1,005,405 7/1/2026 1.455% Chabot Las Positas Comm Coll 3,505,000.00 3,331,213 8/1/2026 1.080% Chaffey Joint Union HS 1,565,000.00 1,524,924 8/1/2026 2.475% Huntington Beach Union HS 3,305,000.00 3,165,757 8/1/2026 1.208% Placentia Yorba Linda USD 1,110,000.00 1,059,224 8/1/2026 1.070% San Diego Comm Coll Dist 470,000.00 460,727 8/1/2026 2.299% San Ramon Valley CUSD 2,125,000.00 2,125,000 8/1/2026 1.147% Sonoma County Jr Coll Dist 2,000,000.00 1,947,394 8/1/2026 2.447% San Diego Pub Facilities Dist 1,625,000.00 1,557,631 10/15/2026 1.812% California St Univ Taxable 2021B 2,500,000.00 2,284,645 11/1/2026 1.142% El Dorado Irrigation Dist 1,175,000.00 1,115,615 3/1/2027 1.687% Rancho Santiago CC Ref 2020 335,000.00 298,847 3/1/2027 1.106% UC Taxable Gen Bds 2020 B 2,385,000.00 2,152,755 5/15/2027 1.316% El Monte HSD Taxable Ref 2021 600,000.00 542,885 6/1/2027 1.326% LA Dept Wtr Pwr Rev Bonds 2010C 2,000,000.00 2,096,247 7/1/2027 5.516% Colton CA USD Ref Bonds 2020 1,060,000.00 960,821 8/1/2027 1.603% Contra Costa Comm College Dist 880,000.00 830,845 8/1/2027 2.163% Corona Norco USD Ref Bond 2019 250,000.00 228,152 8/1/2027 2.297% Foothill De Anza CC Taxable 2021 540,000.00 490,256 8/1/2027 1.473% Fremont USD Alameda County 1,100,000.00 1,088,767 8/1/2027 1.113% Fremont USD Taxable Ref 2021 1,140,000.00 988,497 8/1/2027 2.000% Marin County Comm Coll 2016 335,000.00 321,391 8/1/2027 3.330% Mount San Antonio CC 2021 285,000.00 252,818 8/1/2027 1.139% Mount San Antonio Comm Coll 405,000.00 375,771 8/1/2027 2.329% Saddleback Valley USD 3,000,000.00 2,909,508 8/1/2027 2.400% San Diego CCD Taxable 2019 590,000.00 554,376 8/1/2027 2.407% San Ramon Valley CUSD 1,435,000.00 1,321,725 8/1/2027 1.440% Santa Monica Comm College Dist 1,000,000.00 985,080 8/1/2027 3.415% Sierra CA CCD 2021A Ref 465,000.00 414,371 8/1/2027 1.129% William Hart USD 2020 Ref 200,000.00 177,904 8/1/2027 1.174% San Jose Ca Taxable Series B 910,000.00 852,242 9/1/2027 2.600% Soquel Creek Wtr Ref 2020 545,000.00 488,864 3/1/2028 1.445% Gardena Calif Pension Obligation 1,000,000.00 902,207 4/1/2028 2.663% Beverly Hills Taxable Ref 2020B 635,000.00 563,569 6/1/2028 1.514% California Health Facs Fing Au 760,000.00 713,788 6/1/2028 3.378% Desert CA Cmnty College 1,000,000.00 907,300 8/1/2028 2.023% Redondo Beach CA Uni Bond 2018 675,000.00 577,213 8/1/2028 1.430% San Ramon Valley CA 1,820,000.00 1,608,124 8/1/2028 1.670% Santa Ana College Impt 1,500,000.00 1,301,286 8/1/2028 1.320% Santa Clarita Calif Cmnty 1,000,000.00 888,500 8/1/2028 1.563% William Hart High 1,000,000.00 880,712 8/1/2028 1.429%
Yosemite Calif Cmnty College 750,000.00 684,019 8/1/2028 2.210% City of Clovis
Municipal Maturities Exceeding One Year
As of January 31, 2024
ATTACHMENT 3
101
AGENDA ITEM NO. 8.

TO: Mayor and City Council
FROM: Fire Department
DATE: May 20, 2024
SUBJECT: Fire – Receive and File – 2023 Fire Department Annual Report.

ATTACHMENTS: 1. 2023 Fire Department Annual Report

CONFLICT OF INTEREST
Councilmembers should consider recusal if a campaign contribution exceeding $250 has been received from the project proponent (developer, applicant, agent, and/or participants) within the preceding 12 months (Government Code 84308).

RECOMMENDATION
For the City Council to receive and file the Fire Department’s Annual Report for 2023.

EXECUTIVE SUMMARY
The Fire Department Annual Report for 2023 is the Department’s way of communicating to elected officials, cooperating fire agencies, and most importantly, our community, the quality and quantity of service provided to our citizens in 2023. The report also serves as a record of our activities and accomplishments for future reference and comparison.

BACKGROUND
2023 was a productive year for the Department. The accomplishments achieved could have only been achieved with the coordination and support of City Council, City staff, and our dedicated Department members.

Notable Accomplishments of 2023:
 Re-accreditation for the fifth time through the Commission on Fire Accreditation International, extending our accreditation status for another five years from 2023-2027.  Purchased six LUCAS automatic chest compression devices to outfit all frontline apparatus through grant funding to improve cardiac arrest survival during cardiac arrest events.
 The reconstruction of Station 2 began in February of 2023.  New Training Center Classroom construction completed, temporarily housing the Station 2 crew until the station is completed.
102
AGENDA ITEM NO. 9.

Over the past twenty years, the Fire Department has accomplished so much with the resources provided, and we will continue to use the resources provided wisely to serve the citizens of the community. During this period, the Fire Department has maintained accreditation, improved their ISO rating, and found other funding sources for improvements.

FISCAL IMPACT
None.

REASON FOR RECOMMENDATION
Annual Report of Clovis Fire Department’s activities and performance for 2023.

ACTIONS FOLLOWING APPROVAL
Staff will file the report.

Prepared by: Katie Krahn, Senior Management Analyst
Reviewed by: City Manager AH
103
AGENDA ITEM NO. 9.

Annual
Report
2023
Service with Pride
Attachment 1
104
AGENDA ITEM NO. 9.
consisting of our firefighters, prevention personnel, and administrative support staff providing service to over 124,000 citizens from our six fire stations.

Message from the
Fire Chief
It is my honor to present my first annual report as fire chief to our community. This document serves as our way to communicate our accomplishments, level of service, and the challenges that we face to our city council members, cooperating agencies, and most importantly our citizens and customers who we serve. Our team is made up of 73 dedicated professionals Chris Ekk
Fire Chief
01 2023 Annual Report

CLOVIS FIRE DEPARETMENT
2023 saw many changes throughout the ranks of our Department. Fire Chief John Binaski and Captain Tim Wilson retired, and 10 personnel were promoted behind these retirements. The strength of our team is due to the work of our members and their dedication to our community.

These are our significant accomplishments for 2023:

Re-accreditation for the fifth time through the Commission on Fire Accreditation International, extending our accreditation status for another five years from 2023-2027.

Purchased six LUCAS automatic chest compression devices to outfit all frontline apparatus through grant funding to improve cardiac arrest survival during cardiac arrest events.

The reconstruction of Station 2 began in February of 2023.

New Training Center Classroom construction completed, temporarily housing the Station 2 crew until the station is completed.

As Clovis continues to grow, our response times have also increased. Since 2008, the population has increased by 39% and our call volume has increased from 9,003 calls per year to 13,242 calls in 2023, a 44% increase. Within the next three years we will see significant turnover in our headquarter staff due to retirements. We are currently implementing a succession plan to ensure a smooth transition in these positions. Recruitment of firefighters has become more difficult in our last three recruitments over the last five years. What was once 400 to 500 applicants 10 years ago, has dwindled to less than 100 applicants in our last recruitment cycle. For the first time, we have created a recruitment committee to begin actively recruiting for future firefighter hiring.

Despite the challenges that lie ahead, I am positive that our Department will continue to provide the highest level of service possible that our citizens deserve. Our members are committed to supporting the mission of the City and our Department, and we will continue to look for the best solutions possible to overcome these challenges. Our members are our best asset, and I am proud to serve with them as their fire chief.

With all of our successes, we are also facing some challenges in the near future that we will have to prepare for.
105
AGENDA ITEM NO. 9.

Response Performance
First Unit Arrival, Total Response Time - EMS
2023 Annual Report

CLOVIS FIRE DEPARETMENT
Response
Goal 1
Goal:

Actual Performance:
06:30, 90% of Responses
07:48
Response First Unit Arrival, Total Response Time - MVA/Rescue Goal 2
Goal:

Actual Performance:
07:00, 90% of Responses
07:57
Response First Unit Arrival, Total Response Time - Fire Goal 3
Goal:

Actual Performance:
07:00, 90% of Responses
08:35
Response Effective Response Force, 18 personnel - Fire
Goal 4
Goal:

Actual Performance:
10:30, 90% of Responses
14:17
Response Total Turnout Time for All Priority Responses
Goal 5
Goal:

Actual Performance:
01:30, 90% of Responses
01:34
Response Fire Contained to Room of Origin
Goal 6
Goal:

Actual Performance:
70% of all fire calls for service
53% of all fire calls for service
The Clovis Fire Department utilizes the annual compiling of the Annual Report as an opportunity to evaluate the Department’s progress in meeting the goals and initiatives set for in the Strategic Plan. The metrics listed below are the high-level indicators that the Department uses to determine effectiveness and efficiency in a number of vital service delivery categories. The 2023 data shows that although we have added a new fire station in 2022, response times have not improved as expected. As the City’s service area expands, meeting our established service goals without a disparate impact to growth areas will become increasingly more challenging. 02 106
AGENDA ITEM NO. 9.

Strategic Initiatives
Goal
1A Cost per Capita $165
2023 Annual Report

CLOVIS FIRE DEPARETMENT
Actual
Performance
Below $170 (the average of cities
comparable to Clovis in California)
1B
1C
1C
Annual Property
Loss
Total Injury Claim
Costs
Firefighter Injury
Rate
1D Accreditation
Status
1E ISO Rating
3C
Citizen
Satisfaction
Survey Score
Below 5-Year average of $2.6M $4,229,272
$235,000 or lower (3% or less of total firesuppression personnel salaries) Less than 14 reportable injuries (20% of all
department personnel)
Maintain Active Accreditation Status through
CFAI
Active
Class 3 or better Class 2
90% or better
$140,652
6 injuries
98%
5A
5A
5A
5A
Processing time
for permits and
inspections
Issue permits within 10 days of submittal and
complete inspections within 24 hours of
request.
90%
Plan Checks Complete plan checks within 10 days, 90% of the time.
90%
Project Approval
Approve 90% of projects within three plan
checks
90%
State-Mandated
Inspections
Complete 90% of inspections annually
(Occupancy types E, R.2, and R2.1)
100%
5C
Fire
Investigations
Investigate 100% of all reported fires 100%
5C
Clearance of Fire
Investigations
Clear 90% of all investigation cases within
one year.
100%
The goals outlined below represent critical goals we have set forth in the 2022- 2027 Strategic Plan. Each goal is evaluated on an annual basis. Major increases were seen in annual property loss this year due to increased response times, increased property values, and an expanding service area. 03 107
AGENDA ITEM NO. 9.

Call Type by Type, 2021 - 2023
Incident Type 2021 2022 2023 3-Year Average
Emergency Medical 7,155 7,844 7,859 7,619
Good Intent/Service Call 2,082 2,487 2,941 2,503
Fire 386 433 863 561
Hazardous Materials/Explosion 178 200 178 185
Rescues & Vehicle Accidents 397 427 553 459
False Alarm & False Calls 799 614 848 754
TOTAL: 10,911 12,244 13,242 12,132
Calls for Service
Calls for service are tracked in nationally established categories, with a majority of annual calls pertaining to emergency medical services. Good Intent/Service calls make up the next largest category of calls received, as indicated in the table below.

These calls represent calls for service from residents who are unsure who to call for minor emergencies such as a burst pipe, a child locked in a vehicle, or smoke mistaken for a structure fire.

The map on the next page illustrates the total response time performance for the Department displayed for the entire service area and broken down by district. The times indicate the period between call pick-up at the dispatch center and the first unit arriving on-scene. Deployment and service areas are evaluated on an annual basis and during the annexation process to ensure optimal service to all citizens. 04 2023 Annual Report

CLOVIS FIRE DEPARETMENT
Total Response Time Performance
Mutual and Auto-Aid Calls by Year, 2019-2023
2019 2020 2021 2022 2023
5-Year
Average
Fresno County - Received 322 234 313 310 455 327
Fresno County - Provided 283 217 280 260 331 274
Fresno City - Received 310 205 208 223 405 270
Fresno City - Provided 707 605 881 862 798 771
OES Provided 34 65 44 52 33 46
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AGENDA ITEM NO. 9.

Total Response Time Performance
05 2023 Annual Report

CLOVIS FIRE DEPARETMENT
First-Arriving Unit, Priority Calls, 90th Percentile
109
AGENDA ITEM NO. 9.

The morning of January 11, crews responded to a reported residential fire. Once on-scene it was discovered that a medical emergency had occurred to a box truck driver who had subsequently driven into a residence. Two dogs were killed in the fire and the residence and box truck were both completely destroyed.

Significant Events
$360,000
Total Loss
06 2023 Annual Report

CLOVIS FIRE DEPARETMENT
January 11
$390,000
Total Loss
March 3
$400,000
Total Loss
May 2
Crews arrived on-scene to a single family residence fully involved with heavy fire and smoke showing. Clovis PD pursued a suspect for this fire suspected of arson. No injuries or deaths were reported and the fire did not extend past the building of origin.

Crews were dispatched to a fire at a 3-story apartment complex under construction. Fire attack was delayed due to a locked gate and a badly damaged fire hydrant. Crews worked quickly on alternative water resources and the fire was contained with minimized damage. No injuries were reported.
110
AGENDA ITEM NO. 9.

The Clovis Fire Department continues to focus on providing high-quality, up-to-date, and essential training to all personnel, including numerous required and recurring firefighterrelated training programs mandated by multiple sources. State and national standards require an annual minimum of 240 training hours per employee. Various regulations, mandates, and consensus standards are utilized to develop training curricula to ensure compliance with the National Fire Protection Association, CAL-OSHA, the Insurance Services Office, and other certifying organizations.

Training Bureau Activities
2023 Annual Report

CLOVIS FIRE DEPARETMENT
In 2024, personnel completed
over 19,000 hours of training,
averaging about 298 hours per
Department member. Training
continued with our community
partners which included
simulated utility fire incident
drills with PG&E. Training drills
were also performed with
Fresno Fire which included
Wildland Refresher training. All
qualified Acting Captains and
Acting Battalion Chiefs
successfully completed their
respective recertification.

The focus for the upcoming year will be to open the new training center building and carry out more specific training that has been requested through survey responses. The Clovis Training Center will welcome back the Fresno Training Symposium in partnership with the California Training Officers Association where training classes will be hosted.

There will also be continued training with our agency partners.

The Training Bureau continues to focus on the goal of superior training capabilities which will allow for all members to train on varied disciplines. The Training Center is a huge part of this effort and its completed and planned improvements ultimately means better trained personnel to respond to calls for service. 111
AGENDA ITEM NO. 9.

Resources
2023 Annual Report

CLOVIS FIRE DEPARETMENT
The Department has placed a major emphasis on improving the fire apparatus resources to decrease repair costs, reduce out-of-service time, and enhance vehicle capabilities to better serve the community. In 2017, an analysis of the Department’s Facilities and Apparatus was conducted and a plan adopted to maximize efficiencies.

The plan outlined that all frontline apparatus should have lifespan of 10 years before placed in the reserve status and all Facilities would be evaluated annually. Based upon these goals, money was set aside in the Fleet Replacement Schedule, apparatus purchases are scheduled and included in the five-year forecast and the annual Facilities Evaluation is used to properly fund the remodeling or building of facilities.

Since 2017, the Department has been able to replace 10 apparatus and the average age of the fleet went from 12.3 years to 9.7 years in 2023. In that same time we have seen the construction of Fire Station 6, a modular training building at the Training Center, and the demolition and rebuild of Fire Station 2 (set to open in August 2024).

As we look to the future, we have the replacement of Engine 42 set for delivery in Fall 2024. The Department has applied for grants through the San Joaquin Air Pollution Control District (SJVAPD) to assist with the replacement of Water Tender 40 (2003) and GEM Car (2002). Development has began in the northwest region of the City and planning for Fire Station 7, including watching response times and established metrics, has begun. Fire Station 3 was constructed 35 years ago and is missing a gym, dining room, and proper storage. A remodel is required and funding avenues are being explored; additional resources may be needed through the CIP process. 08 Fire Station 2
Demolition: Fire Staff assisted the
construction crew to demo the nearly
50 year old station in April 2023.

Reconstruction: The new station
expected to open in August 2024 will
be the crowning jewel of Helm Ranch.
112
AGENDA ITEM NO. 9.

Annual Inspections - State
Mandated
The Prevention Bureau is part of the Community Risk Reduction Division which focuses on fire reduction and ensuring occupancies safety. Working closely with businesses, public agencies, schools, and community organizations, the Prevention Bureau conducts inspections, trainings, code enforcement, and other activities to reduce life-safety hazards. Plan Checks and inspections are completed at various stages of the construction process to ensure compliance. Compliance for all inspections, regular and State Mandated, are tracked annually.

Prevention Activities
2023 Inspection
Statistics
Total Number of
Occupancies
Completed
Inspections
Inspection Type
Biennial Inspections - Crews 775 775 100%
Biennial Inspections - Prevention 494 479 97%
350 350 100%
Total Inspections 1,619 1,604 99%
2023 Annual Report

CLOVIS FIRE DEPARETMENT
Percentage
Completed
The Department’s public education efforts are the behavioral change component of the Community Risk Reduction Division. In addition to attending community events throughout the year, including Clovis Night Out, Hmong New Year, school carnivals, and, Sierra Vista Boo Fest, we also provide a comprehensive fire safety program to all Clovis Unified schools within Clovis. In 2023, the FISE program presented to more than 6,500 students.

Public Education
Clovis Emergency Response Team (CERT)
CERT is the Department’s amazing team of volunteers that work to further the mission of serving the citizens of Clovis. This year, the volunteers assisted with the CA Training Symposium, taught citizens at the Old Town Farmers’ Market, and ran the First Booth at the Clovis Rodeo. Their work is invaluable. 113
AGENDA ITEM NO. 9.

Appendix I
Appendix
114
AGENDA ITEM NO. 9.

Appendix II
Appendix
City Population and CFD Sworn Staff Comparison
City of Clovis General Fund and Fire Budget Comparison
115
AGENDA ITEM NO. 9.

Appendix III
Appendix
5-Year Workload by First-Due Unit
3-Year Workload by First-Due Area
116
AGENDA ITEM NO. 9.

For more
information,
visit our website
117
AGENDA ITEM NO. 9.

TO: Mayor and City Council
FROM: Planning and Development Services
DATE: May 20, 2024
SUBJECT: Planning and Development Services – Approval – Res.24-___, Adopt a list of projects funded by SB1: The Road Repair and Accountability Act.

ATTACHMENTS: 1. Resolution 24-____

2. Vicinity Map

CONFLICT OF INTEREST
Councilmembers should consider recusal if a campaign contribution exceeding $250 has been received from the project proponent (developer, applicant, agent, and/or participants) within the preceding 12 months (Government Code 84308).

RECOMMENDATION
For the City Council to approve a resolution to adopt a list of projects funded by Senate Bill (SB) 1: The Road Repair and Accountability Act.

EXECUTIVE SUMMARY
Prior to receiving an apportionment of Road Maintenance and Rehabilitation Account (RMRA) funds from the Controller in a fiscal year, a city or county must submit to the California Transportation Commission a list of projects proposed to be funded with these funds. All projects proposed to receive funding must be adopted by resolution by the applicable city council or county board of supervisors at a regular public meeting [SHC 2034(a)(1)].

Pursuant to SHC Section 2034(a)(1) a resolution of the list for SB1 funding is submitted for adoption. The project list submitted is for two street sections that have been called out in the 2024-2025 Five-year Community Investment Program (CIP), specifically the 2024-2025 fiscal year. The two Projects are:
1) Teague Avenue Improvements from Willow Avenue to Peach Avenue 2) Peach Avenue Improvements from Gettysburg Avenue to Ashlan Avenue 118
AGENDA ITEM NO. 10.

BACKGROUND
On April 28, 2017, the Governor signed Senate Bill (SB) 1 (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017. To address basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets and road system, SB 1: increases per gallon fuel excise taxes; increases diesel fuel sales taxes and vehicle registration fees; and provides for inflationary adjustments to tax rates in future years.

Beginning November 1, 2017, the State Controller (Controller) started to deposit various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.

SB 1 emphasizes the importance of accountability and transparency in the delivery of California’s transportation programs. Therefore, in order to be eligible for RMRA funding, statute requires cities and counties to provide basic annual RMRA project reporting to the California Transportation Commission (Commission).

Prior to receiving an apportionment of RMRA funds from the Controller in a fiscal year, a city or county must submit to the Commission a list of projects proposed to be funded with these funds pursuant to an adopted resolution by the city council at a regular public meeting [SHC 2034(a)(1)].

Pursuant to SHC Section 2034(a)(1) a resolution of the list for SB1 funding is submitted for adoption. The project list submitted is for two street sections that have been called out in the 2024-2025 Five-year Community Investment Program (CIP), specifically the 2024-2025 fiscal year. The two Projects are:
1) Teague Avenue Improvements from Willow Avenue to Peach Avenue 2) Peach Avenue Improvements from Gettysburg Avenue to Ashlan Avenue The projects on the list have been chosen by using the City of Clovis Pavement Management System and are programed in the CIP five-year budget.

FISCAL IMPACT
The estimated cost for the two projects submitted for the SB1 list is $2.2 million. The projects will be included in the 2024-2025 CIP budget. The City of Clovis will receive an estimated $3,186,837 in RMRA funding in Fiscal Year 2024-25 from SB 1. The SB1 funding the city will receive in fiscal year 2024-2025 is enough funding to cover the expected cost of the two projects.

The projected funding received in subsequent years is expected to increase by a small percentage each year.

REASON FOR RECOMMENDATION
To be eligible to receive the City of Clovis’ apportionment of RMRA funding from the State Controller this fiscal year.
119
AGENDA ITEM NO. 10.

ACTIONS FOLLOWING APPROVAL
Staff will submit the SB1 project list and resolution to the California Transportation Commission pursuant to SHC Section 2034(a)(1).

Prepared by: Tatiana Partain, Management Analyst
Reviewed by: City Manager AH
120
AGENDA ITEM NO. 10.

Attachment 1
RESOLUTION 24-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS TO ADOPT A LIST OF PROJECTS FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Clovis are aware of the projects proposed for funding and which projects have been completed each fiscal year; and
WHEREAS, the City of Clovis must include a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the City of Clovis budget, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Clovis, will receive an estimated $3,186,837 in RMRA funding in Fiscal Year 2024-25 from SB 1; and
WHEREAS, the funding from SB 1 will help the City of Clovis maintain and rehabilitate 217 streets, 18 bridges, add active transportation infrastructure throughout the City of Clovis this year and hundreds of similar projects into the future; and WHEREAS, the 2016 California Statewide Local Streets and Roads Needs Assessment found that the City of Clovis’ streets and roads are in an “good” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “excellent” condition; and
WHEREAS, without revenue from SB 1, the City of Clovis, would have otherwise been postponing projects throughout the community; and
WHEREAS, modernizing the local street and road system provides well-paying construction jobs and boosts local economies; and
WHEREAS, police, fire, and emergency medical services all need safe reliable roads to react quickly to emergency calls and a few minutes of delay can be a matter of life and death; and
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AGENDA ITEM NO. 10.

WHEREAS, maintaining and preserving the local street and road system in good condition will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduce vehicle emissions helping the State achieve its air quality and greenhouse gas emissions reductions goals; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive benefit statewide.

NOW, THEREFORE, BE IT RESOLVED, by the City of Clovis as follows:

1. The foregoing recitals are true and correct.

2. The City of Clovis is adopting the following list of projects planned to be funded in fiscal year 2024-2025 with Road Maintenance and Rehabilitation Account revenues:
a. Teague Avenue Improvements from Willow Avenue to Peach Avenue. The project will include resurfacing the street and will increase the useful life of the street by 20 years. It is budgeted in the 2024-2025 & 2025-2026 fiscal years with anticipated construction in 2026.
b. Peach Avenue Improvements from Gettysburg Avenue to Ashlan Avenue. The project will include resurfacing the street and will increase the useful life of the street by 20 years. It is budgeted in the 2024-2025 & 2025-2026 fiscal years with anticipated construction in 2026.
* * * * *
The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on May 20, 2024, by the following vote, to wit.

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: May 20, 2024
______________________________ ______________________________ Mayor City Clerk
122
AGENDA ITEM NO. 10.

Attachment 2
123
AGENDA ITEM NO. 10.

TO: Mayor and City Council
FROM: Public Utilities Department
DATE: May 20, 2024
SUBJECT: Public Utilities – Approval – Waive Formal Bidding Requirements and Authorize the Purchase of a 2024 Avant M755 Tractor from California Turf Equipment & Supply Company in the Amount of $83,493.37.

ATTACHMENTS: None

CONFLICT OF INTEREST
Councilmembers should consider recusal if a campaign contribution exceeding $250 has been received from the project proponent (developer, applicant, agent, and/or participants) within the preceding 12 months (Government Code 84308).

RECOMMENDATION
For the City Council to approve waiving the City’s formal bidding requirements and authorize purchasing a 2024 Avant M755 tractor from California Turf Equipment & Supply Company in the amount of $83,493.37, including fees and taxes.

EXECUTIVE SUMMARY
There are funds in this fiscal year’s Fleet Renewal budget to purchase a 2024 Avant M755 tractor for the Public Utilities Department Parks Division. The existing equipment is scheduled to be replaced due to its age. The competitively bid price of $83,493.37 is from California Turf and Equipment Supply Company using the Sourcewell Purchasing Contract. The new tractor meets current offroad emissions requirements.

The Sourcewell Purchasing contract, formerly the National Joint Powers Alliance (NJPA) contract, is a nationwide public procurement service that makes the governmental procurement process more efficient. All contracts available to participating members have been awarded by virtue of a public competitive procurement process compliant with state statutes.

BACKGROUND
The recommended tractor is available from California Turf Equipment & Supply Company and meets the department’s needs. The tractor is available to be ordered and will be built according to Public Utilities Department Parks Division needs.
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AGENDA ITEM NO. 11.

The Fleet Fund includes a vehicle and equipment replacement program where the different City departments budget for and contribute a set amount of money annually for the future scheduled replacement of a vehicle or piece of equipment. This allows each department, and the divisions within the departments, to financially plan for the large capital expense of purchasing new vehicles and equipment that need to be replaced due to age, wear and tear, or to meet regulatory requirements. Depending on the condition and need of the vehicle or equipment being replaced, it will be moved from front-line operation and may be kept as a back-up, or it will be auctioned off in the City’s vehicle and equipment surplus program.

FISCAL IMPACT
Funds were included in the 2023-2024 Fleet Capital Acquisition budget, often referred to as the Fleet Renewal or Fleet Replacement budget. The Parks Division in the Public Utilities Department has accumulated the necessary funds for replacement of the equipment.

REASON FOR RECOMMENDATION
Sufficient replacement funds have been collected for the purchase of the replacement equipment. The existing equipment has been in service for almost 12 years and is scheduled for replacement. Staff has evaluated the available equipment and it meets the needs of the Public Utilities Department Parks Division. The proposed method of purchasing the equipment is costeffective and sufficient funds are available.

ACTIONS FOLLOWING APPROVAL
Purchase orders will be prepared for the City Manager’s approval and sent to the vendor.

Prepared by: Jim Stringfield, Fleet Manager
Reviewed by: City Manager AH
125
AGENDA ITEM NO. 11.

TO: Mayor and City Council
FROM: Administration
DATE: May 20, 2024
SUBJECT: Consider Review and Introduction – Res. 24-___, 2024-25 City of Clovis Annual Budget, Five Year Capital Improvement Program, and information regarding the Clovis Successor Agency. (Continued from the May 13, 2024, council meeting)
a. Finance Department (Jay Schengel)
b. City Council / City Attorney / City Manager / City Clerk (Andy Haussler / Jesse Velez)
c. Public Utilities Department (Scott Redelfs)
d. Planning and Development Services/Community Investment Program (Renee Mathis)
e. Economic Development, Housing, and Communications (Chad McCollum)
f. General Services (Shonna Halterman)
g. Fire Department (Chris Ekk) – Continued from the May 13, 2024, council meeting
h. Police Department (Curt Fleming) – Continued from the May 13, 2024, council meeting
Staff: Jay Schengel, Finance Director/John Holt, City Manager Recommendation: Receive Introduction and continue the public hearing to June 10, 2024
ATTACHMENTS: 1. Resolution

2. 2024-25 City of Clovis Annual Budget

CONFLICT OF INTEREST
Councilmembers should consider recusal if a campaign contribution exceeding $250 has been received from the project proponent (developer, applicant, agent, and/or participants) within the preceding 12 months (Government Code 84308).
126
AGENDA ITEM NO. 12.

RECOMMENDATION
Receive the 2024-25 City of Clovis Annual Budget and open the public hearing for departmental review and comment, continue the public hearing to June 10, 2024 for consideration of adoption of the budget which must be adopted no later than June 30, 2024.

EXECUTIVE SUMMARY
According to the Municipal Code, the City Manager is responsible for providing the City Council with a recommended annual budget prior to commencement of the succeeding fiscal year and by no later than the third regular Council meeting in May. The Annual Budget is a plan for the financial operations of the City and includes a spending plan for all City operations, a five-year community investment program, and estimated revenues for the upcoming fiscal year.

The purpose of the budget is to enable the City Council to make financial plans for current and long-term expenditure needs, to ensure that executive management is administering the plans as set forth, and to allow citizens and investors with an opportunity to form opinions about the financial policies and administration of the City.

BACKGROUND
The 2024-25 Annual Budget is the spending plan for community investment in local services such as public safety, parks and recreation, transit, streets, water and sewer, and repairs/maintenance of public facilities. The Annual Budget is also the spending plan for investment in infrastructure for the community. The Annual Budget provides for a range of public services and focuses on those services that are essential to our citizens. Continuing prudent fiscal decisions and ongoing economic development initiatives enable the City to grow service levels and remain fiscally sustainable.

The General Fund Emergency Reserve is being maintained at $22.6 million or 20.3% of expenditures set aside for unforeseen emergencies. The budget also includes $53.5 million in City capital improvement projects.

The 2024-25 annual Budget highlights include:
 Provide Targeted Neighborhood Revitalization Investments. This is a long-term effort to improve community appearance, neighborhood stabilization, amenities in older neighborhoods, and economic opportunities. These investments total $9.97 million in the proposed 2024-2025 budget building on investments in 2022- 2023 and 2023-2024 of over $40 million including the following for the 2024- 2025 fiscal year:
o Affordable Housing Programs Continue Unprecedented Level of Investment of nearly $4.56 million in Grant and City Funding.  $2.6 million for Housing Rehabilitation Loans
 $0.7 million for Down-Payment Housing Assistance
 $1.0 million to support the creation of new affordable housing.  Continuing the Emergency Housing Repairs Program at $0.26 million o Active code enforcement will continue with a cross-department effort. 127
AGENDA ITEM NO. 12.
o Public street improvements. Reconstruct or Design:
 Reconstruct Sunnyside Avenue – Barstow to Shaw Avenues.  Reconstruct Ashlan Avenue – Winery to Peach Avenues.
 Reconstruct Barstow Avenue – Sunnyside to Fowler & Villa to Minnewawa Avenues.
 Reconstruct Peach Avenue – Gettysburg to Ashlan Avenues.  Willow Avenue – Shaw to Barstow.
 Construct ADA Improvements as part of various street improvement projects. o Sidewalk Improvements. Construction of sidewalks near Sierra Vista Elementary School and on Villa Avenue from Gettysburg to Santa Ana. o Alley Improvements. Reconstruct various alleys in eligible lower-income neighborhoods.
o Economic Development Investments.
 Revitalization planning for underutilized Shaw Avenue commercial properties.
 Offer small and micro business incubation services in Southwest Clovis in partnership with the Clovis Culinary Center and regional partners.  Continue marketing the area for retail and job generating uses to serve adjacent to the neighborhoods and the City as a whole.
 Enhance Public Safety. Public safety is a core service to the City. o Increase of 3 sworn Police personnel bringing the total authorized to 125 officers. o The budget provides for the replacement of 9 additional vehicles in the Police Department and a new bomb squad vehicle.
 Provide Fiscal Security. The Emergency Reserve is proposed to be 20.3% (of General Fund Expenditures), or $22.6 million, set aside this year for unforeseen emergencies. This is a slight drop from the previous on a percentage basis. The City’s auditors recommended a target amount of 20%-25% as a prudent reserve for a city operation the size of Clovis. This fund protects service levels from catastrophic and unexpected losses. Utilization of these funds requires a 4/5ths vote of the City Council.
 Further Secure Water Supplies and Systems.
o Continue investments with the Fresno Irrigation District for the firm surface water supply.
o Improve treatment at the Surface Water Treatment Plant and City water wells to improve the quality of the water and add additional groundwater recharge facilities.
o Design of Wastewater diversion improvements to increase capacity of the Sewer System.
o Update Sewer and Recycled Water Master Plans.
 Invest in Employees. The budget includes a budgeted cost of living increase and funds for employee benefits. Funds for training and educational opportunities have been included and encouraged to be used to allow employees to reach their full potential at the City.
 Invest in Planning our Future. The budget includes funding for the update to the General Plan.
128
AGENDA ITEM NO. 12.
 Invest in the City’s Economic Future. Staff will be actively working on attracting commercial and industrial businesses to Clovis to add jobs and revenues to the City.

Staff will continue to make strategic marketing efforts aimed at top revenue producing businesses to support the financial needs of the City. Relationships are being developed with critical development partners in the community and assisting projects through the development process. Staff will also be working with regional partners to develop entrepreneurial and small business growth resources. Staff will continue a focused marketing effort on reinforcing Clovis as a medical hub for services, education, and research leverage with the expansion of Clovis Regional Medical Center and the expansion of California Health Sciences University.  Expand the Trail System and Parks. City funds are budgeted to design and construct the Dry Creek/Enterprise Trail Connection and a new park in the Loma Vista area that will also allow for groundwater recharge.

The 2024-25 Annual Budget for all funds, which totals $358.5 million, is balanced using some past year revenues. This budget represents an 8% increase compared to the approved budget for 2023-24 due to increases in salaries and benefits, operational costs, and inflationary increases in services, materials, and supplies.

A summary of expenditures by function is provided below:

The General Fund, which is the only source of discretionary funding used for basic government services such as public safety, streets, parks, recreation, and senior services, is budgeted to increase 5% above estimated expenditures for 2023-24. Department budgets are proposed to increase due to budget increases for core services as well as additional salary and benefit costs.

Total current revenue in the General Fund is estimated at $110.4 million and expenditures of $111.3 million are being proposed.

The Executive Summary and Introduction Sections of the Annual Budget provides an overview of the important goals, target actions, resulting projects, and fiscal overview addressed within the budget. The Annual Budget presented to the City Council addresses the goals by which the community will measure its success, meets the most essential service needs for the community, provides substantial investment in planned maintenance of sewer, water, and street facilities, directs resources to economic development and support for job creation, continues the effort to plan for the community, and is balanced, with prudent emergency reserve funding set aside, as General Government $ 9,977,500
Public Safety 82,932,700
Planning & Development Services 15,047,200
Community Investment Program 53,454,600
Public Utilities 90,427,600
Culture & Rec. 25,174,000
Internal Services 81,517,100
TOTAL $ 358,530,700
General
Government
3%
Public Safety
23%
Planning &
Development
Services
4%
Community
Investment
Program
15%
Public Utilities
25%
Culture & Rec
7%
Internal
Services
23%
129
AGENDA ITEM NO. 12.
requested by the Council. For these reasons, the budget is recommended for consideration and adoption by the City Council.

Attached is the Budget Document containing additional summary narratives, details of revenues, expenditures, personnel, and debt and capital projects.

FISCAL IMPACT
In accordance with the Municipal Code, and in compliance with State law, the City Council is required to adopt a balanced, annual budget for each fiscal year by June 30. The Annual Budget provides a spending plan for the upcoming year that is balanced with expenditures kept in line with revenues, includes a five-year community investment program, includes a prudent reserve of funds for emergencies and unforeseen events, and authorizes position allocations, all as approved by the Council.

REASON FOR RECOMMENDATION
The City Council must conduct a public hearing to provide an opportunity for the public to comment on the proposed Annual Budget; must review the proposal to determine that the financial plan fairly represents the fiscal policies and priorities of the City Council; and is required by local ordinance, in compliance with State law, to adopt a balanced budget by no later than June 30, 2024. If the Council fails to adopt a budget by that date, then the City Manager’s proposed budget will automatically become effective to avoid any interruption in City operations, but no capital projects or capital purchases would be allowed until final action by the City Council.

ACTIONS FOLLOWING APPROVAL
On May 13, 2024, the 2024-25 City of Clovis Annual Budget will be presented with a recommendation to open the public hearing for departmental review and comment, continue the public hearings to May 20, 2024, for further Council input and adopt the budget resolution no later than June 30, 2024. Copies of the recommended Annual Budget will be available for review by the public by May 13, 2024, and prior to the budget hearings at the Clovis Branch of the Fresno County Library, at City Hall, and on the City’s website found at www.cityofclovis.com.

Prepared by: Gina Daniels, Assistant Finance Director
Reviewed by: City Manager JH
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AGENDA ITEM NO. 12.

RESOLUTION 24-__

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS APPROVING THE ANNUAL BUDGET FOR FISCAL YEAR 2024-2025, ORDERING TRANSFERS, AND

ADOPTING THE SUMMARY OF APPROPRIATIONS BY FUND AND DEPARTMENT AND OTHER NECESSARY ACTIONS RELATED TO APPROVING THE 2024-2025 BUDGET WHEREAS, the City Council is required to adopt the Budget by June 30 of each year; and WHEREAS, the Council has conducted a public hearing on the recommended 2024-2025 Budget; and
WHEREAS, the adoption of Proposition 111 on June 5, 1990, requires the Council adopt an Appropriation Limit; and
WHEREAS, the Council intends to establish the City's Appropriation Limit in conformance with the provisions of Proposition 111; and
WHEREAS, the City Council finds it necessary to adopt the 2024-2025 Budget.

NOW, THEREFORE BE IT RESOLVED, by the City of Clovis as follows:
*Note: Exhibits A – E will be available at the June 10, 2024 meeting

1. The 2024-2025 Annual Budget and corresponding Personnel Allocation is approved.

2. The City Council approves and orders the transfer of monies in and out of various funds as set forth in the "Notes to Resources and Appropriations Summary" of said 2024-2025 Budget Book.

3. The “Summary of Expenditures/Expenses 2024-2025 by Department within FundLegal Level of Budgetary Control" attached as Exhibit A is approved.

4. The Appropriation Limit as calculated and shown on Page 9 of the 2024-2025 Budget book is approved for $425,335,156.

5. The Council orders that any budget savings or unanticipated revenue be transferred to reserves in accordance with the Appropriation Limit.

6. Any amendments to the appropriations as may be subsequently approved by the Council shall be in conformance with Section 2-8.11, Section 2-8.13 and Section 2-

8.17 of the Clovis Municipal Code.

Attachment 1 131
AGENDA ITEM NO. 12.

7. The City Council orders that $22,600,000 of the Fund Balance from the City's General Fund be designated as Emergency Reserve.

8. The City Council approves the Five-Year Capital Improvement Program that is included within the Annual Budget.

9. The Clovis Redevelopment Successor Agency’s information is included in the City budget and accounting systems for administrative purposes and is shown on Exhibit A.

10. The updated Monthly Salary Schedules by bargaining group are attached as Exhibit B.

11. The City Council will implement the approved 3% annual increase in sewer user rates and will refund in full the $7.30 per month sewer bond surcharge thereby adopting the fees itemized in Exhibit C.

12. The City Council will implement the approved annual 4% increase in rates for refuse, residential recycling and greenwaste and street sweeping as shown in Exhibit D.

13. The City Council will implement the approved 3% annual increase in water user rates thereby adopting the fees itemized in Exhibit E. The non-drought rates on Exhibit E will be in effect for 2024-2025.
* * * * *
The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on June 10, 2024, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:
______________________________ ______________________________ Mayor City Clerk
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AGENDA ITEM NO. 12.

RECOMMENDED
2024-2025
Annual Budget
Including Five-Year Community Investment Program
Attachment 2 133
AGENDA ITEM NO. 12.

Executive Director

G OVER N M EN T FIN AN C E OFFIC ER S ASSOC IATION
D istinguished
Budget Presentation
A w ard

PRESENTED TO
City of Clovis
California
For the Fiscal Year Beginning
July 1, 2023

GFOA DISTINGUISHED BUDGET AWARD PRESENTATION
The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Clovis, California for its annual budget for the fiscal year beginning July 1, 2023.

In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device.

The award is valid for a period of one year only. We believe that our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 134 AGENDA ITEM NO. 12.

CITY OF CLOVIS
2024 - 2025
BUDGET
Submitted to City Council
May 13, 2024
___________________________________
Lynne Ashbeck
Mayor
Vong Mouanoutoua
Mayor Pro-Tem
Drew Bessinger
Council Member
Matt Basgall
Council Member
Diane Pearce
Council Member
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AGENDA ITEM NO. 12.

HOW TO USE THIS BUDGET
This Budget document has been designed to
provide the public concise and readable information
about the City of Clovis. The Budget explains the
services and objectives, annual spending plan for
2024-2025, debt obligations, and other vital
information about the operations of the City.

This Budget document is separated into ten
sections, designated by tabbed pages that provide
quick identification of its contents. The Table of
Contents lists every subject covered in this
document and the associated page number.

The tabbed pages include brief descriptions of the
data within each secion. The following are the ten
major sections and a brief explanation of each:

Table of Contents
A listing of all major sections, subsections, and the
associated page numbers.

Executive Summary
The Executive Summary Section includes the City
Manager's letter to the Mayor, City Council, and
residents of the City of Clovis which provides an
overview of the recommended Budget and its
objectives, policies and goals, a discussion of
funding for City services, a discussion of major
capital projects, and a general economic outlook for
the City.

Introduction
The Introduction Section provides general
information about the City, long-range goals, major
policies, financial policies, discretionary revenues,
economic outlook, basis of budgeting, budget
process and calendar, budgetary controls,
appropriation limitation, fund descriptions, and
organizational charts.

Summary of Revenues and Expenditures
The Summary of Revenues and Expenditures
Section provides several summary presentations of
financial transactions contained in the
recommended Budget and a listing of primary
revenue sources for the General Fund.

Debt Obligations
The Debt Obligation Section provides information
about the City's policies on long-term debt, current
long-term debt obligations, and the legal debt limit.

Personnel
The Personnel Section provides a summary and a
detailed list of all the employee positions and the
proposed changes in the recommended Budget.

Operations
The Operations Section provides detailed
information about the programs and proposed
expenditures for each department. Each
department begins with a summary identifying all
activities for the department. The summary is
followed by department performance measures,
which includes detail for each activity. Activity
narratives include a brief "Five-Year Outlook" that
addresses future budget considerations. Following
the activity narratives is the activity budget detail
including position allocations.

Community Investment Program
The Community Investment Program Section
provides a general explanation of all capital projects
planned for 2024-2025 and is organized by activity.

Projects are identified on the basis of priority need
and availability of funding.

Five-Year Community Investment Program
The Five-Year Community Investment Program
Section provides a general explanation of all capital
projects planned for 2024-2025 through 2028-2029
and beyond and is also organized by activity.

Projects are identified on the basis of priority need
and availability of funding.

Appendix
The Appendix Section provides demographic
information, phone numbers of City offices, elected
officials,miscellaneous statistics, and a glossary of
terms used in this document.

Every attempt has been made to make this Budget
document as easy to understand as possible. We
apologize for the use of "technical terms"; but due
to the nature of accounting, their use is sometimes
unavoidable. We hope that including a Glossary of
terms in the Appendix Section will help the reader
through these technical areas. If you have any
questions or need clarification of items in this
Budget, contact the Finance Department by calling
(559) 324-2130.

The Budget document is available for public
inspection at City Hall, Clovis Civic Center,
1033 Fifth Street, and the Clovis Branch Library,
1155 Fifth Street, during regular business hours, as
well as the City’s website at www.cityofclovis.com.

Individual copies may also be purchased from the
Finance Department.
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TABLE OF CONTENTS
I. Executive Summary ........................................................................................................................ i-vi II. Introduction .................................................................................................................................. 1-22 Summary of Discretionary and Non-Discretionary
Revenues Chart .................................................................................................................... 4 Use of Discretionary Revenues Chart ......................................................................................... 5 Description and Purpose of Accounting Funds .................................................................... 10-11 Organizational Charts ........................................................................................................... 12-21 Management Staff & Budget Task Force .................................................................................. 22 III. Summary of Revenues and Expenditures .................................................................................. 23-46 Fund Balance Summary ............................................................................................................ 23 Fund Highlights .......................................................................................................................... 24 Summary of Resources and Appropriations ............................................................................. 25 Notes to Resources and Appropriations ................................................................................... 26 Summary of Revenues and Expenditures ................................................................................. 27 Budget Summary - All Funds ............................................................................................... 28-29 Budget Summary by Fund .................................................................................................... 30-33 Summary of Revenues by Fund ........................................................................................... 34-35 Revenue by Source .............................................................................................................. 36-43 Summary of Expenditures by Fund ...................................................................................... 44-46 IV. Debt Obligations ......................................................................................................................... 47-54 Debt Summary ........................................................................................................................... 48 Description of Long-Term Debt ............................................................................................ 49-54 V. Personnel………………………………………………………………………………………………...55-62 Personnel Overview .................................................................................................................. 55 Summary of Positions by Department ....................................................................................... 57 Detail of Positions by Department ........................................................................................ 58-62 VI. Operations……………………………………………………………………………………………...63-192 Table of Contents ...................................................................................................................... 63 Summary of Expenditures by Department/Function ............................................................ 64-65 City Council .......................................................................................................................... 66-69 City Attorney ......................................................................................................................... 70-71 City Manager Department .................................................................................................... 72-91 General Services Department ............................................................................................ 92-113 Finance Department ......................................................................................................... 114-119 Planning and Development Services Department ........................................................... 120-130 Police Department ............................................................................................................ 131-149 Fire Department ................................................................................................................ 150-161 Public Utilities Department ............................................................................................... 162-189 Clovis Successor Agencies .............................................................................................. 190-192 VII. Community Investment Program Summary ............................................................................. C1-C16 VIII. Five-Year Community Investment Program ........................................................................... C17-C60 IX. Appendix .................................................................................................................................... A1-A7 Glossary ............................................................................................................................ A8-A14 139
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The Executive Summary provides an
overview of key programs and projects to
be undertaken by the Annual Budget and
provides a summary of current financial
conditions that will offset operating revenues.
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AGENDA ITEM NO. 12.

May 13, 2024
To: Mayor Ashbeck, Members of the City Council, and Citizens of Clovis

EXECUTIVE SUMMARY
The 2024-2025 Annual Budget for general operations and capital improvement programs for the City of Clovis in the amount of $358.5 million is hereby submitted, in accordance with the Clovis Municipal Code.

The 2024-2025 Annual Budget was developed as the revenues to grow the City’s operations to match growth and keep up with rising inflationary pressure is becoming a challenge. Staff sought significant community input on budget priorities through surveys and community outreach events. The 2024-2025 Annual Budget focuses on the number one priority residents provided, maintain Clovis as a safe community. This is the only area the General Fund is proposing to increase staffing with 3 sworn Police Officer positions. Other revenue sources are allowing the City to make targeted investments in the City to improve the quality of life for its residents. Economic uncertainty, inflationary pressure, and increased demand for services are pushing the General Fund to the edge of sustainability.

Without changes in revenue streams and/or expenditures in future years the City will not be able to maintain the current solid fiscal position and the level of service our residents expect. Despite the headwinds the proposed budget solidifies the City’s financial position by maintaining reserves but makes little investment in deferred maintenance and fleet replacement and does not anticipate additional funds being available to add to the emergency reserve.

Highlights. The 2024-2025 Annual Budget is the spending plan for local services and investment in infrastructure of the community. The Annual Budget provides for a range of public services and focuses on those services that are essential to our citizens. Despite anticipated challenges with revenues the City is still pushing forward initiatives and improvements to maintain a high quality of life for its residents. The 2024-2025 Annual Budget highlights include:
 Provide Targeted Neighborhood Revitalization Investments. This is a long-term effort to improve community appearance, neighborhood stabilization, amenities in older neighborhoods, and economic opportunities. These investments total $9.97 million in the proposed 2024-2025 budget building on investments in 2022-2023 and 2023-2024 of over $40 million, including the following for the 2024-2025 fiscal year:
o Affordable Housing Programs Continue Unprecedented Level of Investment of nearly $4.56 million in Grant and City Funding.
 $2.6 million for Housing Rehabilitation Loans
 $0.7 million for Down-Payment Housing Assistance
 $1.0 million to support the creation of new affordable housing.  Continuing the Emergency Housing Repairs Program at $0.26 million o Active code enforcement will continue with a cross-department effort. o Public street improvements. Reconstruct or Design:
 Adaptive Signalization on Shaw Avenue
 Reconstruct Ashlan Avenue – Winery to Peach Avenues.
 Reconstruct Barstow Avenue – Sunnyside to Fowler & Villa to Minnewawa Avenues  Reconstruct Peach Avenue – Gettysburg to Ashlan Avenues  Reconstruct Sunnyside Avenue – Barstow to Shaw Avenues  Construct ADA Improvements as part of various street improvement projects. 143
AGENDA ITEM NO. 12.
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o Sidewalk Improvements. Construction of sidewalks near Sierra Vista Elementary School and on Villa Avenue from Gettysburg to Santa Ana.
o Alley Improvements. Reconstruct various alleys in eligible lower-income neighborhoods. o Economic Development Investments.
 Revitalization planning for underutilized Shaw Avenue commercial properties.  Offer small and micro business incubation services in Southwest Clovis in partnership with the Clovis Culinary Center and regional partners.
 Continue marketing the area for retail and job generating uses to serve adjacent the neighborhoods and the City as a whole.
 Enhance Public Safety. Public safety is a core service to the City. o Increase of 3 sworn Police personnel bringing the total authorized to 125 officers. o The budget provides for the replacement of 9 additional vehicles in the Police Department and a new bomb squad vehicle.
 Provide Fiscal Security. The Emergency Reserve is proposed to be 20.3% (of General Fund Expenditures), or $22.6 million, set aside this year for unforeseen emergencies. This is a slight drop from the previous on a percentage basis. The City’s auditors recommended a target amount of 20%- 25% as a prudent reserve for a city operation the size of Clovis. This fund protects services levels from catastrophic and unexpected losses. Utilization of these funds requires a 4/5th‘s vote of the City Council.
 Further Secure Water Supplies and Systems.
o Continue investments with the Fresno Irrigation District for the firm surface water supply. o Improve treatment at the Surface Water Treatment Plan and City water wells to improve the quality of the water and add additional groundwater recharge facilities. o Design of Wastewater diversion improvements to increase capacity of the Sewer System. o Update Sewer and Recycled Water Master Plans.
 Invest in Employees. The budget includes a budgeted cost of living increase and funds for employee benefits. Funds for training and educational opportunities have been included and encouraged to be used to allow employees to reach their full potential at the City.  Invest in Planning our Future. The budget includes funding for the update to the General Plan.  Invest in the City’s Economic Future. Staff will be actively working on attracting commercial and industrial businesses to Clovis to add jobs and revenues to the City. Staff will continue to make strategic marketing efforts aimed at top revenue producing businesses to support the financial needs of the City. Relationships are being developed with critical development partners in the community and assisting projects through the development process. Staff will also be working with regional partners to develop entrepreneurial and small business growth resources. Staff will continue a focused marketing effort on reinforcing Clovis as a medical hub for services, education, and research leverage with the expansion of Clovis Regional Medical Center and the expansion of California Health Sciences University.
 Expand the Trail System and Parks. City funds are budgeted to design and construct the Dry Creek/Enterprise Trail Connection and a new park in the Loma Vista area that will also allow for groundwater recharge.

The 2024-2025 Annual Budget will be available for review at the City Clerk’s Office - 1033 Fifth Street, at the Clovis Branch Library - 1155 Fifth Street, and at the City’s website at www.cityofclovis.com as of May 13, 2024. Individual copies are available for purchase from the Finance Department. The public hearing to consider the Annual Budget will be at the regular City Council meeting of June 17, 2024, with adoption scheduled at the conclusion of the hearing.

Our Vision Mission, and Community Values
Vision
Home.

Clovis is more than a city. It is a place to call home – where shared values, diverse perspectives, and a commitment to one another come together to create a thriving and cherished community. We aspire to be a beacon of unity, safety, civility, prosperity, innovation, and sustainable living, ensuring that Clovis is always more than just a place to live, but rather, a place to belong. 144
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Mission
To set the standard for excellence in defining, delivering, and protecting local governance.

Community Values
 “Do the right thing:” We make decisions that are in the best interests of our community. We are honest, ethical, and transparent in our dealings with others.
 Heritage, history, and traditions: We are committed to preserving, educating, and passing on our heritage, history, and traditions while welcoming new traditions along the way.  Safest city in the Valley: We prioritize the safety and well-being of our residents by providing effective public safety services, maintaining our infrastructure, and promoting community preparedness to create a secure and resilient environment.
 Strong neighborhoods, engaged residents, and planned growth: We plan and implement orderly community growth consistent with the City’s Vision. We actively engage the community in determining how our community grows, from our earliest neighborhoods to our newer growth areas.  Education, innovation, and collaboration to support a vibrant economy: We are committed to growing a vibrant and sustainable local economy by continuing to attract new businesses, supporting existing businesses, and cultivating an environment that encourages entrepreneurship, job growth, and economic prosperity. We provide educational opportunities for all to ensure the current workforce and future generations are prepared for success.
 Stewardship, sustainability, and good governance: We are good stewards of our resources, making careful and thoughtful choices in the best interest of our community’s future.  Healthiest community in the Valley: We plan our community to provide recreational opportunities, parks, trails, a world-class senior center, and community programs, promoting an active and healthy lifestyle and fostering a strong sense of community connection.
 Employer of choice: We maintain Clovis as the public sector employer of choice.

Fiscal Overview
The City’s unemployment rate peaked in May of 2020 at 13%, dropped to as low as 2.5% in March of 2022, and in March of 2023 is at 3.8% and has held steady this past year, which is very close to the unemployment rate prepandemic. The City is beginning to see a decline of historically high sales tax revenue from last year as residents struggle with the impacts of high inflation and rapidly increasing interest rates. The City has also enjoyed higher than average retail sales when compared to other cities and the state, and significantly better occupancy at hotels experienced elsewhere. This has rapidly increased the City revenues, but the rate of increase is proving to be unsustainable and has begun to drop off while expenses have continued to grow. The recovery was coupled with historic inflation rates, nearing 10% in and coming down to 4% in April of 2024. This inflationary pressure pushed the Federal Reserve to make rapid increases in interest rates to moderate demand. The national economy is forecasted to slow but a recession is not being forecasted in the next year, but some signs of slowing are evident.

As was evident during the 2020 recession, the City’s efforts over many years to build a strong and diverse economy that attracts high quality businesses, employees, and residents to our community will be key in walking through more uncertainty.

In addition, the City as a whole is faced with a rapidly changing environment. The method of product delivery is transitioning to non-taxable digital services and delivery services rather than brick and mortar locations. Many employees are continuing to telecommute, changing daily traffic patterns, and finding labor is a continued challenge.

This has resulted in changes in real estate demand. In this, there are opportunities for the City to address the changes in the upcoming General Plan Update and projects such as the Shaw Avenue revitalization strategy being developed. The City has also supported and leveraged the large and continued increases in entrepreneurial startups.

As we gain deeper knowledge of the economic shifts that rapidly occurred during the pandemic, it has confirmed that the City is on solid ground economically with new businesses, ideas, and way of doing business coming forth to keep Clovis strong for the long run despite short term challenges in the labor market, inflationary pressures, and monetary policy. The fundamentals of a well-educated community, excellent infrastructure, good land use policies, and a heritage of hard work will provide for an economic engine that gives hope for the future. Continuing a spirit of partnership with Clovis businesses is going to be critical in reaching mutual goals of a vibrant community that allows for success of all residents.
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Budget Overview
The 2024-2025 Annual Budget for all funds totals $358.5 million, including $305.1 million in operating expenses and $53.4 million in capital improvement expenditures. The budget is balanced using current revenues, anticipated rate increases, and available reserves. This budget represents a 4% decrease compared to estimated expenditures for 2023-2024, due primarily to several large capital projects being completed in the current year and not reflected in the proposed budget. A summary of expenditures by function is provided below:

General Fund
The proposed General Fund Budget is balanced using some past year revenues. Without changes in revenue streams and/or expenditures in future years the City will not be able to maintain the current solid fiscal position and the level of service our residents expect. Expenditures are projected at $111.3 million and represent an increase of 5% compared to the estimated expenditures for 2023-2024. Revenues are projected at $110.4 million, which is an increase of 4% when compared to the estimated revenues for 2023-2024.

The summary of General Fund expenditures by function is provided below:

The 2024-2025 Annual Budget projects sales tax revenues to be $30.9 million, which represents a 3% decrease from the 2023-2024 Annual Budget. The City’s sales tax experienced dramatic growth in fiscal years 2021 and 2022 in particular, due to the shift to online purchases which was exacerbated by the pandemic. California’s AB 147, the Marketplace Facilitator’s Act, also provided vigorous gains in the county pools due to online purchases, of which the City receives a share. The City is no longer experiencing this kind of significant growth, but instead experienced a 3% decline in fiscal year 2023. The City anticipates sales tax to decline again in 2024-2025 from what was budgeted in the 2023-2024 Annual Budget. The City anticipates modest growth will be experienced in budgeted years to follow. One reason for the decline in sales tax is the inflationary pressures on households shifting dollars away from discretionary spending as larger portions of income go to essentials such as food, transportation, and housing costs. Sales tax comprises 37% of the projected discretionary revenue for fiscal year 2024-2025.

Property tax revenues are expected to continue to rise, although new housing development is not anticipated to continue at historical levels. Commercial property tax revenues will be closely monitored as they may be impacted by the accelerated shift to online shopping and remote office work. Property taxes, including in-lieu vehicle license fees, are projected to be $41.4 million in fiscal year 2024-2025, which represents a 11% increase from the previous fiscal year. These property taxes comprise 45% of the projected discretionary revenue for fiscal year 2024-2025.

A key to ensuring Clovis’ long-term fiscal health is to accumulate sufficient funds to maintain an Emergency Reserve that is adequate to protect the City against an unexpected catastrophic event and for the continuance of essential City services during a rapid economic downturn. The City’s auditors recommend a target amount of 20%-25% as a prudent reserve for a city operation the size of Clovis. The 2024-2025 Annual Budget does not include a transfer to the Emergency Reserve due to budget constraints. The balance of $22.6 million will remain and is 20.3% of expenditures. The Budget also includes an unassigned fund balance of $1.0 million to be carried forward as a contingency for economic uncertainty and in case of unexpected expenditures or revenue shortfalls.

Public Safety
74%
General
Government/
Economic Dev
10%
Public
Utilities
6%
Cultural &
Recreation
10%
General Government $ 9,977,500
Public Safety 82,932,700
Planning & Development Services 15,047,200
Community Investment Program 53,775,500
Public Utilities 90,427,600
Culture & Recreation 25,853,100
Internal Services 81,517,100
TOTAL $ 358,530,700
Public Safety $ 82,932,700
General Government/Economic Dev. 9,977,500
Public Utilities 6,585,300
Cultural & Recreation 11,780,400
TOTAL $ 111,275,900
General
Government
3%
Public Safety
23%
Planning &
Development
Services
4%
Community
Investment
Program
15%
Public
Utilities
25%
Culture &
Rec
7%
Internal
Services
23%
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AGENDA ITEM NO. 12.
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The General Fund is the only fund with discretionary revenues to fund all or portions of operations, such as Police and Fire protection, streets and parks maintenance, recreation, and senior services. The distinction between “discretionary” and “non-discretionary” revenues is key to understanding the financing of local government core services. It is also the key to understanding how decisions about funding of local government and use of revenues made at the state or local level can affect the City’s core services. Only 24% of the City’s total current year revenues are available for discretionary spending. The remaining revenues are designated for specific purposes. A more detailed description of the use of discretionary revenues is provided in the Introduction Section of this budget.

Other Funds
Although a major focus of the budget discussion is the General Fund because it represents the essential core services delivered to citizens and is supported by general tax revenues, other funds are no less important. These other funds include the community investment funds, enterprise funds, and internal service funds. All these funds are balanced for 2024-2025, utilizing current revenue and reserves when appropriate.

In the Public Utilities Department, Sewer will have a 3% rate increase in this year’s budget and will refund the full $7.30 bond surcharge. The Water Fund will implement the authorized 3% increase and has two rate schedules:
one for normal conditions and one for drought conditions. This year’s budget anticipates normal conditions.

Community Sanitation will have a 4% increase for recycling and greenwaste services, a 4% increase for refuse service and a 4% increase for Street sweeping charges. The Transit Enterprise Fund and Planning and Development Services Fund (PDS) are fully funded this year. These funds are included in the Summary of Fund Balances and other tables in the Summary of Revenue and Expenditures section of this budget.

The Internal Service Funds are included in this budget and act as cost accumulation and allocation centers. All these funds are fully funded with adequate balances to manage emergencies in the respective operational areas, should the need arise. In addition, the Community Investment Program (CIP) is included in this budget with details included in the CIP section.

The 2024-2025 Annual Budget represents the City being in a strong fiscal position poised to make investments to continue Clovis’ heritage and mission to “To set the standard for excellence in defining, delivering, and protecting local governance.” I wish to thank the Council, the City’s Executive Management Team, and all City Employees for their extraordinary efforts during the past four years as we have continued to provide excellent public service during unprecedented and challenging times. I am confident that we will continue to excel in 2024-2025.

Respectfully submitted,
John Holt
City Manager
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The Introduction Section provides general
information about the City, long-range
goals, major policies, financial planning,
key budget objectives, economic outlook,
discretionary revenues, budget process
and calendar, basis of budgeting, budgetary
controls, appropriation limitation, fund
descriptions, and organizational charts.
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INTRODUCTION
The City of Clovis was incorporated on February 27, 1912, as a general law city of the State of California and as such can exercise the powers allowed by the Constitution and laws of the State of California. The City is governed by the City Council-Manager form of government in which the
City Council determines the mission, land use, and
spending policies of the City and appoints the City
Manager to oversee the day-to-day operation in carrying forward those policies. The City Council consists of five members elected at large for alternating four-year terms.

The City provides the following services: public safety, animal control, transit, senior services, parks, recreation, economic development, planning and zoning, building
inspection and engineering, street maintenance, water
treatment and delivery, refuse collection and disposal, sewage collection and treatment, water reuse, street
cleaning, and general administrative services.

In accordance with state law and the Clovis Municipal
Code, the City prepares and adopts an annual balanced
budget on a basis consistent with generally accepted
accounting principles. Annual appropriated budgets are
adopted for the General Fund, special revenue funds,
capital project funds, and debt service funds. Spending plans are also adopted for the proprietary funds.

FINANCIAL POLICIES
The City Council has established fiscal policies that govern the City’s financial administration and are designed to safeguard the City’s assets, provide for a stable funding base, and ensure that adequate accounting data is compiled. The accounting data allows for the preparation of various accounting reports such as this budget and the Annual Comprehensive Financial Report (ACFR). Following are the financial policies that provide the basis for the financial direction of the City:
 The City’s budget policy states that all operating budgets shall be balanced, and ongoing costs will not exceed current revenues plus the available fund balance that exceeds reserve fund requirements. The minimum reserve for any operational fund is 10% of the budgeted expenditures with the goal for reserves of 20-25% of budgeted expenditures unless capital borrowing or extraordinary fiscal conditions require that higher levels of reserves be maintained.
 The Enterprise Funds are to be fully supported by user fees and charges, and the Internal Services Funds are to be funded at appropriate levels to ensure reasonable ability to respond to unforeseen events.

Annually, the City has designated a contribution of general funds to the General Government Services Fund (an Internal Service Fund) to address the building space needs for new fire stations, safety training facilities, regional park facilities, business and industrial parks, upgrades and new technology for improved productivity, and major remodeling, repairs, or additions to existing facilities.  The City will not issue long-term debt to cover current operations. The City will consider the issuance of long-term debt to purchase/build capital assets when those assets will benefit users over several years and it is determined that it is more equitable to spread the capital investment and financing costs of the assets to current and future users of the assets.
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AGENDA ITEM NO. 12.
 Annually, the City will have an independent audit of its financial records prepared by a certified public accountant, pursuant to generally accepted auditing standards, and will submit an annual financial report to the City Council by December 31 for the previous fiscal year.  Fees for services provided will be charged directly to users of the services when appropriate and should cover the full cost of service delivery. Fees will be reviewed on an annual basis to ensure that the fee is appropriate for the service provided compared to actual cost or an approved cost index.  Development impact fees will be established with the goal that new growth pays the cost of infrastructure improvements and minimizes the burden to existing residents.  The City will invest available cash assets in a manner consistent with the safeguards and diversity that a prudent investor would adhere to with primary emphasis on preservation of principal, sufficient liquidity to cover anticipated payment outflows, and high yields consistent with the first two goals. The City’s investments will be consistent with Section 53601 of the Government Code of the State of California that identifies which types of investments are eligible for investment of public funds, and the maximum percentage of an investment portfolio that is allowed for any one investment.

The City is in compliance with all of its financial policies.

KEY BUDGET OBJECTIVES
The City intends to maintain facilities and deliver essential core services at levels that will meet the most urgent needs of the community, while keeping expenditures in line with revenues. This is proving to be a challenge as costs are accelerating faster than revenues and likely requiring adjustments in the next few years in either revenues or reducing expenses. The following are the key objectives of this budget. For more details on how these objectives relate to departmental goals, refer to the Department Summaries included in the Operations Section.

1. Maximize service levels for public safety, crime prevention, hazard prevention, and emergency response in the community by prioritizing the most urgent demands for services and seeking alternative methods to meet lesser priority demands consistent with the need for sustainable spending.

2. Implement and begin update of the General Plan and all service and infrastructure master plans.

3. Given funding limitations, maintain appropriate service levels that will best promote community appearance and the environment and seek to protect the substantial public investment in streetscapes, parks, and trails.

4. Implement an Economic Development Strategy that seeks to facilitate the growth of new or expanding businesses and jobs that improve the overall tax base of the City, improve the diversity of the local economy, and improve the income of residents in the community.

5. Given funding limitations, pursue an aggressive capital investment program to provide a safe, clean, and well-maintained community for the residents, to provide first-rate public facilities to serve the City’s population well into the future, and to induce increased local employment from construction contracts; and to provide preventative maintenance as a priority expenditure to avoid greater costs in the future.

6. Provide targeted neighborhood revitalization investments. This is a long-term effort to improve community appearance, neighborhood stabilization, infrastructure improvements, amenities in older neighborhoods, and economic opportunities. These investments total $9.97 million in the 2024-2025 budget on top of over $40 million in the previous two budgets in funding primarily reinvesting in some of the City’s older neighborhoods.

DISCRETIONARY VERSUS NON-DISCRETIONARY REVENUES
The distinction between these categories of revenue is especially important for the General Fund. It is the key to understanding the financing of general government operations and services. Understanding these categories of revenue makes clear how decisions that are made about funding for local government and use of these revenues can affect these core government services. With constrained sources of revenue, the terms “discretionary” and “non-discretionary” revenues have taken on greater importance.

Discretionary revenues are those for which the City can decide, without restriction, how these funds will be expended and on which programs. Examples of discretionary revenues are property taxes, most sales taxes, 2 152
AGENDA ITEM NO. 12.
and business license fees, all of which may be allocated to support any lawful purpose of the City’s choosing.

Discretionary revenues are used to support the General Fund operations and programs. The primary sources of discretionary revenues are property, sales, and certain other taxes which account for more than 98% of total discretionary funding.

Non-discretionary revenues have restrictions, and the City must spend these revenues on the programs for which they are intended. Examples of non-discretionary revenues include gas taxes that must be used for street maintenance; and development fees that must be used for land use entitlement processes and inspections or investment in public improvements associated with new development.

The chart on the following page titled “Summary of Discretionary and Non-Discretionary Revenues 2024-2025” illustrates that only 24% of total annual revenues are discretionary with the remaining 76% nondiscretionary. The City’s discretionary revenues this year total $85.5 million, of which $85.2 million are being appropriated in the General Fund and $0.35 million are being transferred to the Planning and Development Services Fund to pay for the public benefit supported by that operation. The remaining $273.0 million of revenues are non-discretionary. Of the discretionary revenues, the chart titled “Use of Discretionary Revenues 2024-2025” shows that the City will use 87%, or $74.3 million, of the total $85.5 million of discretionary funds for public safety.
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AGENDA ITEM NO. 12.

SUMMARY OF

DISCRETIONARY AND NON-DISCRETIONARY
REVENUES 2024-2025
NonDiscretionary Discretionary Total
Property Taxes 37,855,000 3,619,000 41,474,000
Sales & Other Taxes 44,416,000 557,000 44,973,000
Licenses & Permits 1,220,000 3,944,000 5,164,000
Fines & Forfeitures 0 199,000 199,000
Use of Money & Property 450,000 3,365,200 3,815,200
Revenue From Other Agencies 250,000 51,458,800 51,708,800 Charges For Current Services 52,000 199,024,100 199,076,100 Other Revenues 0 672,000 672,000
TOTAL CURRENT FUNDING 84,243,000 262,839,100 347,082,100 (Additions to)/Use of Available Balance 1,202,500 10,246,100 11,448,600 TOTAL 85,445,500 273,085,200 358,530,700
24%
76%
Discretionary Non-Discretionary
Current Funding
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AGENDA ITEM NO. 12.

USE OF DISCRETIONARY REVENUES
2024-2025
Non- Use of
Total Discretionary Discretionary
Departments Expenditures Revenues Revenues
City Council 563,500 192,000 371,500
City Attorney 1,123,900 751,000 372,900
City Manager 10,466,000 8,323,600 2,142,400
General Services 78,344,700 75,074,800 3,269,900
Finance 4,021,900 3,283,000 738,900
Police 58,442,500 6,851,300 51,591,200
Fire 24,490,200 1,786,000 22,704,200
Public Utilities 112,255,300 108,350,800 3,904,500
Planning & Development Services 15,047,200 14,697,200 350,000 Community Investment Program 53,775,500 53,775,500 0
TOTAL 358,530,700 273,085,200 85,445,500
Public Utilities
5%
Planning & Dev
Serv
1%
Public Safety
87% General Services
3%
Admin & Econ Dev
4%
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AGENDA ITEM NO. 12.

ECONOMIC OUTLOOK
The City’s unemployment rate peaked in May of 2020 at 13%, dropped to as low as 2.5% in March of 2022, in March of 2023 it was 3.8%. It has held steady this past year, which is very close to the unemployment rate pre-pandemic. The City is beginning to see a decline in historically high sales tax revenue from last year as residents struggle with the impacts of high inflation and rapidly increasing interest rates. The City has also enjoyed higher than average retail sales when compared to other cities and the state, and significantly better occupancy at hotels than experienced elsewhere. This has rapidly increased the City revenues, but the rate of increase is proving to be unsustainable and has begun to drop off. The recovery was coupled with historic inflation rates, nearing 10% and coming down to 4% in April of 2024. This inflationary pressure pushed the Federal Reserve to make rapid increases in interest rates to moderate demand. The national economy is forecasted to slow, but a recession is not being forecast in the next year. However, some signs of slowing are evident. As was evident during the 2020 recession, the City’s efforts over many years to build a strong and diverse economy that attracts high quality businesses, employees, and residents to our community will be key in walking through more uncertainty.

In addition, the City as a whole is faced with a rapidly changing environment. The method of product delivery is transitioning to non-taxable digital services and delivery services rather than brick and mortar locations.

Many employees are continuing to telecommute, changing daily traffic patterns, and finding labor is a continued challenge. This has resulted in changes in real estate demand. In this, there are opportunities for the City to address the changes in the upcoming General Plan Update and projects such as the Shaw Avenue revitalization strategy being developed. The City has also supported and leveraged the large and continued increases in entrepreneurial start-ups.

As we gain deeper knowledge of the economic shifts that rapidly occurred during the pandemic, it has confirmed that the City is on solid ground economically with new businesses, ideas, and way of doing business coming forth to keep Clovis strong for the long run despite short term challenges in the labor market, inflationary pressures, and monetary policy. The fundamentals of a well-educated community, excellent infrastructure, good land use policies, and a heritage of hard work will provide for an economic engine that gives hope for the future. Continuing a spirit of partnership with Clovis businesses is going to be critical in reaching mutual goals of a vibrant community that allows for success of all residents.

Upcoming projects that will have a positive effect on the local economy include:
 California Health Sciences University (CHSU) increasing enrollment candidates for becoming medical doctors in the Sierra Gateway Commerce District;
 Further attraction of businesses to the Sierra Gateway Commerce District;  Businesses locating in the expanded Dry Creek Industrial Park and nearby business developments;  Additional expansion of medical facilities at Clovis Community Medical Center and on adjacent properties;  Targeted investments of $9.97 million that will improve older Clovis neighborhoods and provide economic opportunities;
 Development of approximately 400,000 square feet of industrial buildings on vacant parcels in the Clovis Industrial Business Park;
 The development on the Clovis and Dakota Avenue site into approximately 400,000 square feet of industrial will add at least 1,000 jobs to the City;
 The beginning of commercial development in the Heritage Grove growth area;  Additional commercial development coming to the Herndon Avenue Corridor;  Continued investment in the Shaw Avenue Corridor;
 Additional retail opening to the Loma Vista Urban Center;  Construction of a six-lane expressway on Shaw Avenue from DeWolf to Leonard Avenues; and  Proposed car dealerships at Clovis and Herndon Avenues. 6 156
AGENDA ITEM NO. 12.

FUND ACCOUNTING
The accounts of the City are organized on a basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenses/expenditures. Government resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent. The various funds are grouped into three broad categories as follows:

Governmental Fund Types - Governmental funds are used to account for all of the City's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition of or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The General Fund is used to account for all activities of the general government not accounted for in some other fund.

Proprietary Funds - Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration and the primary intent is to recover the costs of providing the goods or services through user charges. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government (internal service funds).

Fiduciary Funds - Fiduciary funds are used to account for assets held on behalf of outside parties in a trustee capacity. Assessment Districts fall within this category as does the Redevelopment Successor Agency.

BASIS OF BUDGETING
The budgets of the governmental fund types (General Fund, special revenue, capital projects, debt service, and assessment districts) are prepared on a modified accrual basis. This means expenditures are recorded when the liability is incurred, and revenues are recognized if they are received during the fiscal year or shortly thereafter. In addition, the City treats encumbrances as expenditures only for budgetary control purposes.

Encumbrances open at year-end are reported as assignments of fund balances since they do not constitute expenditures or liabilities. Available expendable resources include beginning fund balance and current year revenues and transfers from other funds.

The spending plans for the proprietary fund types, comprised of internal service funds (employee benefits, fleet, liability and property insurance, and general services) and enterprise funds (water, sewer, community sanitation, planning and development services, and transit), are prepared on a full accrual basis. Expenses are recorded when the liability is incurred, and revenues are recognized when the service is provided.

Exceptions exist in the way the City prepares its spending plans for the enterprise funds and the way they are reported in the City's Annual Comprehensive Financial Report (ACFR). Depreciation on assets is not shown in the spending plan, but expenditures for capital are shown at the full purchase price. The ACFR shows depreciation but not the capital expenditure, which is in accordance with generally accepted accounting principles. Available expendable resources for proprietary funds include beginning working capital, current revenues, and transfers in. Beginning working capital is defined as current assets less current liabilities; in other words, working capital represents cash available to pay expenses.

FIVE-YEAR COMMUNITY INVESTMENT PROGRAM
Based on the City’s Master Development Plans, the program consists of broad evaluation and establishment of priorities for capital projects essential for future development, as well as the replacement of existing City facilities as needed to ensure the continued delivery of services to the public. An important part of the process of developing the community investment program for capital improvements is determination of the logical order of construction of projects included in the master plans so that underground work is well coordinated to be accomplished in advance of above groundwork. Public service programs and the master plans are the principal bases for determining general priorities. Other factors, however, may influence the final decision as to when a particular project is to be undertaken, such as public demand, major commercial or industrial users, the need to coordinate with other jurisdictions, or even special funding. The five-year community investment program is not designed to do all things that need to be done, but rather to develop a reasonable program of public needs and a dependable order of urgency for each project in relation to other projects. The preparation of the capital budget provides greater assurance that the projects will be undertaken in order of need, that overlapping projects will be avoided, that costly mistakes can be avoided, and that all projects can be 7 157
AGENDA ITEM NO. 12.
coordinated with each other. Below are a few highlights of projects included in the Five-Year Community Investment Program:
 Design of Sewer Diversion Projects to extend life of Herndon Sewer Service Area  Design and Construction of Recharge Basin Park at Barstow and Agua Dulce  Construction of Roundabout at Owens Mountain Parkway and DeWolf Avenue  Design and Construction of the Dry Creek and Enterprise Tails Connection  Design of Various Street Rehabilitation Projects
 Design of the DeWolf Avenue sewer trunk line
 Signal Coordination on Shaw and Herndon Avenues
 Rehabilitation or Widening of Various Streets, including:
o Armstrong Avenue – Shaw to Barstow Avenue
o Ashlan Avenue – Winery to Peach Avenues
o Barstow Avenue – Sunnyside to Fowler & Villa to Minnewawa Avenues o Herndon Avenue – Fowler to Armstrong Avenues
o Minnewawa Avenue – Alluvial to Herndon Avenues
o Peach Avenue – Gettysburg to Ashlan Avenues
o Shaw Avenue – DeWolf to Leonard Avenues
o Sunnyside Avenue – Barstow to Shaw Avenues

BUDGET PROCESS
The proposed budget is required by City Ordinance to be submitted to the City Council by the third meeting in May for the upcoming fiscal year (which begins July 1 and ends June 30). The Council holds public hearings following the submittal of the budget, and may add to, subtract from, or change appropriations within revenues and reserves estimated as available. The Council is required to adopt a balanced budget by June 30. If a balanced budget is not adopted by June 30, to ensure continuity of government services, the City Manager’s proposed budget becomes effective (excluding capital expenditures).

As part of the budget process, City staff prepares a five-year forecast that analyzes the City's long-term fiscal condition. It identifies trends and issues that must be addressed early to ensure the City's continued financial success in meeting the service needs of the City's residents. These planning sessions are intended to identify Council goals and priorities for the upcoming year. The departments then provide budgetary requests necessary to provide the services required to meet the Council goals. Once the City Manager confirms that the budget is structurally balanced with current resources sufficient to cover current expenditures, the Finance Department accumulates the data into a budget book representing the proposed budget that is submitted to Council.

Following adoption of the budget, it is sometimes necessary to amend the budget. The City Manager may transfer any appropriation within a specific fund not to exceed $5,000 for appropriations and $2,500 for reserves. Transfers exceeding these amounts require Council action. Also, the Personnel section from time to time may require an amendment should additional staffing be necessary or should the complement of staff require adjustment. These changes also require Council action.

BUDGET CALENDAR
Departmental Submittal (including CIP) April 4, 2024
City Manager Budget Review April 8 - April 12, 2024
Introduction of Recommended Budget to City Council May 13, 2024 Council Budget Review and Public Hearings June 17, 2024 Adoption of Budget June 17, 2024
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AGENDA ITEM NO. 12.

BUDGET CONTROL
Budgetary control is maintained at the department level by fund for both expenditures and personnel. The City utilizes encumbrance accounting in governmental funds under which purchase orders, contracts, and other commitments for expenditures are recorded to reserve the budgeted line item. Monthly reports to staff and quarterly reports to Council are utilized to affect budgetary control and reporting.

APPROPRIATIONS LIMITATION
In November of 1979, California voters approved a constitutional amendment that established an Appropriations Limitation for the state and local governments. In June of 1990, the electorate approved Proposition 111 that amended the provisions of the constitution to provide for the adjustment of the Limitation.

The formula now used to calculate the Appropriations Limit is the percentage change in California Per Capita Income (PCI) or the percentage change in valuations of non-residential construction (NRC) plus the percentage change in the City's population or the County's, whichever is greater. The State Department of Finance has provided the City with the population estimates and the Per Capita Income. The City’s population increased approximately 1.42% from 2023. The percentage change in the California PCI was approximately 3.62%. The change in non-residential construction was 1.64%. Therefore, the change in PCI is used.

Appropriations Limitation 2023-2024 $404,728,778
Add: Change in Population (1.42%) 5,747,149
$410,475,927
Add: Change in PCI (3.62%) 14,859,229
Appropriations Limitation 2024-2025 $425,335,156
Less: Proposed Expenditures Subject to Limitation in 2024-2025 95,318,639 Amount of Unused Authorized Appropriations $330,016,517 Over the past five years, the City of Clovis’ expenditures have been less than the appropriation (approximately 25% of the limit); therefore, it is not likely that the City of Clovis will reach the Appropriations Limit in the future.

It is recommended that the Council's adoption of the Budget include the establishment of the City's Appropriations Limitation for the 2024-2025 fiscal year at $425,335,156. ____________________________________
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AGENDA ITEM NO. 12.

DESCRIPTION AND PURPOSE

OF ACCOUNTING FUNDS
The information below provides a brief outline for each of the funds utilized by the City to account for revenue and expenditures for the various activities of the City.

Community Facilities District 2020-1 Fund
The Community Facilities District 2020-1 Fund is a
special revenue fund that houses the collection and
spending of tax assessments within Community
Facilities District 2020-1. Assessments collected will
be used to finance all costs associated with the
maintenance and operation of certain public sewer
facilities and the eventual replacement thereof.

Community Sanitation Fund
The Community Sanitation Fund, which is selfsupporting from fees, is operated as a City business or "enterprise." All costs including depreciation are
recorded in this fund. All revenue from service
charges related to the collection and disposal of
solid waste, recycling, greenwaste, and street
sweeping fees is deposited into this fund.

Employee Benefits Fund
This fund accounts for the cost of employee
benefits including retirement, workers'
compensation, health insurance, unemployment
insurance, and social security and Medicare
insurance. The source of funding is a charge to all
departments with personnel.

Fleet Maintenance and Replacement Fund
This fund accounts for the expenditures for
maintaining the City's fleet and for equipment
replacement. The source of funding is rental and
replacement charges to all operating departments
that use vehicles or equipment.

General Fund
The purpose of the General Fund is to account for
general government activities such as public safety,
planning, some public works, and revenue
collection administration. All local tax revenues,
building fees, certain user charges, and all
discretionary revenues are deposited in the General
Fund. The General Fund also receives
non-discretionary revenues related to specific
activities that are performed by the operating
sections within the General Fund.

General Government Services/Facilities Fund
This fund accounts for centralized support provided
to other departments including computer services,
central supplies, communications, energy, and
janitorial services and for government facility
maintenance, enhancements, and acquisitions.

The sources of funding come from a charge to all
operating departments.

Housing & Community Development Fund
This fund accounts for the operations of the
Housing and Community Development Program.

The funding source is the Housing and Community
Development Block Grant.

Housing Successor Fund
This fund was created to continue those City
managed housing projects not affected by the
State’s elimination of Redevelopment Agencies.
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AGENDA ITEM NO. 12.

Landscape Maintenance Fund
This fund accounts for the expenditures of the
Landscape Maintenance Districts.

Liability and Property Insurance Fund
This fund accounts for the cost of general liability
and property damage claims and insurance. The
source of funding is from a charge to all operating
departments.

Park Projects Fund
This fund accounts for the revenue, primarily from
developer fees and park grants, for the purpose of
park development, including acquisition of property.

Also, as needed, funds are transferred from this
fund to the Park Bond Debt Service Fund for
payment of the annual principal and interest on the
Park Bonds, which were used for park acquisition
and development.

Planning & Development Services Fund
This fund accounts for the activities of the building,
planning, and engineering departments of the City.

Revenue is mainly generated from permit fees for
services provided.

Sewer Construction-Developer Fund
This fund accounts for the revenue from developer
fees from the Major Facilities Sewer charge and to
account for capital improvements for major trunk
sewer projects and expansion at the treatment
plant.

Sewer Construction-Enterprise Fund
This fund accounts for capital expenditures for
sewer main construction. Funds are transferred
into the fund from the Sewer Service Fund for userrelated projects and from the Developer Trust Fund as reimbursements are made for developer
projects.

Sewer Service Fund
This enterprise fund accounts for the operation and
maintenance of the City's sanitary sewer system,
including operating costs of the City's share of the
Fresno-Clovis Wastewater Treatment Facility. The
fund is self-supporting from sewer user fees.

Street Construction Fund
This fund accounts for the capital street projects
paid for out of the City's share of Transportation
Development Act (SB 325) funds allocated by the
state, 1/2 cent sales tax for transportation, Special
Gas Tax Select Street funds, and federal funding
sources under the Federal Intermodel Surface
Transportation Efficiency Act. In addition, funds are
transferred from the Developer Trust Fund as
reimbursements are made for developer-financed
projects.

Successor Agencies Fund
This fund was established to manage the wind
down of the Clovis Community Development
Agency. State actions eliminated Redevelopment
Agencies effective 1/31/12 and required the
creation of this fund.

Transit Fund
This fund accounts for the operation of the City's
transit system including Stageline and Round-Up
and services contracted from Fresno Area Express
(FAX). The sources of funding for this activity are
SB 325 monies, farebox revenues, and 1/2 cent
sales tax for transportation.

Water Construction-Developer Fund
This fund accounts for the revenue from developer
fees and for capital improvements for major water
lines, water wells, and other major capital
improvements.

Water Construction-Enterprise Fund
This fund accounts for revenue from developer fees
and expenditures for installation of water mains.

Water Service Fund
This enterprise fund accounts for revenues from
delivery of water and the related expenditures to
operate and maintain the water system. Funds are
transferred from this fund to the Water Main
Construction Fund for system maintenance and
upgrades.
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AGENDA ITEM NO. 12.

City Of Clovis Organization Chart

MAYOR AND

CITY COUNCIL

CITY MANAGER

ASSISTANT CITY MANAGER

PLANNING COMMISSION

PERSONNEL COMMISSION

CITY ATTORNEY

CITIZENS OF
CLOVIS

GENERAL SERVICES DEPARTMENT

PERSONNEL/RISK MANAGEMENT

SENIOR SERVICES

PUBLIC TRANSIT

RECREATION SERVICES

FACILITIES MAINTENANCE

PURCHASING

CITY MANAGER DEPARTMENT

ECONOMIC DEVELOPMENT &

COMMUNICATIONS

HOUSING & COMMUNITY DEVELOPMENT

CITY CLERK OPERATIONS

INFORMATION TECHNOLOGY

SUCCESSOR AGENCY

FINANCE DEPARTMENT

ACCOUNTING/REPORTING

UTILITY BILLING

BUDGETING

CITY TREASURER

FIRE DEPARTMENT

OPERATIONS

TRAINING

FIRE PREVENTION

EMERGENCY PREPAREDNESS

PLANNING AND DEVELOPMENT

SERVICES DEPARTMENT

PLANNING

BUILDING

ENGINEERING SERVICES

COMMUNITY INVESTMENT PROGRAM

POLICE DEPARTMENT

ADMINISTRATION & SUPPORT SERVICES

COMMUNICATIONS

PATROL & JAIL SERVICES

INVESTIGATIONS

YOUTH & ANIMAL SERVICES

PUBLIC UTILITIES DEPARTMENT
WATER

WASTEWATER

COMMUNITY SANITATION
PARKS

STREET MAINTENANCE & LIGHTING
FLEET
12 162
AGENDA ITEM NO. 12.

City Manager Department

CITY MANAGER

INFORMATION

TECHNOLOGY

ECONOMIC DEVELOPMENT

HOUSING &

COMMUNICATIONS

CITY CLERK ADMINISTRATION

ASSISTANT CITY MANAGER

EXECUTIVE MANAGEMENT
TEAM
13 163
AGENDA ITEM NO. 12.

General Services Department

GENERAL SERVICES

DIRECTOR

PERSONNEL

RISK MANAGEMENT

COMMUNITY SERVICES DEPARTMENT SUPPORT

PERSONNEL SERVICES SENIOR SERVICES PURCHASING

FACILITIES

MAINTENANCE

EMPLOYEE BENEFITS RECREATION

RISK MANAGEMENT PUBLIC TRANSIT
14 164
AGENDA ITEM NO. 12.

Finance Department

FINANCE DIRECTOR

CITY TREASURER

ACCOUNTING INVESTMENT AND

REVENUE

BUDGETING

FORECASTING

FINANCIAL

REPORTING

DEBT ISSUANCE
& ADMINISTRATION

BILLING AND

COLLECTION
GRANT

ACCOUNTING

INVESTING
COST

ACCOUNTING
15 165
AGENDA ITEM NO. 12.

Planning and Development Services Department

PLANNING AND DEVELOPMENT SERVICES

DIRECTOR

PLANNING

DIVISION

BUILDING

DIVISION

ENGINEERING

DIVISION

ADVANCE PLANNING

CURRENT PLANNING

MAJOR PROJECTS
& PROGRAMS

PERMIT PROCESSING ENGINEERING

ADMINISTRATION

CAPITAL

IMPROVEMENTS

CONSTRUCTION

MANAGEMENT

INSPECTIONS

DEVELOPMENT
REVIEW

RESIDENTIAL

COMMERCIAL
16 166
AGENDA ITEM NO. 12.

Police Department

CHIEF OF POLICE

ADMINISTRATION &

SUPPORT SERVICES

OPERATIONS
PATROL SPECIAL ENFORCEMENT TEAM
CRIME

ANALYSIS

MAGEC/HEAT/
ACT

FBI-TERRORISM

TASK FORCE

HOMELAND

SECURITY

COMPUTER

FORENSICS

WELLNESS &

FITNESS
HIRING

RESERVES

CHAPLAINS &

VOLUNTEERS
FLEET

PUBLIC RECORDS
ACT

NEIGHBORHOOD

SERVICES

RECORDS &

PUBLIC SERVICES

TRAINING
ANIMAL

RESPONSE TEAM

MISS WINKLES PET

ADOPTION CENTER

NON-PROFITS

RECEIVING &

CARE CENTER

GRAFFITI

ABATEMENT

JUVENILE

WORK PROGRAM

DIVERSION
SOCIAL
WORK
YOUTH

ACADEMY

JUVENILE DRUG

EDUCATION

INVESTIGATIONS

BUDGET/
GRANTS
UAV
WATCH 1
BEAT 7 & 8
WATCH 3
BEAT 1
EOD
JAIL
FIELD

TRAINING
WATCH 2
BEAT 2, 3, & 6

INTERNAL

AFFAIRS

INJURIES W/C
CUSD

LIAISON

TECHNOLOGY

QUALITY OF LIFE
ISSUES

YOUTH SERVICES &

ANIMAL SERVICES
WATCH 4 & 6
BEAT 4 & 5
HONOR
GUARD

HOSPITAL/
EMS

PITCHESS
K9 MUTUAL
AID
CROWD

MANAGEMENT
COMMUNICATIONS
POLICY, PROC.
& UOF REVIEW

TRAFFIC

PROPERTY &

EVIDENCE

FACILITIES
SWAT/
CNT
PIO &
MEDIA

SPECIAL

VEHICLES
17 167
AGENDA ITEM NO. 12.

Fire Department

FIRE CHIEF

EMERGENCY

OPERATIONS DIVISION

COMMUNITY RISK

REDUCTION DIVISION

TRAINING

COMMUNICATIONS

EMERGENCY

PREPAREDNESS
FIRE

INVESTIGATIONS
FIRE

PREVENTION
BUDGET

ACCREDITATION

STRATEGIC

PLANNING

PERSONNEL
SHIFT

OPERATIONS

SPECIALIZED
TEAMS
FLEET

FACILITIES

LOGISTICS

ADMINISTRATION

DIVISION
18 168
AGENDA ITEM NO. 12.

Public Utilities Department

PUBLIC UTILITIES

DIRECTOR

UTILITIES & PARKS ADMINISTRATION, SAFETY

TECHNICAL & FLEET

SANITATION & STREETS

WATER SUPPLY
& DISTRIBUTION

WASTEWATER

STORM DRAINAGE

SOLID WASTE

COLLECTION

LANDFILL

OPERATIONS

RECYCLING

ADMINISTRATION

STREET CLEANING
STREET

MAINTENANCE

STREET LIGHTING

PARKS/LANDSCAPE

MAINTENANCE

ADMIN & CLERICAL

UTILITIES PLANNING
& ENGINEERING

SAFETY & COMPLIANCE
FLEET

MAINENANCE
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AGENDA ITEM NO. 12.

Clovis Successor Agencies

SUCCESSOR COMMUNICATIONS
AGENCY

ECONOMIC

DEVELOPMENT

AFFORDABLE

HOUSING

ECONOMIC DEVELOPMENT, HOUSING &

COMMUNICATIONS DIRECTOR
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AGENDA ITEM NO. 12.

CITY OF CLOVIS

GOVERNMENT FUND TYPES

ENTERPRISE FUND

COMMUNITY SANITATION

PLANNING & DEVELOPMENT SERVICES

TRANSIT

WASTEWATER
WATER

GENERAL FUND

CITY ATTORNEY

CITY CLERK

CITY COUNCIL

CITY MANAGER

ECONOMIC DEVELOPMENT &

COMMUNICATIONS

FINANCE
FIRE
PARKS
POLICE

RECREATION

SENIOR SERVICES

STORM DRAIN

STREET LIGHTING

STREET MAINTENANCE

INTERNAL SERVICE FUND

EMPLOYEE BENEFITS

FACILITIES MAINTENANCE

FLEET MAINTENANCE

INFORMATION TECHNOLOGY

INSURANCE

PERSONNEL
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AGENDA ITEM NO. 12.

CITY OF CLOVIS
2024-2025 MANAGEMENT STAFF
John Holt, City Manager
Andrew Haussler, Assistant City Manager
Chad McCollum, Economic Development, Housing & Communications Director Scott Cross, City Attorney
Curt Fleming, Police Chief
Chris Ekk, Fire Chief
Jay Schengel, Finance Director/Treasurer
Shonna Halterman, General Services Director
Renee Mathis, Planning & Development Services Director
Scott Redelfs, Public Utilities Director

BUDGET PREPARATION TASK FORCE
John Holt, City Manager
Jay Schengel, Finance Director
Andrew Haussler
Gina Daniels
Jeff Blanks
Susan Evans
Jose Reynoso
Jose Cortez
Ran Chan
Fernando Copetti
Rebecca Simonian
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AGENDA ITEM NO. 12.

The Summary Section provides summarized
information on the various funds, revenue,
expenditures, and fund balances. The Summary
Section also provides a detailed presentation
of specific General Fund revenue.
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AGENDA ITEM NO. 12.

FUND BALANCE SUMMARY
This section contains information about the various funds utilized by the City presented in summary form. The narrative, Highlights of Fund Activities, provides facts about the major fund groups. The information is intended to present to the reader, in a condensed form, important data about each fund group.

The Summary of Resources and Appropriations, which follows the Highlights, provides a very concise presentation of the various funds. For each fund, the Summary includes the estimated beginning fund balance as of July 1, 2024; the total estimated revenue for 2024-2025; the total proposed budget expenditures for 2024-2025; and the projected ending fund balance for each fund as of June 30, 2025.

The Notes to Resources and Appropriations Summary, immediately following the Summary of Resources and Appropriations, provides detail on the various fund transfers along with notes about fund presentation and is an integral part of the Summary.

These schedules provide, in a condensed form, an overview of the financial position of the City for the budget year.
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AGENDA ITEM NO. 12.

FUND HIGHLIGHTS
General Fund - General Fund expenditures are being funded through current year revenues and use of fund balance. Projected revenues are $110.4 million which is $4.3 million or 4% more than the revised revenues for 2023-2024. Revenues for 2024-2025 are increasing mainly due to property taxes, sales taxes, transient occupancy taxes, and business license taxes. Proposed expenditures are $111.3 million and represent $5 million or 5% more when compared to 2023-2024 estimated expenditures. The increase in 2024-2025 projected expenditures is largely due to increased costs for employee benefit programs including retirement and health insurance along with general price increases on the cost of services and supplies. Three new positions are recommended for the General Fund for 2024-2025. All three positions are in the Police Department.

Additionally, one position will be converted in the Fire Department. The General Fund has $22.6 million, or

20.3% of expenditures, designated as an emergency reserve. The General Fund also reflects a $1.0 million unreserved, unassigned balance available to offset the impact of any revenue shortfall or cover any unexpected expenditures that do not meet the emergency designation.

Special Revenue Funds - The Housing and Community Development Fund projects a fund balance of $1.0 million for 2024-2025 with current program costs funded using capital funds for projects and revenues sufficient to cover current operational program costs. The Landscape Assessment District Fund shows a projected fund balance of $9.7 million for 2024-2025. This amount is being accumulated for required reserve and future equipment replacement. The Community Facilities District 2020-1 shows a projected fund balance of $261,600.

Internal Service Funds - All of the City’s Internal Service Funds have adequate revenues or reserves to cover current operating requirements. All Internal Services Funds derive revenue primarily from charges to user departments. No new positions for the General Services Department are recommended for 2024-2025. The General Government Facilities Fund includes a limited number of minor projects with the reserves committed to future debt service obligations.

Enterprise Funds - All of the City’s Enterprise Funds show sufficient revenue and working capital to meet current operating requirements. With the increase in development over the last few years, the City has rebated utility customers the Sewer bond coverage charge of $7.30 per month. The City will continue to rebate the $7.30 per month Sewer bond coverage charge in 2024-2025. Sewer operations have an authorized 3% escalator, which is included in the proposed budget. The Community Sanitation Enterprise has an approved 4% increase effective every July 1 as needed. The need for this increase has been reviewed and will be implemented effective July 1, 2024, for the Recycling and Greenwaste programs, the Refuse program and the Street Sweeping program. The Water Enterprise Fund reflects the approved 3% rate increase effective July 1, 2024, with rate increases approved in future years if necessary. The Water/Sewer/Community Sanitation operations will add four new positions in 2024-2025 and the Parks department will add one new position to accommodate continued growth of the City. The Transit Enterprise will continue utilizing the annual money received from State Transit Assistance (STA) to improve transit services and for capital improvements. The Transit Enterprise has four new recommended positions in 2024-2025. To accommodate staffing changes and market demands, the Planning & Development Enterprise has one new position, one position elimination, and five positions only budgeted for half a year for 2024-2025.

Capital Improvements - Several major projects are included in the 2024-2025 budget and are listed in the Community Investment Program Section. The City has also identified several major projects in the Five-Year Community Investment Program Section for years beyond 2024-2025 that do not currently have funding sources identified.

More details regarding the recommended positions included in the 2024-2025 budget in the General Fund, Internal Service Funds, and Enterprise Funds are included in the Personnel Section. 24 176
AGENDA ITEM NO. 12.

SUMMARY OF

RESOURCES AND APPROPRIATIONS
2024-2025
Beginning Current Ending
Fund Balance Transfers Resources Expenditures Balance

GENERAL
General Fund* 3,296,500 (1,475,000) 110,423,400 111,275,900 969,000

SPECIAL REVENUE FUNDS
Housing & Community Develop. (1,127,200) 0 2,611,800 438,100 1,046,500 Landscape Assessment Dist 9,075,100 0 6,480,000 5,794,800 9,760,300 Community Facilities Dist 2020-1 219,300 0 75,000 32,700 261,600 Affordable Housing 0 1,000,000 320,900 320,900 1,000,000 Total Special Revenue 8,167,200 1,000,000 9,487,700 6,586,500 12,068,400

INTERNAL SERVICE FUNDS
Liability & Property Insurance 1,656,900 0 8,422,000 8,425,500 1,653,400 Employee Benefits 16,519,800 0 42,096,400 42,893,200 15,723,000 Fleet Maintenance 22,518,900 0 16,466,800 13,531,200 25,454,500 General Government Services 5,638,400 0 17,003,300 16,667,200 5,974,500 Total Internal Service 46,334,000 0 83,988,500 81,517,100 48,805,400

ENTERPRISE FUNDS
Community Sanitation 9,198,500 150,000 27,029,000 30,470,200 5,907,300 Sewer Service 24,151,700 (230,000) 16,869,000 19,713,800 21,076,900 Water Service 19,492,300 (1,250,000) 23,483,000 27,830,800 13,894,500 Transit 119,300 0 12,636,000 12,634,600 120,700
Planning & Development Service 8,955,400 350,000 14,485,000 15,047,200 8,743,200 Total Enterprise 61,917,200 (980,000) 94,502,000 105,696,600 49,742,600

CAPITAL IMPROVEMENT FUNDS
Sewer Construction 1,950,900 230,000 6,291,000 7,826,000 645,900 Park Projects 5,014,200 0 2,565,000 1,775,000 5,804,200 Street Construction 13,467,000 0 27,671,700 33,069,000 8,069,700 Water Construction 6,057,000 1,250,000 7,997,000 6,509,000 8,795,000 Housing & Community Develop. 2,256,800 0 1,068,800 3,325,600 0 Refuse Construction 0 0 500,000 500,000 0
General Government Facilities 17,536,400 125,000 2,587,000 450,000 19,798,400 Total Capital Improvement 46,282,300 1,605,000 48,680,500 53,454,600 43,113,200 165,997,200 150,000 347,082,100 358,530,700 154,698,600 Beginning Ending
Balance Transfers Additions Deductions Balance

SUCCESSOR AGENCIES TRUST FUND
Clovis Successor Agencies** 764,300 0 1,357,000 1,365,000 756,300 * The General Fund maintains a $22,600,000 set aside, or 20.3% of expenditures, as an emergency reserve as directed by the City Council.
**The Clovis Successor Agencies are Private Purpose Trust Funds and as such are reported separately and not included in Citywide totals.
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AGENDA ITEM NO. 12.

NOTES TO RESOURCES & APPROPRIATIONS

SUMMARY

1. Summary of Transfers
Interfund operating transfers are legally authorized transfers from one fund receiving revenue to the fund where the resources are to be expended.

Amount From To Purpose
$ 350,000 General Fund Planning and Dev General Fund supported activity 1,000,000 General Fund Affordable Housing Various projects 50,000 General Fund General Govt Svs Fire Training Center Drainage 75,000 General Fund General Govt Svs Demo of IT portable building 150,000 Comm Sanitation Cap* Comm Sanitation Oper Acquisition of refuse containers 500,000 Sewer Service Sewer Cap-User Capital projects
270,000 Sewer Capital-Dev Sewer Service Capital projects 750,000 Water Service Water Capital-Dev Debt service
500,000 Water Service Water Capital-User Capital Projects

2. For presentation purposes, several funds were combined on the Summary of Fund Balances as follows:

Sewer Capital -
Sewer Capital-Enterprise
Sewer Capital-Developer
Water Construction -
Water Capital-Enterprise
Water Capital-Developer
*Community Sanitation Capital Fund is unbudgeted and as such, is not shown on the preceding schedule, but is fully disclosed in the City's Annual Financial Report. 26 178
AGENDA ITEM NO. 12.

SUMMARY REVENUES AND EXPENDITURES
The following summary schedule provides an excellent overview of the City's 2024-2025 revenues and expenditures. The schedule on the following page combines all the City's funds into one summary schedule while the “2024-2025 Budget Summary-By Fund” provides a summary of revenues and expenditures for each fund.

Care needs to be taken when attempting to draw conclusions from summary schedules, especially when comparing one budget year to prior years. Because of the up-and-down nature of capital project expenditures, the City's total budget can experience wide swings from year to year. An example of this may be a large street or sewer project that is budgeted in one budget year and may not exist in the next. This type of project may increase the budget by several million dollars in any one year.

The reader should also be aware that the majority of the City's revenue and expenditures are restricted to specific purposes and cannot be transferred from one fund to another. As was indicated in the City Manager's letter and further discussed in the Introduction Section, the General Fund is the only fund with discretionary revenues to pay for City services, such as police and fire. The other funds are restricted in their use, such as the Water Enterprise Fund, which can only be used to pay expenses related to water delivery.

Following the summary schedules is a detailed description of major revenue sources. We are providing historical trends, budgeting assumptions, and other information as appropriate.

The "2024-2025 Budget Summary-All Funds" includes all funding sources and expenditures for all Governmental and Proprietary Funds. A review of the revenue shows that “Charges for Current Services” is the largest revenue source followed by "Charges to Other Departments”. Included in "Charges for Current Services" are the charges for the City's Enterprise Funds (water, sewer, refuse, etc.). This revenue source makes up 33% of the total funding sources. The source "Charges to Other Departments" reflects interfund charges, or revenue derived, by the City's Internal Service Funds such as General Services, Employee Benefits, Fleet Services, and Liability and Property Insurance to other operating funds for services received from the Internal Service Funds. This funding source reflects 24% of the total. (Please read the note at the bottom of the “2024-2025 Budget Summary-All Funds” about the effect Internal Service Fund charges have on the City's revenues and expenditures.) Property Taxes, show an increase due primarily to expected countywide growth, improving property values from prior years, and the statutory Prop 13 increase of 2% or California CPI, whichever is less. The California CPI for 2024-2025 is 2%.

Property taxes account for 12% of the City’s revenue. The revenue source “Sales & Use Tax” which accounts for 9% of total revenue, is projected to decline due to inflationary pressures on consumer spending. The City anticipates modest growth will be experienced in budgeted years to follow.

Overall the City budget is lower when compared to the prior year. Capital outlays/improvements account for 15% of the total budgeted expenditures in 2024-2025 and are decreasing when compared to the 2023-2024 estimated budget amounts. The combined totals for all salaries and benefits, which account for 33% of the total expenditures, are showing a slight decrease from the previous year due to the net addition of only three positions compared to a larger increase in other expenditures. Reflected in the category “Administrative and Overhead,” which makes up 8% of the total, is the expenditure side of the interfund charges by the City’s Internal Service Funds. This expenditure reflects costs such as computer services, communications, energy, and office supplies. The expenditure category “Employee Related ISF Charges” which accounts for 11% of total expenditures is another interfund related expenditure account and reflects the internal transfer of a portion of employee benefits.

Again, the reader is requested to view each of these revenue and expenditure categories on a per fund and departmental basis along with looking at a "Total Summarized Picture." Each of the department presentations included in the Operational Section will provide further information about the programs and proposed expenditures for each department.
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AGENDA ITEM NO. 12.
2022-2023 2023-2024 2024-2025

ACTUAL ESTIMATED BUDGET

FUNDING SOURCES
Property Taxes 35,599,296 38,564,000 41,474,000
Sales & Use Tax 30,238,078 29,982,000 30,892,000
Other Taxes 11,906,883 13,470,000 14,081,000
Licenses and Permits 4,467,644 4,652,000 5,164,000
Fines 260,164 250,000 199,000
Use of Money & Property 16,197,950 4,648,400 3,815,200
From Other Agencies 39,224,827 47,788,300 51,708,800
Charges for Current Services 106,687,409 101,693,500 115,795,800 Other Revenues 2,193,372 965,900 672,000
Charges to Other Departments-ISF 66,668,582 73,619,900 83,280,300 Other Financing Sources 372,745 1,430,200 0
Total Revenues and Other
Financing Sources 313,816,950 317,064,200 347,082,100
Beginning Fund Balances 213,759,197 223,369,000 165,997,200 Total Available Resources 527,576,147 540,433,200 513,079,300

EXPENDITURES/EXPENSES
Salaries-Regular 57,234,385 59,404,800 65,717,100
Overtime 6,869,017 7,849,400 6,815,400
Extra Help 3,624,410 4,166,800 4,435,200
Benefits 33,924,594 36,973,300 42,057,200
Vehicle Charges 13,290,702 14,902,500 16,760,600
Energy 9,295,967 10,745,300 12,328,200
Communications 752,564 805,500 834,000
Professional Services 26,399,268 31,247,100 34,723,200
Repair and Maintenance 4,000,260 6,143,700 6,108,200
State Mandates 952,658 1,055,000 1,223,000
Special Events 81,233 85,400 112,000
Building and Equipment Rental 5,434 33,000 83,000
Office Supplies 685,220 795,000 848,100
Materials and Supplies 6,762,082 7,814,500 8,044,700
Travel and Meeting Expense 358,111 354,800 288,600
Training 630,583 848,400 996,500
Dues and Subscriptions 426,968 617,760 921,000
Administration and Overhead 26,045,600 29,093,100 32,221,000 Employee-Related ISF Charges 30,888,916 37,009,100 42,039,100 Liability Insurance Prog-ISF 5,448,572 6,159,100 8,026,900 Debt Service 14,212,015 14,510,000 13,888,000
Capital Outlays/Improvements 62,247,588 103,972,440 60,059,700 Total Expenditures/Expenses and Other Uses 304,136,147 374,586,000 358,530,700 Net Operating Transfers * (71,000) 150,000 150,000
Ending Fund Balances 223,369,000 165,997,200 154,698,600 2024-2025 BUDGET SUMMARY - ALL FUNDS
Included in the schedule below are items that are not considered revenue/expenses for financial reporting purposes. These items are:

Long-term Debt (COPs and loans; included in "Other Financing Sources") -- Reported as liabilities for financial reporting Principal payments on long-term debt (included in "Debt Service") -- Reported as a reduction to liabilities for financial reporting Capital additions (included in "Capital Outlays") -- Reported as fixed assets for financial reporting The numbers presented above include revenue and expenses for the City's Internal Service Funds. These funds act as cost allocation departments in that they accumulate the cost of goods and services and distribute these costs to the various other user departments. The user departments in turn record an expense/expenditure, and the Internal Service Fund records revenue. Therefore, a doubling effect occurs for those revenues and expenses/expenditures.

The Clovis Successor Agencies are Private Purpose Trust Funds and as such are reported separately and not included in Citywide totals. * Net transfers are the result of the transfer to the Refuse Disposal Fund from the Community Sanitation Fund, an unbudgeted fund. 28 180
AGENDA ITEM NO. 12.

Other Taxes

4.2%
Property Taxes

12.2%
Other Financing Sources

0.5%
Sales & Use Tax

9.5%
Licenses and Permits

1.5%
Other Revenues

0.3%
From Other Agencies

15.0%
Use of Money and
Property

1.5%
Charges for Current
Services

32.0%
Fines

0.1% Charges to Other
Departments-ISF

23.2%
2023-2024 ESTIMATED REVENUES
Other Taxes

4.1%
Property Taxes

11.9%
Other Financing Sources
Sales & Use Tax 0.1%

8.9%
Licenses and Permits

1.5%
Other Revenues

0.2%
From Other Agencies

14.9%
Use of Money
and Property

1.1%
Charges for Current
Services

33.2%
Fines

0.1%
Charges to Other
Departments-ISF

24.0%
2024-2025 BUDGET REVENUES
Expenditure charts are presented by fund later in this section and by department and function in the Operations section. 29 181
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