Agenda — Coalinga City Council, May 21, 2026 (part 1 of 2)

CITY COUNCIL/SUCCESSOR

AGENCY/PUBLIC FINANCE AUTHORITY

MEETINGAGENDA
May 21, 2026
6:00 PM
The Mission of the City of Coalinga is to provide for the preservation of the community character by delivering quality, responsive City services, in an efficient and cost-effective manner, and to develop, encourage, and promote a diversified economic base in order to ensure the future financial stability of the City for its citizens.

Notice is hereby given that the City Council will hold a Meeting, on May 21, 2026 in the City Council Chambers located at 155 West Durian, Coalinga, CA. Persons with disabilities who may need assistance should contact the City Clerk at least 24 hours prior to this meeting at 935-1533 x113. Anyone interested in translation services should contact the City Clerk at least 24 hours prior to the meeting at 935-1533 x113. The Meeting will begin at 6:00 p.m. and the agenda will be as follows:

1. CALL TO ORDER

1. Pledge of Allegiance

2. Changes to the Agenda

3. Council's Approval of Agenda

2. AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Natural Gas Presentation - Dan Bergmann

2. Certificate of Recognition - Central California Battle of the Badges, Officer Jose Vega

3. New Business Showcase

3. CITIZEN COMMENTS
This section of the agenda allows members of the public to address the City Council on any item within the jurisdiction of the Council. Members of the public, when recognized by the Mayor, should come forward to the lectern, identify themselves and use the microphone. Comments are normally limited to three (3) minutes. In accordance with State Open Meeting Laws, no action will be taken by the City Council this evening and all items will be referred to staff for follow up and a report.

Citizen Comments submitted in writing to the City Clerk by 5:00pm on the day of the City Council meeting shall be distributed to the City Council and included in the record, however they will not be read.

4. PUBLIC HEARINGS (NONE)

5. CONSENT CALENDAR

1. Approve MINUTES - February 5, 2026

2. Informational Only: Sales Tax Update Q4 October-December 2025

3. Waive the Second Reading and Adopt Ordinance No. 880 Amending Coalinga Municipal Code Sections 9-5.128 and 9-5.129 Relating to Commercial Cannabis Operations, Including Provisions for Regulatory Permits, Employee Permits, Operational Standards, and Other Related Regulatory Requirements

4. Approval of Short-Term Lease Agreement with Momentum Tactical, LLC at the Coalinga Municipal Airport

5. Adopt Resolution No. 4320 for the Sale of Excess Untreated USBR Water for 2026/27 to Pleasant Valley Water Conveyance Partners and Gladstone California Water LP

6. Adopt Resolution No. 4321 Approving Additional Square Foot of Sign Area at the Community West Bank

7. Adoption of Resolution No. 4323 Recommending to Modify the Calculation of Monthly Baseline Gas Therms to Achieve More Equitable Billing for the City's SingleFamily Residential Gas Customers

8. Adopt Resolution No. 4324 Accepting Real Property Easement related to the MultiUse Trail Segment 8-23S Easement Acquisition (APN: 071-020-23S, portion)

9. Consider the Collection Agency Services Proposal with Cedars Business Services,

LLC (CBS)

10. Adopt Resolution No. 4322 Approving an Emergency Declaration Regarding the Repair of a 2-Inch Steel Gas Line Located on Elm Ave

6. ORDINANCE PRESENTATION, DISCUSSION AND POTENTIAL ACTION ITEMS

1. Receive Presentation and Accept Employee Cost Allocation Results Dan Bergmann, IGS

2. Approval of the Selection of DKS Associates for Public Information Services and Authorization for the City Manager to Negotiate and Bring Back a Professional Services Agreement at the Next Meeting
Sean Brewer, City Manager

7. ANNOUNCEMENTS

1. City Manager's Announcements

2. Councilmembers' Announcements/Reports

3. City Treasurer's Announcements

4. Mayor's Announcements

8. FUTURE AGENDA ITEMS

9. CLOSED SESSION

1. CONFERENCE WITH LABOR NEGOTIATORS – Government Code 54957.6.

CITY NEGOTIATORS: City Manager, Sean Brewer and City Attorney, Mario Zamora. EMPLOYEE (ORGANIZATIONS): General Employees, Non-Safety Employees, Firefighters Association, Non-Represented Group and Coalinga Police Officers Association

10. CLOSED SESSION REPORT
Closed Session: A "Closed" or "Executive" Session of the City Council, Successor Agency, or Public Finance Authority may be held as required for items as follows: personnel matters; labor negotiations; security matters; providing instructions to real property negotiators; legal counsel regarding pending litigation; and protection of records exempt from public disclosure.

Closed session will be held in the Administration Building at 155 W. Durian Avenue and any announcements or discussion will be held at the same location following Closed Session.

11. ADJOURNMENT

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Certificate of Recognition - Central California Battle of the Badges, Officer Jose Vega
Meeting Date: May 21, 2026
From: Sean Brewer, City Manager
Prepared by: Sean Young, Police Commander
I. RECOMMENDATION:

Recognition of Officer Vega and his participation in the Battle of the Badges event II. BACKGROUND:

III. DISCUSSION:

IV. ALTERNATIVES:

V. FISCAL IMPACT:

ATTACHMENTS:

File Name Description
NoAttachments Available

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Approve MINUTES - February 5, 2026
Meeting Date: Thursday, May 21, 2026
From: Sean Brewer, City Manager
Prepared by: Shannon Jensen, City Clerk
I. RECOMMENDATION:

II. BACKGROUND:

III. DISCUSSION:

IV. ALTERNATIVES:

V. FISCAL IMPACT:

ATTACHMENTS:

File Name Description
MINUTES_For_Approval_020526.pdf Minutes - February 5, 2026 Minutes – February 5, 2026

MINUTES

CITY COUNCIL/SUCCESSOR

AGENCY/PUBLIC FINANCE AUTHORITY

MEETING AGENDA
February 5, 2026

1. CALL TO ORDER 6:03 PM
Council Members Present: Vosburg, Schindler, Lowder, Arroyo Others Present: City Manager Sean Brewer, Assistant City Attorney Nick Matoian, Chief of Police Jose Garza, Financial Services Director Mai Vang and City Treasurer Dawn Kahikina Fire Chief Greg DuPuis, and Administrative Analyst Mercedes Garcia
Council Members Absent: Ramirez
Others Absent: Assistant City Manager Jesse Barron and City Clerk Shannon Jensen Changes to the Agenda: City Manager Sean Brewer announced the following Changes to the Agenda:

1. Item No. 6.1 shall be Pulled from the Agenda and brought back at the February 19, 2026, meeting.

Motion by Schindler, Second by Lowder to Approve the Agenda for the Special meeting of February 5, 2026.

Motion Approved by 4/0 Roll-Call Majority Vote. (Ramirez – Absent)

2. AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Proclamation – Teen Dating Violence Awareness Month
Mayor Nathan Vosburg presented a proclamation recognizing Teen Dating Violence Awareness Month to Jessica Sailer, Prevention and Education Manager, and Tiffany Apodaca, Crisis Response Manager, of Marjaree Mason Center.

Ms. Sailer and Ms. Apodaca provided a brief presentation regarding teen dating violence awareness and prevention efforts.

Minutes – February 5, 2026

2. Presentation from the Community Garden, Alma Sanchez Ms. Alma Sanchez, Chief Executive Officer of the Pierce Street Community Garden nonprofit organization, provided a brief presentation regarding the community garden and the progress made since transitioning to a nonprofit organization in June 2025.

3. Public Outreach Efforts Presentation – Jessenia Medina, Public Outreach Coordinator Ms. Jessenia Medina, Public Outreach Coordinator, provided a presentation regarding the City’s public outreach and social media coordination efforts, including community engagement initiatives, social media analytics, and upcoming outreach projects. Council discussion followed regarding QR codes, mass notification systems, and expanding public outreach efforts.

4. Department Updates
Fire Chief Greg DuPuis provided a brief update regarding Fire Department activities and ongoing projects.

Chief of Police Jose Garza provided a brief update regarding Police Department activities and community outreach efforts.

Financial Services Director Mai Vang provided a brief update regarding Finance Department activities and the implementation of the City’s new payment processing system.

3. CITIZEN COMMENTS
The following individual(s) spoke under Citizen Comments:

None
The following individual(s) submitted written comment(s):

None

4. PUBLIC HEARINGS
None

5. CONSENT CALENDAR

1. Check Register: 12/01/2025-12/31/2025

2. Introduce and Waive First Reading of Ordinance No. 876 (Adoption of 2025 California Building Codes and Addition and Adoption of Chapter 17 and 18 of Title 8 of the City of Coalinga Municipal Code)

3. City Council Authorization of an Event Expenditure Budget for the 2026 Wings Over the Westside Event Scheduled for Saturday, October 3, 2026
Minutes – February 5, 2026

4. Approval of Contract Amendment with RSG, Inc. – Housing Successor Agency Consulting Services (FY 2024-25)

5. Acceptance of the Measure C Audit Report for Fiscal Year Ending June 30, 2024 Councilman Lowder Pulled Item No. 5.5 for Discussion
City Manager Sean Brewer provided a brief overview of the Measure Ce Program.

Financial Services Director Mai Vang and Assistant City Manager Jesse Barron provided clarification regarding the Measure C Program and the Fiscal Year 2023-2024 Measure C Audit Report.

6. Acceptance of the Local Transportation Development Act Funds Audit Report for Fiscal Year Ending June 30, 2024, and 2023

7. Informational Only: Investment Report for Quarter End December 31, 2025

8. Amendment to Authorization to Enter into an Agreement with CivicPlus for Website Chatbot Integration and Accessibility Compliance Services – Approval of Additional Accessibility Costs Mayor Vosburg Pulled Item No. 5.8 for Discussion.

City Manager Sean Brewer provided a brief overview of the item; with additional clarification provided by Assistant City Manager Jesse Barron and Public Outreach Coordinator Jessenia Medina.

Motion by Arroyo, Second by Schindler to Approve Consent Calendar Item Nos. 5.1 through 5.8. Approved by 4/0 Roll-Call Majority Vote. (Ramirez – Absent)

6. ORDINANCE PRESENTATION, DISCUSSION AND POTENTIAL ACTION ITEMS

1. Initial Discussion and Direction regarding Potential Placement of a Measure J Sales Tax Extension on the November 2026 General Election Ballot and Consideration of Public Information and Outreach Support
Sean Brewer, City Manager
Item No. 6.1 was Pulled during Changes to the Agenda and is expected to be brought back for discussion at the February 19, 2026, City Council meeting.

2. Discussion and Potential Action related to City Authority and Options for Abatement and Lient Placement on Fire-Damaged Properties
Sean Brewer, City Manager
City Manager Sean Brewer provided an overview of the item.

Fire Chief Greg DuPuis also provided additional information regarding Fire Department procedures following fire incidents.

Consensus of the Council was for staff to return with additional information and a proposed summary abatement ordinance for Council’s consideration.

Minutes – February 5, 2026

3. Council Discussion and Potential Action related to Reassessing Committees – Future Agenda Item – Mayor Vosburg
Sean Brewer, City Manager
City Manager Sean Brewer provided a brief overview regarding current committee vacancies following recent Councilmember resignations.

Chief of Police Jose Garza provided information regarding the Chief’s Advisory Board/Public Safety Committee.

Motion by Vosburg, Second by Arroyo to Appoint Councilman Jeremy Lowder to the Airport Ad Hoc Committee. Approved by 4/0 Roll-Call Majority Vote. (Ramirez – Absent) Motion by Lowder, Second by Schindler to Appoint Councilman Abel Arroyo to the Public Safety / City Beautification / Code Enforcement / Animal Control Transparency & Accountability Committee. Approved by 4/0 Roll-Call Majority Vote. (Ramirez – Absent)
Motion by Lowder, Second by Vosburg to Appoint Councilman Mayor Pro-Tem Schindler to the Public Safety / City Beautification / Code Enforcement / Animal Control Transparency & Accountability Committee. Approved by 4/0 Roll-Call Majority Vote. (Ramirez – Absent)

4. Discussion and Potential Direction related to the 2026 4th of July Celebration Event - Future Agenda Item – Mayor Pro-Tem Schindler
Sean Brewer, City Manager
Mayor Pro-Tem Schindler initiated discussion regarding potentially moving the City’s 2026 Fourth of July Celebration event to July 4, 2026.

City Manager Sean Brewer provided information regarding event logistics, vendor availability, and coordination with community partners.

Consensus of the Council is for staff to continue researching options and coordinating with community partners regarding feasibility of holding the even on July 4th.

7. ANNOUNCEMENTS
City Manager’s Announcements:

City Manager Sean Brewer reminded the Council and public regarding the upcoming Chamber Dinner scheduled for Saturday at 6pm at West Hills College Coalinga.

Council Member’s Announcements:

None
City Treasurer Dawn Kahikina indicated she no announcements to report.

Mayor’s Announcements:

Minutes – February 5, 2026
Mayor Vosburg provided comments regarding ongoing City efforts and encouraged the community to allow staff time to continue implementing recent projects and initiatives. Discussion also occurred regarding the upcoming SCCA racing event and Council Member attendance opportunities.

8. FUTURE AGENDA ITEMS
Councilmember discussioned vegetation overgrowth throughout the City, including overgrown vacant properties and sidewalks, potential fire hazards, and ongoing vegetation abatement efforts. Direction was provided to staff to continue addressing vegetation overgrowth concerns throughout the community.

9. CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL – Existing Litigation (Gov. Code 54956.9(d)(1)) Alexis A. v. City of Coalinga, et al., Fresno County Superior Court Case No. 26CECG00196

2. CONFERENCE WITH LABOR NEGOTIATORS – Government Code 54957.6. CITY NEGOTIATORS: City Manager, Sean Brewer and City Attorney, Mario Zamora. EMPLOYEE (ORGANIZATION): General Employees and Police Officers Association

10. CLOSED SESSION REPORT
No reportable action was taken during Closed Session.

11. ADJOURNMENT 8:13 PM
APPROVED:
___________________________________
Nathan Vosburg, Mayor
ATTEST:
___________________________________
Shannon Jensen, City Clerk
___________________________________
Date

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Informational Only: Sales Tax Update Q4 October-December 2025 Meeting Date: Thursday, May 21, 2026
From: Sean Brewer, City Manager
Prepared by: Mai Vang, Financial Services Director
I. RECOMMENDATION:

II. BACKGROUND:

III. DISCUSSION:

IV. ALTERNATIVES:

V. FISCAL IMPACT:

ATTACHMENTS:

File Name Description
Coalinga_4Q25_Newsletter.pdf Sales Tax Update Q4 Oct-Dec 2025 California_Consensus_Forecast_4Q25.pdf CA Forecast Sales Tax Trends & Economic Drivers www.hdlcompanies.com | 888.861.0220
Q4 2024*
Q4 2025*
Legend
$0
$20,000
$40,000
$60,000
$80,000
$100,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity Business
and
Industry
General
Consumer
Goods
Autos
and
Transportation
Food
and
Drugs
Restaurants
and
Hotels
County
and State
Pools
Fuel and
Service
Stations
CITY OF COALINGA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Spring 2026
AutoZone
Big 5 Sporting Goods
Billingsley Tire Service
Chevron
Coalinga Hardware
Coalinga Valley Market
Cookies Coalinga
Dispensary &
Consumption Lounge
DG Market
Dollar Tree
Fastrip
Fatte Albert’s Pizza
Little Caesars Pizza
McDonald’s
O’Reilly Auto Parts
Royal Liquor
Save Mart
State Foods
Taco Bell
Tacos Y Mariscos Sergio
Tractor Supply
Triple J Ready Mix
Tropicana Super Market
Valley Food Mart
Gasoline
Walgreens
West Hills Oil

SALES TAX UPDATE

CITY OF COALINGA
4Q 2025 (OCTOBER - DECEMBER)
Coalinga’s receipts from October
through December were 5.3% below the
fourth sales period in 2024. Excluding
reporting aberrations, actual sales were
down 1.6%.

State-county pools, the City’s second
largest income classification, had a
negative 2.3% return which was heavily
impacted by the contraction of several
businesses sectors.

The food-drugs group showed adverse
earnings from grocery stores as
consumers restricted spending on nonessential food items.

Service stations saw promising returns at
the pumps this quarter while gas prices
remained stable. Likewise, the businessindustry group enjoyed solid earnings of

13.6% during this quarter compared to
the state average which was relatively
flat.

The voter-approved Measures J had
positive results of 5.8% primarily from
the building construction sector.

Net of aberrations, taxable sales for all
of Fresno County grew 3.2% over the
comparable time period; the San Joaquin
Valley was up 0.5%.

TOTAL:

5.8%
$527,620
Measure J
TOTAL: $ 281,655
-1.6% 3.2% 1.1%

COUNTY STATE

COALINGA
4Q2025

TOP NON-CONFIDENTIAL BUSINESS TYPES
Q4 '25
Coalinga
Business Type Change Change Change
County HdL State
Service Stations 48,846 2.2% -2.4% -2.1%
Quick-Service Restaurants 26,606 -2.7% 1.0% 0.1%
Automotive Supply Stores 17,971 2.2% -2.0% -2.3%
Grocery Stores 16,460 -12.0% -0.8% 0.7%
Casual Dining 8,236 5.4% -0.8% 2.3%
Government/Social Org. 1,958 0.4% 13.5% 15.7%
Receivables/Master Outlets 1,016 759.3% 39.9% 1.0%
Auto Repair Shops 803 -39.6% -10.9% -1.9%
*Allocation aberrations have been adjusted to reflect sales activity

REVENUE BY BUSINESS GROUP
Coalinga This Calendar Year*
16%
Pools
15%
Restaurants
7%
Autos/Trans.
4%
Building
6%
Bus./Ind.
5%
Cons.Goods
12%
Food/Drug
35%
Fuel
*ADJUSTED FOR

ECONOMIC DATA
4Q 2025 CITY OF COALINGA SALES TAX UPDATE

STATEWIDE RESULTS
California’s local one cent sales and use tax
receipts posted moderate growth during the
fourth quarter, reflecting resilient consumer
behavior despite persistent economic
headwinds. For the months of October
through December, revenues increased 1.2%
from the year ago quarter after adjusting
for accounting anomalies. This performance
capped an overall improvement for calendar
year 2025 of 1.2%, marking a welcomed
annual increase after two consecutive years
of decline.

Consumer spending patterns during the
holiday season played a central role in the
fourth-quarter results. Fulfillment centers and
countywide use tax pools generated strong
returns, driven by sustained demand for
online shopping as cost-conscious consumers
prioritized convenience and price comparison.

This e-commerce momentum persisted
throughout the 2025 year. Traditional brickand-mortar retailers, particularly apparel and jewelry stores, also realized modest seasonal
gains, benefiting from holiday purchasing
activity.

Restaurant sales taxes rose again, although
operators reported continual pressure
from rising costs that influenced customer
behavior. Diners reduced visit frequency
and alcohol purchases, reflecting heightened
price sensitivity. While upcoming national
and global sporting events in California could
support localized growth, broader restaurant
sector expansion is expected to remain
constrained and concentrated primarily in
tourism-heavy and event-focused regions.

Energy-related initiatives produced solid
returns; however, revenue allocation
mechanisms shifted, with proceeds previously
reported directly to local agencies now
distributed through county pools during the
current period.

In contrast, the autos-transportation and
building-construction sectors remained
subdued. Elevated interest rates, seasonal
purchasing patterns, and winter weather limited
activity, particularly in high-value purchases
such as vehicles and home improvement
projects. Contractors in roofing and concrete
experienced reduced productivity, reinforcing
expectations of continued stagnation in these
industries. With minimal interest rate relief
projected for 2026, significant near-term
recovery remains unlikely.

Looking ahead, emerging global risks present
growing uncertainty. While not reflected
in current results, escalating tensions in
the Middle East have driven West Texas
Intermediate crude oil prices above $100 per
barrel, translating into sharply higher gasoline
prices exceeding $6 per gallon locally. Refinery
closures across Northern and Southern
California further amplify supply pressures.

Prolonged energy price volatility could force
consumers to redirect spending toward fuel
costs, reducing discretionary expenditures in
other sectors.

Prior to these developments, short-term
economic expectations were cautiously
optimistic. However, renewed inflationary
pressure has led the Federal Reserve to delay
anticipated interest rate reductions, limiting
consumer flexibility. Stubbornly high fuel
prices may also dampen travel and tourism
through summer, leaving little room for broadbased sales tax growth in the year. 888.861.0220 | [email protected] | hdlcompanies.com

CALIFORNIA FORECAST

SALES TAX TRENDS & ECONOMIC DRIVERS
MARCH 2026
San Diego, CA

STATEWIDE

SALES TAX TRENDS
2025/26 | 2026/27 2025/26 | 2026/27
Overview: Amid ongoing global events, political volatility, and consumer uncertainty surrounding both the California and national economies, near‑term sales tax revenues are still expected to post modest growth. Fiscal year 2025–26 projections are consistent with expectations set in the second quarter of 2025, reflecting a broadly stable outlook, and gradually improving statewide sales tax revenues. Consumers remain attentive to inflation trends, tariff‑related price changes, interest rate movements, and fuel costs. Despite these pressures, overall spending patterns have demonstrated resilience. Household demand is expected to remain steady, supporting moderate gains over the coming year even as pockets of unpredictability persist across numerous sectors.

Fuel/Service Stations 1.3% | 3.9%
Fuel‑related taxable sales entered 2026 with significant volatility following a weaker outcome in fourth quarter 2025. Geopolitical tensions involving Iran drove sharp swings in crude markets, with West Texas Intermediate (WTI) prices fluctuating between $80 and $120 per barrel in March. As a general benchmark, every $10 increase in WTI prices translates into an approximate $0.24 increase per gallon at California pumps. Structural supply pressures— including the closure of the Phillips 66 refinery in Los Angeles and the scheduled shutdown of Valero’s Benicia refinery in April along with CARB regulations—are compounding upward price risks. While short‑term price volatility may temporarily lift taxable sales, long‑term growth in this group continues to average near 2% annually.

General Consumer Goods 1.1% | 1.2%
Brick‑and‑mortar retailers maintained momentum in late 2025, posting year‑over‑year growth of 0.8%. Gains were concentrated in family apparel, led by off‑price retailers and the continuous expansion of athleisure brands. As 2026 unfolds, comparisons will be influenced by last year’s national retail boycotts, which weighed on in‑store sales at major chains. A partial rebound is anticipated, supported by larger tax refunds in the first half of the year. While tariff‑related uncertainties linger, conditions across general consumer goods are expected to stabilize. Retail risk has increasingly shifted toward secondary impacts from fuel price volatility and geopolitical disruptions; discretionary spending could contract in the coming months.

Restaurants/Hotels 1.8% | 1.9%
Consumers remain highly value‑conscious, and the restaurant industry continues to contend with elevated labor and operational costs. Several national chains are closing underperforming locations while reallocating resources toward higher‑growth markets. Despite these pressures, the outlook includes notable upside. California hosted the Super Bowl in 2026 and will do so again in 2027, alongside multiple World Cup matches in 2026 and the Olympic Games in 2028. These events reliably boost visitor spending, generating meaningful revenue gains for restaurants and hotels in host regions and lifting statewide averages.

State and County Pools 5.3% | 2.5%
Use tax pool collections exceeded expectations in the fourth quarter of 2025, driven largely by e‑commerce marketplace sellers and retailers with a strong online presence. Additional one‑time gains were observed in select counties from business‑related segments such as energy-utilities and the Franchise Tax Board for self-reported sales activity. The long‑term trend remains clear: an increasing share of consumer retail revenue is generated through internet‑based transactions. Substantial company investment in AI‑enabled platforms and digital fulfillment is expected to further expand the pool tax base in coming years.

Autos/Transportation -0.5% | 2.5%
The expiration of federal electric vehicle tax credits in September 2025 caused a sharper‑than‑anticipated 4Q25 decline in auto sales as many consumers advanced purchases to take advantage of the incentive. Consequently, the current‑year forecast is modestly revised downward. Additional uncertainty stems from the onset of conflict involving Iran, which contributed to higher fuel prices. This dynamic temporarily delayed vehicle purchases and may shift consumer preferences toward more affordable, fuel‑efficient models. Still, the sector’s longer‑term outlook remains constructive. The historically high average age of the nation’s vehicle fleet points to significant pent‑up demand that is expected to support renewed growth and a gradual return to normalized sales conditions beyond 2026.

Building/Construction -2.2% | 1.3%
Activity in this category remained largely unchanged compared to the third quarter of 2025. The expiration of the 30% federal solar investment tax credit on December 31 drove a short‑term increase in sales for some material suppliers and electrical contractors.

Infrastructure projects had limited direct impact as materials were often sourced through suppliers classified under business and industry. Roofing activity saw a modest uptick, though gains were concentrated among a small number of contractors. Based on patterns observed following 2022 heavy rainfall, more significant repair activity is anticipated to begin during the summer months.

First‑quarter results for large home improvement retailers may appear softer due to year‑ago calendar and tax allocation anomalies.

Business/Industry 2.3% | 3.0%
Business and industry produced a net positive result in the quarter, buoyed primarily by constant expansion in e‑commerce. Consumers leaned heavily into the convenience of mobile‑enabled online shopping during the winter season. California‑based fulfillment centers accounted for an estimated 34% of revenues, helping to offset softness elsewhere. YoY comparisons were affected by one‑time technology and energy‑related payments recorded in the prior year. While industrial segments continue to face challenges related to capital financing costs and tariffs, the statewide forecast remains cautiously optimistic.

Growth is expected to be driven by AI‑integrated technologies, logistics efficiencies, and continued e‑commerce adoption.

Food/Drugs -1.7 | 0.4%
Grocery stores recorded a modest uptick, 0.8%, reflecting the sustained rise of online ordering and click‑and‑collect services. Viral social media trends created sudden surges in demand for specific products, accelerating turnover cycles. Convenience stores and liquor markets experienced contraction, although many operators are attempting to stabilize traffic by expanding prepared food offerings.

Cannabis retailers posted positive results, as vape products surpassed traditional flower in sales for the first time. Drug stores, however, continued to struggle amid widespread closures, contributing to the emergence of ‘pharmacy deserts’ in urban and under-served areas. Overall, tax filings are expected to soften further through the remainder of the fiscal year.

TOTAL 1.8% | 2.2%
2025/26 | 2026/27
HdL Companies California Forecast
March 2026
Proposition 172
Statewide Proposition 172 revenues declined a modest 0.3% in fiscal year 2024–25, following a similar decrease of 0.9% the prior year. Growth is forecast to resume, with projected increases of 0.9% in 2025–26 and 1.8% in 2026–27. Current county estimates rely on pro‑rata allocation factors issued by the State Controller’s Office in July 2025, based on updated 2024 data. These factors are expected to change with the release of calendar year 2025 sales tax results in April 2026. As Bradley‑Burns sales tax data often shift due to audits and taxpayer adjustments, Proposition 172 revenues will continue to vary by county.

NATIONAL AND STATEWIDE

ECONOMIC DRIVERS
U.S. Real GDP Growth 2.5% | 2.2%
The year is progressing amid domestic unease and foreign policy shocks in the Middle East. Uncertainty remains elevated, and consumer confidence has plunged to near record lows. Still, the big picture reveals that very little has changed in the U.S. economy over the last year. The federal government shutdown left much of the core data lagging, but what did filter through points to more of the same—decent economic growth despite soft labor markets. Real GDP grew 2.2% in 2025, confirming Beacon Economics’ view that the economy would remain stable in the near term. Heading into the second half of 2026, the nation’s economy appears set for a modest acceleration, with the Federal Reserve and Congress moving into stimulus mode.

CA Unemployment Rate 5.5% | 5.3%
California’s unemployment rate has remained stable, reaching 5.6% in September 2025 and staying within a narrow 5.4% to 5.6% range over the past year. The consistency of the rate indicates that the labor market has settled into a new equilibrium. Labor market flows have slowed, with hiring no longer keeping pace with worker separations, limiting net job growth. Increases in unemployment have been concentrated among labor force re-entrants and longerduration job seekers, while job losses have remained stable.

Together, these patterns point to slower job switching and longer job searches, rather than an increase in layoffs, keeping unemployment elevated even as the labor market avoids broader deterioration.

CA Total Nonfarm
Employment Growth 0.2% | 0.2%
In California, hiring has remained soft since the pandemic, labor force growth continues to lag the nation, and unemployment remains high.

Demand for workers has cooled but not evaporated. Job postings are now roughly in line with 2015 levels, well below both the recent hiring surge and the pre‑pandemic period. The state’s labor market will remain soft in the near term, with modest employment gains and elevated unemployment. California’s ability to sustain growth will depend on expanding housing supply and restoring population growth. Without progress on these fronts, demographic aging and labor force constraints will continue to weigh on the state’s economic growth, even with favorable conditions nationwide.

U.S. Unemployment Rate 4.4% | 4.5%
The nation’s unemployment rate, now 4.4%, has gradually increased over the last two years. Uncertainty is partly to blame for soft labor markets, despite a growing economy. This prevents employers from pursuing aggressive expansion plans, and AI may have slightly reduced demand for certain jobs. The concentration of softness at the entry level (younger workers) seems to support the AI claim.

But the deeper truth is that U.S. labor markets aren’t as soft as they appear. Claims for unemployment insurance remain very low, and the job-openings rate is still 4.5%—a historically normal level.

The real issue is flat or even contracting labor supply due to policy shifts related to undocumented immigrants. Current policies have essentially halted in immigration into the United States, a challenge being masked by these short-term fluctuations in labor demand.

CA Residential
Building Permits 94,175 | 102,021
Over the past decade, California permitted an average of approximately 9,000 single- and multifamily housing units per month. For FY 2026, permits in the state are on track to reach around 105,000; not nearly enough to meaningfully expand supply. Under the 2021–2029 RHNA cycle, California jurisdictions are expected to accommodate about 2.5 million units statewide, or roughly 312,000 units per year. Actual production, even in strong years, has typically been between 100,000 to 130,000 units annually, meaning the state has been building about one-third of what planners estimate is needed to keep up with demand and address existing undersupply.

CA Median Existing
Home Price $741,508 | $747.246
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STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Waive the Second Reading and Adopt Ordinance No. 880 Amending Coalinga Municipal Code Sections 9-5.128 and 9-5.129 Relating to Commercial Cannabis Operations, Including Provisions for Regulatory Permits, Employee Permits, Operational Standards, and Other Related Regulatory Requirements Meeting Date: Thursday, May 21, 2026
From: Sean Brewer, City Manager
Prepared by: Jesse Barron, Assistant City Manager
I. RECOMMENDATION:

Staff recommends that the City Council waive the full reading and adopt Ordinance No. 880, amending Coalinga Municipal Code Sections 9-5.128 and 9-5.129 relating to commercialcannabis operations, including provisions for regulatory permits, employee permits, operational standards, and other related regulatory requirements.

II. BACKGROUND:

City Cannabis Regulation History
The City of Coalinga has authorized commercialcannabis operations within its jurisdiction since 2016. On November 3, 2016, the City Counciladopted Ordinance No. 797 establishing Section 9-5.128 of the Coalinga Municipal Code, establishing the City's initial regulatory framework for commercialcannabis operations, including cultivation, manufacturing, testing, and distribution activities. On January 4, 2017, the City Counciladopted Ordinance No. 804 establishing Section 9-5.129 to address retailcannabis operations, extending local permitting requirements to retail businesses operating within the City.

Evolution of State Cannabis Law
Since the City's initialadoption of its cannabis regulations, the State of California has substantially restructured its cannabis regulatory framework. In June 2017, the Legislature enacted the Medicinaland Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which consolidated the regulatory programs for medicinaland adult-use cannabis under a unified licensing structure. The Department of Cannabis Control (DCC) was subsequently established in 2021 as the single State agency responsible for cannabis licensing and enforcement. Subsequent legislative and regulatory amendments have further refined licensing categories and compliance obligations for commercialcannabis businesses.

As State law has evolved, the City's existing cannabis code provisions, adopted incrementally and at different points in time, have become increasingly difficult to administer in a cohesive manner. Certain provisions have become duplicative of State law requirements, others have been superseded by subsequent legislative changes, and portions of the existing code contain internal inconsistencies that create ambiguity for operators and City staff responsible for day-to-day administration and enforcement.

Staff Analysis
The proposed ordinance is intended to consolidate, update, and restate the City's commercialcannabis regulations into a single, comprehensive chapter of the Coalinga Municipal Code. The consolidation effort is not intended to materially expand or contract the types of cannabis activities currently authorized within the City, but rather to modernize the regulatory framework, improve internalconsistency, and align local requirements with current State law where appropriate.

Key updates incorporated into the proposed ordinance include, among other provisions:

Consolidation and Reorganization
The proposed ordinance consolidates Sections 9-5.128 and 9-5.129 of the Coalinga Municipal Code, along with all related commercialcannabis provisions, into a single, unified cannabis permitting chapter. This consolidation eliminates the fragmented, incrementally adopted structure of the existing code and replaces it with a logically organized regulatory framework structured as follows:
· Application and Permit Procedures — governing the submission, review, issuance, renewal, suspension, and revocation of localcannabis regulatory permits; · General Operational Requirements — establishing baseline operating standards applicable to all permitted cannabis business types;
· Security Requirements — establishing physical security, surveillance, and access control standards applicable to all permitted cannabis business types; and · Activity-Specific Requirements — establishing regulatory standards tailored to the unique operational characteristics of each of the following license categories:
o Cultivation
o Manufacturing
o Testing Laboratory
o Distributer
o Nursery
o Microbusinesses
o Retail
Consolidated and Updated Definitions
The proposed ordinance consolidates and restates allcannabis-related defined terms into a single definitions section, eliminating redundant and duplicative definitions that currently appear across Sections 9-5.128 and 9-

5.129. Definitions have been updated to align with current terminology used by the Department of Cannabis Controland applicable State statutes, ensuring consistency between localand State regulatory frameworks.

Removal of Outdated and Duplicative Provisions
Provisions that replicate, conflict with, or have been superseded by current State cannabis law and Department of Cannabis Control regulations have been removed. Where the City's prior ordinances imposed requirements that are now comprehensively addressed at the State level, the proposed ordinance defers to State regulation rather than maintaining parallel local requirements that may create confusion or impose inconsistent obligations on operators.

Strengthened FinancialAssurance Requirements.

The proposed ordinance replaces the existing flat surety bond requirement of $25,000 with a revised bond structure calibrated to each permittee's actualcannabis business tax obligation. The revised requirement establishes bond amounts equivalent to one calendar quarter of the permittee's annual tax liability, calculated based on gross receipts for retail operators and facility square footage for non-retail operators. This approach ensures that bond coverage bears a meaningful relationship to each operator's financial exposure to the City and significantly strengthens the City's ability to recover delinquent cannabis business taxes, enforcement costs, and abatement expenses from a solvent third-party surety rather than a potentially distressed operator.

Removal of Employee Permitting Requirements
The proposed ordinance removes the City's existing individualemployee permit and local background check requirements applicable to cannabis business employees. This change aligns the City's regulatory framework with current State law, which does not impose background check requirements on cannabis business employees at the State licensing level.

Importantly, this change does not eliminate background check requirements altogether. The City willcontinue to require and conduct background checks on allcannabis regulatory permit applicants and owners as a condition of local permit issuance. This ensures that the City retains meaningful oversight over the individuals ultimately responsible for the ownership, control, and operation of cannabis businesses within its jurisdiction, while eliminating the duplicative and administratively burdensome requirement to screen all individual employees.

Environmental Review
The City is the Lead Agency for this Project pursuant to CEQA Guidelines (Public Resources Code [PRC] Section 15000 et seq.). This update is subject to CEQA Guidelines section 15061(b)(3), which states that “The activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” The proposed ordinance includes changes to the zoning code, but nothing in the proposed changes would alter the existing development potential of the City as expressed in the General Plan.

III. DISCUSSION:

The proposed ordinance modernizes the City's commercialcannabis regulatory framework by consolidating a decade of incrementally adopted provisions into a single, clearly organized chapter that improves clarity, consistency, and enforceability for operators, the public, and City staff. The ordinance removes outdated and duplicative provisions that have been superseded by the State's mature cannabis regulatory framework while preserving the City's full local permitting authority and strengthening financial protections through a revised surety bond structure calibrated to each operator's actual tax obligation.

At their April 28
th
, 2026, meeting, the City of Coalinga Planning Commission passed a resolution recommending that the Coalinga City Councilconsider and approve the Zoning Text Amendment to Coalinga Municipal Code Sections 9-5.128 and 9-5.12 relating to Commercial Cannabis Operations, including provisions for regulatory permits, employee permits, operational standards, and other related regulatory requirements.

IV. ALTERNATIVES:

MOVE TO WAIVE FULL READING AND ADOPT ORDINANCE NO. 880 AMENDING SECTION 9-5.128 OF TITLE 9, CHAPTER 5 OF THE COALINGA MUNICIPAL CODE

PERTAINING TO THE STANDARDS FOR COMMERICAL CANNABIS OPERATION IN THE CITY; (2) AMENDING TITLE 9, CHAPTER 5, ARTICLE 1 OF THE COALINGA MUNICIPAL CODE TO REPEAL SECTION 9-5.129 PERTAINING TO THE STANDARDS FOR RETAIL CANNABIS OPERATIONS; AND FIND THAT THE PROJECT IS EXEMPT FROM THE

REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AS SET FORTH IN SECTION 15061(B)(3) OF THE CEQA GUIDELINES
or
MOVE TO DENY ADOPTION OF ORDINANCE NO. 880 AMENDING SECTION 9-5.128 OF TITLE 9, CHAPTER 5 OF THE COALINGA MUNICIPAL CODE PERTAINING TO THE STANDARDS FOR COMMERICAL CANNABIS OPERATION IN THE CITY; (2) AMENDING TITLE 9, CHAPTER 5, ARTICLE 1 OF THE COALINGA MUNICIPAL CODE TO REPEAL SECTION 9-5.129 PERTAINING TO THE STANDARDS FOR RETAIL CANNABIS OPERATIONS; AND FIND THAT THE PROJECT IS EXEMPT FROM THE REQUIREMENTS

OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AS SET FORTH IN SECTION 15061(B)(3) OF THE CEQA GUIDELINES
V. FISCAL IMPACT:

There will be no fiscal impact.

ATTACHMENTS:

File Name Description
Ordinanace_880_with_Draft_Text_Amendment_05_21_26.pdf Ordinance No. 880 ORDINANCE 880
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COALINGA: (1) AMENDING SECTION 9-5.128 OF TITLE 9, CHAPTER 5 OF THE COALINGA MUNICIPAL CODE PERTAINING TO THE STANDARDS FOR COMMERICAL CANNABIS OPERATION IN THE CITY; (2) AMENDING TITLE 9, CHAPTER 5, ARTICLE 1 OF THE COALINGA MUNICIPAL CODE TO REPEAL SECTION 9-5.129 PERTAINING TO THE STANDARDS FOR RETAIL CANNABIS OPERATIONS; AND FIND THAT

THE PROJECT IS EXEMPT FROM THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AS SET FORTH IN SECTION 15061(B)(3) OF THE

CEQA GUIDELINES
WHEREAS, on November 3, 2016, the City Council adopted Ordinance No. 797 establishing Section 9-5.128 of the Coalinga Municipal Code to regulate commercial cannabis operations within the City, authorizing cultivation, manufacturing, testing, and distribution activities subject to local permitting requirements; and,
WHEREAS, on January 4, 2017, the City Council adopted Ordinance No. 804 establishing Section 9-5.129 of the Coalinga Municipal Code to regulate retail cannabis operations within the City; and, WHEREAS, since the adoption of Sections 9-5.128 and 9-5.129, the State of California has significantly evolved its cannabis regulatory framework, including through the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and subsequent legislative and regulatory amendments, which have altered licensing categories, compliance requirements, and operator obligations applicable to commercial cannabis businesses; and
WHEREAS, as a result of this incremental adoption and the ongoing evolution of State cannabis law, certain provisions of the City's existing cannabis regulations have become duplicative, outdated, or internally inconsistent, creating potential ambiguity for operators, the public, and City staff responsible for administration and enforcement; and
WHEREAS, the City Council finds that consolidating, updating, and restating the City's commercial cannabis regulations into a single, comprehensive section of the Municipal Code will improve clarity, enforceability, and administrative efficiency, while preserving the City's authority under applicable State law to exercise local control over the permitting and regulation of commercial cannabis operations within its jurisdiction; and,
WHEREAS, Notice of Public Hearing for Planning Commission and City Council was posted at City Hall, Police Department Bulletin Board, Fire Department Bulletin Board, Coalinga District Library, Chamber of Commerce, and City of Coalinga website, on April 8, 2026, and; WHEREAS, the Planning Commission held the duly noticed Public Hearing on April 28, 2026, to take testimony with regard to the proposed Zoning Text Amendment and adopted a resolution with a recommendation to the City Council to approve the Zoning Text Amendment; and WHEREAS, the laws and regulations relating to the preparation and adoption of environmental documents, as set forth in the State Guidelines Implementing the California Environmental Quality Act have been adhered to; and
WHEREAS, the City Council held a public hearing on May 7, 2026 to consider the Zoning Text Amendment during which the Council solicited public testimony, and fully considered this request and the potential environmental effects; and
WHEREAS, after the public hearing, the City Council introduced the ordinance; and WHEREAS, the City Council now desires to approve the Zoning Text Amendment to amend Section 9-5.128 and Section 9-5.129 of Title 9, Chapter 5 of the Coalinga Municipal Code as set forth in Exhibit ‘1’.

NOW, THEREFORE, THE CITY COUNCIL HEREBY FINDS, DETERMINES, AND DECLARES THE FOLLOWING:

1. Recitals. The City Council hereby finds that all the facts set forth in the recitals above are true and correct and incorporated herein.

2. CEQA. The Zoning Text Amendment is exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines because the amendments will have no significant effect on the environment.

3. Zoning Text Amendment. The City Council finds as follows per Coalinga Municipal Code Section 9-

6.910. – Required findings.
a. The proposed Zoning Ordinance amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City.
b. The proposed Zoning Ordinance amendment is consistent and compatible with the goals, policies, and actions of the General Plan, and the other applicable provisions of the Zoning Ordinance.
c. The proposed Zoning Ordinance amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act.

4. Approval of the Zoning Text Amendment. Given that all findings can be made, the City Council approval of the Zoning Text Amendment as set forth in Exhibit ‘1’.

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

Section 1. Section 9-5.128 – Cannabis cultivation, manufacturing, testing, transportation and distribution of Title 9, Chapter 5 of the Coalinga Municipal Code is hereby amended as shown in Exhibit ‘1’.

Section 2. Section 9-5.129 – Retail Cannabis Operations of Title 9, Chapter 5, Article 1 of the Coalinga Municipal Code is hereby repealed in its entirety.

Section 3. This Ordinance shall go into effect and be in full force after thirty (30) days after its final passage and adoption.

Section 4. The City Clerk is authorized and directed to cause this ordinance or a summary of this ordinance to be published and circulated in the City of Coalinga, within 15 days after its adoption. If a summary of this ordinance is to be published, then the City Clerk shall cause a summary of the proposed ordinance to be published and a certified copy of the full text of the proposed ordinance to be posted in the office of the City Clerk at least five days prior to the Council meeting at which the ordinance is adopted, and also shall cause a certified copy of the full text of the adopted ordinance to be posted in the office of the City Clerk after the meeting at which the ordinance is adopted. The summaries shall be approved by the City Attorney.

The foregoing ordinance was introduced by the City Council of the City of Coalinga, California, at a regular meeting held on May 7, 2026, and was passed and adopted by the City Council on the 21st day of May 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
____________________________
Nathan Vosburg, Mayor
ATTEST:
_________________________________
Shannon Jensen, City Clerk
Exhibit “1”
Ordinance No. 880
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Sec. 9-5.128. Cannabis cultivation, manufacturing, testing, transportation and distributionCommercial Cannabis Operations.
(a) Purpose. The purpose of this section is to adopt local regulations applicable to commercial cannabis operations as may be permitted under California Government Code, Title 4, Division 19 of the California Code of Regulations, and the provisions of the Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).
(b) Definitions. Except as set forth herein, or where a different meaning is clearly intended by the language, the definitions set forth in the Act shall apply to interpretations under this section.

Act means the Medicinal and Adult-Use Cannabis Regulation and Safety Act or a subsequent cannabis related law adopted by the State.

Applicant means a person who is required to file an application for a permit under this section.

Business owner means the owner(s) of the cannabis operations. For corporations and limited liability companies, business owner means the President, Vice President, and any shareholder owning a twenty (20) percent or greater share of the corporation or company. For partnerships, business owner means all general partners and managing partners.

Cannabis shall have the meaning set forth in California Business and Professions Code section 19300.5(f)26001(g),. including marijuana and cannabis concentrate (as defined in Business and Professions Code section 19300.5(g)26001(j)), that has been recommended to an individual by a licensed physician for the treatment of an illness or disease pursuant to California Health and Safety 11362.5 et seq.

Cannabis consumption lounge shall mean a location with both onsite retail sale and areas to consume cannabis or cannabis products. A consumption cafe/lounge shall have a licensed retail premises that is a physical location from which commercial cannabis activities are conducted. The consumption cafe/lounge shall only sell cannabis or cannabis products to adults twenty-one (21) years of age or older for onsite consumption, either through smoking, vaping, or ingestion of edible or topical products. The space occupied by a consumption cafe/lounge shall be definite and distinct from the space where other activities licensed are exercised and shall be accessed through a separate entrance. Onsite consumption lounges and cafes shall only be permitted in the Downtown Overlay District.

Cannabis retail facility means a physical building where adult-use and/or medicinal cannabis products, or devices for the use of adult-use and/or medicinal cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers, cannabis and cannabis products as part of retail sale. This includes microbusinesses with on-site indoor cultivation limited to 10,000 square feet or as prescribed by state law.

City means the City of Coalinga.

Co-location of businesses shall mean the existence of multiple cannabis operations located at a single location (parcel, building or structure) or as defined by the State of California. This also includes the co-location of both adult-use and medicinal commercial cannabis operations as prescribed by law.

Commercial cannabis operation means any commercial cannabis activity allowed under the Act and the implementing regulations, as the Act and the implementing regulations may be amended from time to time, and all uses permitted under any subsequently enacted State law pertaining to the same or similar uses for recreational cannabis.

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Commercial cannabis regulatory permit or regulatory permit means the permit required under this section to have a commercial cannabis operation, and any prior permit granted by the City under Urgency Ordinance No. 791 pursuant to the registration process.

Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physician’s recommendation, or a primary caregiver.means a qualified patient, primary caregiver to a qualified patient, or anyone otherwise allowed by state law to purchase, consume, or possess adult-use or medicinal cannabis.

Employee permit means the permit required under this section for every employee or independent contractor working at a commercial cannabis operation or involved in transportation/delivery related services for a commercial cannabis operation.

Limited-access area is an area in which medical cannabis goods are stored or held and is only accessible to a licensee and his or her employees and contractors.

Non-commercial and adult-use cannabis activity means all uses not included within the definition of commercial cannabis operation, including the personal use, cultivation, or consumption of cannabis, whether medicinal or for adult-use.

Operator means the business owner and any other person designated by the business owner as responsible for the day to day cannabis operations.

Ordinance means the ordinance adopting this section, and including the terms of this section, which may be commonly referred to as the City's "Commercial Cannabis Ordinance." Outdoor cultivation means the cultivation of cannabis, outside of a structure, without the use of artificial lighting in the canopy area at any point in time. Cultivation within a hoop structure is considered outdoor cultivation. No artificial lighting is permissible for outdoor cultivation, including within hoop structures.

Personal cannabis means cannabis that is cultivated, processed, or stored for a single customer's use.

Police Chief means the Police Chief of the City of Coalinga or his or her designee.

Premises means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee.

Premises owner means the fee owner(s) of the premises where cannabis operations are occurring.

Primary caregiver is an individual designated by the qualified patient who has consistently assumed responsibility for the housing, health, or safety of that patient pursuant to statutory and case law.

Qualified patient is a person who has a recommendation for cannabis by a licensed physician and is entitled to the protections offered by California Health and Safety Code Section 11362.5, and who has an identification card issued by the State Department of Public Health identifying the individual as a person authorized to engage in the use of cannabis as well as a picture identification of one of the following:
• A document issued by a federal, state, county, or municipal government, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, physical description, and picture of the person;
• A valid identification card issued to a member of the Armed Forces that includes a date of birth and a picture of the person; or
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• A valid passport issued by the United States or by a foreign government.

Responsible party shall mean the business owner, operator, manager(s), and any employee having significant control over the cannabis operations.

Retail means any activity involving the retail sale of cannabis or cannabis products from a cannabis retail facility for both adult-use and medicinal cannabis customers. (c) Commercial cannabis operation Ppermitting.
(1) Permitted uses and zoning. Business owners meeting the requirements of this section, unless specified otherwise, shall be allowed to conduct the following commercial cannabis operations in the MBL - Light Manufacturing/Business Zone District of the City:
• Indoor cultivation.
• Outdoor cultivation.
• Manufacturing (nonvolatile).
• Manufacturing (volatile).
• Testing laboratory.
• Distributer.
• Nursery.
• Retail.
• Microbusiness.
(2) No more than two (2) Cannabis Retail regulatory permits shall be issued City wide. Nothing herein shall require the City to issue the maximum number of permits allowed by this section. (3) (12) Distance separation from schools. Cannabis operations shall comply with the distance separation requirements from schools as required by State law. In addition, a commercial cannabis operation shall not be located within 930 feet from any existing school or proposed school site as identified in the General Plan. Measurements shall be from property boundary to property boundary. For purposes of this section, school means any public or private school providing instruction in kindergarten or grades 1—12, inclusive, but does not include any private school in which education is primarily conducted in private homes. The commercial cannabis operation shall at all times be in compliance with this section or as otherwise specified as it may be amended from time to time or repealed and replaced by another section governing the commercial cannabis operation.
(4) Retail location from sensitive uses.
a. A retail premises/facility permitted under this division shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued. b. A retail premises/facility shall not be located within 100 feet of a residential district. c. The distance specified in this section shall be measured in the same manner as provided in subdivision (c) of Section 11362.768 of the Health and Safety Code unless otherwise provided by law.

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(5) The commercial cannabis operation shall at all times be in compliance with this section or as otherwise specified as it may be amended from time to time or repealed and replaced by another section governing the commercial cannabis operation.
(ed) Commercial cannabis regulatory permit. No person or entity shall operate a commercial cannabis operation within the City of Coalinga without first obtaining a commercial cannabis regulatory permit from the City.

The regulatory permit shall be site specific and shall specifically identify the commercial cannabis activity that will be allowed at that site. No commercial cannabis activity will be allowed unless specifically identified in the regulatory permit. A property owner need not be permitted, and permits shall be held by an applicant. (fe) Conditional use permit. Prior to, or concurrently with, applying for a regulatory permit, the applicant shall process a conditional use permit as required by the City's Land Use Regulations. Information that may be duplicative in the two (2) applications can be incorporated by reference. The conditional use permit shall run with the land. If an existing permitted retail facility seeks a consumption lounges or café, an amended CUP must be approved to permit such activity.
(gf) Applications for regulatory permits and responsible party designation. (1) Application. Applications for regulatory permits shall be filed by the proposed business owner(s) with the Police Chief and include the information set forth herein. The Police Chief may request such information he or she deems necessary to determine who the applicant is. The applicant shall certify under penalty of perjury that all of the information contained in the application is true and correct. The application shall contain the following items for the business owner, operator and all responsible parties known at the time (if different than the business owner), and any other party designated below, to the extent the same shall apply:
a. The full name, present address, and telephone number, including such information to the premises owner.
b. Date of birth.
c. Tax identification number.
d. The address to which notices relating to the application is to be mailed. e. Previous addresses for the five (5) years immediately preceding the present. f. The height, weight, color of eyes and hair.
g. Photographs for identification purposes (photographs shall be taken by the Police Department). h. All business, occupation, or employment for the five (5) years immediately preceding the date of submittal of the application form.
i. The cannabis operation business history, including whether the business owner and responsible parties while previously operating in this or another city, county or state has had a cannabis related license revoked or suspended, the reason therefore, and the business or activity or occupation subsequent to such action of suspension or revocation. j. Complete property ownership and lease details, where applicable. If the business owner is not the premises owner, the application form must be accompanied with a notarized acknowledgment from the premises owner that cannabis operations will occur on its property. k. A descriptive business plan for the cannabis operation, including a detailed list of all cannabis operations proposed to occur on the premises.
l. A diagram and floor plan of the entire premises, denoting all the use of areas proposed for cannabis operations, including, but not necessarily limited to, cultivation, processing, manufacturing, testing, transportation, deliveries, and storage. The diagram and floor plan need Created: 2025-06-23 07:43:18 [EST]
(Supp. No. 17)

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not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six (6) inches. m. The name or names of the operator. The operator shall designate one or more responsible parties, one of which shall at all times be available as a point of contact for the City, twenty-four (24) hours per day. The contact information and schedule of the operator and responsible parties shall be provided to the Police Chief and updated within twenty-four (24) hours of any changes. n. The proposed security arrangements for insuring the safety of persons and to protect the premises from theft.
o. An accurate straight-line drawing prepared within thirty (30) days prior to the application depicting the building and the portion thereof to be occupied by the cannabis operation and the property line of any school as set forth in the operational requirements. p. A descriptive operations plan for the cannabis operation that shall include, but not be limited to, standard operating procedures, training program, number of employees, inventory procedures, waste management plan, quality control procedures, pest management, estimated water use, and equipment storage.
q. Authorization for the City, its agents and employees to seek verification of the information submitted.
(2) Improper or incomplete application. If the applicant has completed the application improperly, or if the application is incomplete, the Police Chief shall, within thirty (30) days of receipt of the original application, notify the applicant of such fact.
(3) Changes in information. Except as may otherwise be provided, the information provided in this subsection shall be updated to the Police Chief upon any change within ten (10) days. (4) Other permits or licenses. The fact that an applicant possesses other types of State or City permits or licenses does not exempt the applicant from the requirement of obtaining a regulatory permit. (h) Employee permits.
(1) Permit required. Every employee or independent contractor working at a commercial cannabis operation shall obtain an employee permit. It shall be the duty of the operator to ensure that employee permits are obtained from the Police Department prior to the employee or independent contractor commencing work. Persons who are listed as a business owner on a regulatory permit shall not be required to obtain an employee permit if such person also serves as an employee or contractor.

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h. Authorization for the City, its agents and employees to seek verification of the information contained within the application.
i. The name of the business owner holding the regulatory permit and the operator for which such person is proposed to work.
(ig) Application fees. Every application for a regulatory permit and employee permit shall be accompanied by a nonrefundable fee, as established by resolution of City Council. This fee shall be in addition to any other business license fee or permit fee imposed by this Code or other governmental agencies. The fee shall include an amount to cover the costs of fingerprinting, photographing, background checks as well as general review and processing of the application.
(jh) Investigation and action on application.
(1) Upon the filing of a properly completed application and the payment of the fee, the police chief shall conduct an investigation of the application, including a background check of the applicant and all employees and independent contractorsowners. All applicants and owners for a regulatory permit and employee permit shall be required to submit to a fingerprint-based criminal history records check conducted by the Coalinga Police Department.
(2) For regulatory permits, after the background checks and investigation are complete, the Police Chief shall approve or deny a regulatory permit in accordance with the provisions of this section. The recommendation for approval shall include conditions the Police Chief deems reasonable under the circumstances to protect the public health, safety, and welfare of the community. (3) For employee permits, after the background checks and investigation are complete, the Police Chief shall either approve or deny an employee permit. At the discretion of the Police Chief, employee permits may be conditionally approved pending the background investigation. (ki) Term of permits and renewals. Regulatory permits issued under this chapter shall expire one year following the date of issuance. Applications for renewal shall be made at least forty-five (45) days prior to the expiration date of the permit and shall be accompanied by the nonrefundable fee referenced in this section.

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(7) The cannabis operation does not comply with the zoning ordinance standards of the City of Coalinga or the development standards set forth in this title.
(8) The required annual business license fee, annual regulatory fee or revenue raising fee has not been paid.
(m) Grounds for denial of employee permit. The grounds for denial of an employee permit shall be one or more of the following:
(1) The applicant has been issued a local or state permit related to cannabis operations at any other location in California, or another state, and that permit was suspended or revoked, or the applicant has had disciplinary action relating to the permit.
(2) The employee is ineligible for employment under the requirements of the Act. (3) Consistent with the Act or other applicable State law, the applicant has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices. (4) The applicant has committed any act, which, if done by a permittee, would be grounds for suspension or revocation of a permit.
(5) An applicant is under twenty-one (21) years of age, or any older age set by the State. (nk) Notice of decision and final action.
(1) Regulatory permit. Action on the regulatory permit shall be as follows:
a. The Police Chief shall cause a written notice of his or her recommendation on the issuance or denial of a regulatory permit, and the date and time when the City Council will consider action on the regulatory permit, to be personally delivered or mailed to the applicant by certified U.S. mail, postage prepaid.
b. Following a public hearing before the City Council, the Council may grant the regulatory permit subject to such conditions as it deems reasonable under the circumstances to protect the public health, safety, and welfare of the community, or it may deny the issuance of the regulatory permit for any of the grounds specified in this section. The decision of the Council shall be final, subject to judicial review below.
(2) Employee permit. Action on the employee permit shall be as follows:
a. The Police Chief shall cause a written notice of his or her determination on the issuance or denial of an employee permit to be personally delivered or mailed to the applicant by certified U.S. mail, postage prepaid. The Police Chiefs decision on an employee permit shall be final, subject to judicial review.
(ol) Suspension and revocation of regulatory permit. or employee permit. (1) Regulatory permit. The City Council may suspend or revoke the regulatory permit of a commercial cannabis operation when any of the following occur:
a. The cannabis operation is conducted in violation of any provision of this section, the Act, or any other applicable state law.
b. The cannabis operation is conducted in such a manner as to create a public or private nuisance. c. A failure to pay the regulatory fee or revenue raising fee required by this section. d. A failure to take reasonable measures to control patron conduct, where applicable, resulting in disturbances, vandalism, or crowd control problems occurring inside of or outside the premises, traffic control problems, or obstruction of the operation of another business.

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e. A failure to comply with the terms and conditions of the regulatory permit or any conditional use permit issued in connection therewith.
f. Any act which would be considered grounds for denial of the regulatory permit in the first instance.
g. Failure to reasonably comply with the recommendations and action items identified on the City's monitoring and compliance reports.
(2) Employee permit. The Police Chief may suspend or revoke an employee permit when the permittee or the employee has committed any one or more of the following acts:
a. Any act which would be considered a ground for denial of the permit in the first instance. b. Violates any provision of this section, the Act, or any other applicable law relating to the cannabis operation.
c. Violates or fails to comply with the terms and conditions of the employee permit. (32) Procedures for revoking regulatory permits. For regulatory permits, the procedures for revoking conditional use permits shall be utilized except that the matter shall be heard by the City Council in the first instance, and shall be subject to the same judicial process as applied to a conditional use permit. (See, Coalinga Municipal Code Section 9-6.114, Effective dates, expiration, extensions, modifications, and revocation of approvals.)
(4) Procedures for revoking employee permits. Prior to suspension or revocation of an employee permit, the Police Chief shall conduct a hearing. Written notice of the time and place of such hearing shall be served upon the permittee at least five (5) calendar days prior to the date set for such hearing. The notice shall contain a brief statement of the grounds to be relied upon for revoking or suspending the permit. Notice may be given either by personal delivery or by certified U.S. mail, postage prepaid. Any permittee aggrieved by the decision of the Police Chief in suspending or revoking an employee permit shall have no appeal rights and the Police Chiefs decision shall be final, subject to judicial review as set forth in this section.
(53) Immediate suspension. The Police Chief may immediately suspend or revoke a regulatory permit and an employee permit without notice or a hearing, subject to the appeal rights set forth herein, under either of the following circumstances:
a. The business owner or operator is convicted of a public offense in any court for the violation of any law which relates to the cannabis operation, or in the case of an employee permit, the employee is convicted of a public offense in any court for the violation of any law which relates to the permit. .
b. The Police Chief determines that immediate suspension is necessary to protect the public health, safety, and welfare of the community. The Police Chief shall articulate the grounds for the immediate suspension in writing and the suspension shall only be for as long as necessary to address the circumstances which led to the immediate suspension. (pm) Effect of denial or revocation. When the City Council shall have denied a regulatory permit or revoked a regulatory permit, or the Police Chief shall have denied or revoked an employee permit, no new application for a regulatory permit and no new application for an employee permit shall be accepted and no regulatory permit or employee permit shall be issued to such person or to any corporation in which he or she shall have any beneficial interest for a period of one year after the action denying or revoking the regulatory permit or employee permit.
(qn) Abandonment. In addition to the suspension or revocation of a regulatory permit, a regulatory permit shall be deemed abandoned if cannabis operations cease for a period of more than ninety (90) consecutive days.

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Before restarting operations, a new regulatory permit shall be secured. The ninety (90) day period shall be tolled during periods of force majeure, which shall be defined as follows: War; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; supernatural causes; acts of the "public enemy"; epidemics; quarantine restrictions; freight embargoes; lack of transportation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; or any other causes beyond the reasonable control of the permittee.
(ro) Water availability. As a condition of opening for business, the premises owner, business owner, operator, and all responsible parties shall be deemed to have acknowledged and agreed to the following if the cannabis operation is connected to the City's water system.

While the City believes that supplying water to the site does not impair the Bureau contract, should the Bureau, Department of Justice, or other governing agency take actions affecting the City's Bureau contract because of the cannabis operation, the City may be forced to curtail or commingle water supply to the site.

Under those circumstances, the cannabis operation may be required to find alternative sources of water supply. If that happens, the City agrees to work with the premises owner, business owner, and operator to find an alternative water source, which may include the commingling of water, accessing a well, or having water delivered to the site by separate contract, but the City cannot provide any guarantees. The premises owner, business owner, and operator assume all risk associated with water supply to the site, including all costs associated therewith. The premises owner, business owner, operator, and all responsible parties shall hold harmless, release, indemnify, and defend the City, its officers, employees, and agents, from any liability associated with the curtailment of water because of the foregoing. This release includes any damages to the premises owner, business owner, operator, and all responsible parties, its employees and contractors, and third parties, and includes the risk of lost revenue, profits and consequential damages. (sp) Fees and taxes. All cannabis operations shall pay applicable fees and taxes, which may include one or more of the following:
(1) Business license fee. The business owner shall at all times maintain a current and valid business certificate and pay all business taxes required by Title 3, Chapter 1, of the Coalinga Municipal Code pertaining to business licensing.
(2) Regulatory license fee. The business owner shall pay an annual regulatory license fee ("regulatory fee") to cover the costs of anticipated enforcement relating to the cannabis operation. The amount of the fee shall be set by resolution of the City Council and be supported by the estimated additional costs of enforcement and monitoring associated with the cannabis operation. The regulatory fee shall be due and payable prior to opening for business and thereafter on January 1 each year thereafter. The regulatory fee may be amended from time to time based upon actual costs. (3) Revenue raising fee (voter approved tax). An annual revenue raising fee ("revenue fee") for the privilege of having the right to operate in the City as approved by the local citizens or by applicable Council Resolution.
a. Terms of payment. The square footage calculation shall be determined by including all portions of the premises under the control of the business owner and deducting therefrom driveways, sidewalks, landscaping, vacant unused space, areas used exclusively for office space, employee break rooms, restrooms, and storage space unrelated to the commercial cannabis operation (such as a janitorial closet). Anywhere cannabis is located or is expected to be located shall be subject to the revenue fee square foot calculation.

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quarterly payment due prior to issuance of a certificate of occupancy. The first payment shall be prorated so that future payments coincide with calendar year quarters, but in no event shall the first payment be less than the equivalent of one full quarterly payment. Except for the first quarterly payment, all quarterly payments shall be received by the City no later than thirty (30) days after the end of the quarter.
(4) All other state and local rules.
(dq) Minimum operational requirements and restrictions. The following operational requirements and restrictions shall apply to all commercial cannabis operations:
(1) The Act and other state laws. The cannabis operations shall at all times be in compliance with the Act and the implementing regulations, as they may be amended from time to time, as well as all required State license(s) under the Act, and any other applicable State law. The operator shall obtain required licenses under the Act prior to opening for business, or if the State is not ready to issue licenses under the Act prior to the time of opening, within twelve (12) months of the State being ready to issue the required license(s). Provided, however, that the operator shall at all times be in compliance with all other requirements of the Act and implementing regulations, and any other applicable State law, regardless of the timing of the issuance of a license under the Act. (2) Register of employees. The operator shall maintain a current register of the names of persons required to have employee permitsemployed by the operator. An updated employee register shall be provided to the Police Chief on a quarterly basis. The register shall be available to the Police Chief at all times immediately upon request.
(3) Signage. There shall be no signage or markings on the premises, or off-site, which in any way evidences that cannabis operations are occurring on the property. Interior building signage is permissible provided the signage is not visible outside of the building. (4) Cannabis consumption. No cannabis shall be smoked, ingested or otherwise consumed on the premises, except when the business is a licensed retail cannabis operation authorized to operate a consumption lounge in accordance with Section 9-5.128(u)(22). Adequate signage of this prohibition shall be displayed throughout the facility.
(5) Distribution. There shall be no distribution of cannabis or cannabis containing products from a cannabis operation except by another State or local licensed or permitted cannabis business holding a distributor license.
(6) Manufacturers. Manufacturers shall adhere to Assembly Bill 2679, applicable State Law and subsequent state regulations.
(7) Testing facilities. Testing facilities shall meet all the requirements of State Law (including B&P Code 26100 and all subsequent State Department Regulations). a. Testing laboratories shall dispose of any waste byproduct resulting from their operations in the manner required by State and local laws and regulations.
(85) Non-commercial cannabis activity. No non-commercial cannabis activity shall occur on the licensed premises.
(9) Retail sales. The retail sale of cannabis is permitted in accordance with Section 9-5.129. (106) Public access. There shall be no public access to the commercial cannabis operations premises except for retail facilities.

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(117) Minors. It shall be unlawful for any operator to employ any person who is not at least twenty-one (21) years of age, or any older age if set by the State.
(12) Distance separation from schools. Cannabis operations shall comply with the distance separation requirements from schools as required by State law. In addition, a commercial cannabis operation shall not be located within 930 feet from any existing school or proposed school site as identified in the General Plan. Measurements shall be from property boundary to property boundary. For purposes of this section, school means any public or private school providing instruction in kindergarten or grades 1—12, inclusive, but does not include any private school in which education is primarily conducted in private homes.
(138) Hours of operation. Commercial cannabis operations shall be allowed to operate per the requirements of an approved conditional use permit and subject to the City's noise and nuisance ordinances. (149) Building and related codes. The cannabis operation shall be subject to the following requirements as applicable:
a. The premises in which the cannabis operations occur shall comply with all applicable local, state and federal laws, rules, and regulations including, but not limited to, building codes and the Americans with Disabilities Act, as certified by the Building Official of the City. The operator shall obtain all required building permits and comply with all applicable City standards. b. The responsible party shall ensure that the premises has sufficient electrical load for the cannabis operations.
c. Butane and other flammable materials are permitted to be used for extraction and processing provided the operator complies with all applicable fire and building codes, and any other laws and regulations relating to the use of those products, to ensure the safety of that operation. The Coalinga Fire Department shall inspect and approve the premises for use of the products prior to City's issuance of a certificate of occupancy, or otherwise prior to opening for business, to ensure compliance with this requirement.
d. The operator shall comply with all laws and regulations pertaining to use of commercial kitchen facilities for the cannabis operations.
e. The operator shall comply with all environmental laws and regulations pertaining to the cannabis operations, including the use and disposal of water and pesticides, and shall otherwise use best practices to avoid environmental harm.
(1510) Odor control. Except for outdoor cultivation, cannabis operations shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the facility that is distinctive to its operation is not detected outside the premises, outside the building housing of the cannabis operations, or anywhere on adjacent property or public rights-of-way. As such, cannabis operations must install and maintain the following equipment or any other equipment which the City's Building Official and Police Chief determines has the same or better effectiveness, if a smell extends beyond a property line:
a. An exhaust air filtration system with odor control that prevents internal odors and pollen from being emitted externally; or
b. An air system that creates negative air pressure between the cannabis facility's interior and exterior so that the odors generated inside the cannabis facility are not detectable outside the cannabis facility.
(t11) Record keeping. The responsible party shall make and maintain complete, accurate and legible records of the permitted cannabis operations evidencing compliance with the requirements of this section.

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Those records shall be maintained for a minimum of seven (7) years and shall be accessible to the City of Coalinga upon request.
(12) Insurance. The business owner shall at all times carry a comprehensive general liability policy in the minimum amount of one million dollars ($1,000,000.00) combined single limit policy, as shall protect the business owner and city from claims for such damages, and which policy shall be issued by an "A" rated insurance carrier. Such policy or policies shall be written on an occurrence form. The City Manager, in consultation with City's Risk Manager, may allow the business owner to obtain lesser amounts of insurance where multiple business Owners are operating on the premises, provided at all times the minimum insurance set forth herein is applicable to the cannabis operations.

The business owner shall furnish a notarized certificate of insurance countersigned by an authorized agent of the insurance carrier on a form approved by City setting forth the general provisions of the insurance coverage. This countersigned certificate shall name City and its respective officers, agents, employees, and volunteers, as additionally insured parties under the policy, and the certificate shall be accompanied by a duly executed endorsement evidencing such additional insured status. The certificate and endorsement by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination.

Coverage provided hereunder by the business owner shall be primary insurance and not be contributing with any insurance maintained by City, and the policy shall contain such an endorsement.

The insurance policy or the endorsement shall contain a waiver of subrogation for the benefit of City. (13) Surety Bond Requirement.
a. Surety Bond Required. Prior to the issuance or renewal of any cannabis regulatory permit, the applicant shall obtain and maintain a surety bond executed by a corporate surety authorized to transact surety business in the State of California. The bond shall be payable to the City and shall be conditioned upon the permittee's faithful compliance with all applicable provisions of this Chapter, including but not limited to the timely payment of all cannabis business taxes and other fees or obligations owed to the City.
b. Bond Amount. The required bond amount shall be no less than an amount equal to one (1) calendar quarter of the permittee's estimated annual cannabis business tax obligation, as determined by the City Finance Director.

1. For permittees subject to the cannabis business tax based on gross receipts, the required bond amount shall equal no less than one (1) calendar quarter of the permittee's estimated annual cannabis business tax obligation, as determined by the City Finance Director based on the most recent tax return filed by the permittee or projected gross receipts submitted with the permit application.

2. For permittees subject to the cannabis business tax based on facility square footage, the required bond amount shall be no less than an amount equal to one (1) calendar quarter of the permittee's annual cannabis business tax obligation.

3. For applicants with no prior cannabis business tax filing history in the City, the Finance Director shall estimate the bond amount based on projected gross receipts or facility square footage identified in the permit application, comparable operator data, or such other reasonable methodology as the Finance Director deems appropriate. Upon the permittee's first annual renewal, the bond amount shall be recalculated based on actual tax filings and adjusted accordingly.

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4. The Finance Director shall recalculate the required bond amount at each permit renewal. If a permittee's recalculated bond requirement exceeds the face value of the existing bond, the permittee shall provide an endorsement increasing the bond to the required amount, or a replacement bond, no later than thirty (30) days prior to the permit renewal date.

Failure to do so shall constitute grounds for non-renewal of the permit. c. Authorized Uses of Bond Proceeds. The City may make a claim against the surety bond and draw upon bond proceeds for any of the following purposes:

1. Recovery of delinquent cannabis business taxes, penalties, and interest owed to the City;

2. Costs incurred by the City in connection with the inspection, investigation, enforcement, or abatement of violations of this Chapter or any applicable state or local cannabis regulation;

3. Costs of seizure, storage, disposal, or destruction of cannabis or cannabis products necessitated by a violation of licensing or permit requirements; and

4. Any other costs, fees, or obligations owed by the permittee to the City arising from the operation of a cannabis business.
d. Notice and Claim Procedure. Before drawing on the bond, the City shall provide written notice to the permittee and the surety identifying the nature and amount of the claim. The permittee shall have ten (10) calendar days from the date of such notice to cure the identified deficiency or default, unless the City Manager determines that an emergency or ongoing harm to public health, safety, or welfare requires immediate action. Failure to cure within the notice period shall authorize the City to proceed with a claim against the surety. e. Continuous Coverage Required. The surety bond shall remain in full force and effect for the duration of the permit term and shall not be cancelled, reduced, or allowed to lapse without at least thirty (30) days' prior written notice to the City. Cancellation or lapse of the required bond shall constitute grounds for immediate suspension of the cannabis regulatory permit. The permittee shall provide a replacement bond meeting the requirements of this Section within ten (10) calendar days of any cancellation or reduction.
(2014) Cannabis Businesses shall operate in compliance with Division 10 of the Business and Professions Code and Title 4, Division 19 of the California Code of Regulations, as may be amended under State law.
(2015) Premises maintenance. The business owner, operator, and all responsible parties shall continually maintain the premises and its infrastructure so that it is visually attractive and not dangerous to the health, safety and general welfare of employees, patrons, surrounding properties, and the general public. The premises or commercial cannabis operation shall not be maintained in a manner that causes a public or private nuisance.
(2116) Location of uses. The commercial cannabis operation permitted by this section shall only be allowed in the locations designated on the diagram and floor plan of the premises submitted with the application for a regulatory permit. The commercial cannabis operation shall not operate at any place other than the address of the cannabis operation stated in the regulatory permit. (er) Security Requirements.
(171) Secure building. All cannabis operations, except outdoor cultivation, shall occur entirely inside of a building that shall be secure, locked, and fully enclosed, with a ceiling, roof or top.

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a. The building shall include a burglar alarm monitored by an alarm company or private security company.
b. The primary building, including all walls, doors, and the roof, shall be of solid construction meeting the minimum building code requirements for industrial structures (including, without limitation, commercial greenhouse structures), and include material strong enough to prevent entry except through an open door. The roof may be of solid translucent material provided other security measures exist to ensure that the cannabis operation cannot be seen, heard or smelled beyond the property line.
c. Greenhouses shall be considered ancillary to the primary use/structure and constructed in accordance with the California Building Code related to utility structures. Greenhouses shall be secured in way, as approved by the Police Chief, to prevent vehicle intrusion. d. The precise building construction and material to be used shall be identified and provided to the City prior to construction and provided with the application. (182) Premises security. The following security conditions shall apply:
a. Alarm system (both perimeter, fire and panic).
b. Remote monitoring of alarm systems.
c. Perimeter lighting systems (motion sensor) for after-hours security. d. Perimeter security and lighting as approved by the Police Chief and Community Development Director.
e. Use of drive gates with card key access or similar to access the facility. f. Entrance areas to be locked at all times areas, and under the control of a designated responsible party.
g. Use of access control systems to limit access to cannabis related areas. h. Exterior and interior camera systems approved by the Police Chief. The camera systems shall meet the minimum requirements of the Act, include interior monitoring of all access points of the site from the interior, and be of a minimum resolution in order to read license plates and facial recognition from all exterior and interior locations. i. All security systems at the site are attached to an uninterruptable power supply that provides twenty-four (24) hours of power.
j. Security patrols by a recognized security company licensed by the California Department of Consumer Affairs or otherwise acceptable to the Police Chief. k. All current contact information regarding the security company shall be provided to the Police Chief.
l. Coalinga Police Department or department designee shall have access to all security systems. m. Subject to the provisions below regarding the use and handling of confidential information, IP access for remote monitoring of security cameras by the Coalinga Police Department or Department designee.
n. Subject to the provisions below regarding the use and handling of confidential information, any and all video or audio tape recordings made for security or other purposes shall be marked with the date and time made and shall be kept, in an unaltered state, for a period of thirty (30) days and must be made available to the Coalinga Police Department or Department designee for duplication upon demand. In addition, upon request by the Coalinga Police Department the Created: 2025-06-23 07:43:18 [EST]
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responsible party shall duplicate the records for the Coalinga Police Department or Department designee.
o. Hardened bullet resistant windows, or an alternative method of protection such as safety and security window film, approved by the Police Chief, for exterior windows as part of any new or existing construction.
p. Accounting software systems need to be in place to provide audit trails of both product and cash, where applicable.
q. Electronic track and trace systems for cannabis products as approved by the Police Chief. r. Premises may be inspected and records of the business owner audited by the City for compliance at any time.
s. State of the art network security protocols and equipment need to be in place to protect computer information.
t. The foregoing requirements shall be approved by the Police Chief prior to commencing operations. The Police Chief may supplement these security requirements once operations begin, subject to review by the City Council if requested by the business owner.

Confidentiality Statement
The City, Police Chief, Police Department employees, and any other law enforcement official acting under the direction of the Police Chief who access the premises and video and/or audio feeds or recordings of the premises ("recipients") may receive or be provided with confidential information relating to the cannabis operations, which may include the following: Data, records, plans, and matters relating to customers, vendors, tenants, agreements, and business records (collectively "confidential information").

To the extent confidential information is acquired from access to the premises and video and/or audio feeds or recordings as authorized under this section, the recipients shall, to the maximum extent possible, keep such confidential information confidential and not disclose the confidential information to any third parties. Provided, however, that the recipients may disclose confidential information to the State or Federal courts in California in connection with any criminal law enforcement action against the business owner or operator, (including its employees, contractors and agents conducting business within the premises) arising from or related to the cannabis operations, but only to the extent it is necessary and relevant to such criminal prosecution, and the recipients shall file any such documents under seal to the extent they contain any confidential information.

Notwithstanding the foregoing, the City may disclose confidential information:

1. As may be required by the California Public Records Act or pursuant to a civil subpoena, provided however, the City shall notify the operator and provide the operator with a reasonable opportunity to obtain a protective order before disclosing the confidential information.

2. In connection with any City enforcement proceeding relating to compliance with City's Municipal Code and this section, but only to the extent the confidential information is relevant to the proceeding. (193) Deliveries of supplies and transportation of product. The transportation of cannabis and cannabis products shall only be conducted by persons holding a State distributor license or employees of those persons and shall follow all the regulations and safety standards established by the Bureau of Cannabis Control.
(22) Outdoor cultivation.
a. Distance separation from Residences. No outdoor cultivation will be permitted within one (1) mile of any Residential Zoning District at the time a conditional use permit is issued.

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Measurements shall be from property boundary to property boundary. Areas where cannabis is cultivated shall be screened from public view adjacent to the premises by fencing, structures or vegetation.
b. Premises security. Security requirements for outdoor cultivation shall be approved by Council resolution. Absent a resolution by the City Council, the Police Chief shall establish reasonable security requirements for the cannabis operation through the issuance of the regulatory permit.
c. Processing of cannabis products. Outdoor cannabis operation shall occur in a primary structure and constructed/improved in accordance with the California Building Code related to main or utility structures unless the crop is directly distributed to a licensed manufacturing or processing facility on the same parcel. Outdoor cultivation on undeveloped vacant lots shall have a main building that is Title 24 compliant to support the operations.
d. Environmental considerations. All persons engaging in the cultivation of cannabis outdoors shall comply with the State of California's General Environmental Protection Measures including: (1) have a legal water source on the premises, (2) not draw groundwater for the purposes of irrigation, (3) not allow illicit discharges of irrigation or storm water from the premises, (4) not allow the off-site drift or discharge of chemicals, (5) and; be connected to the City of Coalinga sewer system.
e. Disposal of waste material. Cannabis waste material shall be disposed in accordance with State Law. No burning of cannabis waste is permitted.
f. Cultivation plan. A cultivation plan shall be submitted to the City as part of the application process for conditional use permit and regulatory permit. The requirements for the cultivation plan shall be consistent with that of Section 8106 of the California Code of Regulations or as amended.
(e) Commercial cannabis regulatory permit. No person or entity shall operate a commercial cannabis operation within the City of Coalinga without first obtaining a commercial cannabis regulatory permit from the City.

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c. Tax identification number.
d. The address to which notices relating to the application is to be mailed. e. Previous addresses for the five (5) years immediately preceding the present. f. The height, weight, color of eyes and hair.
g. Photographs for identification purposes (photographs shall be taken by the Police Department). h. All business, occupation, or employment for the five (5) years immediately preceding the date of submittal of the application form.
i. The cannabis operation business history, including whether the business owner and responsible parties while previously operating in this or another city, county or state has had a cannabis related license revoked or suspended, the reason therefore, and the business or activity or occupation subsequent to such action of suspension or revocation. j. Complete property ownership and lease details, where applicable. If the business owner is not the premises owner, the application form must be accompanied with a notarized acknowledgment from the premises owner that cannabis operations will occur on its property. k. A descriptive business plan for the cannabis operation, including a detailed list of all cannabis operations proposed to occur on the premises.
l. A diagram and floor plan of the entire premises, denoting all the use of areas proposed for cannabis operations, including, but not necessarily limited to, cultivation, processing, manufacturing, testing, transportation, deliveries, and storage. The diagram and floor plan need not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six (6) inches. m. The name or names of the operator. The operator shall designate one or more responsible parties, one of which shall at all times be available as a point of contact for the City, twenty-four (24) hours per day. The contact information and schedule of the operator and responsible parties shall be provided to the Police Chief and updated within twenty-four (24) hours of any changes. n. The proposed security arrangements for insuring the safety of persons and to protect the premises from theft.
o. An accurate straight-line drawing prepared within thirty (30) days prior to the application depicting the building and the portion thereof to be occupied by the cannabis operation and the property line of any school as set forth in the operational requirements. p. A descriptive operations plan for the cannabis operation that shall include, but not be limited to, standard operating procedures, training program, number of employees, inventory procedures, waste management plan, quality control procedures, pest management, estimated water use, and equipment storage.
q. Authorization for the City, its agents and employees to seek verification of the information submitted.
(2) Improper or incomplete application. If the applicant has completed the application improperly, or if the application is incomplete, the Police Chief shall, within thirty (30) days of receipt of the original application, notify the applicant of such fact.
(3) Changes in information. Except as may otherwise be provided, the information provided in this subsection shall be updated to the Police Chief upon any change within ten (10) days.

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(4) Other permits or licenses. The fact that an applicant possesses other types of State or City permits or licenses does not exempt the applicant from the requirement of obtaining a regulatory permit. (h) Employee permits.
(1) Permit required. Every employee or independent contractor working at a commercial cannabis operation shall obtain an employee permit. It shall be the duty of the operator to ensure that employee permits are obtained from the Police Department prior to the employee or independent contractor commencing work. Persons who are listed as a business owner on a regulatory permit shall not be required to obtain an employee permit if such person also serves as an employee or contractor.

All responsible parties, except the business owner, shall be required to obtain an employee permit. (2) Application. Each employee and independent contractor shall be required to provide the following information under penalty of perjury, so that the Police Department can perform a background check:
a. Name, current resident address, and telephone number. b. Date of birth.
c. Tax identification number.
d. Height, weight, color of eyes, and hair.
e. Photographs for identification purposes (photographs shall be taken by the Police Department). f. Be fingerprinted by the Police Department.
g. Such other identification and information as deemed necessary by the Police Chief and pertinent to the employee permit.
h. Authorization for the City, its agents and employees to seek verification of the information contained within the application.
i. The name of the business owner holding the regulatory permit and the operator for which such person is proposed to work.
(i) Application fees. Every application for a regulatory permit and employee permit shall be accompanied by a nonrefundable fee, as established by resolution of City Council. This fee shall be in addition to any other business license fee or permit fee imposed by this Code or other governmental agencies. The fee shall include an amount to cover the costs of fingerprinting, photographing, background checks as well as general review and processing of the application.
(j) Investigation and action on application.
(1) Upon the filing of a properly completed application and the payment of the fee, the police chief shall conduct an investigation of the application, including a background check of the applicant and all employees and independent contractors. All applicants for a regulatory permit and employee permit shall be required to submit to a fingerprint-based criminal history records check conducted by the Coalinga Police Department.
(2) For regulatory permits, after the background checks and investigation are complete, the Police Chief shall approve or deny a regulatory permit in accordance with the provisions of this section. The recommendation for approval shall include conditions the Police Chief deems reasonable under the circumstances to protect the public health, safety, and welfare of the community. (3) For employee permits, after the background checks and investigation are complete, the Police Chief shall either approve or deny an employee permit. At the discretion of the Police Chief, employee permits may be conditionally approved pending the background investigation.

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(k) Term of permits and renewals. Regulatory permits issued under this chapter shall expire one year following the date of issuance. Applications for renewal shall be made at least forty-five (45) days prior to the expiration date of the permit and shall be accompanied by the nonrefundable fee referenced in this section.

When made less than forty-five (45) days before the expiration date, the expiration of the permit will not be stayed. Applications for renewal shall be acted on similar to applications for permits except that the Police Chief shall renew annual permits for additional one year periods if the circumstances and information provided with the initial application have not materially changed. (l) Grounds for denial of regulatory permit. The grounds for denial of a regulatory permit shall be one or more of the following:
(1) The business or conduct of the business at a particular location is prohibited by any local or State law, statute, rule or regulation.
(2) The business owner or operator has been issued a local or state permit related to cannabis operations at any other location in California, or another state, and that permit was suspended or revoked, or the business owner or operator has had disciplinary action relating to the permit. (3) The business owner or operator has knowingly made a false statement of material fact or has knowingly omitted to state a material fact in the application. (4) Consistent with the Act or other applicable State law, the business or its owners or operators, or any responsible person, has been ineligible for a license under the Acts requirements. (5) Consistent with the Act or other applicable State law, the business owner or operator has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices. (6) The business owner or operator is under twenty-one (21) years of age, or any older other age set by the State.
(7) The cannabis operation does not comply with the zoning ordinance standards of the City of Coalinga or the development standards set forth in this title.
(8) The required annual business license fee, annual regulatory fee or revenue raising fee has not been paid.
(m) Grounds for denial of employee permit. The grounds for denial of an employee permit shall be one or more of the following:
(1) The applicant has been issued a local or state permit related to cannabis operations at any other location in California, or another state, and that permit was suspended or revoked, or the applicant has had disciplinary action relating to the permit.
(2) The employee is ineligible for employment under the requirements of the Act. (3) Consistent with the Act or other applicable State law, the applicant has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices. (4) The applicant has committed any act, which, if done by a permittee, would be grounds for suspension or revocation of a permit.
(5) An applicant is under twenty-one (21) years of age, or any older age set by the State. (n) Notice of decision and final action.
(1) Regulatory permit. Action on the regulatory permit shall be as follows:
a. The Police Chief shall cause a written notice of his or her recommendation on the issuance or denial of a regulatory permit, and the date and time when the City Council will consider action on Created: 2025-06-23 07:43:18 [EST]
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the regulatory permit, to be personally delivered or mailed to the applicant by certified U.S. mail, postage prepaid.
b. Following a public hearing before the City Council, the Council may grant the regulatory permit subject to such conditions as it deems reasonable under the circumstances to protect the public health, safety, and welfare of the community, or it may deny the issuance of the regulatory permit for any of the grounds specified in this section. The decision of the Council shall be final, subject to judicial review below.
(2) Employee permit. Action on the employee permit shall be as follows:
a. The Police Chief shall cause a written notice of his or her determination on the issuance or denial of an employee permit to be personally delivered or mailed to the applicant by certified U.S. mail, postage prepaid. The Police Chiefs decision on an employee permit shall be final, subject to judicial review.
(o) Suspension and revocation of regulatory permit or employee permit. (1) Regulatory permit. The City Council may suspend or revoke the regulatory permit of a commercial cannabis operation when any of the following occur:
a. The cannabis operation is conducted in violation of any provision of this section, the Act, or any other applicable state law.
b. The cannabis operation is conducted in such a manner as to create a public or private nuisance. c. A failure to pay the regulatory fee or revenue raising fee required by this section. d. A failure to take reasonable measures to control patron conduct, where applicable, resulting in disturbances, vandalism, or crowd control problems occurring inside of or outside the premises, traffic control problems, or obstruction of the operation of another business. e. A failure to comply with the terms and conditions of the regulatory permit or any conditional use permit issued in connection therewith.
f. Any act which would be considered grounds for denial of the regulatory permit in the first instance.
g. Failure to reasonably comply with the recommendations and action items identified on the City's monitoring and compliance reports.
(2) Employee permit. The Police Chief may suspend or revoke an employee permit when the permittee or the employee has committed any one or more of the following acts:
a. Any act which would be considered a ground for denial of the permit in the first instance. b. Violates any provision of this section, the Act, or any other applicable law relating to the cannabis operation.
c. Violates or fails to comply with the terms and conditions of the employee permit. (3) Procedures for revoking regulatory permits. For regulatory permits, the procedures for revoking conditional use permits shall be utilized except that the matter shall be heard by the City Council in the first instance, and shall be subject to the same judicial process as applied to a conditional use permit. (See, Coalinga Municipal Code Section 9-6.114, Effective dates, expiration, extensions, modifications, and revocation of approvals.)
(4) Procedures for revoking employee permits. Prior to suspension or revocation of an employee permit, the Police Chief shall conduct a hearing. Written notice of the time and place of such hearing shall be served upon the permittee at least five (5) calendar days prior to the date set for such hearing. The Created: 2025-06-23 07:43:18 [EST]
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notice shall contain a brief statement of the grounds to be relied upon for revoking or suspending the permit. Notice may be given either by personal delivery or by certified U.S. mail, postage prepaid. Any permittee aggrieved by the decision of the Police Chief in suspending or revoking an employee permit shall have no appeal rights and the Police Chiefs decision shall be final, subject to judicial review as set forth in this section.
(5) Immediate suspension. The Police Chief may immediately suspend or revoke a regulatory permit and an employee permit without notice or a hearing, subject to the appeal rights set forth herein, under either of the following circumstances:
a. The business owner or operator is convicted of a public offense in any court for the violation of any law which relates to the cannabis operation, or in the case of an employee permit, the employee is convicted of a public offense in any court for the violation of any law which relates to the permit.
b. The Police Chief determines that immediate suspension is necessary to protect the public health, safety, and welfare of the community. The Police Chief shall articulate the grounds for the immediate suspension in writing and the suspension shall only be for as long as necessary to address the circumstances which led to the immediate suspension. (p) Effect of denial or revocation. When the City Council shall have denied a regulatory permit or revoked a regulatory permit, or the Police Chief shall have denied or revoked an employee permit, no new application for a regulatory permit and no new application for an employee permit shall be accepted and no regulatory permit or employee permit shall be issued to such person or to any corporation in which he or she shall have any beneficial interest for a period of one year after the action denying or revoking the regulatory permit or employee permit.
(q) Abandonment. In addition to the suspension or revocation of a regulatory permit, a regulatory permit shall be deemed abandoned if cannabis operations cease for a period of more than ninety (90) consecutive days.

Before restarting operations, a new regulatory permit shall be secured. The ninety (90) day period shall be tolled during periods of force majeure, which shall be defined as follows: War; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; supernatural causes; acts of the "public enemy"; epidemics; quarantine restrictions; freight embargoes; lack of transportation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; or any other causes beyond the reasonable control of the permittee.
(r) Water availability. As a condition of opening for business, the premises owner, business owner, operator, and all responsible parties shall be deemed to have acknowledged and agreed to the following if the cannabis operation is connected to the City's water system.

The City's source of water comes through a contract with the Bureau of Reclamation ("Bureau"). The Bureau has indicated that it will report the use of City water for cannabis operations to the Department of Justice. While the City believes that supplying water to the site does not impair the Bureau contract, should the Bureau, Department of Justice, or other governing agency take actions affecting the City's Bureau contract because of the cannabis operation, the City may be forced to curtail or commingle water supply to the site. Under those circumstances, the cannabis operation may be required to find alternative sources of water supply. If that happens, the City agrees to work with the premises owner, business owner, and operator to find an alternative water source, which may include the commingling of water, accessing a well, or having water delivered to the site by separate contract, but the City cannot provide any guarantees. The premises owner, business owner, and operator assume all risk associated with water supply to the site, including all costs associated therewith. The premises owner, business owner, operator, and all responsible parties shall hold harmless, release, indemnify, and defend the City, its officers, employees, and agents, from any liability associated with the curtailment of water because of the foregoing. This release includes any damages to the Created: 2025-06-23 07:43:18 [EST]
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premises owner, business owner, operator, and all responsible parties, its employees and contractors, and third parties, and includes the risk of lost revenue, profits and consequential damages. (s) Fees and taxes. All cannabis operations shall pay applicable fees and taxes, which may include one or more of the following:
(1) Business license fee. The business owner shall at all times maintain a current and valid business certificate and pay all business taxes required by Title 3, Chapter 1, of the Coalinga Municipal Code pertaining to business licensing.
(2) Regulatory license fee. The business owner shall pay an annual regulatory license fee ("regulatory fee") to cover the costs of anticipated enforcement relating to the cannabis operation. The amount of the fee shall be set by resolution of the City Council and be supported by the estimated additional costs of enforcement and monitoring associated with the cannabis operation. The regulatory fee shall be due and payable prior to opening for business and thereafter on January 1 each year thereafter. The regulatory fee may be amended from time to time based upon actual costs.
(3) Revenue raising fee (voter approved tax). An annual revenue raising fee ("revenue fee") for the privilege of having the right to operate in the City as approved by the local citizens or by applicable Council Resolution. a. Terms of payment. The square footage calculation shall be determined by including all portions of the premises under the control of the business owner and deducting therefrom driveways, sidewalks, landscaping, vacant unused space, areas used exclusively for office space, employee break rooms, restrooms, and storage space unrelated to the commercial cannabis operation (such as a janitorial closet). Anywhere cannabis is located or is expected to be located shall be subject to the revenue fee square foot calculation.

If more than one commercial cannabis operation operates on the premises, whether within a single building or multiple buildings, each regulatory permit holder shall be responsible for paying the fee. The fee shall be payable in advance, in not less than quarterly installments, with the first quarterly payment due prior to issuance of a certificate of occupancy. The first payment shall be prorated so that future payments coincide with calendar year quarters, but in no event shall the first payment be less than the equivalent of one full quarterly payment. Except for the first quarterly payment, all quarterly payments shall be received by the City no later than thirty (30) days after the end of the quarter. (4) All other state and local rules.
(t) Record keeping. The responsible party shall make and maintain complete, accurate and legible records of the permitted cannabis operations evidencing compliance with the requirements of this section. Those records shall be maintained for a minimum of five (5) years and shall be accessible to the City of Coalinga upon request.
(u) Inspection. Cannabis operations shall be open for inspection by any City law enforcement officer, staff member or any other City designated agent at any time the cannabis operation is operating, at any other time upon responding to a call for service related to the property where the Cannabis operations is occurring, or otherwise upon reasonable notice. Recordings made by security cameras at any cannabis operation shall be made immediately available to the Police Chief upon verbal request. No search warrant or subpoena shall be needed to view the recorded materials. (v) Indemnification. In authorizing commercial cannabis operations under this section, the City makes no guarantees or promises as to the lawfulness of the approved activity under State or Federal law, and the business owner, operator and all responsible parties are obligated to comply with all applicable laws. To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to the adoption of this section or the operation of any commercial cannabis operation approved pursuant to this section or under State or federal law. The business owner, operator and all responsible parties shall defend, hold harmless, release, and indemnify the City, its agents, officers, and employees, from any liability Created: 2025-06-23 07:43:18 [EST]
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associated with the approved use or adverse determinations made by the State or Federal government. An adverse determination could include cessation of operations.

The business owner agrees to reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge related to commercial cannabis operations operating under the authority of this section. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the permittee of its obligation hereunder.

If requested by the City Attorney, the business owner shall execute an agreement memorializing the requirements of this subsection.
(w) Insurance. The business owner shall at all times carry a comprehensive general liability policy in the minimum amount of one million dollars ($1,000,000.00) combined single limit policy, as shall protect the business owner and city from claims for such damages, and which policy shall be issued by an "A" rated insurance carrier. Such policy or policies shall be written on an occurrence form. The City Manager, in consultation with City's Risk Manager, may allow the business owner to obtain lesser amounts of insurance where multiple business Owners are operating on the premises, provided at all times the minimum insurance set forth herein is applicable to the cannabis operations.

This countersigned certificate shall name City and its respective officers, agents, employees, and volunteers, as additionally insured parties under the policy, and the certificate shall be accompanied by a duly executed endorsement evidencing such additional insured status. The certificate and endorsement by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination.

Coverage provided hereunder by the business owner shall be primary insurance and not be contributing with any insurance maintained by City, and the policy shall contain such an endorsement. The insurance policy or the endorsement shall contain a waiver of subrogation for the benefit of City. (x) Bond requirement. The applicant shall provide proof of a bond in the amount of twenty-five thousand dollars ($25,000.00) to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.
(y) Violations: Enforcement.
(1) Any person that violates any provision of this section shall be guilty of a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be penalized accordingly.
(2) Any use or condition caused or permitted to exist in violation of any of the provisions of this section shall be and is hereby declared a public nuisance and may be summarily abated by the City pursuant to the City of Coalinga Municipal Code.
(3) Any person who violates, causes, or permits another person to violate any provision of this section commits a misdemeanor.
(4) The violation of any provision of this section shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of City, create a cause of action for injunctive relief. (5) In addition to the civil remedies and criminal penalties set forth above, any person that violates the provisions of this section may be subject to an administrative fine of up to one thousand dollars ($1,000.00) for each violation and for each day the violation continues to persist.

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(z) Severability. The provisions of this section are hereby declared to be severable. If any provision, clause, word, sentence, or paragraph of this section or of the regulatory permit issued pursuant to this section, or the application thereof to any person, establishment, or circumstances shall be held invalid, such invalidity shall not affect the other provisions of this section.
(aa) Judicial review. Judicial review of a decision made under this section or any actions taken pursuant to this section, may be had by filing a petition for a writ of mandate with the superior court in accordance with the provisions of the California Code of Civil Procedure Section 1094.5. Any such petition shall be filed within ninety (90) days after the day the decision becomes final as provided in California Code of Civil Procedure Section 1994.6, which shall be applicable for such actions. (fu) Retail Operating Requirements.
(1) Cannabis retail facilities shall operate in compliance with Division 10 of the Business and Professions Code and Title 4, Division 19, Chapter 10 of the California Code of Regulations, as may be amended under State law.
(2) Cannabis retail facilities may not be operated by any persons who have been convicted of a felony in the last five (5) years or a prescribed by law.
(2) No dispensing of cannabis to a customer shall be permitted more than twice a day. (3) Hours: The hours of operation of cannabis retail facilities shall be no earlier than 6:00 a.m. and no later than 9:00 p.m. unless approved for different hours under an approved CUP and prescribed by state law.
(4) Cannabis retail facilities shall display their customer rules and/or regulations in a conspicuous place that is readily seen by all persons entering the cannabis retail facility. (5) Unless operating as a consumption lounge, smoking, ingesting or otherwise consuming cannabis products on the premises of a cannabis retail facility is prohibited. Each building entrance to a cannabis retail facility shall be clearly and legibly posted with a notice indicating that smoking, ingesting or consuming cannabis or cannabis edibles on the premises or in the vicinity of the retail facility is prohibited.
(6) Each building entrance to a cannabis retail facility shall be clearly and legibly posted with a notice indicating that persons under the age of eighteen (18) are precluded from entering the premises unless they are qualified patients and they are accompanied by their parent or legal guardian. In order to protect the public health, safety and welfare, the Police Chief may require alternative or secondary entrance for a consumption lounge/café.
(7) All cannabis retail facilities shall display a copy of the inspection receipt issued by the Fresno County Office of Weights and Measures Division for all weighing and measuring devices. (8) An up-to-date inventory of all hazardous materials stored and used onsite shall be maintained on the premises of the retail facility available for inspection on demand of the City. (9) Location from sensitive uses.
a. A retail premises/facility permitted under this division shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued. b. A retail premises/facility shall not be located within 100 feet of a residential district. c. The distance specified in this section shall be measured in the same manner as provided in subdivision (c) of Section 11362.768 of the Health and Safety Code unless otherwise provided by law.

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(10) Cannabis retail facilities shall maintain all necessary permits, and pay all required taxes and fees. Retail facilities shall also provide invoices to vendors to ensure vendor's tax liability responsibility. (11) Cannabis retail facilities shall implement their policies and procedures as outlined in their Operations Manual. Cannabis retail facilities shall comply with any and all conditions of their conditional use permit and regulatory permit.
(12) Parking: Off-street parking shall be provided as required for food and beverage retail sales under Section 9-4.302 of this Code. All required parking shall be off-street and on-site unless located in the plaza on 5th Street between Cedar and Elm Ave and on Durian Between 4th and 6th Street. This requirement applies to existing and new facilities.
(13) Facility size: The cannabis retail facility size shall be limited to 10,000 square feet. (14) Signage. One attached sign per street frontage shall not to exceed twelve (12) square feet in area or twenty (20) percent of the window area of the retail facility, whichever is less, is permitted unless a larger sign is permitted under a conditional use permit not exceeding that of the Downtown Overlay District. A detached sign is not permitted.
a. All retail facilities shall display on their wall sign or identification sign, the name and emergency contact phone number of the operator or manager in letters at least two (2) inches in height. b. Retail facilities shall post a legible indoor sign in a conspicuous location containing the following warnings:

1. That the use of cannabis is for persons at least twenty-one (21) years of age, or an age younger as prescribed by law;

2. That the use of cannabis may impair a person's ability to drive a motor vehicle or operate machinery; and

3. That loitering on and around a retail site is prohibited by California Penal Code Section 647(e).
(e15) Cannabis goods display. The following applies to the display of goods at a cannabis retail facility:
(1)a. The display of cannabis goods for sale shall only occur in the retail area during the operating hours of the licensed cannabis retail facility.
(2)b. The licensee shall not display any cannabis goods in areas outside the retail area. (3)c. Cannabis goods on display shall not be readily accessible to customers. (4)d. The amount of cannabis goods that are displayed shall not exceed the average amount of cannabis goods the licensed cannabis retail facility sells during an average one-day period. The remainder of the licensee's inventory of cannabis goods shall be stored in a safe or vault as required by state law or police chief, whichever is more restrictive at the time. (5)e. Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection. The containers shall not be readily accessible to customers without assistance of cannabis retail facility personnel. A container must be provided to the customer by the licensee or employee, who shall remain with the customer at all times that the container is being inspected by the customer.
(6) Cannabis goods removed from their packaging for display shall not be sold, shall not be consumed, and shall be destroyed when the goods are no longer used for display. (f) Cannabis goods for sale. A licensed cannabis retail facility shall not make any cannabis goods available for sale or delivery to a customer unless:

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(1) The cannabis goods were received from a licensed distributor and delivered to the cannabis retail facility by a licensed distributor.
(2) The licensed cannabis retail facility has verified that the cannabis goods have not exceeded their expiration or sell-by date if one is provided.
(3) A licensed cannabis retail facility shall not provide free samples of cannabis goods to any person. (4) A licensed cannabis retail facility shall not allow representatives of other companies or organizations to provide free samples of cannabis goods to individuals on the licensed cannabis retail facility premises.
(g) Daily limits. This shall establish the daily limits of cannabis being sold to a single customer. (1) A licensee shall not sell more than eight (8) ounces of cannabis in a single day to a single cannabis customer or as allowed by state law.
(2) If a cannabis customer has a physician's recommendation that eight (8) ounces of cannabis in a single day does not meet the cannabis customer's needs, the cannabis customer may purchase an amount of cannabis consistent with the customer's needs as recommended by a physician. (h18) Cannabis goods returned by customers. For the purposes of this section, a customer return means a return of cannabis goods that were purchased from a cannabis retail facility back to the cannabis retail facility the cannabis goods were purchased from.
(1)a. A licensed cannabis retail facility may accept customer returns of cannabis goods that were previously sold to the customer returning the cannabis goods. (2)b. A licensed cannabis retail facility shall destroy all cannabis goods that have been returned to a cannabis retail facility and shall not resell said product or goods. (i19) Site security.
(1)a. Cannabis retail facilities must comply with the security requirements established by the council from time to time by resolution.
(j20) Premises.
(1)a. Subletting of premises. A licensed cannabis retail facility shall not sublet any portion of the licensed premises of the cannabis retail facility.
(2)b. Limited access areas. This section establishes the regulations within limited access areas of a cannabis retail facility.
a. A licensed cannabis retail facility shall only permit authorized individuals to enter the cannabis retail facility limited access areas.
b. Authorized individuals include individuals employed by the licensed cannabis retail facility as well as any outside vendors, contractors, or other individuals who have a bona fide business reason for entering the cannabis retail facility limited-access area. c. An individual who is not an authorized individual for purposes of entering the cannabis retail facility limited-access areas shall not enter the cannabis retail facility limited access area at any time for any reason.
d. An individual in the cannabis retail facility limited-access area who is not employed by the licensed cannabis retail facility shall be escorted by individuals employed by the licensee at all times within the cannabis retail facility limited-access area.

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e. An individual who enters the cannabis retail facility limited-access areas shall be at least twentyone (21) years of age. f. The licensed cannabis retail facility shall maintain a log of all authorized individuals who are not employees of the cannabis retail facility that enter the cannabis retail facility limited-access area.

These logs shall be made available to the city upon request. g. A licensed cannabis retail facility shall not receive consideration or compensation for permitting an individual to enter the cannabis retail facility limited-access area. (l) DeliveriesDelivery Specific Regulations. The following rules apply to deliveries for a cannabis retail facility:
(1) All deliveries of cannabis goods must be performed by a delivery employee of a licensed cannabis retail facility.
(2) Each delivery employee of a licensed cannabis retail facility shall be at least twenty-one (21) years of age.
(3) A licensed cannabis retail facility shall not use the services of an independent contractor or courier service to deliver cannabis goods.
(4) All deliveries of cannabis goods shall be made physically to a customer; no drop-offs are allowed.

A delivery of cannabis goods shall not be made through the use of an unmanned vehicle. (5) A delivery employee begins the process of delivering when the delivery employee leaves the cannabis retail facility premises with the cannabis goods for delivery. The process of delivering ends when the delivery employee returns to the licensed cannabis retail facility premises after delivering the cannabis goods to the customer.
(6) A delivery employee of a licensed cannabis retail facility shall, during deliveries, carry a copy of the cannabis retail facility's current permit, the employee's government-issued identification, and an employer provided badge containing a picture and the name of the delivery employee. (7) A licensed cannabis retail facility shall maintain an accurate list of the cannabis retail facility's delivery employees.
(8) A licensed cannabis retail facility may only deliver cannabis goods to a physical address in California.
(9) A licensed cannabis retail facility delivery employee shall not leave the State of California while possessing cannabis goods.
(10) A licensed cannabis retail facility shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency. (11) Methods of delivery.
a. A delivery employee of a licensed cannabis retail facility, carrying cannabis goods for delivery, shall only travel in an enclosed motor vehicle operated by the delivery employee or another delivery employee of the licensee.
b. While carrying cannabis goods for delivery, a delivery employee of a licensed cannabis retail facility shall ensure the cannabis goods are not visible to the public. c. A delivery employee of a licensed cannabis retail facility shall not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is equipped with an active vehicle alarm system.

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d. A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated global positioning system (GPS) device for identifying the geographic location of the delivery vehicle. A dedicated GPS device does not include a phone or tablet. The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. At all times, the licensed cannabis retail facility shall be able to identify the geographic location of all delivery vehicles that are making deliveries for the cannabis retail facility and shall provide that information to the City of Coalinga upon request. e. Upon request, a licensed cannabis retail facility shall provide the City of Coalinga with information regarding any motor vehicles used for the delivery of cannabis goods, including the vehicle's make, model, color, vehicle identification number, and license plate number. f. Any motor vehicle used by a licensed cannabis retail facility to deliver cannabis goods is subject to inspection by the City. Vehicles used to deliver cannabis goods may be stopped and inspected by the City of Coalinga at any licensed premises or during delivery. (12)l. Delivery hours of operation.
a1. A licensed cannabis retail facility shall only deliver cannabis goods to customers starting at 6:00 a.m. and must be completed by 9:00 p.m. Pacific Time. (13) Cannabis goods carried during delivery.
a. While making deliveries, a delivery employee of a licensed cannabis retail facility shall not carry cannabis goods in excess of three thousand dollars ($3,000.00), or as provided by state law or regulation, whichever is lower, at any time. This value shall be determined using the retail price of all cannabis goods carried by the delivery employee. (14) Cannabis consumption during delivery.
a. Delivery employees of a licensed cannabis retail facility shall not consume cannabis goods while delivering cannabis goods to cannabis customers.
(15) Delivery receipt.
a. A licensed cannabis retail facility shall prepare a delivery receipt for each delivery of cannabis goods.
b. The delivery receipt shall contain the following:

1. The name and address of the permitted cannabis retail facility.

2. The name of the delivery employee of the permitted cannabis retail facility who delivered the order.

3. The name of the permitted cannabis retail facility employee who prepared the order for delivery.

4. A customer name and unique identification number for the customer who is requesting the delivery.

5. The date and time the delivery request was made.

6. The delivery address.

7. A detailed description of all cannabis goods requested for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of any cannabis goods requested.

8. The total amount paid for the delivery, including any taxes and fees.

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c. Upon delivery, the date and time the delivery was made, and the signature of the cannabis customer who received the delivery.
d. At the time of the delivery, the delivery employee of the permitted cannabis retail facility shall provide the cannabis customer, who placed the order a copy of the delivery receipt.

The delivery employee shall retain a signed copy of the delivery receipt for the cannabis retail facility's records.
e. The delivery receipt shall comply with state and federal law regarding the protection of confidential information.
(16) Delivery route.
a. While making deliveries of cannabis goods, a delivery employee of a permitted cannabis retail facility shall only travel from the permitted cannabis retail facility premises to the delivery address; from one delivery address to another delivery address; or from a delivery address back to the permitted cannabis retail facility premises. A delivery employee of a permitted cannabis retail facility shall not deviate from the delivery path described in this section, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable. (g22m) Consumption lounge Specific/ Regulations/café.café. (1)a. Consumption lounge/cafe shall be permitted with a valid conditional use permit and cannabis retail permit issued by the City of Coalinga and State of California with a specified consumption cafe/lounge designation unless at any time the State of California adopts regulations requiring a specific/separate license for a consumption café/lounge. (2)b. A consumption cafe/lounge shall not be allowed to operate and sell cannabis, cannabis products, and non-cannabis products between the hours of 2:00 a.m. and 6:00 a.m. (3)c. A consumption cafe/lounge shall only sell cannabis to an individual in an amount reasonable for onsite consumption.
(4)d. Cannabis and cannabis products purchased onsite may be removed from their packaging and consumed onsite.
(5)e. Cannabis and cannabis products not fully consumed onsite may be resealed in their original packaging, placed in opaque packaging, and taken off site by the consumer. (6)f. Non-cannabis products, such as food and beverages, may be prepared and sold onsite. (7)g. A consumption cafe/lounge shall comply with all applicable provisions of the California Retail Food Code (Chapter 1 (commencing with Section 113700) of Part 7 of Division 104 of the Health and Safety Code) when preparing and selling non-cannabis food and beverage products. (8)h. A consumption cafe/lounge shall not sell live plants or seeds. (9)i. A consumption cafe/lounge shall not allow the sale or consumption of alcohol or tobacco on the premises.
(10)j. Smoking, vaping, or ingestion of cannabis or cannabis products shall not be visible from any public place or nonage-restricted area.
(hv) Manufacturing Operating Requirements.

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(221) Cannabis manufacturing facilities shall operate in compliance with Division 10 of the Business and Professions Code and Title 4, Division 19, Chapter 8 of the California Code of Regulations, as may be amended under State law.
(2) Consumable products. Cannabis operations that manufacture products in the form of food or other comestibles shall obtain and maintain the appropriate approvals from the appropriate State and local agencies for the provision of food or other comestibles, unless otherwise governed by the Act and licensed by the State.
(w) Distribution Operating Requirements.
(221) Cannabis distribution facilities shall operate in compliance with Division 10 of the Business and Professions Code and Title 4, Division 19, Chapter 2 of the California Code of Regulations, as may be amended under State law.
(x) Cultivation Operating Requirements.
(221) Cannabis cultivation facilities shall operate in compliance with Division 10 of the Business and Professions Code and Title 4, Division 19, Chapter 7 of the California Code of Regulations, as may be amended under State law.
(222) Outdoor cultivation.
a. Distance separation from Residences. No outdoor cultivation will be permitted within one (1) mile of any Residential Zoning District at the time a conditional use permit is issued.

Measurements shall be from property boundary to property boundary. Areas where cannabis is cultivated shall be screened from public view adjacent to the premises by fencing, structures or vegetation.
b. Premises security. Security requirements for outdoor cultivation shall be approved by Council resolution. Absent a resolution by the City Council, the Police Chief shall establish reasonable security requirements for the cannabis operation through the issuance of the regulatory permit. c. Processing of cannabis products. Outdoor cannabis operation shall occur in a primary structure and constructed/improved in accordance with the California Building Code related to main or utility structures unless the crop is directly distributed to a licensed manufacturing or processing facility on the same parcel. Outdoor cultivation on undeveloped vacant lots shall have a main building that is Title 24 compliant to support the operations. d. Environmental considerations. All persons engaging in the cultivation of cannabis outdoors shall comply with the State of California's General Environmental Protection Measures including: (1) have a legal water source on the premises, (2) not draw groundwater for the purposes of irrigation, (3) not allow illicit discharges of irrigation or storm water from the premises, (4) not allow the off-site drift or discharge of chemicals, (5) and; be connected to the City of Coalinga sewer system.
e. Disposal of waste material. Cannabis waste material shall be disposed in accordance with State Law. No burning of cannabis waste is permitted.
f. Cultivation plan. A cultivation plan shall be submitted to the City as part of the application process for conditional use permit and regulatory permit. The requirements for the cultivation plan shall be consistent with that of Section 8106 of the California Code of Regulations or as amended.
(ky) Microbusiness Specific RegulationsOperating Requirements.

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(221) Cannabis microbusiness facilities shall operate in compliance with Division 10 of the Business and Professions Code and Title 4, Division 19, Chapter 4 of the California Code of Regulations, as may be amended under State law.
(kz) Testing Laboratory Specific RegulationsOperating Requirements. (221) Cannabis testing Laboratories shall operate in compliance with Division 10 of the Business and Professions Code and Title 4, Division 10, Chapter 6 of the California Code of Regulations, as may be amended under State law.
(aa) Inspection. Cannabis operations shall be open for inspection by any City law enforcement officer, staff member or any other City designated agent at any time the cannabis operation is operating, at any other time upon responding to a call for service related to the property where the Cannabis operations is occurring, or otherwise upon reasonable notice. Recordings made by security cameras at any cannabis operation shall be made immediately available to the Police Chief upon verbal request. No search warrant or subpoena shall be needed to view the recorded materials. (ab) Indemnification. In authorizing commercial cannabis operations under this section, the City makes no guarantees or promises as to the lawfulness of the approved activity under State or Federal law, and the business owner, operator and all responsible parties are obligated to comply with all applicable laws. To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to the adoption of this section or the operation of any commercial cannabis operation approved pursuant to this section or under State or federal law. The business owner, operator and all responsible parties shall defend, hold harmless, release, and indemnify the City, its agents, officers, and employees, from any liability associated with the approved use or adverse determinations made by the State or Federal government. An adverse determination could include cessation of operations.

If requested by the City Attorney, the business owner shall execute an agreement memorializing the requirements of this subsection.
(ac) Violations: Enforcement.
(1) Any person that violates any provision of this section shall be guilty of a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be penalized accordingly.
(2) Any use or condition caused or permitted to exist in violation of any of the provisions of this section shall be and is hereby declared a public nuisance and may be summarily abated by the City pursuant to the City of Coalinga Municipal Code.
(3) Any person who violates, causes, or permits another person to violate any provision of this section commits a misdemeanor.
(4) The violation of any provision of this section shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of City, create a cause of action for injunctive relief. (5) In addition to the civil remedies and criminal penalties set forth above, any person that violates the provisions of this section may be subject to an administrative fine of up to one thousand dollars ($1,000.00) for each violation and for each day the violation continues to persist.

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Cannabis (as defined in Business and Professions Code section 19300.5(f)), including marijuana and cannabis concentrate (as defined in Business and Professions Code section 19300.5(g)), that has been recommended to an individual by a licensed physician for the treatment of an illness or disease pursuant to California Health and Safety 11362.5 et seq.

Customer means a qualified patient, primary caregiver to a qualified patient, or anyone otherwise allowed by state law to purchase, consume, or possess adult-use or medicinal cannabis.

Limited-access area is an area in which medical cannabis goods are stored or held and is only accessible to a licensee and his or her employees and contractors.

Personal cannabis means cannabis that is cultivated, processed, or stored for a single customer's use.

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• A document issued by a federal, state, county, or municipal government, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, physical description, and picture of the person;
• A valid identification card issued to a member of the Armed Forces that includes a date of birth and a picture of the person; or
• A valid passport issued by the United States or by a foreign government.

Retail means any activity involving the retail sale of cannabis or cannabis products from a cannabis retail facility for both adult-use and medicinal cannabis customers. (b) General provisions. This section applies to all cannabis retail facilities, as defined in this Code. (1) All cannabis retail facilities shall operate in compliance with this Code and all other applicable state and local laws.
(2) Cannabis retail facilities shall only be allowed in the Light Manufacturing/Business Zoning Designation (MBL) with a valid business license, approved conditional use permit and commercial cannabis regulatory permit pursuant to Section 9-5.128 of the code.
(3) The fact that applicants possess other types of state or county or city permits, licenses or other entitlements does not exempt the applicant from the requirement of obtaining a conditional use permit and regulatory permit from the City of Coalinga to operate a cannabis retail facility within the jurisdiction of the City. (4) Cannabis retail facilities shall at all times be operated in such a way as to ensure the safety of its customers and employees; to ensure the security of the cannabis; and to safeguard against the diversion of cannabis. (c) Permitting.
(1) Any cannabis retail facility must obtain a commercial cannabis regulatory permit from the City of Coalinga through the process stated in Section 9-5.128(e) et seq. of this code. (2) A property owner need not be permitted, and permits shall be held by an applicant. Permittees must also obtain a conditional use permit pursuant to Section 9-5.128(f) If an existing permitted retail facility seeks a consumption lounges or café, an amended CUP must be approved to permit such activity. (3) All employees of the cannabis retail facility must obtain an employee permit to work in the cannabis retail facility within the City of Coalinga pursuant to Section 9-5.128 et seq. of this Code. (4) Applicants must also comply with all other state laws and regulations related to cannabis retail facility operations at all times and shall comply with any amendments to this code or State law or regulations. (5) No more than two (2) regulatory permits shall be issued City wide. Nothing herein shall require the City to issue the maximum number of permits allowed by this section. (d) Minimum operating requirements and restrictions. In addition to all other state laws and regulations, cannabis retail facilities shall comply with all of the following operating standards including Section 9-

5.128(d) subsections (1), (2), (8), (11), (14), (15), (16), ((17)a., b., d.), (20) and (21):
(1) Cannabis retail facilities may not be operated by any persons who have been convicted of a felony in the last five (5) years or a prescribed by law.
(2) No dispensing of cannabis to a customer shall be permitted more than twice a day. (3) Hours: The hours of operation of cannabis retail facilities shall be no earlier than 6:00 a.m. and no later than 9:00 p.m. unless approved for different hours under an approved CUP and prescribed by state law.

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(4) Cannabis retail facilities shall display their customer rules and/or regulations in a conspicuous place that is readily seen by all persons entering the cannabis retail facility. (5) Unless operating as a consumption lounge, smoking, ingesting or otherwise consuming cannabis products on the premises of a cannabis retail facility is prohibited. Each building entrance to a cannabis retail facility shall be clearly and legibly posted with a notice indicating that smoking, ingesting or consuming cannabis or cannabis edibles on the premises or in the vicinity of the retail facility is prohibited.
(6) Each building entrance to a cannabis retail facility shall be clearly and legibly posted with a notice indicating that persons under the age of eighteen (18) are precluded from entering the premises unless they are qualified patients and they are accompanied by their parent or legal guardian. In order to protect the public health, safety and welfare, the Police Chief may require alternative or secondary entrance for a consumption lounge/café.
(7) All cannabis retail facilities shall display a copy of the inspection receipt issued by the Fresno County Office of Weights and Measures Division for all weighing and measuring devices. (8) An up-to-date inventory of all hazardous materials stored and used onsite shall be maintained on the premises of the retail facility available for inspection on demand of the City. (9) Location from sensitive uses.
a. A retail premises/facility permitted under this division shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued. b. A retail premises/facility shall not be located within 100 feet of a residential district. c. The distance specified in this section shall be measured in the same manner as provided in subdivision (c) of Section 11362.768 of the Health and Safety Code unless otherwise provided by law.
(10) Cannabis retail facilities shall maintain all necessary permits, and pay all required taxes and fees. Retail facilities shall also provide invoices to vendors to ensure vendor's tax liability responsibility. (11) Cannabis retail facilities shall implement their policies and procedures as outlined in their Operations Manual. Cannabis retail facilities shall comply with any and all conditions of their conditional use permit and regulatory permit.
(12) Parking: Off-street parking shall be provided as required for food and beverage retail sales under Section 9-4.302 of this Code. All required parking shall be off-street and on-site unless located in the plaza on 5th Street between Cedar and Elm Ave and on Durian Between 4th and 6th Street. This requirement applies to existing and new facilities.
(13) Facility size: The cannabis retail facility size shall be limited to 10,000 square feet. (14) Signage. One attached sign per street frontage shall not to exceed twelve (12) square feet in area or twenty (20) percent of the window area of the retail facility, whichever is less, is permitted unless a larger sign is permitted under a conditional use permit not exceeding that of the Downtown Overlay District. A detached sign is not permitted.
a. All retail facilities shall display on their wall sign or identification sign, the name and emergency contact phone number of the operator or manager in letters at least two (2) inches in height. b. Retail facilities shall post a legible indoor sign in a conspicuous location containing the following warnings:

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1. That the use of cannabis is for persons at least twenty-one (21) years of age, or an age younger as prescribed by law;

2. That the use of cannabis may impair a person's ability to drive a motor vehicle or operate machinery; and

3. That loitering on and around a retail site is prohibited by California Penal Code Section 647(e).
(e) Cannabis goods display. The following applies to the display of goods at a cannabis retail facility:
(1) The display of cannabis goods for sale shall only occur in the retail area during the operating hours of the licensed cannabis retail facility.
(2) The licensee shall not display any cannabis goods in areas outside the retail area. (3) Cannabis goods on display shall not be readily accessible to customers. (4) The amount of cannabis goods that are displayed shall not exceed the average amount of cannabis goods the licensed cannabis retail facility sells during an average one-day period. The remainder of the licensee's inventory of cannabis goods shall be stored in a safe or vault as required by state law or police chief, whichever is more restrictive at the time. (5) Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection. The containers shall not be readily accessible to customers without assistance of cannabis retail facility personnel. A container must be provided to the customer by the licensee or employee, who shall remain with the customer at all times that the container is being inspected by the customer. (6) Cannabis goods removed from their packaging for display shall not be sold, shall not be consumed, and shall be destroyed when the goods are no longer used for display. (f) Cannabis goods for sale. A licensed cannabis retail facility shall not make any cannabis goods available for sale or delivery to a customer unless:
(1) The cannabis goods were received from a licensed distributor and delivered to the cannabis retail facility by a licensed distributor.
(2) The licensed cannabis retail facility has verified that the cannabis goods have not exceeded their expiration or sell-by date if one is provided.
(3) A licensed cannabis retail facility shall not provide free samples of cannabis goods to any person. (4) A licensed cannabis retail facility shall not allow representatives of other companies or organizations to provide free samples of cannabis goods to individuals on the licensed cannabis retail facility premises. (g) Daily limits. This shall establish the daily limits of cannabis being sold to a single customer. (1) A licensee shall not sell more than eight (8) ounces of cannabis in a single day to a single cannabis customer or as allowed by state law.
(2) If a cannabis customer has a physician's recommendation that eight (8) ounces of cannabis in a single day does not meet the cannabis customer's needs, the cannabis customer may purchase an amount of cannabis consistent with the customer's needs as recommended by a physician. (h) Cannabis goods returned by customers. For the purposes of this section, a customer return means a return of cannabis goods that were purchased from a cannabis retail facility back to the cannabis retail facility the cannabis goods were purchased from.
(1) A licensed cannabis retail facility may accept customer returns of cannabis goods that were previously sold to the customer returning the cannabis goods.

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(2) A licensed cannabis retail facility shall destroy all cannabis goods that have been returned to a cannabis retail facility and shall not resell said product or goods. (i) Site security.
(1) Cannabis retail facilities must comply with the security requirements established by the council from time to time by resolution.
(j) Premises.
(1) Subletting of premises. A licensed cannabis retail facility shall not sublet any portion of the licensed premises of the cannabis retail facility.
(2) Limited access areas. This section establishes the regulations within limited access areas of a cannabis retail facility.
a. A licensed cannabis retail facility shall only permit authorized individuals to enter the cannabis retail facility limited access areas.
b. Authorized individuals include individuals employed by the licensed cannabis retail facility as well as any outside vendors, contractors, or other individuals who have a bona fide business reason for entering the cannabis retail facility limited-access area. c. An individual who is not an authorized individual for purposes of entering the cannabis retail facility limited-access areas shall not enter the cannabis retail facility limited access area at any time for any reason.
d. An individual in the cannabis retail facility limited-access area who is not employed by the licensed cannabis retail facility shall be escorted by individuals employed by the licensee at all times within the cannabis retail facility limited-access area. e. An individual who enters the cannabis retail facility limited-access areas shall be at least twentyone (21) years of age. f. The licensed cannabis retail facility shall maintain a log of all authorized individuals who are not employees of the cannabis retail facility that enter the cannabis retail facility limited-access area.

These logs shall be made available to the city upon request. g. A licensed cannabis retail facility shall not receive consideration or compensation for permitting an individual to enter the cannabis retail facility limited-access area. (k) Permit revocation and transfer of a conditional use permit and regulatory permit. (1) A conditional use permit shall be revoked or modified according to Section 9-6.114. Permit revocation or modification shall be sought for non-compliance with one or more of the requirements listed in this code, by state law, or regulation. (2) Conditional use permits and regulatory permits to operate a cannabis retail facility may not be transferred.
(3) The City Council may suspend or revoke the regulatory permit for a cannabis retail facility in accordance with Section 9-5.128(o)(1).
(l) Deliveries. The following rules apply to delivers for a cannabis retail facility:
(1) All deliveries of cannabis goods must be performed by a delivery employee of a licensed cannabis retail facility.
(2) Each delivery employee of a licensed cannabis retail facility shall be at least twenty-one (21) years of age.

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(3) A licensed cannabis retail facility shall not use the services of an independent contractor or courier service to deliver cannabis goods.
(4) All deliveries of cannabis goods shall be made physically to a customer; no drop-offs are allowed. A delivery of cannabis goods shall not be made through the use of an unmanned vehicle. (5) A delivery employee begins the process of delivering when the delivery employee leaves the cannabis retail facility premises with the cannabis goods for delivery. The process of delivering ends when the delivery employee returns to the licensed cannabis retail facility premises after delivering the cannabis goods to the customer.
(6) A delivery employee of a licensed cannabis retail facility shall, during deliveries, carry a copy of the cannabis retail facility's current permit, the employee's government-issued identification, and an employer provided badge containing a picture and the name of the delivery employee. (7) A licensed cannabis retail facility shall maintain an accurate list of the cannabis retail facility's delivery employees.
(8) A licensed cannabis retail facility may only deliver cannabis goods to a physical address in California. (9) A licensed cannabis retail facility delivery employee shall not leave the State of California while possessing cannabis goods.
(10) A licensed cannabis retail facility shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency. (11) Methods of delivery.
a. A delivery employee of a licensed cannabis retail facility, carrying cannabis goods for delivery, shall only travel in an enclosed motor vehicle operated by the delivery employee or another delivery employee of the licensee.
b. While carrying cannabis goods for delivery, a delivery employee of a licensed cannabis retail facility shall ensure the cannabis goods are not visible to the public. c. A delivery employee of a licensed cannabis retail facility shall not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is equipped with an active vehicle alarm system.
d. A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated global positioning system (GPS) device for identifying the geographic location of the delivery vehicle. A dedicated GPS device does not include a phone or tablet. The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. At all times, the licensed cannabis retail facility shall be able to identify the geographic location of all delivery vehicles that are making deliveries for the cannabis retail facility and shall provide that information to the City of Coalinga upon request. e. Upon request, a licensed cannabis retail facility shall provide the City of Coalinga with information regarding any motor vehicles used for the delivery of cannabis goods, including the vehicle's make, model, color, vehicle identification number, and license plate number. f. Any motor vehicle used by a licensed cannabis retail facility to deliver cannabis goods is subject to inspection by the City. Vehicles used to deliver cannabis goods may be stopped and inspected by the City of Coalinga at any licensed premises or during delivery. (12) Delivery hours of operation.
a. A licensed cannabis retail facility shall only deliver cannabis goods to customers starting at 6:00 a.m. and must be completed by 9:00 p.m. Pacific Time.

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(13) Cannabis goods carried during delivery.
a. While making deliveries, a delivery employee of a licensed cannabis retail facility shall not carry cannabis goods in excess of three thousand dollars ($3,000.00), or as provided by state law or regulation, whichever is lower, at any time. This value shall be determined using the retail price of all cannabis goods carried by the delivery employee. (14) Cannabis consumption during delivery.
a. Delivery employees of a licensed cannabis retail facility shall not consume cannabis goods while delivering cannabis goods to cannabis customers.
(15) Delivery receipt.
a. A licensed cannabis retail facility shall prepare a delivery receipt for each delivery of cannabis goods.
b. The delivery receipt shall contain the following:

1. The name and address of the permitted cannabis retail facility.

2. The name of the delivery employee of the permitted cannabis retail facility who delivered the order.

3. The name of the permitted cannabis retail facility employee who prepared the order for delivery.

4. A customer name and unique identification number for the customer who is requesting the delivery.

5. The date and time the delivery request was made.

6. The delivery address.

7. A detailed description of all cannabis goods requested for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of any cannabis goods requested.

8. The total amount paid for the delivery, including any taxes and fees. c. Upon delivery, the date and time the delivery was made, and the signature of the cannabis customer who received the delivery.
d. At the time of the delivery, the delivery employee of the permitted cannabis retail facility shall provide the cannabis customer, who placed the order a copy of the delivery receipt. The delivery employee shall retain a signed copy of the delivery receipt for the cannabis retail facility's records.
e. The delivery receipt shall comply with state and federal law regarding the protection of confidential information.
(16) Delivery route.
a. While making deliveries of cannabis goods, a delivery employee of a permitted cannabis retail facility shall only travel from the permitted cannabis retail facility premises to the delivery address; from one delivery address to another delivery address; or from a delivery address back to the permitted cannabis retail facility premises. A delivery employee of a permitted cannabis retail facility shall not deviate from the delivery path described in this section, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable.

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(m) Consumption lounge/café.
(1) Consumption lounge/cafe shall be permitted with a valid conditional use permit and cannabis retail permit issued by the City of Coalinga and State of California with a specified consumption cafe/lounge designation unless at any time the State of California adopts regulations requiring a specific/separate license for a consumption café/lounge.
(2) A consumption cafe/lounge shall not be allowed to operate and sell cannabis, cannabis products, and non-cannabis products between the hours of 2:00 a.m. and 6:00 a.m. (3) A consumption cafe/lounge shall only sell cannabis to an individual in an amount reasonable for onsite consumption.
(4) Cannabis and cannabis products purchased onsite may be removed from their packaging and consumed onsite.
(5) Cannabis and cannabis products not fully consumed onsite may be resealed in their original packaging, placed in opaque packaging, and taken off site by the consumer. (6) Noncannabis products, such as food and beverages, may be prepared and sold onsite. (7) A consumption cafe/lounge shall comply with all applicable provisions of the California Retail Food Code (Chapter 1 (commencing with Section 113700) of Part 7 of Division 104 of the Health and Safety Code) when preparing and selling non-cannabis food and beverage products. (8) A consumption cafe/lounge shall not sell live plants or seeds. (9) A consumption cafe/lounge shall not allow the sale or consumption of alcohol or tobacco on the premises.
(10) Smoking, vaping, or ingestion of cannabis or cannabis products shall not be visible from any public place or nonage-restricted area.
(Ord. No. 804, § 5, eff. 2-3-2018; Ord. No. 840, §§ 3, 4, eff. 8-15-2020)

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Approval of Short-Term Lease Agreement with Momentum Tactical, LLC at the Coalinga MunicipalAirport
Meeting Date: Thursday, May 7, 2026
From: Sean Brewer, City Manager
Prepared by: Sean Brewer, City Manager
I. RECOMMENDATION:

It is recommended that the City Councilapprove a short-term lease agreement with Momentum Tactical, LLC for use of designated areas at the Coalinga MunicipalAirport and authorize the City Manager to execute the agreement and any minor administrative amendments.

II. BACKGROUND:

The City has been in discussions with Momentum Tactical, LLC, a Department of Defense-focused training company specializing in tacticalcanopy flight instruction and military freefallcourses, regarding the use of the Coalinga MunicipalAirport for training operations.

The proposed agreement establishes a short-term lease to allow the company to initiate operations while longer-term development and permanent facility planning are underway. The lease includes multiple designated sites at the airport for training, staging, and future development.

III. DISCUSSION:

The proposed lease provides for a term of up to three (3) years or untila permanent lease agreement is executed, whichever occurs first.

Key provisions of the agreement include:

LeasedAreas:

Site A (~13,000 sq. ft.) for modular facilities and future hangar development Site B (~800,000–900,000 sq. ft.) for parachute landing and training operations Site C (~14,000 sq. ft.) for classroom, office, and operational support improvements Rent Structure:
$12,000 annually ($1,000 per month)
Use and Operations:

Aviation-related training including parachute and powered paraglider activities Compliance with all FAA, Department of Defense, and local regulations Lessee responsible for construction, maintenance, and operation of improvements Improvements and Facilities:

Temporary modular structures allowed during initial phases Future development includes classroom space, office/lounge, packing areas, and hangar pad City retains option to purchase improvements at fair market value upon lease termination City Responsibilities:

Maintain runway, taxiways, and airport infrastructure
Provide utility access to connection points
Support safe and compliant airport operations
This agreement allows the City to activate underutilized airport property, support economic activity, and position the airport for future aviation-related development while maintaining compliance with FAA requirements and preserving long-term flexibility.

IV. ALTERNATIVES:

Do not approve the agreement – This would delay or prevent activation of the airport site for this use and forego near-term revenue and economic activity.

Direct staff to renegotiate terms – Council may request modifications to rent, term, or operational provisions prior to approval.

V. FISCAL IMPACT:

The agreement provides $12,000 annually in lease revenue.

Additional indirect fiscal benefits may include increased fuel sales, economic activity associated with training operations, and future long-term lease or development opportunities. The City’s primary costs are limited to standard airport maintenance obligations already within existing operational responsibilities.

ATTACHMENTS:

File Name Description
2026.03.04_SHORT_TERM_City_of_Coalinage_Momentum_Lease_Agreement.pdf SHORT TERM City of Coalinga Momentum Lease
Agreement

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NEW COALINGA MUNICIPAL AIRPORT

MOMENTUM TACTICAL, LLC LEASE AGREEMENT
This NEW COALINGA MUNICIPAL AIRPORT MOMENTUM TACTICAL, LLC LEASE AGREEMENT (“Agreement”) is effective as of the day of_______, 2025 (“Effective Date”), by and between City of Coalinga, a Municipal Corporation, with its principal place of business in Coalinga, California (“Owner”) and Momentum Tactical, LLC, a Utah limited liability company (“Lessee”). Owner and Lessee are sometimes referred to individually as a “Party” and collectively as the “Parties.”
Recitals
A. Owner owns the Coalinga Municipal Airport and the real property on which it is located.

B. Lessee is a Department of Defense-focused training company that specializes in tactical canopy flight instruction and military freefall courses.

C. Owner desires to lease to Lessee, and Lessee desires to lease from Owner, the belowidentified property pursuant to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Lease.

1.1 Property. Owner is the fee simple owner of certain real property located at 27500 Phelp Ave, Coalinga, CA 93210, identified by Assessor Parcel Number: [APN]. Owner hereby leases to Lessee, and Lessee hereby agrees to rent, the following “Sites” of the New Coalinga Municipal Airport, described herein and depicted on Exhibit 1 (the “Property” or the “Premises”).

Site A.

Owner will lease to Lessee approximately 13,000 square feet for a modular facility and a future hangar. Modular buildings are permitted as temporary structures during construction. The City will issue permits for modular buildings for an initial one (1)-year term upon application, with six (6)-month extensions available thereafter, not to exceed three (3) years total occupancy.

Upon completion of the permanent structures, Lessee shall remove all modular buildings at Lessee's sole cost and expense within thirty (30) days. Overnight stays are permitted on Site A for up to 14 days within a one-month period. The city requires notification and must approve whenever this provision is utilized.

Notifications must include the specific reason why the accommodations are necessary in lieu of using local hotels. The stays referenced are strictly in connection with the Lessee's operations. These stays do not establish tenancy or residency.

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Site B.

Owner will lease to Lessee approximately 800,000 to 900,000 square feet of cleared land for parachute landings and powered paraglider training.

Site C.

Owner shall lease to Lessee approximately 14,000 square feet of land (“Site C”) for the purpose of constructing and operating the improvements described below and shown on the Site Plan attached hereto as Exhibit C:
• Modular Classroom Building: 2,500 sq. ft
• Office / Lounge: 1,200 sq. ft.
• ADA-Compliant Restroom: 400 sq. ft.
• Covered Parachute Packing Area: 800 sq. ft.
• Outdoor Shade / Staging Structure: 800 sq. ft.
• Concrete Pad (future hangar): 100' x 100' (10,000 sq. ft.)

1.2 Rights and Easements. Owner hereby grants to Lessee, and the Leasehold Estate shall include the following rights and easements: [ALL EASEMENTS, Utility Line Easement, Signage Easement, Access Easement]. Upon Lessee’s request, Owner shall execute and deliver to Lessee documents and instruments, satisfactory in form and substance to Owner and Lessee, evidencing the rights and easements granted pursuant to this Agreement, and Lessee may record such documents and instruments in the official records of the county where the Property is located.

2. Term.

2.1 Original Term. The term of this Lease shall be the shorter of three (3) years commencing on the Rent Commencement Date (defined below), or the effective date of a subsequent permanent lease following the construction of permanent structures on Site A.

3. Rent.

3.1 Initial Rent Payment. In consideration of the rights granted to Lessee under this Agreement, Lessee shall make an initial rent payment Owner, without deduction or offset except as otherwise expressly provided herein, in the amount of Twelve Thousand Dollars ($12,000.00) per year (“Base Rent”), which shall be paid in rental payments of One Thousand Dollars ($1,000.00) per month. Base Rent shall be payable in advance on the first day of each calendar month beginning on the Rent Commencement Date as defined in Section 3.2 below.

3.2 Rent Commencement Date shall mean [NEED DATE].

3.3 Method of Payment. All Rent and other sums payable by Lessee under this Lease shall be paid in lawful money of the United States, by check or electronic transfer payable to City of Coalinga, and delivered to the address designated by Owner in writing, or such other place as Owner may from time to time designate. Any payment made after the due date shall accrue interest at a rate not to exceed five percent (5%) per annum, but no late fee or interest shall apply during any period in which Rent is abated or credited under this Lease.

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3.4 Taxes and Assessments. Lessee shall pay all personal property taxes and assessments levied upon its equipment, vehicles, aircraft, or business operations on the Premises.

Owner shall pay all real property taxes and assessments relating to the underlying Airport property.

If any possessory interest tax or similar charge is assessed on Lessee’s leasehold interest, Base Rent shall be reduced dollar-for-dollar by the amount of such tax.

3.5 Late Payment and Grace Period. Rent shall be considered delinquent if not received within ten (10) days after the due date. Owner shall provide written notice of any delinquency, and Lessee shall have an additional ten (10) days after such notice to cure before any default may be declared. No late fee or penalty shall apply if Rent is withheld or reduced pursuant to an authorized abatement or credit under this Lease.

3.6 Holding Over. If Lessee remains in possession of the Premises after the expiration or earlier termination of this Agreement without the express written consent of Owner, such occupancy shall be deemed a tenancy at sufferance only, subject to all terms and conditions of this Agreement except as to the length of the term and the amount of rent. In such event, Lessee shall pay holdover rent at a rate equal to one hundred fifty percent (150%) of the monthly rent in effect immediately prior to such expiration or termination, prorated on a daily basis. Acceptance of any such rent by Owner shall not be deemed or construed as consent to continued occupancy.

4. Security Deposit. Concurrently with Lessee’s execution of this Lease, Lessee shall deposit with Owner the sum of one thousand dollars ($1,000) as a security deposit (the “Security Deposit”) for the faithful performance by Lessee of all terms, covenants, and conditions of this Agreement during the Term. If Lessee defaults with respect to any provision of this Agreement, Owner may use, apply, or retain all or any portion of the Security Deposit to pay rent or any other monetary obligation in default, to cover any sum Owner may expend or become obligated to expend by reason of Lessee’s default, or to compensate Owner for any loss or damage arising from such default. If any portion of the Security Deposit is so applied, Lessee shall, within ten (10) days after written demand therefor, deposit additional funds with Owner sufficient to restore the Security Deposit to its original amount; failure to do so shall constitute a material breach of this Lease.

Provided Lessee fully and faithfully performs all provisions of this Lease, the Security Deposit, or any remaining balance, shall be returned to Lessee within 30 days after the expiration or earlier termination of the Term and Lessee’s surrender of possession of the Premises.

5. Development, Operation, and Use of Premise.

5.1 Lessee Responsibility. For the duration of the Agreement, the Lessee has the following responsibilities:
i. Pay all utilities and rent as provided under this Agreement. ii. Purchase their fuel directly from the City whenever it is available on-site.
iii. At its sole expense, construct, operate, maintain, and repair all improvements on the Premises. All improvements, alterations, or construction shall be subject to Owner’s prior written approval, including review of plans, specifications, materials, and contractors. Such approval shall not be unreasonably withheld but may be conditioned to ensure compliance with applicable airport

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design standards, FAA requirements, municipal codes, and Owner’s policies.
iv. Comply with all applicable Federal Aviation Administration (FAA), Department of Defense, and Coalinga Municipal Airport safety regulations.
v. Comply with all applicable municipal, county, state, and federal laws, regulations, and ordinances.
vi. Upon termination of this Agreement, restore Site B to a safe and neutral condition.

5.2 Ownership of Improvements. Lessee shall be the sole owner of all right, title, and interest in and to the Improvements, all other personal property installed, used, or maintained on the Premises, and any profits derived exclusively from events conducted on the Premises during the Term.

Upon expiration or earlier termination of this Agreement:

Owner’s Election. Within thirty (30) days prior to expiration, or thirty (30) days after a notice of termination, Owner shall notify Lessee in writing whether it elects to purchase some or all Improvements at their then-current fair market value (the “Election Notice”). If Owner fails to deliver an Election Notice within this period, it shall be deemed an election not to purchase any Improvements.

Removal by Lessee. If Owner elects not to purchase, Lessee shall, within one hundred eighty (180) days after the Election Notice deadline, remove the Improvements at its sole expense and repair any damage caused by such removal, restoring the Premises to a safe condition.

Automatic Vesting. Except for Improvements that Owner has elected to purchase under the Election Notice, any Improvements not removed within the thirty (30) day period following the Election Notice deadline shall automatically vest in Owner without payment or further action required

5.3 Hazardous or Non-Compliant Improvements. If any improvement constructed, installed, or maintained by Lessee is determined by Owner, in its reasonable discretion, to be hazardous, unsafe, non-compliant with applicable laws, regulations, building codes, or airport standards, or to interfere with airport operations, Owner may require Lessee to modify or remove such improvement at Lessee's sole expense, within thirty (30) days after written notice. Owner's determination shall identify the specific code, standard, or FAA regulation at issue, and Lessee shall have an opportunity to cure or appeal such determination. If Lessee fails to timely comply, Owner may, without liability to Lessee, remove or remediate the improvement at Lessee's expense, and Lessee shall promptly reimburse Owner for all costs incurred.

5.4 FAA Jurisdiction and Compliance. Lessee acknowledges that certain activities may require FAA approval or compliance with FAA regulations, and Lessee shall be solely responsible for securing any such approvals at its own expense. Owner is not responsible for obtaining approvals

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from the Federal Aviation Administration (FAA) for any development, construction, improvements, or operations undertaken by Lessee on the Premises, including but not limited to airspace determinations, obstruction evaluations, airport layout plan modifications, or operational authorizations. Owner's inability to permit or approve any improvement, operation, or activity due to FAA requirements, restrictions, or denials shall not constitute a material breach of this Agreement, and Lessee shall have no claim against Owner arising from any FAA determination or regulatory requirement that limits, delays, or prohibits Lessee's intended use of the Premises.

5.5 Insurance. Prior to occupying the Property, Lessee shall obtain the following insurance policies:
i. General Liability Insurance. A general liability insurance policy insuring against bodily injury, personal injury, and property damage caused by Lessee’s use of the Premises in an amount not less than two million dollars ($2,000,000) per occurrence and five million dollars ($5,000,000) aggregate of combined single limit liability coverage per occurrence, accident or incident. Owner shall be named as additional insured on all such policies of insurance.

Lessee shall cause its insurers to issue endorsements identifying Owner as an additional insured.

5.6 Owner Responsibilities. For the duration of this Agreement, Owner shall have the following responsibilities:
i. Maintain the airfield infrastructure. “Maintain" means to keep in safe, operational condition consistent with FAA regulations and industry standards, subject to reasonable notice of deficiencies. Temporary closures for maintenance, weather, emergencies, or circumstances beyond Owner's control are not breaches. Material breach occurs only upon indefinite runway closure due to Owner's failure to maintain after reasonable notice and opportunity to cure. The maintenance of the airfield infrastructure shall include:

1. The Runway (5,000 ft, 30,000 lbs/axle); and

2. Lighting for nighttime operations / Taxiways, lighting, and perimeter fencing for nighttime and secured operations. ii. Ensure that utilities, including water and electricity, are available at the facilities located on Site A and Site B.
iii. Maintain the perimeter security fencing for Site A and Site B. iv. Jet-A fueling obligations, performance deadlines, and related rent credits are governed by 3.5 of this Agreement. Owner acknowledges that timely provision of Jet-A fuel is a critical operational requirement for Lessee.

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v. Provide and maintain adequate utility capacity (electrical power, water, and communications) to stub-out or connection points located at the boundaries of Sites A and B, sufficient to support Lessee’s intended operations. Lessee shall be responsible for the design, permitting, and installation of all internal utility infrastructure within Sites A and B from those connection points, at its sole cost. vi. Coordinate and cooperate with Lessee on all required utility permits, inspections, and tie-ins to ensure timely completion and activation of such utilities.
vii. Refrain from directly or indirectly interfering with Lessee’s operations, undertakings, or activities, or from engaging in any activity that may disturb the Improvements or Lessee’s activities on the Premises.
viii. Mow and roll the Parachute Landing Section of Site B at least annually, or more frequently as reasonably necessary, to maintain safe conditions.

6. Taxes. Owner shall be responsible for, and shall timely pay before delinquency, all real property taxes, assessments, and other governmental charges imposed on or arising in connection with the Property itself. Lessee shall be responsible for, and shall timely pay before delinquency, all taxes, assessments, fees, or charges imposed as a result of Lessee’s use or activities on the Premises, including but not limited to sales taxes, use taxes, excise taxes, personal property taxes, and business license fees. If any possessory-interest tax or similar charge is assessed on Lessee’s leasehold interest, Base Rent shall be reduced dollar-for-dollar by the amount of such tax.

7. Utilities. Owner shall provide adequate water utility capacity to stub-out or connection points at the boundary of Sites A and B. Lessee shall be responsible for designing and installing all other utility infrastructure, including electrical, sewer, and communications services, at its sole cost. Lessee shall design and install all internal utility infrastructure from the water connection points at its sole cost.

Owner shall coordinate tie-ins and permitting for the water connection to avoid unreasonable delay.

Lessee shall pay for all water utilities supplied to the Premises. Owner shall not be liable, in damages or otherwise, for any failure or interruption of water service furnished to the Premises, and no such failure or interruption shall entitle Lessee to terminate this Lease; provided, however, that if such failure or interruption continues for more than sixty (60) consecutive days, Rent shall be abated pro rata for the duration of the outage, and if such failure continues for more than sixty (60) consecutive days without cure, Lessee may, at its option, terminate this Lease upon written notice to Owner.

8. Maintenance. Lessee shall, at its sole expense, maintain the Premises in good order, condition, and repair, including keeping common and parking areas neat, clean, and orderly, and repairing any damage to the facilities thereof. If Lessee fails to do so, Owner may give written notice specifying the required work. If Lessee fails to promptly commence such work and diligently prosecute it to completion, Owner may, but shall not be obligated to, perform such

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work and expend funds reasonably required therefor. Any amounts so expended by Owner shall be reimbursed by Lessee upon demand, together with interest at 5 percent (5%) per annum from the date of such expenditure. Owner shall, at its sole cost, maintain all runway surfaces, taxiways, perimeter fencing, and lighting systems serving the Premises.

9. Indemnity. Owner shall defend, indemnify, and hold harmless Lessee, its officers, directors, members, managers, employees, and agents, from and against any and all claims, demands, losses, liabilities, damages, costs, and expenses, including reasonable attorneys’ fees, arising directly out of (i) Owner’s negligence, gross negligence, or willful misconduct at the Property, or (ii) activities performed or expressly authorized by Owner at the Property, to the extent such claims are not caused by the negligence or willful misconduct of Lessee.

If Owner fails to provide such defense or indemnification as required under this Section, Lessee may bring an independent action to enforce Owner’s obligations hereunder. Any such action shall be subject to the applicable statutes of limitations under California law.

The Lessee agrees to defend and indemnify the Owner for any liability stemming from any adverse judgment or settlement against the Owner in connection with any activity performed or allowed by the Lessee at the Property. Specifically, the Lessee shall indemnify the Owner against all liability, claims, demands, losses, damages, costs, charges, and expenses, including reasonable attorneys' fees, that the Owner may in any way sustain, incur or become liable for in consequence of any activities performed or allowed by the Lessee at the Property.

If the Lessee fails to defend and indemnify as set forth in this Agreement, the Owner may bring a separate suit against the Lessee for failure to do so. Any such action shall be subject to the applicable statutes of limitations under California law.

Each Party's indemnity obligations shall apply only to the extent of its own negligence or willful misconduct. Both Parties waive consequential, incidental, and punitive damages arising from this Lease, except for third-party claims subject to indemnity.

10. Default; Termination.

10.1 Notice and Cure. If either Party alleges that the other has breached or defaulted on any representation, warranty, or obligation under this Agreement, the non-defaulting Party shall deliver to the defaulting Party a reasonably detailed written notice of such breach or default. The defaulting Party shall have sixty (60) days from receipt of such notice to cure the default; provided, however, that if the default cannot reasonably be cured within such sixty (60) day period, the defaulting Party shall have such additional time as is reasonably necessary to cure the default, so long as it commences cure within the initial sixty (60) day period and diligently prosecutes such cure to completion.

For purposes of this Agreement, a "material breach" means a breach of any representation, warranty, or obligation that: (a) substantially impairs the benefit of the bargain to the non-defaulting Party; (b) defeats the essential purpose of this Agreement; or (c) makes performance by the nondefaulting Party substantially more burdensome or impossible. Minor, technical, or non-substantive

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violations that do not significantly affect the Parties' rights or obligations shall not constitute a material breach.

If the defaulting Party fails to timely cure a material breach, the non-defaulting Party may terminate this Agreement and/or exercise any other rights or remedies available at law or in equity; provided that the non-defaulting Party shall use commercially reasonable efforts to mitigate damages arising from such default.

10.2 Termination. This Lease may not be terminated at will by either Party.

Termination is permitted only: (i) for an uncured material breach as defined in Section 10.1; (ii) in the event of condemnation, casualty, or an airport closure exceeding one hundred twenty (120) days; (iii) by mutual written agreement of the Parties; or (iv) expiration per Section 2.

11. Assignment and Sublease.

11.1 General Restriction. Lessee shall not voluntarily or by operation of law assign, transfer, mortgage, pledge, or otherwise encumber its interest in this Lease or in the Premises, nor sublet or license all or any portion of the Premises, without the prior written consent of Owner in each instance, which consent shall not be not be unreasonably withheld, conditioned, or delayed. Any attempted assignment, transfer, mortgage, encumbrance, sublease, or license without such consent shall be void and of no effect.

11.2 Related Party Assignment. Notwithstanding Section 11.1, Lessee may assign this Lease to any parent company, subsidiary, affiliate, or other entity under common ownership or control with Lessee and/or its owners (a “Related Party Assignment”), provided that Lessee delivers written notice and copies of the Related Party Assignment documents to Owner. Owner shall promptly acknowledge receipt of such documents in writing and return a copy to Lessee. In no event shall Owner unreasonably withhold or delay such acknowledgement, nor interfere with any Related Party Assignment.

11.3 Right to Sublease. Notwithstanding Section 11.1, Lessee shall have the right to sublease the Premises asfollows:
i. Lessee may sublease for aviation-related or Department of Defense–approved uses, subject to Owner’s review, which shall not be unreasonably withheld, conditioned, or delayed.
ii. Any sublease for non-core activities shall likewise require review not to exceed twenty (20) business days from receipt of a complete package, after which approval shall be deemed granted.
iii. Legal or administrative fees charged by Owner in connection with its review of any sublease shall not exceed Two Thousand Five Hundred Dollars ($2,500.00) per instance.

11.4 Continuing Liability. In all cases of assignment or sublease, whether or not consent is required or obtained, Lessee shall remain primarily liable for the performance of all obligations under this Lease unless expressly released in writing by Owner.

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12. Miscellaneous.

12.1 Entire Agreement. This Agreement, together with its attached exhibits (which are incorporated herein by reference), constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and representations, whether oral or written, which shall be of no force or effect. No addition, modification, or waiver of any term of this Agreement shall be effective unless in writing and signed by both Parties. This Agreement shall not be construed more liberally in favor of, or more strictly against, either Party. As used herein, the neuter gender includes the masculine and feminine, and the singular includes the plural, and vice versa, whenever the context so requires. The terms “include,” “includes,” and “including” shall be deemed to be followed by the phrase “without limitation.” Captions and headings are for convenience only and shall not affect the interpretation of this Agreement..

12.2 Governing Law. The terms and provisions of this Agreement shall be governed by, and construed in accordance with, the laws of the State of California, without regard to its conflict of laws principles.

12.3 Legal Counsel and Advice. Each party to this Agreement has had the opportunity to consult with legal counsel and other advisors of its own choosing prior to executing this Agreement.

12.4 Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, Owner and Lessee, any permitted Assignee, and their respective heirs, transferees, successors, and assigns. All references to “Lessee” in this Agreement shall be deemed to include any Assignee holding a direct ownership interest in this Agreement.

12.5 Notices. All notices or other communications required or permitted hereunder, including payments to Owner, shall be in writing, and shall be personally delivered, delivered by reputable overnight courier, or sent by registered or certified mail, return receipt requested and postage prepaid, to the addresses set forth on the signature page of this Agreement.

Notices personally delivered shall be deemed given the day so delivered. Notices given by overnight couriers shall be deemed given on the first business day following the mailing date.

Notices mailed as provided herein shall be deemed given on the third business day following the mailing date. Any party may change its address for purposes of this subsection by giving written notice of such change to the other party in the manner provided in this subsection.

12.6 Choice of Law. The Property is located in the County of Fresno, State of California. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Venue for any action or proceeding, whether at law or in equity, arising out of or relating to this Agreement shall lie exclusively in Fresno County, California. Both Parties hereby waive any rights under California Code of Civil Procedure Section 394 to seek transfer of venue to a neutral county or other venue.

12.7 Mediation. In the event of any dispute arising under or related to this Agreement, the Parties shall first submit the matter to non-binding mediation before commencing litigation or arbitration. Any Party may initiate mediation by delivering written notice to the other Party. Mediation shall be conducted in accordance with the California Mediation Rules and Procedures, or, by mutual agreement, through another mediation service or mediator. Mediation shall

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be confidential in accordance with California Evidence Code §1119 et seq. (superseding the outdated reference to §1152.5), and the Parties shall share equally the mediator’s fees and costs.

12.8 Arbitration. If the Parties fail to resolve their dispute through mediation, the Parties agree to arbitrate disputes through binding arbitration. Each Party agrees that:
i. any arbitration will occur in Fresno County, in the State of California, ii. arbitration will be conducted confidentially by a single arbitrator in accordance with the Commercial Arbitration Rules and the Supplementary Procedures for Consumer Related Disputes (the “AAA Rules”) then in effect, except as modified by this “Arbitration” section, and iii. that the state or federal courts of the State of California have exclusive jurisdiction over any appeals and the enforcement of an arbitration award.

12.9 Attorney’s Fees. In any action, proceeding, or arbitration to enforce or interpret this Agreement, the prevailing party shall be entitled to recover from the non-prevailing party its reasonable attorneys’ fees and cost, in addition to any other relief to which such party may beentitled.

12.10 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties execute this Agreement effective as of the Effective Date.

OWNER:
____________________________
[NAME],
[BUSINESS]
Address for Payment and Notices:

LESSEE:
_____________________________
[NAME],
[BUSINESS]
Address for Payment and Notices:
[ADDRESS]
[ADDRESS]
[PHONE]
[ADDRESS]
[ADDRESS]
[PHONE]

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EXHIBIT 1

PROPERTY/PREMISES
APN: [APN]

PHOTO/MAP OF PROPERTY

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Adopt Resolution No. 4320 for the Sale of Excess Untreated USBR Water for 2026/27 to Pleasant Valley Water Conveyance Partners and Gladstone California Water LP
Meeting Date: Thursday, May 21, 2026
From: Sean Brewer, City Manager
Prepared by: Dan Bergmann, IGS
I. RECOMMENDATION:

It is recommended the City Council adopt Resolution No. 4320 and agreements for untreated water sales to Pleasant Valley Water Conveyance Partners and Gladstone California Water LP (collectively referred to as “the Farmers”) during the 2026/27 water year.

II. BACKGROUND:

The City has a long history of providing excess USBR water to the Farmers when it is available. Canal water is better quality than ground water, use of canal water preserves groundwater reserves, and sales of excess water benefit the city’s ratepayers.

III. DISCUSSION:

Staff and the Farmers have been actively negotiating to reach a mutually agreeable price for the sale of the City’s excess water this year. To proceed, City Council must approve a proposed water price at the City Council meeting.

The volume of excess water projected to be available this year is 1,960 acre feet (AF).

The benchmark for the market value of the City’s excess water is the “Exchange Contractors Transfers Agreement Price Schedule,” which is available through San Luis and Delta Mendota Water Authority (SLDMWA). Based on the current Central Valley Project South of Delta (CVP SOD) agriculture allocation of 20 percent, the exchange price is $650 per AF. It is according to this schedule that Westlands Water District has stated to the City that it will purchase the City’s excess water at this price. Pursuant to Westlands April Monthly notice, it will then sell “supplemental” water to its own customers for a rate of $775 to $800 per AF. Westlands marks up the price from $650 to cover its operational and maintenance costs.

From the City’s perspective, the value of water is greater delivered within Coalinga’s district, than delivered out-of-district to Westlands. When Coalinga takes delivery of water it must pay the SLDMWA fee of $75 per AF (rounded) and pay Westlands for conveyance a projected cost of $35 per AF. Both these components increase the value to $760. From a straight financial comparison, this means the City would be indifferent selling to Westlands at $650 per AF for selling to the Farmers at $760 per AF.

Through negotiations, the Farmers are not willing to purchase all the excess water at $760 because of the price being high this year. Because it is beneficial to the City to support our local Farmers, a mutually agreeable price is indicated to be $685 per AF.

One other requested change from the Farmers that is incorporated in the agreements is that if the Exchange Contractors price is reduced because the CVP allocation is increased above 25 percent, the sales price to the Farmers will drop by the same amount. Specifically, if the CVP agriculture allocation increases to the next tier of 26% to 50%, the Exchange Contractors prices will drop from $650 per AF to $425 per AF. Westlands would similarly reduce its purchase price from the City, if the City were selling to Westlands.

The sale of excess USBR water is beneficial to the City, and specifically to water ratepayers primarily because the water is sold at a significant margin above the city’s total costs to help offset the cost of capital improvements to the City’s water system, but also to support the local Farmers.

The effort required by the City for sale of excess water is administrative and financial only. Agreements must be prepared, approved by City Counciland executed. Westlands personnel read the meters each month, then city staff prepare and issue the billing statements, and collect the amounts due.

IV. ALTERNATIVES:

The alternative is selling excess water to Westlands Water District, or not selling excess water at all.

V. FISCAL IMPACT:

The projected net benefit to water enterprise rate payers is expected to be between $900,000 and $1,000,000.

This assumes the CVP SOD allocation does not exceed 25 percent.

ATTACHMENTS:

File Name Description
Resolution_No._4320_-__Water_Sales_Agreement_05_21_26.pdf Resolution No. 4320 Gladstone_Sales_Agreement_2026.pdf Gladstone Sales Agreement PVWCP_Sales_Agreement_2026.pdf PVWCP Sales Agreement
RESOLUTION NO. 4320

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COALINGA FOR THE SALE OF UNTREATED USBR WATER TO PLEASANT VALLEY WATER CONVEYANCE PARTNERS AND GLADSTONE CALIFORNIA WATER LP DURING THE 2026/27

WATER YEAR
WHEREAS, City has a long history of providing excess water to farmers within the City’s defined service area; and
WHEREAS, the USBR has made available to City excess water during the 2026/27 water year; and WHEREAS, USBR water provided though City is good quality allowing the farmers to preserve ground water supplies; and
WHEREAS, sale of excess water is beneficial to water ratepayers of the City; and WHEREAS, City and farmers have mutually agreed on a market value of water to be sold and purchased; and WHEREAS, the City has already agreed to provide conveyance-only services for farmer-owned water during the 2026/27 water year; and
WHEREAS, City desires to provide excess USBR water to the farmers and they desire to acquire excess water from City, under specified terms and conditions, for the mutual benefit of all parties, and in conformity with applicable State and Federal regulations.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Coalinga does hereby approve untreated water sales in accordance with the terms and conditions of the attached agreements to this Resolution, as follows.

1. Water Sales Agreement for the 2026/27 Water Year with:
a. Pleasant Valley Water Conveyance Partners
b. Gladstone California Water LP

2. The City Manager is authorized to execute these Agreements.

The foregoing resolution was duly adopted by the Coalinga City Council at a regular meeting held on the 21st day of May 2026, by the following vote, to wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
___________________________
Nathan Vosburg, Mayor
Attest:
_____________________________
Shannon Jensen, City Clerk

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WATER SUPPLY AGREEMENT

CITY OF COALINGA AND GLADSTONE CALIFORNIA WATER LP, A DELAWARE

LIMITED PARTNERSHIP
2026 Agreement: Water Supply
This Agreement is entered into by and between the City of Coalinga (“City”) and Gladstone California Water LP, a Delaware Limited Partnership (“GCWLP”), with respect to the following Recitals, which are a substantive part of this Agreement.

RECITALS
WHEREAS, from time to time, City may have the ability to sell excess USBR water to GCWLP in the Pleasant Valley Water District located within the City’s defined USBR Contractor Service Area; and
WHEREAS, City can make available excess contract water to GCWLP to the benefit of City’s water ratepayers, and
WHEREAS, USBR water provided though City is good quality allowing GCWLP to recharge and preserve ground water supplies; and
WHEREAS, City may also make available conveyance of GCWLP-owned water using City’s conveyance agreement with Westlands Water District; and WHEREAS, City desires to provide excess USBR water to GCWLP and GCWLP desire to acquire excess water from City, on the terms and conditions set forth in this Agreement, all for the mutual benefit of City and GCWLP, and in conformity with applicable State and Federal regulations.

NOW, THEREFORE, City and GCWLP agree to the following:

1. Term of Agreement. This Agreement shall be effective March 1, 2026, for water transactions mutually agreed by the parties, provided the Agreement is fully executed by City and each farmer listed hereto, for service to each farmer as each executes, and shall be effective through February 28, 2027.

2. USBR Water Supply. This Agreement is for both contracted long-term USBR Water Supply (Contracted Water) available to City. Contracted Water may be made available to GCWLP to the extent it is made available to City by USBR, and after a full supply has been provided to City’s treated water customers.

3. Price and Volumes for Purchase Water. The price for contract water hereunder shall be six hundred eighty-five dollars ($685.00) per AF inclusive of all costs incurred by the City up to the Delivery Point (Initial Price). The Initial Price of $685.00 is fixed and not subject to revision or adjustment, except if the Central Valley Project South of Delta (CVP SOD) Allocation for the 2026/27 water year is increased to 26 to 50 percent. If so, pursuant to Exhibit E of the Exchange Contractors 2026-2038 Transfers Agreement Price Schedule, the Initial Price shall be reduced by $225 per AF, consistent with the reduction in the Transfers Agreement Price Schedule. The City’s pricing shall be inclusive of all costs incurred by City up to the Delivery Point including amounts

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due from the City to USBR, San Luis and Delta Mendota Water Authority, and Westland’s Water District.

4. Monthly Sales Volumes. Water volumes shall be determined by GCWLP and City prior to each calendar month. GCWLP shall use their best effort to monitor water deliveries not to exceed determined monthly volumes. Water volumes sold and conveyed under this agreement are contingent on Regulatory Compliance, as defined herein. City may immediately suspend deliveries in the event the City Manager deems additional water is needed for the City’s treated water use.

5. Notices, Billing, and Payment. City shall issue billing statements to GCWLP following each month of water deliveries. Payment shall be rendered by GCWLP to City within fifteen (15) days of the date of the statement. Notices, including billing statements may be communicated via email, provided the receiving party acknowledges receipt.

Billing Statements shall be sent to:

Firestone Avenue Coalinga, LP
1521 Westbranch Drive, Suite 100
Mclean, VA 22102
Attn: Bill Reiman
[email protected]
(805) 377-7701
Payments shall be made to: Ms. Mai Vang
City of Coalinga Financial Services Director
155 W Durian Avenue [email protected]
Coalinga, CA 93210 559-935-1533 Ext. 129

6. Delivery Point. The Delivery Point for water sold hereunder shall be GCWLP’s turn-out located near the end of the Coalinga Canal.

7. Regulatory Compliance. The obligations of City and GCWLP to perform under this Agreement are conditioned upon ongoing compliance, approvals, and consents, including without limitation consent from the USBR, Westlands Water District, the State Water Resources Control Board, and any other authority with jurisdiction impacting this Agreement.

8. Conflicts of Interest. Neither City, nor its City Manager, nor any City Council member, department head, manager, employee, consultant, or agent of City, shall give to or receive from any director, employee or agent of GCWLP or any affiliate thereof any gift or entertainment of significant value, or any commission, fee, or rebate in connection with this Agreement.

9. GCWLP. This Agreement is being entered into with GCWLP.

10. Operating Communication. The City shall designate a representative for ongoing operating coordination with GCWLP, and similarly GCWLP shall designate a representative authorized to represent GCWLP for operating coordination.

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11. Counterpart Signatures. The parties hereto agree that this Agreement may be signed in counterparts such that each signature alone or combined with others agrees to this single binding Agreement.

IN WITNESS WHEREOF, City and GCWLP agree to the terms and conditions herein.

CITY OF COALINGA
By: Date:

Sean Brewer
City Manager
ATTEST:

City Clerk
GLADSTONE CALIFORNIA WATER LP, a Delaware limited partnership By: Gladstone California Farmland, GP, LLC, a Delaware limited liability company, its General Partner
By: Gladstone Land Limited Partnership, a Delaware limited partnership, its Sole Member
By: Gladstone Land Partners, LLC, a Delaware limited liability company, its General Partner
By: Gladstone Land Corporation, a Maryland corporation, its Manager By: _________________________________________
David Gladstone
President and CEO

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WATER SUPPLY AGREEMENT

CITY OF COALINGA AND PLEASANT VALLEY WATER CONVEYANCE

PARTNERS, LLC
2026 Agreement: Water Supply
This Agreement is entered into by and between the City of Coalinga (“City”) and Pleasant Valley Water Conveyance Partners, LLC (“Farmers”), with respect to the following Recitals, which are a substantive part of this Agreement.

RECITALS
WHEREAS, from time to time, City may have the ability to sell excess USBR water to Farmers in the Pleasant Valley Water District that are located within the City’s defined USBR Contractor Service Area; and
WHEREAS, City can make available excess contract water to Farmers to the benefit of City’s water ratepayers, and
WHEREAS, USBR water provided though City is good quality allowing Farmers to recharge and preserve ground water supplies; and
WHEREAS, City may also make available conveyance of Farmer-owned water using City’s conveyance agreement with Westlands Water District; and WHEREAS, City desires to provide excess USBR water to Farmers and Farmers desire to acquire excess water from City, on the terms and conditions set forth in this Agreement, all for the mutual benefit of City and Farmers, and in conformity with applicable State and Federal regulations.

NOW THEREFORE, City and Farmers agree to the following:

2. USBR Water Supply. This Agreement is for both contracted long-term USBR Water Supply (Contracted Water) available to City. Contracted Water may be made available to Farmers to the extent it is made available to City by USBR, and after a full supply has been provided to City’s treated water customers.

3. Price and Volumes for Purchase Water. The price for contract water hereunder shall be six hundred eighty-five dollars ($685.00) per AF inclusive of all costs incurred by the City up to the Delivery Point (Initial Price). The Initial Price of $685 is fixed and not subject to revision or adjustment, except if the Central Valley Project South of Delta (CVP SOD) Allocation for the 2026/27 water year is increased to 26 to 50 percent. If so, pursuant to Exhibit E of the Exchange Contractors 2026-2038 Transfers Agreement Price Schedule, the Initial Price shall be reduced by $225 per AF, consistent with the reduction in the Transfers Agreement Price Schedule. The City’s pricing shall be inclusive of all costs incurred by City up to the Delivery Point including amounts

Page 2 of 8 ends

due from the City to USBR, San Luis and Delta Mendota Water Authority, and Westland’s Water District.

4. Monthly Sales Volumes. Water volumes shall be determined by Farmers and City prior to each calendar month. Farmers shall use their best effort to monitor water deliveries not to exceed determined monthly volumes. Water volumes sold and conveyed under this agreement are contingent on Regulatory Compliance, as defined herein. City may immediately suspend deliveries in the event the City Manager deems additional water is needed for the City’s treated water use.

5. Notices, Billing and Payment. City shall issue billing statements to Farmers following each month of water deliveries. Payment shall be rendered by Farmers to City within fifteen (15) days of the date of the statement. Notices, including billing statements may be communicated via email, provided the receiving party acknowledges receipt.

Billing Statements shall be sent to:

Pleasant Valley Water Conveyance Partners, LLC
c/o NK Development
13762 1st Avenue
Hanford, CA 93230
James Nichols
[email protected]
559-772-1582
Payments shall be made to: Ms. Mai Vang
City of Coalinga Financial Services Director
155 W Durian Avenue [email protected]
Coalinga, CA 93210 559-935-1533 Ext. 129

6. Delivery Point. The Delivery Point for water sold hereunder shall be canal side meaning the Farmers’ turn-out located near the end of the Coalinga Canal.

7. Resale Prohibited. Water sold to Farmers under this Agreement is explicitly for use by Farmers on land that is within City’s USBR Contractor Service Area. Farmers’ land for irrigation under this agreement is shown on the map on Attachment 1. Farmers shall not resale water purchased under this agreement.

8. Regulatory Compliance. The obligations of City and Farmers to perform under this Agreement are conditioned upon ongoing compliance, approvals, and consents, including without limitation consent from the USBR, Westlands Water District, the State Water Resources Control Board, and any other authority with jurisdiction impacting this Agreement.

9. Conflicts of Interest. Neither City, nor its City Manager, nor any City Council member, department head, manager, employee, consultant, or agent of City, shall give to or receive from any director, employee or agent of Farmers or any affiliate thereof any gift or entertainment of significant value, or any commission, fee, or rebate in connection with this Agreement.

Page 3 of 8 ends

10. Farmers. This Agreement is being entered into with Pleasant Valley Water Conveyance Partners, LLC. The Farmers that are parties to the LLC are listed as Attachment 2 (contact list).

The Farmers listed above agree to allocate water receipts cooperatively amongst their designated properties, track volumetric deliveries, and be responsible for full payment to City for water taken hereunder. Specifically, any one Farmer agrees to be responsible for full payment of all water taken in the event of nonpayment by one or more other Farmers.

11. Operating Communication. The City shall designate a representative for ongoing operating coordination with Farmers, and similarly Farmers shall designate a representative authorized to represent Farmers for operating coordination.

12. Counterpart Signatures. The parties hereto agree that this Agreement may be signed in counterparts such that each signature alone or combined with others agrees to this single binding Agreement.

IN WITNESS WHEREOF, City and Farmers agree to the terms and conditions herein.

CITY OF COALINGA
By: Date:

Sean Brewer
City Manager
ATTEST:

City Clerk

Page 4 of 8 ends

NK DEVELOPMENT
By:

Signature
Name Printed

WEST LOST HILLS ROAD COALINGA
CA, LP
By:

Signature
Name Printed

FIRESTONE AVENUE COALINGA, CA LP
By:

Signature
Name Printed

SUTTER AVENUE COALINGA CA, LP
By:

Signature
Name Printed
NVBInv AF4, LLC
By:

Signature
Name Printed

KREYENHAGEN FAMILY, LLC
By:

Signature
Name Printed

Page 5 of 8 ends

Attachment 1
Maps of Farm Parcels in Green that can be Served by City of Coalinga (All sections shaded below)

Page 6 of 8 ends

Attachment 1 (cont.)
Maps of Farm Parcels in Green that can be Served by City of Coalinga (All sections shaded that are left of right two columns of sections)

Page 7 of 8 ends

Attachment 1 (cont.)
Maps of Farm Parcels in Green that can be Served by City of Coalinga (Lower left two sections on bottom row only)

Page 8 of 8 ends

Attachment 2

CONTACT LIST

PLEASANT VALLEY WATER CONVEYANCE PARTNERS
Sutter Avenue Coalinga CA, LP 25%
Lessee, Rod Stiefvater, 661-809-5199, [email protected]
Landowner, Gladstone, Kyle Murai, 949-735-2737, [email protected] 1521 Westbranch Drive, Suite 100
McLean, VA 22102
West Lost Hills Road Coalinga CA, LP (formerly Wood Ag Management, Inc) 12.5% Landowner, Gladstone, Kyle Murai, 949-735-2737, [email protected] 1521 Westbranch Drive, Suite 100
McLean, VA 22102
Firestone Avenue Coalinga CA, LP (formerly Devine Farms, LLC) 12.5% Lessee, Rod Stiefvater, 661-809-5199, [email protected]
Landowner, Gladstone, Kyle Murai, 949-735-2737, [email protected] 1521 Westbranch Drive, Suite 100
McLean, VA 22102
NBInv AF4, LLC 25%;
Manager, Agriglobe, Phillip Christensen, 559-439-7490, [email protected] Farm Manager, Taylor & Jeff Schmiedier, Taylor 559-349-7776, [email protected]
2787 W. Bullard Ave., Suite 106
Fresno, CA 93711
NK Development 18.75%;
James Nichols, 559-772-1582, [email protected]
Chuck Nichols, 559-772-4111, [email protected]
Farm Manager, Joe, 559-707-4650
13762 1st Ave.

Hanford, CA 93230
Kreyenhagen Family, LLC 6.25%
Scott Kreyenhagen (Signator), [email protected]
PO Box 270114
Louisville, CO 80027
James Kreyenhagen, [email protected]

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Adopt Resolution No. 4321 Approving Additional Square Foot of Sign Area at the Community West Bank
Meeting Date: Thursday, May 21, 2026
From: Sean Brewer, City Manager
Prepared by: Jesse Barron, Assistant City Manager
I. RECOMMENDATION:

Councilconsider the applicant’s request for an additional 26 square feet of sign area for the newly proposed wall sign along West Durian Avenue.

II. BACKGROUND:

On March 10, 2026, the City of Coalinga received an application for new signage, submitted by the applicant, Fresno Neon on behalf of the property owner Community West Bank, for new signage for the property located on the northeast corner of West Durian Avenue and Coalinga Plaza (Community West Bank, formerly United Security Bank). Three (3) of the proposed signs were sign face changes or reduction in sign sizes while one (1) was a new sign.

Staff approved the three sign face changes/reductions which is permitted under the current Sign Code (CMC Section 9-4.500 et seq.). The new sign, proposed along West Durian Avenue, exceeded the allowable sign area for the Downtown Overlay Zone District (0.5 sq. ft. for every 1 ft of building frontage).

Section 9-4.506(a)(2) states that all signs shallconform to the maximum area requirements specified in Table

4.6 and Section 9-4.509 of the sign regulations, unless a different limit is approved under a Master Sign Program or by the City Council.

Subsequently, the City of Coalinga received an application for the new signage along West Durian Avenue for Councilconsideration.

III. DISCUSSION:

Proposal andAnalysis
The site has approximately 168 feet of building frontage – 48 feet along West Durian Avenue and approximately 120 feet along Coalinga Plaza/Frame Park. This brings the totalallowable square footage for signs on the site to 84 feet; however, because of existing legal, non-conforming statutes, the site is currently allowed 121 square feet. This stems from a combination of the existing signage on-site – 26 square foot wall sign facing the interior parking lot/Frame Park, 30 square foot roof-mounted sign, and 65 square foot pole sign adjacent to Coalinga Plaza.

Sign Type and Location Size
Pole Sign (existing) along Coalinga Plaza 65 square feet (only count one side) Wall Sign (existing) facing interior parking
lot/Frame Park
26 square feet
Roof-mounted Sign (existing) along West Durian
Avenue side parallel to street
30 square feet
Wall Sign (proposed) facing West Durian Avenue 26 square feet TOTAL SIGN AREA 147 square feet
The existing pole sign and roof-mounted sign are considered a legal, non-conforming sign which cannot be modified except for the copy change, or they will have to be removed per current regulations. New pole signs are not permitted in the Downtown Overlay Zone District. It is not recommended that the pole sign or roofmounted sign be removed.

Staff is bringing this item to Councilat the request of the applicant to allow additional sign area to installa new wall sign along West Durian Avenue. Pursuant to Section 9-4.506(a)(2), all signs shallconform to the maximum area requirements specified in Table 4.6 and Section 9-4.509 of the sign regulations, unless a different limit is approved under a Master Sign Program or by the City Council.

Land Use and Zoning Compliance
Pursuant to CMC Section 9-4.501, the purpose of the sign code is to establish regulations to ensure the orderly display of signs as a city-wide information system, consistent with State and federal law. These regulations recognize the desire and need of each individual, business, firm or corporation to identify its place of residence, business or service, and realizing that the indiscriminate erection, location, illumination, coloring, size, and lack of proper maintenance of signs and advertising structures, constitutes a significant contributing factor detrimental to the wellbeing and continuing activity of a city's people and economy.

Specifically, these regulations are intended to:

1. Attract and direct persons to various activities and locations for the purpose of providing for maximum public convenience and enhancement of economic value;

2. Assure that all signs and advertising structures are designed, erected and maintained in a manner to enhance, rather than detract from, the ultimate design and appearance of the affected street or neighborhood, and do not impair the view of nearby or adjacent signs;

3. Prohibit the installation and maintenance of signs or advertising structures that unduly distract motorists' attention from driving, and which detract from attention to traffic movement and to signs and signals promoting traffic safety;

4. Prevent the installation and maintenance of signs or advertising structures that individually or collectively have an injurious effect on the morale of the people and the economic well-being of the City;

5. Assure that size and location of signs and advertising structures do not constitute an obstacle to effective fire protection and fire fighting techniques; nor constitute a direct or potential danger to vehicular or pedestrian traffic, especially in the event of structural failure during the period of inclement weather and earthquakes or in the event of impaired vision due to improper size or location; and

6. Otherwise protect the public health, safety, morale, and promote the public welfare.

Surrounding Land Use Setting:

The proposed project is not inconsistent with surrounding uses nor is it detrimental to the health, safety, morale, or welfare of the public. These uses are detailed in the table below.

Direction Zoning
South General Commercial
West Recreation (Frame Park)
East General Commercial
North General Commercialand Residential High Density
Environmental Considerations
The project has been reviewed in compliance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and has been determined to be categorically exempt (Class 1) pursuant to Section 15301 of the CEQA Guidelines regarding existing facilities.

The project is consistent with the applicable general plan designation and allapplicable general plan policies as wellas with applicable zoning designation and regulations.

The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses.

The project site has no value, as habitat for endangered, rare or threatened species.

Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.

The site can be adequately served by all required utilities and public services.

Based on the analysis contained above, none of the exceptions to Categorical Exemptions set forth in CEQA Guidelines, Section 15300.2 apply to this Project.

IV. ALTERNATIVES:

Staff does not have a formal recommendation; however, staff does not feel that by the Councilapproving the requested additional sign area, it would be contrary to the purpose of the sign regulations.

V. FISCAL IMPACT:

There will be no fiscal impact to the general fund.

ATTACHMENTS:

File Name Description
Resolution_No_4321_Bank_of_the_West_Signage_05_21_26.pdf Resolution No. 4321 Sign_Exhibits.pdf Sign Exhibits
RESOLUTION NO. 4321

A RESOLUTION OF THE CITY OF COALINGA CITY COUNCIL

APPROVING ADDITIONAL SIGNAGE AREA FOR COMMUNITY WEST BANK LOCATED ON THE NORTHEAST CORNER OF WEST DURIAN AVENUE AND COALINGA PLAZA/5TH STREET (APN 072-112-17) WHEREAS, the City of Coalinga Community Development Department received an application for a Sign Permit for the construction of a new wall sign for Community West Bank located on the northeast corner of West Durian Avenue and Coalinga Plaza/5th Street; and,
WHEREAS, the proposed project requires City Council approval of an increase to the maximum allowed sign area, in accordance with Title 9, Chapter 4 of the Coalinga Municipal Code; and WHEREAS, appropriate applications were filed and deemed complete by the Coalinga Community Development Department on March 25, 2026; and
WHEREAS, the project has been determined to be exempt from CEQA processing under the provisions of Government Code (Class 1) Section 15301 related to existing facilities, and; WHEREAS, the City Council completed its review of the proposed signage and information contained in the staff report at its meeting on May 21, 2026; and
NOW THEREFORE BE IT RESOLVED, that the City Council does approve the Sign Permit Application for application No. SP 26-03 for an increase to the maximum sign area permitted.

PASSED AND ADOPTED, by the City of Coalinga City Council at their regularly scheduled meeting held on the 21st Day of May 2026 with the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
_________________________________________
Nathan Vosburg, Mayor
ATTEST:
_______________________________________
Shannon Jensen, City Clerk/Deputy City Clerk
K.C. Rutiaga ([email protected])
559.292.2944 | 559.292.2980
fresnoneon.com
DESCRIPTION:

MATERIALS:

DIMENSIONS: CONTACT INFO:

UL | NEC | TITLE 24 COMPLIANCE: Sign fabrication to be UL 48 and NEC Article 600 compliant including proper grounding & bonding with disconnect switch. Title 24 compliant controls comply with (2022 CA Energy Code) will be installed prior to final inspection which include either a time clock/photo cell combination or an astronomical time clock. All signs to be controlled by Auto Timer + Photo Control, for LED & UL listed signs. All signs must include Wattage or have UL Listed Energy Verified Label. Illuminated signs will be powered on for less than 1 hour during daylight hours. Signs to be on both day and night shall include a dimmer that provides the ability to automatically reduce lighting power by a minimum of 65% during nighttime hours.

THIS DESIGN IS THE PROPERTY OF FRESNO NEON SIGN CO. INC. NO UNAUTHORIZED USE OR REPRODUCTION IS ALLOWED. * If specific colors have not been provided, colors will be matched to the closest equivalents. By signing you confirm that you have reviewed and agree to the color callouts.

Title 24: Signs to be controlled by customer supplied
automatic photoelectric control. All signs to be LED with Each sign must have:
-A dedicated branch circuit
-Three wires: Line, Ground, and Neutral
-Wire Size: Min 12 GA THHN Copper Wire
Note: Sign must be installed in accordance with the NEC (National Electrical Code) and local building codes. Proper grounding and bonding of the sign. Power circuit to be a dedicated circuit when installation shall comply with Article 600.5(A)(1) of the NEC.
-Power and sign must be done by a licensed contractor or electrician.

ATTENTION: Before signing please review all details of this drawing, including (but not limited to) spelling, colors, and placement. By signing you confirm that you have reviewed and agree to all specifics shown in this drawing.

PLEASE SIGN HERE
Approved
With Changes Noted
As is without Changes
date

COMMUNITY WEST BANK/MULTI SIGNS
ORDER NUMBER: 106046

SITE PLAN

OVERVIEW

SIGN CABINET (EAST)
COLORS:
48’-0”
120’-0”
INSTALL ADDRESS:
145 E Durian Ave, Coalinga

CA, USA
Sign locations.

K.C. Rutiaga ([email protected])
559.292.2944 | 559.292.2980
fresnoneon.com
DESCRIPTION:

MATERIALS:

DIMENSIONS: CONTACT INFO:

PLEASE SIGN HERE
Approved
With Changes Noted
As is without Changes
date

COMMUNITY WEST BANK/MULTI SIGNS
ORDER NUMBER: 106046

SIGN PLACEMENT
6’-8”
10’-8”
EQ EQ 3’
-11 1
/2” 5’-4”
DI
S

TANCE FROM

THE GROUND
Lorem ipsum
13’-8”
Lorem ipsum
11’
-1”
Lorem ipsum
SIGN CABINET_EAST
COLORS:
.125 Aluminum routed out
Aluminum return and backs
1” Push-through letters
LED
Vinyl graphics

MATTHEW SATIN SHIMMER GOLD
METALLIC PAINT / MP14571

MATTHEW SATIN

BLACK PAINT
3M #3630-131 GOLD METALLIC

TRANSLUCENT VINYL FILM
3M #3630-20 WHITE

TRANSLUCENT VINYL FILM
Sign cabinet with push through
letters flush mounted to the
building.

OVERALL AREA:
6’ - 8”(W) x 3’ - 11 1/2”(H) x 6”(D)
26,4 SQ FT

NIGHT VIEW
K.C. Rutiaga ([email protected])
559.292.2944 | 559.292.2980
fresnoneon.com
DESCRIPTION:

MATERIALS:

DIMENSIONS: CONTACT INFO:

PLEASE SIGN HERE
Approved
With Changes Noted
As is without Changes
date

COMMUNITY WEST BANK/MULTI SIGNS
ORDER NUMBER: 106046

MEASUREMENTS

SECTION
6' - 8 "
3' - 11 1
/2"
5' - 6 5/8"
2' - 6"
1" 6"
L
H
J
M
O
K
I
D
A
B
N
E
G
C
F
B
C
D
E
F
G
H
I
J
K
L
M
N
O
A 0.125” ALUMINUM CABINET SIGN
RETURN
1“ PUSH-THROUGH ACRYLIC

LETTERS

ALUMINUM BACK

FLATHEAD SCREW

MOUNTING HARDWARE
1/4” DRAIN HOLES

BUILDING WALL

LED MODULE

REMOTE LED POWER SUPPLY

WATERPROOF ENCLOSURE BOX

FLEXIBLE CONDUIT

PRIMARY DISCONNECT SWITCH

EXTERIOR DISCONNECT SWITCH
120V DEDICATED SIGN CIRCUIT
SECTION | CABINET SIGN WITH PUSH-THROUGH
SIGN CABINET_EAST
COLORS:
.125 Aluminum routed out
Aluminum return and backs
1” Push-through letters
LED
Vinyl graphics

MATTHEW SATIN SHIMMER GOLD
METALLIC PAINT / MP14571

MATTHEW SATIN

BLACK PAINT
3M #3630-131 GOLD METALLIC

TRANSLUCENT VINYL FILM
3M #3630-20 WHITE

TRANSLUCENT VINYL FILM
Sign cabinet with push through
letters flush mounted to the
building.

EXISTING
OVERALL AREA:
6’ - 8”(W) x 3’ - 11 1/2”(H) x 6”(D)
26,4 SQ FT

CUSTOMER TO RUN POWER TO SIGN LOCATION

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Adoption of Resolution No. 4323 Recommending to Modify the Calculation of Monthly Baseline Gas Therms to Achieve More Equitable Billing for the City's Single-Family Residential Gas Customers
Meeting Date: Thursday, May 21, 2026
From: Sean Brewer, City Manager
Prepared by: Jesse Barron, Assistant City Manager
I. RECOMMENDATION:

City Council is recommended to adopt Resolution No. 4323 amending the method of determining monthly natural gas baseline Therms for single-family residential gas customers to achieve more equitable billing during months when the meter reading cycle varies from the typical 28 to 33 days.

II. BACKGROUND:

During the December 2024 meter reading cycle, many customers’ meter read cycles were longer than 33 days, with some as long as 44 days, due to late meter reading in January 2025. The longer read cycles caused many single-family customers to exceed the baseline usage of 50 Therms per month, when they would not have otherwise exceeded the baseline in a typical length read cycle. The result was they were billed at a rate $0.43 per Therm higher for some gas delivered -- the difference between the baseline rate of $0.88 and the excess rate of $1.31 (the rates in place at that time).

In response, these customers were provided with refunds for the overbilling. Specifically, 170 customers exceeded the baseline because of the longer cycle. These 170 customers are distinguished from the customers that would have gone over anyway -- those that would have been at 50 Therms if the billing cycle had been the standard 30 days. Refunds totaling $500 were issued to those customers. The average refund was $3.00; however, the highest refunds were $8.44 for some customers with the longest meter read cycles of 44 days.

These situations can be avoided by implementing baseline Therms per day rather than Therms per month billing cycle.

III. DISCUSSION:

The proposed solution to avoid this problem again is to modify the monthly baseline calculation from Therms per billing cycle to Therms per day across the meter reading cycle. This means the baseline allocation will be exact each month regardless of the number of days between meter reads. The table below shows baseline Therms for summer and winter based on days in the billing cycle rather than simply the billing cycle itself.

Notice the table shows that if the billing cycle were an exact average month of 30.4 days, the baseline allocations would be exactly 15 Therms for Summer and 50 Therms for Winter. The determination of Therms per day is done by dividing monthly baseline Therms by 30.4 days in an average month. The daily allocations are shown at the bottom of the table below and restated in the proposed resolution.

Other utilities have set a precedent for calculating monthly baseline rates on a per-day basis. SoCalGas and PG&E (investor-owned utilities) and City of Palo Alto (municipal utility) all calculate baseline quantities for residential service on a per-day basis.[1]
This proposed modification is not a rate increase and therefore does not require customer notification or other Proposition 218 requirements. This modification simply improves the application of the existing baseline rate structure. Nonetheless, the existing natural gas rate resolution has been expanded to specify the improved calculation of baseline Therms.

Finally, this proposed change will require support from Tyler Technologies to modify the bill application of baseline Therms. At this point, Tyler has confirmed they can make the change. Staff are presently in dialogue with Tyler. The intent is to have the improved mechanism in place prior to this winter as reflected in the proposed resolution.

Baseline Therms Based on Read Cycle
Days in Cycle Summer Baseline Winter Baseline
25 12.3 41.1
26 12.8 42.8
27 13.3 44.4
28 13.8 46.1
29 14.3 47.7
30 14.8 49.3

30.4 15.0 50.0
31 15.3 51.0
32 15.8 52.6
33 16.3 54.3
34 16.8 55.9
35 17.3 57.6
36 17.8 59.2
37 18.3 60.9
38 18.7 62.5
39 19.2 64.1
40 19.7 65.8
41 20.2 67.4
42 20.7 69.1
43 21.2 70.7
44 21.7 72.4
45 22.2 74.0
Th/Day Input: 0.4934 1.6447
IV. ALTERNATIVES:

No changes to the calculation of monthly residential baseline Therms.

V. FISCAL IMPACT:

The City must pay Tyler Technologies for changes to the monthly billing calculations in the Tyler software.

The change in revenue from gas billing will be imperceptible.

ATTACHMENTS:

File Name Description
Resolution_No_4323_Baseline_Change_05_21_26.pdf Resolution 4323

Page 1 of 2 ends

RESOLUTION NO. 4323

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COALINGA REVISING THE VOLUME

CALCULATION FOR SINGLE-FAMILY BASELINE NATURAL GAS BILLING WHEREAS, the City of Coalinga’s gas system is operated safely, reliably, and benefits Coalinga’s residents.

WHEREAS, Resolution No. 4293, approved October 16, 2025, increased natural gas rates five percent; and,
WHEREAS, Resolution No. 4300, approved December 4, 2025, partially rescinded Resolution No. 4293, and increased natural gas rates an additional five percent; and WHEREAS, Resolution No. 4305, approved January 8, 2026, amended and modified the City of Coalinga’s Natural Gas Purchase policy; and
WHEREAS, increasing natural gas and operating expenses have increased attention to the City’s natural gas enterprise; and
WHEREAS, the City has a baseline rate structure for single-family residential gas customers based on a stated baseline Therm allocation per month; and
WHEREAS, monthly meter reading cycles sometimes deviate from the typical 28 to 33 days (average month) because of holidays or other circumstances; and
WHEREAS, the City’s natural gas billing system has the capability to calculate the baseline allocation on a daily rather than monthly basis; and
WHEREAS, converting the baseline calculation to daily will provide more equitable billing to singlefamily residential gas customers during months when the meter read cycle is above an average month; and WHEREAS, this modification of the baseline calculation is not a rate increase and therefore exempt from the requirements for Proposition 218.

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

1. The recitals set forth above are true and correct as of the date this Resolution was adopted.

2. The revised volume calculation shall be effective no later than the meter read cycle beginning in November 2026, the first month of winter baseline rates.

3. The application of rates for natural gas service provided by the City of Coalinga are hereby revised as follows.

Page 2 of 2 ends

City of Coalinga Natural Gas Rates
Summer Therms
(Apr-Oct)
Winter Therms
(Nov-Mar)
Effective 12/1/25
(Resolution No. 4305)
Monthly Charge ($/Mo) $13.43
Residential Single-Family
Baseline ($/Th) 15 50 $0.97
Residential Single-Family
Excess ($/Th) Over 15 Over 50 $1.44
Commercial and All Other
($/Th) All Supply $1.44
Note: The monthly Residential Single-Family baseline Therm volume shall be calculated as baseline Therms per day for each billing cycle. This is done to provide accurate allocation of baseline volumes when meter read cycles are longer than an average month. The calculation of daily baseline Therms is shown below.

Season Monthly Baseline
(Th/Mo) Days/Mo Daily Baseline (Th/day)
Summer Baseline 15 30.4 0.4934
Winter Baseline 50 30.4 1.6447
The foregoing resolution was approved and adopted at a regular meeting of the City Council of the City of Coalinga held on the 21st day of May 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
______________________________
Nathan Vosburg, Mayor
ATTEST:
______________________________
Shannon Jensen, City Clerk

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Adopt Resolution No. 4324 Accepting Real Property Easement related to the Multi-Use Trail Segment 8-23S Easement Acquisition (APN: 071-020-23S, portion) Meeting Date: Thursday, May 21, 2026
From: Sean Brewer, City Manager
Prepared by: Sean Brewer, City Manager
I. RECOMMENDATION:

Adopt Resolution No. 4324 accepting the real property acquisition multi-use traileasement from Andrew Alan Lewis, et al. related to Segment No. 8-23S of the Coalinga Multi-Use Trail System and authorize the City Manager to execute all documents necessary to complete the transaction and record the deed.

II. BACKGROUND:

The City of Coalinga is proposing to construct 14’-wide bicycle and pedestrian trails, approximately 1.97 mile in length, that would be a portion of Coalinga’s perimeter trail, and loop-and-spur network. The proposed project acquisition begins from Monterrey Avenue along Cambridge Avenue through the Coalinga Sports Complex then along the south side of Los Gatos Creek from the Coalinga Sports Complex to Elm Avenue then along the south side of Los Gatos Creek from Elm Avenue to the former railroad corridor. The purpose of this project is to enhance multi-modal forms of transportation for the public.

III. DISCUSSION:

Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, upon the terms and for the consideration set forth in the agreement, and attachments the following interest(s) in property, all situated in the City of Coalinga, County of Fresno, State of California:a permanent multi-use traileasement.

IV. ALTERNATIVES:

Council may choose not to proceed with the purchase of the real property.

V. FISCAL IMPACT:

The purchase of said easement is for $3,000. There will be no impact to the General Fund as the purchase is paid from grant proceeds.

ATTACHMENTS:

File Name Description
RESO#4324_MultiUse_Trail_Easement_Seg_1E_2_13_14___Acceptance_of_Property_(A.Lewis)_052126.pdf Resolution No. 4324
AGR_FOR_ACQUISITION_OF_PROPERTY.pdf
Agreement for Acquisition of
Property
M
ULTIUSE_TRAIL_EASEMENTSegment_8-23S_.pdfMultiUseTrail Easement CERTIFICATE_OF_ACCEPTANCE_071-020-23S_(portion).pdfCertificateofAcceptance RESOLUTIONNO. 4324

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COALINGA

AUTHORIZING THE ACCEPTANCE OF PROPERTY EASEMENT KNOWN AS APN 071-020-23S (PORTION) VIA EASEMENT GRANT DEED
WHEREAS, Andrew Alan Lewis, Trustee of the Andrew Alan Lewis Revocable Trust Agreement dated January 5, 1984; Joel Nelson, Trustee of the Joel Nelson 2003 Revocable Trust dated August 8, 2003; Jacob Tanz and Wendy L. Tanz, Trustees for the Tanz Family 1996 Trust; James M. Evans & Joy E. Evans, Trustees for the James M. Evans & Joy E. Evans Trust Dated November 16, 1993; Roy Kumar, Trustee of the 1998 Roy Kumar Trust UTD December 29, 1998; Julia W. Simmons, Surviving Trustee of the Simmons Living Trust dated June 30, 1988; Mark Morris and Jo Ann Morris, Trustees of the Morris Living Trust dated March 6, 1984; Andrew A. Lewis, as his sole and separate property, and PENS CO Trust Co, Custodian FBO Elizabeth Lewis IRA have agreed to sell approximately 3,624 square feet of property easement to the City of Coalinga; and
WHEREAS, City Staff has prepared necessary investigations, environmental reports and a staff report of information bearing upon the acceptance of the sale of real property; and WHEREAS, said acceptance of property easement from Andrew Alan Lewis, Trustee of the Andrew Alan Lewis Revocable Trust Agreement dated January 5, 1984; Joel Nelson, Trustee of the Joel Nelson 2003 Revocable Trust dated August 8, 2003; Jacob Tanz and Wendy L. Tanz, Trustees for the Tanz Family 1996 Trust; James M. Evans & Joy E. Evans, Trustees for the James M. Evans & Joy E.

Evans Trust Dated November 16, 1993; Roy Kumar, Trustee of the 1998 Roy Kumar Trust UTD December 29, 1998; Julia W. Simmons, Surviving Trustee of the Simmons Living Trust dated June 30, 1988; Mark Morris and Jo Ann Morris, Trustees of the Morris Living Trust dated March 6, 1984; Andrew A. Lewis, as his sole and separate property, and PENS CO Trust Co, Custodian FBO Elizabeth Lewis IRA by the City of Coalinga is in compliance with local, state and federal requirements; and WHEREAS, said acceptance of property easement is part of a project per California Public Resource Code (PRC) Section §21108 or Section §21152 and has received a notice of determination from the California Environmental Quality Act (CEQA).

NOW, THEREFORE, BE IT RESOLVED, that said acceptance of property easement is exempt from further environmental review pursuant to California Public Resource Code (PRC) Section §21108 or Section §21152; and
NOW, THEREFORE BE IT FURTHER RESOLVED, that the City Council of the City of Coalinga, hereby authorizes the acceptance of property easement via grant deed from Andrew Alan Lewis, Trustee of the Andrew Alan Lewis Revocable Trust Agreement dated January 5, 1984; Joel Nelson, Trustee of the Joel Nelson 2003 Revocable Trust dated August 8, 2003; Jacob Tanz and Wendy L. Tanz, Trustees for the Tanz Family 1996 Trust; James M. Evans & Joy E. Evans, Trustees for the James M. Evans & Joy E. Evans Trust Dated November 16, 1993; Roy Kumar, Trustee of the 1998 Roy Kumar Trust UTD December 29, 1998; Julia W. Simmons, Surviving Trustee of the Simmons Living Trust dated June 30, 1988; Mark Morris and Jo Ann Morris, Trustees of the Morris Living Trust dated March 6, 1984; Andrew A. Lewis, as his sole and separate property, and PENS CO Trust Co, Custodian FBO Elizabeth Lewis IRA; and
NOW THEREFORE BE IT FURTHER RESOLVED, that said grant deed shall convey all of its right, title and interest in and to all those pieces or parcels of land situated in the City of Coalinga, County of Fresno, State of California, described as follows:

The legal description of the interest is identified in the referenced Attachment 1 which is hereby incorporated by reference
BE IT FURTHER RESOLVED, that the interim city manager is hereby authorized to sign all necessary documents to accomplish said acceptance of real property, with said deed to be recorded in the office of the Fresno County Recorder. The foregoing has been authorized by the City Council of the City of Coalinga.

PASSED AND ADOPTED, by the City Council of the City of Coalinga at a regularly scheduled meeting held on this 21st day of May, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
__________________________
Nathan Vosburg, Mayor
ATTEST:
___________________________
Shannon Jensen, City Clerk

CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Easement Deed or Grant Deed dated March 16, 2026 from Andrew Alan Lewis, Trustee of the Andrew Alan Lewis Revocable Trust Agreement dated January 5, 1984; Joel Nelson, Trustee of the Joel Nelson 2003 Revocable Trust dated August 8, 2003; Jacob Tanz and Wendy L. Tanz, Trustees for the Tanz Family 1996 Trust; James M. Evans & Joy E. Evans, Trustees for the James M. Evans & Joy E. Evans Trust Dated November 16, 1993; Roy Kumar, Trustee of the 1998 Roy Kumar Trust UTD December 29, 1998; Julia W. Simmons, Surviving Trustee of the Simmons Living Trust dated June 30, 1988; Mark Morris and Jo Ann Morris, Trustees of the Morris Living Trust dated March 6, 1984; Andrew A. Lewis, as his sole and separate property, and PENS CO Trust Co, Custodian FBO Elizabeth Lewis IRA Andrew Alan Lewis Trustee to THE CITY OF COALINGA, a political corporation and/or governmental agency is hereby accepted pursuant to authority conferred by Resolution No. 4324 of the CITY OF COALINGA, CITY COUNCIL, adopted on May 21, 2026, and the grantee consents to recordation thereof by its duly authorized officer.

APN: 071-020-23s
Date: May 21, 2026
APPROVED:
________________________________
Sean Brewer, City Manager
City of Coalinga
ATTEST:
________________________________
Shannon Jensen, City Clerk
City of Coalinga

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Consider the Collection Agency Services Proposal with Cedars Business Services,

LLC (CBS)
Meeting Date: Thursday, May 21, 2026
From: Sean Brewer, City Manager
Prepared by: Mai Vang, Financial Services Director
I. RECOMMENDATION:

The Financial Services Director recommends that Coalinga City Councilaward the bid to Cedars Business Services, LLC (“CBS”) for Collection Agency Services for unpaid and delinquent accounts receivable.

II. BACKGROUND:

The City of Coalinga issued a Request for Proposals (“RFP”) for Collection Agency Services on March 31, 2026 seeking a qualified and experienced full-service collection agency to provide collection services for unpaid and delinquent accounts receivable, including utility services, returned checks, service fees, damage to City property invoices, and miscellaneous receivables.

The City has not had an active collection agency since October 2024 following the bankruptcy of the City’s previous collection provider. The City currently has roughly 2,452 closed accounts eligible for collections totaling approximately $883,600.

The RFP anticipated award of a single contract for an initial three-year term with two optional two-year extensions.

The RFP required proposers to demonstrate:

Experience with public-sector and utility collections
Regulatory compliance with FDCPA, CFPB Regulation F, TCPA, FCRA, and California laws Secure technology and reporting capabilities
Consumer self-service tools
Data security protections including PCI DSS and SOC 2 Type II or equivalent controls Monthly and annual reporting
Skip tracing and credit bureau reporting capabilities
Addenda were issued clarifying operationalexpectations, including:

Initial placement of all backlog accounts at contract commencement Ongoing monthly or quarterly placements thereafter
Permission for emailand SMS communications
Requirement for City approval of settlements and legalaction Tyler ERP and InvoiceCloud operating environment
Estimated monthly forward-flow placement amounts
Anticipated establishment of KPI benchmarks with the selected agency III. DISCUSSION:

The City received two proposals in response to the RFP:

1. Cedars Business Services, LLC (“CBS”)

2. Key 2 Collect, Inc.

Staff evaluated both proposals using the criteria established in the RFP, including qualifications, related public-sector experience, technology, completeness of response, pricing, references, and past performance.

Following review and evaluation, staff determined that CBS submitted the most qualified and responsive proposaland provides the best overall value to the City.

CBS Strengths
CBS demonstrated significant experience providing municipaland public-sector collection services throughout California, including work for:

CalPERS
CalTrans
CalRecycle
Contra Costa County
Riverside Public Utilities
Other California public agencies
CBS demonstrated substantialexpertise with utility receivable collections and public-agency compliance requirements.

The proposalalso demonstrated:

Strong regulatory compliance infrastructure
Advanced consumer and City online portals
Secure API/SFTP integration capabilities
Real-time reporting dashboards
Audit-ready reporting tools
Payment processing and consumer self-service functionality Structured implementation and onboarding processes
Robust cybersecurity and data-protection controls
PCI DSS compliance and SOC2-aligned security controls
CBS also demonstrated extensive experience with:

FDCPA compliance
CFPB Regulation F compliance
TCPA compliance
California RosenthalAct compliance
CCPA/CPRA privacy compliance
Credit bureau reporting
Skip tracing and account recovery processes
Staff determined CBS presents lower operationaland compliance risk due to its demonstrated municipal experience, mature compliance program, and stronger technology platform.

Staff contacted the references provided by both agencies; however, responses were only received from references for CBS. Representatives from CalTrans and Contra Costa County both provided positive feedback regarding CBS’s performance and services. CalTrans indicated that CBS achieved strong recovery results, worked directly with the DMV, and that their contract had been extended into a second term due to satisfactory performance. Contra Costa County stated that communication and responsiveness were top priorities for CBS, noted they have worked with the agency for approximately five years, and indicated their intent to extend the contract again upon expiration.

Cost Proposal
CBS proposed a contingency-based fee structure under which the City incurs no upfront costs. Fees are collected only from successfully recovered accounts.

The proposed fee structure includes:
22% contingency fee for backlog accounts
25% contingency fee for ongoing placements
34% contingency fee for legal recoveries
Although CBS was not the lowest-cost proposer, staff determined the additionalcompliance safeguards, municipalexperience, technology infrastructure, and reporting capabilities provide greater long-term value and reduced operational risk to the City.

Comparative Evaluation
Key 2 Collect submitted a responsive and competitive proposal with lower pricing; however, staff identified severalcomparative advantages favoring CBS, including:

Greater California municipalexperience
More extensive public-sector client portfolio
More mature compliance governance
Stronger technology and reporting infrastructure
More robust implementation capabilities
Enhanced audit and cybersecurity controls
Based on the overallevaluation criteria, staff concluded CBS represented the strongest overall proposaland best meets the City’s operational, compliance, and service objectives.

Contract Agreement
Staff will bring back the agreement in June.

IV. ALTERNATIVES:

1. Reject both proposals

2. Consider Key 2 Collect, Inc. proposal over CBS
V. FISCAL IMPACT:

The agreement is contingency-based and does not require upfront City expenditures. Fees will be deducted only from amounts successfully recovered.

The City currently has roughly $883,600 in delinquent receivables eligible for collections. Based on industry standards for municipal utility and service receivables, recovery rates for comparable portfolios typically range from approximately 10% to 30%, depending on account age and collectability.

No General Fund appropriation is required for this service.

ATTACHMENTS:

File Name Description
20260330_-_Collection_Agency_RFP_(FINAL).pdf RFP for CollectionAgency Services Collection_Agency_Services_CBS_Proposal.pdf CSB Proposal

REQUEST FOR PROPOSALS
City of Coalinga

COLLECTION AGENCY SERVICES
Release Date: March 31, 2026
Submission Deadline: April 21, 2026 by 5:00 PM PST
Contact
Mai Vang, Financial Services Director
Email: [email protected]

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CITY OF COALINGA

REQUEST FOR PROPOSAL

COLLECTION AGENCY SERVICES
Section I: General Information/Overview
A. Overview
The City of Coalinga is seeking the services of a qualified and experienced full-service Collection Agency to provide collection services for unpaid and delinquent account receivables for the City which include damage to City property invoices, returned checks, utility services, service fees, and other miscellaneous receivables. It is anticipated that the term of the services to be awarded will be for three (3) years with an option to renew for two (2) additional years.

B. Description of the Government
The City of Coalinga was incorporated in 1906 and operates as a general law city with a Council-Manager form of government, focused on providing municipal services to roughly 18,000 residents. A five-member City Council, elected by citizens, governs the city, sets policy, and appoints a City Manager to oversee daily operations, with a strong focus on community development, public safety, and financial stability.

C. Proposal Content and Format
Proposals must be for the entire scope of services stated in this RFP. Incomplete proposals will not be considered.

1. Title Page
Page showing the Request for Proposal’s subject, the firm’s name, the name, address, e-mail address, and telephone number of a contact person; and the date of the proposal.

2. Table of Contents

3. Cover Letter
Provide a letter of introduction, approximately one (1) page in length, stating the proposer’s understanding of the work to be done, a statement why the firm believes itself to be best qualified to perform the engagement, state of incorporation, name of owner(s) and principal party(ies), number and position title of staff. Information regarding any collection associations of which the proposer and its staff are members should be included. This letter shall be signed by an officer of the bidding firm authorized to bind the firm to all commitments made in the proposal.

4. Qualifications of staff proposed for the assignment, their position and types and amount of equivalent collection experience. Be sure to include any municipal agencies they have worked with and their level of involvement. A description of how overall supervision will be provided should be included. A brief summary discussing the firm's qualifications and relevant experience.

Page 3 of 8 ends

5. List of references (at least 4) of present clients for comparable work performed, including a summary of similar engagements with other governmental agencies.

6. Is the agency able to make collections in all 50 states and the agency’s ability to file reports with all three national credit bureaus?

7. Provide sample copies of the agency’s current monthly statement of accounts that are available to your clients.

8. Provide sample copies of the agency’s monthly aging report by delinquency length (30, 60, 90, 120+ days)

9. Provide three different sample letters to be sent to delinquent accounts.

10. A description of your agency’s collection methodology, how many agents you will use in our collection effort, the geographical area you service, and an outline of your agency’s collection success rate.

11. The City of Coalinga shall incur no cost for this program. Agency fees will be collected directly from the debtor. Clearly describe the agency’s contingency-based fee structure (percentage of the amount collected), any legal action fees, and any other charges associated with the collection process.

12. A statement of the dollar amount of an account under which your agency will not actively pursue regular collection and/or legal action.

13. Provide information if notices are available online and searchable by account for City of Coalinga to access.

14. A statement of the services your agency feels differentiates your agency from other agencies.

D. Instructions/Conditions/Legal Requirements

1. Agency agrees that failure on its part to list all cost components related to the service will not be accepted by the City as an acceptable justification to re-quote the proposal. Agency acknowledges that the original proposal and costs provided stand. However, the agency has the option of withdrawing a proposal at any time until a final contract is executed.

2. The City of Coalinga has outlined the requirements herein in as much detail as is currently known. Please provide any exceptions, additional information, or suggestions that will aid in the City’s selection process (attachments are acceptable).

3. The agency shall provide collection services as outlined in the specifications section of this RFP.

4. Agency shall defend, indemnify, and hold harmless the City of Coalinga, its officers, officials, employees, and volunteers from and against any and all claims, damages, losses, liabilities, and expenses, including reasonable attorneys’ fees, arising out of or related to Agency’s performance of services, including but not limited to violations of applicable laws, data breaches, or negligent acts or omissions.

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5. The City reserves the right to negotiate terms and specifications/scope of work with the highest ranked agency or piggyback on any existing governmental contract. If an agreement cannot be negotiated the City reserves the right to negotiate with any other finalist.

6. Agency shall identify those services, if applicable, that will be outsourced to a subcontractor and receive approval prior to assigning the services. The prime Agency will be responsible for verifying the qualifications and validity of licenses, permits, and quality of work for any outsourced work to subcontractors. The prime Agency is also responsible for paying its employees and any subcontractors the prime Agency hires.

7. The selected agency shall enter into a Professional Services Agreement with the City.

8. At the time of execution of the contract, the selected agency is obligated to provide evidence of insurance liability to include: Workers Compensation, General Liability, Automobile Liability, and Professional Liability in the amount of $1,000,000 per occurrence.

9. The successful agency shall be an independent firm, and nothing shall be construed to cause the agency to be deemed or represent itself as an agent or employee of the City.

10. Any evidence of collusion among agency’s acting illegally to restrain freedom of competition by agreement to propose fixed price, or otherwise, will render the proposal of such agency void.

11. The term of the contract shall commence upon award by the City. The City of Coalinga intends for this service to result in a three (3) year contract, which will have two (2), two-year options to renew. Each renewal period will be for two (2) years. The City of Coalinga will grant extensions for each of these years on a two (2) year basis, subject to prior review and approval.

12. The contract between the agency and the City of Coalinga is non-transferable. The agency shall under no circumstances assign the agreement without written permission of the City. The agency shall notify the City, in writing, of any changes in business ownership at least thirty (30) days prior to said change.

13. The City reserves the right to add additional accounts receivable collection items to the existing contract. Agency agrees pricing will be the same for any additional receivables.

14. The agency is required to carefully and fully investigate all the requirements of the RFP. By submitting a proposal, the agency represents and certifies to the City that such investigation has been completed and that it fully understands the specifications/scope of services.

15. The City will not reimburse agency for any costs involved in the preparation and submission of proposals.

Furthermore, this RFP does not obligate the City to accept or contract for any expressed or implied services.

16. If a requirement cannot be met by an agency, then the agency should submit a ‘no proposal response’ for the items affected. Alternate or equivalent items may be submitted for consideration by the City, unless otherwise specified.

17. All submitted proposals and information included therein or attached there to shall become public records upon contract award.

18. The specifications/scope of services is a suggested list only. If agency needs to revise or make additions, computer or typed alterations are allowed as long as the City format is maintained.

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19. The City reserves the unilateral right to amend, cancel, or reissue this RFP in writing at any time.

20. Disclosure: Materials submitted by Professionals are subject to public inspection under the California Public Records Act (Government Code Sec. 7927.000 et seq.), unless exempt. Any determination that a document is or is not a public record pursuant to the Public Records Act shall be decided solely by the City. In the event the Professional believes a document or record to be confidential, the Professional shall mark the document in a conspicuous location as “CONFIDENTIAL” before providing it to the City.

21. Any questions regarding this RFP should be referred to Mai Vang, Financial Services Director via email at [email protected].

E. Schedule for RFP Process
Date and Time Process Steps
March 31, 2026 Request for Proposal released
April 9, 2026 by 5 PM PST Deadline to submit questions to City of Coalinga April 17, 2026 Reponses to Questions Posted
April 21, 2026 by 5 PM PST Proposal Submission Deadline April 22 – May 1, 2026 Evaluation of Proposals
May 8, 2026 Notification of Awards
May 21, 2026 (or after) Contract Start Date
Section II: Evaluation and Award
A final contract will be awarded to the most competitively priced and qualified proposal. The City reserves the right to select the appropriate firm based on the most qualified proposal. The determination of the most qualified and most competitively priced proposal may involve all or some of the following factors:

1. Qualifications of Firm (20%)
Strength and stability of the firm; strength, stability, experience and technical competence of for handling collections for public agencies of a similar size, particularly with utility services and service fees.

2. Related Experience (15%)
Experience in providing services similar to those requested herein; experience working with public agencies; size of the agency; assessment by client references.

3. Key Performance Indicator/Reporting (15%)
Ability to track, measure, and report performance through clearly defined metrics.

4. Technology (10%)
Availability and the use of secure technology for customers and the City.

5. Compliance (10%)
Adherence to all applicable federal, state, and local laws and regulations governing debt collection and data privacy, including FDCPA, CFPB Regulation F, CCPA/CPRA, TCPA, and FCRA. This includes policies demonstrated, training, and internal controls to ensure lawful, ethical, and secure collection practices.

6. Completeness of Response (10%)
Completeness of response in accordance with RFP instructions; exceptions to or deviations from the RFP requirements; inclusion of required licenses and certifications.

7. Competitive Cost and Price (10%)

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Coalinga City CouncilMay 21, 2026

Coalinga City Council
May 21, 2026