Coalinga City Council
October 16, 2025

Roofing Constructors Inc.,
dba Western Roofing Service
15002 Wicks Blvd, San Leandro, CA 94577
California CL# 180533, B, C39, C33,
NV0077470, Hawaii C14631, Guam 6132
DIR 1000000717

PROPOSAL

CONTINUED
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SECTION D. SPECIAL CONDITIONS AND QUALIFICATIONS:

1. Please read this entire proposal carefully. The foregoing is a limited estimate only based upon the information provided which does not account for a number of factors that could significantly impact this limited offer, including but not limited to an investigation of the site and conditions under which the work is to be performed revealing conditions neither disclosed or observed prior to the communication of this offer.

Any additional or different terms beyond what is set forth in this proposal/contract shall not be effective unless specifically accepted by Contractor in writing.

SECTION E. PROPOSAL.

Work hours shall be 7:00AM to 3:30PM, unless otherwise agreed to by both parties in writing.

Acceptance of this proposal the Customer acknowledges and accepts the Contractor's defined work scope including all clarification, qualifications and terms and conditions as contained herein.

If the Customer elected to engage a third party contract managers all fees associated with such services, incurred by Western Roofing Service, shall be added to this proposal via an additive change order.

Base Bid excludes all Permit Fees, Bond Fees and Warranty Fees unless specifically stated in the scope of work.

Customer to provide parking access for all construction vehicles and equipment during the duration of our work.

Customer to provide safe (OSHA approved) access and egress for the work.

Proposal is limited and based on conditions and qualifications described in Sections A, B, C, D, E and F. Additional charges will apply to changed or unforeseen working conditions.

Base Bid excludes all related TRADE- work such as demolition, removal of any form of hazardous waste, cleaning, final sweeping, carpentry, blocking, nailers, plumbing, sheet metal, architectural metal flashing, painting, structure weather protection, interior protection and all system field testing, unless specifically stated as included in above Section A, scope of work.

This Contract/Proposal or AIA Construction Contract A401 shall serves as the contract agreement between Customer and Western Roofing Service (Contractor). If a Customer's or General Contractor's proprietary subcontract agreement is used as a substitute to this proposal, all qualifications and Terms and Conditions (T&C) herein shall be included as an addendum or referenced to as an Exhibit to the substitute agreement. A substitute agreement to this proposal shall be subject to a Contract Review Fee.

Base Bid includes (1) uninterrupted crew mobilization. Additional mobilizations and unscheduled delay shall be subject to additional charges.

Base Bid excludes all interior protection and all temporary weather protection of substrates and building, unless specifically stated as included in above scope of work.

Base Bid excludes temporary protection of work unless specifically stated as included in the scope of work.

Base Bid excludes all related building code upgrades, unless specifically stated as included in the scope of work.

Printed 10/8/2025
Initial/Ack.

Roofing Constructors Inc.,
dba Western Roofing Service
15002 Wicks Blvd, San Leandro, CA 94577
California CL# 180533, B, C39, C33,
NV0077470, Hawaii C14631, Guam 6132
DIR 1000000717

PROPOSAL

CONTINUED
SECTION G. GENERAL TERMS and CONDITIONS
Nature of Work. Western Roofing Service (“Contractor”) shall furnish the labor and material to perform the work described herein or in Statement of Work/Scope of Work (SOW) in the referenced contract documents. Contractor does not provide engineering, consulting or architectural services. It is the Owner’s responsibility to retain a licensed architect or engineer to determine proper design and code compliance.

Contractor is not responsible for structural integrity and design, including compliance with codes. If plans, specifications or other design documents have been furnished to Contractor, Customer warrants that they are sufficient and conform to all applicable laws and building codes.

Contractor is not responsible for loss, damage or expense due to defects in plans or specifications or building code violations unless such damage results from a deviation by Contractor from the contract documents. Customer warrants all structures to be in sound condition capable of withstanding normal roofing construction equipment and operations. Contractor is not responsible for location of roof drains, adequacy of drainage or ponding on the roof.

1. Payment. Unless stated otherwise on the face of this proposal, Owner shall pay the contract price plus any additional charges for changed or extra work within ten (10) days of “Substantial Completion” of the Work. Substantial Completion will be defined by all Work, relative to the project’s applicable SOW, being completed by Contractor with only punch list items, as agreed between the parties, remaining and provided the manufacturer certifies the work for warranty coverage by the manufacturer. If completion of the Work extends beyond one month, Owner shall make monthly progress payments to Contractor by or before the fifth (5th) day of each month for the value of Work completed during the preceding month, plus the value of materials suitably stored for the project. All invoices are due and payable 15 days from invoice date. All sums not paid when due shall earn interest at the rate of 1-1/2% per month. Contractor shall be entitled to recover from Owner costs of collection, including attorney's fees, resulting from Owner's failure to make proper payment when due. In no case shall a paid-when-paid clause apply to or delay the timeliness of lump sum payment or progress payments stated herein. Retention applicable to monthly billing 0%.

2. Asbestos and Toxic Materials. This proposal and contract is based upon the work to be performed by Contractor not involving asbestoscontaining or toxic materials and that such materials will not be encountered or disturbed during the course of performing the roofing work.

Contractor is not responsible for expenses, claims or damages arising out of the presence, disturbance or removal of asbestos-containing or toxic material. In the event that such materials are encountered, Contractor shall be entitled to reasonable compensation for all additional expenses incurred as a result of the presence of asbestos-containing or toxic materials at the work site.

1. This Proposal is subject to revision or withdrawal by Contractor for any reason until communications of acceptance, and may be revised after communication of acceptance where an inadvertent error by Contractor has occurred. The Proposal expires thirty (30) days after the date stated above if not earlier accepted, revised or withdrawn. Any additional or different terms beyond what is set forth in this proposal/contract shall not be effective unless specifically accepted by Contractor by a signed document indicating Contractor's agreement to be bound thereto.

SECTION F. REQUIRED INFORMATION PER CONTRACTORS STATE LICENSE BOARD.

1. Contractors are required by law to be licensed and regulated by the Contractors' State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within 10 years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors' State License Board, P.O. Box 26000, Sacramento, CA 95826.

Printed 10/8/2025
Initial/Ack.

Roofing Constructors Inc.,
dba Western Roofing Service
15002 Wicks Blvd, San Leandro, CA 94577
California CL# 180533, B, C39, C33,
NV0077470, Hawaii C14631, Guam 6132
DIR 1000000717

PROPOSAL

CONTINUED

5. Changes in the Work and Extra Work. Customer shall be entitled to order changes in the Work and the total contact price adjusted accordingly. Any modification to the SOW to be installed by Contractor, not shown on the plans provided to Contractor prior to submittal of this proposal, shall be subject to an extra work change order. Any carpentry work required to replace rotten or missing wood or deteriorated decking shall be done on a labor and material basis as an extra unless specifically included in the Scope of Work section.

6. Availability of Site. Contractor shall be provided with direct access to the work site for the passage of trucks and materials and direct access to the roof. Contractor shall not be required to begin work until underlying areas are ready and acceptable to receive Contractor's work and sufficient areas of roof deck are available and free from dirt, snow, ice, water or debris to allow continuous full operation until job completion.

The expense of snow, ice, water or debris removal and any extra trips by Contractor to the job as a result of the job not being ready for roof application after Contractor has been notified to proceed will be charged as an extra.

7. Site Conditions. Contractor shall not be responsible for additional costs due to the existence of utilities, wet insulation, deteriorated deck or other subsurface or latent conditions that are not disclosed in writing to Contractor. The raising, disconnection or re-connection of any mechanical equipment on the roof that may be necessary for Contractor to perform the roofing work shall be performed by others or treated as an extra.

8. Price Volatility. Asphalt, steel products, isocyanate, and other roofing products, including cost of delivery are sometimes subject to unusual price volatility due to conditions that are beyond the control or anticipation of Contractor. If there is an increase in these or other products between the date of this proposal and the time when the work is to be performed, the amount of this proposal/contract may be increased to reflect the additional cost, contractor will provide written documentation and advance notice to Customer.

9. Fumes and Emissions. Owner and Contractor acknowledge that asphalt may be heated by Contractor, odors and emissions from other roofing products will be released and noise will be generated as part of the roofing operations to be performed by Contractor. Customer shall be responsible for interior air quality, including controlling mechanical equipment, HVAC units, intake vents, wall vents, windows, doors and other openings to prevent fumes and odors from entering the building. Customer is aware that roofing products emit fumes, vapors and odors during the application process. Customer shall hold Contractor harmless from claims from third parties relating to fumes and odors that are emitted during the normal roofing process.

3. Insurance. Contractor shall carry worker's compensation, automobile liability, commercial general liability and such other insurance as required by law. Contractor will furnish a Certificate of Insurance, evidencing the types and amounts of its coverages, upon request. Customer shall purchase and maintain builder's risk and property insurance, upon the full value of the entire Project, including the labor, material and equipment furnished by Contractor, covering fire, extended coverage, windstorm, vandalism and theft on the premises to protect against loss or damage to material and equipment and partially completed work until the job is completed and accepted and Contractor's equipment is removed from the premises.

4. Additional Insured. If Customer requires and Contractor agrees to name Customer or others as an additional insured on Contractor’s liability insurance policy, Customer and Contractor agree that the naming of Customer or other parties as an additional insured is intended to apply to claims made against the additional insured to the extent the claim is due to the negligence of Contractor and is not intended to make the Contractor's insurer liable for claims that are due to the fault of the additional insured. Contractor hereby elects to proceed under all applicable California Civil Code Sections, specifically §2782 (e.)(2) and/or §2782.05 (e.)(2), and further upon final resolution of any such Claim, Contractor shall be proportionally reimbursed for defense fees, and cost previously paid by Contactor. In no event shall indemnification by Contractor be greater than permitted by public policy and laws of the State of California.

Printed 10/8/2025
Initial/Ack.

Roofing Constructors Inc.,
dba Western Roofing Service
15002 Wicks Blvd, San Leandro, CA 94577
California CL# 180533, B, C39, C33,
NV0077470, Hawaii C14631, Guam 6132
DIR 1000000717

PROPOSAL

CONTINUED

11. Damages and Delays. Contractor will not be responsible for damage done to Contractor's work by others. Any repairing of the same by Contractor will be charged at regular scheduled rates over and above the amount of this proposal. Contractor shall not be responsible for loss, damage or delay caused by circumstances beyond its reasonable control, including but not limited to acts of God, weather, accidents, fire, vandalism, strikes, jurisdictional disputes, failure or delay of transportation, shortage of or inability to obtain materials, equipment or labor; changes in the work and delays caused by others. In the event of these occurrences, Contractor's time for performance under this proposal shall be extended for a time sufficient to permit completion of the Work.

12. Electrical Conduit. Contractor’s price is based upon there not being electrical conduit or other materials embedded within the roof assembly unless expressly identified on the face of this proposal. Customer will indemnify Contractor from any personal injury, damage, claim, loss or expense resulting from the presence of electrical conduit, shall render the conduit harmless so as to avoid injury to Contractor’s personnel, and shall compensate Contractor for additional time, labor and expense resulting from the presence of such materials.

13. Right to Stop Work. The failure of Customer to make proper payment to Contractor when due shall entitle Contractor, at its discretion, to suspend all work and shipments, including furnishing warranty, until full payment is made or terminate this contract. The contract sum to be paid Contractor shall be increased by the amount of Contractor's reasonable costs of shut-down, delay and start-up.

14. Interior Protection. Customer acknowledges that demolition, re-roofing and most general construction activities may cause disturbance, dust or debris to fall into the interior and possibly, if hot asphalt or pitch is used, dripping may occur depending upon deck conditions. Customer agrees to remove or protect property directly below the roof in order to minimize potential interior damage. Contractor shall not be responsible for disturbance, damage, clean-up or loss to interior property that Customer did not remove or protect prior to commencement of roofing operations.

Customer shall notify tenants of re-roofing and the need to provide protection underneath areas being re-roofed. Customer agrees to hold Contractor harmless from claims of tenants who were not so notified and did not provide protection.

15. Working Hours. This proposal is based upon the performance of all work during Contractor's regular working hours. Unless state otherwise in this SOW normal work hours are 7:00 AM to 3:30 PM. Extra charges will be made for overtime and all work performed other than during Contractor's regular working hours, if required by Customer.

16. Warranty. Contractor's work will be warranted by Contractor in accordance with its standard warranty, which is made a part of this proposal and contract and incorporated by reference. A copy of Contractor's standard warranty is attached or, if not, will be furnished upon request. Contractor SHALL NOT BE LIABLE FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES. The acceptance of this proposal by the Customer signifies his agreement that this warranty shall be and is the exclusive remedy against Contractor for all defects in workmanship furnished by Contractor. A manufacturer’s warranty shall be furnished to Customer if a manufacturer’s warranty is called for on the face of this proposal. It is expressly agreed that in the event of any defects in the materials furnished pursuant to this contract, Customer shall have recourse only against the manufacturer of such material.

10. Back Charges. No back charges or claims for payment of services rendered or materials and equipment furnished by Customer to Contractor shall be valid unless previously authorized in writing by Contractor and unless written notice is given to Contractor within ten (10) days of the event, act or omission which is the basis of the back charge.

Printed 10/8/2025
Initial/Ack.

Roofing Constructors Inc.,
dba Western Roofing Service
15002 Wicks Blvd, San Leandro, CA 94577
California CL# 180533, B, C39, C33,
NV0077470, Hawaii C14631, Guam 6132
DIR 1000000717

PROPOSAL

CONTINUED

23. Price Contingency. The price provided for the identified scope of work is contingent and based upon this Contract/Proposal or execution of a standard AIA construction contract document, such as AIA A401.

17. Indemnification. If Customer requires and Western agrees to make Customer or others additional insureds on Western's liability insurance policy, Customer and Western agree that the naming of Customer or others as additional insured is intended to apply to claims make against the additional insured to the extent the claim is due to the negligence of Western and is not intended to make Western's insurer liable for claims that are due to the fault of the additional insured. To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the customer, and all of their agents, officers, directors, and employees from and against all claims, damages, and losses directly caused by Contractor's work under this Contract provided that any such claim, damage, loss or expense is caused in whole or in part, and only to the extent from a negligent act or omission of Western Roofing Service or anyone for whose work Contractor is responsible under this contract. IN NO

EVENT SHALL SUCH LIABILITY INCLUDE INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE, UNMITIGATED, OR CONSEQUENTIAL DAMAGES.

18. Mold. Contractor and Customer are committed to acting promptly so that roof leaks are not a source of potential interior mold growth.

Customer will make periodic inspections for signs of water intrusion and act promptly; including notice to Contractor if Customer believes there are roof leaks, to correct the condition. Upon receiving notice, Contractor will make repairs promptly so that water entry through the roofing installed by Contractor is not a source of moisture. Contractor is not responsible for indoor air quality, mold, mildew or any alleged injury resulting therefrom. Owner shall hold harmless and indemnify Contractor from claims due to poor indoor air quality and resulting from a failure by Owner to maintain the interior of the building in a manner to avoid growth of mold.

19. Oil-Canning. Metal roofing and especially lengthy flat-span sheet-metal panels often will exhibit waviness, commonly referred to as “oilcanning.” The degree of oil-canning and the appearance of the panels will vary depending on factor such as the length and color of the panels, alloy, gauge, galvanizing process, substrate condition, and exposure to sunlight. Oil-canning pertains to aesthetics and not the performance of the panels and is not controlled by the roofing Contractor. The type of metal roofing panels specified can affect the degree of oil-canning.

Provided Contractor provides and uses metal roofing panels that are of equal dimensions, gauge and strength of the existing panels and panels that are to be replaced, Contractor is not responsible for oil-canning or aesthetics. Oil-canning shall not be grounds to withhold payment or reject panels of the type specified.

20. Wind Loads or Uplift Pressures. Contractor is responsible for the Work to be in compliance with applicable codes and regulations and to specify or show the Work that is to be performed. Contractor is not responsible for design of the actual roof materials or roof design, including calculation or verification of wind-load design, except to the extent such materials or roof design do not perform as anticipated because of negligent or improper installation by Contractor or Contractor’s subcontractors or agents. To the extent minimum wind loads or uplift pressures are required, Contractor’s bid is based solely on manufacturer’s printed test results. Contractor itself makes no representation regarding wind uplift capacity and assumes no liability for wind uplift except as explicitly stated in this Agreement.

21. Material References. Contractor is not responsible for the actual verification of Technical specifications of product manufacturers; i.e., R value or ASTM or UL compliance, but rather the materials used are represented as such by the material manufacturer.

22. Dispute Resolution - Arbitration. If a dispute shall arise between Contractor and Customer with respect to any matters or questions arising out of or relating to this Agreement or the breach thereof, such dispute shall be decided by arbitration administered by and in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association. This Agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. The award rendered by the arbitrators shall be final, and judgment may be entered upon it in any Court having jurisdiction thereof. Any legal claim against Contractor, including a claim alleging any breach of this contract or negligence by Contractor must be initiated no later than two (2) years after Contractor completed roof installation. Collection matters may be processed through litigation or arbitration at the discretion of the Contractor.

Printed 10/8/2025
Initial/Ack.

Roofing Constructors Inc.,
dba Western Roofing Service
15002 Wicks Blvd, San Leandro, CA 94577
California CL# 180533, B, C39, C33,
NV0077470, Hawaii C14631, Guam 6132
DIR 1000000717

PROPOSAL

CONTINUED
Duane Motogawa Title:
(510) 925-0821 Cell: Email:

Title: Date:

Off. Phone: 415-716-8365 [email protected]
Buyer's Acceptance: You are hereby authorized to procure materials, equipment, supplies and labor to proceed with work outlined herein. I agree to pay the amount stated and agree to the contract terms and conditions.

Name:

24. Latent Moisture. Western Roofing Service is not responsible for the effects of moisture mitigation originating within the roof deck or substrate, including concrete decks, or due to moisture vapor drive from within the building. Residual moisture within the roof deck, particularly structural concrete decks, can adversely affect the properties and performance of roofing materials, regardless of additives or concrete admixtures that may be included in the concrete mix. Western Roofing Service commencement of roof installation indicates only that we have visibly inspected the surface of the deck for visible defects prior to commencement of roofing and the surface of the deck appeared dry. The 28- day concrete curing period does not signify the deck is sufficiently dry. Western Roofing Service is not responsible to test or assess the moisture content of the deck or evaluate the likelihood of condensation from moisture drive from within the building.

25. Material Escalation/Delay: The parties acknowledge that some of the materials and products to be used and installed in the construction of this Project may become unavailable, delayed in shipment and/or subject to price increases due to circumstances beyond the control of the Contractor. If a specified product is unavailable or shipment is delayed, Contractor shall provide written notice to Contractor and shall be afforded additional time and substitute products may be considered. If there is an increase in price or delay of materials, equipment or products between the date of this Agreement and the time when the Project is ready for the installation of the affected material, the Contract Sum and/or the schedule shall be increased or adjusted to reflect the additional cost and time to obtain the materials, provided that the Subcontractor gives the Contractor written notice and documentation of the increased costs.

Submitted By: Project Mgr./Estimator
Printed 10/8/2025
Initial/Ack.

Roofing Constructors Inc.,
dba Western Roofing Service
15002 Wicks Blvd, San Leandro, CA 94577
California CL# 180533, B, C39, C33,
NV0077470, Hawaii C14631, Guam 6132
DIR 1000000717

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Authorize the City Manager to execute a Credit Card Service Agreement Between World Fuel Servies and the City of Coalinga
Meeting Date: Thursday, October 16, 2025
From: Sean Brewer, City Manager
Prepared by: Mercedes Garcia, Senior Administrative Analyst I. RECOMMENDATION:

Staff recommends the City Councilauthorize the City Manager execute an agreement between World Fuel Services and City of Coalinga for credit card services at the New Coalinga MunicipalAirport II. BACKGROUND:

The City purchased a TransFueler with an M4000 card processing system. In order to process credit card payments for point of sale at the terminala credit card processer is required. World Fuel provided fueland credit card processing for the airport previously. Approving the contract allows fuel to be available for purchase with the option of self-serve.

III. DISCUSSION:

World Fuel Services previously processed credit card sales for the New Coalinga MunicipalAirport and provided fuel.

Credit card processing enables the convivence of self -serve, increased fuel sales, and price increase or decrease for competitive pricing. The term of this agreement is three years. Prior to executing the agreement renewaladditional vendors will be contacted to obtain competitive pricing and ensure best value for services received.

IV. ALTERNATIVES:

Do not proceed with World Fuel Services for credit card processing.

V. FISCAL IMPACT:

General Fund revenue from fuel sales will support airport operations by increasing available funds. Credit card processing fees range from 2.35% - 3.5% depending on the card type and fees will be passed on to the customer. There will be no cost to the City.

ATTACHMENTS:

File Name Description
CityofCoalinga_General_Merchant_Services_Processing_Agreement_Revised.689ec93faec052.19569785_.pdf WorldFuel

AHT GENERAL PROCESSING MERCHANT AGREEMENT
This Card Processing Merchant Agreement made and entered into on this 16th day of October, 2025, ("Agreement") between City of Coalinga, a municipal company with its registered office at 155 West Durian Avenue Coalinga, CA, 93210 ("Merchant"), and AHT Services, LLC, a Nevada limited liability company with its registered office at The Corporation Trust Company of Nevada, 701 S. Carson Street, Suite 200, Carson City, NV 89701, United States ("AHT") entitles Merchant to accept and submit credit/debit card transactions and receive payment, on the terms and conditions set forth herein, at the Merchant locations listed in Schedule 1 ("Card Processing Services") for those credit/debit cards listed in Schedule 2 (hereinafter collectively referred to as the "Cards", and each individually, a "Card"). Your signature below constitutes acceptance of the terms and conditions of this Agreement as it exists and as it may be amended from time to time in accordance with the terms hereof.

1. Agreement
In performing their respective obligations under this Agreement, the parties agree to comply with all Applicable Law. For the purpose of this Agreement, "Applicable Law" means all federal, state and local statutes, ordinances, regulations and executive, administrative and judicial orders applicable to this Agreement and Payment Security Standards Council’s ("PCI") requirements.

2. Card Acceptance Procedures

2.1 Merchant agrees to follow and comply with any operating procedures, Card regulations or specific policies issued and as amended by the Card issuer or association for each Card listed in Schedule 2 (collectively referred to as "Operating Procedures"). Merchant agrees that it is solely responsible for monitoring and complying with all Operating Procedures.

2.2 All invoices submitted for processing must contain only those Card transactions for which a valid authorization from the Card issuer was obtained. Any disputes between the cardholder and the Merchant regarding an invoice remain the sole responsibility of the Merchant to address and resolve, before a final invoice can be submitted to AHT for processing.

2.3 Any amounts representing purchases not made in strict accordance with these terms or the Operating Procedures will be rejected by AHT, and if paid to Merchant and subsequently properly rejected by the cardholder, will be deducted from the next regular (or subsequent) payment due to Merchant or collected in another manner as AHT may determine. AHT may chargeback any Card transaction to a Merchant where the Merchant fails to provide requested supporting documentation within three (3) business days in the United States. If the Card association or issuer (e.g. American Express) determines there are excessive chargebacks at a location, Merchant will be solely responsible for any fees, charges or other amounts assessed by the Card association or issuer.

2.4 Merchant shall not receive any payments from cardholders with respect to charges made on Cards, and no cash advance shall be paid by the Merchant to the cardholder for any Card transaction. The Merchant will not submit to AHT any Card transactions that represent replacement for uncollected funds from other payment methods or that represent bad debt or potential bad debt with regard to the Merchant’s own receivable.

2.5 Merchant is solely responsible for the quality and accuracy of all data provided to AHT.

2.6 Invoices must include all details needed to define the products and services purchases and must include a signature or authorization by the cardholder as required by the Card issuer.

2.7 All invoices must be submitted to AHT within thirty (30) days of the Card transaction.

3. Gateway Use, Copyright and Grant of License

3.1 AHT has built and maintains highly confidential and proprietary point of sale software and web- based XML interfaces (the "Gateways") and Merchant desires to use the Gateways for Card Processing Services. Merchant and AHT will cooperate to facilitate any necessary upgrades or changes to the Gateways, provided that no upgrades or changes to the Gateways may be implemented or made without AHT’s consent in its sole discretion.

3.2 Subject to Merchant’s compliance with the terms and conditions of this Agreement, AHT grants to Merchant a limited, non-exclusive, non-transferable, and non-sublicensable license during the term of this Agreement to use the Gateways and any documentation provided by AHT related to processing requirements, system access or authorization (the "Documentation") exclusively for Card Processing Services with AHT. The Gateways and Documentation shall remain the property of AHT and no rights, including licenses, are granted with respect thereto other than as expressly set forth in this Section 3.

3.3 Merchant hereby acknowledges that AHT is the owners of all right, title and interest in the Gateways and Documentation and all intellectual property and proprietary rights therein, regardless of whether a copyright or other notice appears thereon or whether a registration thereof has been obtained with the appropriate government office. Merchant acknowledges the Gateways, Documentation and any other materials or information supplied by AHT under or in connection with this Agreement constitute the proprietary information of AHT and Merchant shall hold all such information in strict confidence, use such information solely to the extent necessary to perform its obligations under this Agreement, and in no way discuss, disclose or otherwise make available such information to any third parties, including AHT’s competitors.

4. IT, Data and Cardholder Information Security

4.1 Merchant must have proper security measures in place for the protection of cardholder data (including, without limitation, any personally identifiable information or other data that, alone orin combination with other data, can be used to identify a cardholder) and comply with Applicable Law. Merchant must comply with all applicable PCI requirements including, but not limited to, using a PA DSS certified POS/software, ensuring the secure storage and limited access to all records containing cardholder data. Merchant must not retain or store magnetic strip or PIN data after a transaction has been authorized. Merchant is responsible for demonstrating to AHT Merchant’s compliance with PCI programs and other Applicable Law. Merchants are required to notify AHT immediately of any incident that could potentially compromise cardholder data.

4.2 Merchant agrees to immediately notify AHT of any suspected, alleged or confirmed Compromised Data Event.

Merchant agrees that upon Merchant’s suspected or actual discovery of a Compromised Data Event, Merchant will not alter or destroy any related records. Merchant will share with AHT all information related to any actual or suspected Compromised Data Event, including, but not limited to, forensic reports and system audits; and allow AHT access to Merchant and its Merchant’s facilities and records for the purpose of performing any inspection, examination and/or copying of books pertaining to the affected transactions. AHT may share such information with others as permitted under Applicable Law. In the event of a suspected Compromised Data Event and/or violation of Applicable Law, Merchant must promptly take appropriate corrective action, subject to AHT’s approval. AHT shall be entitled to pass on to Merchant, and Merchant shall be solely responsible for paying, any costs, damages, fees and other liabilities related to any actual or potential loss, unauthorized disclosure, theft or compromise of cardholder data or card transaction information (each, a "Compromised Data Event"), including without limitation any costs, damages, fees and other liabilities that the Card associations or issuers or government authorities may assess against AHT, and/or the costs AHT incurs for its investigation of the Compromised Data Event, including those associated with examinations and inspections, except to the extent caused by AHT’s gross negligence or willful misconduct

4.3 The parties shall comply with the obligations set forth in the Data Protection Addendum (DPA) attached hereto.

5. Payment and Fees

5.1 Merchant agrees to the pricing and settlement terms set forth on Schedule 2.

5.2 Merchant and AHT shall enter into an Electronic Funds Transfer Authorization Agreement (annexed hereto as Schedule 3), the effectiveness shall coincide with the term of this Agreement and provide, among other things, that Merchant authorizes AHT, to initiate debit and/or credit entries with respect to a certain bank account of Merchant.

5.3 Merchant agrees to work with AHT and Card issuers to assist with marketing Card products to Merchant’s customers.

5.4 AHT will have the right to offset outstanding amounts owed to Merchant on the Merchant’s Cards accounts against any sums payable to the Merchant by AHT, or any affiliated companies including its or its parent company subsidiaries and parent company, under any contract, agreement or arrangement.

5.5 On or prior to the execution of this Agreement, Merchant shall complete and deliver to AHT a fully executed W-9 form (Request for Taxpayers Identification Number and Certification).

6. Subrogation
In recognition of the national and international nature of aviation and the necessity for legal certainty, predictability and convenience; upon reimbursement from AHT, Merchant irrevocably assigns to AHT all rights acquired by Merchant, including lien rights, such as mechanics liens, resulting from transactions for fuel, services and aircraft management for which Merchant has received payment or reimbursement, to allow AHT to pursue payment from the account holder.

7. Merchandise Responsibility, Warranties, Limitation of Liability

7.1 In no event shall AHT be liable to Merchant for any claims for loss of profits, loss of use, interruption of business, or indirect, special, incidental or consequential damages of any kind. Neither party shall be liable to the other for failure to perform this Agreement where such failure to perform is due to any natural disaster, fire, flood, storm, strike, terrorist event, act of war, labor unrest, acts of God, equipment or power interruption (when not due to the negligence of the non-performing party, its employees and contractors) interruptions in the telephone or Internet systems, failures in third party computer software or hardware or any cause beyond the nonperforming party’s reasonable control.

7.2 AHT makes no warranties or representations with respect to the Card Processing Services provided under this Agreement; however, AHT will use reasonable efforts to work with Merchant to resolve any issues that arise in connection herewith.

7.3 Merchant acknowledges that the cardholder is the purchaser of all products and services using a Card pursuant to this Agreement and neither AHT nor any of its affiliates takes title or risk on any product or service supplied.

Any dispute arising under or about such a purchase is a matter between the Merchant and the cardholder.

7.4 Without limiting any other warranties made hereunder, Merchant represents warrants and covenants with AHT and with the submission of each Card transaction reaffirms that:
(a) Each Card transaction is genuine and arises from a bona fide transactions, permissible under Applicable Law, by the cardholder directly with the Merchant for respective merchandise or services sold; and (b) With respect to each Card transaction, Merchant has no knowledge or notice of any fact, circumstance or defense which would indicate that such card transaction is fraudulent or not authorized by the related cardholder or which would otherwise impair the validity or collectability of that cardholder’s obligation arising from that Card transaction or relieve that cardholder from liability with respect hereto.

7.5 MERCHANT AGREES THAT NEITHER AHT, IT’S AFFILIATES, NOR ITS AND THEIR DIRECTORS, OFFICERS,

SUBCONTRACTORS, AGENTS AND EMPLOYEES SHALL BE LIABLE TO MERCHANT FOR ANY CLAIMS,

LIABILITIES OR EXPENSES RELATING TO THE CARD PROCESSING SERVICES PROVIDED HEREUNDER FOR

AN AGGREGATE AMOUNT IN EXCESS OF THE TOTAL FEES PAID BY MERCHANT TO AHT FOR SUCH SERVICES DURING THE IMMEDIATELY PRECEDING CONTRACT YEAR.

8. Term and Termination
The initial term of this Agreement shall commence on the date hereof and shall be in effect for three (3) years.

This Agreement shall automatically renew for successive one (1) year periods unless terminated on sixty (60) days’ prior written notice given by either party to the other, provided, that such termination shall not affect any customer transaction entered into prior to termination. In addition, this Agreement may be immediately terminated by AHT if Merchant breaches any term of this Agreement and fails to cure such breach within thirty (30) days following written notice by AHT. Sections 3.3, 4, 7, 8, 9 and 10 shall survive any termination of this Agreement. In addition, this Agreement shall automatically terminate, without any requirement for notice, upon any change in ownership of Merchant or all or substantially all of the Merchant’s business.

9. Indemnification
Merchant agrees to indemnify and hold harmless AHT, its officers, directors, employee, agents and insurers, from and against any and all losses, damages, costs and expenses (including, without limitation, any reasonable attorneys’ fees and court costs), liabilities, claims, settlements and judgments arising out (i) the negligence or misconduct of Merchant or its officers, directors, employees or agents, (ii) any breach of Applicable Law or (iii) any breach of or failure to comply with the terms of this Agreement by Merchant or its officers, directors, employees or agents.

10. Entire Agreement
This Agreement represents the entire agreement between the parties relating to this subject matter hereof and supersedes any inconsistent terms and conditions contained in any other agreement between the parties. This Agreement may be amended unilaterally from time to time by AHT upon notice given to the Merchant at least thirty (30) days prior to the effective date of the amendment, provided however that Merchant shall have the right to reject such amendment by terminating this Agreement, notwithstanding Section 8, prior to the effective date of such amendment. This Agreement may not be assigned by Merchant, by operation of law or otherwise, without the prior written consent of AHT. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. Each of the parties hereto agrees to the exclusive the exclusive jurisdiction and forum of the federal and/or local courts located in Miami-Dade County, FL. [Signature Page to Follow]
Executed this day of , 20 Accepted this day of , 20 .

City of Coalinga AHT Services, LLC
By: By:

Name: Name:

Title: Title:
25 Sean Brewer
City Manager

DATA PROTECTION ADDENDUM
This Data Protection Addendum (the "DPA") is intended to supplement the AHT General Processing Merchant ("Agreement") between AHT and Merchant. For purposes of this DPA, AHT and Merchant may be referred to individually as a "party" and collectively as the "parties. "In the event of a conflict between this DPA and the Agreement, the terms and conditions set forth in this DPA shall supersede and control with respect to such conflict. Any capitalized term that is used, but not otherwise defined, herein shall be ascribed the meaning set forth in the Agreement.

1. Definitions

1.1. California Privacy Law means the California Consumer Privacy Act of 2018 ("CCPA"), as amended by the California Privacy Rights Act of 2020 ("CPRA") and any other applicable amendments (codified at § Cal. Civ. Code 1798.100 et seq.), and includes any and all implementing regulations thereto.

1.2. Data Controller means an entity that determines the purposes and means of the Processing of Personal Data.

The term Data Controller shall also be ascribed the meaning of a "business" for purposes of California Privacy Law.

1.3. Data Processor means an entity that Processes Personal Data on behalf of a Data Controller. The term Data Processor shall also be ascribed the meaning of a "service provider" for purposes of California Privacy Law.

1.4. Data Protection Law means all laws, statutes, and regulations applicable to the Processing of End-User Personal Data under the Agreement, including (when applicable) California Privacy Law.

1.5. Data Subject means an identified or identifiable individual whose Personal Data is being Processed by AHT under the terms of this DPA.

1.6. Documented Instructions means the Processing terms and conditions set forth in the Agreement, this DPA, and any applicable and mutually agreed upon statement of work or similar work order issued thereunder describing Processing responsibilities.

1.7. End-User Personal Data means the Personal Data that AHT Processes on behalf of Merchant related to either (i) a natural person acting in an individual, consumer capacity, or (ii) a "consumer" (as the term "consumer" is so defined in California Privacy Law).

1.8. Personal Data means any information or data that, alone or in combination with other information or data, can be used to reasonably identify a particular individual, household, or device, and is subject to, or otherwise afforded protection under, an applicable Data Protection Law.

1.9. Process, Processing, or Processes means any action performed on End-User Personal Data, including collection, recording, organization, storage, adaptation or alteration, retrieval, consultation, use, disclosure, transfer or otherwise making available, alignment or combination, restriction, deletion, or destruction.

1.10. Security Event means any actual or reasonable degree of certainty of unauthorized access, use, loss, acquisition, exfiltration, or disclosure of unencrypted End-User Personal Data. A Security Event does not include an Unsuccessful Security Incident.

1.11. Services means the Card Processing Services and similar services described in the Agreement.

1.12. Third-Party Sub-Processor means any third-party organization engaged by AHT to Process End-User Personal Data on its behalf.

1.13. Unsuccessful Security Incident means an unsuccessful attempt or activity that does not compromise the security of End-User Personal Data, including (without limitation) pings and other broadcast attacks of firewalls or edge servers, port scans, unsuccessful log-on attempts, denial-of-service attacks, packet sniffing (or other unauthorized access to traffic data that does not result in access beyond headers) or similar incidents.

2. Scope and Applicability; California Privacy Disclaimers

2.1. The nature and scope of Processing of End-User Personal Data pursuant to this DPA is set forth in Annex I. For purposes of this DPA, (a) Merchant shall be considered an independent Data Controller, and (b) AHT shall be considered (i) a Data Processor when AHT Processes End-User Personal Data for and on behalf of Merchant for purposes of providing the Services, and (ii) an independent Data Controller when AHT determines the means and purposes of processing End-User Personal Data. In circumstances in which AHT is a Processor for purposes of this DPA, AHT shall Process End-User Personal Data only in accordance with the Documented Instructions, except to the extent otherwise required by law. In the event AHT is compelled by law to Process End-User Personal Data other than in accordance with the terms and conditions set forth in the Documented Instructions, AHT shall, when required by law, notify Merchant of that legal requirement prior to Processing, unless such notification is expressly prohibited by law. In circumstances in which AHT is a Controller, AHT shall comply with Section 6 of this Agreement.

2.2. Each party acknowledges and agrees that the disclosure of End-User Personal Data to the other does not constitute, and is not the intent of either party for such disclosure to constitute, a Sale or Sharing of End-User Personal Data, and if valuable consideration, monetary or otherwise, is being provided by either party, such valuable consideration, monetary or otherwise, is being provided for the rendering of Services and not for the disclosure of End-User Personal Data. In circumstances in which AHT is a Processor for purposes of this DPA, the following shall apply: (A) AHT hereby agrees that AHT (i) shall not collect, retain, use, or disclose End-User Personal Data for any purpose (including for any commercial purpose) other than for the specific purpose of performing the Services, unless otherwise required by law, (ii) shall not Sell or Share End-User Personal Data, except as necessary to satisfy its obligations under the Agreement, (iii) shall not collect, retain, use, or disclose End-User Personal Data outside the direct business relationship between AHT and Merchant, unless expressly permitted by law, (iv) shall not combine the End-User Personal Data that the AHT receives from, or on behalf of, Merchant with Personal Data that AHT receives from, or on behalf of, another party, or collects from its own interaction with a Data Subject, except to the extent reasonably necessary to provide the Services and as expressly permitted by law, and (v) shall, at Merchant’s reasonable request, cease any unauthorized Processing of End-User Personal Data and grant Merchant authorization to assess and remediate any such unauthorized Processing; (B) this DPA is AHT’s certification, to the extent the California Privacy Law or any other applicable Data Protection Law requires such a certification, that AHT understands and will comply with the Processing limitations with respect to End-User Personal Data that are set forth in the Documented Instructions; and (C) the parties agree that AHT shall Process End-User Personal Data only for the provision of the Services. For purposes of this Section 2.2 only, the terms "Sale" and "Sell" shall have the same meaning as set forth in California Privacy Law (Cal. Civ. Code § 1798.140). The limitations set forth in this Section 2.2 shall not be interpreted to prevent AHT from complying with an applicable law, statute, regulation, or binding order of a governmental or regulatory body.

3. Merchant Obligations

3.1. Merchant shall be responsible for complying with all requirements that apply to it under applicable Data Protection Law and the Documented Instructions it issues to AHT. Unless otherwise set forth herein, Merchant agrees that AHT is not responsible for the accuracy, quality, and legality of End-User Personal Data. Merchant shall provide Data Subjects with all necessary information (including by means of offering a transparent and easily accessible public privacy notice) and, where required by Data Protection Law, obtain all necessary consents, regarding AHT’s and Merchant’s Processing of End-User Personal Data for the purposes described in the Agreement, including this DPA.

3.2. Merchant is solely responsible for reviewing the Services, including any available security documentation and features, to determine whether they satisfy Merchant’s requirements, business needs, and legal obligations. For the avoidance of doubt, Merchant is responsible for its use of the Services, including making appropriate use of the Services to ensure a level of security appropriate to the risk with respect to End-User Personal Data, securing its account authentication credentials, protecting the security of End-User Personal Data when in transit to and from the Services, taking appropriate steps to securely encrypt and/or back up any End-User Personal Data uploaded to the Services, and properly configuring the Services and using available features and functionalities to maintain appropriate security in light of the nature of the End-User Personal Data. AHT has no obligation to protect End-User Personal Data that Merchant elects to transmit, store or transfer outside of the Services (e.g., offline or on-premises storage).

4. Data Processor Obligations

4.1. In circumstances in which AHT is a Processor for purposes of this DPA, the following shall apply:
(a) AHT shall at all times maintain the confidentiality of all End-User Personal Data and ensure that individuals who are authorized to Process End-User Personal Data have committed themselves to confidentiality or are under an appropriate statutory obligation of confidentiality; (b) AHT shall implement and maintain commercially reasonable technical and organizational security controls to protect and safeguard End-User Personal Data, which shall include written policies describing its security controls and measures and the relevant procedures and responsibilities of AHT personnel who have access to End-User Personal Data ("Information Security Program"). AHT shall designate a senior employee to be responsible for the overall management of AHT’s Information Security Program. AHT may update, amend, or otherwise alter its Information Security Program at any time, provided that any such update, amendment, or alteration does not increase the likelihood of a Security Event or cause the Information Security Program to not meet the minimum standards set forth herein; (c) AHT shall, to the extent legally permitted, promptly notify Merchant if AHT receives a request from (i) a government or regulatory authority regarding the Processing of, or seeking access to, End-User Personal Data ("Government Data Request") or (ii) a Data Subject seeking to exercise a data protection right or privilege, such as the right to access or deletion (a "Data Subject Request"), and AHT shall, to the extent practicable, seek to direct the requestor to Merchant. Taking into account the nature of the Processing, AHT shall assist Merchant by appropriate technical and organizational measures, insofar as this is possible, for the fulfilment of Merchant’s obligation to respond to a Government Data Request or a Data Subject Request. In addition, to the extent Merchant, in its use of the Services, does not have the ability to address the Government Data Request or the Data Subject Request, AHT shall, upon Merchant’s request, furnish commercially reasonable efforts to assist Merchant in responding to such requests, to the extent AHT is legally required to do so;
(d) Upon Merchant’s request, AHT shall provide Merchant with commercially reasonable cooperation and assistance (i) needed to fulfil Merchant’s obligation under applicable Data Protection Law to undertake a data protection impact assessment related to Merchant’s use of the Services, to the extent Merchant does not otherwise have access to the relevant information and to the extent such information is available to AHT and (ii) with respect to a consultation with a government or regulatory authority; (e) Upon request (but no more than annually), AHT shall provide to Merchant (on a confidential basis) a summary copy of (if available) any third-party audit report or certification applicable to the Services ("Report"), so that Merchant can verify AHT's compliance with this DPA. If Merchant reasonably believes that the Report provided is insufficient to demonstrate compliance with this DPA, AHT shall also provide written responses (on a confidential basis) to reasonable requests for information made by Merchant related to its Processing of End-User Personal Data, including responses to information security and audit questionnaires that are necessary to confirm AHT's compliance with this DPA; (f) On termination or expiration of the Agreement or this DPA, Merchant may wish to instruct AHT to delete or return all End-User Personal Data (including copies) from AHT's systems in accordance with applicable Data Protection Law. AHT will comply with this instruction as soon as reasonably practicable, where technically feasible, and AHT shall not be required to delete or return End-User Personal Data to the extent that AHT is required by applicable law or order of a governmental or regulatory body to retain some or all of the End-User Personal Data or such End-User Personal Data is required for AHT to enforce or defend its legal rights or interests. In addition, except to the extent required by applicable law, AHT shall not be required to delete or return End-User Personal Data archived on backup systems if AHT shall securely isolate it and protect it from any further Processing and such End-User Personal Data is deleted in accordance with AHT’s standard overwriting and deletion policies; and (g) AHT may engage Third-Party Sub-Processors to Process End-User Personal Data, provided AHT shall (i) ensure that each Third-Party Sub-Processor is subject to binding obligations that require the Third-Party Sub-Processors to protect End-User Personal Data to the same standard as AHT and (ii) remain responsible for each Third-Party Sub-Processor’s compliance with the obligations of this DPA and for any failure by the Third-Party Sub-Processor to fulfil its data protection obligations.

4.2. Merchant acknowledges that AHT may be required under applicable Data Protection Law to: (i) collect and maintain records of certain information, including the name and contact details of each Data Controller on behalf of which AHT is acting and, where applicable, of such Data Controller's local representative and data protection officer and (ii) make such information available to a government or regulatory authority. Accordingly, to the extent such Data Protection Law applies to the Processing of End-User Personal Data, Merchant will, where required by law, provide such information to AHT, and will ensure that all information provided is kept accurate.

5. Security Event Procedures

5.1. AHT shall establish, implement, and maintain a written incident response plan ("IRP") to identify, remediate, respond to, and recover from an actual or a reasonably suspected Security Event. AHT shall undertake IRPrelated exercises no less than annually.

5.2. In circumstances in which AHT is a Processor for purposes of this DPA, AHT shall, upon confirming a Security Event and where legally required, comply with the following: (i) taking into account the nature of Processing of End-User Personal Data and the information available to AHT, promptly (and in accordance with the timeframes set forth in applicable Data Protection Law) notify Merchant of a Security Event when it discovers the same, (ii) provide timely information to Merchant relating to the Security Event as it becomes known or as is reasonably requested by Merchant, and (iii) promptly take reasonable steps to contain, investigate, and mitigate any Security Event, and AHT may (in AHT’s sole and reasonable judgment) retain an independent data incident response consultant to contain, investigate, and remediate the Security Event on its behalf.

5.3. For purposes of Section 5.2 of this DPA, AHT will cooperate with Merchant as reasonably requested by Merchant in responding to Merchant’s regulators or customers with respect to a Security Event. Notwithstanding the foregoing, Merchant acknowledges and agrees (i) Merchant shall be solely responsible for notifying or disclosing a Security Event to any applicable government agency, individual, or entity, (ii) Merchant may not name AHT in consumer or regulatory notifications or press releases without AHT’s consent (except as required by law), and (iii) Merchant shall coordinate with AHT on developing the content of any public statements or any required notices for the affected Data Subjects and/or notices to the relevant supervisory authorities related to the Security Event if AHT’s name will be identified in such notices. Nothing in this DPA shall be interpreted to prevent AHT from complying with its own data incident notification requirements.

5.4. Any notification, assistance, or cooperation provided by AHT in accordance with this Section 5 shall not be interpreted or construed as an admission of liability, wrongdoing, or fault by AHT. To the extent AHT is responsible for the Security Event, AHT shall be liable for the costs to investigate and respond to the Security Event in accordance with the terms of the Agreement.

6. AHT Data Controller Obligations
In circumstances in which AHT is a Processor for purposes of this DPA, AHT shall comply with the requirements of the Data Protection Laws applicable to Controllers in respect of the Processing of End-User Personal Data under this DPA (including without limitation, by implementing and maintaining at all times all appropriate security measures in relation to the Processing of End-User Personal Data) and shall not knowingly do anything or permit anything to be done with respect to the End-User Personal Data that likely would lead to a breach by Merchant of applicable Data Protection Laws. AHT shall, where required by Data Protection Law, only transfer End-User Personal Data to third parties who execute written agreements that contain terms for the protection of End-User Personal Data which are no less protective than the terms set out in this Addendum.

7. Miscellaneous

7.1. The parties to this DPA hereby submit to the choice of jurisdiction stipulated in the Agreement with respect to any disputes or claims howsoever arising under this DPA, including disputes regarding its existence, validity or termination or the consequences of its nullity, and this DPA and all non-contractual or other obligations arising out of or in connection with it are governed by the laws of the country or territory stipulated for this purpose in the Agreement.

7.2. Should any provision of this DPA be invalid or unenforceable, then the remainder of this DPA shall remain valid and in force. The invalid or unenforceable provision shall be amended as necessary to ensure its validity and enforceability, while preserving the parties’ intentions as closely as possible or, if such amendment is not possible, the invalid or unenforceable provision shall be construed in a manner as if it had never been contained therein.

7.3. In the event of changes to applicable Data Protection Law, including, but not limited to, the amendment, revision, or introduction of new laws, statutes, regulations, or other legally binding requirements to which either party is subject, the parties agree to reassess the terms of this DPA, and negotiate any appropriate or necessary updates thereto in good faith, including the addition, amendment, or replacement of any provision therein. In the event the parties cannot agree to such amendments or changes to this DPA, each party shall have the right, upon written notice to the other, to terminate this Agreement.
* * *
Annex I (Data Processing Activities)
Data Controller Merchant AHT
Data Processor AHT N/A
Purpose of
Processing
• Provision of Services to
Merchant by AHT.
• Determine and utilize third parties (banks and
payment method providers).
• Monitor the Services to prevent and detect
fraudulent transactions and other fraudulent
activity, and to prevent and mitigate financial
loss, security risks, and other harm.
• Implement, processes to provide products and
other services, including relationship
management, billing and invoicing.
• Comply with laws, statutes, regulations, and
government requests, including (where
applicable) anti-money laundering screening and
KYC obligations.
• Enhance AHT products and services.

Categories of
Data Subjects
• Individuals, including certain
Merchant employees,
contractors, and personnel,
who use the Services.
• Individuals, including certain Merchant
employees, contractors, and personnel, who use
the Services.
• Individuals, including certain Merchant
employees, contractors, and personnel, who have
a professional business relationship with AHT.

Types of
Personal Data
In certain circumstances, the following End-User Personal Data may be relevant to the Services: names; contact information (telephone and/or email address); financial data (e.g., payment account details, bank account details); billing and shipping addresses; order description (including date, time, amount, product or service description); device identifier; tax ID/status, unique customer identifier, identity information including government issued documents (e.g., national IDs, driver’s licenses and passports).

Nature of
Processing
To provide human resources benefits Services to Customer employees. The Processing may include the following actions with respect to Personal Data: collection, recording, organization, storage, retrieval, use, disclosure, transfer, deletion, or destruction * * *
SCHEDULE 1
Locations
Merchant Name Airport or Address ICAO IATA
City of Coalinga New Coalinga Municipal Airport C80
EXHIBIT 1
EFT FORM (One per bank Account)

EFT AUTHORIZATION FOR ELECTRONIC FUNDS TRANSFER
[Name of Merchant] authorizes World Fuel Services, Inc. to collect and deposit funds into the bank account indicated below by means of Electronic Funds Transfer for payment of goods and services processed through the World Fuel Gateway for the following location(s):
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ ____________________________________
It will also allow access for adjustments (debit transactions) in the event of billing errors or chargebacks. Disputes regarding deposits (credits) should be made within fifteen (15) days of issuance of the account statement.

Disputes regarding charges (debits) should be made within forty-five (45) days after the account was charged.

Until notification in writing of cancellation or modification, this authorization will continue to be valid.

Receiving Bank City Transit/ABA # ___________________________________ Merchant Name _______________________________________________ Merchant Address: _______________________________________________ State ________________________________
Branch ________________________________
Acct # ________________________________
City ________________________________
Zip __________________
Please send a copy of voided check with your signed agreement along with a current W-9. 27500 Phelps Avenue Coalinga, CA 93210

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Review and Discussion of a Draft Ordinance that would Amend Chapter 1 of Title 6 of the Coalinga Municipal Code Relating to Animal Control, Fines, Cruelty, Licensing, and Pet Responsibility
Meeting Date: Thursday, October 16, 2025
From: Sean Brewer, City Manager
Prepared by: Sean Brewer, City Manager
I. RECOMMENDATION:

Staff recommends that the City Councilreview and discuss a draft ordinance amending Chapter 1 of Title 6 of the Coalinga Municipal Code relating to Animal Control, and provide direction to staff regarding any desired revisions prior to the ordinance being scheduled for formal introduction and first reading at a future meeting.

II. BACKGROUND:

The City of Coalinga’s existing animalcontrol regulations are outdated and do not reflect the City’s evolving needs for effective enforcement, responsible pet ownership, and protection of animal welfare. The City continues to face recurring issues including loose animals, unlicensed and unvaccinated pets, illegal breeding operations, and cases of animal neglect and cruelty. The City recognizes the importance of enforcing regulations related animalcontroland are prepared to increase its efforts to do so now that the City's administration is solidified and moving out of a phase of transition with its top management.

To address these challenges, staff has prepared a comprehensive draft ordinance to strengthen the City’s enforcement authority, clarify the responsibilities of animal owners, and promote humane treatment and care of animals within the community.

The updated ordinance also aligns the City’s code with current State law and modern standards of animal controland care.

III. DISCUSSION:

Summary of Draft Ordinance Revisions
The draft ordinance proposes several substantialamendments to Chapter 6-1 (Animals and Fowl) of the Coalinga Municipal Code. Major updates include:

1. Expanded Duties andAuthority of Animal Control Officers Clarifies that Animal Control Officers and Peace Officers share enforcement responsibilities under this chapter.

Grants authority to impound loose, neglected, or dangerous animals; investigate reports of vicious dogs; and seize animals posing an immediate threat.

Establishes penalties for interfering with Animal Control operations.

2. Dog Licensing, Rabies Vaccination, and Microchipping Requirements Requires proof of current rabies vaccination and mandates microchipping of all dogs licensed within the City.

Provides exemptions for guide, signal, and service dogs, and dogs owned by public entities.

Adds procedures for vaccination deferrals for animals with verified medicalconditions.

Establishes uniform recordkeeping and license tag requirements to aid in owner identification and animal recovery.

3. Inhumane Treatment andAnimal Cruelty Regulations
Expands the definition of cruelty to include emotional mistreatment, abandonment, confinement in unsanitary conditions, and exposure to extreme temperatures.

Prohibits overburdening animals with chains or weights, participation in animal fighting, and the killing of birds or destruction of nests in violation of state law.

Requires owners to provide adequate food, water, shelter, and care, and to maintain sanitary conditions for allanimals.

Makes violations of these provisions infractions, allowing for enforcement through administrative fines.

4. Pet ResponsibilityAct Updates
Establishes escalating fines for pet owners whose animals are repeatedly found at large:

First Violation: Written warning.

Second Violation: $500 administrative citation.

Third or Subsequent Violation: $1,000 administrative citation.

Authorizes the City to require spaying/neutering and microchipping after repeated violations.

Clarifies that enforcement costs, impound fees, and veterinary expenses are recoverable by the City.

Establishes an appeal process for citations or orders to the City Manager.

Public Outreach and Enforcement
The City is preparing to increase its enforcement of these provisions to ensure community compliance. The City’s new Public Outreach Coordinator will soon be working on developing and launching a public education campaign highlighting:

The responsibilities of pet ownership and consequences for allowing animals to run at large; Enforcement against illegal breeding and inhumane treatment; and The importance of spaying/neutering, microchipping, and licensing pets.

Through this dualapproach, education and enforcement, the City aims to reduce the number of stray and neglected animals, improve public safety, and promote humane care throughout the community as it prepares to expand its animalcontrolefforts in the City’s new facility on 6 th
and Polk Street.

As part of these efforts, the City is continuing to develop its operational plan for the new Animal Control Facility, including protocols for animalcare, investigations, impoundment, adoption procedures, and interagency coordination. This plan will guide staffing needs, training, and resource allocation to ensure that animal control services are delivered effectively and humanely.

IV. ALTERNATIVES:

Do not update the draft Ordinance.

V. FISCAL IMPACT:

There is no fiscal impact idenified at this time by the actions recommended in this report.

ATTACHMENTS:

File Name Description
Draft_Ordinance_-_Fines-Cruelty-Licensing-Pet_Responsibility.pdf Draft Ordinance - Fines-Cruelty-Licensing-Pet Responsibility ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COALINGA AMENDING CHAPTER 1 OF TITLE 6 OF THE COALINGA MUNICIPAL CODE

RELATING TO ANIMALS AND FOWL
The City Council of the City of Coalinga does ordain as follows:

SECTION 1. Amendment of Peace officers and Animal Control Officers. Section 6-1.02. of the Coalinga Municipal Code is amended to read as follows (text to be added in underlined, text to be deleted is in strikeout):

Sec. 6-1.02. Peace officers and Animal Control Officers. (a) Duties. It shall be the duty of all Peace Officers to cooperate with and assist the Animal Control Officers in the enforcement of the provisions of this chapter, and such Peace Officers and Animal Control Officers shall be empowered to:
(1) Impoundment. Receive, take up and impound:
(i) Any animal found running at large on any highway, street, sidewalk, lane, alley or other public place or upon any private property in violation of this chapter or of any law of the State of California;
(ii) Any animal which, without provocation or direction, is molesting any person; (iii)Any animal which, without provocation or direction, is molesting or harassing animals, birds, or pets upon the premises of any person;
(iv)Any animal which the officer has reasonable grounds to believe that very prompt action is required to protect the health or safety of the animal and others. (b)(2) Animal care. Regularly and adequately feed, water and otherwise care for all dogs, cats and other animals impounded under the provisions of this ordinance, or to provide for such feeding, watering and care. The Animal Control Officer may also take charge of any animal, including dog or cat, that by reason of lameness, sickness, feebleness, or neglect, is unfit for the labor it is performing, or that in any other manner is being cruelly or inhumanely treated, and provide care and treatment for the animal, until it is deemed to be in a suitable condition to be returned to the owner. The cost of caring for and treating any animal seized under this chapter shall constitute a lien on the animal and the animal shall not be returned to its owner until the charges are paid. (3) Investigations. Investigate the condition and behavior of any animal which he or she has reason to believe is vicious, dangerous or fierce.Whenever the Animal Control Officer observes or receives a report of a dog suspected of being potentially dangerous or vicious, the Animal Control Officer or designee shall investigate the circumstances and if the officer finds that the animal shows a propensity to attack, bite, scratch, annoy or harass people or other animals without provocation, or displays any other such behavior, the officer shall:

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1. Notify the owner in writing, stating the facts and circumstances,

2. The Animal Control Officer may order that the animal be kept within an Enclosure or otherwise secured as set forth in this Chapter; and/or

3. Make a petition to the superior Court or order an administrative hearing to determine if the dog is Potentially Dangerous or Vicious. (c) Seizure pending hearing, If the Animal Control Officer has probable cause to believe a dog may be designated as Potentially Dangerous or Vicious under this chapter, and the owner is unwilling or unable to properly contain and/or control the dog immediately or the dog constitutes an immediate threat to the safety of persons or domestic animals, the animal may be seized pending the outcome of a hearing or trial and any appeals conducted pursuant to this chapter and/or the period of time the owner requires to comply with any requirements imposed for the return of the clog. (d) (5) Animal destruction. Humanely destroy or give emergency care to sick or injured animals including dogs and cats.
(b) Interference. Any person who knowingly and intentionally interferes with an Animal Control Officer while said officer is performing his duties as an Animal Control Officer shall be guilty of Section 148 of the California Penal Code.
(e)(c) Other Duties as assigned by the City Manager or Police Chief or their designee.

SECTION 2. Amendment of Peace officers and Animal Control Officers. Section 6-1.05. of the Coalinga Municipal Code is amended to read as follows: (text to be added in underlined, text to be deleted is in strikeout):

Sec. 6-1.05. Procedures for issuance of dog license.

The City shall issue a license for a dog located in the City upon satisfaction of the following conditions:
(a) Application. The owner of the dog to be licensed completes an application prepared by the City.
(b) Fee. The owner of the dog to be licensed pays the fee required for a license, which fee shall be set by resolution of the City Council. No fee shall be required for:
(1) Guide, signal or service dogs. Guide dogs, signal dogs or service dogs if such dogs are in the possession and under the control of, in the case of a guide dog, a blind person, or in the case of signal dog, a deaf or hearing-impaired person, or service dogs for the physically disabled.
(2) Public entity dogs. Any dog owned by a public entity.

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(c) Rabies vaccination. Satisfactory proof is provided that the dog has been effectively vaccinated for rabies.
(1) Vaccination records. Each veterinarian after vaccinating any dog shall sign a certificate of vaccination in duplicate in the form required by the Police Chief. The veterinarian shall keep one (1) copy and shall give one (1) copy to the owner of the vaccinated dog and the owner shall retain such copy in his possession.
(2) Vaccination exception. In the event that a dog has a short-term illness, is pregnant or suffers from a long-term debilitating illness which in the opinion of a veterinarian contraindicates vaccination for rabies, such dog shall not be required to undergo vaccination during the period of such illness or pregnancy where a request for vaccination deferral has been approved by the Animal Control Officer and the Police Chief. Such request shall specify the duration of the requested deferral, and shall be signed by a veterinarian. The Animal Control Officer shall issue a license for such dog upon approval of the request for vaccination deferral and payment for the application license fee determined by resolution of the City Council. The owner or person having custody of such dog shall confine and shall keep such dog confined, for the duration of the deferral. Within fourteen (14) days after the expiration of the deferral, the owner or person having custody of such dog shall present the Animal Control Officer or the Police Chief's designee a certificate of vaccination in accordance with the provisions of this section. (2)(d) Microchip identification technology. The owner, keeper or caretaker shall, at his or her own expense, have a microchip embedded between the shoulders of the animal. The embedded chip number shall be recorded on the license.
(d)(e) Certificate and tag. Upon issuing a license, the City shall give to the owner of the licensed dog a certificate and tag evidencing issuance of the license and showing for reference the number of the license. A license shall be valid for the period determined by the City Police Department and indicated on the license certificate. The Police Department may upon request of the owner or custodian of such dog backdate such license so that its expiration date occurs concurrently with or prior to the expiration date of the vaccination; provided however, that where such backdating is performed, there shall be no reduction or discount of the license fee applicable to the license applied for, and such license shall be renewed within thirty (30) days after its expiration.
(1) Information. The certificate shall contain, at a minimum, the following information:
(i) The name, address and telephone number of the dog's Owner; (ii) a description of the dog, including breed, color, age, name and sex; (iii) whether or not the dog is exempt from spaying or neutering; (iv) microchip information, including serial number and monitoring company; (v) date of immunization;
(vi) type of rabies vaccine administered;
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(vii) name of the manufacturer; and
(viii) lot number of the vaccine used.

SECTION 33. Amendment of Inhumane Treatment and Cruelty to Animals. Section 6-1.30. of the Coalinga Municipal Code is amended to read as follows (text to be added in underlined, text to be deleted is in strikeout):

Sec. 6-1.30. Inhumane Treatment and Cruelty to Animals. (a) Physical and emotional abuse. It is unlawful to: (1) willfully or maliciously kill, maim, disfigure, torture, beat, mutilate, burn, scald, overdrive, physically or emotionally mistreat or otherwise treat cruelly any animal; to (2) burden the animal with heavy chains or leashes, padlocks or weights around any part of the body of the animal; to (3) engage in sexual acts with any animal; or to (43) expose the animal to extreme temperatures. (a) Care and maintenance. It shall be the duty of any person to provide any animal in his charge or custody, as owner or otherwise, with adequate food, drink, shade, care, and weatherproof shelter.
(b) Offensive Condition. Shall not keep upon any premises, any animals, including any fowls or household pets in a foul, offensive, obnoxious, filthy or unsanitary condition. (b)(c) Spaces. Shall not keep or maintain any live animal in a cage, coop, hutch, pen, yard or space which is less than three (3) times as large in floor space as the total size of all live animals which may be kept therein, and which is not of sufficient height to permit each animal to stand in a natural erect position.
(c)(d) Animals in vehicles. It shall be unlawful to carry or confine any animal in or upon any vehicle in a cruel or inhumane manner, including but not limited to carrying or confining such animal without adequate ventilation or for an unusual length of time. (d)(e) Abandonment of animals. It shall be unlawful for any person to abandon any animal within the City. “Abandonment” includes neglect, whether intentional or otherwise, whereby an animal becomes a stray.
(e)(f) Animal poisoning. Except as otherwise provided herein for the destruction of animals, it shall be unlawful to make accessible to any animal, with intent to cause harm or death, any substance which has in any manner been treated or prepared with any harmful or poisonous substance. This provision shall not be interpreted so as to prohibit the use of poisonous substances for the control of vermin in furtherance of the public health when applied in such a manner as to reasonably prohibit access to other animals. (f)(g) Injury to animals by motorists.

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(1) Aid. Every operator of a vehicle upon the streets of the jurisdiction shall immediately upon injuring, striking, maiming or running down any domestic animal give such aid as can reasonably be rendered. In the absence of the owner, he shall immediately notify the City Police Department, furnishing requested facts relative to such injury. (2) Remaining at scene. It shall be the duty of such operator to remain at or near the scene until such time as the appropriate authorities arrive, and upon the arrival of such authorities, the operator shall immediately identify himself to such authorities. Alternatively, in the absence of the owner, a person may give aid by taking the animal to the animal control facility or other appropriate facility and notifying the City Police Department. Such animal may be taken in by the animal control facility and dealt with as deemed appropriate under the circumstances.
(3) Emergency vehicles. Emergency vehicles are exempted from the requirements of this provision.
(4) Violation. Violation of this section is an infraction. Each such act or repetition thereof shall constitute a separate violation.
(h) Animals for fighting. It shall be unlawful to raise, train, keep or use any animal, fowl or bird for the purpose of fighting or baiting; and for any person to be a party to or be present as a spectator at any such fighting or baiting of any animal or fowl; to knowingly rent any building, shed, room, yard, ground or premises for any such purposes as aforesaid, or to knowingly suffer or permit the use of his buildings, sheds, rooms, yards, grounds, or premises for the purposes aforesaid.
(i) Killing of birds. It shall be unlawful to kill any bird(s), or to rob or destroy any nest, egg or young of any bird in violation of the laws of the State of California. (j) Malicious impounding. It shall be unlawful for anyone not authorized by the City to hide or impound the animal of another.

SECTION 4. Portions of Section 6-1.30. of the Coalinga Municipal Code are hereby deleted as follows:

SECTION 4. Amendment of Pet Responsibilities Act. Section 6-1.42. of the Coalinga Municipal Code is amended to read as follows: (text to be added in underlined, text to be deleted is in strikeout):

The Council of the City of Coalinga finds and declares that a contributing cause of the serious dog overpopulation problem within the City of Coalinga is the number of unaltered dogs found at large.

The Council wishes to promote responsible pet ownership as a means for promoting the public health, safety, and welfare of humans and pets in the City of Coalinga. The Council finds and declares that mandatory spaying or neutering of dogs is appropriate when dog owners fail to act responsibly to prevent their animals from being at large. (a) Title. This Section shall be known as the "Pet Responsibility Act." (b) Applicability. This Section shall apply to all persons whose dogs are found to be at large in violation of Sec 6-1.23 & Sec. 6-1.24 of this Code and any requirements imposed by this Section shall be cumulative to any requirements or penalties otherwise imposed by this Code. (c) Definitions. The following terms used in this section shall be defined as follows:
(1) "At large" shall mean an animal in or upon any public street, public alley or other public place or in or upon an unenclosed lot or premises, unless the animal is securely confined to the lot or premises by a suitably strong leash or is securely and continuously held by the owner or custodian of such animal by a strong leash suitable for maintaining control of the animal, or the animal is confined within an automobile. (2) "Owner" shall mean the owner or custodian of any animal. (d) Enforcement. This section shall be enforced, in addition to any criminal prosecution, as follows:
(1) Upon a first violation of Section 6-1.23 and Section 6-1.24any provision of this chapter the owner shall be issued a written warning prior to the issuance of a citation or initiation of further enforcement action.
(2) Upon a second violation of Section 6-1.23 and Section 6-1.24 any provision of this chapter an owner shall be issued an administrative citation with a penalty in the amount of one five hundred dollars ($1500.00);
(3) Upon a third or subsequent violation of Section 6-1.23 and Section 6-1.any provision of this chapter24 an owner shall be issued an administrative citation in the amount of two hundred one thousand dollars ($21,000.00).
(4) Upon a third or subsequent violation of Section 6-1.23 and Section 6-1.24 an owner shall be issued an order to comply with one (1) or both of the following requirements:
(i) Spay or neuter all dogs possessed by that person and provide proof of compliance to the Animal Control Officer within sixty (60) days;
(ii) Implant a microchip identification device in all dogs possessed by that person. (e) Responsibility for enforcement. The Animal Control Officer shall be responsible for enforcement and administration of this section.
(f) Cost recovery. The City may collect abatement, actual, administrative and enforcement costs, as well as penalties and administrative expenses pursuant to the provisions of Chapter 1, Article 5 of this Code.
(g) Appeals. Any person receiving an administrative citation, order to spay/neuter an animal, or order to microchip an animal may appeal the issuance of the administrative citation or order to the Chief of Police City Manager within thirty (30) days of the citation or order.

SECTION 5. Severability. If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portions of this Ordinance, and the City Council hereby declares that it would have passed the remainder of this Ordinance, as if such invalid portion thereof had been deleted.

SECTION 6. This ordinance shall take effect thirty (30) days after its passage.

SECTION 7. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance and to cause the same to be published once in a newspaper of general circulation, published in the County of Fresno.

The foregoing ordinance was introduced by the City Council of the City of Coalinga, California, at a regular meeting held on this ____ day of ____, 2025, and was passed and adopted by the City Council on this ____ day of ____, 2025, by the following vote:

AYES:

NOES:

ABSENT: APPROVED:
______________________________
Mayor
ATTEST:
___________________________
City Council Clerk

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Direction to Staff Regarding Micro-Enterprise Home Kitchen Operations (MEHKOs)
Meeting Date: Thursday, October 16, 2025
From: Sean Brewer, City Manager
Prepared by: Sean Brewer, City Manager
I. RECOMMENDATION:

It is recommended that the City Council provide direction to staff regarding whether the City of Coalinga would be supportive of Micro-Enterprise Home Kitchen Operations (MEHKOs). Staff does not recommend supporting MEHKOs due to enforcement challenges and potential safety concerns.

II. BACKGROUND:

In 2019, the California Retail Food Code (CRFC) was amended to allow local jurisdictions to authorize Micro-Enterprise Home Kitchen Operations (MEHKOs) within their counties. MEHKOs are a new category of home-based food businesses that allow residents to prepare and sell meals directly from their private residences.

In Fresno County, the Department of Public Health is currently surveying stakeholders, including cities, to gauge support or opposition. If the Fresno County Board of Supervisors authorizes MEHKOs, allcities within the County would be required to participate. Therefore, staff is bringing this before the City Council to establish a community position on this issue to provide to the County of Public Health.

The County has highlighted severalconcerns observed in other jurisdictions that have approved MEHKOs:

Nuisance complaints (noise, traffic, trash, odor).

Unfair competition concerns from established restaurants and mobile food vendors.

Difficulty enforcing meal limits and sales caps.

Burden on localcode enforcement and Environmental Health staff.

III. DISCUSSION:

While MEHKOs could provide economic opportunities for residents and expand food choices, there are significant concerns:

Enforcement Limitations
Inspections must be pre-arranged and cannot be unannounced, making it difficult to ensure compliance with safety and sanitation standards.

Public Safety Concerns
Exemptions from many standard food facility requirements (ventilation, multiple sinks, grading systems, etc.) may increase the risk of foodborne illness.

Neighborhood Impacts
Operating a commercial food business from a residence could generate increased vehicle traffic, odors, and waste, potentially creating conflicts with surrounding neighbors.

Equity and Fairness
Traditional restaurants and food trucks are subject to more stringent permitting, inspections, and compliance costs. Allowing MEHKOs could place them at a disadvantage.

The Fresno County Department of Public Health has requested stakeholder feedback via survey at:
www.surveymonkey.com/r/MEHKOS. Survey results will be compiled and presented to the Fresno County Board of Supervisors later this year.

IV. ALTERNATIVES:

The Councilcould choose to:

Support MEHKOs – Direct staff to indicate support for MEHKOs in the County survey.

Oppose MEHKOs – Direct staff to indicate opposition and convey concerns to the County. (Staf Recommendation)
Take No Position – Defer to the County’s Board of Supervisors without submitting input.

V. FISCAL IMPACT:

If MEHKOs are authorized County-wide, the City may see increased workload for code enforcement related to nuisance issues (parking, traffic, signage, waste complaints). No direct revenue benefit is anticipated for the City.

ATTACHMENTS:

File Name Description
2025_MEHKO_survey_letter.docx 2025 MEHKOsurvey letter
MEHKO_laws_-_attachment.docx MEHKOlaws - attachment
County of Fresno

DEPARTMENT OF PUBLIC HEALTH
Environmental Health Division
Promotion, preservation and protection of the community’s health 1221 Fulton Street /P. O. Box 11867, Fresno, CA 93775
(559) 600-3357 • FAX (559) 455-4646
The County of Fresno is an Equal Employment Opportunity Employer www.fresnocountyca.gov • www.fcdph.org
April 21, 2025
City Managers and stakeholders throughout Fresno County Re: Micro-Enterprise Home Kitchen Operations (MEHKO) in Fresno County California Retail Food Code (CRFC) was amended late 2019 to allow local jurisdictions the option to permit a new type of home-based retail food business called a MicroEnterprise Home Kitchen Operation. Each county has the option to allow or not allow MEHKOs in their jurisdiction. The County of Fresno’s Board of Supervisors would need to vote to allow this new type of operation in our county. If the County of Fresno chooses to allow this new program, the cities within our county would be required to participate. This letter is being sent to the various cities and stakeholders within the County of Fresno to gauge interest or opposition to MEHKOs.

The full text of the MEHKO law is attached at the end of this notice.

Summarized below are some important details of MEHKOs:

Micro-Enterprise Home Kitchen Operations (MEHKOs):
 Allow full food preparation and sales from private residences  Are limited to 30 meals per day and 90 meals per week  Are limited to no more than $100,000 in gross annual sales  Must be notified, and agree to a date and time, before a routine inspection can be conducted once per year
 Must be notified, and agree to a date and time, before a complaint inspection can be conducted
 Are limited to family and household members, and no more than one full-time equivalent employee
 Can only sell to the consumer, not to any wholesaler or other retailer  Does not include catering or cottage food operations
 Cannot be prohibited by zoning requirements including fees or other restrictions in any residential dwelling as long as signage or outdoor displays do not advertise the MEHKO and the operation complies with local noise ordinances
 Are exempt from numerous provisions of California Retail Food Code that apply to other food facilities including permanent restaurants and mobiles 2  Are allowed to conduct dine-in, take-out, or food delivery sales  Are not allowed to use 3rd party food delivery services, except in cases of a customer’s physical or mental disability that would limit their ability to access the MEHKO  Cannot sell or serve raw oysters, raw milk or raw milk products  Cannot manufacture ice cream or other dairy products
 Cannot serve alcohol or food which contains alcohol without a license from the California Department of Alcoholic Beverage Control (ABC) program
 Must meet certain requirements to advertise and conduct transactions on-line Fresno County Environmental Health Division would be responsible for permitting and inspecting these new operations, but there will likely be impacts to your cities, neighborhoods, and constituents. Environmental Health is researching this new program and has contacted other county jurisdictions in California that have already approved MEHKOs. Summarized below are some concerns/issues that have arisen:
 Nuisance noise, traffic, trash, and odor complaints from neighboring residents  Concerns from permanent and mobile food facility operators about inequitable requirements resulting in unfair competition
 Difficulty enforcing operating requirements when inspections must be announced and scheduled
 Difficulty enforcing meals per day, meals per week, and gross annual sales limitations  Currently only 18 of 58 health jurisdictions in California have approved and implemented MEHKOs
 Possible increased workload for Environmental Health staff  Possible increased workload for city code enforcement staff At this time, there is no specific date for a Board of Supervisor’s agenda item about this subject. Fresno County Environmental Health is gathering opinions and positions from the stakeholders within County of Fresno regarding MEHKOs. Your input will be collected and eventually shared back to the stakeholders for further comment and discussion, before our office reports the findings to the Board of Supervisors. Thank you for considering the adoption or continued exclusion of Micro-Enterprise Home Kitchen Operations within our county.

Please respond to the following online survey with your comments, questions, and/or positions about MEHKOs: www.surveymonkey.com/r/MEHKOS You can also reach out to Matthew Gore, Supervising Environmental Health Specialist at [email protected], by phone at 559-600-3357, or by mail at the following address:

Attn: Matt Gore
Fresno County Env Health Div
P.O. Box 11867
Fresno, CA 93775-1867
The following code citations are from California Retail Food Code (CRFC). 113825.
(a) “Microenterprise home kitchen operation” means a food facility that is operated by a resident in a private home where food is stored, handled, and prepared for, and may be served to, consumers, and that meets all of the following requirements:
(1) The operation has no more than one full-time equivalent food employee, not including a family member or household member. (2) Food is prepared, cooked, and served on the same day. (3) Food is consumed onsite at the microenterprise home kitchen operation or offsite if the food is picked up by the consumer or delivered within a safe time period based on holding equipment capacity. (4) Food preparation does not involve processes that require a HACCP plan, as specified in Section 114419, or the production, service, or sale of raw milk or raw milk products, as defined in Section 11380 of Title 17 of the California Code of Regulations. (5) The service and sale of raw oysters is prohibited.
(6) The production, manufacturing, processing, freezing, or packaging of milk or milk products, including, but not limited to, cheese, ice cream, yogurt, sour cream, and butter, is prohibited.
(7) Food preparation is limited to no more than 30 individual meals per day, or the approximate equivalent of meal components when sold separately, and no more than 90 individual meals, or the approximate equivalent of meal components when sold separately, per week. The local enforcement agency may decrease the limit of the number of individual meals prepared based on food preparation capacity of the operation, but shall not, in any case, increase the limit of the number of individual meals prepared. (8) The operation has no more than one hundred thousand dollars ($100,000) in verifiable gross annual sales, as adjusted annually for inflation based on the California Consumer Price Index. (9) The operation only sells food directly to consumers and not to any wholesaler or retailer. For purposes of this paragraph, the sale of food prepared in a microenterprise home kitchen operation through the internet website or mobile application of an internet food service intermediary, as defined in Section 114367.6, is a direct sale to consumers. An operation that sells food through the internet website or mobile application of an internet food service intermediary shall consent to the disclosures specified in paragraphs (6) and (7) of subdivision (a) of Section 114367.6.
(b) “Microenterprise home kitchen operation” does not include either of the following:
(1) A catering operation.
(2) A cottage food operation, as defined in Section 113758. (c) For purposes of this section, “resident of a private home” means an individual who resides in the private home when not elsewhere for labor or other special or temporary purpose.
(d) For purposes of this section, “meal” means the amount or quantity of food that is intended to be consumed by one customer in one sitting.

A meal may include one or more of any of the following:
(1) A main dish.
(2) Appetizers.
(3) Side dishes.
(4) Beverages.
(5) Baked goods.
(6) Desserts.

CHAPTER 11.6. Microenterprise Home Kitchen Operation [114367 - 114367.6] 114367.

The governing body of a city, county, or city and county that is designated as the enforcement agency, as defined in Section 113773, may authorize, by ordinance or resolution, within its jurisdiction the permitting of microenterprise home kitchen operations in accordance with this chapter. If a governing body of a city, county, or city and county authorizes the permitting of microenterprise home kitchen operations, the authorization shall apply to all areas within its jurisdiction, including being applicable to all cities within a county that authorizes microenterprise home kitchen operations, regardless of whether each city located within the jurisdiction of the county separately authorizes them.
114367.1.
(a) A microenterprise home kitchen operation, as defined in Section 113825, shall be considered a restricted food service facility for purposes of, and subject to all applicable requirements of, Chapter 1 (commencing with Section 113700) to Chapter 9 (commencing with Section 114265), inclusive, and Chapter 13 (commencing with Section 114380), except as otherwise provided in this chapter. (b) A microenterprise home kitchen operation shall be exempt from all of the following provisions:
(1) Handwashing facilities requirements, as required in Section 113953, provided that a handwashing sink is supplied with warm water and located in the toilet room and supplied, as specified in Section 113953.2. (2) Any provision in this part relating to sinks, warewashing machines, and manual or machine sanitation, including, but not limited to, Sections 114099, 114099.2, 114099.4, 114101.1, 114101.2, 114103, 114107, 114123, 114125, 114163, and 114279, provided that all of the following conditions are met:
(A) Utensils and equipment are able to be properly cleaned and sanitized. (B) The sink in a microenterprise home kitchen operation has hot and cold water and is fully operable. (C) If a dishwasher is used, it shall be operated in accordance with the manufacturer’s specifications. (3) Prohibition on the presence of persons unnecessary to the food facility operation in the food preparation, food storage, or warewashing areas, as specified in Section 113945.1, provided that the permitholder takes steps to avoid any potential contamination to food, clean equipment, utensils, and unwrapped single-service and single-use articles and prevents a person suffering from symptoms associated with acute gastrointestinal illness or person known to be infected with a communicable disease that is transmissible through food to enter the food preparation area while food is being prepared as part of a microenterprise home kitchen operation. (4) No smoking sign posting requirements, as specified in Section 113978. (5) Limitations on employee consumption of food, drink, or tobacco outside of designated areas, as specified in Sections 113977 and 114256, provided that the permitholder takes steps to avoid any potential contamination to food, clean equipment, utensils, and unwrapped single-service and single-use articles and prevents a person suffering from symptoms associated with acute gastrointestinal illness or person known to be infected with a communicable disease that is transmissible through food to enter the food preparation area while food is being prepared as part of a microenterprise home kitchen operation. (6) Limitations on consumer access to the food facility through food preparation areas, as specified in Section 113984.1, provided that the permitholder takes steps to avoid any potential contamination to food, clean equipment, utensils, and unwrapped single-service and singleuse articles and prevents a person suffering from symptoms associated with acute gastrointestinal illness or person known to be infected with a communicable disease that is transmissible through food to enter the food preparation area while food is being prepared as part of a microenterprise home kitchen operation.
(7) Display guard, cover, and container requirements, as specified in Section 114060, provided that any food on display that is not protected from the direct line of a consumer’s mouth by an effective means is not served or sold to any subsequent consumer. (8) Requirements to provide clean drinking cups and tableware for second portions and beverage refills, as specified in Section 114075. (9) Requirements pertaining to the characteristics and certification of utensils and equipment, as specified in Sections 114130 and 114139, provided that utensils and equipment are designed to retain their characteristic qualities under normal use conditions. (10) Requirements pertaining to the characteristics, construction, and multiuse of food-contact and nonfood-contact surfaces, as specified in Sections 114130.3 and 114130.4, provided that food contact surfaces are smooth, easily cleanable, and in good repair. (11) Requirements pertaining to the characteristics, construction, and disassembly of clean in place (CIP) equipment, as specified in Section 114130.5.
(12) Limitations on the use of wood as a food contact surface and in connection with other equipment, as specified in Section 114132, provided that hard maple or equivalent wood is approved for use in direct contact with food during preparation. (13) Any provision in this part relating to ventilation, including, but not limited to, Article 2 (commencing with Section 114149) of Chapter 6, provided that gases, odors, steam, heat, grease, vapors, and smoke are able to escape from the kitchen. (14) Requirements that cold or hot holding equipment used for potentially hazardous food be equipped with integral or permanently affixed temperature measuring device or product mimicking sensors, as specified in subdivision (c) of Section 114157. (15) Requirements pertaining to the installation of fixed, floor-mounted, and table-mounted equipment, as specified in Section 114169. (16) Dedicated laundry facility requirements, as specified in Section 114185.5, provided that linens used in connection with the microenterprise home kitchen operation shall be laundered separately from the household and other laundry. (17) Requirements pertaining to water, plumbing, drainage, and waste, as specified in Sections 114193, 114193.1, and 114245.7. (18) Any requirement that a microenterprise home kitchen operation have more than one toilet facility or that access to the toilet facility not require passage through the food preparation, food storage, or utensil washing areas, including, but not limited to, the requirements specified in Sections 114250 and 114276.
(19) Light intensity, light source, and lightbulb requirements, as specified in Sections 114252 and 114252.1, provided that food preparation areas are well lighted by natural or artificial light whenever food is being prepared. (20) Requirements to provide and use lockers, storage facilities, and designated dressing areas, and that food facility premises be free of litter and items that are unnecessary to the operation, as specified in Sections 114256.1 and 114257.1, provided that personal effects and clothing not ordinarily found in a home kitchen are placed or stored away from food preparation areas and dressing takes place outside of the kitchen.
(21) Limitations on the presence and handling of animals, such as domestic, service, or patrol animals, as specified in Sections 114259.4 and 114259.5, provided that all animals are kept outside of the kitchen during food service and preparation. (22) Requirements pertaining to floor, wall, and ceiling surfaces, as specified in Sections 114268, 114269, and 114271, provided that the floor, wall, and ceiling surfaces of the kitchen, storage, and toilet areas are smooth, of durable construction, and easily cleanable with no limitations on the use of wood, tile, and other nonfiber floor surfaces ordinarily used in residential settings. (23) Any local evaluation or grading system for food facilities, as authorized by Section 113709. (24) All prohibitions and limitations on the use of a kitchen in a private home as a food facility, including, but not limited to, prohibitions and limitations specified in Section 114285, provided that food is not prepared in designated sleeping quarters. Open kitchens adjacent to living and sleeping areas, kitchens in efficiency, studio, and loft-style residences, and kitchens without doors at all points of ingress and egress may be used in microenterprise home kitchen operations. (25) Planning and permitting provisions of Sections 114380 and 114381.2. (c) A microenterprise home kitchen operation may operate an open-air barbecue or outdoor wood-burning oven, pursuant to the requirements of Section 114143.
(d) The operator of a microenterprise home kitchen operation shall successfully pass an approved and accredited food safety certification examination, as specified in Section 113947.1.
(e) Any individual, other than the operator, who is involved in the preparation, storage, or service of food in a microenterprise home kitchen operation shall be subject to the food handler card requirements specified in Section 113948. (f) A microenterprise home kitchen operation shall only offer for sale or sell food that was prepared during a food demonstration or preparation event to a consumer who was present at that food demonstration or preparation event. 114367.2.
(a) A microenterprise home kitchen operation shall not be open for business unless it has obtained a permit issued from the enforcement agency.
(b) The department shall post on its internet website the requirements for the permitting of a microenterprise home kitchen operation, pursuant to this chapter and any ordinance, resolution, or rules adopted by any city, county, or city and county, that has authorized the permitting of microenterprise home kitchen operations, which shall be written at a high school level. (c) The applicant shall submit to the enforcement agency written standard operating procedures that include all of the following information:
(1) All food types or products that will be handled.
(2) The proposed procedures and methods of food preparation and handling. (3) Procedures, methods, and schedules for cleaning utensils, equipment, and for the disposal of refuse. (4) How food will be maintained at the required holding temperatures, as specified in Section 113996, pending pickup by consumer or during delivery.
(5) Days and times that the home kitchen may potentially be utilized as a microenterprise home kitchen operation. The stated days and times are not binding on the permitholder and shall be used for information purposes only. (d) (1) The enforcement agency shall issue a permit after an initial inspection has determined that the proposed microenterprise home kitchen operation and its method of operation comply with the requirements of this chapter. (2) An enforcement agency shall not require a microenterprise home kitchen operation to comply with food safety requirements that are different from, or in addition to, the requirements of this chapter. (e) For purposes of permitting, the permitted area includes the home kitchen, onsite consumer eating area, food storage, utensils and equipment, toilet room, janitorial or cleaning facilities, and refuse storage area. Food operations shall not be conducted outside of the permitted areas.
(f) An enforcement agency may require a microenterprise home kitchen operation to renew its permit annually. (g) A permit, once issued, is nontransferable. A permit shall be valid only for the person and location specified by that permit, and, unless suspended or revoked for cause, for the time period indicated. (h) The permit, or an accurate copy thereof, shall be retained by the operator onsite and displayed at all times the microenterprise home kitchen operation is in operation.
(i) An enforcement agency may collect a fee for the issuance of a permit pursuant to this chapter in an amount that does not exceed the reasonable administrative costs by the enforcement agency in issuing the permit. 114367.3.
(a) Notwithstanding any other law, a microenterprise home kitchen operation shall only be subject to the three following types of inspections by the enforcement agency:
(1) A routine inspection for the purpose of allowing the enforcement agency to observe the permitholder engage in the usual activities of a microenterprise home kitchen operation, including, but not limited to, active food preparation. The enforcement agency shall provide notice to a permitholder before a routine inspection and shall conduct the routine inspection at a mutually agreeable date and time. A microenterprise home kitchen operation shall not be subject to more than one routine inspection within 12 months. This paragraph shall not be deemed to require the enforcement agency to conduct a routine inspection. (2) An investigation inspection for the purpose of allowing the enforcement agency to perform an inspection when the enforcement agency has just cause that adulterated or otherwise unsafe food has been produced or served by the microenterprise home kitchen operation or that the permitholder has otherwise violated this part. One or more consumer complaints may constitute just cause for an investigation inspection. The enforcement agency shall provide notice to a permitholder before an investigation inspection and shall conduct the investigation inspection at a mutually agreeable date and time. (3) An emergency inspection for the purpose of allowing the enforcement agency to perform a limited inspection when the enforcement agency has just cause that the microenterprise home kitchen operation poses a serious hazard or immediate threat to public health. To the extent that notice of an emergency inspection is reasonable under the circumstances, the enforcement agency shall provide notice to a permitholder before an emergency inspection. The scope of emergency inspection shall be limited in duration and scope to address the facts giving just cause that the microenterprise home kitchen operation poses a serious hazard or immediate threat to public health. (b) The enforcement agency shall only inspect the permitted area of the microenterprise home kitchen operation for the purpose of enforcing or administering this part.
(c) The enforcement agency may seek recovery from a microenterprise home kitchen operation of an amount that does not exceed the enforcement agency’s reasonable costs of inspecting the microenterprise home kitchen operation for compliance with this part if the microenterprise home kitchen operation is found to be in violation of this part. 114367.4.
(a) (1) A city, county, or city and county shall not prohibit the operation of, require a permit to operate, require a rezone of the property for, or levy any fees on, or impose any other restriction on, a microenterprise home kitchen operation in any residential dwelling for zoning purposes.

A microenterprise home kitchen operation shall be a permitted use of residential property in any residential dwelling for zoning purposes if the microenterprise home kitchen operation complies with both of the following criteria:
(A) Abstain from posting signage or other outdoor displays advertising the microenterprise home kitchen operation. (B) Be in compliance with applicable local noise ordinances. (2) This subdivision does not supersede or otherwise limit the investigative and enforcement authority of the city, county, or city and county with respect to violations of its nuisance ordinances.
(b) The use of a residence for the purposes of a microenterprise home kitchen operation shall not constitute a change of occupancy for purposes of the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13), or for purposes of local building and fire codes. (c) A microenterprise home kitchen operation shall be considered a residence for the purposes of the State Uniform Building Standards Code and local building and fire codes.
114367.5.
(a) A person delivering food on behalf of a microenterprise home kitchen operation with a permit issued pursuant to Section 114367.2 shall be an employee of the microenterprise home kitchen operation or a family member or household member of the permitholder. (b) (1) Except as provided in paragraph (2), food produced in a microenterprise home kitchen operation shall not be delivered by a third-party delivery service.
(2) (A) Food produced in a microenterprise home kitchen operation may be delivered by a third-party delivery service to an individual who has a physical or mental condition that is a disability which limits the individual’s ability to access the food without the assistance of a thirdparty delivery service. (B) A microenterprise home kitchen operation or an internet food service intermediary that offers or facilitates food delivery pursuant to subparagraph (A) shall do all of the following:
(i) Record and maintain a record of the number and dates of food deliveries made pursuant to subparagraph (A). A microenterprise home kitchen operation shall make the record available to an enforcement agency pursuant to any inspection authorized pursuant to Section 114367.3. An internet food service intermediary shall make the record available to an enforcement agency upon request.
(ii) Clearly and conspicuously post on its internet website or mobile application alongside any mention of third-party delivery options a notice that a third-party delivery service is prohibited from delivering food except to an individual who has a physical or mental condition that is a disability which limits the individual’s ability to access the food without the assistance of a thirdparty delivery service. (C) Food delivery by a third-party delivery service pursuant to subparagraph (A) does not apply to dine-in meals sold for consumption on the premises of a microenterprise home kitchen or to cooking classes or demonstrations. 114367.6.
(a) An internet food service intermediary that lists or promotes a microenterprise home kitchen operation on its internet website or mobile application shall meet all of the following requirements:
(1) Be registered with the department. A registration, once issued, is nontransferable. A registration shall be valid only for the person and type of business specified by that registration, and unless suspended or revoked for cause by the department. (2) Prior to the listing or publication of a microenterprise home kitchen operation’s offer of food for sale, clearly and conspicuously post on its internet website or mobile application the requirements for the permitting of a microenterprise home kitchen specified in this chapter, which shall be written at the high school level and be provided by the department. (3) Clearly and conspicuously post on its internet website or mobile application the fees associated with using its platform and fees associated with third-party delivery service pursuant to paragraph (2) of subdivision (b) of Section 114367.5 in a manner that allows both the consumer and the microenterprise home kitchen operation to see and understand the amount being charged for the services provided by the internet food service intermediary. The internet food service intermediary shall notify the microenterprise home kitchen operation of any changes to these fees exceeding a 2-percent increase in writing and no later than one month before the changes take effect. (4) Clearly and conspicuously post on its internet website or mobile application whether or not it has liability insurance that would cover any incidence arising from the sale or consumption of food listed or promoted on its internet website or mobile application. (5) Provide a dedicated field on its platform for a microenterprise home kitchen operation to post the permit number and the name of the enforcement agency that issued the permit.
(6) Clearly and conspicuously post on its internet website or mobile application how a consumer can contact the internet food service intermediary through its internet website or mobile application if the consumer has a food safety or hygiene complaint and a link to the department’s internet website that contains information for how to file a complaint with the enforcement agency. (7) Submit the name and permit number of a microenterprise home kitchen operation to the enforcement agency that issued the permit to the microenterprise home kitchen operation if the internet food service intermediary receives, through its internet website or mobile application, three or more unrelated individual food safety or hygiene complaints in a calendar year from consumers that have made a purchase through its internet website or mobile application. The internet food service intermediary shall submit this information to the enforcement agency within two weeks of the third complaint received. (8) If it is notified by the enforcement agency of significant food safety related complaints from a verified consumer that has made a purchase through its internet website or mobile application, submit to the enforcement agency the name and permit number of the microenterprise home kitchen operation where the food was purchased, and a list of consumers who purchased food on the same day from that microenterprise home kitchen operation through its internet website or mobile application. (9) Prior to the listing or publication of a microenterprise home kitchen operation’s offer of food for sale, obtain consent from the microenterprise home kitchen operation to make the disclosures to government entities required pursuant to this section. (10) Shall not permit the use of the word “catering” or any variation of that word in a listing or publication of a microenterprise home kitchen operation’s offer of food for sale.
(11) Shall not use, or knowingly facilitate the use of, a third-party delivery service for food produced by the microenterprise home kitchen operation, except as authorized pursuant to paragraph (2) of subdivision (b) of Section 114367.5. (b) For purposes of this chapter, an “internet food service intermediary” means an entity that provides a platform on its internet website or mobile application through which a microenterprise home kitchen operation may choose to offer food for sale and from which the internet food service intermediary derives revenues, including, but not limited to, revenues from advertising and fees for services offered to a microenterprise home kitchen operation. Services offered by an internet food service intermediary to a microenterprise home kitchen operation may include, but are not limited to, allowing a microenterprise home kitchen operation to advertise its food for sale and providing a means for potential consumers to arrange payment for the food, whether the consumer pays directly to the microenterprise home kitchen operation or to the internet food service intermediary. Merely publishing an advertisement for the microenterprise home kitchen operation or food cooked therein does not make the publisher an internet food service intermediary. (c) (1) A microenterprise home kitchen operation that advertises to the public, including, but not limited to, advertising by website, internet, social media platform, newspaper, newsletter, or other public announcement, shall include all of the following within the advertisement:
(A) Name of the enforcement agency that issued the permit. (B) Permit number.
(C) Statement that the food prepared is “Made in a Home Kitchen” in a clear and conspicuous font and location within a written advertisement and an audible and comprehensible manner in a verbal advertisement. (2) A microenterprise home kitchen operation shall not use the word “catering” or any variation of that word in an advertisement relating to the microenterprise home kitchen operation’s offer of food for sale.

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Discussion, Direction and PotentialAction Regarding Revisions to the City Council Code of Conduct, Councilmember Rights and Duties, Procedures for Filling Vacancies, and City Treasurer Responsibilities
Meeting Date: Thursday, October 16, 2025
From: Sean Brewer, City Manager
Prepared by: Sean Brewer, City Manager
I. RECOMMENDATION:

It is recommended that the City Council review the proposed updates to the City Council Code of Conduct and related governance documents, including:

Councilmember rights and responsibilities;
Treasurer rights and responsibilities;
CouncilAppointments;
Appointment Process for Council Committees and Commissions; Incorporation of best practices aligned with Robert’s Rules of Order and the Brown Act; and Orders of Items; Taking Action on Items,
Direction on Treasurer Pay.

Council is being asked to provide direction on the proposed amendments to allow final revisions to be prepared for formal adoption at a future meeting.

II. BACKGROUND:

At the August 15, 2024 meeting, the City Council discussed revising the Code of Conduct to establish a standardized process for filling Council vacancies and various other items as listed in the recommendation section.

All updates have been incorporated into the draft Code of Conduct, procedures, and associated attachments (ordinance revisions) for Council review.

III. DISCUSSION:

Council Appointments
The proposed revisions formalize the procedure for filling vacancies on the City Council by defining timelines for applications, outlining interview and public comment procedures, and establishing nomination and voting protocols. These standards are designed to promote fairness, transparency, and compliance with open meeting laws, ensuring that allappointments are conducted in an open and equitable manner.

Council Rights and Responsibilities
The revised section clarifies the policymaking, budgeting, and oversight roles of City Councilmembers. It reinforces that the Councilacts collectively and not individually, that all direction to staff must flow through the City Manager, and that fullcompliance with the Brown Act is required for allcommunications and decision-making. The revisions strengthen ethical standards and reinforce orderly and professionalconduct in keeping with Robert’s Rules of Order.

Treasurer Rights and Responsibilities
The updates to the City Treasurer’s section clearly define the Treasurer’s limited oversight responsibilities and distinguish them from those of the Finance Director. The Finance Director continues to manage the City’s day-to-day financial operations, while the Treasurer’s duties are focused on financial oversight through the preparation of the monthly treasurer reports and annual investment report presented to the City Council.

The Treasurer is not authorized to perform any operational duties assigned to the Finance Director. The revised ordinance and accompanying reporting procedures establish clear expectations for coordination, timing, and use of City resources.

Treasurer Procedure Documents
The attached City Treasurer Reporting Procedures outline the process for preparing and submitting the Treasurer’s monthly and annual reports. The document establishes timelines, coordination requirements with the Finance Department, and expectations for the use of City-provided resources. It reaffirms that the Treasurer is responsible for compiling and presenting reports in compliance with state law and City standards, while the Finance Director and City Manager provide limited administrative support as needed.

Ordinance Changes
The proposed ordinance amendments to Article 5 of the Coalinga Municipal Code formally codify the City Treasurer’s responsibilities and coordination requirements as amended in the code of conduct. The revisions confirm the office of the City Treasurer as provided under Government Code Sections 36501 and 36502 and clarify that the Treasurer’s role is oversight-based rather than administrative. The ordinance defines the required monthly and annual reports, the process for collaboration with the Finance Director and City Manager, and the limits of the Treasurer’s authority to prevent overlap with Finance Department operations.

These changes ensure that the Treasurer’s role remains transparent, accountable, and consistent with state law and the intent of the City’s voters in maintaining this elected position.

Treasurer Compensation
If the City Council wishes to establish or amend compensation for the elected City Treasurer consistent with the revised ordinance, a separate resolution will be prepared and presented at a future meeting for consideration. The Council may direct staff at this time to return with such a resolution establishing the rate and method of compensation, which would take effect upon formal Councilapproval.

Next Steps
Council should review the attached draft documents and provide feedback or additional direction. Upon receiving consensus, staff and the City Attorney will finalize the revisions and return the complete Code of Conduct and ordinance amendments for formaladoption at a subsequent City Council meeting.

IV. ALTERNATIVES:

Revise attached documents and direct staff accordingly.

V. FISCAL IMPACT:

There is no immediate fiscal impact from these proposed changes.

ATTACHMENTS:

File Name Description
City_Treasurer_Reporting_Procedures_[DRAFT].pdf City Treasurer Reporting Procedures Article_5.___City_Treasurer_-_Ordinance_Changes.pdf Article_5.___City_Treasurer - Ordinance Changes Council_Code_of_Conduct_Redlined.pdf Council Code of Conduct - Redlined City Treasurer Reporting Procedures
This document outlines the procedures referenced in the City of Coalinga Code of Conduct related to the reporting responsibilities of the City Treasurer. It is intended to provide clear guidance on the preparation and submission of required financial and investment reports to the City Council.

Monthly Report:

The Treasurer shall prepare and submit to the City Council a written monthly report accounting for all receipts, disbursements, and fund balances of the City. The report shall be provided in coordination with the City Finance Department and shall comply with applicable provisions of the California Government Code.

Annual Investment Report:

The Treasurer shall cooperatively prepare, in partnership with the City’s investment consultants and Finance Department, an annual investment report to the City Council. This report shall summarize the City’s investment portfolio, performance relative to benchmarks, compliance with the City’s Investment Policy, and outlook for the upcoming fiscal year. The Treasurer and the City’s investment consultants shall jointly present this report in a public meeting of the City Council.

Procedure
To ensure transparency while preserving staff resources, the following procedures shall govern the preparation of reports by the City Treasurer:

1. Monthly Report
o The City Treasurer shall be responsible for compiling and submitting a written monthly report to the City Council.
o The Finance Director shall provide standard financial system reports (e.g., receipts, disbursements, and fund balances) upon request. o The City Treasurer shall be solely responsible for organizing, formatting, and presenting the information in a manner consistent with Council requirements. o City staff shall not be required to analyze, interpret, or otherwise assist in the preparation of the Treasurer’s report.
o It shall be the responsibility of the City Treasurer to ensure timely submission of the report and any associated staff report to the City Clerk so that it is placed on the second regular Council meeting of each month. Reports must be submitted no later than 10:00 a.m. on the Wednesday prior to the scheduled meeting date.

2. Annual Investment Report
o The City Treasurer shall take primary responsibility for preparing the annual investment report to the City Council.
o The Finance Director may provide system-generated investment data and statements but shall not be required to analyze, opine, coach, or consult in the preparation of the report.
o The City Treasurer shall compile and evaluate the data, with assistance as needed from the City’s investment consultants, to prepare the final report. o The City Treasurer and investment consultants shall jointly present the annual investment report at a duly noticed meeting of the City Council. o The annual investment report shall also be submitted to the City Clerk in accordance with the same deadline described above for monthly reports to ensure proper placement on a Council agenda.

3. Staff Time and Resource Limitations
o Requests by the City Treasurer for data or reports shall be limited to what is readily available from the City’s financial systems.
o Any request requiring additional staff analysis, research, or preparation beyond standard reports shall be subject to approval by the City Manager to ensure efficient use of staff resources.

4. Equipment and Resources
o The City may provide the City Treasurer with reasonable equipment and resources necessary to complete the required financial and investment reports, such as a City-issued computer, printer, and standard office supplies.

This provision does not include access to City financial systems, accounting software, or other internal programming platforms.

Article 5. City Treasurer
Coalinga, California, Code of Ordinances    Created: 2025‐06‐23 07:42:45 [EST] (Supp. No. 17)

Article 5. City Treasurer
Sec. 2‐1.501. Creation and functions.

The office of the City Treasurer is confirmed as provided in Sections 36501 and 36502 of the Government Code of the State. The City Treasurer shall perform those duties as are mandated by Sections 41001, 41002, 41003 and 41004, 53633 and 53646 of the Government Code of the State. The City Treasurer shall perform such other duties consistent with this Code as are required of him or her by action of the City Council. The City Treasurer shall not perform any function or duty of the Finance Director but shall have the oversight and reporting duties as indicated in Section 2‐1.504 and 2‐1.505..
(§ 1, Ord. 625, eff. October 5, 1996)
Sec. 2‐1.502. Vacancies.

In the event of a vacancy in the office of City Treasurer, the Finance Director shall assume and carry out the duties of the City Treasurer until the office is filled by appointment or election as called for in Section 36512(b) of the Government Code.
(§ 1, Ord. 625, eff. October 5, 1996)
Sec. 2‐1.503. Compensation.

The City Treasurer shall receive such compensation and expense allowance as the Council shall from time to time determine by resolution or ordinance. Such compensation shall be a proper charge against such funds of the City as the Council shall designate.
(§ 1, Ord. 625, eff. October 5, 1996)
Sec. 2‐1.504. Coordination with Director of FinanceMonthly Treasurers Report. (a) Any information needed by Tthe City Treasurer from City records toshall complete athe monthly report described in Government Code Section 41004, shall be obtained from or through the Director of Finance or the City Managerand accounting of all receipts, disbursements, and fund balances of the City, . At the time the Treasurer delivers the monthly report to the City Clerk, as required by Government Code Section 41004.

Any information needed by the City Treasurer from the City records to complete this report shall be obtained through the procedures approved by the City Council., a copy of the report shall be delivered to the City Manager and to the Finance Director.
(b) It shall be responsibility of the Treasurer to prepare, submit and present the report timely in accordance with the approved reporting procedures.
(c) The City Manager and Finance Director have the right to review the report for accuracy prior to submission to City Council.
(b) The City Treasurer shall coordinate all his or her activities relating to the rendering of financial reports and the City's investment policies with the Finance Director to insure that said reports accurately reflect the financial condition of the City.
(§ 1, Ord. 625, eff. October 5, 1996)
Created: 2025‐06‐23 07:42:45 [EST]
(Supp. No. 17)

Sec. 2‐1.505. Annual Investment policyReport.
(a) The Treasurer shall cooperatively prepare, in partnership with the City’s investment consultants and Finance Department, an annual investment report to the City Council.The Treasurer, in cooperation with the Director of Finance, shall jointly make the quarterly and annual reports to the City Council, relating to the City investment policy, as required by Government Code Section 53646. (b) This report shall summarize the City’s investment portfolio, performance relative to benchmarks, compliance with the City’s Investment Policy, and outlook for the upcoming fiscal year.All investments of the funds and monies of the City shall require the approval of the City Council. (c) This report shall be prepared and submitted in accordance with the Council approved reporting procedures. (§ 1, Ord. 625, eff. October 5, 1996)
Sec. 2‐1.506. Coordination with the City Manager.
(a) Except for work with the Finance Director mandated by the provisions of this article, the Treasurer will inform the City Manager of requests for information from any other officer or employee of the City, being sensitive to the work schedules and work loads when requesting such information, and shall confine such direct requests to the City Manager, the City Manager's designee or department heads. (b) The City Treasurer shall advise and coordinate with the City Manager relating to Treasurer reports to be made during any regular or special meeting of the Council, in order to assure compliance with the agenda provisions of the Ralph M. Brown Act, Council agenda policies and other requirements of law. (§ 1, Ord. 625, eff. October 5, 1996)

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: City Council Vacancy Options and Recommendation to Appoint a Replacement for Mayor Pro-Tem Horn
Meeting Date: Thursday, October 16, 2025
From: Sean Brewer, City Manager
Prepared by: Mario Zamora, City Attorney
I. RECOMMENDATION:

Approve the recommendation to fill the potential City Council vacancy created by the resignation of Mayor Pro-Tem Horn through the appointment process and authorize the City Clerk to initiate the public announcement and application solicitation process for replacing the Councilmember, as outlined in the Coalinga Municipal Code.

II. BACKGROUND:

The City Council has a potential vacancy due to the announced resignation of Mayor Pro-Tem Horn during the September 18, 2025 City Council meeting. As a general law city, Coalinga must fill this vacancy within 60 days of its effective date. The resignation is effective on the date stated in the written resignation letter filed with the City Clerk, and no action by the City Council is needed for it to take effect. However, no such written resignation letter has been received by the City Clerk to date.

III. DISCUSSION:

The City Council has two general options for filling the Councilmember seat:appointment or a special election.

Appointment: The Coalinga Municipal Code Section 2-1.301 indicates the City's policy is to fill vacancies by appointment. The California Government Code Section 36512 states that Council shall fill the vacancy by appointment within 60 days. The appointment process generally involves a public announcement, application solicitation (including a resume, cover letter, and statement of interest), eligibility review by staff, and interviews by the City Council. The final vote on the appointment must occur in open session in accordance with the Brown Act.

The individualappointed to fill the vacancy will serve until the next general municipalelection in November 2026. Under Government Code provisions, if a vacancy occurs during the first half of a term and more than 130 days remain before the next general municipalelection, the appointee serves only until that election. Since Mayor Pro-Tem Horn is in the first half of his second term, having been elected in November 2024, and more than a year remains until the November 2026 election, the remaining two years of the term will be filled through the November 2026 election to complete the unexpired term originally held by Mayor Pro-Tem Horn.

Special Considerations for Appointment: Since Coalinga elects by district, a resigning Councilmember may cast a vote on the appointment of a successor if their resignation goes into effect upon that appointment.

Considering the City's existing policy to fill vacancies by appointment and the simpler, quicker nature of the appointment process, staff recommends pursuing the appointment option.

IV. ALTERNATIVES:

Conduct a Special Election: Pursue a specialelection to fill the vacancy instead of a appointment. This option is generally more costly and time-consuming than an appointment. The City Attorney's estimate for the cost charged by the County to conduct a specialelection is $40,000.

V. FISCAL IMPACT:

The fiscal impact associated with the appointment option is generally limited to the cost of staff time, public advertising for the vacancy, and processing applications.

ATTACHMENTS:

File Name Description
NoAttachments Available