Agenda — Farmersville City Council, September 22, 2025

Mayor
FARMERSVILLE CITY COUNCIL Tina Hernandez

CITY OF
Mayor Pro Tem
Araceli Ochoa
FARMERSVILLE REGULAR MEETING AGENDA Council Members
Gregorio Gomez
September 22, 2025, 6:00 PM Paul Boyer
City Hall, 909 W. Visalia Rd. Armando Hinojosa
Farmersville, California 93223
Pending no technical difficulties, the City Council meeting will also be streamed (for observation only) via Zoom and accessed as follows:

Meeting ID: 873 2731 2281
Password: 627722
Notice is hereby given that the Farmersville City Council will hold a Regular Meeting on Monday, September 22, 2025, at 6:00 p.m. in person at City Hall located at 909 W.

Visalia Rd. in Farmersville California, 93223.

Staff Reports related to items on the agenda are available on the City's website at https://www.cityoffarmersville-ca.gov/ and available for viewing at City Hall.

A. CALL TO ORDER STUDY SESSION - 5:00 p.m.

B. ROLL CALL
C. PUBLIC COMMENT
D. STUDY SESSION ITEMS

1. Establishing Top 10 Commercial Development Priorities E. ADJOURN TO REGLAR SESSION - 6:00 p.m. (Or immediately following Study Session)
F. CALL TO ORDER REGULAR SESSION
G. ROLL CALL
H. INVOCATION
Presented by Mayor Hernandez
I. PLEDGE OF ALLEGIANCE
Led by Mayor Hernandez
J. APPROVAL OF AGENDA
K. PUBLIC COMMENTS
The public is invited to comment on any subject under the jurisdiction of the Farmersville City Council. Please note that speakers that wish to comment on a Regular Item or Public Hearing on tonight's agenda will have an opportunity to speak when public comment for that item is requested by the Mayor. Comments shall be limited to two (2) minutes per person, with twenty (20) minutes for the total comment period, unless otherwise indicated by the Mayor.

The public may also choose to submit a comment before the meeting via email. Public comments received via email will be distributed to the Council prior to the start of the meeting and incorporated into the official minutes; however, they will not be read aloud.

Under state law, matters presented under public comment cannot be acted upon by the Council at this time.

L. SPECIAL PRESENTATIONS

1. New Employee Introduction - Anna Berrones
M. CONSENT CALENDAR
Items listed under the Consent Calendar are considered routine and will be enacted by one motion. There will be no separate discussion of these matters unless a request is made and then the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

1. Approval of August 25, 2025 regular meeting minutes

2. Adoption of Resolution 2025-045 Authorizing Application for HOME Investment Partnerships Program (HOME) Funding

3. Adoption of Resolution 2025-046 Approving the Revised First-Time Homebuyer Program Guidelines and Related Documents under the HOME Program

4. Approval of Memorandum of Understanding with Farmersville Unified School District for Student Internship Program

5. Consideration of Temporary Street Closure Permit Fee Waiver for Fall Festival

6. Adoption of Resolution 2025-047 authorizing the City Manager to execute a lease tinancing agreement with Municipal Finance Corporation for the acquisition of a new police patrol vehicle for the City of Farmersville

7. Adoption of Resolution 2025-048 Authorizing a Budget Amendment and Appropriation/Transfer - Fire Department Patrol Vehicle

8. Adoption of Resolution No. 2025-049 Authorizing the City Manager or Designee to Execute Agreements with the California Department of Transportation (Caltrans) for the HSIP - Improvements at Various Pedestrian Crossings Project

9. Adoption of Resolution No. 2025-050 Authorizing the Mayor to Execute a SB 125 Program Cooperative Agreement with the Tulare County Association of Governments (TCAG)
N. ACTION ITEMS
Comments related to Action and Public Hearing Items are limited to two (2) minutes per speaker, for a maximum of 20 minutes per item. The Mayor may reasonably limit or extend the public comment period to preserve the Council's interest in conducting efficient, orderly meetings.

1. Appointment of Voting Delegate and Alternates for the 2025 Cal Cities General Assembly.

Presented by Daymon Qualls, City Manager

2. Presentation of Community Survey Results Regarding Potential Cannabis Café Ordinance Amendment
Presented by Daymon Qualls, City Manager
O. PUBLIC HEARINGS
None
P. DISCUSSION ITEMS

1. Discussion and Direction Regarding Establishment of a Community Garden Presented by Daymon Qualls, City Manager

2. Discussion and Direction Regarding Establishment of a Farmers Market Presented by Daymon Qualls, City Manager
Q. COUNCIL REPORTS
R. CITY MANAGER/DEPARTMENT COMMUNICATIONS
S. FUTURE AGENDA ITEMS
Description Responsible Party Agenda Date
Urban Art-Murals and Sculptures City Manager 10/13/2025 Senior Housing-Gardenia Apts. City Manager TBD
Sewer DIF City Manager TBD
ADU update City Planner TBD
Senior Discount for Utility Bills City Manager TBD
Homelessness Fire Hazard City Manager TBD
Environmental Safety Guidelines City Manager TBD
Sign Ordinance Fire Chief TBD
Potential Solar Project City Manager TBD
T. EXECUTIVE (CLOSED) SESSION

1. Conference with Legal Counsel - Existing Litigation (Gov. Code §54956.9) 1 Case: Quad Knopf/WWTP

2. Conference with Legal Counsel - Anticipated Litigation (Gov. Code §54956.9(d)(2)) - Significant exposure to litigation Number of cases: 3

3. Public Employee Discipline/Dismissal/Release (Gov. Code §54957 (b)) U. REGULAR MEETING ADJOURNMENT
State of California )
County of Tulare ) SS.

City of Farmersville
I declare under penalty of perjury that I am employed by the City of Farmersville, in the City Manager's Office; and that I posted this Agenda on the bulletin board outside of City Hall, 909 W. Visalia Rd. Farmersville, CA 93223 on August 8, 2025 and online on the City of Farmersville website: https://www.cityoffarmersville-ca.govl.

Rochelle Giovani, City Clerk
In compliance with the Americans with Disabilities Act, and the California Ralph M. Brown Act, if you need special assistance to participate in this meeting, or to be able to access this agenda and documents in the agenda packet, please contact the City Clerk (559)747- 0458. Notification prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting and/or provision of an appropriate alternative format of the agenda and documents in the agenda packet. (28 CFR 35.102-

35. 104 ADA Title II).

Materials related to an item on this Agenda submitted to the legislative body after distribution of the agenda packet are available for public inspection at Farmersville City Hall, 909 W. Visalia Rd., Farmersville CA 93223 during normal business hours.

Mayor
FARMERSVILLE CITY COUNCIL Tina Hernandez

CITY OF
Mayor Pro Tem
Araceli Ochoa
FARMERSVILLE REGULAR MEETING AGENDA Council Members
Gregoria Gomez
August 25, 2025, 6:00 PM Paul Boyer
City Hall, 909 W. Visalia Rd. Armando Hinojosa
Farmersville, California 93223
Pending no technical difficulties, the City Council meeting will also be streamed (for observation only) via Zoom and accessed as follows:

Please dial 1-669-900-6833
Meeting ID: 873 2731 2281
Password: 627722
Notice is hereby given that the Farmersville City Council will hold a Regular Meeting on Monday, August 25, 2025, at 6:00 p.m. in person at City Hall located at 909 W. Visalia Rd. in Farmersville California, 93223.

Staff Reports related to items on the agenda are available on the City's website at https://www.cityoffarmersville-ca.gov/ and available for viewing at City Hall. 6:00 p.m.

A. CALL TO ORDER 6:02pm
B. ROLL CALL Mayor Hernandez
Mayor Pro Tem Ochoa
Councilmember Gomez
Councilmember Boyer
Councilmember Hinoiosa
C. INVOCATION
Presented by Mayor Hernandez
D. PLEDGE OF ALLEGIANCE
Led by Mayor Hernandez
E. APPROVAL OF AGENDA
F. PUBLIC COMMENTS
The public is invited to comment on any subject under the jurisdiction of the Farmersville City Council. Please note that speakers that wish to comment on a Regular Item or Public Hearing on tonight's agenda will have an opportunity to speak when public comment for that item is requested by the Mayor. Comments shall be limited to two (2) minutes per person, with twenty (20) minutes for the total comment period, unless otherwise indicated by the Mayor.

Under state law, matters presented under public comment cannot be acted upon by the Council at this time.

None given
G. SPECIAL PRESENTATIONS

1. New Employee Introduction - Breann Allen
Finance Director Anthony Loza introduced Breann Allen and provided a brief overview of her background
H. CONSENT CALENDAR
Items listed under the Consent Calendar are considered routine and will be enacted by one motion. There will be no separate discussion of these matters unless a request is made and then the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

1. Approval of August 11, 2025 regular meeting minutes

2. Adoption of Resolution 2025-042, approving the 2025 Engineering and Traffic Survey and confirming enforceable speed limits on various roadways within the

3. Adoption of Resolution 2025-043, declaring two Fire Department vehicles as surplus and authorizing their disposition in accordance with standard City procedures for surplus property.

4. Approve contract amendment with 4Creeks of Visalia, CA to include an additional $36,692.55 for Construction Management/Resident Engineer services for the Farmersville - Hwy 198 - Gateway Project.

5. Accept a Notice of Completion for the Farmersville - Hwy 198 - Gateway Project, authorize the City Engineer to sign the Notice of Completion, and authorize the City Clerk to file the notice with the Tulare County Recorder's Office.

6. Adoption of Resolution No. 2025-044, approving the revised Salary Schedule effective July 1, 2025, for FPOA, MEA, and Mid-Management Employees as previously approved in 2025 labor negotiations.

Consent items 5 & 6 were pulled for further discussion.

Council Action: Consent items 1-4 were motioned by Councilmember Gomez, seconded by Mayor Pro Tem Ochoa and approved with a 5-0 vote.

Consent item 5
Councilmember Boyer asked whether the drainage issues had been resolved and if the compaction testing had been completed. He also inquired about the contract for landscape maintenance.

Public Works Director Steven Thompson explained that staff installed a french drain to redirect the drainage, added new soil, and performed compaction testing both before and after the improvements. The drainage system was redesigned so that runoff now flows directly into the culvert. The culvert at the bottom, which had been full of mud, was also cleared out to improve water flow. He noted that the new system, with perforated drainage pipe and french drains, is better designed than the previous setup and should resolve the drainage issues. Additionally, the landscape maintenance item will be placed on the next agenda, which will include discussion of Highway 198 and the roundabout.

Councilmember Hinojosa mentioned to the Public Works Director that the Farmersville sign, when viewed from Exeter, appears to need additional rocks. Public Works Director Steven Thompson responded that this portion of the project has already been completed, but staff could address it again at a later date if needed.

Councilmember Gomez expressed concerns regarding the lights, noting that he had observed some work being done on them, and asked if there were still issues. Public Works Director Steven Thompson stated he was not aware of any work currently being done and explained that the lighting project has already been turned over. He added that he will contact the contractor to obtain more information.

Mayor Hernandez inquired about the landscaping on Farmersville Blvd.

Public Works Director Steven Thompson stated that his goal is to have all landscaping maintained by the same company to ensure a uniform appearance.

Council Action: Consent item 5 was motioned by Councilmember Boyer, seconded by Councilmember Gomez and approved with a 5-0 vote.

Consent item 6
Mayor Pro Tem Ochoa asked the City Attorney if he had reviewed the resolution to ensure it aligned with the salary schedule. City Attorney Nick Matoian confirmed that he had reviewed it and stated that it was in order.

Council Action: Consent item 6 was motioned by Councilmember Gomez, seconded by Mayor Pro Tem Ochoa and approved with a 5-0 vote.

I. ACTION ITEMS
Comments related to Action and Public Hearing Items are limited to two (2) minutes per speaker, for a maximum of 20 minutes per item. The Mayor may reasonably limit or extend the public comment period to preserve the Council's interest in conducting efficient, orderly meetings.

1. Authorization to Donate Surplus Fire Apparatus (Squad 83) to College of the Sequoias Fire Technology Program.

Presented by Jim Thomas, Fire Chief
Council Action: It was motioned by Councilmember Gomez, seconded by Mayor Pro Tem Ochoa and approved with a 5-0 vote.

Mayor Pro Tem Ochoa requested that the delivery of the Fire Truck be posted on social media.

J. PUBLIC HEARINGS
None
K. DISCUSSION ITEMS

1. Discussion and consideration of providing medical benefits to members of the City of Farmersville - City Council.

Presented by Daymon Qualls, City Manager
The Council directed staff to prepare a cost comparison for a future meeting, showing the difference between an increase to the Council stipend and the cost for Councilmembers to be covered under the City's insurance.

L. COUNCIL REPORTS
Councilmember Hinojosa stated that Farmersville is looking very good and noted that he has received compliments from the community.

Councilmember Boyer attended a Greater Kaweah Ground Water meeting.

Councilmember Gomez reported that he attended the League of Cities Division meeting last week where Congressman Valadao provided an update on current activities in Washington. Additionally, the executive board was selected, and Councilmember Gomez stated he will serve another year representing Tulare County Cities. He was also recognized for his service as Division President during 2019-2020.

Mayor Pro Tem Ochoa inquired whether Fire Chief Thomas had received her email TCOEand the licensing of a child development center at Hester Elementary School and the need for a fire inspection. Fire Chief Thomas responded that he would reach out the following morning. Mayor Pro Tem Ochoa reported that the Self-Help Project Manager contacted her regarding energy assistance for Farmersville and expressed interest in scheduling a meeting. Self-Help also asked her to join their board, and she consulted the City Attorney to determine if there is any conflicts of interest. Additionally, she noted that TCAG is preparing its 2026 calendar and inquired about hosting a board meeting at the Transit Center on September 21, 2026, for approximately 50 people. After discussing with the City Manager, she indicated the Transit Center may be too small and recommended placing the item on the next Council agenda.

Lastly, she attended a press conference with Senator Hurtado regarding Bill 647.

Mayor Hernandez reported that she attended the National Night Out, which had a great turnout, and toured the Fire Station.

M. CITY MANAGER/DEPARTMENT COMMUNICATIONS
City Manager Daymon Qualls shared several updates with the Council. He began with the Strategic Planning Workshop, noting that the draft workplan has been reviewed by all department heads, feedback has been incorporated, and a final version is being prepared for Council consideration.

On the Senior Center contract with CSET, Mr. Qualls reported that he met with CSET on August 4 to discuss ways to reduce overhead costs. However, on August 18 the City received a termination notice effective September 18, 2025. He expressed disappointment with this decision and the impact it will have on Farmersville's seniors, while emphasizing that the City remains committed to ensuring a smooth transition and minimizing disruption.

Turning to development projects, Mr. Qualls explained that traffic concerns with the Sierra Woods Subdivision have been addressed and cleared, the County offered no comments, and the project is ready to move forward to hearing as staff finalizes conditions. At the Transit Center, construction progress continues with floors sealed and baseboards installed. Plans are underway to schedule a Ribbon Cutting, and in response to Councilmember Ochoa's request for a tour, he invited all Councilmembers to participate, noting that tours will be arranged in small groups to avoid quorum issues.

Mr. Qualls also highlighted the Eagle Meadows LOMR, which is nearly finalized and will remap much of Farmersville. The updated floodplain information is a positive development for planning and growth, has no adverse impacts on property owners, and is currently undergoing public notice to meet FEMA requirements.

Housing opportunities also remain a priority. The First-Time Homebuyer Program has been approved for use with HOME funding and will provide zero-interest, deferred loans to assist with down payments and closing costs. The City is awaiting an amended Standard Agreement from HCD, and revised program guidelines and loan documents will soon be brought forward for Council adoption. Self-Help Enterprises will oversee compliance and monitoring.

Mr. Qualls also shared recent community engagement efforts. National Night Out, held on August 15, drew a smaller turnout than anticipated but was still successful, and staff is exploring ways to increase participation next year. The Coffee with a Cop event at Boss Hoggs offered another positive opportunity for community interaction. Additionally, he attended a press conference with Senator Hurtado regarding SB 647, the Home Energy Savings Expansion Act, which will support low-income families with energy transition assistance. He noted that Senator Hurtado continues to strongly advocate on behalf of Farmersville.

To conclude, Mr. Qualls reported that staff has developed a comprehensive staff report reference guide, which will be shared with department heads this Friday. The guide is designed to promote consistency, clarity, and best practices across all staff reports.

Finance Director Anthony Loza provided the Council with several updates on current projects and responsibilities. He reported that he is completing the loan paperwork for the City's new police vehicle and has uploaded and reconciled the budget in the financial system. Mr. Loza is also working on staffing needs within the Administration office and has uploaded meter read files for Public Works. In addition, he continues to process payroll and recently met with Public Works staff to review and address meter read issues.

Public Works Director Steven Thompson informed the Council that all street paving has been completed and striping will begin tomorrow. Roy's Park now has power and a booster pump, and sprinkler installation is nearly finished. The park is scheduled to be reseeded next week. Soccer Field #3 has been leveled, all sprinkler heads have been marked, and reseeding will follow before moving on to the other soccer fields. He also reported that three Public Works employees are attending Underground Utility Safety Training.

Fire Chief Jim Thomas informed the Council that the Type 6 engine is currently assigned to a fire. The Fire Department also participated in National Night Out. He noted they are still waiting on SCE to provide electricity to the new Fire Station. Lastly, he reported that the field next to the bank has been cleared. • Police Sgt. Frausto informed the Council that the department is closely monitoring homelessness at Peoples Ditch and has issued 48-hour notices to those remaining on the property.

N. FUTURE AGENDA ITEMS
City Manager to add
Mayor Hernandez adjourned to closed session at 7:08pm.

O. EXECUTIVE (CLOSED) SESSION

1. Conference with Legal Counsel - Existing Litigation (Gov. Code §54956.9) 1 Case: Quad Knopf/WWTP
Real Property Negotiations - Conference with Real Property Negotiators (Gov.

Code §54956.8)
PROPERTY: APN: 130-030-017 located in the City of Farmersville CITY NEGOTIATOR: Daymon Qualls, City Manager
NEGOTIATING PARTIES: Neal E. Hester and Maureen J. Hester, as Trustees of the Hester Family Revocable Trust of February 24, 2010
UNDER NEGOTIATION: Price and Terms of Payment

3. Public Employment (Gov. Code §54957)
Title: City Clerk, Finance Director

4. Public Employee Discipline/Dismissal/Release (Gov. Code) §54957 (b) Mayor Hernandez reconvened to open session at 8:33pm.

The City Council unanimously voted 5-0 to approve the contract to purchase three acres of APN 130-030-017 from Neal E. Hester and Maureen J. Hester, as trustees of the Hester Family Revocable Trust, pursuant to the terms of the purchase and sale agreement, and to authorize payment of the remaining purchase price balance.

Mayor Hernandez adjourned the meeting at 8:34pm.

P. REGULAR MEETING ADJOURNMENT
State of California
County of Tulare ) ss.

City of Farmersville )
I declare under penalty of perjury that I am employed by the City of Farmersville, in the Hal, Ma W. Visalia Rd. Farmersile, CA 93323 on August 8, 2025 and odine onto City of Farmersville website: https://www.cityoffarmersville-ca.gov/.

35. 104 ADA Title II).

CITY OF Item #: 2

STAFF REPORT
Consent
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: City Manager
FROM: Daymon Qualls, City Manager
AGENDA TITLE: Adoption of Resolution 2025-045 Authorizing Submittal of an Application for HOME Investment Partnerships Program Funding

ACTION & RECOMMENDATION
Staff recommends that the City Council:

1. Adopt the attached resolution authorizing submittal of an application to the California Department of Housing and Community Development for HOME Program funding in the amount of $500,000; and

2. Authorize the City Manager, or designee, to execute all documents necessary to implement the HOME Program if awarded.

BACKGROUND | ANALYSIS
The HOME Investment Partnerships Program is funded by the U.S. Department of Housing and Urban Development (HUD) and administered by HCD at the state level. HOME funds are intended to expand the supply of decent, safe, affordable housing for low-income households through acquisition, rehabilitation, and homeownership assistance.

On June 5, 2018, HCD released a Notice of Funding Availability (NOFA) for the HOME Program, making funds available to eligible jurisdictions throughout California. The City of Farmersville has successfully implemented housing assistance programs in the past and seeks to continue addressing community housing needs through the HOME Program.

City staff propose submitting a HOME Program application in the amount of $500,000, allocated as follows:
• First-Time Homebuyer Program: $243,750
• Owner-Occupied Rehabilitation Program: $243,750
• General Administration: $12,500
Approval of the attached resolution will authorize the City Manager, or designee, to submit the application, execute a Standard Agreement with HCD if the application is approved, and carry out all related administrative actions required to implement the program. This funding will directly benefit low- and moderate-income Farmersville residents by increasing opportunities for affordable homeownership and preserving existing housing stock through rehabilitation.

FISCAL IMPACT
There is no General Fund impact associated with this action. All program costs will be funded through the HOME allocation, if awarded. The $12,500 administration allocation will cover staff and related expenses associated with program management.

ATTACHMENTS

1. Resolution 2025-045
Reviewed/Approved:

RESOLUTION NO. 2025-045

THE GOVERNING BOARD OF
City of Farmersville
HEREBY AUTHORIZES: Submittal of an application to the California Department of Housing and Community Development for funding under the HOME Investment Partnerships Program (HOME); and if selected, the execution of a Standard Agreement, any amendments thereto, and of any related documents necessary to participate in the HOME Program.

WHEREAS:

A. The California Department of Housing and Community Development (the "Department") is authorized to allocate HOME Investment Partnerships Program ("HOME" funds made available from the U.S. Department of Housing and Urban Development ("HUD). HOME funds are to be used for the purposes set forth in Title Il of the Cranston-Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the Code of Federal Regulations, part 92, and in Title 25 of the California Code of Regulations commencing with section 8200.

B. On June 5, 2018, the Department issued a Notice of Funding Availability announcing the availability of funds under the HOME program (the "NOFA").

C. In response to the NOFA, City of Farmersville, a municipal corporation (the "Applicant"), wishes to apply to the Department for, and receive an allocation of, HOME funds.

IT IS NOW THEREFORE RESOLVED THAT:

In response to the above-referenced HOME NOFA, the Applicant shall submit an Application to the Department to participate in the HOME program and for an allocation of funds not to exceed Five Hundred Thousand Dollars ($500,000) for the following activities and/or programs:

First-Time Homebuyer Program $243,750
Owner-Occupied Rehabilitation Program $243,750
General Administration $12,500
Total $500,000
to be located in the City limits of Farmersville.

2. If the Application for funding is approved, then the Applicant hereby agrees to use the HOME funds for eligible activities in the manner presented in its Application as approved by the Department in accordance with the statutes and regulations cited above. The Applicant will also execute a Standard Agreement with the Department, any amendments thereto, and any and all other documents or instruments necessary or required by the Department or HUD for participation in the HOME program.

The Applicant hereby authorizes and directs City Manager, in the name of the Applicant, the HOME Standard Agreement, other HOME-related contracts and conveyances, and any subsequent amendments thereto.

The Applicant hereby authorizes City Manager or their designee, to execute, in the name of the Applicant, drawdown requests and any other HOME Program form requiring a signature, as may be required by the Department from time to time.

PASSED AND ADOPTED by the City Council of the City of Farmersville this 22d day of September, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Tina Hernandez, Mayor

CERTIFICATION OF ATTESTING OFFICER
The undersigned City Clerk of the Applicant does hereby attest and certify that the foregoing is a ule and fulled my of a Resolution of the governing board of the Applicant passed and adopted at and said Resolution has not been altere
Name Signature Date
CITY Of STAFF REPORT Item #: 3
Consent
FARMERSVILLE/ TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: City Manager
FROM: Daymon Qualls, City Manager
AGENDA TITLE: Adoption of Resolution 2025-046 Approving the Revised First-Time Homebuyer Program Guidelines and Related Documents under the HOME Program

ACTION & RECOMMENDATION
Staff recommends that the City Council adopt Resolution 2025-046 approving the First-Time Homebuyer (FTHB) Program Guidelines and related loan documents as required by the California Department of Housing and Community Development (HCD) for participation in the HOME Investment Partnerships Program (HOME).

BACKGROUND | ANALYSIS
The City of Farmersville has historically participated in the HOME Program to expand affordable housing opportunities for low- and moderate-income households. The City recently received approval from HCD for its First-Time Homebuyer (FTHB) Program Restoration Package.

The package includes the following required documents:
• FTHB Program Guidelines (approved for HOME use)
• HOME FTHB Written Agreement
• Promissory Note
• Deed of Trust
These documents must be used for all HOME-assisted homebuyer loans administered by the City.

HCD has advised that the approved Program Guidelines function as a third layer of regulation in addition to the HOME Final Rule and State HOME Regulations. Any future revisions to the Program Guidelines (other than routine updates to income or purchase price limits) must receive prior approval from HCD. Similarly, any requested changes to the HOME FTHB Written Agreement must be approved by HCD before implementation.

Approval of the Program Guidelines and associated loan documents ensures that the City can move forward with offering HOME-assisted homebuyer loans to qualified first-time homebuyers. This approval also positions the City to meet upcoming HOME Program deadlines, including the execution of the HOME Standard Agreement and clearance of General Setup Conditions by HCD.

Failure to adopt the Program Guidelines and required documents would delay the City's ability to implement the First-Time Homebuyer Program, potentially resulting in missed funding opportunities and reduced housing assistance for residents.

FISCAL IMPACT
There is no direct fiscal impact associated with approving the Program Guidelines and loan documents.

Program administration and loan funding will be supported by HOME funds awarded to the City by HCD.

ATTACHMENTS

1. Resolution 2025-046 Approving the FTHB Program Guidelines and Loan Documents

2. First-Time Homebuyer Program Guidelines (Approved by HCD)

3. HOME FTHB Written Agreement

4. Promissory Note

5. Deed of Trust
Reviewed/Approved: 523
RESOLUTION NO. 2025-046

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FARMERSVILLE

APPROVING THE REVISED FIRST-TIME HOMEBUYER PROGRAM GUIDELINES AND LOAN

DOCUMENTS FOR USE UNDER THE HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)
WHEREAS, the City of Farmersville has historically participated in the HOME Investment Partnerships Program (HOME) to expand affordable housing opportunities for low- and moderate- income households; and
WHEREAS, the California Department of Housing and Community Development (HCD) requires the City to adopt Program Guidelines and related loan documents in order to implement a HOME- assisted First-Time Homebuyer (FTHB) Program; and
WHEREAS, the City's FTHB Program Guidelines, HOME Written Agreement, Promissory Note, and Deed of Trust were recently revised and have been reviewed and approved by HCD for HOME use; WHEREAS, HCD requires that the City Council formally adopt the revised FTHB Program Guidelines and loan documents as a condition of program implementation; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Farmersville, California, as follows:

1. The revise fre and De Moor trust agrave by ice, are orely adepted resent, administering the City's HOME-assisted First-Time Homebuyer Program.

2. The City Manager, or designee, is authorized to take all necessary actions to implement the Program, including execution of required agreements and coordination with HCD.

PASSED AND ADOPTED by the City Council of the City of Farmersville this 22d day of September, 2025, by the following vote:

AYES:

NOES:_
ABSENT:

ABSTAIN:

Tina Hernandez, Mayor Rochelle Giovani, City Clerk
City of
Farmersville
HOME Investment Partnerships Program
(HOME)
First-Time Homebuyer
Program Guidelines
Serving the City of Farmersville

OPPORTUNITG
HCD Version 12.2024

FIRST-TIME HOMEBUYER PROGRAM GUIDELINES
Table of Contents

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. THE HOME PURCHASE PROCESS

1.4. HOMEBUYER COSTS

1.5. HOMEBUYER EDUCATION

1.6. CONFLICT OF INTEREST REQUIREMENTS

1.7. NON-DISCRIMINATION REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS

3.2. CONDITIONS

3.3 ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.4. PROPER NOTIFICATION AND DISCLOSURES

4.0. PURCHASE PRICE LIMITS

5.0. THE PRIMARY LOAN
A. QUALIFYING RATIOS
B. INTEREST RATE
C. LOAN TERM
D. IMPOUND ACCOUNT

6.0. THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
B. NON-RECURRING CLOSING COSTS
C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
D. RATES AND TERMS FOR PROGRAM LOANS
E. LOAN-TO-VALUE RATIO

7.0. PROGRAM LOAN REPAYMENT

7.1. PAYMENTS ARE VOLUNTARY

7.2. RECEIVING LOAN REPAYMENTS

7.3. DUE UPON SALE OR TRANSFER

7.4. LOAN SERVICING POLICIES AND PROCEDURES

7.5. LOAN MONITORING PROCEDURES

8.0. PROGRAM LOAN UNDERWRITING AND APPROVAL

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING

8.3. ESCROW PROCEDURES

9.0. SUBORDINATE FINANCING

10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

10.1. DEFINITION OF EXCEPTION

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

TABLE OF CONTENTS (CONTINUED)

ATTACHMENTS
ATTACHMENT A: INCOME INCLUSIONS AND EXCLUSIONS
ATTACHMENT B: ASSET INCLUSIONS AND EXCLUSIONS
ATTACHMENT C: MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMITS; HOME MAXIMUM PER-UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS
ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT E: SELLER'S LEAD-BASED PAINT DISCLOSURE
ATTACHMENT F: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S-LENGTH

PURCHASE OFFER
ATTACHMENT G: INSTRUCTIONS TO HOMEBUYER
ATTACHMENT H: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD REDUCTION FORM
ATTACHMENT I: HOMEBUYER PROGRAM LEAD COMPLIANCE DOCUMENT CHECKLIST City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

CITY OF FARMERSVILLE

HOME PROGRAM FIRST-TIME HOMEBUYER PROGRAM GUIDELINES

1.0. GENERAL
The above-named entity, hereinafter referred to as the "Sponsor" or "Lender," has entered into a contractual relationship with the California Department of Housing and Community Development ("HCD") to administer a HOME First-Time Homebuyer program. The homebuyer program described herein (the "Program") is designed to assist eligible homebuyers in purchasing homes, also referred to herein as "housing units", located within the Program's eligible area, as described in Section 3.1.A. The Program provides this assistance in the form of a 30+ year deferred payment "silent" junior priority loan as "Gap" financing toward the purchase price and closing costs of an affordable housing unit that will be occupied by the homebuyers as their primary residence during the HOME Affordability Period. The Program will be administered by Self-Help Enterprises, (the "Program Operator").

1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to ensure nondiscriminatory treatment, outreach, and access to the Program. No person shall, on the grounds of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial status (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age be excluded, denied benefits, or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with disabilities, have access to the Program and will take steps to ensure effective communication with and marketing to applicants, residents, and members of the public with disabilities.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials.

Affirmative marketing efforts will be based upon a comparison (census data will be used) of the Program's eligible area compared to the demographic characteristics of the population served by the Program. This includes tracking separately all applications, including subsets for those which result in denial of assistance or withdrawal, and for those which result in assistance), and an explanation and analysis of any underserved segments of the population. This information is used to show that protected classes (listed above) are not being intentionally or unintentionally excluded from the Program. Flyers or other outreach materials, in English and any other languages that are the primary languages of a significant portion of the area's residents, in accordance with Sponsor's Limited English Proficiency (LEP) Plan, or equivalent, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homebuyer seminars to help educate homebuyers about the homebuying process and future responsibilities.

B. The Program Operator will market the Program to local real estate agents and primary lenders to explain the Program requirements for eligible housing units and homebuyers, and to review Program processes. Local real estate agents and primary lenders will also be invited to have their customers participate in the Program.

C. The following statement will be included in all outreach and marketing materials: Section City of Farmersville HOME Program First-Time Homebuyer Program Guidelines 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds.

D. The Sponsor will ensure that all Personally Identifiable Information remains confidential and is properly protected.

1.2. APPLICATION PROCESS AND SELECTION
A. Interested households are provided with a Program Brochure, the Instructions to Homebuyer (Attachment G), and a Pre-Application. They are also directed to the Program Operator's HUD-approved Homebuyer Counseling and Education Program. Once the household completes and submits the Pre-Application, they are placed on a waiting list.

The waitlist is updated regularly to ensure accuracy. Households may be removed from the list under the following circumstances:
• They have successfully completed the program and purchased a home. • They fail to meet eligibility requirements during further review. • They request to be removed from the list.
• They do not respond after three communication attempts (telephone, email, mail) when given a 10-day timeframe to respond for each attempt.

The waitlist is reviewed and updated periodically, and households are contacted to confirm their continued interest and eligibility.

B. Once funds are available and the interested household's name comes to the top of the waiting list, via phone we will go over the pre-application's information and either a preliminary eligibility or withdrawal letter will be sent to potential household. The potential homebuyer is advised to interview and compare lenders to start the pre- qualification process for a primary loan. Potential homebuyers are advised that funds will be available on a first come, first-served basis upon receipt of a complete application package and pre-qualification letter from the interested household's primary lender.

C. The Program Operator will provide the submission form/lender cover letter and application, income and assets form, to the potential homebuyer's primary lender for completion and signatures. In addition to these documents, the primary lender must submit a complete application package and pre-qualitication letter to the Program Operator on behalf of the applicant. Complete applications are processed on a first-come, first-served basis. Applications are deemed complete only if all information is completed the application is signed, dated, along with primary lender's pre-qualification information. Incomplete applications cannot be processed and are not deemed complete.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there is income, asset, household composition, or other important questions that cannot be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months, as stated in a written assistance denial letter.

D. Upon eligibility confirmation, the Program Operator will send both the potential homebuyer and primary lender the following documents: pre-qualification letter, condition list, Program Brochure, Attachment (G) Instructions to Homebuyer, Attachment (E) Seller's Lead-Based Paint Disclosure and the EPA Booklet (Protect Your Family from Lead in Your Home) and (F) Notice to Seller.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines E. The potential homebuyer is given 90 days to find a qualified home and secure a primary loan for the housing unit. If during the 90-day timeframe, the potential homebuyer is unable to achieve this, an extension may be given. However, if the potential homebuyer cannot meet the requirements of finding a qualified housing unit and closing a primary loan within the allotted time to participate in the Program, the reservation of fund expires and the next person on the waiting list will be given an opportunity to participate

1.3. THE HOME PURCHASE PROCESS
A. The following is a simplified example of how a primary lender would analyze a homebuyer's finances to determine how much the homebuyer could afford to borrow from the primary lender towards homeownership.

DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH

HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $ 865 $1,180 Housing
Insurance 82 +200 Other Debt Service
Taxes 233 $1,380 Total Debt Service
Total Housing Expense $1,180 (Overall debt service per month is 41% of $3,388) (PITI is 35% of $3,388)

OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment 50
Total Other Debt $ 200
A $865 per month loan payment equates to borrowing $143,000 at 5.88% for a 30-year term.

SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH
Purchase Price of Property $ 280,000
Less Primary loan amount 143,000
Less down payment of 1% 2,800
Equals "GAP" $ 134,200
Plus estimated allowable settlement charges 8,400
Equals Total Subsidy $ 142,600
City of Farmersville HOME Program First-Time Homebuyer Program Guidelines B. The housing unit selection process will be conducted by the homebuyers. Prior to making an offer to purchase an eligible housing unit (see Section 3.0), homebuyer shall provide seller with a disclosure containing the following provisions (see Attachment F for Disclosure to Seller form):
1) Homebuyer has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement. 2) Homebuyer's offer is an estimate of the fair market value of the housing unit, to be finally determined by a state-licensed appraiser.

The housing unit will be subject to inspection. In accordance with 24 CFR section

92.251 (c), the housing unit must be decent, safe, sanitary, and in good repair. The standards must provide that the housing meets all applicable State and local housing quality standards and code requirements and the housing does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME assisted projects and units;
4) All housing units built prior to January 1, 1978, will require a lead paint disclosure to be signed by both the homebuyer and Seller (Attachment E); Since the sale is voluntary, seller is not eligible for relocation payments or other relocation assistance;
Seller understands that the housing unit must be either: currently owner-occupied, newly constructed, bought by the current tenant, or vacant for three months prior to submission of the purchase offer.
7) If the seller is not provided with a statement of the above six provisions prior to or with the purchase offer, the seller may withdraw from the agreement after this information is provided.

C. Applicant submits an executed Standard Form Purchase and Sale Agreement, along with a primary lender pre-qualification letter to Program Operator. The purchase and sale agreement will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval. Program Operator verifies applicant eligibility, housing unit and loan eligibility and amount of assistance to be provided consistent with these guidelines.

D. Program Operator conducts an Environmental Review in accordance with 24 CFR Part 58, and Sponsor's NEPA Certifying Officer signs the appropriate form before any commitment of funds are made to the homebuyer. An acquisition cannot and must not include rehabilitation immediately after transfer of title, and requires completion of a HUD CENST form from the Environmental Review - HUD Exchange webpage.

Program Operator, where Program Operator is not the Sponsor, submits recommendation o the Sponsor for approval or denial, including the reasons for the recommendatior ponsor determines Applicant's approval or denial and instructs Program Uperator t notify Applicant. Program Operator provides written notification to Applicant of approval or denial with reason and, if denied, a copy of the Program's appeal procedures.

See Section 11 of these Program Guidelines.

F. When primary lender requirements are met, Program funds are deposited into escrow, with required closing instructions and loan documents.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines G. At the time of escrow closing, the Sponsor shall be named as an additional loss payee on fire, flood (if required), and extended coverage insurance for the length of the loan and in an amount sutficient to cover all encumbrances or full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.

1.4. HOMEBUYER COSTS
A. Eligible households must document that they have the funds necessary for down payment and closing costs as required by the primary lender and the Sponsor. The Program's down payment requirement (below) is in place even if the primary lender has a lower down payment requirement. If the primary lender has a higher down payment requirement, there is no additional down payment requirement required by the Program.

B. Homebuyer must contribute a minimum down payment of one percent (1%) of the purchase price but may contribute more if desired.

C. Sponsor will provide a subsidy that is no greater than the applicable HOME Maximum Per-Unit Subsidy Limit for the State of California. The subsidy will reduce the amount of the primary lender's loan so that the payments of principal, interest, taxes, insurance, and mortgage insurance and HOA dues, if any, are within approximately 25 to 35% of the household's gross monthly household income. In addition, the borrower's total debt must be within the ranges in Section 5.0. of these Program Guidelines.

D. The Program Operator will determine the level of subsidy and affordability during underwriting of the Program's loan to make sure that it conforms to the requirements of the HCD funding Program.

1.5. HOMEBUYER EDUCATION
All Program participants are required to receive housing counseling prior to Program approval, delivered by a HUD-certified housing counselor who works for an organization certified by HUD to perform housing counseling. The Program Operator will provide the homebuyer with the needed counselor information. A list of such counseling entities is available at:
https://hud4.my.site.com/housingcounseling/s/?language=en_US.

A copy of the applicant's certificate of completion must be placed into the homebuyer file maintained by the Program Operator. In addition, the Program Operator must include evidence that the counseling provider was HUD-certified when the counseling certification was issued.

Acceptable forms of housing counseling include in-person, phone, and/or internet, provided the client and counselor have an individualized dialogue, with guidance and advice tailored to an individualied dialogue, client's needs. This includes creating a client budget, financial analysis, an action plan, and referrals to relevant resources such as down payment assistance programs or legal services.

Housing Counseling defined: Housing counseling is independent, expert advice customized to the need of the consumer to address the consumer's housing barriers and to help achieve their housing goals and must include the following processes: Intake; financial and housing affordability analysis; an action plan, and a reasonable effort to have follow-up communication with the client when possible. The content and process of housing counseling must meet the standards outlined in 24 CFR Part 214, which include:

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines • addressing unique financial circumstances or housing issues; • focusing on ways of overcoming specific obstacles to achieving a housing goal such as repairing credit;
• addressing a rental dispute, purchasing a home, locating cash for a down payment, and being informed of fair housing and fair lending requirements of the Fair Housing Act; • finding units accessible to persons with disabilities; • avoiding foreclosure;
• resolving a financial crisis; and
• the creation of an action plan.

1.6. CONFLICT OF INTEREST REQUIREMENTS
The applicable Conflict of Interest requirements of 24 CFR section 92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage, or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild, and in-laws of a covered person. (b) Persons covered. The conflict-of-interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient receiving HOME funds. (c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR sections

92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

1.7. NON-DISCRIMINATION REQUIREMENTS
The Program will be implemented in ways consistent with the Sponsor's commitment to non- discrimination. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination under any program or activity funded in whole or in part with State or federal funds on the basis of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial status (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

2.0 APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS FOR THE AREA, BY HOUSEHOLD SIZE All applicants must certify that they meet the household income eligibility requirements for the applicable HCD program (s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility.

All applicants must have incomes at or below 80% of the County's area median income (AMI), adjusted for household size, as published by HCD.
(See Attachment C for current income limits).

Household: Means one or more persons who will occupy a housing unit. Unborn children

CHOOSE ONE AND DELETE THIS PROMPT AND ONE OF THESE TERMS, AND UNHIGHLIGHT: count in family size determination.

Annual Income: Generally, this is the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period.

2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the HCD-published HUD income limits. The annual income definition found at 24 CFR Part 5, as detailed in the most recent HCD program-specific guidance at https://www.hcd.ca.gov/grants-and-funding/income-limits/income-calculation-and- determination-guide, will be used to independently determine and certify the household's annual gross income. The Program Operator should compare this annual gross income to the income the primary lender used when qualifying the household. The primary lender is usually underwriting to FHA or conventional guidelines and may not calculate the household income or assets in the same way as required by the Program. Income will be verified by examining at least 2 months of source documents evidencing annual income (e.g., wage statement, interest statement, unemployment compensation statement) and six months of checking statements for the household. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period and will be used to determine program eligibility. For those types of income counted, gross amounts (before any deductions have been taken) are used. The income of live-in aides and the earned income of minors are not included in annual gross income calculations. Certain other household members living apart from the household also require special consideration. The household's projected income must be used, rather than past earnings, when calculating income.

See Attachment A: Income Inclusions and Exclusions
B. ASSETS:

There is no asset limitation for participation in the Program. Income, or imputed income from assets, however, is recognized as part of annual income under the 24 CFR Part 5 regulations (included as Attachments A and B). An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles City of Farmersville HOME Program First-Time Homebuyer Program Guidelines are not included. (Note: it is the income earned - e.g., interest on a savings account - or in some cases imputed income, not the asset value, which is counted in annual income.) An asset's cash value is the market value, less reasonable expenses required to convert the asset to cash, including, for example, penalties or fees for converting financial holdings, and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.

See Attachment B: Asset Inclusions and Exclusions

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
Program Operators are required to use the following definition of an eligible homebuyer, which is a "first-time homebuyer" from 8201(m) Title 25 California Code of Regulations:
"First-time homebuyer" means an individual or individuals, or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with subsidy assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition:

1. a displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family;

2. a single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; or

3. an individual or individuals who owns or owned, as a principal residence during the three-year period before the purchase of a home with assistance, a a. not permanently affixed to a permanent foundation in accordance b. not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS
A. Housing units to be purchased must be located within the eligible area. The eligible area is described as follows: "Within the jurisdictional limits of the City of Farmersville." B. Housing unit types eligible for the Homebuyer Program are new or previously-owned single-family residences; condominiums; or manufactured homes in mobile home parks, City of Farmersville HOME Program First-Time Homebuyer Program Guidelines in common-interest developments or on a single-family lot and placed on a permanent foundation system. HOME does not allow manufactured homes unless on a permanent foundation system.

C. All housing units must be in compliance with property standards in Section 1.3.B.3 of these Program Guidelines. The buyers will obtain a Certified Home Inspection, or a Sponsor Representative or Program Operator will inspect the unit for any health/safety and code compliance violations, and any deficiencies must be corrected and documented prior to the close of escrow.

D. Housing units located within a 100-year flood zone will be required to provide proof of flood insurance with an endorsement naming the City of Farmersville as loss payee in order to close escrow.

E. Housing must be "modest", in accordance with the federal HOME regulations at 24 CFR section 92.254(a)(2).

3.2. CONDITIONS
A. Construction Inspection and Determining Need for Repairs.

Once the participating homebuyer has executed a purchase agreement for a housing unit and, prior to a commitment of Program funds, the following steps must be taken for the housing unit to be eligible for purchase under the Program:
1) When the Sponsor's Program utilizes Federal funds and if the housing unit was constructed prior to 1978 then the lead-based paint requirements of Section 3.2.C will apply.

The Program Operator is responsible to ensure that a certified housing inspector walks through the housing unit, determines if it is structurally sound, and identifies any code- related and health and safety deficiencies that need to be corrected. A list of necessary repair items will be given to the homebuyers and their Realtor to present to the seller's agent.

If there are one or more health and safety deficiencies, and/or violations of applicable building codes noted in the written report, the Sponsor will approve the subsidy only if prior to close of escrow, and seller agrees to have necessary repairs made to the dwelling unit prior to transfer of property ownership, at the seller's expense.

Upon completion of all work required by the Program Operator, Sponsor, appraiser, pest inspector and/or certified housing inspector, a final inspection will be conducted prior to close of escrow. The inspector will sign off on all required construction work assuring that each housing unit receiving Program assistance complies with Section 1.3.B.3. requirements of these Program Guidelines that the unit is decent, safe, sanitary, and in good repair, and that it meets all applicable State and local housing quality standards and code requirements and does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME-assisted projects and units, at the time of purchase and prior to occupancy.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines 2) Only new construction and homes built within the previous 12 months and not previously occupied are not subject to a home inspection.

B. Per 24 CFR section 92.214(a)(6), no additional HOME assistance, including rehabilitation funds, may be provided after the 1-year anniversary of the filing of the Project Completion Report through the end of the HOME Affordability Period. The HOME Affordability Period is as follows (amount does not include Activity Delivery and Administration Costs paid to the State Recipient by HCD):

Amount of HOME Assistance Period of Affordability in Years Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
During the HOME Affordability Period, the home must remain occupied by the borrower or an eligible heir, as their primary residence, or else all HOME assistance becomes due and payable.

C. Lead-Based Paint Hazards: All housing units built prior to 1978 for which HOME funding is anticipated are subject to the requirements of this section 3.2.C. Such homes must undergo a visual assessment by a person who has taken HUD's online Visual Assessment course. Deteriorated paint must be stabilized using work safe methods.

Clearance must be obtained after paint stabilization by a DHS-certified LBP Risk Assessor/Inspector. HOME general administrative and activity delivery funds may be used to pay for lead-based paint visual assessments, and if lead mitigation and clearance costs are incurred, these programs may incorporate the costs into the calculation of Program assistance.

The following requirements must be met:
1) Notification: a) Prior to homebuyer's obligation to purchase a home built prior to 1978, the Buyer will be given the most recent copy of and asked to read the EPA pamphlet "Protect Your Family From Lead in Your Home". (EPA 747-K-94-001)..

A signed receipt of the pamphlet will be kept in the Sponsor's homebuyer file; b) A notice to residents is required following a risk assessment/inspection using form DHS 8552, which is provided by the DHS-certified Risk Assessor/Inspector; c) a notice to residents is required following lead-based paint mitigation work using Visual Assessment and Lead-based Paint Notice of Presumption and Hazard Reduction form, LBP - 1 (Attachment H).
2) Disclosure: Prior to the homebuyer's obligation to purchase a home built prior to 1978, the HUD disclosure (Attachment E), "Seller's Lead-based Paint Disclosure" notice must be provided by the seller to the homebuyer. 3) Inspections: The Inspector shall conduct a "Visual Assessment" of all the dwelling unit's painted surfaces to identify deteriorated paint. All deteriorated paint will be stabilized in accordance with CFR 35.1330 (a) and (b); and a Clearance shall be made in accordance with CFR 35.1340.
4) Mitigation: If stabilization is required, the contractor performing the mitigation work must use appropriately-trained workers. Prior to the contractor starting mitigation work, the Program Operator shall obtain copies of the contractor's and City of Farmersville HOME Program First-Time Homebuyer Program Guidelines workers' appropriate proof of LBP training, as applicable to the job, to assure that only qualified contractors and workers are allowed to perform the mitigation.

The Program Operator will: 1) confirm that the housing unit is within the eligible area, 2) will review each proposed housing unit to ensure that it meets all eligibility criteria before funding, and 3) ensure a completed Lead Compliance Document Checklist is placed in each purchaser's file (see Attachment I).

Environmental Review: Program Operator conducts an Environmental Review in accordance with 24 CFR Part 58, and Sponsor's NEPA Certifying Officer signs the appropriate form before any commitment of funds are made to the homebuyer. An acquisition must not include rehabilitation immediately after transfer of title, and requires completion of a HUD CENST form from the Environmental Review - HUD Exchange webpage.

3.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Eligible homes will be those that are currently owner-occupied or have been vacant for three months prior to the acceptance of a contract to purchase. A unit is ineligible if its purchase would result in the displacement of a tenant. It is not anticipated that the implementation of the Program will result in the displacement of any persons, households, or families. However, if tenant- occupied homes are inadvertently included in the Program and relocation becomes necessary, the activity will be carried out in compliance with Sponsor's relocation plan, which describes how those permanently displaced will be relocated and paid benefits in accordance with the following Federal laws.

A. Uniform Relocation Assistance (URA) and Real Property Acquisition Policies Act of 1970
The federal URA and Real Property Acquisition Policies Act of 1970, as amended, contains requirements for carrying out real property acquisition or the displacement of a person, regardless of income status, for a project or program for which HUD financial assistance (including HOME) is provided. Requirements governing real property acquisition are described in HUD's CPD Handbook 1378.0. The implementing regulations, 49 CFR Part 24, require developers and owners to take certain steps regarding tenants of housing to be acquired, rehabilitated, or demolished, including tenants who will not be relocated even temporarily.
receiving assistance under HOME, to certify that it is following a residential anti displacement plan and relocation assistance plan. Section 104(d) also requires relocatiot (C).

3.4. PROPER NOTIFICATION AND DISCLOSURES
A. Upon selection of a housing unit, a qualified seller and homebuyer will be given the necessary disclosures for the Program. The homebuyer must have read and signed all Program disclosure forms. All property disclosures must be reviewed and signed by the City of Farmersville HOME Program First-Time Homebuyer Program Guidelines homebuyer and seller.

B. All owners who wish to sell their housing units must receive an acquisition notice (Attachment F) prior to submission of the homebuyer's original offer. This notice will be included in the contract and must be signed by all owners on title. The disclosure must contain the items listed in 1.3.B. (required for federally-funded programs).

4.0. PURCHASE PRICE LIMITS
The purchase price limits for this Program shall not exceed the HOME Homeownership Value Limit for the Sponsor's County as updated by HCD, or a temporary waiver limit approved by HUD and the Department.

Attachment C: HOME HOMEOWNERSHIP VALUE LIMITS *Sponsor will update these limits annually as HCD provides new information.

5.0. THE PRIMARY LOAN
Prior to obtaining a loan from the Sponsor, a homebuyer must provide evidence of approval for the maximum amount the primary lender is willing to loan (the "primary loan"), although the Program may limit the primary loan amount based on the debt-to-income ratio maximums herein A. QUALIFYING RATIOS
The front-end (housing) debt-to-income ratio shall be between 25% and 35% and is the percentage of a borrower's gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, and mortgage insurance and HOA dues, if any.

The back-end (total) debt-to-income ratio shall be between 28% and 42% and is the percentage of a borrower's gross monthly income that would cover the cost of housing as described in the paragraph above, plus any other monthly debt payments like auto or personal loans, credit card debt, and student debt, as well as child support and alimony payments. • Exceptions to these maximums must be. documented and placed into each loan file, to demonstrate compensating factors.

The Program Operator must complete the HOME Subsidy Calculation Worksheet and place it into the loan file to document that the HOME assistance amount was appropriate, based on compliance with the debt ratio ranges in the two preceding paragraphs of this subsection. The Worksheet is currently accessible on the HOME webpage at:
https://www.hcd.ca.gov/grants-funding/grants-
forms/docs/HOME_FTHB_Subsidy Calculation Worksheet June 2013_Version.xls.

B. INTEREST RATE
The primary loan must have a fixed interest rate that does not exceed, by greater than one percent, the Freddie Mac 30-year Fixed Rate Mortgage rate at https://www.freddiemac.com/pmms.

The applicable Freddie Mac rate should be from the date the primary mortgage rate was locked, or else the date of HOME loan approval. No temporary interest rate buy-downs are permitted.

The loan file must contain this documentation for Department monitoring purposes.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines C. LOAN TYPE AND TERM
The primary loan shall be fully amortized and have a term "all due and payable" in no fewer than 30 years. There shall not be a balloon payment due before the maturity date of the Program loan.

D. IMPOUND ACCOUNT
All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.

6.0. THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
For HOME, the amount of Program assistance to a homebuyer toward purchase of a home shall not exceed the HOME Maximum Per-Unit Subsidy Limits ("Subsidy Limits") for the State of California. See Attachment C of these Program Guidelines for current Subsidy Limits. Any approved "grant" amount for lead-based paint evaluation and reduction activities or for relocation assistance shall be included in the Subsidy Limits evaluation, as shall Activity Delivery Costs.

B. NON-RECURRING CLOSING COSTS
Non-recurring costs such as credit report, escrow, closing and recording fees, and title report and title insurance, title updates and/or related costs may be included in the Program loan.

C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
The actual amount of a Homebuyer's Program subsidy shall be computed according to the debt- to-income ratio parameters specified in Section 5.0.A. Each borrower shall receive only the subsidy needed to allow them to become homeowners ("the Gap") while keeping their housing costs affordable. The Program Operator will use the "front-end ratio" of housing-expense-to- income to determine if the amount of the proposed primary loan is acceptable and, ultimately, the Program subsidy amount required, bridging the gap between the acquisition cost (purchase price plus closing costs) less down payment, and the amount of the primary loan.

D. RATE AND TERMS FOR PROGRAM LOAN
All Program assistance to individual households shall be made in the form of a deferred payment (of principal and interest) loan (DPL).

The Program loan's term shall be for as long as the primary loan, plus 15 years. If the primary mortgage is a Rural Development USDA Direct 502 loan, the Programs loan's term shall be 48 or 53 years.

The Program loan's interest rate shall be 0% simple interest.

All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, and the loan period cannot be extended, except for loans that are resubordinated when a rate and term refinance is approved, per Attachment D.

E. COMBINED LOAN-TO-VALUE RATIO
The loan-to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

7.0. PROGRAM LOAN REPAYMENT (HOME RECAPTURE TERMS)
Recapture of Entire Direct Subsidy
The Program Lender recaptures the entire amount of the direct HOME subsidy provided to the homebuyer, plus any interest due according to the terms of the HOME Promissory Note, before the homebuyer receives a return. The recapture amount is limited to the net proceeds available from the sale or foreclosure.

In cases where there is appreciation, (see definition of Appreciation), the homebuyer would retain any net proceeds exceeding the direct HOME assistance plus interest due that is recaptured.

In some cases, such as in declining housing markets, net proceeds available at the time of sale may be insufficient to recapture the entire direct HOME subsidy plus interest due provided to the homebuyer. Since the HOME Final Rule limits recapture to available net proceeds, the Program Lender can recapture only what is available from net proceeds. In a scenario where recapture provisions state that the entire direct HOME subsidy plus interest will be recaptured, and there are insufficient net proceeds available at sale, the Program Lender is not required to repay to the Department, and the Department is not required to pay back to HUD the difference between the total direct HOME subsidy and the amount available for recapture from net proceeds.

Example: A homebuyer receives $10,000 of HOME
down payment assistance to purchase a home. The
direct HOME subsidy to the homebuyer is $10,000,
which results in a five-year Period of Affordability. If the homebuyer sells the home after three years, the
grantee or state would recapture, assuming that there are sufficient net proceeds, the entire $10,000 direct HOME subsidy plus any interest due according to the terms of the HOME Promissory Note. The homebuyer would
receive any net proceeds in excess of that amount.

7.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time, without penalty. Payments will be applied to principal, thus reducing accrual of simple interest.

7.2. RECEIVING LOAN PAYMENTS
A. Voluntary Program loan payments, and loan payoffs, shall be made to:

City of Farmersville
909 W. Visalia Rd.

Farmersville, CA. 93223
B. The Sponsor shall be the receiver of loan payments or recaptured funds and will maintain a financial record-keeping system to record payments and file statements on payment City of Farmersville HOME Program First-Time Homebuyer Program Guidelines status. Payments shall be deposited and accounted for in the Sponsor's Program Income Account, as required by the HOME program. The Program lender will accept loan payments from borrowers prepaying deferred loans, and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may, at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

7.3. DUE UPON SALE OR TRANSFER
If an owner sells, transfers title, or discontinues principal residency in the purchased property during the HOME Affordability Period for any reason, the loan is immediately due and payable pursuant to the Recapture (loan repayment) terms in the HOME Loan Agreement.

Notwithstanding the foregoing, if the owner of the property dies, even after the HOME Affordability Period expires, an heir may assume the HOME loan at the same rate and terms, if the heir's household meets each of the following requirements:
• does not exceed the current HOME income limits; and
will immediately occupy the home as their principal residence.

During the HOME Affordability Period, if the property owner dies and the heir does not meet these HOME eligibility requirements, the loan is due and payable.

The loan will be in default if the borrower fails to maintain required fire or flood insurance or fails to pay property taxes. See Attachment D on loan defaults for further information on property restrictions.

7.4. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment D for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures shall be pursued

7.5. LOAN MONITORING PROCEDURES
Sponsor must monitor Borrowers and their homes annually to ensure adherence to Program requirements including, but not limited to, the following:

A. Owner-occupancy during the Period of Affordability
B. Property tax payment
C. Hazard insurance coverage
D. Good standing on Primary loans

8.0. PROGRAM LOAN UNDERWRITING AND APPROVAL
A. Loan Underwriting
All homebuyers or their representatives shall receive an eligibility packet with all the necessary forms, disclosures, information, and application. The homebuyer must submit a complete application packet with all the Sponsor's Program loan documents executed, as well as all the information from the primary lender. The primary lender shall submit City of Farmersville HOME Program First-Time Homebuyer Program Guidelines copies of the following to the Sponsor: 1) fully-executed property sales contract with proper seller notification; 2) mortgage application with good faith estimates and first mortgage disclosures; 3) full mortgage credit report and rent verification; 4) current third- party income verifications and verifications of assets; 5) homeownership education certificate, if applicable; and 6) signed underwriting transmittal summary and final signed loan application, both from primary lender. Staff will work with local lenders to ensure qualified participants receive only the benefit from the Sponsor's Program needed to purchase the housing unit and that leveraged funds will be used when possible.

B. Creditworthiness
Qualifying ratios are only a rough guideline in determining a potential borrower's creditworthiness. Many factors such as credit history, amount of down payment, and size of loan will influence the decision of the primary lender to approve or disapprove a particular loan. The borrower's credit history will be reviewed by the Sponsor and documentation of such maintained in the loan file. The Sponsor may elect to obtain a credit report or rely on a current copy obtained by the primary lender. The Sponsor must use the information on the credit report for each adult borrower for its calculations of front-end and back-end debt-to-income ratios.

C. Documents from Primary Lender
After initial review of the qualified homebuyer's application packet, the Program Operator will request any additional documents needed. Documents may be e-mailed or faxed. Based on receipt and review of the final documents, the Program Operator will complete, sign, and date an income certification (using the most-recent HCD program's guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability shall then be verified, and a subsidy amount will be determined by the Program Operator.

D. Disclosure of Program and Loan Information to Homebuyers The Program will inform the borrower of the results of the income determination process, including the permissible range of primary mortgage payments and the maximum purchase price possible. Information on the Program's application will be documented with third-party verifications and/or documents in the file. For example, the sales contact will provide the final purchase price and outline how much of the closing costs are to be paid by the seller, etc. The appraisal, termite, and title reports provide information to substantiate the information in the sales contract and guide the construction inspection.

The Program loan application provides current debt and housing information and will be documented by the credit report and income/asset verifications. The primary lender's approval letter and estimated closing cost statement should reflect all the information in the loan package and show any contingencies of loan funding. Reviewing the primary lender's loan underwriting documentation will provide basic information about the qualification of the applicant and substantiate the affordability provided by the Program loan. By reviewing and cross-checking all the primary lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN Once the loan approval package has been completed, the Program Operator will submit it to the Sponsor for approval. • Sponsor will review the request and may approve it with or without City of Farmersville HOME Program First-Time Homebuyer Program Guidelines conditions. Upon approval, a final closing date for escrow is set, and Program funds are provided to the homebuyer.

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
The homebuyer(s) sign promissory notes, loan agreements, deeds of trust, and statutory lending notices (Truth In Lending (TIL), etc.); the Deeds of Trust are recorded with the County Clerk/Recorder at the same time, and the requests) for a copy of Notice of Default are also recorded with the County Clerk/Recorder.

8.3. ESCROW PROCEDURES
The escrow/title company shall review the escrow instructions provided by the Program Lender and shall issue California Land Title Association (CLTA) and American Land Title Association (ALTA) policies to the homebuyer and the Program Lender after closing. The CLTA policy is issued to the homebuyer and protects them against failure of title based on public records and against such unrecorded risks as forgery of a deed. The ALTA policy is issued to each lender providing additional coverage for the physical aspects of the property, as well as the homebuyer's title failure. These aspects include anything which can be determined only through physical inspection, such as correct survey lines, encroachments, mechanics liens, mining claims, and water rights. The Program Lender instructs the escrow/title company in the escrow instructions what may show on the policy, the amount of insurance on the policy (all liens should be covered), and the loss payee (each lender should be listed as a loss payee and receive an original ALTA policy).

9.0. SUBORDINATE FINANCING
Subordinate loans may be used to cover mortgage subsidy costs that exceed the Program maximum loan amount. All subordinate liens must have the payments deferred, and the term must be for at least as long as the term of the Program loan.

10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES
The Sponsor may make amendments to these Participation Guidelines. Any changes shall be made in accordance with regulations and approved by the Sponsor's HOME Program Representative or Program Manager. If internally required, the Sponsor's Loan Committee and/or governing body would then need to approve said changes.

10.1. DEFINITION OF EXCEPTION
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its agent may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor's recommended course of action and any written or verbal information supplied by the applicant.

B. The Sponsor shall make a determination regarding the exception request based on the recommendation of the Program Operator. The request can be presented to the Sponsor's loan committee and/or governing body for a decision.

C. Note: such exceptions may not directly or indirectly discriminate against protected classes under all current federal fair housing law and state statutes and regulations.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
Any applicant denied assistance from the Program has the right to appeal. Complaints concerning the Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal must be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Loan Review Committee. Their written response Will be made within thirty (30) working days. If the applicant is not satisfied with the Committee's decision, a request for an appeal may be filed with the Sponsor's governing body.

Final appeal must be filed in writing with HCD within one year after denial.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT A
Income Inclusions and Exclusions
The Program Operator shall access the current federal income determination regulations online at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/subject-group- ECFR174c6349abd095d/section-5.60g,regarding income inclusions and exclusions.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT B
Asset Inclusions and Exclusions
The Program Operator shall access the current federal income determination regulations at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/section-5.603 regarding the definition of Net family assets, to which the regulations at section 5.609 refer.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT C
HOME HOMEOWNERSHIP VALUE LIMITS FOR TULARE COUNTY*
(Limits effective 9/1/2024)

EXISTING NEW CONSTRUCTION
CONSTRUCTION (less than 12 months old)
$371,000 $392,000
[Note from HOME to remove: if you have exception limits approved by HOME, modify this table as needed and indicate from/through date of the exception]

HOME MAXIMUM PER-UNIT SUBSIDY LIMITS FOR CALIFORNIA
(Limits effective 2/13/2024)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$181,488 $208,049 $252,994 $327,293 $359,263
HOME INCOME LIMITS FOR TULARE COUNTY*
(Limits effective 6/1/2025)
Number of Persons in Household
1 7 8
80% $52,600 $60,100 $67,600 $75,100 $81,150 $87,150 $93,150 $99,150 of
AMI
*Sponsor will insert these limits for the county in which the Program is located and will update the limits annually as HCD provides new information. The link to the official, HCD- maintained Value, Subsidy, and income limits is: State and Federal Income, Rent, and Loan/Value Limits | California Department of Housing and Community Development (for HOME limits, choose "CDBG, HOME and NHTF/HHC Article I - Income, Value, Subsidy and Rent Limits").

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT D

LOAN SERVICING POLICIES AND PROCEDURES

FOR CITY OF FARMERSVILLE
The policies and procedures are broken down into the following areas: 1) making required monthly payments or voluntary payments on a loan's principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications; 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; and 7) processing of foreclosure in case of default on the loan.

1. Loan Repayments:

Promissory Notes are for deferred payment loans, but the Lender must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.

Program loan payments, and loan payoffs, shall be made to:

City of Farmersville
909 W. Visalia Rd.

Farmersville, CA. 93223

2. Payment of Property Taxes and Insurance:

As part of keeping the loan from going into default, borrower must maintain property insurance coverage naming the Lender as loss payee.

If a property is located in a 100-year floodplain, the Borrower will be required to obtain flood insurance.

A certificate of insurance for both flood and standard property insurance, with an endorsement naming the City of Farmersville/County of XX as "Lender" and listing them as the lender loss payee, will be required at the close of escrow. The Lender will verify the insurance coverage annually.

Property taxes must be kept current during the term of the loan. The Lender requires Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.

3. Required Request for Notice of Default:

When the Borrower's loan is in second position behind an existing first mortgage, it is the Lender's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Lender's loan. This document requires any senior lienholder listed in the notice to notify the Lender of initiation of a foreclosure action. The Lender will then contact the Borrower and assist them in bringing the first loan current, if possible. The Lender can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Lender is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

4. Annual Occupancy Restrictions and Certifications:

On owner-occupant loans, the Lender will require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. Annual occupancy verification will occur between January 1 and 15 of each year for the term of the loant.

5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

In all cases where there is a change in title, occupancy, and/or use, the Borrower must notify the Lender in writing of the change.

If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan, provided the heir is income eligible. If the heir intends to occupy the property and is not low-income, the balance of the loan is due and payable.

If the owner moves out and converts the owner-occupied unit into a rental unit before the end of the HOME Affordability Period, the loan is due in full, unless the owner moves back in immediately.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Lender allow for a partial conversion where some of the residence is used for a business, but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.

6. Requests for Subordinations:

When a Borrower wishes to refinance their existing first mortgage, they must submit a subordination request to the Program Lender. Approved refinancing of senior debt will be limited by the Department to circumstances in which the original homebuyer is securing more favorable terms that reduce monthly housing costs, or if sufficient equity exists, to take cash out for only items such as for immediate repairs to the property to correct identified health and safety violations.

There can be no third-party debt payoffs or additional encumbrances on the property. The total indebtedness on the property should not exceed the current market value, except when the borrower is obtaining a federally-sponsored refinance program loan. If said loan is approved and meets all other requirements, Combined Loan-To-Value will not be considered when reviewing the subordination request.

Also, the loan must:
be fully amortized and have a fixed interest rate that does not exceed the current market rate, as established by an index identified in these Program Guidelines; 2 not have a temporary interest rate buy-down;

3. have a term "all due and payable" that matures prior to or concurrently with the maturity date of the Promissory Note. Therefore, the maturity date of the existing Promissory Note shall be modified to coincide with the maturity date of the new first mortgage; and

4. not have a balloon payment due before the maturity date of the Program loan.

Upon receiving the proper documentation from the refinance lender, the request will be considered by the Sponsor's loan committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

7. Process for Loan Foreclosure:

Upon any condition of loan default, such as non-payment, lack of insurance or property tax payment, change in title or use without approval, or default on senior loans, the Lender will send out a letter to the Borrower notifying them of the default status. If the default status continues, the Lender may start the formal process of foreclosure.

When a senior lienholder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges, and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. HOME funds may not be used for this purpose.

If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructuring the debt such that the unit is made affordable to the Borrower. If the Lender does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. If there is sufficient value in the property, then the Lender can afford to pay for the foreclosure process, pay off the senior lienholder, and retain some or all of its investment.

If the Lender decides to reinstate, the senior lienholder will accept the amount to reinstate the loan until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Lender fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder will then require a full payoff of the balance, plus related foreclosure administrative costs, to cancel foreclosure. If the Lender determines the reinstatement and maintenance of the property is not cost effective and allows the senior lienholder to complete foreclosure, the Lender's lien may be released . once net available proceeds are received, if any.

Lender as Senior Lienholder
When the Lender is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure. Lender's staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured, and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Lender? 3) Can the Borrower sell the property and pay off the Lender? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, City of Farmersville HOME Program First-Time Homebuyer Program Guidelines (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

At the end of thirty calendar days, the Lender should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Lender of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Lender informed of the progress of the foreclosure proceedings. hen the process is completed, and the property has ":

We le the process the home, and the pes peder a revered to the ben rusy at tan fredasurela property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income eligible uses.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT E

SELLER'S LEAD-BASED PAINT DISCLOSURE
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller's Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).
(ii). Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
(b) Records and reports available to the seller (check (i) or (ii) below):
(i). _ Seller has provided the purchaser with all available records and reports pertaining to Lead-based paint and/or lead-based paint hazards in the housing (list documents below). (ii) Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Purchaser's Acknowledgment (initial)
(C)_ _Purchaser has received copies of all information listed above. (d). Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e). Purchaser has received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or Agent's Acknowledgment (initial)
(f)_ Agent has informed the seller of the seller's obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.

Seller Date Seller Date
Purchaser Date Purchaser Date
Agent Date Agent Date
City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT F
Disclosure to Seller with Voluntary, Arm's Length Purchase Offer

DECLARATION
This is to inform you that would like to purchase the property, located at _ if a satisfactory agreement can be reached. We are prepared to pay for a clear title to the property under conditions described in the attached proposed contract of sale.

Because Federal funds may be used in the purchase, however, we are required to disclose to you the following information:

1. The sale is voluntary. If you do not wish to sell, the buyer, _ thru will not acquire your property. The buyer does
enihave drain ar of een doonso to acquire your property by condemnation i not eminent domain) and the agency/Sponsor
use the power of eminent domain to acquire the property.

2. The estimated fair market value of the property is $ and was estimated by to be finally determined by a
professional appraiser prior to close of escrow.

Since the purchase would be a voluntary, arm's-length transaction, you would not be eligible for relocation payments or other relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), or any other law or regulation. Also, as indicated in the contract of sale, this offer is made on the condition that no tenant will be permitted to occupy the property before the sale is completed.

Again, please understand that if you do not wish to sell your property, we will take no further action to acquire it. If you are willing to sell the property under the conditions described in the attached contract of sale, please sign the contract, and return it to us at:
- If you have any questions about
this matter, please contact at
Sincerely,
Title
Buyer Date
Buyer Date
Form continues on next page with Seller's Acknowledgment City of Farmersile HOME Program First-Time Homebuyer Program Guidelines Disclosure to Seller with Voluntary, Arm's Length Purchase Offer (Page 2) Acknowledgement
As the Seller I/we understand that will inspect the property for health and safety deficiencies. I/we also understand that public funds may be involved in this transaction and, as such, it the property was built before 1978, a lead-based paint disclosure must be signed by both the buyer and seller, and that a Visual Assessment will be conducted to determine the presence of deteriorated paint.

As the Seller, I/we understand that the property must meet one of the following conditions at the time of submitting the purchase offer: it must be currently owner-occupied, vacant for at least three months, newly constructed (never occupied), or being purchased by the current renter. I/we hereby certify that the property is:
• Vacant at least 3 months; • Owner-occupied; • New; or • Being Purchased by its Occupant I/we hereby certify that I have read and understand this "Declaration" and:

D a copy of said Notice was given to me prior to the offer to purchase.

If received after presentation of the purchase offer, I/We choose:

Oto withdraw, or Onot to withdraw, from the Purchase Agreement. -
Seller Date
-
Seller Date
City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT G

CITY OF FARMERSVILLE

INSTRUCTIONS TO HOMEBUYER

1. Homeownership can be a complicated process for first time homebuyers, to help navigate you and prepare you for homeownership, we recommend you first contact the Program Operator's Homebuyer Counseling and Education (Gateway) Department at 559-651-1000.

2. You should then contact the Program Operator's First-Time Homebuyer Loan Processor at 559- 802-1640 to verify funding availability and program information. If funds are available, you can move directly into the workload. If funds are not available you will be sent a pre-application to complete, sign and return to then be added to a waiting list for future funding.

3. Once funds are available and your name comes to the top of the waiting list, you will then be able to select a primary lender (Mortgage Company, Bank or Credit Union) of your choice to determine financing eligibility. Upon successful prequalification with a primary lender, your primary lender will submit a complete loan application package to Program Operator for review.

This package must be submitted along with a completed Submission Form/Lender Cover Letter and Application, provided by the Program Operator via the Program Operator's website. Items to be included are proof of income, credit report and household size.

4. During the financing and Program eligibility review by Program Operator, household size, income, and Sponsor loan amount are determined. Prior to issuance of the prequalification letter the family, the following must occur:
a. Application package must be reviewed and signed by Program Operator b. Application package must be reviewed and signed by Sponsor Upon completion by all parties, Program Operator will issue a prequalification letter to the applicant and the primary lender on behalf of the Sponsor. Program Operator will contact or meet with qualified applicant to provide information relative to Program requirements and the lending process. In addition, Program Operator will issue a condition list to both parties requesting final and additional income and asset documentation, including verification of employment and all income sources.

5. Applicant works with Licensed Real Estate broker to find an eligible property. Properties are subject to the following requirements:
a. Properties must be located within the Sponsor's eligible area (Program Operator will verify)
b. Properties must meet maximum sales price limits, as applicable c. Properties must be Vacant at least 3 months; • Owner-occupied; • New; or • Being Purchased by its Occupant
Primary lender will submit accepted purchase agreement to Program Operator for review.

6. Applicant will work with primary lender to provide Program Operator all terms on the conditions list. The items include, but are not limited to:
a. Income documentation (3 months paystubs, 3 years tax returns and W-2's, child support, verification of employment, verification of rent, etc.) b. Credit Report
City of Farmersville HOME Program First-Time Homebuyer Program Guidelines c. Asset documents (6 months bank statements, 401K, etc.) d. Property information (appraisal with photos, preliminary title report, home inspection, termite report and clearance, etc.)
e. Real Estate Sales Contract (contingent upon receiving Program loan approval) f. Residential loan application
g. Lead Base Paint Disclosure/Disclosure statement

7. A certified housing inspector, or a Sponsor representative will document health & safety and code compliance as well as conduct Lead-Based Paint Inspections. Seller must correct all deficiencies prior to the close of escrow.

8. Upon receipt of all conditions, Program Operator will prepare participant file for final loan approval with Sponsor. The primary lender should request the date of loan approval one week prior to the date of anticipated loan signing. At loan approval, Program Operator will present the application to Sponsor for review. Following loan approval, Program Operator will give loan documents to Sponsor for signatures. Loan documents are then forwarded to escrow company to coordinate loan signing.

9. Signed documents are returned to Program Operator for review. Upon review and confirmation of all conditions of final funding, Program Operator will wire funds to escrow.

10. Once loan is funded and recorded, escrow company provides a copy of all documents to Program Operator. Program Operator then closes out the loan file.

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT H

LEAD-BASED PAINT

VISUAL ASSESSMENT, NOTICE OF PRESUMPTION, AND HAZARD REDUCTION FORM Section 1: Background Information
Property Address: No LBP found or LBP exempt o
Select one: Visual Assessment o Presumption O Hazard Reduction o Section 2: Visual Assessment. Fill out Sections 1, 2, and 6. If paint stabilization is performed, also fill out Sections 4 and 5 after the work is completed.

Visual Assessment Date: Report Date:

Check if no deteriorated paint found o
Attachment A: Summary where deteriorated paint was found.

Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.

Date of Presumption Notice:

Lead-based paint is presumed to be present o and/or Lead-based paint hazards are presumed to be present o Attachment B: Summary of Presumption:

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and 6.

Provide to occupant w/in 15 days of after work completed Date of Hazard Reduction Notice:

Initial Hazard Reduction Notice? Yes o Noo Start & Completion Dates:

If "No", dates of previous Hazard Reduction Activity Notices:

Attachment C: Activity locations and types.

Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces, or areas where activities were conducted.

Attachment E: Attach clearance reports), using DHS form 8552 (and 8551 for abatement activities) Section 5: Resident Receipt of Notice for Presumption or Lead-Based Paint Hazard Reduction Activity Printed Name: Signature: Date:

Section 6: Contact Information Organization:

Contact Name: Contact Signature:

Date: Address: Phone:

City of Farmersville HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENTI
Homebuyer Program Lead Compliance Document Checklist
The following documents should be in each Homebuyer unit file to document compliance with the lead requirements:

Document Name Purpose
Lead Safe Housing Rule Screening Sheet Documents exemptions Physical inspection form (HQS or equivalent) Documents visual assessment results
Seller Certification Seller certifies that
paint was stabilized by
ualified workers an
at safe work practice
Clearance Report and Clearance Review Worksheet
Lead-Based Paint and/or Lead-Based Paint Hazards
Disclosure Form DOC 12345.PDF (hud.gov)
Lead Hazard Reduction Notice LSHR-Sample-Notice-of-
Lead-Hazard-Reduction.pdf (hudexchange.info)
notification.

This was taken from the HUD Website at:
http://portal.hud.gov/hudportal/documents/huddoc?id=20264_leadcompliance.doc City of Farmersville HOME Program First-Time Homebuyer Program Guidelines DO NOT DESTROY THIS NOTE: When paid, this Note and the Deed of Trust must be surrendered to the Trustee, listed below, with request for reconveyance.

PROMISSORY NOTE SECURED BY DEED OF TRUST
Deferred Payment Loan - Owner Occupant
LOAN HBL#LOAN #; LOAN $
CITY/COUNTY, California, DATE
FOR VALUE RECEIVED BORROWER(S) (hereinafter called "Trustor(s)", jointly and severally promises) to pay to the CITY/COUNTY, the sum of LOAN S. At no time will interest be charged.

The restrictions will automatically terminate if the Title to the mortgaged property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the mortgage is assigned to the Secretary of Housing and Urban Development.

The loan shall be at zero percent interest.

The Program's loan term shall be [THE TERM OF PRIMARY LOAN PLUS 15 YEARS] years. The interest rate shall be 0%. All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, unless allowed by statute.

Principal Residence Requirement: During the Affordability Period, barring a sale or transfer of title to the Property which shall be governed by Section 6, Affordability Period of the First-Time Homebuyer Written Agreement, the Trustor shall at all times maintain the Property as their principal residence. Should the Trustor cease to maintain the Property as their principal residence, rent the residence to another party, or convert the Property to a non-residential use, the Trustor will be in breach and subject to the Default and Enforcement provisions under Section 13 of the First-Time Homebuyer Written Agreement.

Failure of the Lender to formally declare or act upon such default shall not constitute a waiver. Demand, protest and notice of demand and protest are hereby waived.

The undersigned reserves) the right to prepay at any time all or any part of this Note without the payment of penalties or premiums to the Lender. Any and all payments on this Note shall be applied to the principal due on the Note.

The Trustor shall abide by all covenants contained in the First-Time Homebuyer Written Agreement. In the event of any inconsistencies between this Note and the First-Time Homebuyer Written Agreement, the latter Should suit be commenced to collect payments due under this Note or any portion thereof, the prevailing party may recover reasonable attorney's fees in addition to any other relief allowed by law. This Note is secured by a certain DEED OF TRUST to the TITLE COMPANY, a California Corporation, as TRUSTEE.

IN WITNESS WHEREOF, the Note has been duly executed by the undersigned, as of this date.

Trustor -BORROWER Trustor- CO-BORROWER
RECORDING REQUESTED BY:

CITY/COUNTY
AND WHEN RECORDED MAIL TO:

SELF-HELP ENTERPRISES
ATTN: HOMEBUYER PROGRAM
P.O. BOX 6520
VISALIA CA 93290

SPACE ABOVE THIS LINE FOR RECORDER USE

THIS DOCUMENT IS RECORDED SOLELY FOR THE PURPOSE OF CITY/COUNTY WITHOUT FEE PURSUANT TO SECTION 6103 OF THE GOVERNMENTAL CODE.

REQUEST FOR NOTICE
In accordance with section 2924b, Civil Code, request is hereby made that a copy of any notice of Default and a copy of any notice of sale under the deed of trust (or mortgage) recorded → (or filed for record with recorder's serial number > of official records of County of, California, executed by BORROWER(S) as trustor (or mortgagor) in which PRIMARY LENDER is named as beneficiary (or mortgagee) and TITLE COMPANY as trustee to be mailed to:

Self-Help Enterprises
P.O. Box 6520
Visalia, CA 93290
NOTICE: A copy of any notice of default and of any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded.

CITY/COUNTY
by:_
Date CITY/COUNTY SIGNER
"A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document."

STATE OF CALIFORNIA

COUNTY OF XX
On _ 2024 before me, Notary Public, personally appeared BORROWER(S), who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the forgoing paragraph is true and correct.

FOR NOTARY STAMP OR SEAL
WITNESS my hand and official seal.

Notary Public,
RECORDING REQUESTED BY:

CITY/COUNTY
AND WHEN RECORDED MAIL TO:

SELF-HELP ENTERPRISES
ATTN: HOMEBUYER PROGRAM
P.O. BOX 6520
VISALIA CA 93290

SPACE ABOVE THIS LINE FOR RECORDER

THIS DOCUMENT IS RECORDED SOLELY FOR THE PURPOSE OF THE CITY/COUNTY WITHOUT FEE PURSUANT TO SECTION 6103 OF THE GOVERNMENTAL CODE.

SHORT FORM DEED OF TRUST
Adopting and including by reference certain provisions of a deed of trust recorded in the counties named herein.

THIS DEED OF TRUST, made on DATE, between BORROWER(S) as TRUSTOR, whose address is PROPERTY, CA, California; and TITLE COMPANY, California, as TRUSTEE and the CITY/COUNTY as BENEFICIARY, this Deed of Trust being junior and subordinate to a new Deed of Trust in favor of PRIMARY LENDER in the amount of $. and any deed of trust in the name of or held by the California Housing Finance Agency, its successors and assigns, which was recorded concurrently herewith; WITNESSETH: That Trustor grants, transfers or assigns to Trustee in Trust, that property in the County of COUNTY, State of California, described as:

LEGAL DESCRIPTION
The restrictions will automatically terminate if the Title to the mortgaged property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the mortgage is assigned to the Secretary of Housing and Urban Development.

If the Trustor shall sell, convey or alienate said property or any part thereof, or any interest therein, or shall be divested of this title or any interest therein in any manner or way, whether voluntarily or involuntarily, without the written consent of the Beneficiary being first had and obtained, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby, immediately due and payable.

FOR THE PURPOSE of securing performance and payment of the sum of LOAN $ and of the monies that may be paid or advanced by or may otherwise be owing to the Trustee or the Beneficiary under this instrument, and also such additional monies as may be hereafter borrowed by the Trustor, or any of them, from the Beneficiary, and also the payment of all other monies and indebtedness now owing or to become owing, from the Trustor, or any of them, to the Beneficiary, according to the terms of the Promissory Notes, payable to Beneficiary on order and made by Trustor.

Said Promissory Note and First-Time Homebuyer Written Agreement, of even date herewith made by Trustor, delineated the Terms and Conditions of this Loan requiring security of this document. Demand is subject to change of title by any means.

Principal Residence Requirement: During the Affordability Period, barring a sale or transfer of title to the Property which shall be governed by Section 6, Affordability Period of the First-Time Homebuyer Written Agreement, the Trustor shall at all times maintain the Property as their principal residence. Should the Trustor cease to maintain the Property as their principal residence, rent the residence to another party, or convert the Property to a non- residential use, the Trustor will be in breach and subject to the Default and Enforcement provisions under Section 13 of the First-Time Homebuyer Written Agreement.

Privilege is reserved to prepay at any time all or any part of the debt secured hereby without the payment of penalties or premiums. By executing and delivering this Deed of Trust, and the Note secured hereby, the parties agree that all provisions of that Promissory Note between BORROWER(2) and the CITY/COUNTY, dated DATE and the First-Time Homebuyer Written Agreement between BORROWER(S) as borrowers) and the CITY/COUNTY, as Lender, dated DATE, and that portion of the Fictitious Deed of Trust hereinafter referred to commencing with paragraph 1 and ending with paragraph 31 thereof are hereby incorporated herein and made an integral part hereof for all purposes the same as if set forth herein at length. The Fictitious Deed of Trust above referred to was recorded as follows:

COUNTY DATE BOOK PAGE
Kings December 6, 1983 1284 68
Madera January 13, 1984 1738 538
Merced December 2, 1985 2514 359
Stanislaus July 8, 1986 127 reel 1256 image
Tulare September 19, 1983 4111 913
Kern July 23, 1992 6704 867
Fresno March 17, 1997 Instrument No. 97035016
Signature of Trustors)

BORROWER CO-BORROWER
"A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truhfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA

COUNTY OF SS
•
_ 2024 before me.
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the capaci (es, and tad by khsoneredit signatures one he isty me tied person, or hi enth por behalf ed which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the forgoing paragraph is true and correct.

WITNESS my hand and official seal. FOR NOTARY STAMP OR SEAL Notary Public

FEDERAL TRUTH - IN - LENDING DISCLOSURE STATEMENT

DEFERRED PAYMENT LOAN
Lender: CITY/COUNTY Loan #LOAN#
Borrower: BORROWER(S)
Property Address: PROPERTY ADDRESS, CA
Annual Fixed Rate - The Program's loan term, shall be 45 years. The interest rate shall be 0%. All Program he priyany loan. Loan pried beal not be forgiven, wies all their by sayment ability fully utilized unde Finance Charge: The dollar amount the credit will cost you. $0.00 Amount Financed: The amount of credit provided to you on $0.00 your behalf as of loan closing.

Total of Financing: The amount you will have paid after you $0.00 have remitted the lump sum payment.

Security Interest: You are giving a security interest in PROPERTY ADDRESS, CA.

Prepayment: If you pay off your loan early, you will not have to pay a penalty.

Insurance: Credit life, accident, health or loss of income insurance is not required in connection with this loan. This loan transaction requires fire and flood (if applicable) insurance.

If you fail to maintain the required insurance, such failure shall be considered a condition of default, whereby Lender may require immediate and full repayment of Assumption: Loans are assumable, subject to the assumability of the primary loan, if the household assuming the loan meets Program eligibility requirements and the assumption is approved by Self-Help Enterprises.

Default: In the event of default, the recording of a "Notice of Default" with the County Recorder shall constitute a foreclosure upon this property. Borrower will be responsible for attorney's fees and all costs of collection in the event of default.

There will be no filing or recording fees for any documents in connection with your loan. "The undersigned hereby acknowledges receiving and reading a completed copy of this disclosure along with copies of the documents provided. The delivery and signing of this disclosure do not constitute an obligation on the part of the lender to make or the borrower(s) to accept the loan as identified." BORROWER Date CO-BORROWER Date

CITY/COUNTY
Self-Help Enterprises

FAIR LENDING NOTICE
To: All applicants for financial assistance for the purchase, construction, rehabilitation, improvement or refinancing of one-to-four family residences
It is unlawful, under the Housing Financial Discrimination Act of 1977, for a public agency to consider any of the following in determining whether or not, or under what terms and conditions to provide or arrange for financial assistance:

1. Neighborhood characteristics (such as the average age of the homes or the income level in the neighborhood), except to a limited extent necessary to avoid an unsafe and unsound business practice.

2. Race, sex, color, religion, marital status, national origin, or ancestry.

It is also unlawful to consider, in appraising a residence, the racial, ethnic, or religious compositions of a particular neighbarhond or whether or not such a composition is undergoing change or is expected to undergo If you wish to file a complaint, or if you have questions about your rights, contact:

Comptroller of the Currency
Administrator of National Banks
Fourteenth National Bank Region
Consumer Complaint Department
Stewart Street Tower, Suite 2101
One Market Plaza
San Francisco, California 94105
I (we) have received a copy of this notice.

BORROWER Date
CO-BORROWER Date
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
NOTICE TO HOMEBUYER:

This Agreement explains the terms of the purchase assistance you are receiving through the OME Investment Partnerships Program (HOME). This Agreement is separately enforceabl rom the Note and Deed of Trust forthe Term in Section 2, unless you sell and repay the balanc ecile in Section. Read each paragraph carefully and ask questions regarding any sectior u do not fully understand before vou sian. This agreement will be enforced by loan documen as set forth in Section 1 below. You should be sure that you thoroughly understand these documents before you sign them.

DEFINITIONS
DEED OF TRUST: A Deed of Trust is a legal document used in real estate transactions to secure a loan to purchase or refinance a property. If the borrower, in this case the First- Time HOMEBUYER (FTHB), defaults on the loan or fails to comply with the terms of the Deed of Trust and this written AGREEMENT, foreclosure and sale of the property to repay the debt can be initiated by the LENDER and trustee.

HOMEBUYER: For the First-Time HOMEBUYER Program, the HOMEBUYER is a person(s) who meets the definition of a First-Time HOMEBUYER under Section 8201(m) of the State of California HOME Program Regulations, or successor policy, and who receives financial assistance in the form of downpayment assistance through the HOME program.

LENDER: Lender refers to the City or County operating the FTHB Program as a State Recipient of the Department of Housing and Community Development HOME Program and has received an award of HOME funds to operate a First-Time HOMEBUYER Program or to undertake a First-Time HOMEBUYER Project.

NET PROCEEDS: The sales price minus primary loan repayment (other than HOME funds) and any closing costs. Net proceed calculations are used to determine total amount of funds available for recapture of HOME funds at the time of sale.

PRIMARY LENDER: A lender making the first trust deed mortgage to a First-Time HOMEBUYER under the program and to which any HOME FTHB loan will be subordinate.

RECAPTURE: Recaptured funds are HOME funds which are recouped by the LENDER when a housing unit assisted by the HOME program does not comply with the obligations of this AGREEMENT, and/or where the housing unit does not continue to be the principal place of residence of the assisted homebuyer for the full Affordability Period as required by federal statute.

City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
RIDER: Your first mortgage LENDER may or may not have a Rider as part of your Mortgage. A Rider is a supplemental document that modifies or adds specific terms and conditions to the Deed of Trust. The Rider serves as an addendum to the Deed of Trust, customizing and clarifying the mortgage to accommodate specified needs and requirements of the parties involved, including local requirements of primary mortgage LENDER that are not included in the Deed of Trust. Any Rider to the First-Time Homebuyer Deed of Trust must be approved in advance, in writing by the LENDER, to be valid.

SUBORDINATION: The process of ranking home loans by priority of repayment. First- Time HOMEBUYER loans are generally in a second lien position, behind a primary lender's mortgage loan. In the event the primary mortgage is paid off, the secondary mortgage moves into first position, unless the Lender agrees to subordinate to a new primary mortgage loan.

THE AGREEMENT:

THIS AGREEMENT is entered into this XX day of MONTH, YEAR by and between the CITY OF FARMERSVILLE, a State of California municipal corporation ("the CITY") and BUYERNAME(S), (the "HOMEBUYER") and the State of California Department of Housing and Community Development HOME Program as a third-party beneficiary.

WITNESSETH
WHEREAS:

A. The CITY is a current grantee under the State of California HOME Investment Partnerships Program ("HOME" or "HOME Program") administered by the United States Department of Housing and Urban Development ("HUD") slate at Calitoria through the State of California Department of Housing and Community Development ("Department") and is authorized by the Department to provide HOMEBUYER assistance in accordance with the Department's Consolidated Plan; and
B. The HOME regulations at 24 CFR Part 92 govern the CITY's/COUNTY's implementation of the HOME Program and are made a part this Agreement; and
C. The CITY has determined that the HOMEBUYER meets the HOME Program eligibility requirements purchase the dwelling located at PROPERTYADDRESS (the "Property") at the price of $PURCHSASEPRICE (the "Purchase Price") and will assume fee simple ownership upon closing.

City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
NOW, THEREFORE, in accordance with the mutual understanding and agreements set forth herein, CITY and the HOMEBUYER agree as follows:

SECTION 1. FORM, AMOUNT, AND USE OF ASSISTANCE
The CITY will provide the HOMEBUYER an amount not to exceed $DIRECTASSISTANCETOTAL ("Loan") to assist the HOMEBUYER with a down payment, closing costs, and/or a portion of the Purchase Price of the Property, which is considered the direct HOME Assistance to the HOMEBUYER.

The Homebuyer agrees that the HOME Assistance will be used at closing as gap financing to cover closing costs and down payment towards the Purchase Price of the Property. This will reduce the total amount the HOMEBUYER will be required to borrow from a bank, credit union, or other lender in order to purchase the Property. {If signing the agreement prior to closing, the following provision can be used to clarify that the final HOME amount may change slightly.} The amount of HOME Assistance will not be final until the CITY has updated all necessary underwriting and subsidy layering requirements based on final Purchase Price and/or closing costs.

The assistance will be provided in the form of a thirty-year (30) deferred loan. At closing, the Loan will be evidenced by a promissory note executed by the HOMEBUYER in favor of CITY ("Note") and secured by a deed of trust securing the promissory note to be filed in the official real property records of the county in which the Property is located ("Deed of Trust"). The terms and duration of the Loan are specified in the Note and Deed of Trust, and the Note and Deed of Trust will be released upon repayment of the Loan under the terms set forth therein. The HOMEBUYER may, but is not required to, prepay the Loan, in whole or in part, at any time:

SECTION 2. AGREEMENT TERM
This Agreement will automatically terminate if the Homebuyer does not close and take title to the Property on or before ABSOLUTECLOSINGDEADLINE.

Otherwise, this Agreement will expire upon expiration of the Affordability Period as defined in Section 6 or satisfaction of the Deed of Trust, whichever is later.

This Agreement shall survive any prepayment of the loan and/or any release of the Deed of Trust that does not include a transfer of the Property and shall continue for the full Affordability Period, as defined in Section 6.

City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
SECTION 3. APPRAISED PROPERTY VALUE
The CITY certifies that a certified property appraiser has appraised the property that is the subject of this AGREEMENT at a value of $ENTERAPPRAISED VALUE as evidenced by appraisal dated ENTERDATE.

SECTION 4. ELIGIBLE MODEST HOUSING
The CITY has verified that the purchase price of the housing does not exceed 95 percent (95%) of the median purchase price of homes for the area, as set forth in 24 CFR Part

92.254(a) and as codified in CITY's HOME Program Guidelines and Resale and Recapture Policy.

SECTION 5. PRINCIPAL RESIDENCE REQUIREMENT
During the Affordability Period, barring a sale or transfer of title to the Property which shall be governed by Section 6 below, the HOMEBUYER shall at all times maintain the Property as their principal residence. Should the HOMEBUYER cease to maintain the Property as their principal residence, rent the residence to another party, or convert the Property to a non-residential use, the HOMBUYER will be in breach of this Agreement and subject to the Default and Enforcement provisions under Section 13.

SECTION 6. AFFORDABILITY PERIOD
The Affordability Period for the Property will begin on the date of recordation of the grant deed and deed of trust ("Completion date") of the transaction as the date of recordation of the grant deed and deed of trust ("Completion Date") and shall end five (5)/ten will provide a formal written notice to the HOMEBUYER of the Completion Date and the resulting expiration date of this Affordability Period and this Agreement. Upon issuance of such notice, this Agreement shall be deemed amended to reflect the expiration date of the Affordability Period.

If the HOMEBUYER sells or transfers ownership of the Property voluntarily or involuntarily, including via foreclosure or deed in lieu of foreclosure, the Affordability City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
Period will end upon the recapture of the full amount of the direct HOME Assistance by the CITY as described in Section 9 below.

SECTION 7. HOMEBUYER REPRESENTATIONS
By signing this Agreement, the HOMEBUYER attests to the following:
• The HOMEBUYER warrants that all information and documentation provided to the CITY is true and correct. The HOMEBUYER has fully disclosed all income and assets to the CITY and warrants that the HOMEBUYER's household or financial situation has not changed materially since the application for HOME Assistance was made. The HOMEBUYER acknowledges that any material discrepancies or misstatements may result in the HOMEBUYER's disqualification from participation in the program and shall be deemed a breach of this Agreement and the Loan, and the HOMEBUYER will be required to repay the entire HOME investment amount. • The HOMEBUYER has completed homeownership counseling as required by the CITY and will complete any post-closing counseling required by the CITY. • The Homebuyer has agreed to purchase a dwelling unit that meets HOME Program requirements, and that the dwelling unit must meet Program property standards prior to purchase.
• The HOMEBUYER understands and agrees to the requirements stated in this Agreement for the Agreement Term.

SECTION 8. HOMEBUYER RESPONSIBILITIES
The Homebuyer agrees to the following to meet the requirements of this assistance:
• The HOMEBUYER will provide at least the following buyer funds required for closing:
$XXXX in their own funds toward the purchase price and/or closing costs. • The HOMEBUYER will occupy the property as the principal residence for the Affordability Period as described in Sections 5 and 6.
• The HOMEBUYER will maintain the property, maintain hazard insurance, and pay all required taxes during the term of this Agreement as described in Section 10. • The HOMEBUYER will provide information as required by the CITY to monitor compliance with Program requirements.
• The HOMEBUYER will comply with the refinancing policy stated in Section 11. • In the event of sale of the property during the Agreement Term, the HOMEBUYER will notify the CITY and comply with Recapture requirements in Section 9.

City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
SECTION 9. RECAPTURE OF DIRECT HOME ASSISTANCE
In compliance with the HOME Rule at 24 CFR 92.254(a)(5), if the HOMEBUYER sells or The "Recapture Amount" will be determined as follows:

Recapture of Entire Direct Subsidy
The Program Lender recaptures the entire amount of the direct HOME subsidy provided to the homebuyer, plus any interest due according to the terms of the HOME Promissory Note, before the homebuyer receives a return. The recapture amount is limited to the net proceeds available from the sale or foreclosure.

In cases where there is appreciation, (see definition of Appreciation), the homebuyer would retain any net proceeds exceeding the direct HOME assistance plus interest due that is recaptured.

City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
Example: A homebuyer receives $10,000 of
HOME down payment assistance to purchase a
home. The direct HOME subsidy to the
homebuyer is $10,000, which results in a five-year
Period of Affordability. If the homebuyer sells the
recapture assuming hat here are race e
recapture
proceeds, the entire $10,000 direct HOME subsidy
plus any interest due according to the terms of the
HOME Promissory Note. The homebuyer would
receive any net proceeds in excess of that amount.

If there are no net proceeds of sale or the net proceeds are insufficient to repay the Recapture Amount, then the entire net proceeds, if any, will be recaptured and retained by CITY to satisfy both this Agreement and the Loan. The term "net proceeds" is defined as the sale price less the balance due on superior secured debt and closing costs incurred by the Homebuyer at sale or transfer. In the event the net proceeds are less than the outstanding Loan balance, the CITY reserves the right to determine whether the sales price is comparable to the sales price in an arms-length transaction for a similar unit and to evaluate the closing costs being charged to the Homebuyer to ensure they are reasonable and customary.

Net proceeds of sale in excess of the outstanding direct HOME Assistance will be retained by the HOMEBUYER.

To facilitate the expeditious administration of this Section, the HOMEBUYER shall provide notice to the CITY of any anticipated transfer of title, including but not limited to a sale or foreclosure.

If the HOMEBUYER is determined to be in violation of this Agreement, the full amount of the Loan shall be due and payable as stated in Section 13.

SECTION 10. INSURANCE AND TAXES
At all times during the term of this Agreement, the HOMEBUYER shall maintain a valid and current hazard insurance policy on the Property for the current appraised value of the Property and naming the CITY as an additional loss payee in primary coverage. Failure City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
to maintain a valid and current insurance policy will be considered a breach of this Agreement, and the CITY will have the right to secure insurance for the Property and charge such costs to the HOMEBUYER or to foreclose on its Deed of Trust, if necessary, to protect the HOME program investment. If the Property is in a 100-year floodplain, the HOMEBUYER shall maintain a current and valid flood insurance policy on the Property.

Evidence of insurance must be provided at closing of the Loan and annually thereafter upon request of the CITY.

At all times during the term of this Agreement, the HOMEBUYER shall pay property taxes and other assessments due to local taxing authorities.

SECTION 11. REFINANCING
During the Agreement Term, the HOMEBUYER will notify the CITY of the intent to refinance any loan that is senior to the HOME Deed of Trust. The CITY/COUNTY will approve subordination of the HOME debt to only a new loan in compliance with its then- current refinancing policy.

SECTION 12. CITY RESPONSIBILITIES
As a State Recipient of the HOME Participating Jurisdiction Program, the CITY is ultimately responsible to the State of California for compliance with all HOME requirements, including the ongoing enforcement of this Agreement regarding principal residency and recapture.
• The CITY has determined the HOMEBUYER to be eligible according to the HOME Program's income limits and other eligibility requirements and will review any changes to eligibility at time of closing.
• The CITY has determined the property to be eligible under the HOME Program's requirements, including Program purchase price limits, Maximum Per-Unit Subsidy Limits, and property standards.
• The CITY has completed the environmental review required by 24 CFR Part 58 and determined that the property and assistance meet federal requirements. • The CITY has determined the amount of HOMEBUYER's assistance to be reasonable and in compliance with Program requirements and its underwriting policy and may adjust the assistance based on final price, costs, and underwriting. • The CITY will provide any HOME funds required at closing. • The CITY will record the Deed of Trust and retain this Agreement and the Note for the Agreement Term.

City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
The CITY will review, monitor, or seek to confirm the HOMEBUYER's ongoing compliance with the terms of this Agreement and the Loan, including but not limitec to principal residency. The CITY will enforce the other provisions of this Agreemen • The CITY may issue notices of violation, require corrective actions, or seek performance using any and all legal remedies available.

SECTION 13. DEFAULT AND ENFORCEMENT
In the event the HOMEBUYER violates any terms of this Agreement or any other agreement between the HOMEBUYER and the CITY, the CITY shall issue a notice of violation to the HOMEBUYER. Upon receipt of such a notice, the HOMEBUYER agrees to remedy the violation within 30 days or, in the case of violations requiring longer cure periods, the CITY may allow for a period of up to 90 days to correct the violation. In such cases, the HOMEBUYER must take action to begin corrections within 30 days of the date of the CITY's notice of violation. Upon the HOMEBUYER's failure to correct the violation within the allotted time, the CITY may take additional corrective action including suing for specific performance, declaring a default in the Loan and initiating foreclosure proceedings, and seeking any other available legal remedies.

In the event of the HOMEBUYER's uncured violation of the principal residency provisions of Section 5, the HOMEBUYER will be required to repay the entire HOME investment in the Property.

SECTION 14. ONGOING ANNUAL RECERTIFICATION REQUIREMENTS CITY is responsible for ensuring that First-Time HOMEBUYERS comply with the requirements of this AGREEMENT and as codified in the loan documents. This includes the requirement that the assisted home be maintained as the principal place of residence by HOMEBUYER for the entirety of the Affordability Period. The Department requires that the CITY performs annual recertification of compliance. The Department monitors the CITY to ensure that these requirements are met. HOMEBUYER acknowledges that annual reviews will be conducted, and that the HOMEBUYER must comply with the CITY's recertification process and requirements as part of the conditions for receipt of HOME assistance and that failure to do so constitutes a breach of this AGREEMENT.

SECTION 15. MISCELLANEOUS
City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
This Agreement shall be construed and interpreted in accordance with State of California law. In the event of legal action resulting from a dispute hereunder, the parties agree that the State and federal courts of the State of California shall have jurisdiction and that the proper forum for such action shall be Tulare County, California.

None of the rights and remedies conferred upon or reserved to the CITY under this Agreement is intended to be exclusive of any other rights, and each right shall be cumulative and concurrent, and may be enforced separately, successively, or together, and may be exercised from time to time as often as may be deemed necessary by the CITY.

Each party has participated in negotiating and drafting this Agreement, so if an ambiguity or a question of interpretation arises, this Agreement is to be construed as if the parties had drafted it jointly. Any rules of construction relating to interpretation against the drafter of an agreement shall not apply to this Agreement and are expressly waived.

The paragraph headings contained herein are for convenience in reference to this Agreement and are not intended to define or to limit the scope of any provision of this Agreement. Where appropriate, all personal pronouns used herein, whether used in the masculine, feminine or neutral gender, shall include all other genders and singular nouns used herein shall include the plural and vice versa.

City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF FARMERSVILLE HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
Executed and effective as of the day and year first above written and for the purposes herein expressed, by the CITY, signing by and through its Authorized Signer, Michael Schulte, City Manager and by the HOMEBUYER(s).

DATE:

Print Name of HOMEBUYER #1 Signature of HOMEBUYER #1
Print Name of HOMEBUYER #2 Signature of HOMEBUYER #2
•
CITY of FARMERSVILLE Authorized Signer
Signature:

Print Name and Title:

All signatures must be acknowledged by a notary.

City of Farmersville HOME Program First-Time Homebuyer Written Agreement Approved by Department: 08/19/2025
CITY OF STAFF REPORT Item #: 4
2 Consent
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: City Manager
FROM: Daymon Qualls, City Manager
AGENDA TITLE: Approval of Memorandum of Understanding with Farmersville Unified School District for Student Internship Program

ACTION & RECOMMENDATION
Staff recommends that the City Council approve a Memorandum of Understanding (MOU) between the City of Farmersville and Farmersville Unified School District (FUSD) for the placement of high school students in unpaid internships with the City, and authorize the City Manager to execute the agreement.

BACKGROUND | ANALYSIS
The City of Farmersville and Farmersville Unified School District (FUSD) have collaborated on developing a student internship program to provide high school students with valuable workplace experience while assisting the City with day-to-day operations.

Through discussions with FUSD, internship opportunities were identified for students enrolled in the District's Business Pathway Program. Possible duties include answering phone calls, filing, data entry, and other administrative and organizational tasks. Additional placements may also be explored in other City departments such as Finance and Fire.

Importantly, this program supports the City Council's strategic goal of Collaboration and Partnering, identified during the July 2025 Strategic Planning Workshop. By working directly with the school district, the City is fostering meaningful partnerships that benefit both students and the community.

The proposed MOU sets forth the responsibilities of the City, FUSD, and student interns. Highlights include:
• Term: October 1, 2025 - June 30, 2026, with early termination permitted upon notice. • City Responsibilities: Provide orientation, supervision, meaningful assignments, and performance evaluations.
• FUSD Responsibilities: Provide qualified interns, ensure appropriate insurance coverage, and conduct regular oversight.
• Intern Responsibilities: Adhere to City policies, confidentiality requirements, and professional standards.
• Insurance & Liability: FUSD will maintain liability and workers' compensation insurance, naming the City as an additional insured.

This program represents a strong partnership between the City and FUSD, preparing students for future careers while supplementing City operations.

FISCAL IMPACT
There is no anticipated cost to the City for participating in this internship program. The internships are unpaid, and FUSD is responsible for providing liability and workers' compensation insurance coverage for the students.

Any future costs, should they arise, would be brought back to the City Council for consideration.

ATTACHMENTS

1. Memorandum of Understanding between the City of Farmersville and Farmersville Unified School District Reviewed Approved §23

MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding ("MOU") is made and entered into as of → 2025 by and between the City of Farmersville, a municipal corporation ("City") and Farmersville Unified School District ("FUSD"). City and FUSD may be referred to individually as the "Party", or collectively as the "Parties." This MOU describes and confirms the expectations and responsibilities of the Parties regarding the City providing unpaid internships for training education students ('Intern" or "Interns") of FUSD.

OBJECTIVE
The Parties desire to strengthen Interns' learning experience by integrating on-campus studies with closely related work experience. The City, FUSD, and Interns shall strive to ensure that the academic and work experience goals of Interns' placement with the City are achieved to the mutual benefit and satisfaction of all parties.

TERM
This MOU shall remain in effect for an initial term beginning October 1, 2025, and ending June 30, 2026, unless terminated sooner. Either Party may terminate this MOU on thirty (30) days' written notice to the other Party. Performance under this MOU shall be reviewed monthly, and the Parties may agree to additional terms after expiration of the initial term.

CITY RESPONSIBILITIES

1. The City will provide the Interns with supervised, unpaid internship experience. The City's Designated Supervisors) ("Supervisor") will hold an appropriate degree, credential, or license in the specified field, if any is required for that field, and at least three years' experience in that field. The Supervisor will provide the Interns with at least two hours of face-to-face supervision per week for the duration of the internship. nil The Supervisor will collaborate with FUSD's designee in planning, implementing, and coordinating the Interns' work-related duties.

The City will provide Interns with an orientation to the work setting upon the commencement of an Intern's internship.

4. The City will provide Interns with meaningful work assignments which, within the confines of the City's needs and timetables, will enhance and complement Interns' academic studies with FUSD.

5. The City will maintain complete records and reports on each Intern's performance and provide an evaluation to FUSD on forms FUSD shall provide.

The City may, in its sole discretion, refuse to accept as a participant in the Internship Program any FUSD student assigned to participate, and upon request of the City, FUSD shall withdraw the assignment of any FUSD student participant. 1 After the City accepts assignment of an Intern, the City may terminate an Intern's internship for good cause. "Good cause" may include, but is not limited to, failure to perform satisfactorily, refusal to follow City administrative policies, procedures, rules and regulations, or violation of any federal or state law. The City will immediately notify FUSD in writing if it terminates an Intern's internship for good cause. FUSD is responsible for informing Interns of the provisions of this section.

FUSD RESPONSIBILITIES

1. FUSD will work collaboratively with the City's staff and school site administration in the placement of Interns.

FUSD will provide qualified Interns to the City, and provide the City with appropriate personal and academic information regarding such qualified Interns.

3. FUSD will facilitate and coordinate Interns' interview process with the City.

4. FUSD will confer regularly with the City's staff and school site administration through meetings, telephone calls, and/or e-mail.

FUSD will notify appropriate City staff and school site administration if FUSD has knowledge of or suspects any professional or ethical violations by an Intern assigned to the City. The City and FUSD agree the will cooperate in any investigation concerning the reported violation.

6. FUSD will instruct Interns in state laws regarding child abuse reporting, sexual harassment, and professional conduct.

FUSD will conduct systemic and regular observations of Interns' performances with the City.

FUSD will be responsible for ensuring that Interns have appropriate insurance coverage.

INTERN RESPONSIBILITIES
Interns will comply with all applicable terms and provisions of this MOU while serving as an Intern for the City.

Interns will comply with the City's administrative policies, procedures, rules and regulations, and applicable federal and state laws and regulations while serving as an Intern.

Interns will provide services to City residents only under the direct supervision of City staff.

Interns will maintain the confidentiality of City resident information. No Intern will have access to or have the right to receive any City resident records, except to the 2 extent necessary in the regular course of assisting in providing services to City residents as part of the internship program. The discussion, transmission, or narration in any form by Interns of any individually identifiable City resident information, educational, medical, or otherwise, which is obtained in the course of the internship program is forbidden except as a necessary part of the practical internship experience.

Otherwise, Interns shall use non-identifying information only in any discussions about the internship experience with FUSD, its employees, agents or others.

STATUS OF FUSD'S STUDENTS
The Parties expressly understand and agree that all FUSD students serving as Interns with the City pursuant to this MOU are doing so for education purposes only, and Interns are not considered employees or volunteers of either the City or FUSD for any purpose, including, but not limited to, compensation for services, welfare and pension benefits, or workers' compensation insurance. It is the responsibility of FUSD to provide written notice of its student participants ot the provisions of this Section. The provisions of this Section shall survive the termination or expiration of this MOU.

LIABILITY INSURANCE & WORKERS' COMPENSATION
FUSD shall take out and maintain a policy of general liability and professional liability insurance (including personal injury with limits not less than One Million Dollars ($1,000,000.00) per loss and damage to property of others), with extended reporting period of three (3) years, covering Interns, and naming the City as an additional named insured under such insurance policy or policies.

Further, FUSD shall provide written notice that should any of the above-described policies be cancelled before the expiration thereof, notice will be delivered in accordance with the policy provisions. FUSD also agrees to maintain statutory Workers' Compensation coverage on any individuals considered as employees of FUSD and instructors working at FUSD pursuant to this MOU at all times during the course of this MOU.

FUSD shall provide certificates evidencing all coverage referred to in this Section within thirty (30) days of execution of this MOU. If the coverage is on a claims-made basis, FUSD hereby agrees that not less than thirty (30) days prior to the effective date of termination of FUSD's current insurance coverage or termination of this MOU, FUSD shall either purchase three (3) year tail coverage per claim or provide proof of continuous coverage in the above stated amounts for all claims arising out of any incident occurring prior to termination of FUSD's current coverage or prior to termination of this MOU, as applicable, and provide the City a certificate of insurance evidencing such coverage.

The City shall be named as an additional insured or covered party on the liability coverages maintained by FUSD set forth above, and such coverages shall be primary to any coverages maintained by the City. Limits of liability for each type of liability coverage shall be at least One Million Dollars ($1,000,000) per claim or per occurrence and Two Million Dollars ($2,000,000) aggregate.
3 NO WORKERS' COMPENSATION LIABILITY
The Parties agree that the City is not to assume, nor shall it assume by this MOU any liability under the California Workers' Compensation Insurance and Safety Act for, by or on behalf of any Intern or FUSD employees while they are on the premises of the City or while performing any duty whatsoever under the terms of this MOU or while going to or from any City facility.

INDEMNIFICATION
FUSD shall defend, indemnify and hold the City and its elected and appointed officials, employees and agents, harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this MOU, but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of FUSD, its elected and appointed officials, agents, or employees.

The City shall defend, indemnify and hold FUSD and its elected and appointed officials, employees and agents, harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this MOU, but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of the City, its elected and appointed officials, agents, or employees.

ADDITIONAL PROVISIONS

1. Nothing contained in this MOU shall be deemed or construed to create a joint venture, partnership, principal-agent or employment relationship between the Parties and neither Party shall have the authority to bind the other Party for any purpose.

2. This MOU and the rights and obligations of the parties shall be governed and construed by the laws of the State of California. Any lawsuit concerning or arising out of this MOU shall be venued in the Tulare County Superior Court if in state court, or the United States District Court for the Eastern District of California, if in federal court.

3. This MOU supersedes all prior and contemporaneous agreements and understandings between the Parties, both oral and written, with respect to its subject matter and constitutes the complete agreement and understanding between the Parties, unless modified in a writing executed by both Parties.

In the event of a dispute between the Parties arising from this MOU, the Parties agree to mediate the dispute before initiating litigation. The Parties agree that with regard to any dispute or claim related to this MOU, prior to the initiation of a lawsuit or other legal action, they shall and must, in good faith, submit the claim or dispute to mediation with any mutually agreeable neutral. The costs of the neutral will be split equally between the Parties. The prevailing Party shall be entitled to recovery from the losing Party the prevailing Party's reasonable expenses (fees and costs) incurred in the lawsuit or legal action as allowed by law.
4 If any provision of this MOU is determined to be invalid or unenforceable, that provision shall be amended to achieve as nearly as possible the same effect as the original provision, and the remainder of this MOU shall remain in full force and effect.

6. No delay or failure by either Party to act in the event of a breach or default hereunder shall be construed as a waiver of that or any succeeding breach or a waiver of the provision itself.

Notices required under this MOU shall be sent to the Parties by certified or registered mail, return receipt requested, postage prepaid, at the addresses set forth below:

City:

City of Farmersville
909 W Visalia Road, Farmersville, CA 93223
Daymon Qualls, City Manager
[email protected]; (559) 747-0458
FUSD:

Farmersville Unified School District
571 E Citrus Drive, Farmersville, CA 93223
Selene Medina, CTE Coordinator
[email protected]; (559) 679-6040

8. This MOU may be executed in any number of counterparts, each of which shall be an original as against any Party whose signature appears and all of which together shall constitute one and the same instrument.

Signatures follow on next page.

CITY FUSD
By: By:

Name: Daymon Qualls Name: Selene Medina
Title: City Manager Title: CTE Coordinator
ATTEST
By:

Name: Rochelle Giovani
Title: City Clerk

APPROVED AS TO FORM
By:

Name: Nicholas M. Matoian
Title: City Attorney
CITY OF Item #: 5
STAFF REPORT Consent
//IN
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: City Manager
FROM: Daymon Qualls, City Manager
AGENDA TITLE: Consideration of Temporary Street Closure Permit Fee Waiver for Fall Festival

ACTION & RECOMMENDATION
Staff recommends that the City Council waive the $190 Temporary Street Closure Permit fee for the Farmersville Fall Festival, scheduled for Saturday, October 4, 2025.

BACKGROUND | ANALYSIS
The Fall Festival is a long-standing Farmersville tradition featuring a 5K run, music, car show, kids' activities, talent show, and auction. The event attracts residents and visitors alike, fostering community engagement, civic pride, and supporting local businesses.

The Farmersville Kiwanis Club, as event sponsor, has submitted the required Events Permit Application and insurance documentation. Waiving the permit fee supports the City's commitment to cultural and economic growth and helps ensure this cherished tradition continues.

As in prior years, the City will provide in-kind support, including additional Police Department security, sanitation services, and logistical coordination from Public Works.

Approving the fee waiver reflects the City's ongoing support of local traditions, strengthens community engagement, and promotes economic activity, making it a valuable investment in Farmersville's civic and cultural life.

FISCAL IMPACT
Waiving the $190 Temporary Street Closure Permit fee results in minimal direct revenue loss. In-kind support from the Police Department, Public Works, and sanitation services will be provided within existing departmental budgets, as in previous years. The event's broader economic benefits of drawing residents and visitors who support Farmersville businesses far outweigh the modest fiscal impact.

Reviewed/Approved:

CITY OF Item #: 6
STAFF REPORT Consent
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: Finance
FROM: Anthony Loza, Finance Director
AGENDA TITLE: Adoption of Resolution 2025-047 authorizing the City Manager to execute a lease financing agreement with Municipal Finance Corporation for the acquisition of a new police patrol vehicle for the City of Farmersville

ACTION & RECOMMENDATION
Staff recommends that the City Council adopt Resolution 2025-047 authorizing the City Manager to execute a lease financing agreement with Municipal Finance Corporation for the acquisition of a new police patrol vehicle for the City of Farmersville.

BACKGROUND | ANALYSIS
The Police Department has identified the need to acquire a new patrol vehicle to maintain service levels and ensure officer's safety. The routine purchase of patrol vehicles is an approved program that the Council adopted and implemented in 2016. Under this strategy, the City purchases three new vehicles every other year to smooth costs and maintain an up-to-date fleet that remains under warranty and performs reliably, thereby reducing repair expenses and improving operational efficiency. The purchases made in Fiscal Years 2021-22 and 2023-24 are both in a three-year pay-off period, so related costs will continue to be budgeted for several years.

City staff reviewed financing options and recommend proceeding with a lease-purchase arrangement through Municipal Finance Corporation, a long-standing partner with whom the City has successfully executed several prior leases. This arrangement follows the same financing process the City has used in the past, where the financing reimburses the City for the upfront cost of the vehicle. Because vehicles that meet the Police:

Department's specifications are difficult to secure, the City opted to pay for the vehicle in advance and then seek reimbursement through financing. A similar transaction was completed on February 24, 2025. Funding for this purchase is already included in the approved budget.

This financing method provides a cost-effective means of acquiring the vehicle while preserving General Fund cash flow. The lease terms are competitive compared to other market options and allow the City to spread costs over several years without the need for a large upfront capital outlay. The accompanying Resolution 2025-047 authorizes execution of the lease and related documents, as well as other actions necessary to complete the financing.

FISCAL IMPACT
The proposed lease is for a three-year term at an interest rate of 5.20%. • Principal Amount: approximately $80,000
• Finance Charges/Costs of Issuance: approximately $3,000 • Total Payment Through Maturity: approximately $82,630.68 The vehicle was initially purchased using General Fund - Police Department account 01-411-100-5514. Lease proceeds will reimburse this account for the upfront purchase cost. Annual lease payments will be budgeted within the Police Department's existing appropriations and are not expected to significantly impact the General Fund.

ATTACHMENTS

1. Resolution 2025-047 - Authorizing the Execution and Delivery of a Lease Agreement

2. Lease Agreement with Municipal Finance Corporation
Reviewed/Approved 82
RESOLUTION NO. 2025-047

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FARMERSVILLE AUTHORIZING THE

EXECUTION AND DELIVERY OF A LEASE AGREEMENT, AND AUTHORIZING CERTAIN ACTIONS

IN CONNECTION THEREWITH
WHEREAS, the City of Farmersville (the "City") is a municipal corporation organized and existing under and pursuant to the laws of the State of California; and WHEREAS, the City desires to provide for financing in the approximate amount of $80,000.00 for the acquisition of a police vehicle (the "Property"); and
WHEREAS, Municipal Finance Corporation (the "Corporation") has proposed a cost-effective three year lease purchase financing arrangement at a 5.20% interest rate; WHEREAS, in accordance with California Government Code Section 5852.1, the City Council has obtained and disclosed in the information set forth in Exhibit A hereto; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Farmersville, California, as follows:

SECTION 1. Lease Agreement. The City Manager, Finance Director or a designee (each, an "Authorized Officer") is hereby authorized to enter into a Lease Agreement (the "Lease") with the Corporation to finance the Property, subject to approval as to form by the City Attorney.

SECTION 2. Attestations. The City Clerk or other appropriate City officer is hereby authorized and directed to attest the signature of the Authorized Officer as may be required or appropriate in connection with the execution and delivery of the Lease.

SECTION 3. Other Actions. The Authorized Officer and other officers of the City are each hereby authorized and directed, jointly and severally, to take any and all actions and to execute and deliver any and all agreements, documents and certificates which they may deem necessary or advisable in order to carry out, give effect to and comply with the terms of this Resolution. Such actions are hereby ratified, confirmed and approved.

SECTION 4. Qualified Tax-Exempt Obligations. The Lease is hereby designated as "qualified tax- exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"). The City, together with all subordinate entities of the City, do not reasonably expect to issue during the calendar year in which the Lease is issued more than $10,000,000 of obligations which it could designate as "qualified tax-exempt obligations" under Section 265(b) of the Code.

SECTION 5. Reimbursement of Prior Expenditures. The City declares its official intent to be reimbursed from the proceeds of the Lease approved hereby for a maximum principal amount of $80,000.00 of expenditures occurring no earlier than sixty days prior to the adoption of this Resolution. All reimbursed expenditures will be capital expenditures as defined in Section 1.150-1(b) of the Federal Income Tax Regulations.

SECTION 6. Effect. This Resolution shall take effect immediately upon its passage.

PASSED AND ADOPTED this 22nd day of September, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Tina Hernandez, Mayor Rochelle Giovani, City Clerk

EXHIBIT A
GOVERNMENT CODE SECTION 5852.1 DISCLOSURE
The following information consists of estimates that have been provided by the Corporation, which have been provided to the City in good faith:
(A) True interest cost of the Lease: 5.20%
(B) Finance charge of the Lease (sum of all costs of issuance and fees/charges paid to third parties): $3,000.00
(C) Net proceeds to be received (net of finance charges, reserves and capitalized interest, if any): $73,052.20
(D) Total payment amount through maturity: $82,630.68
LEASE AGREEMENT #25-003
This LEASE AGREEMENT dated as of September 23, 2025 (this "Lease") is by and between MUNICIPAL FINANCE CORPORATION, a corporation duly organized and existing under the laws of the State of California (the "Corporation") as lessor and CITY OF FARMERSVILLE, a municipal corporation duly organized and existing under the laws of the State of California (the "City") as lessee.

RECITALS:

WHEREAS, the City deems it essential for the City to acquire the property described herein for its own public purposes; and
WHEREAS, it is intended that this Lease be treated as a tax-exempt obligation of the City for federal income tax purposes;
WHEREAS, the City and the Corporation agree to mutually cooperate now and hereafter, to the extent possible, in order to sustain the intent of this Lease and the bargain of both parties hereto.

WITNESSETH:

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

SECTION 1. Lease. The Corporation hereby leases to the City, and the City hereby leases and hires from the Corporation all property (the "Property") described in Exhibit A and made a part hereof.

Hereinafter, reference to the Corporation means the Corporation and the Corporation's assigns for those rights, interests and obligations that may be assigned by the Corporation.

SECTION 2. Term. The terms and conditions of this Lease shall become effective upon the authorızed execution of this Lease by the parties hereto. The rental term of the Property leased hereunder commences and terminates on the dates specified in Exhibit B unless the term of this Lease is extended as. provided in this Section. If on the scheduled date of termination of this Lease the Rental Payments shall not for any reason, then the term of this Lease shall be extended until the date upon which all such Rental Payments shall be fully paid, except that the term of this Lease shall in no event extend beyond the date that corresponds to the end of the useful life of the Property.

SECTION 3. Representations, Covenants and Warranties of the City. The City represents, covenants and warrants to the Corporation that:
(a) The City is a municipal corporation and political subdivision, duly organized and existing under the Constitution and laws of the State of California with authority to enter into this Lease and to perform all of its obligations hereunder.
(b) The City's governing body has duly authorized the execution and delivery of this Lease and further represents and warrants that all requirements have been met and procedures followed to ensure its enforceability.
(c) The execution, delivery and performance of this Lease do not and will not result in any breach of or constitute a default under any indenture, mortgage, contract, agreement or instrument to which the City is a party by which it or its property is bound. (d) There is no pending or, to the knowledge of the City, threatened action or proceeding before any court or administrative agency which will materially adversely affect the ability of the City to perform its obligations under this Lease.
(e) The City has complied with all public bidding laws or provisions of the California Public Contract Code applicable to the acquisition of the Property leased hereunder. (1) The Property being leased is essential to the City in the performance of its governmental functions and its estimated useful life to the City exceeds the term of this Lease.

Within two hundred seventy (270) days of the end of each fiscal year of the City during the term hereof, the City shall provide the Corporation with a copy of its audited financial statements for such fiscal year.

The City shall take such action as may be necessary to include all rental payments in its annual budget and annually to appropriate an amount necessary to make such rental payments. During the term of this Lease, the City will furnish to the Corporation, if so requested, copies of each proposed budget of the City within thirty (30) days after it is filed and of each final budget of the the City within thirty (30) days after it is printed. The covenants on the part of the City shall be deemed and construed to be duties imposed by law and it shall be the duty of each and every public official of the City to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in this Lease agreed to be carried out and performed by the City.

SECTION 4. Representations, Covenants and Warranties of the Corporation. The Corporation represents, covenants and warrants to the City that:
(a) The Corporation is duly organized, validly existing and in good standing under the laws of the State of California, with full corporate power and authority to lease and own real and personal property. (b) The Corporation has full power, authority and legal right to enter into and perform its obligations under this Lease, and the execution, delivery and performance of this Lease have been duly authorized by all necessary corporate actions on the part of the Corporation and do not require any further approvals or consents.

The execution, delivery and performance of this Lease do not and will not result in any breach of or constitute a default under any indenture, mortgage, contract, agreement or instrument to which the Corporation is a party by which it or its property is bound. (d) There is no pending or, to the knowledge of the Corporation, threatened action or proceeding before any court or administrative agency which will materially adversely affect the ability of the Corporation to perform its obligations under this Lease. 2 (e) The Corporation is entering into this Lease as an arm's length commercial transaction and is not acting in the capacity of a "Municipal Advisor" as such term is defined in Section 15B of the Securities and Exchange Act of 1934, as amended, and the related final rules, or serving as a fiduciary of the City.

SECTION 5. Property Acquisition. The Corporation hereby appoints the City as its purchasing agent to acquire the Property leased hereunder and the City hereby accepts said appointment (hereinafter, the "Agency"). The Agency is limited to i) negotiation of terms, conditions and acquisition cost of acquiring the Property from suppliers and contractors (collectively, the "Supplier") selected by the City; ii) to the inspection and acceptance of the Property upon its delivery and installation; and ill) to the exercise of any rights or remedies with respect to Property warranties or guarantees. All warranties and guarantees, either express or implied, that inure to the Corporation by virtue of the Agency are hereby passed through to the City to prosecute at the City's sole discretion.

SECTION 6. Lease Proceeds. Moneys available to pay Property costs are defined as the "Lease Proceeds". Disbursement of Lease Proceeds to pay Property costs can be made either directly to the Supplier or to the City as a reimbursement of its prior expenditures for Property costs. The City shall deliver to the Corporation a disbursement authorization form along with Supplier invoices and required reconciliation documents prior to the Corporation making a disbursement to the Supplier or a reimbursement to the City.

In addition, the Corporation shall retain a documentation fee in the amount of $2,500.

SECTION 7. Rental Payments. THE CITY SHALL PAY TO THE CORPORATION RENTAL PAYMENTS (the "Rental Payments") IN THE AMOUNTS AND AT THE TIMES SET FORTH IN

EXHIBIT B, AT THE OFFICE OF THE CORPORATION OR TO SUCH OTHER PERSON OR AT

SUCH OTHER PLACE AS THE CORPORATION MAY FROM TIME TO TIME DESIGNATE IN WRITING. The City hereby authorizes the Corporation to withdraw from the Acquisition Fund on the first Rental Payment dates, the amounts necessary to make Rental Payments as set forth in Exhibit B.

Should the City fail to pay any part of the Rental Payments herein within fifteen (15) days from the due date thereof, the City shall upon the Corporation's written request, pay interest on such delinquent Rental Payment from the date said Rental Payment was due until paid at the rate of twelve percent (12%) per annum or the maximum legal rate, whatever is less. The City shall pay Rental Payments exclusively from legally available funds, in lawful money of the United States of America, to the Corporation. The obligation of the City to pay Rental Payments hereunder shall constitute a current expense of the City and shall not in any way be construed to be a debt of the City in contravention of any applicable constitutional or statutory limitations or requirements concerning the creation of indebtedness by the City, nor shall anything contained herein constitute a pledge of the general tax revenues of the City. Except as specifically provided in Section 8, the obligation of the City to pay the Rental Payments will be absolute and unconditional in all events, and will not be subject to set-off, defense, abatement, reduction, counterclaim, or recoupment for any reason whatsoever. The periodic Rental Payments paid by the City shall be conclusive as to its fair value for the possession, use and/or occupancy of the Property.

SECTION 8. Rental Abatement. Rental Payments due hereunder with respect to the Property, other than the Advance Rental Payments, shall be subject to abatement during any period in which, by reason of material damage to or destruction of the Property there is substantial interference with the use and right of possession by the City of the Property or any substantial portion thereof. For each potential incident of substantial interference, decisions to be made on i) whether or not abatement shall apply; ii) the date upon which abatement shall commence; iii) the applicable portion of Rental Payments to be abated and; iv) the concluding date of the abatement period shall all be subject to determinations by the City in concert with the provider of the insurance issued pursuant to Section 20 herein. The amount of rental abatement 3 shall be such that the Rental Payments paid by the City during the period of Property restoration do not exceed the fair rental value of the usable portions of the Property. The actual amount of Rental Payments paid by the City shall be conclusive as to its fair value. In the event of any damage or destruction to the Property, this Lease shall continue in full force and effect.

SECTION 9. Security Interest. As security for the payment of all of the City's obligations hereunder, the City hereby grants the Corporation, its successors and assigns, a security interest in the Property, its accessions and attachments thereto and replacements thereof and substitutions therefor. The City agrees to execute such additional documents, including financing statements, and authorizes the Corporation to file such financing statements, which the Corporation deems necessary or appropriate to establish, perfect and maintain the Corporation's security interest.

SECTION 10. Use. The City shall use the Property in a careful and proper manner and shall comply with and conform to all national, state, municipal, police, and other laws, ordinances, and regulations in anyway relating to the possession, use, or maintenance of the Property.

SECTION 11. Acceptance. The City shall acknowledge receipt, inspection and acceptance of the Property by executing a "Certificate of Acceptance"
SECTION 12. Corporation's Inspection. Upon forty-eight (48) hours prior notice, the Corporation shall at any and all times during normal business hours have the right to enter into and upon the City's premises where the Property is located for the purpose of inspecting the same or observing its use. the City shall give the Corporation immediate notice of any attachment or other judicial process affecting the Property.

SECTION 13. Property Selection and Ordering. The City has selected or will select the type and quantity of the Property leased hereunder. The Corporation shall not be liable for, nor shall the validity, enforceability or effectiveness of this Lease be affected by, any delay in or failure of delivery of the Property. The City acknowledges that it is solely responsible for determining the suitability of the Property for its intended use. The Corporation shall have no duty to inspect the Property. If the Property is not properly installed, does not operate as represented or warranted by the Supplier, or is unsatisfactory for any reason, the City shall make any claim on account thereof solely against the Supplier. The City hereby assumes the risks, burdens and obligations to the Supplier on account of nonacceptance of the Property and/or cancellation of this Lease and upon the occurrence of any such event, the Corporation will assign to the City, without recourse or warranty, its rights and title to the Property and any documents related thereto.

SECTION 14. Disclaimer of Warranty. THE CORPORATION NOT BEING THE

MANUFACTURER OR SUPPLIER OF THE PROPERTY NOR A DEALER IN SIMILAR PROPERTY,

HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATION, WARRANTY, OR

COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE DESIGN, DURABILITY, FITNESS

FOR USE, SUITABILITY, OR MERCHANTABILITY OF THE PROPERTY IN ANY RESPECT, AND

AS BETWEEN THE CORPORATION AND THE CITY, ALL PROPERTY SHALL BE ACCEPTED AND LEASED BY THE CITY "WHERE IS," "AS IS," AND "WITH ALL FAULTS," AND THE

CORPORATION SHALL NOT BE RESPONSIBLE FOR ANY PATENT OR LATENT DEFECTS THEREIN. THE CITY AGREES TO SETTLE DIRECTLY SUCH CLAIMS WITH THE SUPPLIER AND WILL NOT ASSERT ANY SUCH CLAIMS AGAINST THE CORPORATION. 4 SECTION 15. Alterations and Attachments. All additions and improvements that are made to the Property shall belong to and become the property of the Corporation except that separately identifiable attachments added to the Property by the City may remain the property of the City as long as (i) the attachment is paid for in full by the City and (ii) the City agrees to remove the attachment and restore the Property to substantially as good condition as when received, normal wear and tear excepted, if and when the Property may be returned to the Corporation.

SECTION 16. Relocation. The City shall provide the Corporation prior written notice of its intent to relocate the Property. The City assumes all risks of loss to the Property attendant to its movement and relocation. The Property location shall at all times be under the City's full control for its own governmental purpose.

SECTION 17. Maintenance and Repairs. The City, at its own cost and expense, shall furnish necessary labor and materials to maintain the Property in good repair, condition, and working order. The City's obligations to maintain the Property does not relieve the Supplier of its responsibility to fully perform with respect to all applicable Property warranties and guarantees.

SECTION 18. Risk of Loss; Damage; Destruction. With the exception of acts resulting from intentional misconduct or gross negligence by the Corporation, its agents and representatives, the City hereby assumes and shall bear the entire risk of loss and damage to the Property from any and every cause whatsoever. No loss or damage to the Property or any part thereof shall impair any obligation of the City under this Lease which shall continue in full force and effect, subject to Section 8 of this Lease. The City waives the benefit of Civil Code Sections 1932(2) and 1933(4) and any and all other rights to terminate this Lease by virtue of any damage or destruction to the Property.

SECTION 19. Physical Damage/Public Liability Insurance. The City shall keep the Property insured, as nearly as practicable, against risk of loss or damage from any peril covered under an "all-risk" insurance policy for not less than the replacement value thereof, and the City shall carry public liability and property damage insurance covering the Property. All said insurance shall be in form and amount and with reputable companies and shall name the Corporation as an additional insured and loss payee. The City shall pay the premiums therefore and deliver certification of said policies to the Corporation. Each insurer shall agree, by endorsement upon the policy or policies issued by it or by independent instrument furnished to the Corporation, that it will give the Corporation thirty (30) days' written notice before the policy or policies shall be altered or canceled. The proceeds of such insurance, at the option of the City, shall be applied: (a) toward the replacement, restoration, or repair of the Property, or (b) toward payment of the total remaining obligations of the City hereunder; provided, however, that the City shall be responsible for the amount by which such insurance proceeds are insufficient to satisfy the cost of option (a) or option (b) above, as applicable. Should the City replace, restore, or repair the Property as set out in option (a) above, this Lease shall continue in full force and effect. The City may self-insure up to specified limits as evidenced by a certificate of self insurance to be attached hereto in form and amount acceptable to the Corporation. Any self-insurance program in which the City is a participant shall comply with the provisions under this Lease respecting cancellation and modification and payment of losses to the Corporation as its respective interests may appear. Such self-insurance shall be maintained on a basis which is actuarially sound as established by the City's risk manager or an independent insurance consultant which determination shall be made annually.

Any deficiency shall be corrected within sixty (60) days of the City becoming aware of such deficiency.

SECTION 20. Rental Interruption Insurance. The City shall maintain or cause to be maintained at its expense and throughout the term of this Lease, insurance covering the loss of use of the Property or 5 portions thereof for an amount not less than Rental Payments payable by the City for a twelve (12) month period. This coverage shall insure against abatement of Rental Payments payable by the City that come due hereunder resulting from the City's loss of use of the Property or any substantial portion thereof and caused by any peril covered under the City's physical damage insurance policy or self-insurance program, as applicable. Such insurance may be maintained in conjunction with or separate from any other similar insurance maintained by the City. The insurance proceeds shall be payable to the Corporation in amounts proportionate to the loss of use of the Property and shall supplement the City's applicable Rental Payments, if any, during the restoration period in sufficient amount to make the Corporation whole during the period of abatement.

SECTION 21. Liens and Taxes. The City shall keep the Property free and clear of all levies, liens, and encumbrances and shall promptly pay all fees, assessments, charges, and taxes (municipal, state and federal), including personal property taxes, which may now or hereafter be imposed upon the ownership, leasing, renting, sale, possession, or use of the Property, excluding, however, all taxes on or measured by the Corporation's income.

SECTION 22. Indemnity. Subject to California law concerning contribution and enforceability of indemnifications, the City shall indemnify the Corporation against and hold the Corporation harmless from any and all claims, actions, suits, proceedings, costs, expenses, damages, and liabilities, including attorneys' fees, arising out of, connected with or resulting from the selection, possession, use, operation, or return of the Property excepting that the City shall not be required to indemnify the Corporation in the event that such liability or damages are caused by the gross negligence or intentional misconduct of the Corporation, its agents or representatives.

SECTION 23. Events of Default. The term "Event of Default", as used in this Lease, means the occurrence of any one or more of the following events: (a) the City fails to make any Rental Payment (or any other payment) within fifteen (15) days after the due date thereof or the City fails to perform or observe any other covenant, condition or agreement to be performed or observed by it hereunder and such failure to either make the payment or perform the covenant, condition or agreement is not cured within ten (10) days after written notice thereof by the Corporation; (b) the Corporation discovers that any statement, representation or warranty made. by the City in this Lease or in any document ever delivered by the City pursuant hereto or in connection herewith is false, misleading or erroneous in any material respect; (c) the City becomes insolvent, is unable to pay its debts as they become due, makes an assignment for the benefit of creditors, applies or consents to the appointment of a receiver, trustee, conservator or liquidator of the City or of all or a substantial part of its assets, or a petition for relief is filed by or against the City under federal bankruptcy, insolvency or similar laws.

SECTION 24. Remedies. Upon the occurrence of an Event of Default, the Corporation may, at its option, exercise any one or more of the following remedies: (a) by written notice to the City, request the City to (and the City agrees that it shall), at the City's expense, promptly return the Property to the Corporation freight prepaid and insured to any location in the State of California as designated by the Corporation, or the Corporation, at its option, may enter upon the premises where the Property is located and take immediate possession of and remove the same without liability to the Corporation or its agents for such entry or for damage to property or otherwise; (b) sell or lease the Property or sublease it for the account of the the City, holding the City liable for all Rental Payments and other payments due to the effective date of such selling, leasing or subleasing plus any accrued interest to the date of termination; and (c) exercise any other right, remedy or privilege which may be available to it under applicable law, including the right to (i) proceed by appropriate court action to enforce the terms of this Lease, (ii) recover damages for the 6 breach of this Lease, and (ill) rescind this Lease as to any portion of or all of the Property. No right or remedy herein conferred upon or reserved to the Corporation is exclusive of any other right or remedy herein, but each shall be cumulative of every other right or remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise, and may be enforced concurrently therewith or from time to time; provided, however, that notwithstanding any provisions to the contrary herein, the Corporation shall not under any circumstances have the right to accelerate the Rental Payments that fall due in future rental periods or otherwise declare any Rental Payments not then in default to be immediately due and payable.

SECTION 25. Non-Waiver. No covenant or condition to be performed by the City under this Lease can be waived except by the written consent of the Corporation. Forbearance or indulgence by the Corporation in any regard whatsoever shall not constitute a waiver of the covenant or condition in question.

Until performance by the City of said covenant or condition is complete, the Corporation shall be entitled to invoke any remedy available to the Corporation under this Lease or by law or in equity despite said forbearance or indulgence.

SECTION 26. Assignment and Subleasing. The City shall not (a) assign, transfer, pledge, or hypothecate this Lease, the Property, or any part thereof, or any interest therein, or (b) sublet or lend the Property or any part thereof except with the prior written consent of the Corporation which, in the case of subletting, shall not be unreasonably withheld; provided such subletting shall not affect the tax-exempt status of the interest components of the Rental Payments payable by the City hereunder. No such pledge, assignment, sublease or any other transfer shall in any event affect or reduce the obligation of the City to make the Rental Payments due hereunder. Consent to any of the foregoing acts applies only in the given instance and is not a consent to any subsequent like act by the City or any other person. The Corporation shall not assign its obligations under this Lease with the exception of its obligation to issue default notices and its obligations pursuant to Section 30. The Corporation may assign its right, title and interest in this Lease, the Rental Payments and other amounts due hereunder and the Property in whole or in part to one or more assignees or subassignees at any time, without the consent of the City. Any such assignment by the Corporation or its assigns shall comply with the requirements of Sections 5950-5955 of the California Government Code. No such assignment shall be effective as against the City unless and until the Corporation shall have filed with the City a copy of such assignment or written notice thereof. The City shall pay all Rental Payments hereunder pursuant to the direction of the Corporation or the assignee named in the most recent assignment or notice of assignment filed with the City. During this Lease term, the City shall keep a complete and accurate record of all such assignments or notices of assignment. Subject to the foregoing, this Lease inures to the benefit of, and is binding upon, the successors and assigns of the parties hereto.

SECTION 27. Ownership. The Property is and shall at all times be and remain the sole and exclusive property of the Corporation, and the City shall have no right, title, or interest therein or thereto except as expressly set forth in Sections 29 and 30. The City shall take all actions necessary to insure that legal title to the Property being acquired by the City hereunder, whether by the City or by a third party acting on behalf of the City, is vested in the Corporation.

SECTION 28. Personal Property. The Property is and shall at all times be and remain personal propeity notwithstanding that the Property or any part thereof may now be or hereafter become in any manner affixed or attached to or imbedded in, or permanently resting upon, real property or any building thereon, or attached in any manner to what is permanent by means of cement, plaster, nails, bolts, screws or otherwise.
7 SECTION 29. Purchase Option. If the City is not in default of any term, condition or payment specified hereunder, the City may exercise options to prepay this Lease and purchase not less than all of the Property in "as-is" and "where-is" condition on the specified dates and for the specified amounts set forth in Exhibit B. The purchase option price specified for a particular date is in addition to the Rental Payment due on the same date.

SECTION 30. Release of Liens. Upon the City either making all of the Rental Payments scheduled herein or making a purchase option payment, the Corporation, its successors or assigns shall cause i) legal title to the Property to be transferred to the City and ii) the release of all liens, encumbrances or security interests on the Property created pursuant to the Corporation's rights under this Lease.

SECTION 31. Tax Covenants.
(a) Generally. The City shall not take any action or permit to be taken any action within its control which would cause or which, with the passage of time if not cured would cause, the interest components of the Rental Payments to become includable in gross income for federal income tax purposes. (b) Private Activity Bond Limitation. The City shall assure that the Lease Proceeds are not so used as to cause this Lease to satisfy the private business tests of Section 141(b) of the Internal Revenue Code of 1986, as amended (the "Code"), or the private loan financing test of Section 141(c) of the Code. (c) No Arbitrage. The City will not take any action or omit to take any action which action or omission, if reasonably expected on the date of this Lease, would have caused this Lease to be an "arbitrage bond" within the meaning of Section 148(a) of the Code. (d) Federal Guarantee Prohibition. The Rental Payments are not directly guaranteed or indirectly guaranteed in whole or in part by the United States or any agency or instrumentality of the United States so as to cause the Rental Payments to be "federally guaranteed" within the meaning of Section 149(b) of the Code.
(e) Reimbursement Regulations. The Lease Proceeds used for reimbursement of prior expenditures will be made pursuant to and in compliance with Income Tax Regulations Section 1.150-2. (f Bank Qualified. The City hereby designates this Lease for purposes of paragraph (3) of Section 265(b) of the Code and represents that not more than $10,000,000 aggregate principal amount of obligations the interest on which is excludable (under Section 103(a) of the Code) from gross income for federal income tax purposes (excluding (i) private activity bonds, as defined in Section 141 of the Code, except qualified 501(c)(3) bonds as defined in Section 145 of the Code and (i) current refunding obligations to the extent the amount of the refunding obligation does not exceed the outstanding amount of the refunded obligation, including this Lease, has been or will be issued by the City, including all subordinate entities of the City, during calendar year 2025.
(g) Arbitrage Rebate. The City shall take any and all actions necessary to assure compliance with Section 148(f) of the Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to this Lease. 8 SECTION 32. Extraordinary Costs. In the case of litigation, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including attorneys' fees (which may be the allocable cost of in-house counsel), incurred by the prevailing party in exercising any of its rights or remedies hereunder or enforcing any of the terms, conditions or provisions hereof.

SECTION 33. Severability. If any provision of this Lease shall be held invalid or unenforceable by a court of competent jurisdiction, such holdings shall not invalidate or render unenforceable any other provision of this Lease, unless elimination of such provision materially alters the rights and obligations embodied in this Lease.

SECTION 34. Entire Agreement. This Lease and any agreements that specifically refer to this Lease that are duly executed by authorized agents of the parties hereto constitute the entire agreement between the Corporation and the City, and it shall not be further amended, altered, or changed except by a written agreement that is properly authorized and executed by the parties hereto.

SECTION 35. Notices. Service of all notices under this Lease shall be sufficient if given personally or mailed to the party involved at its respective address hereinafter set forth or at such address as such party may provide in writing from time to time. Any such notice mailed to such address shall be effective when deposited in the United States mail, duly addressed and with postage prepaid.

SECTION 36. Titles. The titles to the Sections of this Lease are solely for the convenience of the parties and are not an aid in the interpretation thereof.

SECTION 37. Further Assurances and Corrective Instruments. The Corporation and the City agree that they will, trom time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may be reasonably required for correcting any inadequate or incorrect description of the Property hereby leased or intended so to be or for carrying out the expressed intention of this Lease.

SECTION 38. Execution in Counterparts. This Lease may be executed in several counterparts, each of which shall be original and all of which shall constitute but one and the same instrument.

SECTION 39. Time. Time is of the essence in this Lease and each and all of its provisions.

SECTION 40. Lease Interpretation. This Lease and the rights of the parties hereunder shall be determined in accordance with the laws of the State of California.

IN WITNESS WHEREOF, the parties hereto have caused their authorized agents to execute this Lease on the dates specified below.

MUNICIPAL FINANCE CORPORATION CITY OF FARMERSVILLE
2945 Townsgate Road, Suite 200 909 W Visalia Road
Westlake Village, CA 91361 Farmersville, CA 93223
By By
Title Title
Date Date
9 EXHIBIT A

PROPERTY DESCRIPTION
- 1 Police Vehicle

EXHIBIT B

RENTAL PAYMENT SCHEDULE
Cost of Issuance: $3,000
Payments: Quarterly in arrears 3 Years 5.20%
PMT Due Date Rent TO To Purchase
# Payment Principal Interest Option
1 $6,885.89 $5,897.21 988.68 70, 154.99
2 6,885.89 5,973.88 912.01 64,181.11
6,885.89 6,051.54 834.35 58,129.57
4 6,885.89 6,130.21 755.68 51,999.36
5 6,885.89 6,209.90 675.99 45,789.46
6 6,885.89 6,290.63 595.26 39,498.83
7 6,885.89 6,372.41 513.48 33,126.42
8 6,885.89 6,455.25 430.64 26,671.17
9 6,885.89 6,539.16 346.73 20,132.01
10 6,885.89 6,624.17 261.72 13,507.84
11 6,885.89 6,710.29 175.60 6,797.55
12 6,885.89 6,797.55 88.34
TOTALS: $82,630.68 $76,052.20 $6,578.48
CITY OF Item #: 7
STAFF REPORT Consent
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: Finance
FROM: Anthony Loza, Finance Director
AGENDA TITLE: Adoption of Resolution 2025-048 Authorizing a Budget Amendment and Appropriation/ Transfer - Fire Department Patrol Vehicle

ACTION & RECOMMENDATION
Staff recommends that the City Council adopt Resolution 2025-048 to:

1. Move the cost of the new Fire Department patrol/command vehicle from the General Administration budget (01-1100) to the Fire Department vehicle budget (01-420-100-5514).

2. Shift the budget so the expense is properly recorded in the Fire Department's account.

3. Authorize the Finance Director to make the necessary accounting entries.

BACKGROUND | ANALYSIS
In 2024, Council adopted Resolution 2024-54 to close out the federal American Rescue Plan Act (ARPA) funding. This action allowed the City to use ARPA funds for eligible public-safety costs and to transfer all remaining ARPA cash into the General Fund by December 31, 2024. As of FY 2025-26, all ARPA funds have been fully incorporated into the General Fund and the separate ARPA fund has been closed.

During the current fiscal year, construction of the Fire Department's patrol/command vehicle was completed and the City received the vendor invoice. Although the vehicle was originally approved as an ARPA-funded purchase, the invoice was not issued before the ARPA close-out deadline. The final invoice amount is $190,319.03.

FISCAL IMPACT
This budget amendment moves the $190,319.03 cost of the Fire Department patrol/command vehicle from General Fund - General Administration (01-1100) to the Fire Department vehicle account (01-420-100-5514).

The transfer provides the spending authority needed to properly record the payment. Because the purchase was not included in the adopted FY 2025-26 budget, the General Fund's unassigned balance will decrease by $190,319.03 to recognize the expense.
• Amount: $190,319.03 (reclassification and appropriation) • Funding Source: General Fund - existing cash resources • Effect on Fund Balance: Decrease of $190,319.03 to reflect the unbudgeted payment

ATTACHMENTS

1. Resolution 2025-048 - Budget Amendment and Appropriation Transfer

2. Vendor Invoice - Fire Department Patrol/Command Vehicle ($190,319.03) Reviewed/Approved:

RESOLUTION NO. 2025-048

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FARMERSVILLE AUTHORIZING A

BUDGET AMENDMENT AND APPROPRIATION/TRANSFER FOR THE FIRE DEPARTMENT

PATROL/COMMAND VEHICLE
WHEREAS, the City Council adopted Resolution 2024-54 to close out the federal American Rescue Plan Act (ARPA) funding, incorporating all remaining ARPA funds into the General Fund as of FY 2025-26; and
WHEREAS, during the current fiscal year, the construction of the Fire Department patrol/command vehicle was completed and the City received the vendor invoice in the amount of $190,319.03; and WHEREAS, although the vehicle was originally approved as an ARPA-funded purchase, the invoice was not issued prior to the ARPA close-out deadline; and
WHEREAS, the City desires to reclassify and record the expense in the appropriate Fire Department vehicle account to ensure proper accounting and budget alignment; and WHEREAS, the Finance Director is authorized to make the necessary accounting entries to effectuate this transfer.

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

1. The City Council authorizes a budget amendment to move the cost of the Fire Department patrol/command vehicle, totaling $190,319.03, from the General Fund - General Administration budget (01-1100) to the Fire Department vehicle budget (01-420-100-5514).

2. The budget transfer shall ensure the expense is properly recorded in the Fire Department's account.

3. The Finance Director is authorized to make any and all accounting entries necessary to implement this budget amendment.

4. The City Council finds that the transfer and appropriation of funds from the General Fund is consistent with the City's fiscal policies and does not require additional revenues.

PASSED AND ADOPTED this 22nd day of September, 2025, by the following vote:

AYES:_
NOES:

ABSENT:

ABSTAIN:_
-
Tina Hernandez, Mayor Rochelle Giovani, City Clerk
CITY OF 140557
CHECK NO.

CITY OF FARMERSVILLE CITIZEN

USINESS BAN
TANS 909 WEST VISALIA ROAD
FARMERSVILLE FARMERSVILLE, CALIFORNIA 93223 90-3414/1222 PHONE (559) 747-0458 140557
36 VENDOR CHECK DATE CHECK AMOUNT
6085 08/14/2025 $190, 319.03
PAY
****190,319 DOLLARS AND 03 CENTS
TO THE
ORDER

CASCADE FIRE EQUIPMENT COMPANY
P.O BOX 4248
MEDFORD OR 97501
VOID AFTER 90 DAYS
" 40557 81222342498 036622657•
14055 140557
ty of Farmersville • 909 West Visalia Road • Farmersville, CA 932

INVOICE DATE INVOICE NUMBER INVOICE DESCRIPTION

NET INVOICE AMOUNT PO NO

VOUCHER
08/06/25 INV16851 TYPE G BRUSH UNIT 190, 319.03
6085 CASCADE FIRE EQUIPMENT COMPANY 190, 319.03 140940557

GITY DF CITY OF FARMERSVILLE

CLAIM VOUCHER

FARMERSVILLE
AMOUNT: 5190,31983 8/6/25
DATE PREPARED:

FUND &
DEPARTMENT FIRE:1420-5504 OBJECT CODE ARPA
VENDOR NO. 6085 CONTRACT NO.

DATE NEEDED: 8/12/25 (Please allow 10 days to process check) PAYEE NAME: CASCADE FiRE EQUiPMENT, INC.

ADDRESS: PO BOX 4248
MEDFORD, OR 9250)
ATTENTION: MATT BriTE PHONE NO.: 500-654-7049
***IN ORDER TO EXPEDITE PROCESSING OF THIS CLAIM VOUCHER, PLEASE INCLUDE A COMPLETE DESCRIPTION OF WHAT PAYMENT IS FOR, PERSONS ATTENDING, DATES, LOCATIONS, ETC.

DESCRIPTION OF EVENT: BALANCE OF NEW TYPEG BrUSH ANiT
BALANCE TO BE PaiD By ARPA FunDs:

ORIGINAL OR COPY OF RECEIPT NEEDED FOR ALL PURCHASES TO BE REIMBURSED

CHECK ONE OF THE BELOW BEFORE FORWARDING TO FINANCE
• ATTACHMENT TO ACCOMPANY CHECK

CHECK TO BE SENT BY FINANCE

TO BE RETURNED TO PREPARER
FinK ChiEF
APPROVED:

P: \FINANCE DEPARTMENT\Accounts Payable\~Accounts Payable\1 AP ALLOCATION\ Claim Voucher BLANK 6/12/2025

CITY OF FARMERSVILLE

GITY OF CLAIM VOUCHER

FARMERSVILLE
03 DATE PREPARED: 3/016/35
$ 90,314
AMOUNT: ARPA

OBJECT CODE
FUND & FIRE 1480
DEPARTMENT CONTRACT NO.

VENDOR NO. (Please allow 10 days to process check)
4/1/25
DATE NEEDED:

CASCADE FIRE ERLUAMENTI
PAYEE NAME:

Po Box 4248
ADDRESS:

MEDFORO, OR 97501
860-654-7649
PHONE NO.:

METT ARTE
ATTENTION:
***IN ORDER TO EXPEDITE PROCESSING OF THIS CLAIM VOUCHER, PLEASE INCLUDE A COMPLETE DESCRIPTION OF WHAT PAYMENT IS FOR, PERSONS ATTENDING, DATES, LOCATIONS, ETC.

BALANCE OF NEL TYPE G BRUSHA
DESCRIPTION OF EVENT:

SeNT. BALANGE TO BE PAiD BY ARPA FunDAS.

ORIGINAL OR COPY OF RECEIPT NEEDED FOR ALL PURCHASES TO BE REIMBURSED

CHECK ONE OF THE BELOW BEFORE FORWARDING TO FINANCE
* ATTACHMENT TO ACCOMPANY CHECK
2 CHECK TO BE SENT BY FINANCE • CHECK TO BE RETURNED TO PREPARER PREPARER:
him Unucher_Reimb
Cascade Fire Equipment
PO Box 4248 Invoice
Medford OR 97501
CE United States
https://cascadefire.com/ #INV16851
(800) 654-7049 02/11/2025
Bill To Ship To
Farmersville Fire Dept
909 West Visalia Rd So West visit Rapt
armersville CA 93223 armersville CA 9322
Jnited States nited State
PO # SO# Shipping Method Sales Rep
Terms Due Date
ales Orde Will Call Kevin Trent Net 30 03/13/2025
S01694.

Item QrY Rate Amount
SO_1028
300 Gallon Brush Truck - Farmersville FD 1 $175,006.00 $175,006.00 Subtotal $175,006.00
Shipping Cost $0.00
Tax Total (%) $15,313.03
Total $190,319.03
Amount Due $190,319.03
:
1 of 2
INV16851
Cascade Fire Equipment
PO Box 4248 Invoice
Medford OR 97501
crE United States
#INV16851
https://cascadefire.com/
(800) 654-7049 02/11/2025
Brush Truck Options:
• 300 gallon fully baffled poly tank with 10 gallon foam cell (foam flo) • 23HP Briggs & Stratton motor w/ CF-130 pump
• Dual Hannay electric hose reels (2) EF4024
stainless steel control panel with LED foam / water level gauges • stainless steel plumbing, electric primer, winterization system, 4 gallon fuel cel • In cab pump control panel
• 2.5" hydrant fill, 2" draft/suction, 1.5" rear discharge, 1.5" front bumper discharge, 1" tank fill • elevated rear platform with two pull out drawers
• ¾ cab aluminum service body (Red with Black accents), built in draft hose storage • Aluminum equipment baskets on both driver / passenger side of apparatus • 1.5" manual hose tray on passenger side rear of service body • Aluminum equipment basket on tank top
• dual I-Zone hooks on rear of service body
• Whelen Emergency lighting package
• (4) front grill lights
• (2) front fender lights
• 54" Liberty lightbar
• (4) side service body lights
• (4) rear service body lights
• (2) 14k lumen FRC scene lights
o rear dominator directional light
• cencom core amp, expansion modules, speaker, light/siren controller • Troy Products wide body console with pump controis, spray bar controls, customer supplied radios • Kussmaul 20amp charging system with 20amp auto eject
• department approved graphics to include (side striping, department logo, truck number) • NFPA black/red rear graphics
• Off Road Package
• Buckstop classic II with extension and hose tray, front bumper • 1.5" manual discharge, (4) 1.20 degree spray nozzles, 16.5k Warn winch, (2) PIAA fog lights • 265 size All Terrain tires to swap out stock 225 tires (kept on trade), raises vehicle 2". Speedometer calibration • Optimo 360 degree camera system with DVR, 7" monitor, (4) mini camera's • Truck will come from factory RED., price to include painting from just under the windows to top of cab Black • ARB compressor
2 of 2
INV16851
CITY OF Item #: 8
STAFF REPORT Consent
IN
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: Engineering
FROM: Elsa Mejia, City Engineer
AGENDA TITLE: Adoption of Resolution 2025-049 - Authorization to Execute Agreements for the HSIP Pedestrian Safety Improvements Project

ACTION & RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2025-049, authorizing the City Manager, or designee, to execute all required agreements with the California Department of Transportation (Caltrans), including a Program Supplement for the Preliminary Engineering (PE) phase of the HSIP - Pedestrian Safety Improvements Project in the amount of $55,400.

BACKGROUND | ANALYSIS
The City of Farmersville applied for funding under the Caltrans Highway Safety Improvement Program (HSIP) Cycle 12 for pedestrian safety improvements. This project was identified as a top priority in the City's Local Roadway Safety Plan (LRSP), which documents the City's higher-than-average rate of pedestrian-involved collisions.

The project will address two high-risk intersections:
• N. Magnolia Avenue and E. Visalia Road
• S. Farmersville Boulevard and E. Oakland Street
Planned improvements include ADA-compliant curb ramps, upgraded crosswalks, enhanced signage, improved street lighting, refreshed pavement markings, and the installation of rectangular rapid flashing beacons (RRFBs). These enhancements are intended to increase pedestrian visibility and improve overall intersection safety.

On February 26, 2025, Caltrans notified the City that its HSIP Cycle 12 application was approved for funding.

Key project milestones include:
• Preliminary Engineering (PE) phase allocation: December 31, 2025 • Construction (CON) phase allocation: March 31, 2028
Execution of the Program Supplement Agreement is required in order to claim funds and proceed with project development.

FISCAL IMPACT
The total budget for the PE phase is $55,400. Of this amount, $49,860 (90%) will be funded with State HSIP funds, and $5,540 (10%) will be provided by the City's local match.

ATTACHMENTS

1. Resolution 2025-049

2. Agreement No. 06-5368S21

3. Program Supplement HSIPSL-5368(018)
Reviewed/Approved:&
RESOLUTION NO. 2025-049

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FARMERSVILLE, TULARE COUNTY,

CALIFORNIA, AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE MASTER

AGREEMENTS, PROGRAM SUPPLEMENT AGREEMENTS, FUND EXCHANGE AGREEMENTS,

FUND TRANSFER AGREEMENTS, AND ANY AMENDMENTS THERETO WITH THE CALIFORNIA

DEPARTMENT OF TRANSPORTATION
WHEREAS, the City of Farmersville is eligible to receive federal and/or state funding for certain transportation projects through the California Department of Transportation (Caltrans); and WHEREAS, the City of Farmersville has been awarded Highway Safety Improvement Program (HSIP) funding in the amount of $55,400 for the preliminary engineering phase of the pedestrian safety improvements project at various locations, including upgrades to pedestrian crossings and the installation of rectangular rapid flashing beacons (RRFBs) at the intersections of N. Magnolia Avenue and E. Visalia Road, and S. Farmersville Boulevard and E. Oakland Street; and WHEREAS, execution of Master Agreements, Program Supplement Agreements, Fund Exchange Agreements, and Fund Transfer Agreements with Caltrans is required before such funds may be claimed; and
WHEREAS, the City Council wishes to delegate authorization to the City Manager, or his designee, to execute these agreements and any amendments thereto on behalf of the City.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Farmersville, California, that the City Manager, or his designee, is hereby authorized to execute all Master Agreements, Program Supplement Agreements, Fund Exchange Agreements, Fund Transfer Agreements, and any amendments thereto with the California Department of Transportation.

PASSED AND ADOPTED this 22nd day of September, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Tina Hernandez, Mayor Rochelle Giovani, City Clerk
PROGRAM SUPPLEMENT NO. 00000A848 Adv. Project ID Date: August 26, 2025 to 0626000052 Location: 06-10L-0-5
ADMINISTERING AGENCY-STATE AGREEMENT Project Number: HSIPSL-5368(018 E.A. Number:

FOR STATE FUNDED PROJECTS NO 06-5368S21
Locode: 5368
This Program Supplement, effective , hereby adopts and incorporates into the Administering Agency-State Agreement No. 06-5368S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of and is subject to all the terms and conditions thereof. This PROGRAN SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).

The ADMINISTERING AGENCY further stipulates that as a condition to the payment by the State of any funds derived from sources noted below encumbered to this project, Administering Agency accepts and will comply with the Special Covenants and remarks set forth on the following pages.

PROJECT LOCATION: Intersection of N Magnolia Avenue and E Visalia Road: Intersection of S Farmersville Boulevard and E Oakland Street.

TYPE OF WORK: Install/upgrade pedestrian crossings with enhanced safety LENGTH: 0.0(MILES) features for pedestrians (RRFBs).

Estimated Cost State Funds Matching Funds
STATE $49,860.00 LOCAL OTHER
$55,400.00 $5,540.00 $0.00

CITY OF FARMERSVILLE STATE OF CALIFORNIA
Department of Transportation
By By
Title Chief, Office of Project Management Oversight
Division of Local Assistance
Date
Attest Date
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Accounting Officer Date 08/26/2025 $49,860.00
Program Supplement 06--536-A848-SERIAL Page 1 of 3
06-TUL-0-FMVL
HSIPSL-5368(018)

SPECIAL COVENANTS OR REMARKS

1. A. This PROJECT has received STATE funds from Highway Safety Improvement Program (HSIP). The ADMINISTERING AGENCY agrees to administer the PROJECT in accordance with the Highway Safety Improvement Program (HSIP) Guidelines, the Local Assistance Procedures Manual (LAPM), the Local Assistance Program Guidelines (LAPG), and this PROGRAM SUPPLEMENT.

B. The STATE funds for this PROJECT may be provided under one or more phases, which are Preliminary Engineering (PE), Right-of-Way (R/W) and Construction (Con).

A phase-specific fund allocation is required, in addition to other requirements, before reimbursable work can occur for the phase identified. Each allocation will be assigned an effective date and identify the amount of funds allocated per phase. Unless otherwise determined, the effective date of the phase-specific allocation will constitute the start of reimbursable expenditures for the phase. The STATE funds available for reimbursement will be limited to the amount allocated by the STATE for the phase.

C. At the time of the first fund allocation approval for the Project, this PROGRAM SUPPLEMENT, a STATE-approved Allocation Letter and STATE Finance Letter are prepared to allow reimbursement of eligible PROJECT expenditures for the phase allocated.

D. STATE and ADMINISTERING AGENCY agree that any additional fund allocations made after the execution of this PROGRAM SUPPLEMENT, for the phase that has been authorized in the first fund allocation approval or for a new phase, will be encumbered on this PROJECT by use of a STATE-approved Allocation Letter and a STATE Finance Letter and are subject to the terms and conditions thereof.

E. This PROJECT is subject to the delivery requirements enacted by the HSIP guidelines. The delivery requirements may be accessed at: https://dot.ca.gov/programs/local-assistance/fed- and-state-programs/highway-safety-improvement-program/delivery-requirements-status- approved-projects.

F. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer immediately after project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing of invoices for the construction phase.

G. The ADMINISTERING AGENCY shall invoice STATE for PE, R/W and CON costs no later than 180 days after the end of expenditure the phase. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion or contract acceptance to make the final payment to the contractor, prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and
Program Supplement 06--536-A848- SERIAL Page 2 of 3
06-TUL-0-FMVL
HSIPSL-5368(018)

SPECIAL COVENANTS OR REMARKS
payment.

H. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current LAPM provisions.

I. ADMINISTERING AGENCY agrees to comply with the requirements in 2 CFR Part 200, Unitorm Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (applicable to Federal and State Funded Projects).

J. By executing this PROGRAM SUPPLEMENT, ADMINISTERING AGENCY agrees to provide the STATE, upon request, with the information related to the PROJECT for the purpose of project evaluation or other purposes.

K. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the soroseman and may elit a mile RECT being naile rentement.

Program Supplement 06--536-A848- SERIAL Page 3 of 3

MASTER AGREEMENT

ADMINISTERING AGENCY-STATE AGREEMENT

STATE-FUNDED PROJECTS
06 City of Farmersville
District Administering Agency
Agreement No. 06-5368S21
This AGREEMENT, is entered into effective this
between the City of Farmersville, hereinafter referred to as "ADMINISTERING AGENCY," and the State of California, acting by and through its Department of Transportation (Caltrans), hereinafter referred to as "STATE", and together referred to as "PARTIES" or individually as a "PARTY."
RECITALS:

1. WHEREAS, the Legislature of the State of California has enacted legislation by which certain State funds are made available for use on local transportation related projects of public entities qualified to act as recipients of these state funds; and

2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation Commission (CTC) and/or STATE for funding from a State-funded program (herein referred to as STATE FUNDS), as defined in the Local Assistance Program Guidelines (LAPG) and/or in the respective CTC Guidelines, for use on local authorized transportation related projects as a local administered projects), hereinafter referred to as "PROJECT"; and

3. WHEREAS, said PROJECT will not receive any federal funds; and before STATE FUNDS will be made available for PROJECT,
ADMINISTERING AGENCY and STATE are required to enter into an agreement to establish terms and conditions applicable to the ADMINISTERING AGENCY wher receiving STATE FUNDS for a designated PROJECT facility and to the subsequent operation and maintenance of that completed facility.

NOW, THEREFORE, the PARTIES agree as follows:

Page 1 of 15 ends

ARTICLE I - PROJECT ADMINISTRATION

1. This AGREEMENT shall have no force or effect with respect to any program project unless and until a project- specific Program Supplement to this AGREEMENT for state funded projects, hereinafter referred to as "PROGRAM SUPPLEMENT", has been fully executed by both STATE and ADMINISTERING AGENCY.

2. The State approved project-specific allocation notification letter and approved CTC allocation documentation designate the party responsible for implementing PROJECT, type of work, and location of PROJECT for projects requiring CTC allocation by PROJECT component of work.

3. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the ADMINISTERING AGENCY to receive STATE FUNDS from/through STATE for designated PROJECT. The PROGRAM SUPPLEMENT shall also show these STATE FUNDS that have been initially encumbered for PROJECT along with the matching funds to be provided by ADMINSIERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the PARTIES shall cause ADMINISTERING AGENCY to adopt all the terms of this AGREEMENT as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the governing body of ADMINISTERING AGENCY.

4. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM SUPPLEMENT. The PARTIES agree that STATE may suspend future allocations, encumbrances and invoice payments for any on- going or future STATE FUNDED PROJECT performed by ADMINISTERING AGENCY if any project-specific PROGRAM SUPPLEMENT is not returned, unless otherwise agreed by STATE in writing.

5. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of STATE FUNDS encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to comply with the terms and conditions of this AGREEMENT and all the agreed-upon Special Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of the specific PROJECT.

6. STATE FUNDS will not participate in any portion of PROJECT work performed in advance of the effective date of allocation by CTC, or by STATE for allocations delegated to STATE by CTC, for said PROJECT.

7. Projects allocated with STATE FUNDS will be administered in accordance with the current CTC STIP Guidelines, applicable chapter(s) of the LAPG, LAPM and/or any other instructions published by STATE.

8. ADMINISTERING AGENCY agrees to ensure compliance with all relevant State laws and requirements for work related to PROJECT, including the California Environmental Quality Act (CEQA).

9. ADMINISTERING AGENCY's eligible costs for preliminary engineering work includes all preliminary work directly related to PROJECT up to contract award for construction, including, but not limited to, environmental studies and permits (E&P), preliminary surveys and reports, laboratory work, soil investigations, the preparation of plans, specifications and estimates (PS&E), advertising for bids, awarding of a contract and project development contract administration.

Page 2 of 15 ends

10. ADMINISTERING AGENCY's eligible costs for construction engineering include actual inspection and supervision of PROJECT construction work; construction staking; laboratory and field testing; and the preparation and processing of field reports, records, estimates, final reports, and allowable expenses of employees/consultants engaged in such activities.

11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY'S employees or its contracted engineering consultant shall be responsible for all PROJECT engineering work.

12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final environmental approval of PROJECT. Final design entails the design work necessary to complete the PS&E and other work necessary for a construction contract but not required earlier for environmental clearance of that PROJECT.

13. If PROJECT is not on STATE-owned right-of-way, PROJECT shall be constructed in accordance with Chapter 11 of the LAPM that describes minimum statewide design standards for local agency streets and roads. The design standards for projects off the National Highway System (NHS) allow STATE to accept either the current Caltrans Highway Design Manual standards, the current FHWA-adopted American Association of State Highway and Transportation Officials (AASHTO) A Policy on Geometric Design of Highways and Streets standards, or the approved geometric design standards of ADMINISTERING AGENCY. Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGENCY-approved standard specifications, standard plans, materials sampling and testing quality assurance programs that meet the conditions described in the then current Local Assistance Procedures Manual.

14. If PROJECT involves work within or partially within STATE-owned right-of-way, that PROJECT shall also be subject to compliance with the policies, procedures and standards of the STATE Project Development Procedures Manual and Highway Design Manual and where appropriate, an executed cooperative agreement between STATE and ADMINISTERING AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES. ADMINISTERING AGENCY and its contractors shall each obtain an encroachment permit through STATE prior to commencing any work within STATE rights-of-way or work which affects STATE facilities.

15. When PROJECT is not on the State Highway System (SHS) but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for future maintenance of protective devices or other facilities installed under the contract.

16. ADMINISTERING AGENCY shall comply with the provisions of sections 4450 and 4454 of the California Government Code, as well as other Department of General Services guidance, if applicable, for the contract PS&E for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. Further requirements and guidance are provided in Title 24 of the California Code of Regulations.

17. ADMINISTERING AGENCY shall provide a full-time public employee to be in responsible charge of each PROJECT. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. ADMINISTERING AGENCY may utilize consultants to perform supervision and inspection work for PROJECT with a

Page 3 of 15 ends

fully qualified and licensed engineer. Utilization of consultants does not relieve ADMINISTERING AGENCY of its obligation to provide a full-time public employee to be in responsible charge of each PROJECT.

18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY shall advertise, award, and administer the PROJECT construction contract or contracts.

19. The cost of maintenance, security, or protection performed by ADMINISTERING AGENCY or contractor forces during any temporary suspension of PROJECT or at any other time may not be charged to the PROJECT.

20. ADMINISTERING AGENCY shall submit PROJECT-specific award information to STATE's District Local Assistance Engineer, within sixty (60) days after contract award.

21. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute a "Final Project Expenditure Report", LAPM Exhibit 17-M, within one hundred eighty (180) days of PROJECT completion. Failure by ADMINISTERING AGENCY to submit a "Final Project Expenditure Report" ", within 180 days of project completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the Local Assistance Procedures Manual.

22. ADMINISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of 1990 that prohibits discrimination on the basis of disability and all applicable regulations and guidelines issued pursuant to the ADA.

23. The Governor and the Legislature of the State of California, each within their respective jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and other work financed with public funds. ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM, attached hereto as Exhibit A and further agrees that any agreement entered into by ADMINISTERING AGENCY with a third party for performance of work connected with PROJECT shall incorporate Exhibit A (with third party's name replacing ADMINISTERING AGENCY) as parts of such agreement.

24. ADMINISTERING AGENCY shall include in all contracts and subcontracts awarded when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code sections 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective at the date of contract award by the ADMINISTERING AGENCY.

ARTICLE II - RIGHTS-OF-WAY

1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all necessary rights of way have been secured. Prior to the advertising for construction of PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that all necessary rights-of-way are available for construction purposes or will be available by the time of award of the construction contract.

2. The furnishing of rights of way by ADMINISTERING AGENCY as provided for herein includes, and is limited to, the following, unless the PROGRAM SUPPLEMENT provides otherwise.
(a) Expenditures of capital and support to purchase all real property required for

Page 4 of 15 ends

PROJECT free and clear of liens, conflicting easements, obstructions and encumbrances, after crediting PROJECT with the fair market value of any excess property retained and not disposed of by ADMINISTERING AGENCY. (b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real property required for the PROJECT, title free and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by applicable law, of damages to owners of remainder real property not actually taken but injuriously affected by PROJECT.
(C) The cost of relocation payments and services provided to owners and occupants pursuant to Government Code sections 7260-7277 when PROJECT displaces an individual, family, business, farm operation or nonprofit organization. (d) The cost of demolition and/or the sale of all improvements on the right-of-way after credit is recorded for sale proceeds used to offset PROJECT costs. (e) The cost of all unavoidable utility relocation, protection or removal. (f) The cost of all necessary hazardous material and hazardous waste treatment, encapsulation or removal and protective storage for which ADMINISTERING AGENCY accepts responsibility and where the actual generator cannot be identified, and recovery made.

3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability that may result in the event the right-of-way for a PROJECT is not clear as certified by ADMINISTERING AGENCY, including, but not limited to, if said right-of-way is found to contain hazardous materials requiring treatment or removal to remediate in accordance with Federal and State laws. ADMINISTERING AGENCY shall pay, from its own non- matching funds, any costs which arise out of delays to the construction of PROJECT because utility facilities have not been timely removed or relocated, or because rights-of-way were not available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work.

ARTICLE III - MAINTENANCE AND MANAGEMENT

1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed, constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide.

With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer this obligation and responsibility to maintain and operate PROJECT property for that intended public purpose to another public entity.

2. Upon ADMINISTERING AGENCY's acceptance of the completed construction contract or upon contractor being relieved of the responsibility for maintaining and protecting PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of STATE and if PROJECT falls within the jurisdictional limits of another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a separate maintenance agreements) between itself and the other jurisdictional Agency or Agencies providing for the operation, maintenance, ownership and liability of PROJECT. Until those agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT operations, maintenance, ownership and liability in a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after receipt of notice from STATE that a PROJECT, or any portion thereof, is not

Page 5 of 15 ends

being properly operated and maintained and ADMINISTERING AGENCY has not satistactorily remedied the conditions complained of, the approval of future STATE FUNDED PROJECTS of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE. The provisions of this section shall not apply to a PROJECT that has been vacated through due process of law with STATE's concurrence.

3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of engineers and/or such other professionals and technicians as PROJECT reasonably requires. Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements.

4. ADMINISTERING AGENCY shall comply with all applicable law, including but not limited to, all applicable legal authority regarding construction standards.

ARTICLE IV - FISCAL PROVISIONS

1. All contractual obligations of STATE are subject to the appropriation of resources by the Legislature and the allocation of resources by the CTC.

2. STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this AGREEMENT, the execution of each project-specific PROGRAM SUPPLEMENT and/or STATE's approved finance letter.

3. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices in arrears for reimbursement of allowable PROJECT costs at least once every six months commencing after the STATE FUNDS are encumbered on either the project-specific PROGRAM SUPPLEMENT or through a project-specific finance letter approved by STATE. STATE reserves the right to suspend future allocations and invoice payments for any on-going or future STATE FUNDED project performed by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six- month period

4. Invoices shall be submitted on a standardized billing summary template, in accordance with Chapter 5 of the LAPM to claim reimbursement by ADMINISTERING AGENCY. For construction invoices, pay estimates must be included.

5. ADMINISTERING AGENCY must retain at least one copy of supporting backup documentation for allowable costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.

6. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursements of actual allowable PROJECT costs already incurred and paid for by the ADMINISTERING AGENCY.

7. Indirect Cost Allocation Plans/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to the Inspector General - Independent Office of Audits and Investigations for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of

Page 6 of 15 ends

indirect cost incurred within each fiscal year being claimed for reimbursement.

ICAPS/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the LAPM, and the ICAP/ICRP approval procedures established by STATE.

8. STATE will withhold the greater of either two (2) percent of the total of all STATE FUNDS encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.

9. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the required matching funds may be adjusted by mutual consent of the PARTIES with a finance letter, and an allocation notification letter when applicable. STATE FUNDING may be increased to cover PROJECT cost increases only if such additional funds are available and the CTC and/or STATE concurs with that increase in the form of an allocation and finance letter.

10. When such additional STATE FUNDS are not available, ADMINISTERING AGENCY agrees that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY's own funds.

11. ADMINISTERING AGENCY shall use its own non-STATE FUNDS to finance the local share of eligible costs and all PROJECT expenditures or contract items ruled ineligible for financing with STATE FUNDS. STATE shall make the final determination of ADMINISTERING AGENCY's cost eligibility for STATE FUNDED financing with respect to claimed PROJECT costs.

12. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for work performed by STATE at the request of ADMINISTERING AGENCY. STATE's costs shall include overhead assessments in accordance with section 8755.1 of the State Administrative Manual.

13. STATE FUNDS allocated by the CTC and/or STATE are subject to the timely use of funds provisions approved in CTC Guidelines and State procedures approved by the CTC and STATE.

14. STATE FUNDS encumbered for PROJECT are available for liquidation only for a limited period from the beginning of the State fiscal year when those funds were appropriated in the State Budget. STATE FUNDS not liquidated within these periods will be reverted unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Section 16304 of the Government Code. The exact date of fund reversion will be reflected in the STATE signed PROJECT finance letter.

15. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid to rank and file STATE employees under current California Department of Human Resources (CalHR) rules unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Government Code section 16304. If the rates invoiced by ADMINISTERING AGENCY are in excess of CalHR rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand.

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16. ADMINISTERING AGENCY agrees to comply with California Government Code 4525- 4529.14. Administering Agency shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall also comply with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326.

17. ADMINISTERING AGENCY agrees and will assure that its contractors and subcontractors will be obligated to agree that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326Governments. ADMINISTERING AGENCY agrees to comply with the provisions set forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility companies.

18. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR 200 excluding 2 CFR Part 200.318-200.326, 48 CFR Chapter 1, Part 31, LAPM, Public Contract Code (PCC) 10300- 10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations.

19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be questioned, disallowed, or unallowable under 2 CFR, Part 200, 48 CFR, Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646, LAPM, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations are subject to repayment by ADMINISTERING AGENCY to STATE and may result in STATE imposing sanctions on ADMINISTERING AGENCY as described in Chapter 20 of the Local Assistance Procedures Manual.

20. Should ADMINISTERING AGENCY fail to refund any moneys due upon written demand by STATE as provided herein or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT without adequate justification and approval by STATE, then, within thirty (30) days of demand, or within such other period as may be agreed to in writing between the PARTIES hereto, STATE, acting through the State Controller, the State Treasurer, the CTC or any other public entity or agency, may intercept, withhold and demand the transfer of an amount equal to the amount paid by or owed to STATE for each PROJECT, from future apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, and/or may also withhold approval of future STATE FUNDED projects proposed by ADMINISTERING AGENCY.

21. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint powers authority, special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder.

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22. ADMINISTERING AGENCY acknowledges that the signatory party represents the ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING AGENCY in contravention of the terms of this AGREEMENT.

ARTICLE V

AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS

1. STATE reserves the right to conduct technical and financial audits of PROJECT work and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by paragraph three (3) of Article V.

2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices sent to or paid by STATE.
. ADMINISTERING AGENCY, ADMINISTERING AGENCY's contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States, all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts, and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above-referenced parties shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years, or 35 years for Prop 1B funds, from the date of final payment to ADMINISTERING AGENCY.

4. ADMINISTERING AGENCY shall not award a construction contract over $25,000 on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. All contracts awarded by ADMINISTERING AGENCY intended or used as local match credit must meet the requirements set forth in this AGREEMENT regarding local match funds.

5. ADMINISTERING AGENCY shall comply with Chapter 10 (commencing with Section 4525) Division 5 of Title 1 of the Government Code and shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall comply with Chapter 10 of the LAPM for AE Consultant Contracts.

6. ADMINISTERING AGENCY shall comply with Government Code Division 5 Title 1 sections 4525-4529.5 and shall undertake the procedures described in California Government Code 4527(a) and 4528(a) for procurement of professional service contracts. Administering Agency shall follow Public Contract Code Section 10335- 10381 for other professional service contracts.

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7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V, AUDITS, THIRD-PARTY CONTRACTING, RECORDS RETENTION AND REPORTS and shall mandate that travel and per diem reimbursements and third- party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors.

8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the same manner that is required of all other PROJECT expenditures.

9. Except as provided in this Article, this AGREEMENT is solely between and for the benefit of the PARTIES and there are no third-party beneficiaries.

ARTICLE VI - MISCELLANEOUS PROVISIONS

1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for transportation purposes that are in conformance with Article XIX of the California State Constitution and other California laws.

2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes and regulations, and the Local Assistance Program Guidelines and Local Assistance Procedures Manual as published by STATE and incorporated herein, including all subsequent approved revisions thereto applicable to PROJECT unless otherwise designated in the project-specific executed PROJECT SUPPLEMENT.

3. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or funding of this AGREEMENT in any manner.

4. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this AGREEMENT, shall act in an independent capacity and not as officers, employees or agents of STATE.

5. Each project-specific PROGRAM SUPPLEMENT shall separately establish the terms and funding limits for each described PROJECT funded under this AGREEMENT and that PROGRAM SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT.

6. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this AGREEMENT, and ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment occurs after the execution of this AGREEMENT.

7. ADMINISTERING AGENCY certifies, by execution of this AGREEMENT, that no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay only for the value of the PROJECT work actually performed, or in STATE's discretion, to deduct from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.

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8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board.

9. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with STATE that may have an impact upon the outcome of this AGREEMENT or any individual PROJECT encompassed within a PROGRAM SUPPLEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of a PROJECT undertaken pursuant to this AGREEMENT. These disclosures shall be delivered to STATE in a form deemed acceptable by the STATE prior to execution of this AGREEMENT.

10. ADMINISTERING AGENCY hereby certifies that it does not have, nor shall it acquire, any financial or business interest that would conflict with the performance of any PROJECT initiated under this AGREEMENT.

11. ADMINISTERING AGENCY certifies that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its sole discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration.

12. Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed of by agreement shall be decided by the STATE's Contract Manager, who shall be identified to ADMINISTERING AGENCY at the time of execution of this AGREEMENT and, as applicable, any time that Contract Manager changes during the duration of this AGREEMENT who may consider any written or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract Manager, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact considered and determined by the Contract Manager.

13. Neither the pendency of a dispute nor its consideration by the Contract Manager will excuse the ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this AGREEMENT and each PROGRAM SUPPLEMENT.

14. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under or in connection with any work, authority or jurisdiction of ADMINISTERING AGENCY arising under this AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims and suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under this AGREEMENT.

15. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, under or in connection with any work, authority or

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jurisdiction arising under this AGREEMENT. It is understood and agreed that STATE shall fully defend, indemnify and save harmless the ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this AGREEMENT.

16. In the event of (a) ADMINISTERING AGENCY failing to timely proceed with effective PROJECT work in accordance with the project-specific PROGRAM SUPPLEMENT; (b) failing to maintain any applicable bonding requirements; and (c) otherwise materially violating the terms and conditions of this AGREEMENT and/or any PROGRAM SUPPLEMENT, STATE reserves the right to terminate funding for that PROJECT upon thirty (30) days' written notice to ADMINISTERING AGENCY.

17. No termination notice shall become effective if, within thirty (30) days after receipt of a Notice of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is not reasonably susceptible of cure within said thirty (30) day period the ADMINISTERING AGENCY proceeds thereafter to complete that cure in a manner and time line acceptable to STATE.

18. Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this AGREEMENT and the applicable PROGRAM SUPPLEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the event of such termination, STATE may proceed with the PROJECT work in a manner deemed proper by STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY for the reasons stated in paragraph sixteen (16) of ARTICLE VI, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under the PROGRAM SUPPLEMENT and/or STATE-approved finance letter prior to termination, provided, however, ADMINISTERING AGENCY is not in default of the terms and conditions of this AGREEMENT or the project-specific PROGRAM SUPPLEMENT and that the cost of any PROJECT completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY.

19. In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a project-specific PROGRAM SUPPLEMENT and/or Cooperative Agreement, the terms stated in that PROGRAM SUPPLEMENT and/or Cooperative Agreement shall prevail over those in this AGREEMENT.

20. Without the written consent of STATE, this AGREEMENT is not assignable by ADMINISTERING AGENCY either in whole or in part.

21. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in writing and signed by the PARTIES, and no oral understanding or agreement not incorporated herein shall be binding on any of the PARTIES.

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IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officer.

STATE OF CALIFORNIA City of Farmersville

DEPARTMENT OF TRANSPORTATION
By. By-
Chief, Office of Project Management
Oversight City of Farmersville
Division of Local Assistance
Representative Name & Title
(Authorized Governing Body
Representative
Date Date

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EXHIBIT A - FAIR EMPLOYMENT PRACTICES ADDENDUM

1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against any employee for employment on account of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. ADMINISTERING AGENCY will take affirmative action to ensure that employees are treated during employment without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Such action shall include, but not be limited to, the following:
employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to employees for employment, notices to be provided by STATE setting forth the provisions of this Fair Employment section.

2. ADMINISTERING AGENCY, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, 12900 et seq.), and the applicable regulations promulgated thereunder (Cal. Code Regs., Title 2, 11000, et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12900(a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full. Each of the ADMINISTERING AGENCY'S contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate.

3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this AGREEMENT.

4. ADMINISTERING AGENCY will permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this Agreement.

5. Remedies for Willful Violation:
(a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that ADMINISTERING AGENCY has violated the Fair Employment Practices Act. (b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due or thereafter may become due to ADMINISTERING AGENCY, the difference between the price named in the Agreement •Page 14 of 15
and the actual cost thereof to STATE to cure ADMINISTERING AGENCY's breach of this Agreement.

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CITY OF Item #: 9

STAFF REPORT
Consent
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: City Manager
FROM: Daymon Qualls, City Manager
AGENDA TITLE: Adoption of Resolution 2025-050 Authorizing the Mayor to Execute a SB 125 Program Cooperative Agreement With the Tulare County Association of Governments (TCAG)

ACTION & RECOMMENDATION
Staff recommends that the City Council adopt Resolution 2025-050 authorizing the Mayor to execute a SB 125 Program Cooperative Agreement between the City of Farmersville and the Tulare County Association of Governments (TCAG).

BACKGROUND | ANALYSIS
TCAG, as Tulare County's Regional Transportation Planning Agency, is responsible for disbursing SB 125 Program funds to eligible sponsors. The City of Farmersville, as a transit service provider, is eligible to receive funds through TCAG upon execution of the cooperative agreement.

The SB 125 Program Cooperative Agreement formalizes the relationship between TAG and the City of Farmersville regarding the use of SB 125 funds. Key elements include:
• Commitment by the City (Sponsor) to comply with SB 125 Program requirements, guidelines, and reporting obligations.
• Eligibility for reimbursement of transit-related capital and/or operational costs, consistent with approved applications and project scopes.
• Establishment of requirements for project supplements, invoices, progress reports, and audits. • Authority for TAG to disburse funding to the City for approved projects.

Execution of this agreement will allow Farmersville to access its formula share of SB 125 funding for eligible transit purposes, ensuring the City can maintain and improve transit services, pursue zero-emission fleet investments, and prevent service reductions.

FISCAL IMPACT
There is no immediate fiscal impact to the City associated with execution of the agreement. Future fiscal impacts will depend on project-specific supplements and funding allocations under SB 125.

ATTACHMENTS

1. Resolution 2025-050

2. SB 125 Program Cooperative Agreement
Reviewed/Approved: (
SB 125 PROGRAM COOPERATIVE AGREEMENT
THIS SB 125 PROGRAM COOPERATIVE AGREEMENT ("Agreement") is made and entered into on _ by and between the CITY OF FARMERSVILLE ("SPONSOR") and the TULARE COUNTY ASSOCIATION OF GOVERNMENTS, acting as the Regional Transportation Planning Agency for Tulare County ("TCAG"). SPONSOR and TCAG are each a "Party" and together are the "Parties" to this Agreement, which is made with reference to the following:

RECITALS
WHEREAS, TCAG and SPONSOR desire to enter into an Agreement for funding of transit capital improvements and/or operational costs in Tulare County pursuant to the authority provided by the State of California's Budget Act of 2023 SB 125 Program Formula-Based Transit and Intercity Rail Capital Program & Zero Emission Transit Capital Program ("SB 125 Program"); and WHEREAS, SPONSOR desires to receive SB 125 Program funding from TCAG for transit capital improvement projects and/or operational costs ("Projects") to be developed and/or identified by SPONSOR; and,
WHEREAS, TCAG is authorized under the SB 125 Program to disburse SB 125 Program funds to SPONSOR in accordance with the "Final Guidelines" promulgated as of September 29, 2023 for the SB 125 Program by the California State Transportation Agency, as those "Final Guidelines" may be amended or supplemented from time-to-time (the "SB 125 Program Guidelines").

NOW, THEREFORE, the Parties represent, covenant and agree as follows:

AGREEMENT
This Agreement shall have no force or effect with respect to a specific Project unless and until a project-specific Program Supplement to this Agreement (a "Program Supplement") has been fully executed by both TAG and SPONSOR.

SECTION I
Covenants of SPONSOR

1.1 Compliance with SB 125 Program Requirements. SPONSOR agrees to abide by the terms and conditions of TCAG as set forth herein for the receipt of SB 125 Program funds and to comply with the SB 125 Program Guidelines (Appendix); and TCAG'S adopted SB 125 Program Polices and Procedures, if any, as well as any subsequent amendments or updates thereto. 1 1.2. Project Application.

1.2a. Transit Capital Improvement and/or Operational Costs Projects - The complete Project description, scope of work, delivery schedule, estimate of cost by activity, anticipated amount and type of funds that will supplement SB 125 Program funds, and the anticipated timing for release of SB 125 Program funds shall be specified in SPONSOR'S application for SB 125 Program funds and approved by TCAG. Such an application is in addition to any annual transit expansion or equivalent plan or application that SPONSOR may be required to submit to TCAG in order to receive Measure R or other transit planning, operational, or capital improvement funds.

1.3. Project Scope. A Project scope of work or any change to such may not be implemented until it has been approved by TCAG in accordance with the SB 125 Program Guidelines.

1.4. Eligible Reimbursement Costs. Eligible reimbursement costs shall be costs as specified in the SB 125 Program Guidelines or as may be approved from time to time by TCAG pursuant to Section 1.2. In no event shall expenses incurred prior to the execution of this Agreement be considered eligible reimbursement costs.

1.5. SB 125 Program Percentage Share Defined. For this Agreement, the SB 125 Program percentage share of eligible costs shall be as set forth in the approved application for the specific Project.

1.6. Invoices and Progress Reports. Starting one month after the execution of this Agreement, SPONSOR shall provide TCAG with quarterly progress reports concerning the Project. SPONSOR shall provide invoices no less than monthly for activities conducted over the prior unbilled month. These documents shall include the following specified information:

1.6.a. SPONSOR'S Staff Expenses. SPONSOR may include in the invoice direct staff expenses for the eligible costs of the Project.

1.6.b. Copies of Consultant Invoices. SPONSOR shall provide TCAG with one (1) copy of all invoices submitted to SPONSOR by every consultant, subconsultant, contractor, or subcontractor performing work related to the Project.

1.6.c. Progress Reports. The quarterly progress reports shall include a brief description of the status of the Project and the work completed to date. This summary may be included on the invoices submitted to TCAG or be attached to those invoices.

1.6.d. Deadline to Submit Reimbursement Requests. All invoices and progress reports shall be submitted to TCAG on or before 5:00 p.m. on the tenth (10th) calendar day of the month in which SPONSOR requests reimbursement payments. TCAG shall issue reimbursement payments to SPONSOR on or before the last day of the month for all timely submittals.

1.6.e. Late Submittals. If SPONSOR fails to submit documents to TCAG as set forth in Section 1.5.d, above, then TCAG shall provide reimbursement payments for late submittals in the following calendar month.
2 1.7. Use of Funds. SPONSOR shall use SB 125 Program funds consistent with the Project scope of work approved by TCAG pursuant to Section 1.2.

1.8. Submittal of Documents. SPONSOR shall provide copies to TCAG of all executed contracts which relate to the Project scope approved by TAG pursuant to Section 1.2. SPONSOR shall retain records pertaining to the Project for a four (4) year period following completion of the Project.

1.9. Completion of Project. SPONSOR shall be responsible for the timely completion of construction and provide management of consultant and contractor activities, including responsibility for schedule, budget and oversight of the services, consistent with the scope of work.

1.9.a. Letter of Project Completion. SPONSOR shall provide TCAG with a letter of Project completion which includes final cost, revenues, and schedule of activities. This letter shall accompany the final invoice for payment from SPONSOR to provide notice of Project account closing by TCAG.

1.10. Provision of Signs. SPONSOR shall install SB 125 Program signs approved and/or required by TCAG. SB 125 Program Signs shall be posted at locations agreed upon by TCAG and SPONSOR.

1.11. Cost-Savings and Excess Costs.

1.10.a. Definition of Cost Savings. After a Project has been accepted by SPONSOR as complete, any positive difference between the total Project cost, as approved by TAG pursuant to Section 1.2, and the total amount invoiced to TCAG shall be considered Project cost savings.

1.11.b. Cost Savings. If, according to the most recently amended SB 125 Program Guidelines, the Projects are not segments of a larger project, or if all other segments of the larger project have been completed, then TCAG shall allocate the SB 125 Program share according to the Adopted Policies and Procedures, if any.

1.11.c. Segmented Projects. If, according to the most recently amended SB 125 Program Guidelines, the Project is a segment of a larger project and other segments have not been completed, then TCAG shall allocate the SB 125 Program share (as specified in Section 1.4) of these cost savings to the uncompleted segment(s) of the larger project.

1.11.d. Excess Costs: If the actual total Project costs exceed the estimate approved by TCAG, then this amount will be considered an excess cost.

1.11.e. Reconciliation of Excess Costs: If the costs to complete the Project exceed the total amount of funds programmed, SPONSOR will be fiscally responsible for the full amount of excess costs associated with SPONSOR'S Project, unless otherwise agreed by the Parties pursuant to Section 2.4.

1.12. Provision of Groundbreaking and Ribbon Cutting Ceremonies. SPONSOR shall be responsible for groundbreaking ceremonies and ribbon cutting ceremonies, if any, related to their Project(s) and as determined necessary by TCAG and SPONSOR. SPONSOR may contract either or both ceremonies through private consultants. Any such ceremonies shall be coordinated with the Public 3 Relations Officer of TCAG. The costs of all ceremonies will be an expense of the Project.

SECTION II
Covenants of TCAG

2.1 SB 125 Program Funds. TCAG agrees to disburse SB 125 Program funds for the costs of SPONSOR'S Projects) according to the terms and conditions set forth herein, and to comply with the SB 125 Program Guidelines and; and TCAG'S adopted SB 125 Program Polices and Procedures, if any, as well as any subsequent amendments or updates.

2.2. Reimbursement Payments. TCAG shall make reimbursement payments to SPONSOR for eligible Project costs as specified in the SB 125 Program Guidelines and subsequent updates of the SB 125 Program Guidelines. To receive monthly reimbursement payments for work completed on the Project, SPONSOR shall comply with the following reimbursement procedures:

2.2.a. Ineligible Costs. The TCAG reserves the right to adjust current or future reimbursement payments to SPONSOR if an invoice includes ineligible costs.

2.2.b. Reimbursement Amount. The amount of reimbursement payments to SPONSOR shall be made pursuant to the SB 125 Program Guidelines.

2.2. c. Suspension of Reimbursement. TCAG shall timely pay or reimburse SPONSOR for all undisputed cost items. Reimbursement payments for the items) in question shall be suspended without interest when a dispute arises as to whether or not a cost items) is eligible for reimbursement.

2.2.c. (1) Meeting. If a dispute over reimbursement or payment occurs, then TCAG shall arrange a meeting between TCAG and SPONSOR to discuss and attempt to resolve the dispute. If the invoice was received on or before 5:00 p.m. on the 10th day of the month (or if the 10th is not a business • day, then the next business day), then the meeting shall be held no later than the 20th day of the same month. If the invoice was received after this date and time, then the meeting shall be held no later than the 20th day of the following month.

2.2.c. (2) Technical Advisory Committee. If an agreement cannot be reached at the meeting referenced above, then SPONSOR or TCAG shall have the option to take the dispute to TAG'S Technical Advisory Committee, with the understanding that by doing so the payment or reimbursement for the disputed cost items) will be delayed until a resolution of the matter is reached.

2.2.c. (3) Governing Board Decision. If SPONSOR or TAG disagrees with the dispute resolution proposed by the Technical Advisory Committee, then the dispute shall be submitted to TCAG Governing Board for final resolution. Reimbursement or payment for the disputed cost items) will be further delayed until a resolution of the matter is reached by the TCAG Governing Board. If the TCAG Governing Board determines that the disputed cost items) is ineligible for payment or reimbursement, then TCAG shall not provide reimbursement or payment to SPONSOR for the disputed items). If the TCAG Governing Board determines that the disputed cost items) is eligible for payment or reimbursement, in whole or in part, then TCAG promptly shall provide reimbursement or payment to 4 SPONSOR for such portion of the disputed cost. The decision of the TAG Governing Board shall be considered to be final for administrative purposes and not subject to reconsideration or further administrative appeal or review.

2.2. c. (4) Reservation of Rights. By utilizing the above procedures, SPONSOR does not surrender any rights to pursue available legal remedies if SPONSOR disagrees with a TCAG Governing Board decision.

2.2.d. Acceptance of Work Does Not Result In Waiver. Reimbursement payments shall not result in a waiver of the right of TAG to require fulfillment of all terms of this Agreement.

2.3. Right to Conduct Audit. TCAG shall have the right to conduct an audit of all SPONSOR'S records pertaining to Projects at any time during the four (4) year period after completion of the Projects.

2.4. Reconciliation of Excess Costs. If the costs to complete a Project exceed the total amount of funds programmed, then TCAG may, by further agreement with SPONSOR, agree to provide additional SB 125 Program or other funding for the Project.

SECTION III
Mutual Covenants

3.1. Release of liability, SPONSOR hereby releases TCAG from any liability to SPONSOR regarding TCAG'S administration and issuance of the SB 125 Program funds, except for any breach of TCAG'S fiduciary duty as set forth in the SB 125 Program Guidelines.

3.2. Term. This Agreement shall remain in effect until discharged or terminated as provided in Section 3.3 or Section 3.15.

3.3. Discharge. This Agreement shall be subject to discharge as follows:

3.3.a. Termination by Mutual Consent. This Agreement may be terminated between SPONSOR and TCAG at any time by mutual consent of SPONSOR and TCAG. If this Agreement is mutually terminated by the Parties, then SPONSOR will no longer receive SB 125 Program fundsunless a new agreement between SPONSOR and TCAG is formed.

3.3.b. Discharge Upon Completion of Project. Except as to any rights or obligations which survive discharge as specified in Section 3.14 below, this Agreement shall be discharged, and the Parties shall have no further obligation to each other, upon completion of all of SPONSOR'S projects as certified by TCAG.

3.4. Indemnity. It is mutually understood and agreed, relative to the reciprocal indemnification of TCAG and SPONSOR:

3.4.a. Indemnity. SPONSOR shall fully defend, indemnify and hold harmless TCAG, and any officer or employee of TCAG, against any damage or liability occurring by reason of anything done or 5 omitted to be done by SPONSOR under the Agreement and related to SPONSOR'S Projects). It is also fully understood and agreed that, pursuant to Government Code Section 895.4, SPONSOR shall fully defend, indemnify and hold TCAG harmless from any liability imposed for injury as defined by Government Code Section 810.8 occurring by reason of anything done or omitted to be done by SPONSOR under this Agreement or in connection with any work, authority, or jurisdiction delegated to SPONSOR under this Agreement.

3.4.b. Indemnity. TCAG shall fully defend, indemnify and hold harmless SPONSOR, and any officer or employee of SPONSOR, against any damage or liability occurring because of anything done or omitted to be done by TCAG under or in connection with any work, authority or jurisdiction delegated to TCAG under the Agreement and related to SPONSOR'S Projects). It is also understood and agreed that, pursuant to Government Code Section 895.4, TAG shall fully defend, indemnify and hold SPONSOR harmless from any liability imposed for injury as defined by Government Code Section 810.8 occurring by reason of anything done or omitted to be done by TCAG under this Agreement or in connection with any work, authority, or jurisdiction delegated to TCAG under this Agreement.

3.5. Notices. Except as may be otherwise required by law, any notice to be given shall be written and shall be either personally delivered, sent by facsimile transmission or sent by first class mail, postage prepaid and addressed as follows:

TCAG: SPONSOR:

Executive Director [Title]
Tulare County Association of Governments [Agency namel
210 N. Church St. Ste B [Agency street address]
Visalia CA 93291 [City], CA [zip code]
Fax No.: 559-733 6720 Fax No.: [Fax #]

3.5.a. Notice personally delivered is effective when delivered. Notice sent by facsimile transmission is deemed to be received upon successful transmission. Notice sent by first class mail shall be deemed received on the fifth day after the date of mailing. Either Party may change the above address by giving written notice pursuant to this paragraph.

3.5.b. Either Party may change its address by giving notice of such changes to the other Party in the manner provided in this Section 3.5. All notices and other communications shall be deemed communicated as of actual receipt or after the second business day after deposit in the United States mail.

3.6. Additional Acts and Documents. Each Party agrees to do all such things and take all such actions, and to make, execute and deliver such other documents and instruments, as shall be reasonably requested to carry out the provisions, intent, and purpose of the Agreement.

3.7. Integration. This Agreement, together with any associated Program Supplement, represents the entire Agreement of the Parties with respect to the subject matter hereof. No representations, warranties, inducements or oral agreements have been made by either of the Parties except as expressly set forth herein, or in other contemporaneous written agreements. 6 3.8. Amendment. This Agreement may not be changed, modified or rescinded except in writing, signed by all Parties hereto, and any attempt at oral modification of this Agreement shall be void and of no effect.

3.9. Independent Agency. SPONSOR renders services under this Agreement as an independent agency and TCAG is also an independent agency under the Agreement. None of SPONSOR'S agents or employees shall be agents or employees of ICAG and none of ICAG'S agents or employees shall be agents or employees of SPONSOR.

3.10. Assignment and Delegation. The Agreement may not be assigned, transferred, hypothecated, or pledged by either Party, nor may either Party delegate its duties or responsibilities hereunder, without the express written consent of the other Party.

3.11. Binding on Successors. This Agreement shall be binding upon the successors), assignee(s) or transferee(s) of the Parties. This provision shall not be construed as an authorization to assign, transfer, hypothecate or pledge this Agreement or delegate duties or responsibilities hereunder, other than as provided above.

3.12. Severability. If any part of this Agreement is determined to be unenforceable, invalid, or beyond the authority of either Party to enter into or carry out, then such determination shall not affect the validity of the remainder of this Agreement which shall continue in full force and effect; provided that, the remainder of this Agreement can, absent the excised portion, be reasonably interpreted to give effect to the intentions of the Parties.

3.13. Counterparts. This Agreement may be executed in one or more counterparts and shall become effective when one or more counterparts have been signed by both of the Parties, each counterpart shall be deemed an original, but all counterparts together shall constitute a single document. 3:14. Survival. The following provisions in this Agreement shall survive discharge of the Agreement:

3.14.a. SPONSOR. As to SPONSOR, the following Sections shall survive discharge: Section

1.7 (obligation to apply funds to Project), Section 1.8 (obligation to provide copies and retain records), and Section 1.9 (obligation to continue to manage Project).

3.14.b. TCAG. As to TCAG, the following Section shall survive discharge: Section 2.3 (right to conduct audit).

3.14.c. All Parties. As to all Parties, the following Sections shall survive discharge: Section

3.3.b. (obligation which survives termination), and Section 3.4. (mutual indemnities).

3.15. Limitation. All obligations of TCAG under the terms of this Agreement are expressly contingent upon TCAG'S continued authorization to receive and expend the funds provided by the SB 125 Program. If for any reason TCAG'S right or ability to receive or expend such funds is terminated or suspended in whole or part so that it materially affects TCAG'S ability to fund a Project, then TCAG shall 7 promptly notify SPONSOR, and the Parties shall consult on a course of action. If, after twenty-five (25) working days, a course of action is not agreed upon by the Parties, then this Agreement shall be deemed terminated by mutual or joint consent of the Parties. Any future obligation to fund a Project or any other project or projects of SPONSOR, not already specifically covered by separate Agreement, shall arise only upon execution of a new Agreement therefor.

3.16. Time. Time is and shall be of the essence of this Agreement and each and all of its provisions in which performance is a factor.

3.17. Remedies Cumulative. No remedy or election of remedies provided for in this Agreement shall be deemed exclusive but shall be cumulative with all other remedies at law or in equity. Each remedy shall be construed to give the fullest effect allowed by law.

3.18. Applicable Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California. The Parties agree that this contract is made in and shall be performed in Tulare County, California.

3.19. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the provisions of this Agreement and shall not affect the construction or interpretation of any of its provisions.

3.20. No Continuing Waiver. The waiver by either Party of any breach of any of the provisions of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of the same, or of any other provision of this Agreement.

3.21. No Rights in Third Parties. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any third party, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third party to any Party to this Agreement, nor shall any provision of this Agreement give any third party any right of subrogation or action over or against any Party to this Agreement.

3.22. Exhibits and Recitals. The Recitals and Exhibits to this Agreement are fully incorporated into and are integral parts of this Agreement.

3.23. Signatory's Warranty. Each Party warrants to each other that it is fully authorized and competent to enter into this Agreement in the capacity indicated by that Party's signature below and agrees to be bound by this Agreement as of the day and year first mentioned above upon the execution of this Agreement by each other Party.
8 IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement on the day and year first written above.

TULARE COUNTY ASSOCIATION OF GOVERNMENTS ATTEST:

By: By:

Chair of TCAG TCAG Executive Director
Governing Board

CITY OF FARMERSVILLE
By: ATTEST:

Mayor
By:

City Clerk]
APPROVED AS TO FORM: APPROVED AS TO FORM:

OFFICE OF TULARE COUNTY COUNSEL
By: By:

Deputy Counsel for SPONSOR
Counsel for TCAG
•
9 JLK/10-21-2024/20241704/2259178.docx

APPENDIX
BUDGET ACT OF 2023
SB 125 FORMULA-BASED TRANSIT

AND INTERCITY RAIL CAPITAL

PROGRAM &

ZERO EMISSION TRANSIT

CAPITAL PROGRAM

FINAL GUIDELINES
SEPTEMBER 29, 2023
CalSTA

CALIFORNIA STATE TRANSPORTATION AGENCY
10 SB125 FINAL GUIDELINES - FORMULAIC FUNDING
Contents
1 Authority and Purpose .....2
2 Objectives .....3
3 Eligible Recipients and Funding Distribution 4
4 Schedule. ... 7
5 Eligible Projects. 8
Requirements for Funding Allocations..... .. 11
7 Approval and Programming... ....20
8 Project Delivery and Reporting... ...21
9 Project Administration.. ..22
Attachment 1: CCI Funding Guidelines for Administering Agencies... ..23 Investments to Benefit Disadvantaged Communities and Low-Income Communities and Households ..23 Attachment 2: Quantification Methodology and Co-Benefit Assessment Methodology. 24 CCI Quantification and Reporting Materials.. .. 24
Attachment 3: Benefit Criteria Tables .. ..26
CCI Benefit Criteria Tables ...... 26
September 29, 2023
2 1 Authority and Purpose
The Transit and Intercity Rail Capital Program (TIRCP) was created by Senate Bill (SB) 862 (Chapter 36, Statutes of 2014) and modified by SB 9 (Chapter 710, Statutes of 2015), to provide grants from the Greenhouse Gas Reduction Fund (GGRF) to fund transformative capital improvements that will modernize California's intercity, commuter, and urban rail systems, and bus and ferry transit systems, to significantly reduce emissions of greenhouse gases, vehicle miles traveled, and congestion. The legislation of these bills is codified in Sections 75220 through 75225 of the Public Resources Code (PRC). Assembly Bill (AB) 398 (Chapter 135, Statutes of 2017) extended the Cap-and-Trade Program that supports the TIRCP from 2020 through 2030. SB 1 (Chapter 5, Statutes of 2017) continues to provide a historic funding increase for transportation with funds directed to the TIRCP from the Public Transportation Account (PTA).

AB 102 (Chapter 38, Statutes of 2023) and SB 125 (Chapter 54, Statutes of 2023) amended the Budget Act of 2023 to appropriate $4,000,000,000 of General Fund to the TIRCP over the next two fiscal years as well as $910,000,000 of GGRF funding and $190,000,000 of PTA funding over the next four fiscal years to establish the Zero-Emission Transit Capital Program (ZETCP). These guidelines are specifically developed to facilitate the award of these funds to projects in an expeditious manner.

These guidelines include elements of the policy, standards, criteria, and procedures for the development, adoption, evaluation and administration of the TIRCP last updated for Cycle 6 (which delivered its last tranche of funding for project awards in July 2023) but are unique to this particular cycle of TIRCP funding. In allowing the funds covered by these guidelines to be available for operating costs, the guidelines are also required to be aligned with the legislative intent described in subdivision (d) of Section 75226 of, and subdivision (f) of Section 75260, of the Public Resources Code. They will be further informed by input received through workshops, public comments and written responses to be received by September 14, 2023.

SB 125 provided additional direction with regards to the funding appropriated in the Budget Act of 2023. It created specific categories for funding as follows:

A) $3,995,000,000 over the next two fiscal years shall be distributed pursuant to a population-based formula to regional transportation planning agencies (RTPA) as defined in Section 7 of these guidelines. The bill authorizes RTPAs to use the moneys for high-priority transit capital projects consistent with the uses allowed in Cycle 6 of the TIRCP, which includes existing projects seeking to maintain or obtain federal or local funding commitments, project development for major projects that are seeking to enter or have already entered project development with federal partners, or for new TIRCP projects. As in Cycle 6, all capital projects must both increase ridership and reduce greenhouse gas emissions, in common with traditional TIRCP project requirements. The funding may also be used to fund transit operating expenses that prevent service cuts and increase ridership for operators within the RTPAs jurisdiction, subject to compliance with requirements and further detail described in Section 6 of these guidelines.

B) $1,100,000,000 over the next four fiscal years shall be for the establishment of the Zero-Emission Transit Capital Program (ZETCP) and requires funds under the program to be allocated to RTPAs pursuant to a population-based formula and another formula based on transit operator revenues within the jurisdiction of these RTPAs, as specified (the formula described is consistent with the current State Transit Assistance formula). The bill authorizes RTPAs to use the moneys for zero- emission transit equipment, including, but not limited to, zero-emission vehicles and refueling infrastructure and, subject to compliance with requirements described in Section 6 of these guidelines, to use those moneys to fund transit operating expenditures that prevent service reduction or elimination in order to maintain or increase ridership.

NOTE: Cycle 7 of TIRCP, funded with the regular GGRF and SB1 sources, is expected to be delayed approximately two months from its regular calendar, with a call for projects around December 1, 2023 and September 29, 2023
3 applications due around March 1, 2024. The proposed timeline reflects eligible applicant feedback and will allow applicants to incorporate the regional choices made under SB 125 when determining what to submit to the competitive TIRCP cycle. Based on this timeline, the Program of Projects would be announced around June 1, 2024.
2 Objectives
The TIRCP was created to fund transformative capital improvements that modernize California's intercity rail, bus (including teeder buses to intercity rail services, as well as vanpool and micro transit services that are eligible to report as public transit to the Federal Transit Administration), ferry, and rail transit systems (collectively referred to as transit services or systems inclusive of all aforementioned modes unless otherwise specified) to achieve all of the following policy objectives, as codified in Section 75220(a) of the PRC:

1. Reduce emissions of greenhouse gases

2. Expand and improve transit service to increase ridership

3. Integrate the rail service of the state's various rail operations, including integration with the high-speed rail system

4. Improve transitsafety
Additionally, Section 75221(c) of the PRC codifies a programmatic goal to provide at least 25 percent of available funding to projects that provide a direct, meaningful, and assured benefit to disadvantaged communities, consistent with the objectives of SB 535. AB 1550 provides further requirements related to ensuring investments meet the needs of priority populations, a term used to cover disadvantaged communities, low-income communities and low-income households.

Investments made by TIRCP are expected to collectively meet or exceed the requirements in AB 1550. Each RTPA will need to provide information related to its projects sufficient to determine the nature of priority population benefits; however, there is no minimum requirement that each project or RTPA needs to meet for the projects submitted.

Taken as a whole, the increases in transit system ridership, as well as the reduction in vehicle miles traveled, congestion and greenhouse gas emissions, will help deliver a healthier and safer transportation system. Investments are expected to position the state to lead in the deployment of cutting edge and zero emission technologies, test innovative strategies and new approaches to reducing transportation-related fatalities, provide important new capacity in corridors that support growth in jobs and housing, and to expand multimodal transportation access and options for all Californians across all regions of the state.

Further, as outlined in SB 125, which amended the Budget Act of 2023, it is the intent of the Legislature to:
(1) provide one-time multiyear bridge funding for transit operators to address operational costs until long-term transit sustainability solutions are identified (2) assist transit operators in preventing service cuts and increasing ridership (3) prioritize the availability of transit for riders who are transit dependent (4) prioritize transit agencies representing a significant percentage of the region's ridership To that end, SB 125 specifies that the moneys appropriated in the Budget Act of 2023 may be used for high-priority transit capital projects within the project eligibility categories allowed under TIRCP in Cycle 6, and also for transit operating expenses for operators within the RTPAs jurisdiction.

Further detail on the definition of transit operator is included in Section 3.

September 29, 2023
4 3 Eligible Recipients and Funding Distribution
The first year of funding for TIRCP and the ZETCP is already available for distribution once required materials are submitted and must be fully encumbered or expended and liquidated by CaSTA by June 30, 2028. FY23-24 funds for TIRCP and the ZETCP must be disbursed to RTPAs by this deadline. Once received by the RTPA there is no deadline for the expenditure of funds.

TIRCP funding will be allocated in both FY23-24 and FY24-25 to RTPAs according to a population-based formula after each recipient first receives $300,000 of base funding.

The $410 million of first year ZETCP funding (from both PTA and GGRF sources), as well as the $230 million for each of the succeeding three years (from GGRF only), will be allocated to RTPAs pursuant to a population-based formula and another formula based on transit operator revenues within the jurisdiction of these RTPAs. This formula matches the approach used to calculate State Transit Assistance distribution.

Eligible recipients of funding are the RTPAs, as defined in Section 13987(j) of the Government Code. The current eligible recipients based on that definition and initial fund estimates by expected recipient are as follows:

G
RIPA Year 1 TIRCP Year 2 TIRCP Year 1ZETCP. Years 2 4 ZETCP Grand Total Maximum Admin (53.66% GGRE, (per yo, 100% (B+C+D+(E 3)) Share
A6.34% PTA): GORE)
Metropolitan $385,068,697 $386,040,188 $149,679,519 $83,966,559 $1,172,688,081 $5,000,000 Transportation
Commission
Alpine County $360,641 $360,794 $6,740 $3,781 $739,518 $25,000 Transportation
Commission
Amador County $2,336,465 $2,341,606 $218,158 $122,381 $5,263,373 $52,634 Transportation
Commission
Butte County $10,488,545 $10,514,269 $1,113,156 $624,454 $23,989,331 $239,893 Association of
Governments
Calaveras County $2,576,611 $2,582,360 $238,532 $133,811 $5,798,936 $57,989 Local
Transportation
Commission
Colusa County Local $1,402,047 $1,404,830 $119,153 $66,842 $3,126,556 $31,266 Transportation
Commission
Del Norte County $1,675,501 51,678,974 $149,752 $84,007 $3,756,247 $37,562 Local
Transportation
Commission
El Dorado County $9,085,857 $9,108,041 $971,781 $545,145 520,801,115 $208,011 Local
Transportation
Commission
Tahoe Regional $5,753,283 $5,767,052 $596,916 5334,855 $13,121,818 $131,218 Planning Agency
Fresno County $51,406,113 $51,535,149 $6,249,069 $3,505,575 $119,707,058 51,197,071 Council of
Governments
Glenn County Local $1,752,922 $1,756,591 $154,691 $86,778 $3,924,537 $39,245 Transportation
Commission
Humboldt County $7,130,906 $7,148,153 $825,047 5462,831 $16,492,599 5164,926 Association of
Governments
September 29, 2023
5 Imperial County [$9,362,644 $9,385,526 $1,027,524 $576,416 $21,504,942 $215,049 Transportation
Commission
Inyo County Local $1,259,080 $1,261,501 $99,284 $55,696 $2,786,952 $27,870 Transportation
Commission
Kern Council of $46,278,687 $46,394,777 $5,050,974 $2,833,473 $106,224,857 51,062,249 Governments
Kings County $7,982,701 $8,002,098 $827,175 $464,025 $18,204,049 $182,040 Association of
Governments
Lake County/City $3,706,510 $3,715,111 $370,593 5207,894 58,415,895 $84,159 Council of
Governments
Lassen County Local $1,829,937 $1,833,800 $165,103 $92,619 $4,106,698 $41,067 Transportation
Commission
Los Angeles County $498,650,905 $499,909,177 $119,494,973 567,033,765 51,319, 156,350 5,000,00 Metropolitan
Transportation
Authority
Madera County $8,254,231 $8,274,315 $850,825 $477,292 518,811,248 $188,112 Local
Transportation
Commission
Mariposa County $1,161,396 $1,163,571 $91,799 $51,497 $2,571,256 $25,713 Transportation
Commission
Mendocino Council $4,848,229 $4,859,713 $505,296 $283,459 $11,063,615 $110,636 of Governments
Merced County 514,669,424 $14,705,704 $1,558,919 5874,515 333,557,593 $335,576 Association of
Governments
Modoc County $739,160 $740,269 $49,336 $27,676 $1,611,794 $25,000 Local
Transportation
Commission
Mono County Local $976,126 $977,834 $171,629 $96,279 $2,414,427 $25,000 Transportation
Commission
Transportation $22,218,449 $22,273,790 $2,975,692 $1,669,291 $52,475,803 $524,758 Agency for
Monterey County
Nevada County 55,416,406 $5,429,324 $554,558 $311,093 512,333,568 $123,336 Local
Transportation
Commission
Orange County 5160,108,526 $160,512,022 $22,473,788 512,607,247 $380,916,076 $3,809,161 Transportation
Authority
Placer County $16,356,936 $16,397,478 $1,900,006 $1,065,857 $37,851,991 $378,520 Transportation
Planning Agency
Plumas County $1,257,263 $1,259,680 $114,463 $64,211 $2,824,038 $28,240 Local
Transportation
Commission
Riverside County $123,382,700 $123,693,468 $14,828,290 $8,318,309 $286,859,385 $2,868,594 Transportation
Commission
Sacramento Area $100,321,824 $100,574,367 $13,907,018 57,801,498 $238,207,702 $2,382,077 Council of
Governments
Council of San $3,609,072 $3,617,427 5348,002 5195,221 $8,160,164 $81,602 Benito County
Governments
San Bernardino $110,856,746 5111,135,888 $13,864,934 57,777,890 $259,191,238 $2,591,912 County
Transportation
September 29, 2023
6 Authority
San Diego $48,212,817 $48,333,791 $6,181,044 $3,467,415 $113,129,896 $1,131,299 Association of
Governments
San Diego $118,515,843 $118,814,323 $17,265,263 $9,685,392 5283,651,604 $2,836,516 Metropolitan
Transit System
San Joaquin Council $39,935,609 $40,035,684 $5,031,810 $2,822,723 593,471,271 $934,713 of Governments
San Luis Obispo $14,486,636 $14,522,455 $1,569,547 $880,477 $33,220,070 $332,20 Area Council of
Governments
Santa Barbara $22,796,994 $22,853,796 $2,916,400 $1,636,030 $53,475,278 $534,753 (SCAG)
Santa Cruz County $13,771,188 $13,805,201 52,649,968 $1,486,567 534,686,060 $346,861 Transportation
Commission
Shasta Regional $9,423,391 $9,446,427 5993,316 $557,226 $21,534,813 5215,348 Transportation
Agency
Sierra County Local $463,183 $463,595 $17,533 $9,836 $973,818 $25,000 Transportation
Compou County $2,515,009 $2,520,601 $239,061 $134,108 $5,676,994 $56,770 Local
Transportation
Commission
Stanislaus Council $28,068,044 $28,133,155 $3,037,849 $1,704,159 564,356,526 $643,565 of Governments
Tehama County $3,587,498 $3,595,798 $347,323 $194,840 $8,115,139 $81,151 Transportation
Commission
Trinity County $1,109,747 $1,111,791 $86,567 $48,562 $2,453,791 $25,000 Transportation
Commission
Tulare County $24,305,505 $24,366,115 $2,748,056 $1,541,592 $56,044,453 $560,445 Association of
Governments
Tuolumne County $3,094,210 $3,101,265 $296,569 $166,368 $6,991,148 $69,911 Transportation
Council
Ventura County 542,429,785 $42,536,157 $5,066,998 $2,842,463 $98,560,328 $985,603 Transportation
Commission
Funding distributions will be only made to the above recipients, utilizing fund transfer instructions confirmed with CalSTA by the RTPA prior to transfer, which may in turn make funding available to public agencies in their jurisdiction. RTPAs have the discretion to suballocate or distribute funds within their region based on local needs, existing procedures, policies or priorities, as long as required SB 125 program requirements and goals are met, including addressing how operating needs are expected to be met with SB 125 and/or other resources.

For TIRCP and ZETCP capital projects, the RTPAs may distribute funding to public agencies eligible to receive TIRCP capital funding, including joint powers agencies, that operate or have planning responsibility for existing or planned regularly scheduled intercity or commuter passenger rail service (and associated feeder bus service to intercity rail services), urban rail transit service, or bus or ferry transit service (including commuter bus, vanpool, and micro transit services). Public agencies include local municipalities that operate transit service, construction authorities, transportation authorities, and other similar public entities created by statute. Please note that within such capital projects, with the exception of projects that are in the federal pipeline for major projects project development, the projects funded must result in September 29, 2023
7 construction being completed, as is required under traditional TIRCP funding.

For any spending on transit operations to prevent service reduction or elimination in order to maintain or increase ridership, or to otherwise increase ridership, the RTPAs may distribute funding to transit operators in their jurisdiction that are eligible to receive State Transit Assistance (STA) funding through Section 99314 at the time of distribution by the RTPA. Please note that preventing service reduction and elimination includes the broad variety of expenses required to provide service, including those related to ensuring safety and state of good repair of the vehicles and infrastructure.

RTPAs may also be the sponsor of capital and operating projects and may partner on projects with the agencies eligible to receive funding (such as doing a planning effort tied to making the underlying project more beneficial in a regional context upon implementation).

RTPAs must deposit funds into one or more dedicated bank accounts or custody accounts. Permitted investments include bank demand deposits consistent with California government code, government money market funds, U.S. Treasuries, U.S. Agency securities, California Local Agency Investment Fund (LAIF), and AAA public agency pools, to the extent permitted by RTPA policy and state statute. If a separate account is not possible, the agency may show documents of a line item or subaccount dedicated to SB 125 funds. Funds will be disbursed separately from each fund source supporting SB 125 (General Fund for TIRCP; PTA and GGRF for ZETCP) and identified as such when disbursed. RTPAs are responsible for tracking the receipt and utilization of these funds separately, and recording interest earned (or other investment income earned) on each fund source separately. The interest or investment earnings must also be spent on approved eligible projects within each program and will be accounted for when an agency submits its required Annual Report, as described in Section 9. When the recipient agency submits its Annual Report, they are required to submit a copy of their most recent bank statement. The additional spending made possible by interest or investment earnings shall be approved through submitting an Updated Program Allocation Request to CalSTA, which will approve such spending based on review of project eligibility.

RTPAs, transit operators and other public agencies expending SB 125 formula funding assume responsibility and accountability for the use and expenditure of allocated funds in accordance with these guidelines and applicable statutes. These agencies must also comply with all relevant federal and state laws, regulations, policies, and procedures.
4 Schedule
CalSTA Publishes 2023 SB 125 Guidelines September 29, 2023 Optional, time-limited, focused virtual meetings for agencies to discuss and clarify program requirements (will be scheduled by October 16-December 8, 2023 request)*
Initial Allocation Package Submittal Due December 31, 2023 Regionally Compiled Transit Operator Data Due December 31, 2023 Requested Funding Will be Allocated No Later Than April 30, 2024 *Comments and requests for meetings can be submitted to:

[email protected]
September 29, 2023
8 5 Eligible Projects
TIRCP Funding ($3.995 billion)
In orderto be eligible for TIRCP capital project funding under this program, a capital project must demonstrate that it will achieve a reduction in greenhouse gas emissions using the relevant sections of the ZETCP Quantification Methodology. It must also demonstrate an increase in ridership.

As codified in Section 75221(a) of the PRC, projects eligible for funding under the program include, but are not limited to, the following:

1. Rail capital projects, including intercity rail, commuter rail, light rail, and other fixed guideway projects. Additionally, the acquisition of rail cars and locomotives, and the facilities to supportthem, that expand, enhance, and/or improve existing rail systems and connectivity to existing and future transit systems, including the high-speed rail system.

2. Intercity, commuter, and urban rail projects that increase service levels, improve reliability, or decrease travel times, infrastructure access payments to host railroads in lieu of capital investments, efforts to improve existing rail service effectiveness with a focus on improved operating agreements, schedules, and minor capital investments that are expected to generate increased ridership, as well as larger scale projects designed to achieve significantly larger benefits.

3. Rail, bus, and ferry integration implementation, including:
a. integrated ticketing and scheduling systems and related software/hardware capital investments (including, but not limited to, integration with bus or ferry operators and the use of contactless payment and General Transit Feed Specification (GTFS) implementation through Cal-ITP)
b. projects enabling or enhancing shared-use corridors (both multi-operator passenger only corridors as well as passenger-freight corridors)
c. related planning efforts focused on, but not limited to, delivery of integrated service not requiring major capital investment, such as transit route and schedule integration (or coordination)
d. other multimodal and service integration initiatives, including active transportation and other access investments which increase transit and rail ridership and reduce greenhouse gas emissions

4. Bus rapid transit and other bus and ferry transit investments (including autonomous fixed guideway, vanpool, and micro transit services operated as public transit and first-/last-mile solutions), and to increase ridership and reduce greenhouse gas emissions. This includes large scale deployment of zero emission vehicles and the technologies to support them, and capital investments as a component implementing transit effectiveness studies that will contribute to restructured and enhancedservice.

Grade separations and grade crossing improvements on passenger rail corridors or related to transit projects are eligible, as they are under the discretionary TIRCP. In addition to providing safety benefits, these projects often provide certain roadway based (and sometimes rail related) greenhouse gas emission reductions and a small increase in ridership (tied to reductions in train delays and cancellations tied to incidents at the crossing, and sometimes speed increases that occur after crossings are improved or eliminated). In some cases, ridership increases from such projects are more significant if they are necessary to increase train frequency.

Projects related to mitigating the impacts on freight rail services that are caused by growth in passenger rail may also be eligible for TIRCP funding even if they are not directly on the passenger rail corridor.

Projects that link housing with key destinations and that improve accessibility to economic opportunities are also eligible for TIRCP funding.

Demonstration projects that are smaller-scale efforts with great potential to be expanded are eligible for September 29, 2023
9 funding.

Projects may include new approaches to attracting increased ridership such as smart phone mobile ticketing, contactless payment, or other software and hardware solutions to reduce ticketing transaction costs, or a test of a concept related to integrated ticketing, as well as intercity rail/transit effectiveness or operational planning as a component of the capital investments in improved, expanded and/or restructured service designed to cost-effectively increase ridership. Research, development, and testing of emerging technologies are eligible components. Clean fleet, facility and network improvement projects may also request funding for Zero Emission Mobility Programs, in lieu of Zero Emission Vehicle purchase, in compliance with Innovative Clean Transit Regulation Section 2023.5.

Many TIRCP applicants have met the requirements for reducing greenhouse gas emissions and increasing ridership through combining related capital investments that may individually address only one or the other benefit. Many TIRCP applicants have also augmented their chosen capital projects with key network integration planning studies that consider how to enhance the benefits of their projects (in connecting to other transit and rail systems), or planning efforts that consider a later phase of capital investment and the benefits it will bring to the current proposed project when constructed at a later date.

Agencies may apply to TIRCP Cycle 7 or later for projects that use SB 125 resources for new projects, either to complete project funding or to expand project scope; SB 125 funding will be counted as matching funds in future TIRCP discretionary grant applications. Additional guidance will be provided in the TIRCP Cycle 7 guidelines.

Additionally, RTPAs may suballocate funds to agencies in their jurisdiction so agencies may use this funding to support projects that have previously received a TIRCP award and require an additional infusion of resources to deliver the original scope. RTPAs may also allocate funding to any project awarded funds in Cycle 6 that pledged to use future TIRCP formula funds as match, in accordance with the direction provided in the Cycle 6 guidelines. RTPAs may assume that any funding from these SB 125 resources will help obtain or maintain funds from federal, state and local sources already committed to the projects, and document this benefit for their own projects, and require such documentation of benefits from project sponsors for other projects, in their Allocation Package submissions. Agencies shall state which project is seeking additional funds, identifying the Cycle 1 through 6 project, and whether the funding is needed for the full project scope or for a subcomponent.

RTPAs may suballocate funds to agencies in their jurisdiction so agencies may also use this funding for project development activities, similar to the "Major Projects Project Development Reserve" that was established in the Cycle 6 guidelines, including use of additional funding for projects that received funding for such projects in the Cycle 6 awards. While projects and programs of projects do not need to be ready for construction, agencies should identify how their project or program of projects will be eligible to apply for TIRC construction funding in the future and what specific federal, state and other funding programs they are planning to utilize for construction funding. As in Cycle 6, such projects must either be pursuing Capital Investment Grant funding through the Federal Transit Administration (FTA) or be parht of the pursuit of Federal Railroad Administration funding through the Corridor Identification Program. Projects not pursuing federal funds for construction from FTA or planning to pursue FRA capital funding for construction through one of the Bipartisan Infrastructure Law programs are not eligible. Agencies may apply to TIRCP Cycle 7 or later for projects that use SB 125 resources for project development; SB 125 funding will be counted as matching funds in future TIRCP discretionary grant applications.

RTPAs that are themselves the capital project sponsor may also utilize funds for their own projects.

RTPAs are also authorized to use TIRCP moneys, subject to compliance with requirements described in Section 6 of these guidelines, to fund transit operating expenses within its jurisdiction that prevent service cuts and increase ridership, including those related to ensuring safety and state of good repair of the vehicles and infrastructure necessary to operate service, as well as those that pay for free and reduced fare programs. Planning expenses related to implementation of ridership recovery and retention strategies are also eligible as operating projects, whether at the September 29, 2023
10 RTPA or STA-eligible transit operator level. RTPAs that are themselves the operator of transit services may also utilize funds for their own operations. Service planning necessary to experiment with, demonstrate or implement significant service modifications may be funded as an operating expenditure at either the RTPA or transit operator level.

ZETCP Funding ($1.1 billion)
Pursuant to SB 125, zero-emission transit equipment, transit facility and network improvement projects such as those that support replacing aging vehicle fleets with Zero-Emission Vehicles (ZEVs), and associated fueling or charging infrastructure or facility modifications, are eligible projects for the Zero-Emission Transit Capital Program (ZETCP). ZEVs include heavy- and light-rail vehicles, buses, and other ZEVs used for transit service. Clean fleet, facility and network improvement projects may also request funding for Zero Emission Mobility Programs, in lieu of Zero Emission Vehicle purchase, in compliance with Innovative Clean Transit Regulation Section 2023.5.

GGRF funds used on these projects (53.7% of the first year and 100% of years 2-4) will require submission of information described in the ZETCP Quantification Methodology, as expending GGRF funds requires benefits reporting. They also require compliance with the CARB Funding Guidelines applicable to all GGRF funding, including semi-annual benefits reporting and identification of benefits to priority populations.

ZETCP funding may also be used for transit operations expenditures that prevent service reduction or elimination in order to maintain or increase transit ridership, in accordance with the provisions described in Section 6 of these guidelines, including those related to ensuring safety and state of good repair of the vehicles and infrastructure necessary to operate service, as well as those that pay for free and reduced fare programs. Planning efforts necessary to implement one or more of the Innovative Clean Transit Plan efforts within the region, and planning expenses related to implementation of ridership recovery and retention strategies, may be programmed as an operating expense out of the PTA portion of funds disbursed to each RTPA, but must be requested in an Allocation Package submission covering the FY23-24 funding year.

A maximum of 1% of total multi-year SB 125 funding, or $5 million, whichever is lower, may be programmed by the RTPA for RTPA administration of SB 125 funding across both the TIRCP and ZETCP, and for planning expenses related to preparing and implementing the initial short-term financial plan, updates to the short-term financial plan, and the long-term financial plan, including planning expenses related to implementation of ridership recovery and retention strategies. If less than $25,000 would be available under this formula, a maximum of $25,000 shall be available to such RTPAs for RTPA administration and planning expenses. As the RTPAs are tasked with developing the regional long-term financial plan for their jurisdictions, there is no requirement to program and suballocate funds to transit operators for this purpose, although they may do so at their discretion. The RTPAs can procure professional services or use their own staff to gather the reports, data and relevant information needed to develop the regional long- term financial plan required by SB 125. This request must be made in the Allocation Package submissions covering FY 23-24 funding from the ZETCP due on December 31, 2023, as an operating project associated with the RTPA, as most funding will be drawn from the Public Transportation Account resources only available in that year. If included in the December 31, 2023 submission, funds may be applied to expenses incurred at any point in the RTPAs FY23-24 fiscal year, including those incurred prior to receipt of funding, subject to RTPA policies that allow such reimbursement. Very small RTPAs may be directed by CalSTA to program the balance of funding from 1s* year General Fund resources available under TIRCP if there are insufficient PTA funds available to meet their requested administrative funding amount. Small RTPAs are encouraged to combine planning efforts if feasible. Should RTPAs be part of project-specific project management, resources required for those efforts are to be separately identified as part of the funding requested for each project, as appropriate.

September 29, 2023
11 6 Requirements for Funding Allocations
Each RTPA seeking allocation of funding shall complete an Initial Allocation Package by December 31, 2023. Allocation Packages are encouraged to describe the full four-year plan for use of formulaic funds if already known, understanding that each year's funds are subject to appropriation in the respective budget year. However, Allocation Packages are expected to be updated for future years should there be any change in funding availability or projects selected for funding distribution. Allocation packages will be treated in accordance with Public Records Act requirements and certain information, subject to those requirements, may be publicly disclosed.

Each Allocation Package shall include, as applicable, the following:

A. A signed cover letter, with signature authorizing and approving the request by the eligible RTPA.

This cover letter should also confirm that the RTPA developed the plan in consultation and coordination with its transit operators.

B. An Allocation Package Narrative Explanation, covering most of the requirements for the regional short-term financial plan for immediate service retention required by statue. This narrative explanation is required by December 31, 2023, unless the RTPA declares that none of the STA- eligible transit operators eligible to receive funding within their jurisdiction will have an operational funding need for SB 125 or additional discretionary or nonformula state funding between the 2023- 24 fiscal year and the 2026-27 fiscal year, inclusive. It also must declare that it will not use the SB 125 funding as operating funding for any of its STA-eligible transit operators (or its own transit operations, when the RTPA also operates transit service). Such declarations may take the place of the narrative explanation, if applicable. Even if such declarations are made, the regional Allocation Package Narrative Explanation will still be a required submission by December 31, 2024, in order to receive a timely allocation of FY24-25 funding from SB 125 sources.

The Allocation Package Narrative Explanation shall include the following:
i. An explanation of what funding and service actions are being taken within the region that utilize resources other than SB125 funding. This explanation incorporates the requirement to provide a demonstration of how the region will address any operational deficit, using all available funds, through the 2025-26 fiscal year, based on a 2022 service baseline. Each plan shall provide narrative and data • describing the funding approach that addresses expected operational deficits of existing STA-eligible transit operators through the 2025-26 fiscal year across all the region's STA-eligible transit operators, including strategies to use all available local, state, and federal funds to address such deficits, and the impacts such strategies may have on any capital projects. This section shall focus on the approaches the region is taking and plans to take before the use of SB 125 funds to mitigate operational deficits, both in calendar year 2023 and in future fiscal years through the end of FY25-26. When applicable, this should include reference to delay or elimination of lower priority capital projects to increase funding for operations, utilizing historically high State Transit Assistance funding tied to recent high diesel fuel prices, the use of federal transit formula funding made higher through the Infrastructure Investment and Jobs Act (IIJA) for preventative maintenance expenditures within the operating budget, or the use of higher Local Transportation Fund revenues tied to healthy sales and use tax receipts in certain counties. In some cases, strategies involving the use of non-SB 125 funds to increase transit operator funding may allow SB 125 funds to target capital needs. If utilized, such strategies should be described in this section. To the extent that such deficits cannot be fully addressed with available funds and actions, service impacts relative to the December 31, 2022 service baseline shall be described. This section shall be analyzed and reviewed for completeness. It is understood to be a summary of major September 29, 2023
12 actions taken and planned to be taken across the region based on RTPA and/or transit operator decision-making.
ii. A description and justification of the RTPA strategy to use SB 125 funding to construct capital projects and fund operating expenses that lead to improved outcomes in its jurisdiction. This section shall describe the region's overall strategy for choosing to spend the expected SB 125 funds on the capital projects and operational expenses described in its Allocation Package. This section addresses the statutory requirements to provide a justification for how the region's funding is proposed to be allocated to capital and operational expenses and provide a demonstration of how the plan will mitigate service cuts, fare increases, or layoffs relative to a 2022 service baseline to achieve short-term financial sustainability. This section shall highlight the specific manner in which SB 125 funding requested for operations will reduce or eliminate the need for service cuts, fare increases or layoffs. With recent positive results from efforts designed to increase speed of transit services, allowing similar levels of service with lower operating costs or more service with the same operating budget, this section of the Allocation Package would benefit from describing any such efforts that are proposed for the region and transit operators in question. This can include transit-specific infrastructure, stop consolidation, or other efforts. In addition, this description addresses the statutory requirement to provide a summary of how the plan will support ridership improvement strategies that focus on riders, such as coordinating schedules and ease of payment and improving cleanliness and safety, to improve the ridership experience. Since increasing ridership and the associated fare revenues is one approach to strengthening the financial performance of each region's transit operators, this section shall highlight any portion of the capital projects or any portion of operating funds that are specifically focused on supporting improvement in ridership. This section should also describe any efforts to integrate fares among transit agencies in the region or even outside of the region covered by the RTPA.

This section shall be analyzed and reviewed for completeness. ili. A detailed breakdown and justification for how the funding is proposed to be distributed between transit operators and among projects, consistent with the legislative intent described in SB 125. This section shall include a narrative (and appropriate data and tables) describing the justification for the funding distribution to each specific operator and project that is requested. If requesting spending for transit operations, this section shall address the following items identified in the legislative intent language in SB 125:

1. address operational costs until long-term transit sustainability solutions are identified

2. assist transit operators in preventing service cuts and increasing ridership

3. prioritize the availability of transit for riders who are transit dependent

4. prioritize transit agencies representing a significant percentage of the region's ridership
If requesting funding for both capital projects and transit operations, the justification for the capital project shall include discussion of the high-priority nature of the capital project and the significance of its completion to the region. In most cases, existing TIRCP-funded capital projects that are already substantially funded and in need of additional resources for completion are expected to be prioritized over beginning new projects. This narrative section should address the approach to this issue. This section shall be analyzed and reviewed for completeness.

September 29, 2023
13 C. An Allocation Package Detailed Project Description, required of all agencies requesting an allocation, regardless of whether they are required to submit a short-term financial plan by the end of 2023. This detailed project description covers all projects that are recommended by the RTPA for SB 125 funding. It does not need to fully utilize all available funds, as this document may be updated on a rolling basis throughout the period covered by SB125 funding as part of an Updated Allocation Package submission. However, for timely distribution of FY23-24 funds, this portion of the Allocation Package must be submitted by December 31, 2023, and for timely distribution of FY24-25 funds, by December 31, 2024.

The detailed project description described above must provide details about how the funding is proposed to be distributed between transit operators and among projects, both capital and operations. This section shall be analyzed and reviewed for project eligibility and completeness.

The list is divided into three sections, covering TIRCP Capital, ZETCP Capital and Operations Funding.

Required contents for each are below.

TIRCP Capital

1. If an agency is requesting allocations for funding for an existing TIRCP project (i.e., a project that has received a previous TIRCP grant, including those involving project development for major projects), they should identify the title of the project and the TIRCP cycle of award (cycles 1-6). They should also identify whether the funds will be used for the full project or for a subcomponent. Each project receiving additional funding shall identify the reason for additional funds being needed, including cost escalation, additional scope requirements or maintaining federal funding commitments. No additional GHG reduction or increased ridership benefits are required to request funds for an existing TIRCP project.

2. If an agency is requesting allocation for funding for new TIRCP-eligible projects, they shall include for each requested TIRCP capital project:
a. A summary or fact sheet (one- to two-page) that includes the following elements:
i. Implementing agency or agencies
ii. Project title
ili. Dates for the start and end of each project phase
iv. Summary of project scope
v. Total project costs, including identification of the amount of funding used for project management as budgeted for the agency or agencies involved (inclusive of RTPA project management)
vi. Identification of the source, type and amount of all funding b. A detailed project schedule, including the project's current status, and the completion dates of all major delivery milestones.
c. Project Location - provide a map for each of the following:
i. Project location denoting the project site. Provide a KML file for the project with the transit route/project location represented by lines and stops represented by points as applicable.
ii. In addition to showing where housing exists, provide information on housing density and planned/zoned/permitted/etc. housing density. This information may come from planning documents and/or zoning code if other approaches are not readily available.

September 29, 2023
14 ili. In addition to illustrating existing employment centers, provide information on employment density, mix of employment types, and planned future employment land uses. This information may come from planning documents and/or zoning code if other approaches are not readily available. iv. Planned and existing active transportation infrastructure (what currently exists, what is planned, and what would be funded by the project. d. An explanation of greenhouse gas reducing features of the project such as project components that improve air quality and reduce greenhouse gas emissions along a specific corridor, surrounding land use density, housing and employment centers, transit- oriented development/sustainable communities strategy projects, active transportation infrastructure and other features, to the extent available. For all construction projects, agencies are required to submit a copy of the California Air Resources Board (CARB) Quantification Methodologies (QMs) and Calculator Tools for estimating greenhouse gas (GHG) emission reductions and co-benefits identified in Attachment 2.
e. An explanation of expected ridership benefits of the project when constructed, including how the project supports better integration of transit services in the region among modes and providers if applicable.
f. If applicable, an explanation of how some or all of the project is expected to provide direct, meaningful, and assured benefits to a disadvantaged community, low-income communities or low-income households as defined by SB 535 and AB 1550.

3. If agencies plan to use this funding for only project development activities for a new project, they are required to show how their project or program of projects will be eligible to apply for TIRCP construction funding in the future. If the project would not be eligible to apply for TIRCP as a new project, it will not qualify for funding for project development. Agencies shall also demonstrate that they have entered into, or have applied to enter into, federal project development processes for at least a portion of the project or program of projects, and that they expect to receive federal funding in the future once complete with project development.

If the agency expects to be able to leverage state funding to provide the match necessary to obtain federal planning funds, this should also be identified. The required detail for project development only is as follows:
a. A summary or fact sheet (one-to two-page) that includes the following elements:
i. Implementing agency or agencies
ii. Project title
ili. Dates for the start and end of each project development phase, as well as the anticipated date of construction
iv. Summary of overall project scope for the constructed project, with an emphasis on project development scope
v. Total project costs for project development, and an estimate of the fully constructed project cost if available
vi. Identification of the source, type and amount of all funding for the project development phase and intended funding for the construction phase b. A detailed project schedule for the project development phase, including the project's current status, and the completion dates of all major delivery milestones. c. Description and map designating the project location September 29, 2023
15 d. An explanation of greenhouse gas reducing features of the project such as project components that improve air quality and reduce greenhouse gas emissions along a specific corridor, surrounding land use density, housing and employment centers, transit- oriented development/sustainable communities strategy projects, active transportation infrastructure and other features, to the extent available. No GHG emissions reduction quantification is required, but can be acknowledged, if available. e. An explanation of expected ridership benefits of the project when constructed, including how the project supports better integration of transit services in the region among modes and providers if applicable.
f. If applicable, an explanation of how some or all of the project is expected to provide direct, meaningful, and assured benefits to a disadvantaged community, low-income communities or low-income households as defined by SB 535 and AB 1550.

ZETCP Capital
If an agency is requesting allocation for funding for ZETCP capital projects, they shall include for each requested ZETCP capital project:
a. A summary or fact sheet (one-to two-page) that includes the following elements:
i. Implementing agency or agencies
ii. Project title
iii. Dates for the start and end of each project phase
iv. Summary of project scope
v. Total project costs, including identification of the amount of funding used for project management as budgeted for the agency or agencies involved (inclusive of RTPA project management)
vi. Identification of the source, type and amount of all funding b. A detailed project schedule, including the project's current status, and the completion dates of all major delivery milestones.
c. Project Location - provide a map for each of the following, where relevant:
i. Project location denoting the project site. Provide a KML file showing project location(s) and impacted transit lines.
ii. In addition to showing where housing exists, provide information on housing density and planned/zoned/permitted/etc. housing density. This information may come from planning documents and/or zoning code if other approaches are not readily available.
iii. In addition to illustrating existing employment centers, provide information on employment density, mix of employment types, and planned future employment land uses. This information may come from planning documents and/or zoning code if other approaches are not readily available. iv. Planned and existing active transportation infrastructure. d. An explanation of greenhouse gas reducing features of the project. For all construction projects, agencies are required to submit a copy of the California Air Resources Board (CARB) Quantification Methodologies (QMs) and Calculator Tools for estimating greenhouse gas (GHG) emission reductions and co-benefits identified in Attachment 2. e. At the time of the Allocation Package submission, applicants are required to submit a job co-benefit modeling tool, which is based upon a co-benefit assessment methodology September 29, 2023
16 developed by CARB. This tool can be found here:
https://ww2.arb.ca.gov/resources/documents/cci-methodologies f. An explanation of how some or all of the project is expected to provide direct, meaningful, and assured benefits to a disadvantaged community, low-income communities or low- income households as defined by SB 535 and AB 1550. Agencies must evaluate the criteria detailed by CARB (see Attachment 1) and complete the CARB benefit criteria table in Attachment 3, to determine whether the project meets criteria for providing direct, meaningful, and assured benefits to a disadvantaged community, low-income community, and/or low- income households and address a community need pursuant the CARB's Funding Guidelines, and document the manner in which all or part of the project does so. If an agency plans to engage in additional efforts to consult with disadvantaged or low- income stakeholders as part of project development, a specific task and budget for the proposed activities should be included in the project application. i. It is a goal of programs using GGRF resources to maximize benefits to disadvantaged communities and low-income communities and households. Pursuant to the requirements of SB 535, as amended by AB 1550, the overall California Climate Investments Program funded with Cap-and-Trade auction proceeds must result in:
(1) a minimum of 25% of the available moneys in the GGRF to projects located within, and benefiting individuals living in, disadvantaged communities, (2) an additional minimum of 5% to projects that benefit low-income households or to projects located within, and benefiting individuals living in, low- income communities located anywhere in the state, and (3) an additional minimum of 5% either to projects that benefit low-income households that are outside of, but within a 1/2 mile of, disadvantaged communities, or to projects located within the boundaries of, and benefiting individuals living in, low-income communities that are outside of, but within a 1/2 mile of, disadvantaged communities. ii. Information on California Climate Investments to Benefit Disadvantaged Communities with background on SB 535, AB 1550 and the CalEPA California Communities Environmental Health Screening Tool 4.0 (CalEnviroScreen), can be found at: https://calepa.ca.gov/EnvJustice/GHGInvest/
g. Identification of whether.the entire project, or only certain components, address AB 1550 benefits, and identification of the portion of the budget related to those components.
h. An explanation of expected ridership benefits of the project when constructed, if any.

Transit Operations Funding
If an agency is requesting an allocation of funding for transit operations for one or more of the STA- eligible transit operators in its jurisdiction, it shall include the following information for each operator covered by its request:

1. Name of Transit Operator

2. 2022-23 Ridership for the Operator and Operator's Percent of Region's Total Ridership

3. Amount of Funding Requested, by source (TIRCP or ZETCP) and Budget Year

4. List of Specific Activities Funded by the Request, quantified where possible:
a. Amount of service being paid for by the additional funding expressed in both revenue service hours and by nature of service retention, restoration or increase invested in (e.g. preventing a reduction in frequency on one or more routes (or systemwide), frequency increases on particular routes or launch of new routes made possible by the funds). Costs involved in maintaining current September 29, 2023
17 operations may include those necessary for ensuring safety and state of good repair of the vehicles and infrastructure necessary to operate service and shall be identified with respect to the current service level they are protecting. In some regions, a different STA-eligible operator may be better able to implement increased or restored service levels than the original operator. This flexibility is allowed and should be noted in the project description when utilized.
b. Identification of operating expenses invested in increased safety and security measures
c. Identification of operating expenses that are intended to increase ridership, including those that fund actions to improve coordination of routes and schedules

5. Identification of benefits to transit dependent riders of activities funded by the request D. A summary Excel table including the proposed uses of TIRCP and ZETCP funds by fiscal year of availability, up to the levels presented in Section 3 above. Uses shall be subdivided between funding for capital projects and funding for operations expenses, with each project and its implementing agency specifically identified, and each operator that will receive operations funding also specifically identified. An Excel template to be used in submitting this required information will be available on the CalSTA website within the Subject Area page dedicated to SB125 Funding. This table should contain data that matches the information submitted in the Allocation Package Detailed Project Description. The data table shall indicate the funding year from which funds are encumbered to the project or operating expense by the RTPA. Actual expenditure of funds may be in that year or a future year, as necessary for the project or operation.

E. Agencies must also submit regionally representative transit operator data in coordination with transit operators providing service within the jurisdiction of the regional transportation planning agency. Regionally representative operator data is expected to include all State Transit Assistance- receiving agencies that are also direct reporters to the National Transit Database (NTD), as well as any additional agencies that are expected to receive either operating or capital project funding from the SB 125 funds. Exceptions are noted below. This data collection is aligned with some of the expected data needs for the Transit Transformation Task Force. For agencies to receive an allocation of funds in the 2023-24 fiscal year, the transit operator data must be submitted by December 31, 2023. CalSTA and Caltrans will review the data submissions for completeness, understanding the quality of the data may vary between operators. RTPAs are not required to confirm the data accuracy compiled from their transit operators. If the transit operator data does not meet the following requirements or is incomplete, agencies will have an opportunity to remedy their submission and receive access to the funding after the requirements are met, by no later than April 30, 2024. The regionally representative transit operator data shall include, but is not limited to:
i. Existing fleet and asset management plans by transit operators. Innovative Clean Transit Plan developed for CARB will be considered an already-responsive component of this requirement. Operators that are required to submit Asset Information Module data to the FTA's National Transit Database (whether on their own or as part of a group plan) should confirm the last time period for which data was submitted, and whether they submitted their data as part of a group plan. If such data is already submitted to the NTD by Caltrans, the most recent submission should be noted and referenced. If the STA-eligible transit operators within an RTPA's jurisdiction have operator-specific fleet and/or asset management plans developed for their own management purposes, or for compliance with FTA Capital Investment Program requirements, the most recent version of such plans should be submitted.

September 29, 2023
18 il. Revenue collection methods and annual costs involved in collecting revenue for each transit operator and regional transportation planning agency involved, by payment instrument. The methods (payment instruments) of revenue collection should be noted and described for all operators covered by the data submission requirements, including reference to use of cash fareboxes, transit passes and tickets available for sale at different locations and in different media, use of mobile ticketing and/or use of smart cards or contactless payment. Information on revenue collection costs shall also be submitted for those operators or regional agencies that are able to identify specific costs in their operating or capital budgets associated with such revenue collection costs. Annual cost should be related to annual revenue for each STA-eligible transit operator that has relevant data to report. For operators that have no identifiable expenses and are not NTD reporters, fare revenues shall still be submitted for the most recent fiscal year in question. For regional agencies that have revenue collection costs without collecting fare revenues directly, the revenue collection costs should be reported by payment instrument, along with an indication of which operators are served by such revenue collection efforts.

1. The dataset shall include, for each transit operator or regional transportation planning agency involved in revenue collection (as applicable):
a. Total cost of revenue collection and total revenue collected for the most recent fiscal year
b. Cost of revenue collection by payment instrument (where available, even if only for certain instruments and not all) and total revenue collected by those same payment instruments, for the most recent fiscal year.

2. Planned capital costs related to fare collection in the next 4 years, if any are planned (including those within expected transit vehicle or other procurements).
iii. A statement of existing service plan and planned service changes through the end of 2023-24, and schedule data in General Transit Feed Specification (GTFS) format.

The goal of this data submission is to provide up to date representation of schedules by transit operator. Nearly all transit agencies of the state are providing their data in GTFS format on a regular basis, and are required to start doing so by FTA regulations by 2024. Such data is already visible to the public and to state agencies as indicated below. Compliance with these statutory requirements may be met by each operator confirming that their current schedule data is correct (an accurate representation of the service that the customer will see in operation), and that future service changes will be translated into an updated GTFS format on a timely basis. If a service change is planned during FY 23-24, an estimated date for submission of GTFS data should be indicated.

A brief summary of the existing service plan and changes to the levels of service planned by operator, at a level that is representative of the larger planned changes but does not need to cover minor changes, shall accompany the allocation package.

Major frequency changes, or addition or discontinuance of routes, should be reflected, but not minor routing or scheduling changes. In addition, changes in total amount of revenue service hours planned for this current fiscal year shall be reported, along with the timeframe for such a change.

1. Existing service is assumed to have been described in the agencies most recent GTFS feed / GTFS Realtime feed. A list of agencies and September 29, 2023
19 associated
September 29, 2023
20 feeds can be found at https://data.ca.gov/dataset/cal-itp-gtfs-ingest- pipeline-dataset/resource/e4ca5d4-e9ce-40aa-a58a-3a6d78b042bd. If this is in error, please contact [email protected]. More general information specific to reporting in GTFS may be found at https://dot.ca.gov/cal- itp/california-minimum-general-transit-feed-specification-gtfs-guidelines.

2. For the proposed service plan, the ideal format is a GTFS feed, representing, at a minimum, proposed weekday, Saturday and Sunday service, planned scenario. Otherwise, we will accept frequency or new line-based changes. (i.e., line X goes from every 20 minutes to every 10 minutes during peak periods, defined as 6am-9am and 4pm to 7pm).

3. The phasing plan for any proposed service changes.
iv. Expenditures on security and safety measures. This data should be submitted by those agencies that have current or changed levels of expenditure that are specific to security (including cybersecurity) and safety measures, if applicable to the agency or operators covered by the report. This information is expected to highlight those regions and agencies that are expending significant funding, in order to consider this in the context of the Transit Transformation Task Force and to consider the role such spending may play in restoring and increasing ridership. Not all agencies and operators are expected to have specific data in this area. v. Opportunities for service restructuring, eliminating service redundancies, and improving coordination amongst transit operators, including, but not limited to, consolidation of agencies or reevaluation of network management and governance structure. RTPAs with efforts involving these activities across their region or involving specific operators shall provide a summary of the opportunities they are pursuing or have acted upon, including any reports on such opportunities.

Technical assistance in addressing the required contents of the Initial Allocation Package and any future updates maybe requested by emailing the SB 125 e-mail address at [email protected].

Assistance may be provided by CalSTA, Caltrans or CARB, depending on the nature of the specific question.

Applicants are reminded that while initial allocation packages are due by December 31, 2023, they may submit updates to such packages on a rolling basis that CalSTA anticipates reviewing on a 30- to 60-day timeline for approval of additional allocations of funding, up to the limit available for the RTPA at the relevant point in the program.

RTPAs are also required to make publicly available (i.e., posted online) a summary of monthly ridership data, consistent with the data submitted to the FTA's NTD, from all its transit operators and should cover the time period starting on July 1, 2022, through at least June 30, 2028. The monthly reports should include ridership data for each mode of public transportation service that the agency operates. This information will provide the public with monthly trends in ridership and service supplied throughout the year, and also allow for a comparison of ridership recovery compared to this same time last year.

Caltrans will provide all RTPAs with a summary report each month that meets the requirements of this statutory provision, drawn from the data reported to the National Transit Database. The data will be drawn from the NTD at: Complete Monthly Ridership (with adjustments and estimates) | FTA (dot.gov).

RTPAs are required to post a link to this report and data in a manner easily accessed by the public, so that ridership trends within their region can be easily reviewed, in order to receive approval for their allocation packages. For RTPAs with transit operators who do not report monthly data to the NTD, Caltrans will include the most recent annual ridership numbers provided to the NTD. RTPAs may publish September 29, 2023
21 additional ridership data for agencies that do not report monthly to the NTD at their discretion, in order to allow public understanding of the changes in ridership experienced over the SB 125 funding time period
Unrelated to the Allocation Package submissions, agencies are required to submit and receive approval of a one-time, long-term financial plan by June 30, 2026, that addresses the approach to sustain the region's transit operations absent additional discretionary or nonformula state funding to maintain eligibility for future TIRCP funding in the 2026-27 fiscal year and beyond. This plan will be analyzed and reviewed for completeness.

Each long-term financial plan shall include, but is not limited to:

1. Demonstration of the implementation of ridership retention and recovery strategies, including, but not limited to, policies that prioritize safety and cleanliness and streamlined coordination between transit operators, such as schedule coordination, reduced boarding times, operational management, and site sharing, to improve rider experience.

II. A five-year forecast of operating funding requirements with detail on all sources of funding proposed for operations, including any new local and regional funding sources being pursued and the progress and improvements implemented since the last submitted regional short-term financial plan.

Technical assistance as it relates to the development of long-term financial plans may be offered from CalSTA and/or Caltrans. RTPAs are expected to utilize existing plans and documents that address the requirements of the long-term financial plan where possible, including the use of supplemental materials or addenda that address the long-term plan requirements and reference back to their existing plans as applicable. CalSTA analysis and review for completeness will only extend to content required by the provision of SB 125. Additional guidance will be developed and articulated in future updates to these guidelines, per the legislative intent of SB 125.
7 Approval and Programming
Once an agency's Initial Allocation Package is received, along with verification that monthly ridership data as required by statute is available on each regional agency's website, CalSTA will review and analyze the submitted documents for completeness and for project eligibility with a commitment to facilitate these funds to projects in an expeditious manner and not infringe on the local decision-making processes that determined the specific projects proposed for funding. If all projects are eligible and the documentation is complete, CalSTA will notify the RTPA that its package is approved, publish the information on its SB125 Transit Formula Program subject area page, and authorize disbursement of applied-for funds to the RTPA. If Initial Allocation Packages are incomplete, RTPAs will be promptly notified and allowed to address areas of incompleteness. If any projects are found to be ineligible, RTPAs will be provided an opportunity to choose between ether remedying the ineligible project (or replacing it with another) prior to having the entire package approved, or advancing all projects that are eligible and addressing the ineligible project in a future Updated Allocation Package. CalSTA will maintain a Program Allocation Report that will incorporate all approved projects (both capital and operating) that will be updated in any quarter during which additional approvals of Initial Allocation Packages or Updated Allocation Packages have been made.

Agencies are not required to fully apply for all available funding at the time of Initial Allocation Package submission. Unrequested monies, or the request to program interest earned on deposited funds that have not yet been disbursed to implementing agencies, may be requested in a future Updated Allocation Package. If an agency chooses to request previously unrequested funding or reprioritize funding between projects (including the addition or deletion of a project from their approved project list), an Updated Allocation Package shall be submitted for approval, including a Summary of Changes section immediately after the cover letter authorizing submission, and any updates to the project information in the document September 29, 2023
22 relative to the request. Such documents will be reviewed and analyzed upon receipt for completeness and project eligibility with a commitment to facilitate these funds to projects in an expeditious manner and not infringe on the local decision-making processes that determined the specific projects proposed for funding, with the approved changes included in the quarterly updates to the Program Allocation Report. Notification will be provided to each submitting agency within 30 to 60 days of submission of an Updated Allocation Package regardless of whether the next quarterly Program Allocation Plan has been published. 8 Project Delivery and Reporting
To the extent that recipients specify existing TIRCP projects that already have competitive TIRCP funding awards, CalSTA and Caltrans will work with each project sponsor to update project program supplements to reflect the use of these supplemental resources on the project under its delegated authority from CaSTA.

The first year of funding for TIRCP and the ZETCP is already available for distribution once required materials are submitted and is expected to be fully encumbered or expended and liquidated by June 30, 2028. FY23-24 funds for TIRCP and the ZETCP must be disbursed to RTPAs by this deadline. Once received by the RTPA there is no deadline for the expenditure of funds. Agencies may spend SB 125 funds in any order relative to other state, federal and local funds.

As a condition of ongoing disbursement of requested SB 125 funds, the RTPAs must submit to CalSTA an Annual Report documenting the activities and progress made toward implementation of the projects and operating expenditures, which includes total SB 125 expenditures to date and total amount remaining.

Recordkeeping and reporting requirements will apply through the life of the projects.

As previously noted, recipients must deposit funds into a dedicated bank account that will hold only SB 125 funds. If a separate account is not possible, the agency may show documents of a line item or subaccount dedicated to SB 125 funds. These funds must also be spent on eligible projects and will be accounted for when an agency submits its required Annual Report.

A reporting template will be distributed prior to the first annual report being due by December 31, 2024.

A final delivery report for completed capital projects may also be required, to provide notification of the completion of the project and confirmation of its placement into service. Additional guidance may be developed and articulated in future updates to these guidelines, per the legislative intent of SB 125, and may include the development and distribution of a final delivery report template in the future.

Consistent with CARB's Funding Guidelines, local agencies are required to report on job co-benefits, in addition to all other reporting requirements, for funding associated with the ZETCP. Job co-benefits refer to California jobs supported, not created, by California Climate Investments. Jobs supported by California Climate Investments include direct, indirect, and induced employment.

At the time of the Allocation Package submission for the ZETCP, agencies are required to submit a job co- benefit modeling tool, which is based upon a co-benefit assessment methodology developed by CARB.

Once an awarded project has been implemented, funding recipients will also be required to report actual (not modeled) jobs data via the semi- annual reporting process. Note that these requirements are only for the ZETCP and are not necessary for the SB 125 TIRCP funding. Projects accessing funding from the ZETCP may also be required to submit reporting information related to greenhouse gas reductions and priority population benefits in accordance with the CARB's Funding Guidelines (see Attachment 1).

Implementing agencies should note that additional Project Outcome Reporting may be required for TIRCP or ZETCP capital projects. Caltrans may provide assistance through Cal-ITP on scheduling, real-time information and payments to streamline reporting requirements.

The State of California has the right to review project documents and conduct audits during project implementation and over the life of the project. Caltrans or another State agency may audit a sample of SB September 29, 2023
23 125 projects to evaluate the performance of the project, or compliance with state and federal laws and regulations, contract provisions; and program guidelines, and whether project deliverables (outputs) and outcomes are consistent with the project scope, schedule, and benefits described in the Allocation Package.

A report on the projects audited must be submitted by the auditing agency to CaSTA.

In addition, agencies that receive ZETCP funding under this program shall submit a report to CalSTA, no later than October 31, 2024, and annually by October 31 of subsequent years, that includes the following information:
a. How much funding is to be used for operating costs, if any. b. The number, type, date, and location of zero-emission buses, trains or other vehicles purchased, if any.
c. The number, type, date, Open Charge Point Interface (OCPI) data, and location of electric charging stations or hydrogen fueling stations purchased and installed, if any. d. The nameplate capacity of installed equipment in kilowatts for electric charging stations and kilograms per day for hydrogen fueling stations, if any. e. The total costs and the source of funding for vehicles and equipment purchased using these funds.

Additional guidance related to the ZETCP annual report will be provided at least six months before its required submission.
9 Project Administration
Projects awarded funding from SB 125 are expected to document and publicize the TIRCP and ZETCP in proper context when developing press releases and board documents, or in hosting public events such as project groundbreakings. References should be made to TIRCP, ZETCP, the California State Transportation Agency as the program sponsor, and the state programs as fund sources, as applicable, in order to ensure transparency regarding the funding of the projects. Additional details may be provided.

Agencies must encumber and expend monies consistent with State law and ensure that GGRF monies are utilized consistent with the expenditure record submitted by CalSTA and required by SB 1018. A determination that use of GGRF monies is not consistent with the expenditure record and does not further the purposes of AB 32 may occur during legal proceedings or during an audit or program review conducted by the Bureau of State Audits, Department of Finance, a third-party auditor, or CARB.

Depending on the outcome of those proceedings or review, agencies may be required to return monies to the state if expenditures are not consistent with the statutory requirements (such as not furthering the purposes of AB 32).

If a short-term financial plan does not meet the content and completeness requirements outlined in section 6, or if specific projects described do not meet eligibility requirements, agencies will have an opportunity to remedy their plan and receive access to the funding after the requirements are met.

Audits and on-site monitoring can take place at any time at the discretion of CaSTA, without prior warning given to the agency. CaSTA has the right to audit the project records, including technical and financial data of the Project Applicant, the Implementing Agency, and any consultant or sub-consultants at any time after award, during the course of the project and for three years from the date of the final closeout of the project, therefore all project records shall be maintained and made available at the time of request.

The state may terminate the disbursement of funds if it learns of or otherwise discovers that there are allegations supported by reasonable evidence that a violation of any state or federal law or policy by the recipient which affects performance of this funding, or any other grant agreement or contract entered into with the State. If funding disbursement is terminated, or project approval revoked, the September 29, 2023
24 agency may be required to fully or partially repay funds from the TIRCP or ZETCP.

Attachment 1: CCI Funding Guidelines for Administering Agencies (applies to ZETCP Recipients Using GGRF Funds)
Investments to Benefit Disadvantaged Communities and Low-Income Communities and Households The California Air Resources Board (CARB) released the "Funding Guidelines for Agencies Administering California Climate Investments" (Funding Guidelines) on August 30, 2018.

The 2018 Funding Guidelines provide flexibility in implementing a diverse set of investments while laintaining transparency of outcomes and ensuring meaningful community benefits from thes nvestments. These guidelines align with the Legislature's priorities found in AB 398 and Fiscal Year (F 2017-18 appropriations. These guidelines reflect the increasingly important role of California Climate Investments in tacilitating the reduction of greenhouse gases while also reducing air pollution, helping communities adapt to the impacts of climate change, and providing meaningful benefits to disadvantaged communities, low-income communities, and low-income households (also referred to as "priority populations"), among other statutory requirements.

CARB collaborates with agencies that administer California Climate Investments programs to develop individual targets for each program to drive investments that achieve direct and meaningful benefits to priority populations and help ensure that statutory requirements are met, which are described in AB Additional information can be found at the following CARB websites:
https://ww2.arb.ca.gov/resources/documents/cci-funding-guidelines-administering-agencies September 29, 2023
Attachment 2: Quantification Methodology and Co-Benefit Assessment Methodology CCI Quantification and Reporting Materials
Administering agencies using ZETC GRF funding for capital expenditures must use the Funding Guidelines with the resources provided by CARB to develop effective programs and demonstrate compliance with program requirements.

Resources include Quantification Methodologies (QMs) and Calculator Tools for estimating greenhouse gas (GHG) emission reductions and co-benefits; Benefit Criteria Tables (BCTs) for determining benefits to priority populations; and Reporting Templates for reporting outcomes.

CARB staff developed the TIRCP QM and associated Calculator Tool to provide guidance for estimating the GHG emission reductions and selected co-benefits for each proposed project type. The calculator tool automates methods described in the QM document, outlines documentation requirements, and provides a link to a step-by-step user guide with project examples. Projects will report the total project GHG emission reductions and co-benefit estimated using the TIRCP Calculator tool as well as the total project GHG emission reductions per dollar of GGRF funds.

The TIRCP Calculator Tool will be used for most ZETCP capital projects, and also for developing quantification estimates for new TIRCP capital projects using SB 125 funds.

Using many of the same inputs required to estimate GHG emission reductions, the TIRCP Calculator Tool will estimate the following co-benefits and key variables from TIRCP projects ROG emission reductions (Ibs),
NOx emission reductions (ibs),
PM2.5 emission reductions (Ibs),
Diesel PM emission reductions (Ibs),
Passenger VMT reductions (miles),
Fossil fuel use reductions (gallons),
Fossil fuel energy use reductions (kWh),
Passenger travel cost savings ($), and
Energy and fuel cost savings ($).

While many ZETCP and TIRCP projects will use the TIRCP calculator tool, there are some project types that may not be covered by a single tool. CARB staff have developed the ZETCP QM by compiling the calculator tools from TIRCP, LCTOP, the Affordable Housing and Sustainable Communities (AHSC) program, the Low-Income Weatherization Program (LIWP), and the Low Carbon Fuel Production (LCFP) Program. The LIWP calculator can be used to calculate the benefits from solar panel and microgrid installations. The LCFP calculator can be used to calculate the benefits from alternative fuel generation in either a new facility or an expanded, existing facility.

All CARB co-benefit assessment methodologies are available at:
https:/ww2.arb.ca.gov/resources/documents/cci-methodologies Reporting templates are developed specifically for each program within California Climate Investments. These templates are used by TIRCP staff to report on outcomes from all projects funded by TIRCP, and are expected to also be used to report on outcomes for ZETCP GGRF-funded projects. Additional quantification tools will be identified by CARB for ZETC project types that are not covered by current quantification tools, generally September 29, 2023
26 utilizing select tools used by existing GGRF programs.

Additional information can be found at the following CARB website:
https://ww2.arb.ca.gov/resources/documents/cci-quantification-benefits-and-reporting-materials Co-benefit Assessment Methodology
California Climate Investments support the State's climate change goals and provide many additional benefits to individuals, households, businesses, and communities. These "co-benefits" include social, economic, and environmental benefits. CARB provides guidance on quantification methods and reporting to administering agencies. CARB contracted with the University of California, Berkeley (UC Berkeley) to help research and develop methods for evaluating project co-benefits. Guidance on using the co-benefit assessment methodologies is contained in CARB's Funding Guidelines.

The co-benefits were prioritized based on administering agency input and broad applicability to California Climate Investments programs. UC Berkeley first reviewed the scientific data to determine if methods could be developed and summarized the findings in literature reviews.

Next, UC Berkeley and CARB developed Co-benefit Assessment Methodologies where feasible.

CARB solicited public comment on draft versions in Spring 2018 prior to posting final Co-benefit Assessment Methodologies. CARB may review and update assessment methodologies periodically based on new or evolving project types; new legislation; available resources; new scientific developments or tools, or modifications in the analytical tools or approaches upon which the methodologies were based; or input from administering agencies or the public.

The California Air Resources Board is updating the Co-benefit assessment methodology. See the following website for the final methodology.
https://ww2.arb.ca.gov/resources/documents/cci-methodologies September 29, 2023
Attachment 3: Benefit Criteria Tables
CCI Benefit Criteria Tables
ZETCP will use the Sustainable Transportation Benefit Criteria Table developed by CARB to ensure that programs meet the minimum levels of investments to projects that benefit residents of disadvantaged communities, low-income communities, and low-income households, collectively referred to as "priority populations".

All projects counting toward the statutory investment minimums must be located within an identified community and benefit individuals living within that community, or directly benefit residents of low- income households anywhere in the State. Administering agencies must determine if a project meets the criteria for providing direct, meaningful, and assured benefits to priority populations using the following evaluation approach:

Step 1: Identify the Priority Population(s). Be located within a census tract identified as a disadvantaged community or low-income community, or directly benefit residents of a low-income household.

Step 2: Address a Need. Meaningfully address an important community or household need for the disadvantaged community, low-income community, or low-income household.

Step 3: Provide a Benefit. Using the evaluation criteria, identify at least one direct, meaningful, and assured benefit that the project provides to priority populations. The benefit provided must directly address the identified need.

Only investments that meet these criteria will be counted toward achieving the statutory investment minimums identified for priority populations. Administering agencies can fund projects that otherwise provide meaningful benefits, but do not meet these criteria; however, those projects will not be counted toward investment minimum.
27 RESOLUTION NO. 2025-050

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FARMERSVILLE, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE A SB 125 PROGRAM COOPERATIVE AGREEMENT

WITH THE TULARE COUNTY ASSOCIATION OF GOVERNMENTS
WHEREAS, the State of California, through the 2023 Budget Act, established the SB 125 Program to provide tormula-based funding under the Transit and Intercity Rail Capital Program (TIRCP) and the Zero Emission Transit Capital Program (ZETCP); and
lanning Agency tor lulare County,
within its jurisdiction; and
WHEREAS, the City of Farmersville is an eligible sponsor and desires to access SB 125 Program funds to support transit capital improvements and/or operational costs consistent with state guidelines; and WHEREAS, execution of the SB 125 Program Cooperative Agreement is required to establish the framework for Farmersville to receive and utilize its share of SB 125 Program funds.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Farmersville hereby authorizes the Mayor to execute the SB 125 Program Cooperative Agreement with the Tulare County Association of Governments in substantially the form attached hereto, and to take any actions necessary to carry out the intent of this resolution.

PASSED AND ADOPTED this 22nd day of September, 2025, by the following vote:

AYES:

NOES:_
ABSENT:_
ABSTAIN:

Tina Hernandez, Mayor Rochelle Giovani, City Clerk
CITY OF Item #: 1

STAFF REPORT
Action Items
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: City Manager
FROM: Daymon Qualls, City Manager
AGENDA TITLE: Appointment of Voting Delegate and Alternates for the 2025 Cal Cities General Assembly

ACTION & RECOMMENDATION
Staff recommends that the City Council:

1. Appoint one voting delegate and up to two alternates to represent the City at the 2025 Cal Cities General Assembly, to be held on October 10, 2025, during the Annual Conference and Expo in Long Beach.

Direct staff to submit the completed delegate appointment form to Cal Cities no later than September 24, 2025.

BACKGROUND | ANALYSIS
Each year, the League of California Cities (Cal Cities) convenes a member-driven General Assembly during its Annual Conference and Expo. The General Assembly serves as the primary voting body on policy resolutions that may shape Cal Cities' positions on statewide issues impacting cities.

Each member city is entitled to one voting delegate, appointed by the City Council. The delegate, along with up to two alternates, represents the City in voting on resolutions considered at the General Assembly. Approved resolutions become official Cal Cities policy.

The 2025 Annual Conference and Expo will take place in Long Beach, with the General Assembly scheduled for Friday, October 10, 2025. Cal Cities requires all cities to submit their designated voting delegate and alternates by September 24, 2025.

Appointing a delegate ensures the City's voice is represented in statewide policy matters that affect local control, municipal authority, and city operations. Delegates may be elected or appointed city officials and should be available to attend the General Assembly either as part of full conference participation or through registration for the Friday session only.

Should Cal Cities receive proposed policy resolutions by the August 9 deadline, staff will provide them to the Council for review and discussion in advance of the conference. This will allow the City's voting delegate to be fully prepared for the deliberations and voting process.

FISCAL IMPACT
There is no direct fiscal impact to appointing a delegate. Conference registration and related travel expenses, if applicable, would be paid from the approved City Council travel and training budget.

ATTACHMENTS

1. Cal Cities Voting Delegate Appointment Packet (2025) Reviewed/Approved:

LEAGUE OF

CALIFORNIA
CITIES
Council Action Advised by September 24, 2025
DATE: Wednesday, July 16, 2025
TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Oct. 8-10, 2025 Long Beach Convention Center
Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Taking place on Oct. 10, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

Action by Council Required. Consistent with Cal Cities bylaws, a city's voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

Following council action, please submit your city's delegates through the online Folo ne ontl y wed, epe submission portal by Wed., Sept. 24. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.

Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.

Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

LEAGUE OF

CALFORNIA
CITIES
For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Please view Cal Cities' event and meeting policy in advance of the conference.

Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.

Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 8, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 9, 7:30 a.m.-4:00 p.m. On Friday, Oct. 10, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city's voting delegate and alternates.

Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 24. If you have questions, please contact Zach Seals at [email protected].

Attachments:

General Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly 1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

LEAGUE OF

CALIFORNIA
CITIES
General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city's voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658 8200 • calcities.ora LEAGUE OF How it works: Cal Cities

CALIFORNIA
CITIES Resolutions and the General Assembly
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure cal Cities represents cilies with one voice. These policies directly guide Cal Cities advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cilies policy. If a resolution is approved at the General Assembly, it becomes official Cal Clies policy, Here's how resolutions and the General Assembly work.

Prior to the Annual Conference and Expo Who's who
Cal Cities policy
General Resolutions Policy Committees development is a member- Sixty days before the The Cal Cities informed process,
Annual Conference President assigns grounded in the voices and and Expo, Cal Cities general resolutions experiences of city officials members may submit to policy committees throughout the state. policy proposals on
where members
issues of importance review, debate, and recommend The Resolutions Committee to cities. The resolution must includes representatives positions for each policy proposal.
have the concurrence of at least from each Cal Cities
Recommendations are forwarded
five additional member cities or diversity caucus, regional to the Resolutions Committee.
individual members. division, municipal
department, and policy
committee, as well as
During the Annual Conference an xpo
individuals appointed by
the Cal Cities president.

Petitioned Resolutions Resolutions Committee
The petitioned The Resolutions Voting delegates
resolution is an Committee considers are appointed by each alternate method all resolutions, General member city; every city to introduce policy Resolutions approved' by has one voting delegate, proposals during either a policy committee
the annual conference. The or the Resolutions Committee are next The General Assembly is a petition must be signed by considered by the General Assembly. meeting of the collective voting delegates from 10% of General resolutions not approved, or body of all voting member cities, and submitted to referred for further study by both a delegates —one from the Cal Cities President at least policy committee and the Resolutions every member city. 24 hours before the beginning Committee do not go to the General of the General Assembly. Assembly. All Petitioned Resolutions Seven policy committees are considered by the General meet throughout the year
Assembly, unless disqualified? to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
General Assembly members from each Cal
During the General Assembly, voting delegates Cities diversity caucus, debate and consider general and petitioned regional division, and resolutions forwarded by the Resolutions municipal department, Committee. Potential Cal Cities bylaws as well as individuals amendments are also considered at this meeting. appointed by the Cal Cities president.
'The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. = Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f).

For more information visit www.calcities.org/general-assembly CITY OF STAFF REPORT Item #: 2
Action Items
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: City Manager
FROM: Daymon Qualis, City Manager
AGENDA TITLE: Presentation of Community Survey Results Regarding Potential Cannabis Café Ordinance Amendment

ACTION & RECOMMENDATION
Staff recommends that the City Council receive the results of the community survey regarding cannabis consumption lounges ("Cannabis Cafés") and provide direction on potential next steps.

BACKGROUND | ANALYSIS
On May 12, 2025, the City Council considered the implications of Assembly Bill 1775 (AB 1775), which authorizes local jurisdictions to permit on-site cannabis consumption at licensed retail premises. Council directed staff to conduct a community survey to gather feedback on whether Farmersville should consider amending its municipal code to allow cannabis cafés.

The survey was conducted online via SurveyMonkey and through a single handwritten submission, available from July 24, 2025 - August 29, 2025. A total of 236 online responses and 1 handwritten survey were received. While the survey provides insight into community perspectives, staff cannot verify the validity of all responses; online responses may include multiple submissions by the same individual, and it is not possible to confirm that all respondents reside within Farmersville. Results should therefore be considered informational rather than statistically conclusive.

Key findings from the survey include:
• Residency: 74.6% of respondents indicated they live within the City limits, while 26.7% do not. • Awareness: 65.3% were aware that California law now allows cities to permit cannabis consumption lounges.
• Support for cannabis cafés: 78.7% strongly support, 3.0% somewhat support, 2.6% neutral/no opinion, 1.7% somewhat oppose, and 14.0% strongly oppose. The single handwritten survey strongly opposed the proposal.

Concerns (multiple selections allowed): Public safety (22.1%), youth exposure (19.6%), increased traffic (14.5%), increased crime (13.2%), impact on property values (7.2%), public image (12.8%), no concerns (65.5%), and all of the above (3.8%).
• Support with regulations: 81.4% would support a cannabis café if strict regulations were implemented (ventilation, age restrictions, no alcohol, etc.), 15.7% would not, and 3.4% were not sure. • Preferred regulations: Security requirements (73.4%), regular health and safety inspections (55.5%), limited hours of operation (35.8%), other (15.3%).
• Impact of offering non-cannabis food, beverages, or live entertainment: 62.5% more supportive,

2.9% less supportive, 32.1% no difference, and 4.6% not sure.

The survey suggests a community with mixed but generally favorable opinions toward allowing cannabis cafés under regulated conditions. Many respondents expressed no concerns, while others highlighted public safety, youth exposure, and traffic as primary concerns. However, due to survey limitations, these results should be used as informational guidance only.

COUNCIL OPTIONS
The City Council may choose to direct staff to prepare a draft ordinance amendment for consideration, consistent with the feedback received from the community survey. Alternatively, the Council may request additional outreach or stakeholder engagement, such as workshops or town hall meetings, before proceeding further. The Council could also decide to take no further action at this time, leaving the existing municipal code unchanged. Finally, the Council may provide alternative direction to staff based on their discussion and deliberation.

FISCAL IMPACT
No direct fiscal impact at this stage. Potential fiscal implications could include staff time for ordinance development and, if adopted, revenue from permitting fees, cannabis business taxes, and sales tax generation.

ATTACHMENTS

1. Community Survey Results
Reviewed/Approved: &
Cannabis Consumption Lounge
Q1 Do you currently live within the City Limits of Farmersville? Answered: 236 Skipped: 1
Yes
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Yes 74.58% 176
No 26.69% 63
Total Respondents: 236
1/11
Cannabis Consumption Lounge
Q2 Please select your age group
Answered: 236 Skipped: 1
21-30
31-40
41-50
51-60
51-70
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
21-30 43.22% 102
31-40 28.39% 67
41-50 16.95% 40
51-60 5.93% 14
51-70 5.93% 14
Total Respondents: 236
2/11
Cannabis Consumption Lounge
Q3 Before this survey, were you aware that California law now allows cities to permit cannabis consumption lounges where on-site consumption is allowed?
Answered: 236 Skipped: 1
Yes
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Yes 65.25% 154
No 34.75% 82
Total Respondents: 236
3 /11
Cannabis Consumption Lounge
Q4 Do you support or oppose allowing a licensed cannabis consumption lounge (where adults 21+ can legally purchase and consume cannabis) to operate in Farmersville?
Answered: 235 Skipped: 2
Strongly
support
Somewhat
support
Neutral/No
opinion
Somewhat oppose
Strongly oppose
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Strongly support 78.72% 185
Somewhat support 2.98%
• Neutral/No opinion 2.55% 6
Somewhat oppose 1.70% 4
Strongly oppose 14.04% 33
TOTAL 235
4 /11
Cannabis Consumption Lounge
Q5 Reason for your opinion to question #4
Answered: 190 Skipped: 47
5/11
Cannabis Consumption Lounge
Q6 What concerns, if any, do you have about a cannabis consumption lounge opening in the City?
Answered: 235 Skipped: 2
Public safety
Increased
traffic
Youth exposure
Impact on
property values
Public image
of the City
No concerns
Increased Crime
All of the
above
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Public safety 22.13% 52
Increased traffic 14.47% 34
Youth exposure 19.57% 46
Impact on property values 7.23% 17
Public image of the City 12.77% 30
No concerns 65.53% 154
Increased Crime 13.19% 31
All of the above 3.83% 9
Total Respondents: 235
6/11
Cannabis Consumption Lounge
Q7 Reason for your opinion to question #6
Answered: 149 Skipped: 88
7/11
Cannabis Consumption Lounge
Q8 Would you support a cannabis consumption lounge in Farmersville if it included strict regulations (e.g., ventilation requirements, age restrictions, no alcohol, etc.)?
Answered: 236 Skipped: 1
Yes
No
Not Sure
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Yes 81.36% 192
No 15.68% 37
Not Sure 3.39% 8
Total Respondents: 236
: •
8/11
Cannabis Consumption Lounge
Q9 If a cannabis consumption lounge were allowed, which regulations would you support?
Answered: 229 Skipped: 8
Limited hours
of operation
Security
requirements
•Regular health
and safety
inspections
Other (please
specify)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Limited hours of operation 35.81% 82
Security requirements 73.36% 168
Regular health and safety inspections 55.46% 127
•
Other (please specify) 15.28% 35
Total Respondents: 229
9/11
Cannabis Consumption Lounge
Q10 Would you be more or less supportive of a cannabis consumption lounge if it also offered non-cannabis food, beverages, and live entertainment (similar to a coffee shop or music venue)? Answered: 237 Skipped: 0
More supportive
Less supportive
No difference
Not sure
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
More supportive 62.45% 148
Less supportive 2.95%
•
No difference 32.07% 76
Not sure 4.64% 11
Total Respondents: 237
10 / 11
Cannabis Consumption Lounge
Q11 Do you have any additional comments, concurrent, or suggestions regarding cannabis lounges in Farmersville?
Answered: 97 Skipped: 140
11/11
CITY OF Item #: 1
STAFF REPORT Discussion Items
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: City Manager
FROM: Daymon Qualls, City Manager
AGENDA TITLE: Discussion and Direction Regarding Establishment of a Community Garden

ACTION & RECOMMENDATION
Staff recommends that the City Council discuss the concept of establishing a community garden in Farmersville and provide direction to staff on next steps.

BACKGROUND | ANALYSIS
Community gardens are shared spaces where residents can grow fruits, vegetables, flowers, and other plants.

These gardens often promote healthy lifestyles, strengthen community bonds, provide educational opportunities, and make productive use of underutilized land.

At a recent City Council meeting, Councilmembers expressed interest in exploring the creation of a community garden. Council directed staff to bring back information and options for discussion before proceeding further.

If Council wishes to move forward, several considerations and options are available:

1. Location Options
• City-Owned Property: Identify vacant parcels, parks, or other city-controlled land that could accommodate garden plots.
• Partnership with Schools or Churches: Collaborate with local institutions that may have available land and interest in shared use.
• Private Property Partnership: Explore agreements with private landowners willing to dedicate land for community use.

2. Management Models
• City-Managed Garden: City staff would oversee plot assignments, maintenance, and operations. • Nonprofit/Community-Led Model: A local nonprofit, service club, or community group would manage the garden, with the City providing land and/or initial support. • Hybrid Model: The City establishes the garden (land preparation, infrastructure), but a community- based committee or nonprofit manages daily operations.

3. Costs and Funding
• Startup Costs: Site preparation, irrigation installation, fencing, soil improvements, and signage. • Ongoing Costs: Water, maintenance, and staff time (if City-managed). • Funding Sources: Potential use of City funds, grants (e.g., health, nutrition, or environmental programs), donations, sponsorships, and small plot fees from participants.

4. Benefits and Challenges
• Benefits: Promotes healthy eating, strengthens neighborhood connections, creates educational opportunities, reduces blight on vacant land.
• Challenges: Requires long-term commitment, ongoing oversight, water and maintenance costs, and potential conflicts over plot management.

OPTIONS FOR COUNCIL CONSIDERATION

1. Direct staff to identify potential City-owned sites for use as a community garden and return with a detailed plan.

2. Explore partnerships with local organizations (schools, churches, nonprofits) and report back with partnership opportunities.

3. Pilot Project: Select a single site to develop a small-scale garden to gauge community interest and participation.

4. Take No Action at this time.

FISCAL IMPACT
At this stage, fiscal impacts are unknown. Should Council wish to proceed, staff will develop cost estimates for site preparation, infrastructure, and ongoing maintenance for Council review.

ATTACHMENTS
None
Reviewed/Approved: S2
CITY OF Item #: 2

STAFF REPORT
Discussion Items
FARMERSVILLE TO: Farmersville City Council
MEETING DATE: September 22, 2025
DEPARTMENT: City Manager
FROM: Daymon Qualls, City Manager
AGENDA TITLE: Discussion and Direction Regarding Establishment of a Farmers Market

ACTION & RECOMMENDATION
Staff recommends that the City Council discuss the establishment of a Farmers Market in Farmersville and provide direction to staff on next steps.

BACKGROUND | ANALYSIS
Farmers markets are community events that provide residents with access to locally grown produce and goods, support small businesses, and create a gathering space that enhances community connections.

At a recent meeting, the City Council expressed interest in establishing a Farmers Market in Farmersville. The Ugly Company, a local business specializing in dried fruit, has offered use of its large parking area to host the event. Council directed staff to return with an item to facilitate discussion and explore options.

1. Location
• Ugly Company Parking Area (Offered Site): Centrally located and immediately available, offering ample space for vendors and attendees.
• Other Potential Locations: City parks, streets (with closures), or other private sites could also be considered

2. Market Structure & Management
• City-Managed Model: The City organizes, promotes, and manages the Farmers Market (vendor recruitment, permitting, event logistics).
• Nonprofit/Community-Led Model: A nonprofit organization, service club, or community group takes on management, with City support.
• Hybrid Model: The City provides site coordination, permits, and initial startup support, but a committee or partner group manages ongoing operations.

3. Frequency & Timing
• Weekly: A regular weekly market (e.g., Saturdays or weekday evenings).

Monthly/Bi-Weekly: A less frequent model to gauge community interest before expanding. • Seasonal: Focused on spring and summer when produce availability is highest.

4. Costs & Funding
• Startup Costs: Marketing, event coordination, potential site improvements (lighting, signage, barricades, restrooms).
• Ongoing Costs: Staff time (if City-managed), insurance, utilities (if needed). • Funding Options: Vendor fees, sponsorships, grants (e.g., USDA Farmers Market Promotion Program), donations, or City budget allocation.

5. Benefits & Challenges
• Benefits: Supports local agriculture and small businesses, provides access to fresh food, fosters community engagement, and can attract visitors.
• Challenges: Requires ongoing management and coordination, startup costs, insurance/liability considerations, and the need for consistent vendor participation.

OPTIONS FOR COUNCIL CONSIDERATION

1. Proceed with Farmers Market at the Ugly Company parking lot under a pilot program to gauge community interest.

2. Direct staff to explore alternative or additional locations (parks, downtown areas) for hosting a Farmers Market.

3. Identify and solicit partnerships with local nonprofits, community groups, or regional organizations to manage the market.

4. Take No Action at this time.

FISCAL IMPACT
Fiscal impacts are currently unknown. If Council directs staff to proceed, staff will prepare cost estimates for startup expenses, ongoing operational costs, and potential revenue from vendor fees.

ATTACHMENTS
None
Reviewed/Approved E

Farmersville City CouncilSeptember 22, 2025

Farmersville City Council
September 22, 2025