Delano City Council
May 6, 2024

obstacles and contributing to congestion for pedestrian, vehicle, and bicycle traffic.

H. Regulations for sidewalk vending are needed to accommodate sidewalk vendors’ equipment while safeguarding pedestrian movement on public sidewalks.

I. Regulations of sidewalk vendors engaged in the sale of food and food products are needed to protect the public health, safety, and welfare by ensuring that sidewalk a vendors prepare food safely and in accordance with the requirements of the Kern County Public Health Department.

J. The City Council adopts this Ordinance under the authority provided in Government Code § 51036 et seq. and finds that the reasonable regulations and requirements provided herein are directly related to the City’s purpose of protecting the health, safety and welfare of its residents, first responders, visitors, and sidewalk vendors themselves, including ensuring compliance with the American with Disabilities Act of 1990 (“ADA”) and other disability standards.

K. Location restrictions for sidewalk vendors related to curb returns are necessary to ensure safe and efficient paths of travel for pedestrians between intersections where vehicle drivers require adequately clear sight lines for traversing across and making turns within intersections.

L. Location restrictions for sidewalk vendors related to public and private schools (K-12) are required for student, faculty, administration, caretaker, and vendor safety because sidewalks adjacent to schools often become congested with pedestrians that can bottleneck and impede movement. The proposed restrictions would eliminate exacerbating congestion with additional obstructions in such adjacent sidewalks.

M. Location restrictions for sidewalk vendors related to police or fire department stations are necessary to prevent obstruction to first responder personnel that must quickly enter and exit to and from their facilities in emergency situations. These restrictions will help protect sidewalk vendors, first responders, and those awaiting imminent medical or safety attention.

N. Location restrictions for sidewalk vendors related to cemeteries are required to ensure the safe ingress and egress of cemetery visitors, including vehicular funeral processions that require clear, unimpeded paths of travel.

Further, the proposed restrictions will help preserve cemeteries’ solemnity and dignified nature by establishing a reasonable buffer between the venues and immediately adjacent sidewalk vendors, which can create unnecessary noise and other disruptive disturbances.

City of Delano
Ordinance No. ____

SECTION 2. Chapter 6.26 (Sidwalk Vending) of Title 6 (Business Regulations) of the DMC is amended to add a new section 6.26.055 which will read as follows:

6.26.055 Identification cards required.

While conducting duly authorized sidewalk vending in the City, each employee or operator of a sidewalk vending cart must wear or carry a City-issued identification card that corresponds to the card holder, vending license, and cart permit.

SECTION 3. Subsection 11 of Subsection A of Section 6.26.060 (Application requirements) of Chapter 6.26 (Sidwalk Vending) of Title 6 (Business Regulations) of the DMC is amended in its entirety to read as follows:

11.Identification of each employee that will be operating the vending cart and a certificate of completion of a food handler course for each such employee if the cart will be used for food vending.

SECTION 4. Section 6.26.090 (Renewal of permit) of Chapter 6.26 (Sidewalk Vending) of Title 6 (Business Regulations) of the DMC is renamed and amended in its entirety to read as follows:

6.26.090 Renewal of license, permit, and identification cards.

For continued authorized sidewalk vending operations, sidewalk vending licenses and cart permits required under this Chapter 6.26 must be renewed each calendar year by filing an application under penalty of perjury updating information provided to the department in the original application and a financial report of annual earnings. Identification cards associated with a sidewalk vending license and cart permit must be updated with each annual renewal to ensure accurate identification of operators associated with such licenses and permits.

SECTION 5. Subsection D of Section 6.26.120 (Operational requirements) of Chapter 6.26 (Sidewalk Vending) of Title 6 (Business Regulations) of the DMC is amended in its entirety to read as follows:

D. No cart that is used for sidewalk vending may exceed a length of seventytwo inches, a width of 54 inches, or a height, including roof or awning, of 96 inches, exclusive of a separate condiment table no larger than 48 inches long and 24 wide and a trash receptacle no larger than 20 gallons in capacity.

SECTION 6. Section 6.26.120 (Operational requirements) of Chapter 6.26 City of Delano
Ordinance No. ____

(Sidewalk Vending) of Title 6 (Business Regulations) of the DMC is amended to add new subsection P which will read as follows:

P. Sidewalk vending carts and associated equipment authorized for associated use under this Chapter 6.26, including without limitation, trash receptacles, must be removed during non-vending hours or when sidewalk vending has otherwise ceased. Items left behind within the public right-ofway may be subject to City removal.

SECTION 7. Subsection 2 of Subsection A of Section 6.26.140 (Prohibitions on placement of stationary or roaming carts) of Chapter 6.26 (Sidewalk Vending) of Title 6 (Business Regulations) of the DMC is amended in its entirety to read as follows:

2. Within 15 feet of a curb return. For purposes of this subsection, “curb return” means the curved connection of curbs where two streets come together to form an intersection.

SECTION 8. Subsection A of Section 6.26.140 (Prohibitions on placement of stationary or roaming carts) of Chapter 6.26 (Sidewalk Vending) of Title 6 (Business Regulations) of the DMC is amended to add new subsections 11 through 14 which will read as follows:

11. Unless otherwise specified, within any property other than a sidewalk, as defined in Section 6.26.020, including, without limitation, a roadway, median, or traffic island.

12. Within 200 feet of the property line of any private or public school (K-12).

13. Within 100 feet of the property line of a police or fire department station.

14. Within 100 feet of the property line of a cemetery.

SECTION 9. Subsection A of Section 6.26.150 (Sidewalk vending related to parks and special events) of Chapter 6.26 (Sidewalk Vending) of Title 6 (Business Regulations) of the DMC is amended in its entirety to read as follows:

A. No sidewalk vending is allowed within three hundred feet of a certified farmers market, permitted swap meet, or event associated with a temporary special permit. Pursuant to Government Code § 51038(d), a “temporary special permit” is a permit issued by the City for the temporary use of, or encroachment on, the sidewalk or other public area, including, but not limited to, an encroachment permit, special event permit, or temporary event permit, for purposes including, but not limited to, filming, parades, or outdoor concerts.

City of Delano
Ordinance No. ____

SECTION 10. Chapter 6.26 (Sidewalk Vending) of Title 6 (Business Regulations) of the DMC is amended to delete DMD Section 6.26.170.

SECTION 11. Environmental Assessment. Adoption of this Ordinance is exempt from further environmental review under the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq., “CEQA”) and CEQA Guidelines (14 Cal. Code of Regs., § 15000 et seq., “CEQA Guidelines”) because the actions contemplated do not constitute a “project,” pursuant to CEQA Guidelines § 15378. Further, pursuant to CEQA Guidelines § 15061(b)(3), it can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment.

SECTION 12. Repeal and Supersession. The City Council adopts this Ordinance with the specific intent of superseding any contrary regulation or administrative policy and procedure. Consequently, all regulations that conflict with this Ordinance are repealed.

SECTION 13. Construction. This Ordinance must be broadly construed to achieve the purposes stated in this Ordinance. It is the City Council’s intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance.

SECTION 14. Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the city council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable.

SECTION 15. Publication. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with state law.

SECTION 16. Effective Date. This Ordinance will become effective 30 days after adoption.

PASSED AND ADOPTED this ___ day of ______________, 2024. __________________________
Joe L. Alindajao, Esq., Mayor
City of Delano
Ordinance No. ____

ATTEST:
_________________________
Nancy Garcia, City Clerk

APPROVED AS TO FORM
By: ________________________________
Mark D. Hensley, City Attorney
1 CITY OF DELANO

STAFF REPORT
May 6, 2024
Agenda Item: 22
TO: Honorable Mayor and Members of the City Council
FROM: Maribel Reyna, City Manager
By: Mark Hensley, City Attorney
SUBJECT: Receive and File Overview and Initial Analysis of Rent Control and Tenant Protection Initiative Petition (Petition), including Comparison of Petition to Existing State Laws, and Council Discussion and Requests for Additional Information and Analysis.

RECOMMENDATIONS
Receive and File Overview and Initial Analysis of Rent Control and Tenant Protection Initiative Petition (Petition), including Comparison of Petition to Existing State Laws, and Council Discussion and Requests for Additional Information and Analysis.

OVERVIEW
On December 11, 2023, proponents Yolanda Vega and Guadalupe Martinez filed a Notice of Intent to Circulate Petition for the purposes of adopting an initiative that would enact a rent control and eviction control ordinance in the City of Delano. At its February 5, 2024, Council Meeting, the Council authorized staff to analyze and prepare a report regarding the Petition pursuant to Elections Code §9215.

At the April 2, 2024, Council Meeting, the Council authorized the hiring of consultants to prepare a financial impact/fee study regarding the personnel the City would need to implement and carry out the obligations placed on the City by the Petition.

The purpose of this staff report is to provide a more thorough overview of the Petition, including how it compares to current state laws regarding rent control and tenant eviction and other rights. Staff estimates that there will be several more agenda items regarding the Petition over the next several months for purposes of continuing to educate the Council about, and to take action related to, the Petition.

2 ANALYSIS OF PETITION
The Petition, if approved by the voters, would establish residential rent control, and provide tenant protections including prohibiting landlords from evicting tenants for reasons that are not specifically listed in the Petition. Although there are statewide rent control and eviction control laws already in place, Delano does not currently have its own local limits on residential rents or local restrictions on tenant evictions. The Petition is much more restrictive than state law regarding rent control and in some instances appears duplicative of state laws regarding tenant protections, while in other instances provides additional tenant protections that are more restrictive than or not currently provided for under state law.

The requirements and issues raised by the Petition regarding rent control, eviction controls, relocation assistance, tenant protections, City costs and funding, and enforcement of the Petition are discussed below.

I. RENT CONTROL
A. Rent Control Under the Petition
The Petition would establish and set a maximum allowable rent on rent controlled residential units in the City of Delano. State law—the Costa-Hawkins Rental Housing Act (Civil Code § 1954.50, et seq.)—exempts from local rent control laws all residential dwelling units that were issued a certificate of occupancy after February 1, 1995, and single units with separately alienable title (i.e., single-family homes and condominiums).

Accordingly, those units would be exempt from the rent control provisions of the Petition. For those rental units that are subject to the rent control provisions of the Petition, the base rent for tenancies that commenced on or before the effective date of the Petition would be the rent in effect on December 11, 2023. The Petition would establish a maximum allowable annual rental increase for all rent-controlled units equal to 60% of the percentage increase in the Consumer Price Index, or three percent, whichever is less.

No more than one rent increase per year could be imposed and the annual rent increase would take effect on September 1 of each year. Landlords would remain free to set the initial rental rates for new tenancies. That is, after a tenant vacates a unit, the landlord may reset the initial rent for the new tenant at market rates.

The Petition would prohibit landlords from charging tenants for utilities in addition to rent unless the utility services are separately or individually metered, and the utility account must be registered to the tenant and not the landlord. This provision applies only to tenancies entered into after the effective date of the Petition.

Under the Petition, a tenant could file a petition with the city seeking a downward rent adjustment based on a decrease in housing services, substantial deterioration of the unit (other than ordinary wear and tear), or failure of the landlord to provide adequate housing services or to comply substantially with applicable housing, health, and safety codes.

Conversely, landlords would be able to petition the city for an upward rent adjustment

3 when such an adjustment is necessary to provide the landlords with a reasonable return on their investment. Petitions for rent adjustments would be heard and decided by a hearing officer designated by the city. The hearing officer’s decision would be appealable to the City Council.

The City is working with the consultant to determine the likelihood and potential frequency of landlords seeking upward adjustments in rent due to the relatively low rent increases provided for in the Petition. The average CPI for the twenty-year period of 2003 through 2023 was 2.22 (this was calculated by capping years that exceeded 3% to the 3% cap in the Petition). If this trend continues this means landlords will have been allowed to increase rents by only1.3 % per year. This raises the issue of whether this provided landlords with a “fair return” under the law. As was discussed in the April 2, 2024, staff report, the City could be liable for a “taking” of property interest if landlords are not provided with a fair return. This issue will be addressed in detail in a future staff report after staff has completed its work with the consultant on this issue.

B. Rent Control Under Existing State Law
Existing state law, AB 1482, which took effect on January 1, 2020, includes rent control provisions of its own. AB 1482 applies to multi-family units that were issued certificates of occupancy more than15-years ago on a continuously rolling. Accordingly, each passing day could potentially bring new rental properties within AB 1482’s rent control requirements, depending on the date the first certificate of occupancy was issued for the property. This state law prohibits an owner of residential property from, over the course of any 12-month period, increasing the gross rental rate for a unit by more than 5% plus the most recent April-to-April percentage change in the Consumer Price Index, or 10%, whichever is lower. The law also prohibits landlords from increasing the gross rental rate in more than two increments over a 12-month period. Similar to the Petition, the state’s rent control formula does not apply to single family homes or condominiums except the state law is applicable to homes and condominiums owned by coroporations.

If the Petition passes, then units with certificates of occupancy issued prior to February 1995 will be subject to the rent control formula set forth in the rent control formula and the state’s rent control formula will apply to all other multi-family units unless they were issued a certificate of occupancy with the past 15 months.

C. Staff Has Concerns re the Council and City Resources Required to Implement the Petition’s Requirements and May Seek Alternative Council Actions to Address these Concerns
The staff believes the public will be very confused by the above and that a lot of time will be spent in the future addressing the issue of the different rent control regulations and that the City is likely to receive a lot of criticism even though it is not the City’s actions that will have caused there to be essentially numerous classifications of units with regard to the applicability of rent control and which laws are applicable – multi-family versus single family and condominium units; multi-family units built prior to February 1995

4 versus multi-family units built more than 15 years ago. Under the Petition, the City will only be responsible for tracking units built prior to February 1995 for purposes of monitoring compliance with the Petition’s rent control formula.

Staff is also concerned about the potential of the City Council having to intervene in rent control disputes and the eviction and tenant protections discussed below. In many instances, in other rent control regulations found throughout the state, either the court system or a separate hearing board is appointed to resolve these types of issues. As the analysis of the Petition proceeds, Staff is desirous of exploring the potential of seeking to have the proponents alter their Petition should the required number of signatures be gathered or alternatively having the City place an alternative ballot measure before the electorate which provides for a different dispute resolution process than that provided for in the Petition and potentially a different rent control formula.

Staff will be a position to better advise the Council on this option after the additional studies discussed in this report are completed.

II. EVICTION CONTROLS, RELOCATION ASSISTANCE, AND
TENTANT PROTECTIONS.

Unlike rent control, eviction control and tenant protections will be applicable to all residential units that are being rented. Staff will be responsible for tracking all such units and providing assistance in resolving violations or disputes arising from eviction and tenant protection rights.

A. Eviction Controls
The Petition would establish “just cause for eviction” requirements. No tenancy, regardless of its length, could be terminated by a landlord except for reasons that are specifically listed in the Petition.
“Just Cause” includes both “At-Fault Just Cause” and “No-Fault Just Cause.” “At-Fault Just Cause” includes:

1. Default in the payment of rent.

2. Breach of a material term of the lease.

3. Causing substantial damage to the unit.

4. Nuisance (e.g., creating a threat to the health and safety of other occupants of the property or of the immediate area).

5. Refusal to all owner entry as required by law.

6. Landlord’s return to primary residence (landlord seeks to recover possession of the unit for his/her occupancy as a primary residence).

5 “No-Fault Just Cause” includes:

1. Owner move-in (owner seeks to recover possession for use as a primary residence by the owner, a professional caretaker, or the owner’s spouse, domestic partner, child, parent, or grandparent).

2. Withdrawal of the property from the rental market. (This is a requirement of the Ellis Act, a California state law passed in 1985. The Ellis Act preserves the right of landlords, if they so choose, to get out of the rental business entirely by withdrawing all units in a building from the rental market.)1

3. Temporary vacation of a unit for the purpose of performing substantial renovations.

B. Eviction Controls—Comparison to Existing State Law
State law imposes very similar “just cause” eviction requirements. However, the state’s just cause eviction requirements only apply if the tenant has continuously and lawfully occupied a unit for at least 12 months. In addition, the Petition would provide additional, stricter tenant protections not provided for in state law. A detailed comparison of the eviction controls provided for in the Petition versus those in existing state law is set forth in the attached exhibit.

D. Relocation Assistance for No-Fault Just Cause Evictions Under the Petition, a landlord that terminates a tenancy for no-fault just cause would be required to make a relocation payment to the tenant household in an amount equal to four times the monthly fair market rent (as determined by HUD for a unit of equivalent size in the Bakersfield Metropolitan Statistical Area) for the rental unit being vacated, or $8,000, whichever is more. Payment must be made at the time the notice of termination of tenancy is served. If the tenant is 62 or older, disabled, or terminally ill at the time the notice is provided, the tenant household is entitled to an additional $4,000 payment.

These minimum relocation payment amounts will be adjusted annually at the rate of increase in the CPI for All Urban Consumers: Rent of Primary Residence in California for the preceding calendar year.

E. Relocation Assistance—Comparison to Existing State Law For no-fault just cause evictions, state law also requires owners to provide tenants with relocation assistance. However, owners are only required to provide tenants with a direct payment equal to one month’s rent or, alternatively, to waive the payment of rent for the final month of tenancy.

1 The Ellis Act generally requires the property owner to not place the units back on the market for a period of five years and there are penalties for owners withdrawing units from the Act prior to the 5 year period.

6 F. Additional Tenant Protections
Right to Organize. The Petition would give tenants the right to organize and form tenant associations with which landlords must confer in good faith regarding issues of common concern. There is currently no state law which provides for this right.

Prohibition on Harassment. The Petition includes a lengthy list of prohibited conduct on the part of the landlord and the landlord’s representatives. A landlord that violates any of the prohibitions would be subject to a civil action in which the tenant may recover not less than three times actual damages, or $1,000, whichever is greater, for each and every such offense. If the tenant is disabled or is age 62 or over, an additional civil penalty of up to $5,000 per offense could be imposed. Prohibited conduct would include:

1. Reducing, interrupting, terminating, or failing to provide housing services, as defined, that are required by a rental agreement or by state, county, or local law.

2. Failing to perform repairs of maintenance required by a rental agreement or by law.

3. Failure to exercise due diligence in completing repairs or maintenance once undertaken.

4. Abuse of the landlord’s right of access into a rental unit.

5. Removing or threatening to remove from the rental unit personal property, furnishings, or other items that belong to the tenant or that are part of the housing services without the prior written consent of the tenant, except when done in accordance with law.

6. Influencing or attempting to influence a tenant to vacate a rental unit through fraud, intimidation, or coercion.

7. Offering payments to a tenant to vacate more than once in six months, after the tenant has notified the landlord in writing that the tenant does not desire to receive such offers.

8. Attempting to coerce a tenant to vacate with offers of payments to vacate that are accompanied with threats or intimidation.

9. Threatening the tenant, or the tenant’s guests, by word or gesture, with physical harm.

10. Interfering with a tenant’s right to quiet use and enjoyment of a rental unit as that right is defined by California law.

7 11. Refusing to accept or acknowledge receipt of a tenant’s lawful rent payment or rental assistance payment.

12. Refusing to cash a rent check or money order for more than 30 days.

13. Interfering with a tenant’s right to privacy.

14. Requesting information that violates a tenant’s right to privacy.

15. Misrepresenting to a tenant that he/she is required to vacate a rental unit or otherwise entice a tenant to vacate a rental unit through misrepresentations or concealment of material facts.

16. Forcing a tenant to vacate a rental unit and reregister to avoid classification as a tenant under California Civil Code section 1940.1.

17. Unilaterally imposing or requiring an existing tenant to agree to material new terms of tenancy or to a new rental agreement, unless authorized or required by law or unless the tenant accepts the terms despite having received written notice from the landlord stating that the tenant need not accept such terms.

18. Removing a housing service for the purpose of causing the tenant to vacate the renal unit.

19. Committing elder financial abuse (as defined by state law) of a tenant.

20. Failing to provide or failing to adequately provide housing services to a tenant that are customarily provided to other tenants in the building who pay a different rent amount or who use a different source of income to pay rent.

21. Failing to provide or failing to adequately provide housing services to a tenant that are customarily provided to other tenants in the building when the tenant owed COVID-19 rental debt.

22. Releasing information protected by the tenant’s right to privacy except as required or authorized by law.

23. Conducting elective renovation or construction work on a rental unit for the purpose of harassing a tenant.

24. Providing false written or verbal information regarding any federal, state, county, or local tenant protections, including mischaracterizing the nature or effect of a notice to quit or other eviction notice.

8 25. Communicating with the tenant in a language other than the tenant’s primary language for the purpose of intimidating, confusing, deceiving or annoying the tenant.

26. Interfering with the right of tenants to engage in organizing activities.

27. Engaging any tenant in any form of human trafficking as a condition of that tenant’s continued occupancy of a rental unit.

28. Other repeated acts or omissions of such significance as to substantially interfere with or disturb the comfort, peace or quiet of any person lawfully entitled to occupancy of such rental unit and that cause, are likely to cause, or are intended to cause any person lawfully entitled to occupancy of a rental unit to vacate such rental unit or to surrender or waive any rights in relation to such occupancy.

The Petition would allow the city, by regulation, to augment this list, provided no part of it is eliminated, reduced, or weakened.

Tenant Safety Plans for Repairs, Construction, and Substantial Renovation of Occupied Rental Properties. The Petition would prohibit a landlord from performing any repair, construction, or substantial renovation on an occupied rental unit, a building containing occupied rental units, or on the same lot as an occupied rental unit, without first obtaining the city’s approval of a “Tenant Safety Plan” if the work requires a permit or is performed in response to an order to abate from the city’s building official. Emergency repairs that must be completed in less than 48 hours to ensure the health and safety of a tenant household, and for which no permit is required, are exempt from this requirement.

The Petition would prohibit the city from issuing permits for repairs, construction, or substantial renovation unless (i) the landlord has submitted, and the city has approved, a Tenant Safety Plan, and (ii) the landlord has provided the city with a declaration stating that the landlord has served affected tenants with a “Notice of Substantial Renovation” and a copy of the non-confidential portions of the Tenant Safety Plan.

The Tenant Safety Plan must, at a minimum, provide the following information:

1. Identification of the landlord, the general contractor responsible for the work, and any specialized contractor responsible for hazardous material abatement.

2. Identification of all affected tenants, including the current rent charged to each tenant and the date of each tenant’s last rent increase.

3. Description of the scope of work covered in the construction, repair, or renovation.

4. Identification of the impact of the renovation on the habitability of affected rental units, including a discussion of impact severity and duration of noise, utility interruption, exposure to hazardous materials, interruption of fire safety systems,

9 inaccessibility of all or portions of each affected rental unit, other potential health hazards such as exposure to infectious diseases, and disruption of other housing services.

5. Identification of the mitigation measures that will be adopted to ensure that Tenants are not required to occupy an untenantable dwelling outside of the hours of 8:00 am through 5:00 pm, Monday through Friday, and are not exposed at any time to toxic or hazardous materials including, but not limited to, lead-based paint and asbestos.

6. Identification of the impact of the renovation on the personal property of affected Tenants, including work areas which must be cleared of furnishings and other Tenant property, and the exposure of Tenant property to theft or damage from hazards related to work or storage.

7. Identification of the mitigation measures that will be adopted to secure and protect Tenant property from reasonably foreseeable damage or loss.

8. Identification of a phone number and email address of a responsible party who will be responsive to tenant complaints about the execution of the work.

The city would be required to make a determination as to whether the proposed Tenant Safety Plan is adequate within five working days of receipt. If the city finds the Plan to be deficient, it must provide the landlord with a written description of the deficiencies.

Once the Plan is approved, the landlord would be required to provide a copy to impacted tenants along with a notice informing them of the right to appeal the Plan.

Either the landlord or a tenant may appeal the city’s determination regarding a Tenant Safety Plan. The Petition is not clear with regard to whom the appeal is made (for example, to a hearing officer or to the City Council, or both in succession).

If the work proposed is a “substantial renovation,” the landlord would be required to serve a Notice of Substantial Renovation on the affected tenants, which notice must be written in the language in which the original lease was negotiated. The Petition specifies the mandatory contents of the notice.

When a tenant will be displaced from a unit for renovation, repairs, or construction work for a period of fewer than 30 days, the tenant would be entitled to short-term relocation payments in an amount equal to $180 per day ($150 for lodging accommodations and $30 for meals). A tenant receiving short-term relocation payments would remain obligated to pay rent during the time of displacement. The tenant may choose not to receive shortterm relocation payments, in which case the tenant would not be obligated to pay any rent until the tenant reoccupies the unit. The daily minimum per diem required for short-term relocation would be adjusted annually at the rate of increase in the Consumer Price Index for All Urban Consumers: Rent of Primary Residence in California for the preceding calendar year.

10 Buyout Offers and Agreements. The Petition would regulate the process by which a landlord may enter into a buyout agreement with a tenant—viz., an agreement in which a landlord pays a tenant money or other consideration to vacate a rental unit. A landlord would be required to provide the tenant with a written disclosure at least 10 days prior to making a buyout offer. The disclosure must inform the tenant of his/her rights as specified in the Petition. The buyout agreement itself must provide the tenant with a right to rescind for up to 30 days after execution by all parties and must inform the tenant of this right, and the right to consult with the city or an attorney prior to deciding whether to enter into a buyout agreement.

G. State Law re Additional Tenant Protections
There is currently no state law regarding tenant protections identified above except with respect to many of the harassment protections. Under existing state law, most of the tenant protections enumerated above (items 1 through 28) are already covered by state law. Staff will be doing additional research to determine what, if any, real additional protections are provided to tenants regarding these 28 items. This may be an area where changes to the Petition may be helpful to reduce the burden on the City of being placed in a position of enforcing existing state laws.

III. FUNDING, ENFORCEMENT AND CITY RESOURCES TO

IMPLEMENT THE PETITION
A. Implementation/Funding
The Petition would be enforced and administered by a newly established city department.

The Petition contemplates that the department would be funded by an annual rental housing fee that landlords are required to pay. The City Council would determine the amount of the fee. Until the Council makes that determination, the fee would be set at $120 per rent-controlled unit per year and $84 per unit per year for units that are exempt from the rent control provisions.

The duties of the department would include, without limitation: determining the annual allowable rent increase; adjudicating petitions for rent adjustments; promulgating regulations for the administration and enforcement of the Petition; charging and collecting the rental housing fee; and reporting annually to the City Council. The city would also have the power to seek court intervention to enforce the Petition though injunctive and other civil relief provided under the Petition.

Staff has contracted with a consultant to prepare a study to determine the additional staffing positions needed, impact on existing staff positions, space and equipment needed for the City to implement and carry out the duties set forth in the Petition. This will include a fee study as to how much each unit will need to be charged to pay for such costs. Staff is still reviewing the legal process for approving a fee program for this purpose.

11 B. Enforcement
Any aggrieved tenant, or the city, would be authorized to enforce the Petition by means of a civil action, including actions for damages and for injunctive/equitable relief. In any action brought for failure to provide required relocation payments, wrongful eviction damages, or damages for excess rent, a prevailing tenant would be entitled to not less than three times the actual damages. A prevailing tenant would also be entitled to an award of reasonable attorneys’ fees. If the city were to bring an action, it would have the option of seeking an award of attorney fees at the time it files a complaint. If the city chooses to seek attorney fees in an action against a landlord, the prevailing party in the action would be entitled to an award of reasonable attorney fees. Neither a tenant nor the city would be required to exhaust administrative remedies before filing suit under the Petition.

FISCAL IMPACT
The fiscal impact of the Petition is still under review and will be brought back to the City when the fee study discussed above is completed.

ATTACHMENTS

1. Comparison of Petition with Existing State Law.
1 AB 1482 State Rent Control and Tenant Eviction and
Protection Regulations
Rent Control Formula. Annual increases limited to .6% of the CPI with a cap of 3%.

Eviction and Tenant Protections:

JUST CAUSE REQUIREMENT. Requires just cause for
termination of a tenant that has continuously and lawfully occupied a unit for 12 months. If any additional adult tenants are added to the lease before an existing tenant has
continuously and lawfully occupied the residential real property for 24 months, then AB 1482 only applies if either of the following are satisfied: (1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more; or (2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.
“Just Cause” includes both “At-Fault Just Cause” and “NoFault Just Cause.” AT-FAULT Just Cause includes:

1. Default in the payment of rent.

Proposed Initiative Petition Rent Control and Tenant Eviction and Protection Regulations
Rent Control Formula. Annual increases limited to 5% plus CPI with a cap of 10%.

Eviction and Tenant Protections:

JUST CAUSE REQUIREMENT. Just cause required to terminate any tenancy (i.e., regardless of how long the tenant has been living at the premises).
“Just Cause” includes both “At-Fault Just Cause” and “No-Fault Just Cause.” In both cases, the Petition would add additional protections that are not provided for in AB 1482. These additional protections are noted in green below.

AT-FAULT Just Cause includes:

1. Default in the payment of rent.

In any unlawful detainer action brought to recover possession for failure to pay rent, the tenant would have a defense if the landlord impeded the tenant’s effort to pay rent by refusing to accept rent paid by a third party on behalf of the tenant or refusing to provide 2 2. Breach of a material term of the lease.

Before issuing a three-day notice to quit for a curable lease violation, the owner must give the tenant notice and an opportunity to cure. The following are considered material breaches and are similar or somewhat similar to items in the right-hand column: Assigning or subletting in violation of the lease; Employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee; and failure to deliver possession to owner after tenant terminates the lease.
[Note: items 3 through 7 are roughly the equivalent of items 3 and 4 in the right hand column]

3. Maintaining, committing, or permitting the maintenance or commission of a nuisance.
a W-9 form or other necessary documentation for the tenant to receive rental assistance from a government agency, non-profit organization, or other third party.

2. Breach of a material term of the lease.

Notice of the violation and a minimum of 14 days’ opportunity to cure is required.

Landlord may not terminate a tenancy based on tenant’s
sublease of the unit if the landlord has unreasonably withheld the right to sublease. If the tenant continues to reside in the unit as his/her primary residence and the sublease replaces one or more departed tenants on a one-for-one basis, the landlord’s refusal to consent to a sublease must state the reasons in writing and within 14 days of receipt of the tenant’s request. Failure of the landlord to respond within 14 days is deemed consent to the sublease. The landlord’s refusal to consent to a sublease may not be based on the creditworthiness of the proposed subtenant if that subtenant will not be legally obligated to pay some or all of the rent directly to the landlord.

A landlord may not terminate a tenancy because of the addition to the unit of a tenant’s child, parent, grandchild, grandparent, brother or sister, so long as the number of occupants in the unit does not exceed the maximum lawful number.

3. Causing substantial damage to the unit.

Requires landlord to give notice and at least 14-day opportunity to cure before attempting to recover possession. After the notice, 3 4. Committing waste.

5. Tenant refuses to execute a written lease extension or renewal after expiration of a lease.

6. Criminal activity on the property or criminal activity directed at the owner or owner’s agent.

7. Using the premises for an unlawful purpose.

8. Refusal to allow owner entry.
the tenant must have continued to cause or permit substantial damage to the unit, refused to cease damaging the premises, or refuse to either make a satisfactory correction or pay the reasonable costs of repairing the damage over a reasonable period of time.

4. Nuisance (tenant creating a threat to the health and safety of other occupants of the property or of the immediate area).

The fact that a tenant has been arrested or convicted of a crime, been the victim of a crime, or contacted the police or other emergency services, in and of itself, is not evidence of nuisance for purposes of this provision.

5. Refusal to allow owner entry.

Unless necessary due to a documented emergency affecting a tenant’s health and/or safety, all repair or improvement work must be scheduled in compliance with a “Tenant Safety Plan” required by the initiative ordinance.

Written notice with a minimum 14-day cure required.

Tenants may request that workers, agents, or any other people requesting access to the unit wear face masks and may deny access if such a request is refused.

6. Landlord’s return to primary residence. Landlord seeks to recover possession for his/her occupancy as a primary residence after tenant has failed to vacate upon proper notice. This only applies when the landlord has previously occupied the unit as 4 NO-FAULT Just Cause includes:

1. Intent to occupy the property by the owner, their spouse, domestic partner, children, grandchildren, parents, or
grandparents.
his/her primary residence and has the right to recover possession under a written rental agreement with the current tenant (which rental agreement must be of a term no longer than 12
consecutive months).

NO-FAULT Just Cause includes:

1. Owner move-in. Owner seeks to recover possession for use as a primary residence by the owner, a professional caretaker, or the owner’s spouse, domestic partner, child, parent, or grandparent.

For purposes of this provision, an owner is a person with at least a 51% ownership interest in the property.

The person moving into the unit must intend to do so within 90 days after the tenant vacates and must intend to occupy the unit as a primary residence for at least 36 consecutive months.

A professional caretaker may move in if the landlord (or a relative of landlord) already lives at the property and is over the age of 65 or disabled. If the caretaker is charged rent, it cannot be more than the previous rent in effect at the time the previous tenant vacated.

Only one specific unit per building may undergo an “Owner Movein” eviction. Landlord may request a reasonable accommodation if landlord or a relative of landlord is disabled and a different unit is necessary to accommodate the person’s disability.
5 If a landlord terminates a tenancy for owner move-in purposes and the displaced tenant subsequently reoccupies the unit or relocates to a comparable unit on the same property, the landlord may not terminate that tenancy for a period of four years beginning from the date of the latest notice terminating tenancy.

The notice terminating tenancy for an owner move-in must contain the name, address of primary residence, and relationship to the landlord of the person intended to occupy the unit, a list of all real property owned by each intended future occupant, and the address of the real property, if any, on which each intended future occupant claims a homeowner’s property tax exemption.

If the landlord, landlord’s relative, or caretaker fails to occupy the unit within 90 days after the tenant vacates, the landlord must (i) offer the unit to the tenant that vacated and at the same rent in effect at the time it was vacated, and (ii) pay tenant all reasonable expenses incurred in moving to and from the unit. If the landlord, landlord’s relative, or caretaker does not occupy the unit within 90 days or does not occupy the unit for at least 36 months, the landlord has the burden of producing evidence that the failure to occupy occurred in good faith.

If the landlord, landlord’s relative, or caretaker fails to occupy the unit for 36 months and the previous tenant declines to move back into the unit, any new tenant moving into that unit will have as the original base rent the rent in effect at the time the previous tenant vacated.

Eviction protection for elderly, disabled, or terminally ill tenants.

A landlord may not evict a tenant for an owner move-in if: (i) the 6 2. Withdrawal of the property from the rental market. [Note: Items 3 and 4 are similar to item 3 in right hand column]

3. An owner complying with an order issued by a
government agency relating to habitability that
necessitates vacating the property, an order by a
tenant has resided in the unit for at least three years and is either at least 62 years old or disabled, or (ii) the tenant is certified as being terminally ill by the tenant’s treating physician. However, the landlord may evict a disabled tenant for an owner move-in if the landlord or relative moving in is also disabled and there are no other units available at the property. Likewise, a landlord may evidence a terminally ill tenant for an owner move-in if the landlord or relative who will occupy the unit is also terminally ill and no other units are available at the property.

School year protections for teachers and students. A landlord may not evict a tenant for an owner move-in if a child under the age of 18 enrolled in a Delano public school, or a teacher, resides in the unit, the tenant has resided in the unit for 12 months or more, and the expiration date of the notice of termination of tenancy falls during the school year.

Last in, first out. A landlord may not evict a tenant for an owner move-in if there is a comparable unit at the property occupied by a tenant who moved onto the property more recently than the tenant from whom the landlord seeks to recover possession.

2. Withdrawal of the property from the rental market.
[Incorporates all tenant protections from the Ellis Act (Gov’t Code § 7060, et seq.)]

3. Temporarily vacate for substantial renovations.

If the landlord owns other rental units in the city with the same number of bedrooms or fewer, and any such unit is vacant and 7 government agency or court to vacate the property, or a local ordinance that necessitates vacating the property.

4. Intent to demolish or substantially remodel the property.

RELOCATION ASSISTANCE FOR NO-FAULT JUST CAUSE
TERMINATIONS: Owner must either assist the tenant with
available at the time of serving notice of termination for renovations, the landlord may notify the tenant and offer the unit as an alternative to providing relocation payments that are otherwise required. In such case, the rent for the replacement unit may not exceed the lesser of the lawful rent that may be charged for the replacement unit or the lawful rent in effect at the original unit at the time of the notice of termination of tenancy.

The rental agreement must be for a term of the lesser of 90 days or until the renovations are complete on the original unit.

Tenant must be given the first right of refusal to re-occupy the unit once renovations are complete. Landlord must notify the tenant at least 60 days prior to the unit again becoming available.

Tenant must respond within 30 days of receipt of the notice.

A notice of termination for substantial renovations must inform the tenant of the right to relocation payments and the right to return to the unit on the same terms as before the notice was provided.

If the expiration date of the notice to terminate falls during the school year, the landlord must make a showing that the
substantial renovation cannot wait to be completed until after the school year. Otherwise, the initiative ordinance creates a defense to an action to recover possession if a child under 18 living in the unit is enrolled in the Delano public schools, or any teacher lives in the unit, and the student or teacher has lived in the unit for 12 months or more.

RELOCATION ASSISTANCE FOR NO-FAULT JUST CAUSE
TERMINATIONS: A landlord that terminates a tenancy for no-fault just 8 relocation by providing a direct payment equal to one month’s rent, or by waiving the payment of rent for the final month of tenancy.

RIGHT TO ORGANIZE. No state law explicitly provides for this right.

PROHIBTION ON HARASSMENT. State law does contain many
similar protections. The City Attorney’s Office will be reviewing this issue further and provide a detailed discussion on the comparison of state law to the Petition’s requirements and bring this information forward at a future Council
meeting.
cause must make a relocation payment to the tenant household in an amount equal to four times the monthly fair market rent (as determined by HUD for a unit of equivalent size in the Bakersfield Metropolitan Statistical Area) for the rental unit being vacated, or $8,000, whichever is more. Payment must be made at the time the notice of termination of tenancy is served. If the tenant is 62 or older, disabled, or terminally ill at the time the notice is provided, the tenant household is entitled to an additional $4,000 payment. The aforementioned minimum relocation payment amounts are to be adjusted annually at the rate of increase in the CPI for All Urban Consumers: Rent of Primary Residence in California for the preceding calendar year.

RIGHT TO ORGANIZE. A landlord may neither prohibit nor interfere with tenants using common areas to engage in organizing activities.

Tenants may establish a tenant association by providing their landlord with a petition signed by at least 50% of the occupied units on the property. Landlords and tenant associations must confer with each other in good faith regarding “housing services” (broadly defined as basically anything to do with the property and the use of the property), rental conditions, landlord-tenant relations, rent increases, and other issues of common interest or concern. At the request of a tenant association, the landlord or its representative must attend at least one meeting per calendar quarter.

PROHIBITION ON HARASSMENT. The Petition includes a lengthy list of prohibited conduct on the part of the landlord and the landlord’s representatives. A landlord that violates any of the prohibitions is subject to a civil action in which the tenant may recover not less than three times actual damages, or $1,000, whichever is greater, for each and every such offense. If the tenant is disabled or is age 62 or over, 9 an additional civil penalty of up to $5,000 per offense may be imposed.
1 CITY OF DELANO

STAFF REPORT
May 6, 2024
Agenda Item: 23
TO: Honorable Mayor and Members of the City Council
FROM: Maribel Reyna, City Manager
BY: Mark Hensley, City Attorney
Roman Dowling, Director of Public Works
SUBJECT: Consideration and possible action to (1) adopt Resolution No. ___ establishing procedures for increasing water, wastewater, and solid waste fees in accordance with the requirements of Proposition 218, (2) approve the preliminary Proposition 218 documents and direct staff to commence the Proposition 218 protest procedures regarding proposed rate increases for solid waste, recyclables, and green waste/organics collection services, and (3) authorize the City Manager to enter into a professional services agreement with Koppel & Gruber for related services.

RECOMMENDATIONS

1. Adopt Resolution No. ____ establishing procedures for increasing water, wastewater, and solid waste fees in accordance with the requirements of Proposition 218.

2. Authorize staff to issue a notice to all solid waste, recyclables, and green waste/organics collection services customers pursuant to Proposition 218 regarding proposed rate increases for solid waste, recyclables, and green waste/organics collection services.

3. Set a public hearing for August 5, 2024, pursuant to Proposition 218, for the City Council to receive public comments, tabulate protest ballots timely received, and consider adoption of the proposed rate schedules for solid waste, recyclables, and green waste/organics collection services.

4. Authorize the City Manager to enter into a professional services agreement with Koppel & Gruber Public Finance to assist staff with the formatting, printing, and mailing of the Proposition 218 notices and protest ballots.

5. Alternatively, discuss and take other action related to this item.

OVERVIEW
The City of Delano contracts with South Tulare-Richgrove Refuse, Inc. (“STRR”) for the provision of solid waste, recyclables, green waste, and organics collection and disposal/processing services throughout the city. There are three agreements in total: one agreement for solid waste services (both residential and commercial/multi-family), one 2 agreement for residential recyclables and green waste/organics services, and another agreement for commercial/multi-family recyclables and green waste/organics services. As explained below, each of these agreements contemplates certain rate increases over the next five years.

Proposition 218
In November 1995, the California electorate approved Proposition 218, which requires certain procedures be followed with respect to “property-related” fee increases imposed by governmental agencies. Trash collection fees are subject to a Proposition 218 “majority protest” process which provides that if a majority of the parcels in the city protest the proposed rate increase the City cannot impose the increase.

Proposition 218 requires that the City provide all properties receiving the service for which the fee is charged (in this case, trash collection services) with a minimum of 45 days written notice prior to Council holding a public hearing on a proposed rate increase. The property owners (and tenants, pursuant to legislation passed subsequent to Proposition 218) may file a written “protest” of the proposed rate increase until the close of the public hearing. Only one protest per parcel may be counted. If a majority of the parcels subject to the fees file written protests with the city prior to the close of the public hearing, Proposition 218 states that the city cannot implement the proposed fee. If a majority of the parcels do not protest the proposed increase, the Council has the authority to implement the proposed rate increase.

In accordance with Proposition 218, staff has prepared a draft Notice of Public Hearing on the proposed rate adjustments which details the proposed rate increases and explains what steps must be taken to protest the rate increases. The draft notice is attached. The notice contains a form protest ballot that can be returned if the customer wishes to protest the increases. It is critical that the notices/ballots are formatted and printed properly, and addressed in accordance with Proposition 218 requirements. To that end, staff is recommending that the City Council authorize the City Manager to enter into a professional services agreement with Koppel & Gruber Public Finance to handle the formatting, printing, and mailing of the notices/ballots.

Koppel & Gruber have extensive experience in this area, having assisted numerous cities throughout California with Proposition 218 protest proceedings. The total anticipated cost of the professional services is approximately $29,000 (approximately $18,000 of which is attributable to printing and postage costs).

Why Rate Increases Are Necessary
Rate increases are necessary to cover increasing costs associated with providing solid waste collection and disposal services. Specifically, rising costs of labor, fuel, equipment (acquisition and servicing), insurance, and myriad regulatory mandates. In particular, SB 1383 (California’s Short-Lived Climate Pollutant Reduction Strategy), a very stringent piece of solid waste legislation, requires that California reduce organic waste by 75% and increase edible food recovery by 20% by January 2025. SB 1383 also requires waste haulers to undertake new measures to reduce contamination, educate waste generators, procure recycled products with organics content, track and report on recycling participation, and assist local jurisdictions with enforcement of the State’s new recycling requirements. None of the associated costs of regulatory compliance is funded by the state. Last year, the city amended its recycling contracts to require STRR to implement all regulatory measures required by SB 1383. STRR calculated its estimated increase in costs that will result from these additional responsibilities and agreed to phase in the additional costs over a three-year period. 3 Proposed Rate Adjustments
Solid Waste Services. The franchise agreement for solid waste services (not including recyclables or green waste/organics) contemplates that rates will be adjusted upwards (or downwards, as the case may be) once yearly in an amount equal to the most recently reported annual percentage change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02) (“CPI”), rounded to the nearest tenth of a percent. The U.S. Bureau of Labor Statistics calculates and publishes the CPI figures monthly.

Between January 2022 and March 2024, the monthly CPI figures have revealed year-over-year changes ranging from +5.8% to +8.9%. The average year-over-year change reported during that 15-month period was +7.0% (rounded to the nearest tenth). For that reason, the proposed (project future) rate increases in the tables below assume, for illustration purposes only, annual increases of 7.0%. The actual annual rate adjustment may be lower or higher, depending on the relevant CPI figures published by the Bureau of Labor Statistics.

CURRENT AND PROPOSED MONTHLY RATES FOR RESIDENTIAL SOLID WASTE

COLLECTION AND DISPOSAL SERVICES

CURRENT AND PROPOSED MONTHLY RATES FOR COMMERCIAL, INDUSTRIAL,

AND MULTI-FAMILY SOLID WASTE COLLECTION AND DISPOSAL SERVICES Service Type
Current
Rates
Proposed (Projected Future) Rates
Sept. 1
20241
July 1
20251
July 1
20261
July 1
20271
July 1
20281
Multi-Family
(per unit) $12.66 $13.55 $14.50 $15.52 $16.61 $17.77
Mobile Home Parks
(per space) $12.66 $13.55 $14.50 $15.52 $16.61 $17.77
Hospitality (per unit) $7.63 $8.16 $8.73 $9.34 $9.99 $10.69 1 Cart (up to 90 Gal.) $9.20 $9.84 $10.53 $11.27 $12.06 $12.90 1 Cubic Yard Bin $18.40 $19.69 $21.07 $22.54 $24.12 $25.81

1.5 Cubic Yard Bin $27.60 $29.53 $31.60 $33.81 $36.18 $38.71 2 Cubic Yard Bin $36.80 $39.38 $42.14 $45.09 $48.25 $51.63 3 Cubic Yard Bin $55.20 $59.06 $63.19 $67.61 $72.34 $77.40

3.96 Cubic Yard Bin $73.60 $78.75 $84.26 $90.16 $96.47 $103.22 1 The actual rate will be increased effective September 1, 2024, and July 1st of each year thereafter, by the most recent May-to-May percentage change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02), rounded to the nearest tenth of a percent. The proposed rates in the above tables have been increased by 7.0% each year for illustration purposes only. The actual percentage increase each year may be lower or higher, depending on the change in the Consumer Price Index.

Service Type
Current
Rates
Proposed (Projected Future) Rates
Sept. 1
20241
July 1
20251
July 1
20261
July 1
20271
July 1
20281
Single-Family
Residence $15.25 $16.32 $17.46 $18.68 $19.99 $21.39
4 Recyclables and Green Waste/Organics Services—Single-Family Residential Customers.

Single-family residential customers currently pay $6.32 per month for commingled recyclable material collection and processing and an additional $6.32 per month for green waste collection and processing. The proposed rate increases include two components. First, the rates will be adjusted on September 1, 2024, and on July 1 of each year thereafter, by an amount equal to the May-to-May annual percentage change in the CPI, as explained above. The table below assumes, for illustration purposes only, annual CPI increases of 7.0%. The actual annual CPI adjustment may be lower or higher, depending on the relevant CPI figures published by the Bureau of Labor Statistics. Second, to cover its additional anticipated costs associated with SB 1383’s mandates, STRR will be phasing in a fixed dollar amount increase over the next three years as follows: (i) an increase of $1.50 per month beginning January 1, 2025, (ii) an increase of $1.25 per month beginning January 1, 2026, and (iii) an increase of $1.00 per month beginning January 1, 2027. The total proposed (projected future) rate increases for single-family residential recyclables and green waste/organics collection and processing services are shown in the table below.

CURRENT AND PROPOSED MONTHLY RATES FOR SINGLE-FAMILY

RESIDENTIAL RECYCLABLES AND GREEN WASTE/ORGANICS

COLLECTION AND PROCESSING SERVICES
Service Type Current
Rates
Proposed (Projected Future) Rates
Sept. 1
20241
Jan. 1
20252
July 1
20251
Jan. 1
20262
July 1
20261
Jan. 1
20272
July 1
20271
July 1
20281
Recyclables (blue cart) $6.32 $6.76 $8.26 $8.84 $10.09 $10.80 $11.80 $12.63 $13.51 Green Waste/Organics
(green cart) $6.32 $6.76 $8.26 $8.84 $10.09 $10.80 $11.80 $12.63 $13.51 1 The rate adjustment that will become effective September 1, 2024, and on July 1 of each year thereafter, will be equal to the most recently published May-to-May change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02), rounded to the nearest tenth of a percent. An annual increase in the CPI of 7.0% has been assumed for illustration purposes only in this table. The actual percentage increase each year may be lower or higher, depending on the change in the Consumer Price Index. 2 Fixed dollar amount increases will occur in January 2025, 2026, and 2027 as follows: On January 1, 2025, the rate will increase by $1.50, on January 1, 2026, the rate will increase by $1.25, and on January 1, 2027, the rate will increase by $1.00.

Recyclables and Green Waste/Organics Services—Commercial, Industrial, and Multi-Family Customers. The rate increases for commercial, industrial, and multi-family customers also include two components. First, the rates will be increased on January 1 of 2025, 2026, and 2027 by the amounts indicated in the table below. These increases, phased in over a three-year period, are intended to cover the additional expenses necessary to comply with SB 1383 mandates. 5 Service Type
Current
Rates
Proposed Rate Increases
Jan. 1, 2025 Jan. 1, 2026 Jan. 1, 2027
Blue Cart 96 gallons $7.00 $7.84 $9.09 $10.09
Green/Organics Cart
96 Gallons $48.31 $53.14 $58.46 $64.30
Blue 1.5-yard Bin $42.72 $46.99 $51.69 $56.86
Blue 3-yard Bin $61.11 $67.22 $73.94 $81.34
Blue 6-yard Bin $116.11 $127.72 $140.49 $154.54
Multi-Family Blue Cart
(per unit) $4.87 $7.84 $9.09 $10.09
Multi-Family Green/
Organic Cart (per unit) $4.87 $7.84 $9.09 $10.09
Green/Organic
2-yard Bin $293.28 $322.61 $354.87 $390.36
Second, in addition to the increases set forth in the table above, the rates will be adjusted September 1, 2024, and on July 1 of each year thereafter, by an amount equal to the most recently reported May-to-May percentage change in the CPI, as previously described. The total proposed (projected future) rate increases for commercial/industrial/multi-family recyclables and green waste/organics collection and processing services are shown in the table below.

CURRENT AND PROPOSED MONTHLY RATES FOR COMMERCIAL, INDUSTRIAL, AND MULTIFAMILY RECYCLABLES AND ORGANICS COLLECTION AND PROCESSING SERVICES Service Type Current
Rates
Proposed (Projected Future) Rates
Sept. 1
20241
Jan. 1
20252
July 1
20251
Jan. 1
20262
July 1
20261
Jan. 1
20272
July 1
20271
July 1
20281
Blue Cart 96 gallons $7.00 $7.49 $8.33 $8.91 $10.16 $10.87 $11.87 $12.70 $13.59 Green/Organics Cart
96 Gallons $48.31 $51.69 $56.52 $60.48 $65.80 $70.41 $76.25 $81.59 $87.30 Blue 1.5-yard Bin $42.72 $45.71 $49.98 $53.48 $58.18 $62.25 $67.42 $72.14 $77.19 Blue 3-yard Bin $61.11 $65.39 $71.50 $76.51 $83.23 $89.06 $96.46 $103.21 $110.43 Blue 6-yard Bin $116.11 $124.24 $135.85 $145.36 $158.13 $169.20 $183.25 $196.08 $209.81 Multi-Family Blue Cart
(per unit) $4.87 $5.21 $8.18 $8.75 $10.00 $10.70 $11.70 $12.52 $13.40 Multi-Family Green/
Organic Cart (per unit) $4.87 $5.21 $8.18 $8.75 $10.00 $10.70 $11.70 $12.52 $13.40 Green/Organic
2-yard Bin $293.28 $313.81 $343.14 $367.16 $399.42 $427.38 $462.87 $495.27 $529.94 6 1 The rate adjustment that will become effective September 1, 2024, and on July 1 of each year thereafter, will be equal to the most recently published 12-month change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02), rounded to the nearest tenth of a percent. An annual increase in the CPI of 7.0% has been assumed for illustration purposes only in this table. The actual percentage increase each year may be lower or higher, depending on the change in the Consumer Price Index.

FISCAL IMPACT
A rate increase would have no anticipated fiscal impact on the city. However, if there is a majority protest and the rate increases cannot be imposed, the city will be contractually obligated to work with the franchisee to identify service reductions or other steps that would fully compensate the franchisee for the corresponding loss of revenue. Such other steps could include direct payments from the city (i.e., rate subsidies) to maintain levels of service that are necessary to preserve public health and safety and to comply with applicable state laws and regulations.

The anticipated costs for the services of Koppel & Gruber Public Finance in formatting, printing, and mailing notices and protest ballots pursuant to Proposition 218 is approximately $29,000.

ATTACHMENTS

1. Resolution No. ____ establishing procedures for increasing water, wastewater, and solid waste fees in accordance with the requirements of Proposition 218.

2. Draft Notice of Public Hearing regarding proposed adjustments to the maximum rates for solid waste, recycling, and organics collection services, including protest ballot.

3. Draft Professional Services Agreement with Koppel & Gruber Public Finance for Proposition 218 Noticing Services.

RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

DELANO ESTABLISHING PROCEDURES FOR INCREASING

WATER, WASTEWATER, AND SOLID WASTE FEES IN

ACCORDANCE WITH THE REQUIREMENTS OF PROPOSITION
218
The City Council of the City of Delano does resolve as follows:

SECTION 1: The City Council finds and declares as follows:

A. On July 24, 2006, the California Supreme Court confirmed that charges for water and wastewater services are subject to Proposition 218 procedures (Bighorn-Desert View Water Agency v. Verjil (2006) 39 Cal.4th 205);
B. The City Council anticipates that there will be potential future increases in water, wastewater, and solid waste rates. Adopting the policies and procedures set forth in this Resolution will help implement the requirements set forth in Article XIIID of the California Constitution and help ensure that the rights of those persons that are authorized to protest service charges are preserved;
C. Elections Code § 4000(c)(9) provides that any protest ballot proceeding required or authorized by California Constitution Articles XIIIC or XIIID may be conducted wholly by mail. In the event a protest ballot process is required, the City Council seeks to achieve higher awareness of those affected by the proposed increase, provide an orderly protest process for both those receiving the ballots and the City, ensure to the extent practicable that there is some verification process regarding the protests received, and to reduce the costs of the protest ballot process; and D. Adopting this Resolution is in the public interest for the reasons set forth above and as further stated within Article XIIID and the Proposition 218 and state legislation relating to the implementation of Proposition 218.

SECTION 2: The City Council adopts the procedures set forth in this Resolution for conducting all proceedings required by California Constitution Article XIIID for utility fee (as defined below) increases. Where no specific procedures are imposed by Article XIIID or the Proposition 218 Omnibus Implementation Act (Government Code §§ 53750, et seq.), the procedures set forth in this Resolution apply. This Resolution may be referred to as the “Proposition 218 Protest Proceedings Resolution.” SECTION 3: Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used

in this Resolution. Words and phrases not defined by this chapter will have the meaning set forth in California Constitution Article XIIID or the Proposition 218 Omnibus Implementation Act.

A. “Act” means the Proposition 218 Omnibus Implementation Act found at Government Code §§ 53750, et seq.;
B. “Article 13D” means California Constitution Article XIIID, § 6; C. “Manager” means the City Manager or designee;
D. “Property owner” has the same meaning set forth in Article 13D and also pursuant to the Act includes tenancies of real property where tenants are directly liable to pay the proposed water, wastewater fee, or solid waste fee or charge;
E. “Protest” means a written protest filed with the City Clerk in accordance with Article 13D, the Act, and this Resolution as described in Article 13D, § 6(a)(2);
F. “Utility fee” means a fee or charge imposed for potable water, wastewater, or solid waste services provided to customers in accordance with the Delano Municipal Code, and any other applicable law, by the City of Delano.

SECTION 4: Administration of Proceedings. The City Manager, or designee, is authorized to implement this Resolution in a manner consistent with the California Constitution and other applicable law.

SECTION 5: Notice. Notice of a proposed utility fee increase is provided as follows:

A. In general, the City will identify the record property owner(s) of each parcel to which the utility fee would be applied from its billing system database and/or the latest equalized tax roll produced by Kern County. The City’s Utility Billing database and the equalized tax roll is presumptive evidence of ownership of the land for voting purposes.

B. If either the City’s Utility Billing Database or Kern County Recorder’s website shows that more than one property owner has an interest in a parcel, all property owners (each property owner) must receive notice at the address shown for the property owner. Both property owners and parties financially responsible for paying the fee will be provided notice.

In the event that notice is sent for a utility service for which the City is not currently charging a fee, the notices will be sent to the property owner based upon the Kern County Recorder’s website and to the street address to which the service would be provided if the address is different than the

address designated for the property owner on the Kern County Recorder’s website.

C. The notice must be sent by first class mail at least 45 days before the date set for the public hearing on the utility fee.

D. The form of the notice of hearing will be approved by the City Council and be on file with the City Clerk.

E. The notice provided by these procedures, in accordance with Article 13D, supersedes and is in lieu of notice required by any other statutes to levy or increase a utility fee.

F. The City Clerk, or designee, may certify the proper mailing of notices by an affidavit which constitutes conclusive proof of mailing in the absence of fraud.

G. Failure of any person to receive notice does not invalidate the proceedings.

SECTION 6: Protests Against Utility Fee Increases.

A. The property owner(s) of parcels subject to the proposed fee increase are entitled to a single protest for each parcel. When a parcel is held as community property or in joint tenancy or as a tenancy in common, any spouse or joint tenant or tenant in common is presumed to have authority to cast a protest on behalf of such parcel.

B. If the owner(s) of the property desire to designate a particular owner as the person authorized to cast the protest for such parcel, they may file with the City Clerk, at any time before the commencement of the public hearing or the date of the election, as the case may be, a written authorization of such designation, signed by all the owners of record, and acknowledged in the manner that deeds of real property are required to be acknowledged to entitle such deeds to be recorded in the Kern County Recorder’s Office.

C. Executors, administrators, and guardians may cast a protest on behalf of the estate represented by them. If such representatives are shown on the latest assessment roll as paying taxes and assessments on behalf of the property owner(s), that fact establishes the right of such representative(s) to cast a protest. If such representatives are not shown on the latest assessment roll, the representatives may file with the City Clerk, at any time before the commencement of the public hearing, or the date of the election, as the case may be, certified copies of the written documentation establishing the legal representation.

D. The protest of any public or quasi-public corporation, private corporation,

or unincorporated association may be signed by any person so authorized in writing by the board of directors or trustees or other managing body thereof.

E. The Manager is designated as the voting representative with respect to City-owned property.

F. In any case where the documentation provided to the City Clerk is ambiguous or unclear, the City Attorney will determine whether the documentation is adequate for the purpose provided.

G. In the event a property owner loses or misplaces a protest ballot, upon request by the property owner the City will provide a replacement protest ballot unless a properly filled out protest ballot has already been received for the parcel of property.

SECTION 7: Public Hearing.

A. Only protest ballots that (i) were provided by the City to the property owner in the form approved by the City Council and (ii) are properly filled out and legibly signed by an eligible property owner will be counted as a valid protest. Only one protest may be counted for each parcel of property regardless of the number of protests filed by property owners for the parcel.

B. The City Clerk must stamp each written protest the date and time it is filed with the City Clerk for purposes of establishing whether the protest was filed before the close of the public testimony portion of the public hearing.

No protest received after the close of the public testimony portion of the public hearing can be counted in determining the amount of protest, but the City Council may, in its discretion, consider such protests in making its decision. Written protests may be withdrawn in writing at any time before the conclusion of the public testimony portion of the public hearing.

C. At the time and place fixed for the hearing, or at any time to which the hearing is adjourned, the City Council must:

1. Hear all persons interested in the matter of the proposed fee increase;

2. Hear all objections, protests or other written communications from any owner of property subject to the proposed utility fee; and

3. Take and receive oral and documentary evidence pertaining to the proposed fee increase.

D. The hearing may be continued from time to time as the City Council determines necessary to complete its consideration of the proposed fee increase.

E. If the City Council determines at the close of the public testimony portion of the public hearing that votes were received from property owners representing a majority of the parcels subject to the proposed fee increase, the City Council will adopt a resolution setting forth the results of the protest ballot process and the proceedings shall then be closed and the utility fee cannot be approved by the City Council.

F. If the City Council determines at the close of the public testimony portion of the public hearing that written protests were not received from property owners representing a majority of the parcels subject to the proposed utility fee, the City Council shall adopt a resolution setting forth the results of the protest ballot process and then may, by Ordinance, change the utility fee so long as the amount of the change does not exceed the amount and methodology set forth in the public notices sent to the property owners.

SECTION 8: Environmental Review. This Resolution is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq. (“CEQA”)) and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.) because it establishes rules and procedures to implement government funding mechanisms; does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this Resolution does not constitute a “project” that requires environmental review (see 14 CCR § 15378(b)(4-5)).

SECTION 9: If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.

SECTION 10: The City Clerk is directed to certify the passage and adoption of this Resolution; and cause it to be entered into the City of Delano’s book of original Resolutions.

SECTION 11: This Resolution will take effect immediately day following its final passage and adoption.

PASSED AND ADOPTED this ______ day of ____________, 2024.

Joe L. Alindajao, Esq., Mayor
ATTEST:
_________________________
Nancy Garcia, City Clerk

APPROVED AS TO FORM
__________________________
Mark D. Hensley, City Attorney
1 NOTICE OF PUBLIC HEARING

PROPOSED ADJUSTMENTS TO THE MAXIMUM RATES FOR

SOLID WASTE, RECYCLING, AND ORGANICS COLLECTION SERVICES NOTICE IS HEREBY GIVEN that the City of Delano (“City”) is proposing an adjustment to the maximum rates for solid waste, recycling, and organics collection and disposal services (the “Rates”). The proposed adjusted Rate schedule would remain in place for a period of five years. The proposal will be presented to the City Council for approval at a Public Hearing on August 5, 2024, at 5:30 p.m.

DATE, TIME, AND LOCATION OF THE PUBLIC HEARING
NOTICE IS FURTHER GIVEN that on August 5, 2024, at 5:30 p.m., or as soon thereafter as may be heard in the City Council Chambers located at 1015 11th Avenue, Delano, California 93215, the City Council will conduct a public hearing on the proposed Rate increases.

At the time of the public hearing, the City Council will hear and consider all persons interested in these matters and will consider, and may adopt, the proposed Rates or impose Rates in an amount less than those proposed as set forth below. If the City receives, prior to the close of the public hearing on August 5, 2024, written protests against the proposed Rates from a majority of the parcels eligible to receive solid waste, recycling, and organics collection services, the City cannot impose the proposed Rates.

PROTEST PROCEDURE
There is a protest form included with this Notice that allows property owners and tenants to protest the proposed Rates. If you wish to oppose the proposed Rate adjustments, you must complete and sign a written protest utilizing the enclosed protest form and submit by mail or hand delivery so this it is received by the City prior to the close of the public hearing to the following address:

City of Delano
Attn: City Clerk
1015 11th Avenue
Delano, CA 93215
In addition, written protests may be submitted in person before or during the hearing. The City will count all properly filled out written protests received before the conclusion of the public hearing.

If a majority of affected property owners submit a written protest, the proposed new Rates will not take effect. Protest forms received after the close of the public hearing will not be counted.

Verbal protests unaccompanied by a written protest will not be counted.

Only one protest per property will be counted. If you own multiple properties affected by the proposed adjustments, you should submit separate protests for each affected parcel, as the protest threshold is based upon a majority of the total number of parcels. Once opened, protests are disclosable public records.

If adopted, the Rates will be effective on or after September 1, 2024. 2 EXPLANATION OF PROPOSED ADJUSTMENTS TO THE

MAXIMUM RATES FOR SOLID WASTE, REYCYLABLES, AND

ORGANICS COLLECTION SERVICES
Solid Waste Collection and Disposal Services
Until the middle of 2023, the City of Delano had provided its own municipal solid waste collection and disposal services to single-family residences, as well as to commercial, industrial, and multifamily premises, for that portion of the solid waste (trash) stream that is neither suited, nor separated for, recycling and waste diversion activities. In early 2023, the City Council determined that it would be more efficient and beneficial for residents and businesses alike to instead utilize the services of a qualified, experienced contractor for solid waste collection and disposal services.

On July 1, 2023, the City entered into an exclusive municipal solid waste franchise agreement (the “Franchise Agreement”) with South Tulare-Richgrove Refuse, Inc. for the provision of solid waste collection and disposal services to single-family residences and commercial, industrial, and multi-family premises. Under the Franchise Agreement, each single-family residence receives solid waste collection service once per week. Commercial, industrial, and multi-family residential premises receive collection service at least once per week. The current monthly service rate for single-family residential properties is $15.25 per residence. The current rates for commercial, industrial, and multi-family customers are set forth in the table below.

What are the amounts of proposed rate increases? The Franchise Agreement contemplates that rates will be adjusted upwards (or downwards, as the case may be) once yearly in an amount equal to the most recently reported annual percentage change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02) (“CPI”), rounded to the nearest tenth of a percent. The U.S. Bureau of Labor Statistics calculates and publishes the CPI figures monthly. Between January 2022 and March 2024, the monthly CPI figures have revealed year-over-year changes ranging from +5.8% to +8.9%. The average yearover-year change reported during that 15-month period was +7.0% (rounded to the nearest tenth).

For that reason, the tables below assume, for illustration purposes only, annual increases of 7.0%.

The actual annual rate adjustment may be lower or higher, depending on the relevant CPI figures published by the Bureau of Labor Statistics.

Why are rate increases necessary? Rate increases are necessary to cover increasing costs associated with providing solid waste collection and disposal services. Specifically, increasing costs of labor, fuel, equipment (acquisition and servicing), insurance, and myriad regulatory mandates. All cities in California are subject to the most stringent solid waste legislation in history and none of the costs of regulatory compliance are funded by the state. Consequently, the city must increase the rates charged by the city’s franchised solid waste service provider. The new rates proposed below would extend over a five-year period. 3 CURRENT AND PROPOSED MONTHLY RATES FOR RESIDENTIAL SOLID

WASTE COLLECTION AND DISPOSAL SERVICES
Service Type
Current
Rates
Proposed (Projected Future) Rates
Sept. 1
20241
July 1
20251
July 1
20261
July 1
20271
July 1
20281
Single-Family Residence $15.25 $16.32 $17.46 $18.68 $19.99 $21.39 1 The actual rate will be increased effective September 1, 2024, and July 1st of each year thereafter, by the most recent May-to-May percentage change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02), rounded to the nearest tenth of a percent. The proposed rates in the above tables have been increased by 7.0% each year for illustration purposes only. The actual percentage increase each year may be lower or higher, depending on the change in the Consumer Price Index.

CURRENT AND PROPOSED MONTHLY RATES FOR COMMERCIAL,

INDUSTRIAL, AND MULTI-FAMILY SOLID WASTE COLLECTION AND

DISPOSAL SERVICES
Service Type
Current
Rates
Proposed (Projected Future) Rates
Sept. 1
20241
July 1
20251
July 1
20261
July 1
20271
July 1
20281
Multi-Family Premises
(per unit) $12.66 $13.55 $14.50 $15.52 $16.61 $17.77
Mobile Home Parks
(per space) $12.66 $13.55 $14.50 $15.52 $16.61 $17.77
Hospitality (per unit) $7.63 $8.16 $8.73 $9.34 $9.99 $10.69 1 Cart (up to 90 Gallons) $9.20 $9.84 $10.53 $11.27 $12.06 $12.90 1 Cubic Yard Bin $18.40 $19.69 $21.07 $22.54 $24.12 $25.81

1.5 Cubic Yard Bin $27.60 $29.53 $31.60 $33.81 $36.18 $38.71 2 Cubic Yard Bin $36.80 $39.38 $42.14 $45.09 $48.25 $51.63 3 Cubic Yard Bin $55.20 $59.06 $63.19 $67.61 $72.34 $77.40

3.96 Cubic Yard Bin $73.60 $78.75 $84.26 $90.16 $96.47 $103.22 1 The actual rate will be increased effective September 1, 2024, and July 1st of each year thereafter, by the most recent May-to-May percentage change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02), rounded to the nearest tenth of a percent. The proposed rates in the above tables have been increased by 7.0% each year for illustration purposes only. The actual percentage increase each year may be lower or higher, depending on the change in the Consumer Price Index.
4 Recycling and Organics Collection Services
The City of Delano contracts with South Tulare-Richgrove Refuse, Inc. (“STRR”) for the provision of recycling and organics collection and processing services for both residential and commercial accounts.

Why are rate increases necessary? All cities in California are subject to stringent mandates regarding recyclables and organics and none of the associated costs of regulatory compliance is funded by the state. Specifically, SB 1383, signed by the Governor in 2016, mandates that California reduce organic waste by 75% and increase edible food recovery by 20% by January 2025. As a result, green waste and food waste is no longer able to be disposed of in the landfill.

The associated regulatory requirements regarding collection and processing methods significantly increases the cost of handling recyclables and organics. SB 1383 also requires waste haulers to undertake new measures to reduce contamination, educate waste generators, procure recycled products with organics content, track and report on recycling participation, and assist local jurisdictions with enforcement of the State’s new recycling requirements. Last year, the city amended its recycling contracts to require STRR to implement all regulatory measures required by SB 1383. STRR calculated its estimated increase in costs that will result from these additional responsibilities and agreed to phase in the additional costs over a three-year period.

The rate increases are necessary to cover increasing costs associated with SB 1383’s regulatory mandates as well as other related state regulations (AB 939), the increasing costs of labor, fuel, equipment (acquisition and servicing), and insurance. Consequently, the city must increase the rates charged by STRR, the city’s franchised service provider. The new rates proposed below would extend over a five-year period. If approved, the affected rates will become effective September 1, 2024.

What are the amounts of proposed rate increases?
Single-Family Residential Rates. Currently, each single-family customer pays $6.32 per month for commingled recyclable material collection and processing and an additional $6.32 per month for green waste collection and processing. The proposed rate increases include two components.

First, the rates will be adjusted on September 1, 2024, and on July 1 of each year thereafter, by an amount equal to the most recently reported May-to-May percentage change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID:

CUUR0000SEHG02) (“CPI”), rounded to the nearest tenth of a percent. The U.S. Bureau of Labor Statistics calculates and publishes the CPI figures monthly. Between January 2022 and March 2024, these monthly CPI figures have revealed year-over-year changes ranging from +5.8% to +8.9%. The average year-over-year change reported during that 15-month period was +7.0% (rounded to the nearest tenth). For that reason, the table below assumes, for illustration purposes only, annual CPI increases of 7.0%. The actual annual CPI adjustment may be lower or higher, depending on the relevant CPI figures published by the Bureau of Labor Statistics.

Second, to cover its additional anticipated costs associated with SB 1383’s mandates, STRR will be phasing in a fixed dollar amount increase over the next three years as follows: (i) an increase of $1.50 per month beginning January 1, 2025, (ii) an increase of $1.25 per month beginning January 1, 2026, and (iii) an increase of $1.00 per month beginning January 1, 2027. 5 CURRENT AND PROPOSED MONTHLY RATES FOR SINGLE-FAMILY

RESIDENTIAL RECYCLABLES AND GREEN WASTE/ORGANICS

COLLECTION AND PROCESSING SERVICES
Service Type Current
Rates
Proposed (Projected Future) Rates
Sept. 1
20241
Jan. 1
20252
July 1
20251
Jan. 1
20262
July 1
20261
Jan. 1
20272
July 1
20271
July 1
20281
Recyclables (blue cart) $6.32 $6.76 $8.26 $8.84 $10.09 $10.80 $11.80 $12.63 $13.51 Green Waste/Organics
(green cart) $6.32 $6.76 $8.26 $8.84 $10.09 $10.80 $11.80 $12.63 $13.51 1 The rate adjustment that will become effective September 1, 2024, and on July 1 of each year thereafter, will be equal to the most recently published May-to-May change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02), rounded to the nearest tenth of a percent. An annual increase in the CPI of 7.0% has been assumed for illustration purposes only in this table. The actual percentage increase each year may be lower or higher, depending on the change in the Consumer Price Index. 2 Fixed dollar amount increases will occur in January 2025, 2026, and 2027 as follows: On January 1, 2025, the rate will increase by $1.50, on January 1, 2026, the rate will increase by $1.25, and on January 1, 2027, the rate will increase by $1.00.

Commercial, Industrial, and Multi-Family Rates. The proposed rate increases include two components. First, the rates will be increased on January 1 of 2025, 2026, and 2027 by the amounts indicated in the table below. These increases, phased in over a three-year period, are intended to cover the additional expenses necessary to comply with SB 1383 mandates.

Service Type
Current
Rates
Proposed Rate Increases
Jan. 1, 2025 Jan. 1, 2026 Jan. 1, 2027
Blue Cart 96 gallons $7.00 $7.84 $9.09 $10.09
Green/Organics Cart
96 Gallons $48.31 $53.14 $58.46 $64.30
Blue 1.5-yard Bin $42.72 $46.99 $51.69 $56.86
Blue 3-yard Bin $61.11 $67.22 $73.94 $81.34
Blue 6-yard Bin $116.11 $127.72 $140.49 $154.54
Multi-Family Blue Cart
(per unit) $4.87 $7.84 $9.09 $10.09
Multi-Family Green/
Organic Cart (per unit) $4.87 $7.84 $9.09 $10.09
Green/Organic
2-yard Bin $293.28 $322.61 $354.87 $390.36
6 Second, in addition to the increases set forth in the table above, the rates will be adjusted on September 1, 2024, and on July 1 of each year thereafter, by an amount equal to the most recently reported May-to-May percentage change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02) (“CPI”), rounded to the nearest tenth of a percent. The U.S. Bureau of Labor Statistics calculates and publishes the CPI figures monthly. Between January 2022 and March 2024, these monthly CPI figures have revealed yearover-year changes ranging from +5.8% to +8.9%. The average year-over-year change reported during that 15-month period was +7.0% (rounded to the nearest tenth). The table below combines the proposed January 2025, 2026, and 2027 rate increases from the previous table with the proposed annual CPI adjustments. For illustration purposes only, the table assumes annual CPI increases of 7.0%. The actual annual CPI adjustment may be lower or higher, depending on the relevant CPI figures published by the Bureau of Labor Statistics.

CURRENT AND PROPOSED MONTHLY RATES FOR COMMERCIAL,

INDUSTRIAL, AND MULTI-FAMILY RECYCLABLES AND ORGANICS

COLLECTION AND PROCESSING SERVICES
Service Type Current
Rates
Proposed (Projected Future) Rates
Sept. 1
20241
Jan. 1
20252
July 1
20251
Jan. 1
20262
July 1
20261
Jan. 1
20272
July 1
20271
July 1
20281
Blue Cart 96 gallons $7.00 $7.49 $8.33 $8.91 $10.16 $10.87 $11.87 $12.70 $13.59 Green/Organics Cart
96 Gallons $48.31 $51.69 $56.52 $60.48 $65.80 $70.41 $76.25 $81.59 $87.30 Blue 1.5-yard Bin $42.72 $45.71 $49.98 $53.48 $58.18 $62.25 $67.42 $72.14 $77.19 Blue 3-yard Bin $61.11 $65.39 $71.50 $76.51 $83.23 $89.06 $96.46 $103.21 $110.43 Blue 6-yard Bin $116.11 $124.24 $135.85 $145.36 $158.13 $169.20 $183.25 $196.08 $209.81 Multi-Family Blue Cart
(per unit) $4.87 $5.21 $8.18 $8.75 $10.00 $10.70 $11.70 $12.52 $13.40 Multi-Family Green/
Organic Cart (per unit) $4.87 $5.21 $8.18 $8.75 $10.00 $10.70 $11.70 $12.52 $13.40 Green/Organic
2-yard Bin $293.28 $313.81 $343.14 $367.16 $399.42 $427.38 $462.87 $495.27 $529.94 1 The rate adjustment that will become effective September 1, 2024, and on July 1 of each year thereafter, will be equal to the most recently published May-to-May change in the Consumer Price Index for All Urban Consumers, Garbage and Trash Collection (Series ID: CUUR0000SEHG02), rounded to the nearest tenth of a percent. An annual increase in the CPI of 7.0% has been assumed for illustration purposes only in this table. The actual percentage increase each year may be lower or higher, depending on the change in the Consumer Price Index.

OFFICIAL PROTEST BALLOT
Protest Form Instructions: If you wish to protest the implementation of the proposed rate increases for solid waste, recycling, and organics collection services, you must: (1) check the box indicating whether you are an owner or renter/tenant of the subject parcel, (2) print your name on the appropriate line, (3) sign your name on the appropriate line, and (4) deliver the signed protest form via U.S. Mail or hand delivery to the City Clerk, City of Delano, 1015 11th Avenue, Delano, California 93215, before the close of the City public hearing scheduled for 5:30 p.m. on August 5, 2024.

Assessor’s Parcel Number: - -
Owner of Record: ____________________________________
Parcel Address: __________________________________________________________ I hereby declare under penalty of perjury that I am:
 A record owner of the parcel listed above.
 A renter/tenant of the parcel listed above.

I protest the proposed increase to the maximum rates for solid waste, recycling, and organics collection services.

Printed Name: ___________________________________________________________ Signature: ______________________________________________________________ City of Delano
Proposal to Provide
Solid Waste Rate Increase
Noticing Services
April 30, 2024
334 VIA VERA CRUZ, SUITE 256  SAN MARCOS, CALIFORNIA  92078 760.510.0290 FAX 760.510.0288
April 30, 2024
Via Email
Mr. Roman Dowling
Public Works Director/City Engineer
City of Delano
1015 11th Avenue
PO Box 3010
Delano, CA 93216-3010
RE: PROPOSAL TO PROVIDE SOLID WASTE RATE INCREASE NOTICING SERVICES Dear Mr. Dowling:

Thank you for the opportunity to propose on providing the City of Delano (“City”) with the 2024 proposed Solid Waste Rate Increase Noticing Services for properties as required by Proposition 218. In response, Koppel & Gruber Public Finance (“K&G Public Finance”) is pleased to present our proposal to assist the City with this project.

Lyn Gruber will act as project manager for the City. She will be the City’s day-to-day contact and will be responsible for accurate and timely delivery of work product, attendance and participation at meetings and will be available to make presentations at the City Council. Scott Koppel will be the back-up project manager and Douglas Floyd will provide assistance on the project and with preparing the mailing and rate database, coordination of the mailing of the notices, handling property owner phone calls and tallying the protest forms.

We look forward to assisting the City with this important project. Please feel free to contact me if you have any questions about our proposal. My telephone number is (760) 510-0290 or you may email me at [email protected].

Sincerely,
Lyn Gruber
Principal
cc: Gregg Kovacevich

TABLE OF CONTENTS
Project Understanding.................................................................................................................... 1 Scope of Services ............................................................................................................................ 2 Fees For Services............................................................................................................................. 3 Koppel & Gruber Public Finance 1
Proposal to Provide Proposition 218 Solid Waste Rate Increase Noticing Services for the City of Delano
Project Understanding
We understand that the City of Delano (“City”) has determined that the solid waste/trash service fee (the “Service Fee”) must be increased in order to remain fiscally sound.

In order to increase the Service Fee, the City will need to follow the procedural requirements of Proposition 218. In July 2006, the California Supreme Court decided the Bighorn-Desert View Water Agency v. Beringson case and held that for Service Fees charged based on consumption (specifically sewer, water and solid waste rate increases), public agencies must comply with the noticing requirements of Proposition 218 and the majority protest procedures (more than half of the property owners subject to the Service Fee rate increase would need to provide some sort of written protest to the Service Fee increase) and therefore do not require an actual ballot. However, K&G Public Finance understands that as an abundance of caution and to make the procedure as easy as possible for the City’s potential property owners and/or ratepayers, the City desires to mail a protest ballot form (“Protest Form”) along with the required Public Hearing Notice (“Notice”). Due to this desire, we recommend that the City consider complying with the intent of SB 321, which became effective on January 1, 2010 and requires assessment ballots be mailed in envelopes specifically marked “Official Ballot Enclosed.” Since the Service Fee Protest Form is not a ballot, perhaps “Official Protest Form Enclosed” is more appropriate in this circumstance. We also recommend as required in SB 321 that the tabulation of Protest Forms be conducted in public view for monitoring purposes and requires the information used to determine the weight of each Protest Form be treated as disclosable public records. Additionally, we recommend that the City pass a resolution describing the Protest Form procedures, for example that the protest form must be signed to be counted as a valid protest, prior to the mailing of the Notices and Protest Forms.

For a mailing of this size, we recommend utilizing a full-service mailing house to print and mail the Notices and Protest Forms that have been prepared by the City and/or K&G Public Finance as well as reviewed and approved by the City. The mailing house we utilize is experienced in variable data printing critical to customizing each Notice and Protest Form. Additionally, their software verifies addresses, presorts zip codes and allows the City to pay the lowest possible 1st class postage rates and lowers the number of returned mailings due to invalid addresses.

A public hearing will need to be conducted no earlier than forty-five days (45) days after mailing the Noticesto each property owner subject to the proposed Service Fee increase. Following the conclusion of the Public Hearing the Protest Forms may be tabulated and, if there is not a majority protest against the proposed Service Fees increase, the City may impose the new increased Service Fee. Based on preliminary data the City has provided, we estimate the City will need to mail Notices to approximately 15,000 property owners/rate payers subject to the proposed solid waste rate increase.

Koppel & Gruber Public Finance 2
Proposal to Provide Proposition 218 Solid Waste Rate Increase Noticing Services for the City of Delano
Scope of Services
Based on our project understanding, K&G Public Finance proposes the following scope of services.

Task
Consult with the City staff to determine project timeline, Protest Forms procedures, and public hearing Notice text.

Prepare a property owner mailing database to be used for noticing purposes. This database will created by utilizing the County’s latest secured roll as well as the City’s current solid waste pickup information provided by the City in order to ensure that we are notifying all potential property owners and/or rate payers for each APN being serviced.

Review and comment on a Notice of Public Hearing and Rate Increase in compliance with the requirements of Proposition 218. The Notice of Public Hearing and Rate Increase shall provide information regarding the proposed Service Fee.

Review and comment on the Protest Form in compliance with the requirements of Proposition 218 and Government Code Section 53750 though not statutorily required.

Prepare Outgoing Mailing Envelope (No. 10) and Return Protest Form Envelope (No. 9) if requested.

Coordinate with the printing and mailing house in preparation of the Notice and Protest Forms, and properly merging the rate information, property owner name, mailing address and the proposed Service Fee.

Handle property owner phone calls regarding the proposed rate increase and the Proposition 218 protest procedures. Property owners that may have more detailed questions will be referred to a City provided contact.

Attend the public hearing. Offer testimony regarding the mailing of the Notice of Public Hearing and Rate Increase.

Tabulate returned Protest Forms and finalize tabulation at the close of the public hearing. Due to the volume of potential Protest Forms, the City may want to consider counting the Protest Forms in the morning prior to the public hearing.

Client Responsibilities
In order to provide Notice and Protest Form services we will need the following data from the City:

1. Service rate payer data.

2. Rate information regarding the new rates.

3. Staff reports.

4. Review and approve Notice, Protest form and any other mailing pieces.

Koppel & Gruber Public Finance 3
Proposal to Provide Proposition 218 Solid Waste Rate Increase Noticing Services for the City of Delano

FEES FOR SERVICES
K&G Public Finance will bill on a monthly basis based on hours performed on the project. Shown below is our proposed fee.

Task Fee
Notice of Public Hearing and Proposed Rate Increase Services $11,000 Printing of Notices and Protest Forms(1) $7,700
Postage for Mailing of Notices and Protest Forms(2) $10,200 Total Estimate $28,900
1Assumes a six-pages, double-sided notice, single sided protest form with variable printing, No. 10 outgoing window envelope with City logo and printing, and a No. 9 return envelope with City logo and printing for 15,000 property owners/rate payers all in black and white (no color.) 2 Assumes 1 oz. or less per notice, over 1 oz. would be $13,500.

Expenses
In addition to the project Services fee shown above, K&G Public Finance shall be reimbursed for other expenses including travel, county data sources, postage, courier services, and overnight delivery at our cost.

Additional Services
If authorized by the City, K&G Public Finance will provide additional services not included in the above scope of services at the hourly rates provided below unless otherwise agreed upon between the City and K&G Public Finance.

Title Rate
Principal $285
Vice President 250
Senior Associate 220
Associate 160
Production/Administration 100
PSA Page 1 of 10 Prop 218 Noticing Services
AGREEMENT NO. ______

FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF DELANO AND

KOPPEL & GRUBER PUBLIC FINANCE
PROPOSITION 218 NOTICING SERVICES
THIS AGREEMENT, made and entered into this 6th day of May, 2024, between the CITY OF DELANO, a municipal corporation, hereinafter referred to as "City" and KOPPEL & GRUBER PUBLIC FINANCE, California corporation hereinafter referred to as "Consultant". In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. SCOPE OF SERVICES. Consultant agrees to perform the services set forth in Exhibit A "SCOPE OF SERVICES/COMPENSATION" attached hereto and made a part hereof. Consultant shall submit its work to the City for its review after completing each phase of the project as described in Exhibit A, or when otherwise requested by the City. Consultant shall, at its own cost, make any revisions of its own work as required by the City and re-do, at its own cost, any work which the City finds unsatisfactory due to Consultant’s or subcontractor’s errors or omissions. Consultant represents and warrants that it has the qualifications, experience and facilities to properly perform said services in a thorough, competent and professional manner and shall, at all times during the term of this Agreement, have in full force and effect, all licenses required of it by law. Consultant shall begin its services under this Agreement on May 6, 2024.

2. STATUS OF CONSULTANT. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees or agents, except as set forth in this Agreement.

Consultant shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant shall not disseminate any information or reports gathered or created pursuant to this Agreement without the prior written approval of City except information or reports required by government agencies to enable Consultant to perform its duties under this Agreement.

3. CONSULTANT'S KNOWLEDGE OF APPLICABLE LAWS.

Consultant shall keep itself informed of applicable local, state and federal laws and regulations which may affect those employed by it or in any way affect the performance of its services pursuant to this Agreement. Consultant shall observe PSA Page 2 of 10 Prop 218 Noticing Services
and comply with all such laws and regulations affecting its employees. City and its officers and employees, shall not be liable at law or in equity as a result of any failure of Consultant to comply with this section.

4. PERSONNEL. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant's staff assigned to perform the services hereunder and shall obtain the approval of the City Manager of all proposed staff members performing services under this Agreement prior to any such performance.

5. COMPENSATION AND METHOD OF PAYMENT. Compensation to
the Consultant shall be as set forth in Exhibit A. Payments shall be made within forty-five (45) days after receipt of each invoice as to all undisputed fees. If the City disputes any of consultant's fees it shall give written notice to Consultant within 30 days of receipt of an invoice of any disputed fees set forth on the invoice.

6. ADDITIONAL SERVICES OF CONSULTANT. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein or listed in Exhibit A, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services.

7. ASSIGNMENT. All services required hereunder shall be performed by Consultant, its employees or personnel under direct contract with Consultant.

Consultant shall not assign to any subcontractor the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without the prior written consent of City Manager.

8. FACILITIES AND RECORDS. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records, shall give City the right to examine and audit said books and records, shall permit City to make transcripts therefrom as necessary, and shall allow inspection of all work, data, documents, proceedings and activities related to this Agreement.

Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.

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9. TERMINATION OF AGREEMENT. This Agreement may be
terminated with or without cause by either party upon 30 days written notice. In the event of such termination, Consultant shall be compensated for non-disputed fees under the terms of this Agreement up to the date of termination.

10. COOPERATION BY CITY. All public information, data, reports, records, and maps as are existing and available to City as public records, and which are necessary for carrying out the work as outlined in the Scope of Services, shall be furnished to Consultant in every reasonable way to facilitate, without undue delay, the work to be performed under this Agreement.

11. OWNERSHIP OF DOCUMENTS. Upon satisfactory completion of, or in the event of termination, suspension or abandonment of, this Agreement, all original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall, become the sole property of City. With respect to computer files, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files.

12. RELEASE OF INFORMATION/CONFLICTS OF INTEREST.
(a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization excepting that information which is a public record and subject to disclosure pursuant to the California Public Records Act, Government Code § 7920.005, et seq. Consultant, its officers, employees, agents or subcontractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena.

If Consultant or any of its officers, employees, consultants or subcontractors does voluntarily provide information in violation of this Agreement, City has the right to reimbursement and indemnity from Consultant for any damages caused by Consultant's conduct, including the City's attorney's fees.

Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder or with respect to any PSA Page 4 of 10 Prop 218 Noticing Services
project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. (b) Consultant covenants that neither they nor any officer or principal of their firm have any interest in, or shall they acquire any interest, directly or indirectly which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent, or subcontractor without the express written consent of the City Manager.

Consultant further covenants that Consultant has not contracted with nor is performing any services directly or indirectly with any developer(s) and/or property owner(s) and/or firm(s) and/or partnerships owning property in the City or the study area and further covenants and agrees that Consultant and/or its subcontractors shall provide no service or enter into any agreement or agreements with any developer(s) and/or property owner(s) and/or firm(s) and/or partnerships owning property in the City or the study area prior to the completion of the work under this Agreement without the express written consent of the City Manager.

13. DEFAULT. In the event that Consultant is in default of any of the provisions of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant.

14. INDEMNIFICATION.
(a) Consultant represents it is skilled in the professional calling necessary to perform the services and duties agreed to hereunder by Consultant, and City relies upon the skills and knowledge of Consultant. Consultant shall perform such services and duties consistent with the standards generally recognized as being employed by professionals performing similar service in the State of California. (b) Consultant is an independent contractor and shall have no authority to bind City nor to create or incur any obligation on behalf of or liability against City, whether by contract or otherwise, unless such authority is expressly conferred under this agreement or is otherwise expressly conferred in writing by City. City, its elected and appointed officials, officers, agents, employees and volunteers (individually and collectively, "Indemnitees") shall have no liability to Consultant or to any other person for, and Consultant shall indemnify, defend, protect and hold harmless the Indemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys' fees and disbursements (collectively "Claims"), which the Indemnitees may suffer or incur or to which the PSA Page 5 of 10 Prop 218 Noticing Services
Indemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of or allegedly caused by the negligent or wrongful acts or omissions of Consultant, its agents, officers, directors or employees, in performing any of the services under this agreement.

If any action or proceeding is brought against the Indemnitees by reason of any of the matters against which Consultant has agreed to indemnify the Indemnitees as above provided, Consultant, upon notice from the City, shall defend the Indemnitees at Consultant's expense by counsel acceptable to the City. The Indemnitees need not have first paid any of the matters as to which the Indemnitees are entitled in order to be so indemnified. The insurance required to be maintained by Consultant under paragraph 15 shall ensure Consultant's obligations under this paragraph 14(b), but the limits of such insurance shall not limit the liability of Consultant hereunder. The provisions of this paragraph 14(b) shall survive the expiration or earlier termination of this agreement.

The Consultant's indemnification does not extend to Claims occurring as a result of the City's sole negligent or willful acts or omissions.

15. INSURANCE.

A. Insurance Requirements. Consultant shall provide and maintain insurance acceptable to the City Attorney in full force and effect throughout the term of this Agreement, against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Consultant, its agents, representatives or employees. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Consultant shall provide the following scope and limits of insurance:
(1) Minimum Scope of Insurance. Coverage shall be at least as broad as:
(a) Insurance Services Office form Commercial General
Liability coverage (Occurrence Form CG 0001).
(b) Insurance Services Office form number CA 0001 (Ed.
1/87) covering Automobile Liability, including code 1 "any auto" and endorsement CA 0025, or owned, hired, non-owned, scheduled, non-scheduled or rented vehicles, (or combination thereof dependent upon working being performed under contract), or equivalent forms subject to the written approval of the City. (c) Workers' Compensation insurance as required by the
Labor Code of State of California and Employer's Liability insurance and covering all persons providing services on behalf of the Consultant and all risks to such persons under this Agreement.

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(d) Errors and omissions liability insurance appropriate to the Consultant's profession.
(2) Minimum Limits of Insurance. Consultant shall maintain limits of insurance no less than:
(a) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the activities related to this Agreement or the general aggregate limit shall be twice the required occurrence limit. (b) Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
(c) Workers' Compensation and Employer's Liability:

Workers' Compensation as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. (d) Errors and Omissions Liability: $1,000,000 per claim.

If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for an additional period of three (3) years following termination of the contract.

B. Other Provisions. Insurance policies required by this Agreement shall contain the following provisions:
(1) All Policies. Each insurance policy required by this paragraph 15 shall be endorsed and state the coverage shall not be suspended, voided, canceled by the insurer or either party to this Agreement, reduced in coverage or in limits except after 30 days' prior written notice by Certified mail, return receipt requested, has been given to the City.
(2) General Liability and Automobile Liability Coverages. (a) City, its officers, officials, and employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities Consultant performs, products and completed operations of Consultant; premises owned, occupied or used by Consultant, or automobiles owned, leased or hired or borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, officials, or employees. (b) Consultant's insurance coverage shall be primary
insurance as respect to City, its officers, officials, employees and volunteers. Any PSA Page 7 of 10 Prop 218 Noticing Services
insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall apply in excess of, and not contribute with, Consultant's insurance. (c) Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
(d) Any failure to comply with the reporting or other
provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers. (3) Workers' Compensation and Employer's Liability Coverage.

Unless the City Manager otherwise agrees in writing, the insurer shall agree to waive all rights of subrogation against City, its officers, officials, employees and agents for losses arising from work performed by Consultant for City.

C. Other Requirements. Consultant agrees to deposit with City, at or before the effective date of this contract, certificates of insurance necessary to satisfy City that the insurance provisions of this contract have been complied with.

The City Attorney may require that Consultant furnish City with copies of original endorsements effecting coverage required by this Section. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. City reserves the right to inspect complete, certified copies of all required insurance policies, at any time.
(1) Consultant shall furnish certificates and endorsements from each subcontractor identical to those Consultant provides. (2) Any deductibles or self-insured retentions must be declared to and approved by City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims.
(3) The procuring of such required policy or policies of insurance shall not be construed to limit Consultant's liability hereunder nor to fulfill the indemnification provisions and requirements of this Agreement.

16. NONDISCRIMINATION/NONPREFERENTIAL TREATMENT
STATEMENT. In performing this Agreement, the Parties shall not discriminate or grant preferential treatment on the basis of race, sex, color, age, religion, sexual orientation, disability, ethnicity, or national origin, and shall comply, to the fullest extent allowed by law, with all applicable local, state and federal laws relating to nondiscrimination.

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17. UNAUTHORIZED ALIENS. Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act (8 U.S.C.A. & 1101, et seq.), as amended; and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this contract, and should the Federal Government impose sanctions against the City for such use of unauthorized aliens, Consultant hereby agrees to, and shall, reimburse City for the cost of all such sanctions imposed, together with any and all costs, including attorneys' fees, incurred by the City in connection therewith.

18. ENTIRE AGREEMENT. This Agreement is the complete, final, entire and exclusive expression of the Agreement between the parties hereto and supersedes any and all other agreements, either oral or in writing, between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that no representations by any party which are not embodied herein and that no other agreement, statement, or promise not contained in this Agreement shall be valid and binding.

19. GOVERNING LAW. The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the Kern County Superior Court.

20. ASSIGNMENT OR SUBSTITUTION. City has an interest in the qualifications of and capability of the persons and entities who will fulfill the duties and obligations imposed upon Consultant by this Agreement. In recognition of that interest, neither any complete nor partial assignment of this Agreement may be made by Consultant nor changed, substituted for, deleted, or added to without the prior written consent of City. Any attempted assignment or substitution shall be ineffective, null, and void, and constitute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including summary termination of this Agreement. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

21. MODIFICATION OF AGREEMENT. The terms of this Agreement can only be modified in writing approved by the City Council and the Consultant. The parties agree that this requirement for written modifications cannot be waived and any attempted waiver shall be void.

22. AUTHORITY TO EXECUTE. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she/they has/have the authority to execute this Agreement on behalf of his/her/their corporation and warrants and represents that he/she/they has/have the authority to bind Consultant to the performance of its obligations hereunder.

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23. NOTICES. Notices shall be given pursuant to this Agreement by personal service on the party to be notified, or by written notice by email, or upon such party deposited in the custody of the United States Postal Service addressed as follows:

City.

Attention: City Clerk
City of Delano
1015 11th Avenue
Delano, California 93215
Email: [email protected]
Consultant.

Attention: Lyn Gruber
Koppel & Gruber Public Finance
334 Via Vera Cruz, Suite 256
San Marcos, California 92078
Email: [email protected]
The notices shall be deemed to have been given as of the date of personal service, or three (3) days after the date of deposit of the same in the custody of the United States Postal Service.

24. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibit.

25. SEVERABILITY. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of the other provisions of this Agreement.
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