Hanford City Council
October 4, 2022

October 4, 2022
7:00 PM – Regular Meeting
Council Chambers
400 N. Douty St.

4:00 PM CALL TO ORDER STUDY SESSION AND CLOSED SESSION:

ROLL CALL BY THE CITY CLERK:

PUBLIC COMMENT:

Comments from the public are limited to items listed on the agenda (GC 54954.3a). A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.

STUDY SESSION:

A. Presentation by Alarm Program Services (APS) regarding their automated system for the overall administration of the Alarm Permitting process for the City of Hanford.

B. Discussion regarding the impacts of homelessness in the City of Hanford; the City resources available and being used to address the issue; and direction from Counci l regarding future efforts and resources needed to address the issue.

C. Presentation to Council and Receive direction regarding proposed improvements to the Civic Auditorium.

CLOSED SESSION FOR DISCUSSION OF THE FOLLOWING:

Council Members will meet in-person in the Council
Chambers. The meeting will also be lived streamed on the City’s website: http://livestream.hanford.city/

A. CONFERENCE WITH LEGAL COUNSEL- REAL PROPERTY NEGOTIATIONS (GC 54956.8):

Property: APN 012-086-004
Agency Negotiators: Mario Cifuentez and Ty Mizote
Negotiating Party: A2Z Investments, LLC
Property: 113 Court St.

APN: 010-265-001-000
Agency Negotiators: Mario Cifuentez and Ty Mizote
Property: APNs 028-240-018, 028-240-020, 08-310-007, 028-310-008, 028-310-025 Agency Negotiators: Mario Cifuentez and Ty Mizote
Negotiating Party: City Farm Industries, Inc.; Ross Lyndon-James and Mark Askey CALL TO ORDER REGULAR SESSION:

ROLL CALL:

INVOCATION:

Ignacio Valdez
FLAG SALUTE:

CLOSED SESSION ACTION REPORT:

RECOGNITIONS/PROCLAMATIONS:

Proclamation National Fire Prevention Week October 9-15, 2022 COUNCIL GENERAL REPORTS:

Brief information-only reports from City Council and/or Staff, including committee reports and reports by City Council related to meetings attended at City expenses (AB1234).

PUBLIC COMMENT:

This is the time for citizens to comment on subject matters within the jurisdiction of the Hanford City Council. This is also the public’s opportunity to request an item from the Consent Calendar be pulled for discussion purposes or to comment on any item on the agenda. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.

CONSENT CALENDAR:

Consent Calendar items are considered routine and will be enacted in 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.

A. PROCEDURAL WAIVER: Waive reading in full of resolutions and ordinances and approval and adoption of same by reading title the only.

B. City Clerk: Approval of the Minutes of the June 7, 2022, Meeting C. City Clerk: Approval of the Minutes of the June 21, 2022, Meeting D. City Clerk: Approval of the Minutes of the June 23, 2022, Special Meeting E. City Attorney: Approval of a Purchase and Sale Agreement for the Sale of the City -Owned Parking Lot at Southeast Corner of Redington and Sixth Streets to A2Z Investments, LLC.

F. Parks and Community Services: Approval of a contract w ith Fresno Fence Connection in the amount of $98,410 for the Skate Park Fencing Project.

G. Public Works: Approval of an Annual Purchase Order with Martin Marietta, for a not to exceeded amount of $100,000 for street maintenance materials.

H. Finance: Appr oval of a Contract amendment with Avenu - MuniServices LLC, to provide Cannabis tax audit services, for a contract a mount not to exceed a $7,500 flat fee per retail establishment or 35% of additional Cannabis tax revenue collected by City, whichever is greater.

GENERAL BUSINESS:

A. Community Development: Authorization for Interwest, JAS and Rod Carsey to provide on -call plan check services and Crawford and Bowen to provide on -call environmental planning services and Willdan to provide on-call building inspection services each contract not to exceed $150,000 annually for the City of Hanford.

COUNCIL COMMENTS AND COMMUNICATION:

At this time, any Council Member may ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (GOV. CODE SEC. 54954.2) Council Future Agenda Items
Upcoming Events and Important Dates:

October 5: Coffee with Cop Starbucks 2453 E. Lacey Blvd. 7:30 am October 6: Community Outreach Event for Heroes Park 6:30 pm at the Longfield Center October 11: National Night Out Civic Park 6:00 pm – 8:00 pm October 15: Fire Department Open House, Fire Station 1 10:00 am – 2:00 pm October 18: Regular City Council Meeting
October 24: Last Day to register to vote for the November Election ADJOURNMENT:

Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available to public inspection in the City Clerk’s Office located at 319 N. Douty Street, Hanford, California 93230, during normal business hours. Such agendas are also available at the city’s website, www.cityofhanfordca.com subject to staff’s ability to post the agenda before the meeting.

If you need a disability-related modification or accommodation, including auxiliary aids or services, to participate in this meeting, please contact the City Clerk’s office, 559-585-2515, 319 N. Douty Street, Hanford, California 93230, at least 2 days prior to the meeting {28 CFR 35.102.35.104 ADA Title II}

AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: A

SUBJECT:

Presentation by Alarm Program Services (APS) regarding their automated system for the overall administration of the Alarm Permitting process for the City of Hanford.

RECOMMENDATION:

That the City Council review the presentation from APS and provide direction..

BACKGROUND:

The Alarm Program System (APS) is an automated system for generating alarm permits, renewal notices, false alarm notices and permit suspensions. The program will generate billing and includes an online appeals process. These functions are time consuming and are currently being performed by staff members from the records and communications divisions.

One of the primary focuses of APS is to reduce false alarms and create awareness in the community of the city ordinance and its goals. This includes conducting outreach campaigns via email and phone.

The Alarm Program System will assist the Hanford Police Department to lower agency costs, heighten public awareness, increase program revenues, reduce false alarms and free up valuable resources for effective emergency response.

APS is the only system that is compatible with our current CAD/RMS system.

FISCAL IMPACT:

If so approved by Council, the contract with APS would require a $12,000 annual fee, billed at $1000 per month. Costs could be partially offset by revenues collected from alarm permit fees, false alarm fees and late reinstatement fees.

ATTACHMENTS:

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AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: B

SUBJECT:

Discussion regarding the impacts of homelessness in the City of Hanford; the City resources available and being used to address the issue; and direction from Council regarding future efforts and resources needed to address the issue.

RECOMMENDATION:

That City Council provide direction on where they would like staff to focus their efforts in addressing the ongoing problem of homelessness.

BACKGROUND:

The City of Hanford and most Cities in California have a problem with homelessness. This issue impacts the people experiencing homelessness as well as all city departments, local businesses and residents.

This presentation is meant to discuss the problems that the City is experiencing in the various city departments from criminal matters that occur, dangers to our staff, and problems we experience with maintaining our city park facilities for public use. Staff will also share and discuss the problems that our residents and business are experiencing and the fiscal impact to the City for addressing the homelessness issue in Hanford.

At the end of the staff presentation, City Staff will seek direction from Council on additional efforts and resources that the City should seek to address the issue

FISCAL IMPACT:

Not impacted by this discussion. Any future financial impact would return to council.

ATTACHMENTS:

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AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: C

SUBJECT:

Presentation to Council and Receive direction regarding proposed improvements to the Civic Auditorium

RECOMMENDATION:

That the City Council receive the presentation and provide direction on the proposed Civic Auditorium Renovation Project.

BACKGROUND:

The Civic Auditorium is an iconic and beloved building that has served the community for nearly a century. This building hosts various gatherings, including community and City events, private parties, weddings, Quinces, and non-profit organization events.

As part of the continuing maintenance of the facility, several projects have recently been completed and are planned over the next 12-14 months. These projects are included within the Council adopted 2023-2027 Five-Year Capital Improvement Plan.

Building Maintenance and Repairs Completed within the Past Five Years

· 2019 - Exterior painting of the building
· 2020 - Termite abatement and prevention program initiated · 2021 - Restoration of the facade of the northeast corner of the building · 2022 - Roof replacement and roof mechanical, electrical, and plumbing components

Planned Maintenance and Repairs

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· Sewer Main Replacement - Replacement of the original clay sewer main leading from the building to Douty Street. This main line was inspected in 2021, which discovered a broken failure and general pipe deterioration. ($21,780)

· Acoustic Ceiling Replacement - Application of a new coat of acoustic material to attenuate reverberation during events. ($188,010)

· Floor Replacement - The current maple hardwood floor is the original building flooring and is 99 years old. We have reached a point where the floor cannot be sanded and resurfaced. This floor must have the ability to withstand high levels of traffic and different event seating configurations. ($206,190)

· Interior Painting - The interior walls of the building were last painted in the 1990s. ($42,060)

The proposed Civic Auditorium renovation and repairs are needed will ensure many years of successful events and various gatherings. They are indeed a vital investment in a building that represents the Hanford community's history, heritage, and community pride.

FISCAL IMPACT:

The Civic Auditorium rnovation projects are included in the 2023-2028 Five Year Capital Improvement Plan. Funding is allocated from the Accumulated Capital Outlay and the Building Capital Replacement accounts.

ATTACHMENTS:

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AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION:

SUBJECT:

Proclamation National Fire Prevention Week October 9-15, 2022

RECOMMENDATION:

That the City Council Proclaim the week of October 9-15, 2022, as Fire Prevention Week

BACKGROUND:

On July 2, 1887, the community of Hanford suffered a devastating loss of 39 businesses during a fire that ran through the town. Losses were estimated at nearly $175,000, or more than five million in today’s dollars. Shortly after the fire, townsfolk established a volunteer fire department. Just a few years later, in 1891 another fire ravished the town for hours, consuming 15 businesses. In the attempt to prevent further conflagrations, Hanford incorporated 130 years ago on August 8, 1891. Like Hanford, many communities suffered and continue to suffer great loss from fire.

Fire Prevention Week was established to commemorate the Great Chicago Fire of 1871 that killed more than 250 people, left more than 100,000 people homeless, and destroyed more than 17,400 structures. On the 40th anniversary of this tragic event, the Fire Marshals Association or North America, now the International Fire Marshals Association, decided to recognize the anniversary of the Great Chicago Fire through public education on fire prevention. In 1920, President Woodrow Wilson issued the first National Fire Prevention Day Proclamation. In 1922 this expanded to recognize the Sunday through Saturday period in which October 9th falls, in recognition of the final day of the fire, would be known as National Fire Prevention Week. In 1925, President Calvin Coolidge solidified National Fire Prevention Week into history, and it is still observed today, making it the longest running public health and safety observance on record.

Each year a theme is established by the National Fire Protection Agency (NFPA). This year’s theme is “Fire don’t wait. Plan your escape”. Specifically, having a home escape plan and practicing that plan is a critical component for the partnership in safety between the Hanford Fire Department and the citizens we serve. The NFPA key messages are:

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· Make sure your home escape plan meets the needs of all your family members, including those with sensory or physical disabilities.
· Smoke alarms should be installed inside every sleeping room, outside each separate sleeping area, and on every level of your home. Smoke alarms should be interconnected so when one sounds, they all sound.
· Know at least two ways out of every room, if possible. Make sure all doors and windows open easily.
· Have an outside meeting place a safe distance from your home where everyone should meet.
· Practice your home fire drill at least twice a year with everyone in the household, including guests. Practice at least once during the day and at night.

This year National Fire Prevention Week falls on October 9-15, 2022. The Hanford Fire Department will be holding their annual Open House in honor of this event on Saturday, October 15, 2022, at Fire Station 1 located at 350 W. Grangeville between 10:00 and 2:00. Hot dogs will be served and there will be numerous activities and safety events for people to participate in.

FISCAL IMPACT:

ATTACHMENTS:
2022 Fire Prevention Week Proclamation
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CITY OF HANFORD

PROCLAMATION

WHEREAS, 151 years ago, the Great Chicago Fire became the catalyst for change in the American Fire Service after the loss of more than 250 people and 17,400 structures; and
WHEREAS, 102 years ago, in remembrance of the Great Chicago Fire, President Woodrow Wilson issued the first National Fire Prevention Day Proclamation; and
WHEREAS, one year later, the Fire Marshals Association of North American expanded the reflection to include public education occurring during the week the October 9th fall within; and
WHEREAS, Fire Prevention Week is the longest running public health and safety observance on record; and
WHEREAS, the Hanford Fire Department is dedicated to reducing the occurrence of home fire by providing fire prevention and education; and WHEREAS, home is the location where people are at greatest risk from fire, and it is important to have working smoke and CO alerting systems to notify people of the need to evacuate; and
WHEREAS, only 8% of households surveyed by the NFPA stated their first thought upon hearing an alarm would be to get out of the house; and WHEREAS, the 2022 Fire Prevention Week theme, “Fire don’t wait. Plan your escape”, serves to remind us to have an escape plan in the event of a fire in the home.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council, do hereby proclaim the week of October 9-15, 2022

FIRE PREVENTION WEEK
In the City of Hanford and urge all citizens to learn the sounds of their smoke and carbon monoxide alarms and heed fire prevention and safety messages all year round.

Presented this 4th day of October, 2022.

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Attachment: 2022 Fire Prevention Week Proclamation (Fire: Fire Prevention Week Proclamation)

AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: B

SUBJECT:

City Clerk: Approval of the Minutes of the June 7, 2022 Meeting

Recommendation:

Approve the minutes of the June 7, 2022 Meeting.

FISCAL IMPACT:

ATTACHMENTS:

6.7.2022

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CITY COUNCIL MEETING

MINUTES
June 7, 2022 7:00 PM
Council Chambers
400 N. Douty St.
4:00 PM CALL TO ORDER STUDY SESSION AND CLOSED SESSION:

Mayor Morrow called the study session and closed session to order at 4:00 p.m.

ROLL CALL BY THE CITY CLERK:

Present: Kalish Morrow, Diane Sharp, Amanda Saltray, Art Brieno

Absent: Francisco Ramirez
PUBLIC COMMENT:

Comments from the public are limited to items on the agenda (GC 54954.3a). A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.

Mark Pratter commented on rezoning Hidden Valley Park.

Bob Ramos commented on the public comment perio d during special meetings and he suggested adding seating for spectators at the Lacey Park basketball courts. He also commented on the damaged grass area at Civic Park.

Lou Martinez commented on Hidden Valley Park.

Chad Draxler commented on the approval of the fitness park located at Hidden Valley Park. He also expressed his concerns about cars being parked on the grass area at the park s. He asked why the parking ordinanc e is not being enforced.

STUDY SESSION :

A. Review of the Council's Adopted Goal for Parks in the City of Hanford and discussion related Measurable Objectives for FY 22/23 and Funding options
Parks & Community Services Director Brad Albert introduced the new Administrative Analyst Jerald Campbell. Dir. Albert also addressed the public comments made regarding Civic Park. Dir. Albert discussed the measurable objectives for FY 22/23. City Manager Cifuentez also addressed the concerns expressed during public comment. He also discussed the process of rezoning Hidden Valley Park. The Council provided feedback and shared some concerns regarding maintaining current park amenities. They also discuss ed funding options .

Staff responded to the Council's questions and c oncerns. Trust and Public Land Western Conservation Director David Weinstein (teleconference) provided an overview of the Trust Public Land (TPL) and discussed the Public Finance Feasibility Study. Mr. Weinstein also discussed critical steps for a successf ul ballot measure.

Mr. Weinstein and staff answered questions from the Council. The Council directed staff to move forward with

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Attachment: 6.7.2022 (Clerk: 6.7.2022 Minutes)
the measurable objectives wi th the modification to work toward recovery cost and user fees before seeking additional funding routes. Staff will also bring back the updated user fees and a study session item with an overview of the status of the parks.

RESULT: CONSENSUS
B. Presentation of the Fiscal Year 2021 Audited Financial Statements for the City of Hanford from the City's inde pendent external auditors Hudson, Henderson & Company, Inc. Certified Public Accountants.

Finance Director Chris Tavarez and Hudson Henderson & Company Inc. CPA Brian Henderson discussed the financial cycle and the Fiscal Year 2021 Audited Financial Statem ents. Mr. Henderson briefly highlighted and discussed the services they provided. He also discussed the timeline and completion date. Staff answered questions from the Council. The presentation was informational only, no formal action was needed.

CLOSED SESSION FOR THE DISCUSSION OF THE FOLLOWING:

The Council convened to closed session at 6:40 p.m.

CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION (GC 54956.9 (d)(2)):

Workers Compensation Claim
CONFERENCE WITH LEGAL COUNSEL-LABOR NEGOTIATIONS (GC 54957.6):

Agency Designated Representatives: Che Johnson, Mario Cifuentez, Sarah Cardoza, Chris Tavarez, and Brenda Garcia.

Employee Organizations: Hanford Police Officers Association (POA); Hanford Firefighters; Local 3898 (IAFF); Hanford General Employees Management Association (GEMA); Service Employees International Union Local 521 (SEIU); and Executive Management Employees Association (EMEA).

CONFERENCE WITH LEGAL COUNSEL-EXISITING LITIGATION (GC 54956.9 (d)(1)):

Darlene Mata v. City of Hanford
Kings County Case No. 22C0077
CALL TO ORDER REGULAR SESSION:

Mayor Morrow called the meeting to order at 7:00 p.m.

ROLL CALL:

Attendee Name Title Status Arrived
Diane Sharp Vice Mayor Present 3:55 PM
Art Brieno Council Member Present 3:59 PM
Kalish Morrow Mayor Present 3:53 PM
Amanda Saltray Council Member Present 3:59 PM
Francisco Ramirez Council Member Absent

INVOCATION:

Pastor Ken McMillan led the invocation.

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Attachment: 6.7.2022 (Clerk: 6.7.2022 Minutes)
FLAG SALUTE:

Mayor Morrow led the flag salute.

CLOSED SESSION ACTION REPORT:

None.

COUNCIL REPORTS/GENERAL REPORTS:

Brief information -only rep orts from City Council and/or Staff, including committee reports and reports by City Council related to meetings attended at City expenses (AB1234).

Mayor Morrow and Vice Mayor Sharp discussed the events and meetings they attended.

Council Member Saltray discussed the meetings and events she attended. She also discussed KCAOs programs.

Council Member Brieno nothing to report.

PUBLIC COMMENT:

This is the time for citizens to comment on subject matters not on the agenda within the jurisdiction of the Hanford City Council. This is also the public’s opportunity to request an item from the Consent Calendar be pulled for discussion purposes or to comment on any item on the agenda. Comments related to Public Hearing items will be heard at the time the item is discussed.

A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.

Jack Swartz thanked the city staff for their a ssistance with Carnegie Museum event in Civic Park. He also shared the Carnegie’s highlights and upcoming events.

Dennis Ham commented on the Planning Commission vacancy and the amended ordinance. He also expressed his concerns regarding filling the vacancy.

Mike Mendoza shared his concerns regarding General Business Item A (Amendment of Water Service Discontinuation Policy). He also thanked Vice Mayor Sharp and Council Member Brieno for their assistance with his concerns.

Travis Paden recognized the Parks and Community Services staff for their assistance for a recent community event.

CONSENT CALENDAR:

Consent Calendar items are considered routine and will be enacted in one motion.

There will be no separate discussion of these matters unless a reques t is made and then the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

Council Member Brieno pulled items I and J . Motion to approve the consent calendar except the items pulled for separate discussion.

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Attachment: 6.7.2022 (Clerk: 6.7.2022 Minutes)
RESULT: APPROVED [UNANIMOUS]
MOVER: Diane Sharp, Vice Mayor
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Morrow, Saltray
ABSENT: Ramirez
A. PROCEDURAL WAIVER: Waive reading in full of resolutions and ordinances and approval and adoption of same by reading title the only.

B. City Clerk: Denial of a claim for damag es and authorization for the City Clerk to send out notification of such to Manuel Salazar
C. City Clerk: Approval of the Minutes of the December 21, 2021 Meeting D. City Clerk: Approval of the Minutes of the January 18, 2022 Meeting E. City Clerk: Adoption of R esolution 22- 23-R Calling for the holding of a General Municipal Election to be held on November 8, 2022 and requesting the Kings County Board of Supervisors to consolidate with the Statewide General Election.

F. Fire: Second reading and Adoption of Ordinance No. 22-01, Amending most sections of Chapter

8.11 of the Hanford Municipal Code ILLEGAL FIREWORKS to update definitions, abatement procedures, penalties and re-identify the Hearing
G. Fire: Approval of the award of the 2021 State Homeland Securit y Gran t Program (SHSGP) funding, in the amount of $28,000 for the Hanford Fire Department, and Authorization to utilize the funding to Purchase Base Station and Apparatus Mobile Radios.

H. Fire: Approval of the award of the 2020 State Homeland Security Gra nt Pro gram (SHSGP) funding, in the amount of $25,650 for the Hanford Fire Department, and Authorization to utilize the funding to Purchase Portable Radios.

I. Public Works: Acceptance of Public Grant of Easement from Implacable Properties, LLC, dated May 6, 2022 for a 20’ wide Sanitary Sewer Easement for Tract 865, Unit 2.

J. Public Works: Approval of the Final Map and Subdivision Agreement for Tract No. 928, Unit No. 3, with San Joaqu in Valley Homes, and acceptance of all easements and dedications offered for pu blic use and adoption of Resolution 22- 24-R restructuring properties within Assessment District No. 20- 01 (District Restructure No. 20- 01-B) (Southeast corner of Fargo Avenue and Centennial Drive)
PULLED ITEMS:

1. Public Works: Authorization to reje ct a p reviously approved Contract with Robert Marks Plumbing and Re-Advertise the Civic Auditorium Sewer Main Replacement Project [Item I]

Pulled by Council Member Brieno.

Public Works Director John Doyel answered questions from Council Member Brieno.

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Attachment: 6.7.2022 (Clerk: 6.7.2022 Minutes)

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Art Brieno, Council Member
SECONDER: Diane Sharp, Vice Mayor
AYES: Sharp, Brieno, Morrow, Saltray
ABSENT: Ramirez

2. Public W orks: Adoption of Ordinance No. 22- 06 which amends Chapter 13.12 (Sol id Waste Collection and Disposal), Chapter 2.48 (Purchasing system), and Chapter 12.08 (Water efficient landscape design and installation) of the Hanford Municipal Code relating to compliance with SB 1383.
[Item J]

Pulled by Council Member Brieno.

Public Works Director John Doyel answered questions from the Council.

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Art Brieno, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Morrow, Saltray
ABSENT: Ramirez
GENERAL BUSINESS:

A. City Attorney: Introduction of Ordinance No. 22- 07, an Amendment of the City of Hanford's Water Service Discontinuation Policy
City Attorney Ty Mizote discussed the backgrou nd and the amendments. Mr. Mizote also addressed the comments made during public comment and answered questions from the Council. City Manager Cifuentez elaborated on the issues mentioned by Mr. Mendoza during public comment. Finance Director Chris Tavarez discussed the fee schedule and the appeal process. Staff answered questioned f rom the Council.

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Diane Sharp, Vice Mayor
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Morrow, Saltray
ABSENT: Ramirez
B. City Attorney: Re-approval of Farley Law Firm Retainer Agreement City Attorney Ty Mizote discussed the previously approved Retainer Agreement for the Farley Law Firm’s representation. He also discussed FPPC’s input regarding the confl ict of interest of Council Members Br ieno and Ramirez voting on the item. Council Member Brieno recused himself from voting.

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Attachment: 6.7.2022 (Clerk: 6.7.2022 Minutes)
Motion to approve.

RESULT: APPROVED [3 TO 0]
MOVER: Diane Sharp, Vice Mayor
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Morrow, Saltray
ABSTAIN: Brieno
ABSENT: Ramirez
C. Finance: Approval of an additional Appropriation of $3,361,645 in the GF and $8,016,639 across all Other Funds for the 2022- 23 Fiscal Year Budget and the addition of three (3) allocated positions to the position control budget, one (1) to the salary schedule.

City Manager Cifuentez addressed the missing information from the staff report. Staff will present the complete report at the June 21 st meeting for the C ouncil’s review and approval. Finance Manager D estiny Borba discussed the additional allocated position s. Building Official To m Webb discussed the need for additional staff. Council Member Brieno expressed his concer ns and commented on common violations. Vice Mayor Sharp spoke in support of the addi tion of three allocated positions . Staff answered questions from the Council.

City Manager Cifuentez addressed Council Member Brieno's concerns . No action was taken. The i tem will be presented to the Council for review and approval on June 21, 2022.

RESULT: CONSENSUS
COUNCIL FUTURE AGENDA ITEMS:

At this time, any Council Member may ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (GOV. CODE SEC. 54954.2)

It was a consensus of the council to direct staff to bring back the following items for future discussion:

Review of the first-time home buyers’ program, brought forth by Mayor Morrow , and t he Civic Auditorium improvements, brought forth by Vice Mayor Sharp.

ADJOURNMENT:

Mayor Morrow adjourned the meeting at 8:19 p.m.

Respectfully submitted,

Natalie Corral
City Clerk

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Attachment: 6.7.2022 (Clerk: 6.7.2022 Minutes)

AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: C

SUBJECT:

City Clerk: Approval of the Minutes of the June 21, 2022 Meeting

Recommendation:

Approve the minutes of the June 21, 2022 Meeting.

FISCAL IMPACT:

ATTACHMENTS:

6.21.2022

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CITY COUNCIL MEETING

MINUTES
June 21, 2022 7:00 PM
Council Chambers
400 N. Douty St.
5:00 PM CALL TO ORDER STUDY SESSION AND CLOSED SESSION:

Mayor Morrow called the study session and closed session to order at 5:00 p.m.

ROLL CALL BY THE CITY CLERK :

Present: Kalish Morrow, Diane Sharp, Francisco Ramirez, Amanda Saltray, Art Brieno.

PUBLIC COMMENT:

Comments from the public are limited to items listed on the agenda (GC 54954.3a). A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.

Mark Pratter commented on a conversation he had with Council Member Saltray regarding funding for Hidden Valley Park. He also suggested allocating ARPA funds to expand Hidden Valley Park.

Bob Ramos suggested allocating funds to Hidden Valley Park.

William Harman commented on the fitness court at Hidden Valley Park and vandalism at the parks.

Travis Paden commented on the ARPA funds and questioned the funds that were allocated to the police department.

Larry Faria commented on Hidden Valley Park.

Dan Chin discussed quality of life and expressed his concerns regarding city parks. He also commented on the response time of the city’s first responders.

STUDY SESSION :

Finance: Presentation of t he American Rescue Plan Act (ARPA) funding information related to the $13,077,740 in funding that the City of Hanford received from Coronavirus State and Local Fiscal Recovery Fund (SLFRF) and Council direction to staff regarding the second allocation of funding
Finance Director Chri s Tavarez presented the American Rescue Plan Act (ARPA) funding information related to the $13,077,740 that the City of Hanford received from Coronavirus State and Local Fiscal Recovery Fund (SLFRF) for the Council’s direction regarding the second allocati on of funding. Public Works Director John Doyel discussed the Proposed Downtown Improvements and the estimated cost breakdown. Staff answered questions from the Council. The Council provided their feedback. Mayor Mor row, Vice Mayor Sharp and Council Member Ramirez spoke in favor of the Proposed Downtown Improvements. Council Member Ramirez

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Attachment: 6.21.2022 (Clerk: 6.21.2022 Minutes)
suggested allocating ARPA funds for the exp ansion of Hidden Valley Park. Council Member Brieno expressed his concerns regarding the proposed addition of th ree roundabouts downtown. He spoke in support of adding one roundabout and utilizing the ARPA funds for other projects.

After a lengthy discu ssion, Vice Mayor Sharp motioned to app rove the item , amending the Skate Park/Plunge Fencing Project bu dget to $125,000 an d allocating $75,000 for the expansion design of Hidden Valley Park and any project savings will be allocated to the Xeriscape Projects.

A substitute motion to remov e $ 750,000 from the Do wntown Street Economic Dev elopment Project and allocate it to the Xeriscape P rojects and W ater C onservation projects was in troduced by Council Member Brieno. Seconded by Council Member Saltray. Motion failed (2/3).

The Council convened to closed session at 6:35 p.m.

RESULT: APPROVED [4 TO 1]
MOVER: Diane Sharp, Vice Mayor
SECONDER: Francisco Ramirez, Council Member
AYES: Sharp, Morrow, Saltray, Ramirez
NAYS: Brieno
CLOSED SESSION FOR DISCUSSION OF THE FOLLOWING:

CONFERENCE WITH LEGAL COUNSEL-REAL PROPERTY NEGOTIATIONS (GC 54956.8):

Property: 330 N. Harris Street
APN: 010-276-021
Agency Negotiators: Mario Cifuentez and Ty Mizote
Negotiating Party: Stuart Clark
CONFERENCE WITH LEGAL COUNSEL -LABOR NEGOTIATIONS (GC 54957.6):

Agency Designated Representative: Che Johnson, Mario Ci fuentez, Sarah Cardoza, Chris Tavarez, and Brenda Garcia.

Employee Organizations: Hanford Police Officers Association (POA); Hanford Firefighters; LOcal 3898 (IAFF); Hanford General Employee Management Association (GEMA); Service Employees International Union Local 521 (SEIU); and Executive Management Employees Association (EMA).

CONFERENCE WITH LEGAL COUNSEL - PUBLIC EMPLOYEE PERFORMANCE EVALUATION (GC 54957 (b)(1)):

Title: City Manager
CALL TO ORDER REGULAR SESSION:

Mayor Morrow called the meeting to order at 7:08 p.m.

ROLL CALL:

Attendee Name Title Status Arrived
Diane Sharp Vice Mayor Present 4:00 PM
Art Brieno Council Member Present 4:58 PM
Kalish Morrow Mayor Present 4:50 PM
Amanda Saltray Council Member Present 4:54 PM

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Attachment: 6.21.2022 (Clerk: 6.21.2022 Minutes)
Francisco Ramirez Council Member Present 4:51 PM

INVOCATION:

The invocation was led by Pastor Candice Cortez.

FLAG SALUTE:

The flag salute was led by Mayor Morrow.

CLOSED SESSION ACTION REPORT:

None.

COUNCIL REPORTS/GENERAL REPORTS:

Brief information -only reports from City Council and/or Staff, including committee reports and reports by Ci ty Council related to meetings attended at City expenses (AB1234).

The Council discussed the meetings and events they attended.

PUBLIC COMMENT:

This is the time for citizens to comment on subject matters not on the agenda within the jurisdiction of the Hanford City Council. This is also the public’s opportunity to request an item from the Consent Calendar be pulled for discussion purposes or to comment on any item on the agenda. Comments related to Public Hearing items will be heard at the time the item is discussed.

A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.

Rose Shapley commented on the Lacey Park basketball court project and the skate park. She also brought samples of cement for staff and Council. Ms. Shapley expressed her concerns regarding community safety at the Fast Plaza.

Nick Wagner requested to pull consent items H and N for more clarification.

Bob Ramos commented on surpl us properties. He also commented on the handout that he provided to the Council regarding public housing.

Rebecca Belle expressed her concerns regarding handicap parking, shade a Freedom Park, and the Boys and Girls Club.

Travis Paden requested to pull Item J for clarification. He also suggested adding a public comment period to the end of the agenda. He also shared his ideas for the ARPA funds.

Lou Martinez expressed his concerns regarding community outreach for the roundabout project downtown. He also commented on Hidden Valley Park.

Mark Pratter thanked the Council for allocating funds for Hidden Valley Park.

Mel Weaver, owner of Mel's Towing claims that he was treated unfairly by the police department.

CONSENT CALENDAR:

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Attachment: 6.21.2022 (Clerk: 6.21.2022 Minutes)
Consent Calendar items are considered routine and will be enacted in one motion.

There will be no separate discussi on of these matters unless a request is made and then the item will be removed from the Consent Calendar to be discussed a nd voted upon by a separate motion.

Item F was pulled by Mayor Morrow, Items K and O were pulled by Council Member Brieno. Mot ion to a pprove except for the items pulled for separate consideration.

RESULT: APPROVED [UNANIMOUS]
MOVER: Diane Sharp, Vice Mayor
SECONDER: Francisco Ramirez, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
A. PROCEDURAL WAIVER: Waive reading in full of resolutions and ordinances and approval and adoption of same by reading title the only.

B. City Clerk: Approval of the Minutes of the February 1, 2022 Meeting C. City Clerk: Approval of the Minutes of the February 15, 2022 Meeting D. City Cle rk: Deni al of a claim for damages and authorization for the City Clerk to send out notification of such to Douglas Sinclair.

E. City Clerk: Denial of a c laim for damages and authorization for the City Clerk to send out notification of such to Ashlynn See.

F. Adoption of Ordinance No. 22-07 Amending Chapter 13.04 of Hanford Municipal Code and modifying late fee, interest and payment plan provisions as directed by Council G. Parks and Community Services: Adoption of Resolution 22-28-R authorizing the City Manager to execute the necessary documents to accept $256,143 in grant funding from the CalTrans Sustainable Transportation Planning Grant Program to creat e a Comprehensive Active Transportation Plan (ATP)
H. Community Development: Adoption of Resolution NO. 22- 25-R; Revising the Funding amount from the State of California Department of Housing and Community Development (HCD) Block Grant Program Corona Virus Response (CDBG-CV2) that was previously approved by Council through the adoption of Resolution No. 21-19-R
I. Community Development: Review and approval of the proposed amendment No. 1 to the Community Development Block Grant Docume nts: 2021 Annual Action Plan to provide for additional funding for parking lot improvements to the Police Activities League (PAL) facility J. Public Works: Adoption of Resolution No. 22- 26-R, thereby approving the Vacation of Excess Right of Way of Trewhi tt Street between Sixth Street and Seventh Street, and Approval of Final Parcel Map No. 2021-01
PULLED ITEMS:

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Attachment: 6.21.2022 (Clerk: 6.21.2022 Minutes)

1. Council: Adopt ion of R esolution No. 22- 31-R Designating the Mayor and Vice -Mayor as the voting delegate and alternate for the purpose of advanc ing the City’s position at the League of California Cities Annual Conferences.
[Item F]

Pulled by Mayor Morrow.

Mayor Morro w recomm ended Council Member Ramirez to be the alternate voting delegate for the 2022 League of California Cities Annual Conference.

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Diane Sharp, Vice Mayor
SECONDER: Francisco Ramirez, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez

2. IT: Approval of a contract with CivicPlus for the redesign of the City of Han ford website and new Agenda Management Software in the amount of $49,907.25 [Item H]

Pulled during public comment.

Finance Director Chris Tavarez addressed Mr. Wagner's comments and questions.

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez

3. Parks and Co mmunity Services: Adoption of Resolution No. 22- 30-R, Approving the Annual Engineer’s Report and Intention to Levy and Collect Assessments as outlined, pursuant to Chapter 3 of the Landscape and Lighting Act of 1972, and setting July 19, 2022 as th e Public Hearing date to consider the increases in assessments as proposed. [Item J]

Pulled during public comment.

Parks and Community Services Di rector Brad Albert addressed Mr. Paden's questions and comments. He also answered questions from the Council.

Motion to approve.

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Attachment: 6.21.2022 (Clerk: 6.21.2022 Minutes)
RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez

4. Community Development Department: Approval of a Professional Services Agreement with LSA Associates, Inc. (LSA) to prepare the “City of Hanford Vehicle Miles Traveled (VMT) Thresholds and Implementation Guidelines” and authorize City Manager to execute Professional Services Agreement with LSA for $48,890.
[Item K]

Pulled by Council Member Brieno

Interim Community Development Director Mary Beaty answered questions from the Council. Dir. Doyel discussed the traffic study process and the project evaluation process. City Attorney Ty Mizote discussed mitigation measures and program fees.

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Diane Sharp, Vice Mayor
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez

5. Approval of the Notice of Completion for Tract No. 928 Unit No. 1 and authoriz ation for the Mayor to execute and the City Clerk to attest and file said Notice with the Kings County Recorder’s Office.
[Item N]

Pulled during public comment.

Public Works Director addressed the questions asked during public comment.

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Diane Sharp, Vice Mayor
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez

6. Public Works: Authorization to Award a contract to MAC General Engineering of Exeter CA, in the amount of $715,720.97, establish a construction contingency of $71,600 and approve an additional appropriations of $287,300 from the TDA Transportation Fund in order to fully fund the Campus Drive Resurfacing project from Lacey Boulevard to Greenfield Avenue. [Item O]

Pulled by Council Member Brieno.

Public Works Director Doyel answered questions from Council Member Br ieno.

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Attachment: 6.21.2022 (Clerk: 6.21.2022 Minutes)

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Art Brieno, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
GENERAL BUSINESS:

A. Finance: Approval of an additional Appropriation of $3,361,645 in the GF and $8 ,016,639 across all Other Funds for the 2022- 23 Fiscal Year Budget and the addition of three (3) allocated positions to the position control budget, one (1) to the salary schedule.

Finance Director Chris Tavarez and Finance Manager D estiny Borba (teleconfe rence) discussed the additional appropriation of $3,361,645 in the General Fund and $8,016,639 across all O ther Funds fo r the 2022-23 Fiscal Year Budget and the addition of three (3) allocated positions. Staff addressed the Council's questions and concerns. The Council requested a future discussion regarding cannabis revenue. After a lengthy discussion Council Member Francisco motioned to approve as presented.

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Diane Sharp, Vice Mayor
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
B. Finance: Adoption of Resoluti on 22- 27-R es tablishing the 2022/2023 appropriations limit of $82,564,920 for the City of Hanford's General Fund
Finance Director Ch ris Tavarez discussed Resolution 22- 27-R, establishing the 2022/2023 appropriations limit of $82,564,920 for the City of Hanford's General Fund, which is mandated by the state.

Motion to approve.

RESULT: APPROVED [UNANIMOUS]
MOVER: Diane Sharp, Vice Mayor
SECONDER: Francisco Ramirez, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
C. Administration: Adoption of Resolution 22- 29-R Declaring the Property Located at 113 Court Street (Courthouse) as Surplus Property and a doption of Notice of Ex emption 2022-47, which determines that the disposition of the property is exempt from environmental review.

City Manager Cif uentez (teleconference) and City Attorney Ty Mizote discussed resolution 22 -29-R, declaring the property located at 113 Court Street (Courthouse) as Surplus Property and adoption of Notice of Exemption 2022-47. Mr. Mizote answered questions from the Council.

Motion to approve.

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Attachment: 6.21.2022 (Clerk: 6.21.2022 Minutes)
RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
COUNCIL COMMENTS AND COMMUNICATIONS:

At this time, any Council Member ma y ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Pol icies and Procedures, they may request staff to report back to the Council at a subsequent meeting concerning any matter or take act ion to direct staff to place a matter of business on a future agenda. (GOV. CODE SEC. 54954.2)

The Council addressed Mr. Weaver's comment s ma de during public co mment. Council Member Brieno requested a future discussion regarding his censure. The Council was opposed to bringing it back for further discussion.

ADJOURNMENT:

Mayor Morrow adjourned the meeting at 8:49 p.m.

Respectfully submitted,

Natalie Corral
City Clerk

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Attachment: 6.21.2022 (Clerk: 6.21.2022 Minutes)

AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: D

SUBJECT:

City Clerk: Approval of the Minutes of the June 23, 2022 Special Meeting

Recommendation:

Approve the minutes of the June 23, 2022 Special Meeting.

FISCAL IMPACT:

ATTACHMENTS:

6.23.2022 SM

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CITY COUNCIL MEETING

MINUTES
June 23, 2022 5:00 PM
Council Chambers
400 N. Douty St.

CALL TO ORDER SPECIAL SESSION:

Mayor Morrow called the meeting to order at 5:00 p.m.

ROLL CALL BY THE CITY CLERK:

Attendee Name Title Status Arrived
Diane Sharp Vice Mayor Present 4:55 PM
Art Brieno Council Member Late 5:02 PM
Kalish Morrow Mayor Present 4:55 PM
Amanda Saltray Council Member Present 4:55 PM
Francisco Ramirez Council Member Present 4:55 PM

PUBLIC COMMENT:

Comments from the public are limited to items listed on the agenda (GC 54954.3a). A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.

None.

GENERAL BUSINESS:

Planning Commission Interviews
Mayor Morrow deferred to City Manager Cifuentez for instructions. The Council agreed to a maximum of 15 minutes per candidate interview. The Council interviewed c andidates Dennis Ham and Gunther Norris Candidate Chris Jordan was not in attendance. It was a consensus to consider the two candidates present. City Manager Cifuentez received notification that Candidate Jordan had withdrawn.

Mayor Morrow called for a nomination for the vacant term, set to expire December 31, 2024.

Council Member Ramirez nominated Dennis Ham.

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Attachment: 6.23.2022 SM (Clerk: 6.23.2022 Minutes SM) RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
Mayor Morrow called for a nomination for the Alternate position.

Council Member Saltray nominated Gunther Norris for Alternate Commissioner, with a term to expire D ecember 31, 2026.

RESULT: APPROVED [UNANIMOUS]
MOVER: Amanda Saltray
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
ADJOURNMENT:

Mayor Morrow adjourned the meeting at 5:43 p.m.

Respectfully submitted,

Diana Black
Recording Secretary

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Attachment: 6.23.2022 SM (Clerk: 6.23.2022 Minutes SM)

AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: E

SUBJECT:

City Attorney: Approval of a Purchase and Sale Agreement for the Sale of the City-Owned Parking Lot at Southeast Corner of Redington and Sixth Streets to A2Z Investments, LLC.

RECOMMENDATION:

It is recommended that the Council, by motion, approve the attached Purchase and Sale Agreement and Housing Affordability Covenant and authorize the City Manager to sign those documents and associated escrow documents for the sale of the City-owned parking lot located at the southeast corner of Sixth and Redington Streets to A2Z Investments, LLC.

Recommended Motion:

I move to approve the Purchase and Sale Agreement and Housing Affordability Covenant included in the agenda packet and that the City Manager be authorized to sign those documents and associated escrow documents for the sale of the City-owned parking lot, which is located at the southeast corner of Sixth and Redington Streets, to A2Z Investments, LLC.

BACKGROUND:

The City of Hanford currently owns the parking lot located at the southeast corner of Sixth and Redington Streets. The parking lot located directly west of the Comfort Inn.

The parking lot is comprised of 75 parking spaces and is approximately 0.68 acres in size. The Comfort Inn does not have on-site parking, and the City leased the parking lot to Hanford Investors, Inc. (HII) beginning in 2000. HII owns the land on which the Comfort Inn hotel is located. Under the HII lease, which runs for fifty (50) years, HII was given exclusive use of the parking lot during the hours of 6:00 p.m. and 8:00 a.m. each day. The yearly rental amount started at $6,000.00 and has increased annually each year. A copy of the Parking Lot Lease is also attached.

HII is leasing the Comfort Inn property to A2Z Investments, LLC (A2Z), and A2Z is operating the hotel. HII assigned the Parking Lot Lease to A2Z as part of its lease of the hotel property to

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A2Z. A2Z is in the process of purchasing the Comfort Inn property and wishes to purchase the City- owned parking lot. A2Z intends to improve the parking lot and will obtain a loan to pay for the improvements. A2Z must offer the property as security for the loan, and, in order to offer the property as security, it must own the parking lot. As a result, A2Z approached the City about purchasing the parking lot.

Since the parking lot serves downtown businesses, the City checked with Main Street Hanford (MSH) about the potential sale of the lot, and MSH did not object. The terms of the A2Z Purchase and Sale Agreement for the parking lot are summarized as follows:

Total Purchase Price: $305,000.00. A copy of an appraisal for the parking lot is attached. The $305,000.00 value is shown at the bottom of page 9 of the appraisal.

Sales Contingencies
o A2Z must purchase the Comfort Inn property in order to purchase the City-owned parking lot.

In other words, the hotel and parking lot may not be owned by different parties. o A Housing Affordability Covenant must be recorded at the close of escrow to satisfy state housing laws. Even though the property will continue to be used as a parking lot, the California Department of Housing and Community Development (HCD) requires a Covenant to be recorded in every matter involving the sale of real estate owned by a local agency. o HCD must approve the sale of the parking lot to A2Z.

Deadline for Closing: October 31, 2024. This is the deadline for A2Z to purchase the Comfort Inn property.

The proceeds generated by the sale of the parking lot may be utilized by the City for a future downtown parking project.

The City Council declared the parking lot to be surplus property on July 19, 2022. Thereafter, the City sent surplus property notices to public agencies and housing sponsors as required by the Government Code. The City received no responses. The next step in the sales process involves the Council’s approval of the attached Purchase and Sale Agreement and Housing Affordability Covenant. If the Council approves Agreement and the Covenant, the documents will be submitted to HCD for review as required by the Government Code. Escrow for the sale of the property may close after receipt of HCD’s approval.

ATTACHMENTS: Purchase and Sale Agreement, Housing Affordability Covenant, Parking Lot Lease, and appraisal.

FISCAL IMPACT:

ATTACHMENTS:
2022.09.27 Affordability Covenant - Agenda Packet
2022.04.22 Comfort Inn Parking Lot Appraisal
City of Hanford Parking Lease Agreement
2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet

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1 FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

CITY OF HANFORD
319 N. Douty
Hanford, CA 93230

NO FEE FOR RECORDING

PURSUANT TO GOVERNMENT CODE
SECTIONS 6103 AND 27383

(Space Above This Line for Recorder's Office Use Only)
Housing Affordability Covenant
(Recorded Per Government Code Section 54233)
The City of Hanford, the owner of the property (“Property”) more particularly described in the attached Exhibit “A”, which is incorporated herein by reference, hereby establishes the following covenants and restrictions with respect to the Property:

If ten (10) or more residential units are developed on the P roperty, not less than fifteen percent (15%) of the total number of residential units developed on the Property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. Rental units shall remain affordable to and occupied by lower income households for a period of fifty-five (55) years for rental housing and forty-five (45) years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivis ion (c) of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor -in-interest who continues t he violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code.

Date: ______________________

CITY OF HANFORD

By: ____________________________
MARIO A. CIFUENTEZ II
City Manager

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Attachment: 2022.09.27 Affordability Covenant - Agenda Packet (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth 2 STATE OF CALIFORNIA )
) SS

COUNTY OF HANFORD )

On ______________, 2022, before me, ________________________________, Notary Public, personally appeared MARIO A. CIFUENTEZ II, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the persons, or the entity upon behalf of which the person acted, executed the instrument.

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

WITNESS my hand and official seal.

(SEAL)

________________________________

NOTARY PUBLIC

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.

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Attachment: 2022.09.27 Affordability Covenant - Agenda Packet (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth 3 EXHIBIT “A”

Legal Description

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Attachment: 2022.09.27 Affordability Covenant - Agenda Packet (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth 1 Phone: (559) 582-9112 1306 N. Irwin Street
Hanford, CA 93230
www.simonhower.com

Fax: (559) 582-9114

APPRAISAL REPORT

Parking Lot
Southeast Corner of Redington Street and West 6th Street Hanford, CA 93230

April 22, 2022

Client: Jay Patel
Anand Investments, LLC
Intended User: Jay Patel
Anand Investments, LLC

This report is for the sole use of the client and is not intended to be used by anyone other than the identified intended users above. The appraiser’s opinions and conclusions set forth in this report may not be understood properly without additional information in the appraiser’s work-file.

Real Property Interest Appraised: Fee simple estate, subject to the deed restriction.

Pertinent Dates: The effective date of the appraisal is April 15, 2022, which was the date of inspection.

Intended Use: The intended use is to establish the fair market value, as defined below, to provide a value basis for potential purchase.

Definition of Market Value: The use value is appraised in this report. The value in use is defined by the Dictionary of Real Estate Appraisal, 6th Edition as follows:

“The value of a property assuming a specific use, which may or may not be the highest and best use on the effective date of the appraisal. Value in use may or many not be equal to market value but is different conceptually.”

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 2 Note: The value conclusion reported will be the market value of the property “as is”.

Scope of Work: As part of this appraisal, we have completed the following steps to gather, confirm, and analyze the data:

• Physically inspected the subject property, and toured the surrounding neighborhood and market area;
• Collected information about the subject, surrounding market and confirmed that information with various sources;
• Prepared a highest and best use analysis of the subject site as though vacant and as improved; • Collected and confirmed market information needed to provide a reliable value conclusion; • Prepared a restricted appraisal report for evaluation purposes setting forth the conclusion derived in this analysis.

Current Ownership, Sales History and Status:

Current Owner The City of Hanford
Sales in Prior 3 years There have been no sales in the three years prior to the effective date of this appraisal.

History The site is currently improved and operating as a public parking lot.

Location Rating:

Excellent Good Average Fair Poor
Location X
Accessibility X
Condition of
Surrounding Properties
X
Location Comments: The subject property is in the heart of the downtown district of the city of Hanfor d.

Specifically, it is located at the southeast corner of Redington Street and West 6th Street.

Market Trends & Conditions:

Improving Stable Declining
Value Trend X
Vacancy Trend X
Rental Trend X
Local Economy Trend X
Comment: Commercial real estate has been appreciating. Development is evident throughout Hanford,

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 3 mainly along the 12 th Avenue corridor. In the downtown district, vacancy and rental rates have been slowly improving.

Property Description:

APN: 012-086-004; Kings County
Zoning: The subject is zoned Downtown Mixed Use (MXD) by the City of Hanford. This zoning district is designed for a mixture of commercial developments.

Size & Shape: The site is rectangular with a gross area of 0. 80 acres or 34,916 square feet, according to the Assessor’s Office. The record of Survey (attached to this document) indicates the subject parcel is 0.68 acre s, or approximately 29,743 square feet . The gross assessed acreage is used to value the subject.

Topography: Level, near street grade.

Off-Sites: Redington Street and 6 th Street are two -lane asphalt paved roadways improved with concrete curb, gutter and sidewalk.

Utilities: The City of Hanford provides water, sewer and storm drainage. Electrical and gas services are provided by utility companies at prevailing rates.

Access/Visibility: The subject has average access from 6th Street. There is no access from Redington Street. Access is average.

Other Factors: The site is not within a flood zone, seismically active zone, land preserve or wetlands area. We have not reviewed a title report. There were no detrimental easements or encroachments noted upon visual inspection. Review of a recently issued title report is a contingency of this appraisal.

Improvements: The site is improved with an asphalt parking lot, including 67 marked stalls. Mature trees and shrubs are featured in concrete planter beds around the perimeter and in the center of the parking lot. Pole mounted lighting illuminates the parking area. A concrete block trash enclosure with chain link gate sits at the east end of the site. A handicap ramp is located adjacent to the handicap stalls near the hotel.

Highest and Best Use:

Highest and Best Use, As Vacant: Commercial development

Highest and Best Use, As Improved: Utilize the existing parking lot improvements for the adjacent hotel.

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 4 Subject Photographs

6th Street frontage

Parking lot

East view on 6th Street

Handicap stalls and ADA ramp

Trash enclosure and lighting

Site entrance from 6th Street

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 5 Location Maps

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 6 Parcel Map

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 7 VALUATION

The subject lot is encumbered by a deed restriction allowing for public parking between the hours of 8:00 AM and 6:00 PM. After 6:00 PM the lot is exclusively reserved for hotel guests. Encumbered properties are typically bought and sold at a discount from the unencumbered fee value, because the utility is restricted.

In this appraisal, the unencumbered fee value will be determined and then discounted for restrictions.

The sales comparison approach is the most appropriate for vacant land ; this approach is utilized to value the underlying land component. The sales comparison approach is based upon the principle of substitution.

This principle contends an informed buyer would pay no more for a property than the price of acquiring an equally desirable substitute in an open, competitive market.

The local market was searched for sales of similar properties. The most relevant sales were identified and utilized for this comparison. Each sale has been verified with a reliable source. The market data is summarized in the following pages.

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 8 Analysis & Conclusion: After analysis, the subject’s value per square foot should be slightly above Sales 2 and 3 and near sales 4 and 5. The subject’s location is superior to Sales 4 and 5 but the subject’s larger size offsets this factor. A unit value of $6.75 per square foot is concluded and applied to the subject property.

The value of the underlying land is calculated as follows:

Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5
Location Southeast corner of
Redington Street &
6th Street
North side of 5th
Street b/t Brown
St. and S. 10th Ave.

Southeast side of
Greenfield and
Elm
Southeast side of
Greenfield and
Elm
410 E. 4th Street North side of 4th
Street b/t S. Brown
St. and S. Harris St.

City Hanford Hanford Hanford Hanford Hanford Hanford
APN 012-086-004 012-102-023 010-500-024 010-500-025 012-106-016 012-093-017 Buyer --- Marco & Alicia
Rodrigues
Tortuga Properties Tortuga Properties Marco Yanez Paul Santiago Seller --- Adrian & Maria
Sandoval
St. Jon Real Estate
LLC
St. Jon Real Estate
LLC
Marco Rodriguez Alan & Cathy
Johnson
Date of Sale --- March-2022 March 2022 March-2022 December-2021 July-2020 Sale Price --- $80,000 $225,000 $225,000 $70,000 $100,000 Price/S.F. --- $4.83 $5.87 $5.87 $6.22 $6.75
Size (Acres) 0.80 0.38 0.88 0.88 0.26 0.34
Size (S.F.) 34,848 16,553 38,333 38,333 11,250 14,810
Zoning MX-D MX-D R-H R-H MX-D MX-D
Off-sites C, G & SW C & G C, G & SW C, G & SW C, G & SW C & G Utilities All Municipal All Municipal All Municipal All Municipal All Municipal All Municipal Orientation Corner Interior Interior Interior Interior Interior Adjustments
Property Rights Fee Simple 0% 0% 0% 0% 0%
$4.83 $5.87 $5.87 $6.22 $6.75
Financing Conventional 0% 0% 0% 0% 0%
$4.83 $5.87 $5.87 $6.22 $6.75
Conditions of Sale Normal 0% 0% 0% 0% 0%
$4.83 $5.87 $5.87 $6.22 $6.75
Market Conditions Current 0% 0% 0% 0% 0%
$4.83 $5.87 $5.87 $6.22 $6.75
Immediate Expenditures --- 0% 0% 0% 0% 0%
Adj. Price/S.F. $4.83 $5.87 $5.87 $6.22 $6.75
Location Average Inferior Similar Similar Inferior Inferior Size 0.80 Superior Similar Similar Superior Superior
Zoning MX-D Similar Inferior Inferior Similar Similar
On-Sites None Similar Similar Similar Similar Similar
Off-sites C, G & SW Inferior Similar Similar Similar Inferior Utilities All Municipal Similar Similar Similar Similar Similar Adj. Price/S.F. --- Inferior Sl. Inferior Sl. Inferior Similar Similar

SUMMARY OF COMPARABLE LAND SALES
Underlying Land Value 34,916 S.F. X $6.75 /S.F. = $235,683 Land Value Rounded =$235,000

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 9 Cost Approach: The depreciated value of the site improvements (parking lot) is added to the underlying land value to determine the total improved property value. There are 67 marked stalls on site. Utilizing Marshall Valuation as a cost estimation guide, the cost per stall has been estimated at $2,500. Soft costs were reconciled at 8.0%. No incentive would be anticipated for building a parking lot in downtown Hanford and none is applied.

The parking lot is at least 15 years old but has been moderately maintained. The effective age is estimated at 10 years with a remaining economic life of 1 0 years. The physical depreciation factor is derived at 50% (10/20 =

0.50).

Functionally the property lacks ADA compliant handicap ramps. It is also possible the trash enclosure no longer meets code. ADA compliance is often required by the planning department through site plan review if the property is altered or renovated. For this reason, an additional 15% functional deduction is made.

The underlying land value is added to the depreciated value of the parking lot improvements for a total of $305,000. The value is calculated in the following chart:

Replacement Cost New
67 Parking Stalls 67 A 2,500$ per Stall = 167,500$ Trash Enclosure 20,000$
Total 187,500$
Indirect Costs 8.00% 15,000$
Total Cost New 202,500$
Entrepreneurial Profit 0.00% -$
Sub-Total 202,500$
Physical Depreciation 50.00% (101,250)$
Functional Obsolescence 15.00% (30,375)$
Sub-Total 70,875$
Plus Land Value 235,000$
Indicated Value by the Cost Approach 305,875$
Rounded 305,000$

COST SUMMARY

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 10 Encumbered Valuation Encumbered properties are typically bought and sold at a discount from the unencumbered value, because the utility is restricted. As a result of the encumbrance, the parking lot will be subject to increased maintenance costs borne by the owner. Most of the demand for parking will occur during the day, when the lot is encumbered by public parking rights. In the evening, parking demand is reduced when downtown Hanford is less active; the daytime parking rights are most valuable.

Diminution in value due to encumbrances vary based on the type of restriction. My estimate of the diminution in value is outlined in the following chart:

Before the deed restriction there is less traffic and maintenance costs. With the deed restriction in place, the parking ava ilability will be reduced, and the maintenance costs will increase. The chart above reflects a diminution of value at 20%, or an encumbered valuation of $244,000 ($305,000 X 0.8 = $244,000). This is a total diminution of $61,000.

As a second consideration, I reviewed the following chart provided in the May/June, 2006 IRWA Journal article titled “Easement Valuation.” The chart helps to outline a standard for easement valuations and their effect on real property values. This is relevant to the subject as there will essentially be a surface easement to utilize the subject property from 8:00 AM to 6:00 PM.

Access Shape Size Traffic/Space Availability Maintenance Total Points Before Average Rectangular Economic Private traffic flow Standard 10 10 10 10 10 50
After
Average Rectangular Economic Increased traffic flow and reduced space availability
Increased maintenance costs
10 10 10 5 5 40
Difference from Before to After 10
Difference as a Percentage 20%

RATING GRID BEFORE AND AFTER THE DEED RESTRICTION

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 11 The subject is encumbered but the utility of the land area and parking lot has not changed. The effect is more of timing and availability. As of now, the downtown Hanford market does not lack parking in the immediate area. I observed the parking lot on numerous occasions throughout the day and it is rarely crowded. In future years, this trend may change as the population grows. For now, the encumbered property is a negatively affected on a scale consistent with 20% diminution in value.

All factors considered, my opinion of the encumbered value is $244,000.

Jacob I. Hower, MAI, R/W-AC
CA License 3002762
License Expiration Date: 11/14/2022
[email protected]

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 12 CERTIFICATION

I certify that, to the best of my knowledge and belief:

• The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the re ported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
• I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.
• I have previously appraised the subject property within the prior three years. I have performed no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
• My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • I have made a personal inspection of the property that is the subject of this report. • no one provided significant real property appraisal assistance to the person signing this certification. • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, I Jacob Hower have completed the Standards and Ethics Education Requirements for Designated Members of the Appraisal Institute.

Jacob I. Hower, MAI, R/W-AC
CA License 3002762
License Expiration Date: 11/14/2022
[email protected]

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 13 Basic Assumptions and Limiting Conditions

1. No survey was made of the property, and the dimensions are those taken from the maps in the Office of the County Assessor of Kings County. This appraisal is not an engineering, legal or architectural study. It is not an examination or survey of any kind. Expertise in these areas is not implied and should not be inferred by the reader.

2. No separation of land and building values may be used for any other purpose than that delineated elsewhere in this report.

3. Neither all nor any part of the contents of this rep ort shall be conveyed to the public through advertising, public relations, news, sales, or other media without the written consent and approval of the author, particularly as to the valuation conclusion.

4. No right to expert testimony is included with this report, and the fee for this appraisal does not include payment for pre-trial conferences or taking of depositions.

5. No survey or soil tests of the land have been made by the appraiser.

6. This report and all information contained herein was prepared for the sole and exclusive benefit of the client, as specified herein, and is intended for his use only. No one except the client specified herein may rely on this report for any purpose. Any person or entity who obtained or reads this report, or a copy thereof, other than the client specified herein, expressly assumes all risk of damages to himself or third persons arising out of reliance thereon or use thereof and waives the right to bring any action based on the appraisal, directly or indirectly , and the appraiser shall have no liability to any such person or entity.

7. Possession of this report or any copy thereof does not carry with it the right of publication, nor may the same be used for any purpose by anyone except the appraiser's employer, without the previous written consent of the appraiser, and in any event, only in its entirety.

8. The information and data reported in this appraisal have been obtained from sources that are deemed to be reliable. They are believed to be correct but cannot be guaranteed by the appraiser.

This condition applies generally throughout the appraisal report and specifically to square footage calculations and descriptions of comparable properties.

9. This appraisal report sets forth all the limiting conditions (imposed by the terms of the assignment or by the appraiser) affecting the analyses, opinions, and conclusions contained in this report.

10. During this appraisal, the appraisers did not detect or attempt to discover any environmental hazard on, under, above, or within the subject real estate. No overt evidence of any environmental hazard is apparent to the untrained eye. It is beyond the expertise of the appraiser to detect or determine the chemical nature of any substance or gas. No effort was made to dismantle or probe any part of the property to discover enclosed, encased, or concealed hazards. The presence of any hazardous condition usually diminishes market value. The value opinion formed in this report assumes there is no environmental hazard affecting the subject real estate. No responsibility is assumed by the appraisers or Simon & Hower, Inc., Inc. for any hazard, or for any expertise require d to discover any environmentally hazardous condition. Our client is urged to retain an expert in this field, if desired.

11. The appraiser is not qualified to determine whether the subject building improvements are in compliance with the American with Disabilities Act (ADA) of 1992. Noncompliance with this act could have a negative effect upon the value of the property. An expert in this field should be retained for consultation, if desired.

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 14 12. All leading professional appraisal organizations, the U.S. Congress , all state legislatures, and numerous legal jurisdictions recognize the Uniform Standards of Professional Appraisal Practice (USPAP), promulgated by the Appraisal Foundation. Revised annually to keep it contemporary, these standards set forth ethical prac tices and proper procedures for a competent appraisal. This appraisal fully complies with all relevant portions of the USPAP version in effect on the date this report was prepared. It also complies with the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), a federal law.

13. The person signing this report is licensed to appraise real property in the state the subject is located.

I affirm I have the experience, knowledge, and education to value this type property. I have previously appraised similar real estate.

14. No liability is assumed, expressed, or implied by Simon & Hower, Inc., or the appraiser for unauthorized use of this report. Only those persons, parties, entities, companies, corporations, partnerships, associations, or groups that are clearly, specifically, and explicitly identified as an intended user on Page 1 may rely on, and use this report. There are no implied, suggested, inferred, consequential, or indirect intended users of this report. Unauthorized users should not use, or rely on any portion of this document. Unauthorized users do so at their own risk and peril.

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 15 Record of Survey

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 16 End of Report

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Attachment: 2022.04.22 Comfort Inn Parking Lot Appraisal (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to)

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Attachment: City of Hanford Parking Lease Agreement (City Att: Sale of Parking Lot at Southeast Corner of Redington and Sixth Streets to) 1 PURCHASE AND SALE AGREEMENT AND E SCROW INSTRUCTIONS
* * * * *
T
his PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS (“Agreement”) is effective the ___ (___) day of October, 2022 (“Effective Date ”), by and between THE CITY OF HANFORD, a municipal corporation (“ Seller”), and A2Z Investments, LLC, a California limited liability company (“Buyer”). Seller and Buyer are sometimes collectively referred to herein as the “Parties ” and singularly as a “ Party.” This Agreement is made with reference to the following facts:

R

ECITALS
A. S
eller owns that real property more particularly described in the attached Exhibit “A” which is incorporated herein by reference (“Real Property”).

B.

Buyer desires to purchase and Seller is willing to sell the Real Property to Buyer.

N
OW, THEREFORE, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties hereby agree as follows:

1. P urchase and Sale . Subject to all of the terms, conditions, and provisions of this Agreement and for the consideration set forth herein, Seller agrees to sell to Buyer and Buyer agrees to buy at Closing, as defined in this Agreement, the Real Property. The sale and purchase of the Real Property shall be consummated by means of an escrow (“ Escrow”) opened at the offices of STEWART TITLE COMPANY (“Escrow Holder”) located at 329 West 8 th Street, Ste.
105, Hanford, California. This Agreement shall constitute the instructions for the Escrow upon acceptance by Escrow Holder. The Parties shall also execute such additional escrow instructions as may be required by the Escrow Holder, but the same shall be consistent with this Agreement and not modify the terms hereof unless specifically approved by the Parties, such approval to be given or withheld in their sole discretion.

2. P urchase Price. The purchase price for the Real Property shall be Three Hundred Five Thousand Dollars ($305,000.00) (“Purchase Price”). The Purchase Price shall be paid in full on the Closing Date, as defined below in Section 22 of this Agreement.

3. P ayment of Purchase Price. The Purchase Price shall be paid as follows:
(
a) Upon execution of this Agreement hereof by both Parties, Buyer shall deposit Five Thousand Dollars ($5,000.00) (“Deposit”) with Escrow Holder. (b
) At least one (1) business day before Closing, Buyer shall deposit the balance of the Purchase Price with Escrow Holder, in cash, by wire transfer or other immediately available funds.

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 2 4. Liquidated Damages.

L IQUIDATED DAMAGES UPON BUYER’ S DEFAULT. IF THE ESCROW

FAILS TO CLOSE BY THE SCHEDULED CLOSING DATE SET FORTH IN SECTION 22 OF THIS AGREEMENT AS A RESULT OF BUYER’ S DEFAULT IN THE

PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT, THE DEPOSIT

AND INTEREST ACCRUED THEREON SHALL BE RETAINED BY SELLER AS LIQUIDATED DAMAGES AND AS SELLER’ S EXCLUSIVE REMEDY AGAINST BUYER, AT LAW OR IN EQUITY OR OTHERWISE. RETENTION OF SUCH FUNDS

BY SELLER AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT INSTEAD, IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO SECTIONS 1671, 1676 AND 1677 OF THE CALIFORNIA CIVIL CODE. BECAUSE OF THE SPECIAL NATURE OF THE NEGOTIATIONS THAT PRECEDED ACCEPTANCE BY SELLER OF BUYER’ S OFFER TO ACQUIRE

THE REAL PROPERTY, THE PARTIES ACKNOWLEDGE THAT THE ACTUAL

DAMAGE THAT WOULD RESULT TO SELLER AS A RESULT OF SUCH FAILURE WOULD BE EXTREMELY DIFFICULT TO ESTABLISH. IN ADDITION, BUYER

DESIRES TO LIMIT ITS POTENTIAL LIABILITY TO SELLER IN THE EVENT THAT THIS TRANSACTION SHALL FAIL TO CLOSE. BY SEPARATELY INITIALING

BELOW, THE PARTIES HEREBY ACKNOWLEDGE THEIR AGREEMENT
CONCERNING LIQUIDATED DAMAGES:
____________
____________
Buyer Initials Seller Initials

5. P ossession . Seller shall deliver possession of the Real Property to Buyer at Closing.

6. C ondition of Title to Real Property. Seller shall convey f ee title to the Real Property to Buyer, subject only to those encumbrances, contracts, agreements, rights, easements, rights of way, and mineral leases, rights and reservations as set forth in a preliminary report of title to the Real Property to be prepared by Escrow Holder (“Title Report”) promptly after the opening of Escrow. Upon receipt of the Title Report, and each document shown as an exception or encumbrance in the Title Report, Buyer shall have seven (7) calendar days within which to notify Seller and Escrow Holder in writing of any exceptions to title shown therein that Buyer disapproves (“Objectionable Exceptions”), plus any endorsements to title Buyer requires for the subject title policy . If Buyer notifies Seller and Escrow Holder of one or more Objectionable Exceptions, Seller shall have seven (7) calendar days from receipt of such written notice to (i) remove the Objectionable Exception(s), or (ii) refuse to remove the Objectionable Exception(s) , in which case Buyer may elect to waive its objection (s) and consummate this transaction, or terminate this Agreement and receive a refund of the Deposit and accrued interest, whereupon neither Party shall have any further obligation to sell or purchase the Real Property. Buyer’s failure to provide Seller and Escrow Holder with written notice of Objectionable Exceptions within said seven (7) calendar day period shall constitute Buyer ’s approval of the Title Report and all exceptions shown therein (collectively “Permitted Exceptions”). After Buyer’s approval of the

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 3 Title Report, Seller shall not allow, cause, or permit any additional exceptions to the condition of title to occur without Buyer’s approval, other than ongoing real property taxes and assessments already of record.

7. T itle Insurance. At Closing , and as a condition to Buyer’s obligation to purchase and Seller’s obligation to sell the Real Property, Escrow Holder shall commit to issue its standard ALTA Owner’s Policy of Title Insurance (provided, however, Buyer may elect to obtain extended coverage if Buyer so notifies Escrow Holder prior to Closing and such election does not delay the close of Escrow) showing title to the Real Property vested in Buyer, subject only to the Permitted Exceptions as determined in accordance with Section 6 of this Agreement (the “ Title Policy”).

The premium for the Title Policy shall be p aid as set forth in Section 21 of this Agreement, provided that if Buyer elects to obtain an extended coverage, Buyer shall pay any increase in premium associated with such extended coverage.

8. F easibility Period .
(
a) Except as otherwise provided, commencing on the Effective Date and terminating at 5:00 p.m. on the thirtieth (30 th) calendar day following the Effective Date (“Feasibility Period”), Buyer shall undertake, at Buyer’s expense, including (but not limited to):
(i) an inspection of the Real Property; (ii) a review of the physical condition of the Real Property, including ( but not limited to ), inspection and examination of soils, environmental factors, Hazardous Substances, if any, and archeological information relating to the Real Property; and (iii) a review and investigation of the effect of any zoning, maps, permits, reports, engineering data, regulations, ordinances and law affecting the Real Property. (b) If Buyer, in its sole and absolute discretion, and for any reason, approves all, or disapproves the results of any aspect of Buyer ’s inspection and review, Buyer shall give, prior to 5:00 p.m. on the last day of the Feasibility Period, either (i) its notice of approval, or (ii) its notice of disapproval and termination of this Agreement. If the transaction is disapproved or deemed disapproved, all Parties hereto shall be relieved of al l further obligations or liabilities hereunder except as is otherwise specifically provided in this subsection 8(b) and in subsection 8(c) immediately following. If Buyer fails to notify Seller properly and timely of Buyer’s approval of this transaction as provided in this subsection 8(b), Buyer shall be deemed to be satisfied with the results of the inspection. If Escrow terminates pursuant to this subsection 8(b), the Deposit will be released by Escrow Holder to Buyer, and Buyer will provide to Seller at no charge, upon cancellation of Escrow, all reports and material regarding the Real Property that Buyer generates or are generated on Buyer’s behalf.
(
c) Buyer shall, prior to Closing, indemnify, defend and hold Seller and Seller’s officials, officers, employees, representatives and agents and the Real Property harmless from and against any and all loss, cost, damage, expense, claim or liability, including personal injury, loss of life and/or property damage incurred by: (i) Buyer or Buyer’s officials, officers, employees, representatives and agents while on or about the Real Property, which is/are caused by the Real Property’s condition; or (ii) by any person or entity as a result of the acts or omissions of Buyer or its representatives, employees, contractors, or agents in performing any inspection and/or testing activity on or about the Real Property (provided however, the indemnity of this subsection (c) shall

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 4 not apply to any pre-e xisting environmental condition unless the willful, intentional, or negligent act of Buyer makes the pre-existing condition worse). Buyer shall promptly pay all costs, fees and expenses incurred as a result of or associated with such inspection work done or caused to be done on the Real Property as permitted by this Section 8. Buyer shall keep the Real Property free from any and all mechanics or similar liens or charges resulting from such inspection work.

9. C ondition of Property. Except for representations made in writing by the Seller prior to the Closing Date , the conditions of Section 6 “Condition of Title to Real Property”, the obligations created by Section 10 “Existing Surveys and Reports”, and the obligations created by Section 11 “Covenants, Warranties and Representations of Seller”:
(
a) Buyer expressly acknowledges that Buyer is buying the Real Property in an “AS IS AND WHERE AS” condition, and that it has not relied on any warranties, promises, understandings or representations, express or implied, of Seller or any employee, agent or representative of Seller, or any document relating to the Real Property, except as are specifically set forth in this Agreement. Buyer acknowledges that any and all environmental assessme nts, engineering studies and other information of any type that Buyer has received or may receive from Seller or its agents are furnished on the express condition that Buyer shall make an independent verification of the accuracy of any and all such information, all such information being furnished without any warranty whatsoever.
(b
) Buyer acknowledges and agrees that neither Seller nor any employee, agent or representative of Seller has made any representation or warranty to Buyer concerning the Real Property, including, without limitation, the suitability of the Real Property for Buyer ’s intended use or its compliance with any statutes, ordinances, rules or regulations. Buyer shall perform and rely solely upon its own independent investigation concerning the Real Property and the Real Property’s compliance with any applicable law. Buyer acknowledges that it is acquiring the Real Property subject to all existing laws, ordinances, rules and regulations, and that neither Seller nor any of Seller’s representatives, agents or employees have made any warranties, representations or statements regarding any laws, ordinances, rules and regulations of any governmental or quasi - governmental body, entity, district or agency having authority with respect to the use, condition or occupancy of the Real Property.
(
c) Buyer shall perform and rely solely upon its own investigation concerning Buyer’s intended use of the Real Property, the Real Property’ s fitness therefore, and the permissibility of such intended use under applicable statutes, ordinances, rules and regulations. (d
) Except as expressly set forth in this Agreement, Buyer will indemnify, defend, and will hold Seller harmless and hereby waives, releases, remises, acquits and forever discharges Seller and the Seller Parties of and from any and all suits, causes of action, legal, equitable or administrative proceedings, claims, demands, actual damages, punitive damages, losses, costs, liabilities, interest, attorneys’ fees and expenses of whatever kind and nature, in law or in equity, known or unknown, arising on the date of Closing or thereafter, and arising out of or in any way connected with, directly or indirectly, or based upon or arising out of the physical or environmental condition, status, quality, nature, or state of the Real Property ; provided however, such duty to indemnify, defend, and hold Seller harmless shall not apply with respect to Seller ’s ________
_________
_________

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 5 gross negligence or intentional misconduct . It is the intention of this Agreement that, except for Seller’s gross negligence and intentional misconduct and except as otherwise expressly set forth herein, any and all responsibilities and obligations of Seller to Buyer, and any and all rights or claims of Buyer, its successors and assigns and affiliated entities, with respect to, or as against Seller arising by virtue of, the physical or environmental condition of the Real Property are by this release provision declared to be, from and after Closing, null and void and of no present or future effect as to such parties. With respect to the matters released by Buyer pursuant to this Section 9, Buyer waives the benefits of Section 1542 of the Civil Code of the State of California, which provides as follows:

“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

_______________
Buyer Initials

10. Existing Surveys and Reports . Within ten ( 10) calendar days after Seller ’s execution of this Agreement, Seller shall furnish Buyer with copies of all existing surveys, soil reports, engineering studies, environmental audits or reports, site plans, and other information in Seller’s possession pertaining to the Real Property.

11. Covenants, Warranties and Representations of Seller. Seller hereby makes the following covenants, representations, and warranties:

(a) Except as otherwise disclosed herein, Seller’s execution of this Agreement and performance of its obligations hereunder will not violate any agreement, option, covenant, condition, obligation or undertaking of Seller.

(b) Seller is not a “foreign person” as defined in Section 1445(f) of the Internal Revenue Code of 1986, as amended. At Closing, Seller shall provide Buyer Affidavits of Non- Foreign Status made under penalty of perjury, if required by Escrow Holder.

(c) Except as otherwise disclosed herein, t here are no liens on title or actions, suits, or proceedings of any kind or nature whatsoever, legal or equitable, pending or to the best of Seller’s actual knowledge, threatened against Seller, or the Real Propert y, and relating to or arising out of the ownership, management, or operation of the Real Property, in any court or before or by any federal, state, county or municipal department, commission, board, bureau, agency, or other governmental instrumentality.

(d) T he Real Property is not subject to any third-party leases or other use rights, with the exception of those rights, if any, which may be reflected herein or in the Title Report and that Off-Site City of Hanford Parking Space Lease, dated October 1, 2000, made by and between Seller and Hanford Investors, Inc.

(e) Seller shall notify Buyer immediately if Seller becomes aware of any new

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 6 information or material change concerning the Real Property that affects the representations and warranties of Seller under this Agreement.

12. Covenants, Warranties and Representations of Buyer. Buyer hereby makes the following covenants, representations, and warranties:

(a) Buyer has the authority to enter into this Agreement, purchase the Real Property, and to otherwise perform as set forth herein. The person executing this Agreement on behalf of Buyer has the full legal authority and is duly authorized to sign this Agreement on behalf of Buyer and to bind Buyer to all of the terms and conditions of this Agreement.

(b) Buyer’ s execution of this Agreement and performance of its obligations hereunder will not violate any agreement, option, covenant, condition, obligation or undertaking of Buyer.

(c) There are no actions, suits, or proceedings of any kind or nature whatsoever, legal or equitable, pending or, to the best of Buyer’s actual knowledge, threatened against Buyer, in any court or before or by any federal, state, county or municipal department, commission, board, bureau, agency, or other governmental instrumentality seeking to challenge Buyer ’s ability to purchase the Real Property.

(d) Buyer acknowledges that: (i) the Real Property is subject to the terms and conditions of that Development Agreement (“Development Agreement”) executed by Seller and Hanford Investors, Inc., dated October 1, 1998, which is recorded as Document No. 9821502, Official Records of the County of Kings; and (ii) the terms and conditions of the Development Agreement run with the land and Buyer and Buyer’s successors-in-interest shall be subject to such terms and conditions, which are incorporated herein by reference. The Deed under which Seller conveys the Real Property to Buyer shall refer to the Development Agreement and will state that use of the Real Property will be limited to off-street parking for the Hotel Property (defined below).

13. Survival of Warranties . The satisfaction, truth, accuracy and completeness of each of t he representations, warranties and covenants of Buyer and Seller contained in this Agreement, as of the date hereof and as of Closing, shall constitute a condition precedent to the obligations of Seller and Buyer , respectively, hereunder. All representations, warranties, covenants, obligations, responsibilities and agreements set forth herein shall survive Closing, and Seller and Buyer each agree to indemnify, defend and hold the other harmless from any claim, demand, liability, loss or cost (including without limitation, reasonable attorneys ’ fees and costs) which the other may sustain arising out of any breach of and provision of this Section 13.

14. Brokerage Commissions. Buyer and Seller each represents and warrants to the other that it has not engaged the services of any real estate broker, salesperson, agent or finder, nor done any other act nor made any statement, promise or undertaking which would result in the imposition of liability for the payment of any real estate brokerage commission, finder ’s fee or otherwise in connection with the transaction described in this Agreement. In the event that any person or entity perfects a claim for a brokerage commission, finder’s fee or otherwise, based upon any agreement, statement or act, the Party through whom such person or entity makes such claim

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 7 shall be responsible therefor and shall defend, indemnify and hold the other Party and the Real Property harmless from and against such claim and all loss, costs and expense associated therewith, including attorneys’ fees.

15. Conditions Precedent to Seller’s Obligations to Perform. Seller’s obligation to perform as set forth herein is hereby expressly conditioned on satisfaction of each and every of the following conditions precedent:

(a) Buyer shall have timely performed each of the acts to be performed by it hereunder.

(b) Each of Buyer’s representations and warranties set forth herein shall be true at Closing as if affirmatively made at that time.

(c) Buyer shall not have timely exercised any right set forth in this Agreement to cancel the Escrow or terminate this Agreement.

(d) Per California Government Code Section 65402(a), Seller may not sell any real property unless the City of Hanford Planning Commission (“ Planning Commission ”) determines that the proposed sale is consistent with the City of Hanford General Plan (“ General Plan”). Accordingly, Closing is conditioned on the Planning Commission making the requir ed determination. Should the Planning Commission determine that the sale of the Real Property is inconsistent with the General Plan, this Agreement will automatically terminate , and the Parties will, except as otherwise provided herein, be relieved from all duties and obligations hereunder.

(e) Seller’s obligation to sell the Real Property to Buyer is strictly conditioned on Buyer’s concurrent purchase of the property (“ Hotel Property”) more particularly described in the attached Exhibit “B,” which is inc orporated herein by reference. Closing shall occur concurrently with Buyer’s close of escrow for the Hotel Property. The Parties acknowledge that the Real Property serves as required off -street parking for the Hotel Property, and, therefore, t he Grant Deed executed by Seller that conveys title to the Real Property to Buyer shall contain a restriction that limits the use of the Real Property to required off-street parking for the business operated on the Hotel Property.

(f) Should, prior to Oct ober 31, 2024, Buyer cease to lease the Hotel Property pursuant to that Lease Agreement for Comfort Inn – Hanford, CA between Hanford Investors, Inc. and A2Z Investments, LLC, without having purchased the Hotel Property, this Agreement shall automatically terminate.

(g) In accordance with Government Code Section 54233, a Covenant will be recorded against the Real Property at Closing stating that, if ten (10) or more residential units are developed on the Real P roperty, not less than fifteen percent (15%) of the total number of residential units developed shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code and that Rental units shall remain affordable to, and occupied by, lower income

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 8 households for a period of at least fifty-five (55) years for rental housing and forty-five (45) years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of Government Code Section 65915.

(h) In accordance with the Surplus Land Act (California Government §§ 54220- 24234), the California Department of Housing and Community Development must issue written confirmation that: (i) the City satisfied the requirements of the Surplus Land Act with respect to sale of the Property; and (ii) the City is permitted to sell the Property.

16. Conditions Precedent to Buyer’s Obligations to Perform. Buyer’s obligation to perform as set forth herein is hereby expressly conditioned on satisfaction of each and every one of the following conditions precedent:

(a) Seller shall have timely performed each of the acts to be performed by it hereunder.

(b) Each of Seller’s representations and warranties set forth herein shall be true at Closing as if affirmatively made at that time.

(c) Seller shall not have timely exercised any right set forth in this Agreement to cancel the Escrow or terminate this Agreement.

(d) Escrow Holder is committed to issue the Title Policy as set forth above in Section 7.

(e) Seller has satisfied all legal requirements for the sale of the Real Property in order to grant clear title to Buyer, subject to those conditions and Permitted Exceptions approved by Buyer.

(f) Buyer’s obligation to purchase the Real Property shall be conditioned on Buyer’s concurrent purchase of the Hotel Property.

17. Establishment of Escrow. Upon execution of this Agreement by the Parties, a true and correct copy of this Agreement shall be deposited with Escrow Holder. The general provisions of Escrow Holder’s escrow instructions shall not impose any additional obligations or liabilities on the Parties. If any of the general provisions conflict with the provisions of this Agreement, the provisions of this Agreement shall control.

18. Deposits into Escrow. The Parties shall make the following deposits into Escrow at or prior to Closing:

(a) Seller shall deposit an executed and acknowledged original Grant D eed conveying good and marketable title to the Real Property, subject to all Permitted Exceptions.

(b) Buyer shall deposit all funds when and as required hereby (including

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 9 without limitation the Purchase Price, all amounts necessary to pay Buyer ’s share of the closing costs), and such other amounts as Buyer has agreed to pay under this Agreement, or as required by Escrow Holder, and a preliminary change of ownership report for Kings County. (
c) Both Parties shall execute and deliver such additional documents as Escrow Holder reasonably may deem necessary in order to effectuate the transaction set forth i n this Agreement and to close the Escrow.

19. Prorations. Escrow Holder shall prorate the following items, as of Closing, using a 365 day year: all real and personal property taxes and all other charges or assessments relating to the Real Property using the latest tax bills. Buyer shall pay any supplemental taxes assessed pursuant to Chapter 3.5 (Section 75) of the California Revenue and Taxation Code resulting from the sale of the Real Property to Buyer. Escrow Holder is not responsible for utility or insurance costs and premiums, all of which shall be prorated outside the Escrow by the Parties.

20. T itle Insurance. At Closing, Escrow Holder shall issue, effective as of that date, the Title Policy described in Section 7 of this Agreement.

21. C osts and Expenses. Closing costs shall be borne by the Parties as follows:
(
a) T he Title Policy premium shall be paid by Seller, except that any increase in the Title Policy premium associated with extended coverage desired by Buyer shall be paid by Buyer. Title Policy endorsements desired by Buyer shall be paid by Buyer. (b
) D ocumentary transfer taxes and costs of preparing and recording the Grant Deed shall be paid by Buyer; and
(
c) All Escrow fees shall be shared equally between Buyer and Seller.

A
ll other costs of closing the Escrow, including, without limitation, filing fees, other recording fees and otherwise, shall be shared by the Parties equally. Each Party shall bear its own legal fees and costs associated with the preparation of this Agreement. Buyer shall deposit additional funds into Escrow in an amount equal to its share of the closing costs as determined by Escrow Holder.

Escrow Holder is hereby authorized to withhold Seller ’s share of the closing costs from funds otherwise distributable to Seller.

22. C losing Date. Unless otherwise extended by the Parties in writing or as specified herein, the closing of E scrow for the Real Property shall occur on or before October 31, 2024, subject to the prior satisfaction (or waiver) of the conditions precedent to Closing identified in Sections 15 and 16 of this Agreement (“Closing”). The date on which Closing occurs is referred to herein as the “Closing Date.” If the Escrow is not in a condition to close by the Closing Date, Escrow Holder , except as otherwise provided herein, shall cancel the Escrow upon receipt of written notice from either Party of such cancellation; provided, however, that if Escrow is not in a condition to close by the Closing Date due to the failure of only one Party to perform, and such failure to perform constitutes a default under this Agreement, and the other Party has fully performed all of the obligations required of it in order to close the Escrow, only the performing

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 10 Party shall be entitled to provide Escrow Holder with written notice of cancellation. In the absence of any written notice of cancellation, Escrow Holder shall proceed to close the Escrow as soon as possible.

23. P rocedure for Closing . Escrow Holder shall close the Escrow by doing the following:
(a) Pay from funds deposited by Buyer all claims, demands and liens necessary to place title to the Real Property in the condition set forth in Section 6 of this Agreement; (b
) Pay Seller’s share of the closing costs from funds otherwise distributable to Seller;
(
c) Pay from funds deposited by Buyer (other than the Purchase Price), Buyer’s share of closing costs;
(d) Pr orate real and personal property taxes and all other charges or assessments as set forth in Section 19 of this Agreement;
(
e) Record Seller’s Grant Deed in the Official Records of Kings County and direct the County Recorder to affix the transfer tax after recording, return the recorded Grant Deed to Buyer with a conformed copy to Seller, and file Buyer’s preliminary change of ownership report in Kings County, as appropriate; and
(f) Unless otherwise instructed by Selle r, unilaterally deliver the remaining funds held in Escrow, less payments authorized hereunder, to Seller by Escrow Holder’s check.

24. Failure to Close. I f Escrow shall fail to close as a result of Buyer’s breach of any of its obligations hereunder, then, in accordance with the provisions of Section 4 hereinabove, upon demand of Seller, Escrow Holder shall terminate the Escrow, immediately deliver the Deposit and all documents that Seller previously deposited into E scrow (collectively “Seller ’s Documents”) to Seller, deliver Buyer ’s preliminary change of ownership report to Buyer, and charge Buyer for any cancellation charges. If the Escrow shall fail to close as a result of Seller ’s breach of any of its obligations hereunder, or upon Buye r’s election to terminate in accordance with the provisions of this Agreement, then upon demand of Buyer, Escrow Holder shall terminate the Escrow, immediately cause the Deposit to be delivered to Buyer, deliver Seller’s Documents to Seller, deliver Buyer’s preliminary change of ownership report to Buyer, and charge Seller for any cancellation charges. If the Escrow fails to close through no fault of either Buyer or Seller, upon the demand of either Party, Escrow Holder shall return Buyer ’s preliminary change of ownership report to Buyer, return Seller ’s Documents to Seller, return the entire Deposit and accrued interest to Buyer, and cancel the Escrow, with all cancellation charges to be borne equally by Buyer and Seller.

25. A ttorneys ’ Fees. Subject to Section 4 of this Agreement, in the event of any action between Buyer and Seller seeking enforcement of any of the terms and conditions of this Agreement, or in connection with the Real Property, the prevailing Party in such action shall be

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 11 awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including, but not limited to, taxable costs and reasonable attorneys’ fees. Seller and Buyer agree that any such action shall be venued in Kings County, Califor nia or in the Federal District Court in Fresno, California.

26. Indemnification of Escrow Holder. Escrow Holder shall be indemnified and held harmless by Buyer and Seller against any and all costs, damages, attorneys ’ fees, expenses and liabilities which it incurs or sustains in connection with the Escrow, except for such items as may be caused by Escrow Holder’s misconduct or negligence.

27. Notice. Except as otherwise expressly provided herein, any notice, consent, authorization or other communication to be given hereunder shall be in writing and shall be deemed duly given and received when delivered personally, one (1) business day after being deposited for next-day delivery with a nationally recognized overnight delivery service, or five (5) business days after being mailed by certified mail, with return receipt requested, properly addressed to the Party to receive such notice at the last address furnished for such purpose by the Party to whom notice is directed and addressed as follows:

To Buyer: Sandeep Patel and Vimma Patel
A2Z INVESTMENTS, LLC
1035 Lorinda Lane
Lafayette, CA 94549

To Seller: Mario Cifuentez, City Manager

CITY OF HANFORD
319 N. Douty Street
Hanford, CA 93230

28. Sole and Only Agreement . This Agreement supersedes any and all other agreements, either oral or in writing, between the Parties with respect to the matters set forth herein and contains all of the covenants and agreements between the parties regarding said matters. Except as is otherwise provided herein, each Party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or in writing, have been made by any Party or anyone acting on behalf of any Party which are not embodied in this Agreement and no other agreement, statement or promise shall be valid or binding.

29. Successors and Assigns.

(a) Buyer may not assign its rights hereunder to a third party without Seller’s consent, which may be withheld in Seller’s sole discretion.

(c) Should Seller consent to an assignment of Buyer’s rights hereunder, t he covenants and agreements contained in this Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto.

30. Further Action . The Parties agree to perform all further acts, and to execute,

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 12 acknowledge, and deliver any documents that may be reasonably necessary, appropriate or desirable to carry out the purposes of this Agreement.

31. Waiver. A waiver of any breach of this Agreement by any Party shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or any other provision of this Agreement.

32. Choice of Laws . This Agreement shall be governed by the laws of the State of California and any question arising hereunder shall be construed or determined according to such law.

33. Headings. Headings at the beginning of each numbered Section of this Agreement are solely for the convenience of the Parties and are not a part of this Agreement.

34. Survival. All of the provisions of this Agreement shall survive Closing and shall remain binding upon the Parties.

35. Time. Time is of the essence, it being understood that each date set forth herein, particularly Closing, and the obligations of the Parties to be satisfied by such dates have been the subject of specific negotiations by the Parties.

36. Counterparts. This Agreement may be signed by the Parties in different counterparts and the signature pages combined to create a document binding on all Parties. This Agreement may be executed in two (2) separate counterparts, each of which, when so executed, shall be deemed to be an original and to constitute the one and same contract. This Agreement may also be signed and signatures transmitted by facsimile, and any such facsimile copy shall be equivalent to a binding signed original for all purposes. This Agreement additionally may be executed and delivered by way of PDF email, provided the Parties have provided each other with email addresses to accomplish such delivery and the Party sending this Agreement via email either receives an electronic delivery receipt fro m the Party to whom this Agreement was sent or the recipient acknowledges receipt via email.

37. Nondiscrimination and Non -segregation Provisions . The Buyer herein covenants by and for itself and its successors and assigns, and all persons claiming unde r or through it, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease or sublease, transfer, use, occupancy, tenure, or enjoyment of the Real Property herein conveyed, nor shall Buyer or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number or use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Real Property herein conveyed. The foregoing covenants shall run with the land and shall be included in the deed transferring title of the Real Property to Buyer.

///

///

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 13 IN WITNESS WHEREOF, the Parties have executed this Agreement in the City of Hanford, County of Kings, California.

Dated: October ____, 2022
“SELLER”

CITY OF HANFORD, a municipal corporation

By:

MARIO A. CIFUENTEZ, II
City Manager

Dated: October ___, 2022

Dated: October ___, 2022

“BUYER”

A2Z INVESTMENTS, LLC

By: _________________________________

SANDEEP PATEL
Manager

By: _________________________________

VIMAA PATEL
Manager

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 14 EXHIBIT “A”

(Real Property Legal Description)

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast 15 EXHIBIT “B”

(Hotel Property Legal Description)

The following described real property in the County of Kings, State of California:

Beginning at the intersection of the Southerly right-of-way of 6 th Street and the Westerly right-
of-way of Douty Street, as shown on that map recorded at page 11 in The Map Book and on a Record of Survey Recorded in Volume 17, Page 10 of Licensed Surveyor Plats, Kings County Records and being in Section 36, Township 18 South, Range 21 East, Mount Diablo Base and Meridian, in the City of Hanford, County of Kings, State of California; Thence South 79° 12’ 57’’ West along the Southerly right-of-way line of said 6 th Street, a
distance of 319.00 feet to the true point of beginning; Then continuing South 79° 12’ 57’’ West a distance of 121.07 feet to the intersection of the Southerly prolongation of the centerline of Irwin Street and said Southerly right-of-way of 6 th
Street, thence continuing South 79° 13’ 32’’ West, along said Southerly right-of-way line of 6th Street, 141.93 feet;
Thence South 10° 45’ 52’’ East a distance of 99.75 feet to a point 20.10 feet Northerly of the centerline of the rails of the Southern Pacific Railway; Thence North 79° 14’ 08’’ East, along a line parallel with and 20.10 feet Northerly of last said centerline of rails, a distance of 263.01 feet;
Thence North 10° 46’ 14’’ West 99.82 feet to the true point of beginning, containing 26,242 square feet more or less.

Reserving therefrom an interest in the basement for sanitary sewer, storm drain, and related appurtenances and structures and for franchises and other rights as revised in an order of the City Council abandoning a section of Irwin Street and Detailed in a document recorded in Book 939 at Page 131 of official records.

Also reserving a 10 foot water line easement, the center line of which is describes as follows:

Beginning at a point on the Southerly right-of-way of 6 th Street from which point the
Northwesterly corner of the above described property lies North 79° 13’ 32’ East a distance of

33.00 feet;
Thence South 10° 45’ 52’’ East a distance of 90.75 feet; Thence North 79° 14’ 08’’ East long a line parallel with the Southerly line of the above described property a distance of 134.93 feet to the Westerly line of the heretofore described abandoned Irwin Street.

APN: 012-086-005 & 012-091-004

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Attachment: 2022.09.27 Purchase Sale Agreement for Comfort Inn Parking Lot - Agenda Packet (City Att: Sale of Parking Lot at Southeast

AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: F

SUBJECT:

Parks and Community Services: Approval of a contract with Fresno Fence Connection in the amount of $98,410 for the Skate Park Fencing Project.

RECOMMENDATION:

That the City Council, by motion, Award contract to Fresno Fence Connection of Fresno, CA for the Plunge Skate Park Fencing Project in the amount of $ 98,410.00.

BACKGROUND:

On June 21, 2022, Council appropriated $125,000 of the American Rescue Plan Act (ARPA) funds toward the Skate Park/Plunge Fencing Project. This project will raise the fence around the skate park to 8 feet tall and add additional security measures to prevent unauthorized use and vandalism (see attached fence specification sheet). There will be additional new gates built for the parking lot to restrict access during non-operational hours and deter illicit and inappropriate behaviors.

A Request for Bid package was sent to a total of Six (6) vendors and the City received two (2) responsive bids, with a high bid of $114,849 from Spence Fence of Visalia, CA and a low bid of $98,410 from Fresno Fence Connection. Two (2) of the vendors could not meet the minimum qualifications and did not submit proposals, one did not provide an updated /responsive bid, and the last never submitted a qualifying bid. Staff has examined the bids, validated the lowest bidder's contractor's license status, and verified the contractor is in good standing.

FISCAL IMPACT:

Council has previously appropriated $125,000 in ARPA funds to cover the cost of this project.

Any funds not used to cover the project will be reallocated to other approved projects per Council's previous direction.

ATTACHMENTS:

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Skate Park fence specification sheet

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Attachment: Skate Park fence specification sheet (Parks: Skate Park Fencing Project)

AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: G

SUBJECT:

Public Works: Approval of an Annual Purchase Order with Martin Marietta, for a not to exceeded amount of $100,000 for street maintenance materials.

RECOMMENDATION:

That the Council, by motion,

1. Approve a Purchase Order with Martin Marietta for an amount not to exceed $100,000.

2. Authorize the Finance Director to adjust appropriated funds from the approved purchase order to not exceed the total value of $100,000.00.

BACKGROUND:

A blanket purchase order is the preferred method for placing orders which will require multiple payments over a designated period. Because of the size and scope of the overall operation, the Public Works De partment has a need to issue several annual blanket purchase orders where the total for each blanket purchase order exceeds the $50,000 limit the City Manager is authorized to approve.

Martin Marietta is the only local vendor which supplies the streets ma intenance material essential to public service. Other vendors require the Streets Division staff to collect the product from Coalinga or North Fresno, which renders those vendors cost ineffective or an unproductive use of staff time. In many cases, using these other vendors would nearly double the time needed to complete projects.

The material provided by this vendor is used to deep patch local streets to prepare for upcoming projects and extend the life of the local streets. The city saves money performing these jobs in house rather than using outside contractors and having to pay prevailing wages. The price has increased due to the cost of oil on the open market and is projected to increase in the near future.

The State of California ties the cost of oil to the California oil index and vendors are only allowed to increase the cost on a quarterly basis. The increasing cost of oil will not only affect the budget line for streets materials but will also increase the future projects including mill and fills and fiber

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projects.

FISCAL IMPACT:

The FY23 Streets Maintenance Division Budget appropriated $300,000 for street maintenance materials.

ATTACHMENTS:

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AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: H

SUBJECT:

Finance: Approval of a Contract amendment with Avenu - MuniServices LLC, to provide Cannabis tax audit services, for a contract amount not to exceed a $7,500 flat fee per retail establishment or 35% of additional Cannabis tax revenue collected by City, whichever is greater.

RECOMMENDATION:

Staff recommends that Council authorize execution of a contract amendment with Avenu for Cannabis tax audit services for greater of $7,500 per retail establishment or 35% on additional Cannabis tax revenue collected

BACKGROUND:

The City of Hanford has Cannabis retail establishments since 2020. Businesses submit their tax forms to the City and are subject to audit. Since 2020 to September 2022 the City has received just over $1,070,000 in Cannabis tax revenue. In fiscal year ending June 30, 2022 the City collected just over $770,000. It is established practice by many cities and counties in the State to conduct periodic audits of Cannabis retail establishments.

Staff was contacted by the City's current consultant (MuniServices LLC) for sales/use tax audits in regard to services they could provide for Cannabis tax audit. Another firm was also contacted in regards to this type of service, but at the time of this report a proposal had not been received by staff after the time period the consultant had advised of. Due to the current relationship and timely submittal of a propsal by MuniServices, this contract amendment is recommended.

MuniServices has extensive experience providing financial audits for Cannabis businesses. They provide cities with a comprehensive financial audit program that contributes to the overall Cannabis business oversight. The comprehensive audit program ensures gross receipts are accurately being reported and that local Cannabis businesses comply with all applicable local and state financial regulations. These audits help Cannabis businesses better understand financial requirements and assist them with the development of proper financial protocols.

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The consultant will work closely with the City’s Cannabis business community to review current financial protocols, provide education on documentation, and assist with the correction of errors that cause deficiencies. The goal of these audits is both to provide education to the Cannabis businesses in financial best practices and to ensure that the City maximizes its tax revenue from the Cannabis program. We customize our financial audit services to suit the specific needs and business environment of our client city. Businesses which go through financial audits are more likely to take the City’s regulations seriously and comply with them because they realize that an audit program is in place and they are likely to get audited in the future.

Staff will work with MuniServices (or future consultants) to establish a periodic audit program every 2-3 years.

FISCAL IMPACT:

MuniServices LLC proposes a flat cost of $7,500 or 35% contingency fee on additional Cannabis revenue collected by the City as result of services (Whichever is greater after City recieves revenue due). This work will be covered from existing budget appropriation for professional services (1201-749500) and potentially offset by increased taxes collected.

ATTACHMENTS:

Cannabis Audit Services - City of Hanford

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CITY OF HANFORD

CANNABIS TAX AUDIT SERVICES
Description of Approach

MuniServices, LLC, was founded in 1978 as Municipal Resource Consultants (MRC). The firm flourished throughout California and quickly branched out into other regions. The company and its affiliates employ over 900 professional level staff members who are completely dedicated to the success of each unique public entity we serve. Our offices are strategically located across the nation.

Our offerings are complemented with a dedicated Government Relations team that provides federal, state and local government advocacy, policy, regulatory and legislative consulting support as needed.

Cannabis Tax Audit Expertise in California

MuniServices has extensive experience providing financial audits for commercial cannabis businesses. We provide cities with a comprehensive financial audit program that contributes to the overall cannabis business oversight. Our comprehensive audit program ensures gross receipts are accurately being reported and that local cannabis businesses comply with all applicable local and state financial regulations. These audits help cannabis businesses better understand financial requirements and assist them with the development of proper financial protocols.

MuniServices will work closely with your cannabis business community to review current financial protocols, provide education on documentation, and assist with the correction of errors that cause deficiencies. The goal of these audits is both to provide education to the cannabis businesses in financial best practices and to ensure that the City maximizes its tax revenue from the cannabis program. We customize our financial audit services to suit the specific needs and business environment of our client city. Businesses which go through financial audits are more likely to take the City’s regulations seriously and comply with them because they realize that an audit program is in place and they are likely to get audited in the future.

It is important that each cannabis business operating within Hanford accurately maintains its books and records to ensure proper reporting to the various taxing entities and ensure the City obtains an accurate payment of its gross receipts tax by each business. We are familiar with the typical operational costs of running cannabis businesses, the state's unique tax structure for cannabis businesses, as well as the unique banking situation for such operations. We leverage our experience conducting similar audits for other cities across the state.

Legislative and Regulatory Updates, Consulting and Support

MuniServices continually develops and invests in resources to evaluate, monitor, and analyze current and proposed ballot measures, regulations and legislation at the local, state and federal level to identify issues that may impact the City's current l cannabis municipal code and ordinances.

This analysis includes an in- depth summary of any issues that may impact the City’s current position on the cannabis industry, including but not limited to, tax or fee revenues, land use and zoning and public safety. MuniServices can provide informal or detailed verbal and/or written reports on issues relating to the cannabis industry and make recommendations to the City and its lobbyists.

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Attachment: Cannabis Audit Services - City of Hanford (Finance: Contract amendment with Avenu - MuniServices LLC for Cannabis tax audit

CITY OF HANFORD

CANNABIS TAX AUDIT SERVICES
Work Plan

The City desires to ensure the registered commercial cannabis retailers are conducting business within the guidelines provided for by the State of California related to taxation as well as local ordinances and that each maintains accurate books and records, to ensure the proper reporting to the various taxing entities and ensure the City obtains an accurate payment.

In performing the Financial Audit Services, Muniservices will:

x Start with an Informational Kickoff Meeting - Meet with designated City staff to review and discuss potential audit candidates, audit approach and establish a mutually agreeable project timeline

x Begin audit process

x Audit Issues/Findings – Meet with City staff on audit activities, including, but not limited to:
o Unexpected delays resulting from the business entity response or other causes. o Significant errors or issues identified during the audit process o Cooporation issues with the business entity

x Draft Report Presentation – Meet with City staff to present draft report for each business

x Final audit report – Written report with information about each business; those in compliance, those not in compliance, and recommendations for corrective actions

x Presentation of audit summary – Written report with recommendations on possible administrative, technical and/or regulatory policy modifications that may improve future compliance

Commercial Canabis Business Audit Approach

Muniservices’ audit process has been developed to address the specifc requirements of each business operation and is not a one-size-fits-all approach. We recognize that business have differing operating styles, expertise and attention to detail. MuniServices will conduct initial ex pedited analytical evaluations before starting a complete verification of the business operations. The results of the initial analysis will determine the extent and depth of the full examination.

MuniServices will also work with City to create an audit authorization letter to be presented to the entities selected for review giving MuniServices authorization to conduct work on the City’s behalf. This letter will provide clear expectations for timely complying with audit requests such as access to the facility, system specifications and financial data storage and access.

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Attachment: Cannabis Audit Services - City of Hanford (Finance: Contract amendment with Avenu - MuniServices LLC for Cannabis tax audit

CITY OF HANFORD

CANNABIS TAX AUDIT SERVICES
The audit analysis can included, but is not limited to the following tasks:

1. Review of applicable provisions of the City's municipal code and resolutions adopted by the City

2. Review business records filed with the city such as application, operating agreements, compliance documents and tax returns.

3. Initiate communication with businesses to establish appropriate business contacts, Point of Sales systems (POS), product inventory and tracking systems, accounting data systems, physical operation procedures and methodology.

4. Examination of business operations and financial data verify the accuracy of reported tax returns and compliance with city regulatory and administrative policies.

5. Prepare a draft audit report for each business entity. The report will identify any tax deficiencies with a summary explaining how the error as established and suggestions on a resolution to ensure future compliance.

6. The draft report will first be discussed with city staff and then presented to the business entity. The business entity will be provi ded an appropriate amount of time to review the audit report and respond to any of the audit findings.

7. Prepare a final audit report summarizing the findings. The audit report will include information about the specific aspects of the business that were in compliance, those that were not in compliance, and recommendations for corrective actions. If relevant, we will also include areas for continued monitoring.

8. Prepare an audit summary report upon completion of all the initial audits. The audit summary report will provide recommendations to the city on possible administrative, technical and/or regulatory policy modification that maybe considered to improve compliance with City operating and reporting requirements.

Audit Timeline

MuniServices’ audit process is comprised of proven procedures and techniques. Because each business entity is unique the audit approach is determined by the competence and cooperation of the business. While it is difficult to specify the number of hours for each audit task listed above for each entity, based on experience, we are providing the amounts of time that is expected to be necessary.

Proposed oversite fixed hours
(Tasks 1,6, and 8)

20 hours total
Proposed annual audit hours
for each business (Tasks 2, 3, 4, 5, and 7)

30 hours per business
Duration of Project: 60 days from obtaining access to business data (Step 4)

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Attachment: Cannabis Audit Services - City of Hanford (Finance: Contract amendment with Avenu - MuniServices LLC for Cannabis tax audit

CITY OF HANFORD

CANNABIS TAX AUDIT SERVICES

List of Cannabis Tax Audit Service Experience

Ranelle Kawasaki- City of Sacramento, CA
[email protected]
Office 916-808-8500
Project Description - Education, consulting and auditing services focused on newly licensed dispensaries, author custom curriculum on compliance with state and local tax levies and operating in accordance with the City’s cannabis ordinances and State and local sales and use taxes.
x 61 audits completed with $400k in audit findings.
x 20 additional audits are currently in progress.

Kevin Biersack – City of Cathedral City, CA
[email protected]
Office 760-770-0378
Project Description: Education, consulting and auditing services focused on newly licensed dispensaries, author custom curriculum on compliance with state and local tax levies and operating in accordance with the City’s cannabis ordinances and State and local sales and use taxes.
x 49 audits completed with $334k in audit findings.

Evis Morales- City of Woodland, CA
[email protected]
Office (530) 661-5923
Project Description: Direct annual compliance audits of all licensed and unlicensed cannabis dispensaries operating within the City to ensure compliance with ordinances, tax levies and reporting.
x Ongoing audits in process

Jennifer Tomaszewski – City of Santa Barbara, CA
[email protected]
Office (805) 564-5340
Project Description: Direct annual compliance audits of all licensed and unlicensed cannabis dispensaries operating within the City to ensure compliance with ordinances, tax levies and reporting.
x Ongoing audits in process

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Attachment: Cannabis Audit Services - City of Hanford (Finance: Contract amendment with Avenu - MuniServices LLC for Cannabis tax audit

CITY OF HANFORD

CANNABIS TAX AUDIT SERVICES
Audit Team

MuniServices has developed a highly experienced Cannabis consulting team that has experience with issues impacting local government dating back to the inception of Cannabis industry regulation in California. Our team has an established track record related to the “best practices” of local implementation, regulation, development, and compliance across California that will benefit the City in the post-Proposition 64 era.

Audit Team Leadership

Michael Portis, CPA, Vice President of Audit - As Avenu’s Vice President of Audit, Michael leads Avenu’s Compliance Audit Group, which consists of a full suite of compliance auditing across several tax types. Michael is a Certified Public Accountant in both Texas and North Carolina and is a U.S.

Army Veteran. He has 25 years of direct experience in tax auditing and has served in several key positions for some of the largest tax firms in the United States. Education: Doctor of Jurisprudence from the University of Houston Law Center and Bachelor of Business Administration in Accounting from the University of Texas at San Antonio.

Cannabis Audit Team

Chris Wills, CRE, Compliance Audit Manager - Chris performs and oversees compliance audit operations for clients nationwide. Chris has worked for the company since 2008 and has developed a specialty practice within the company working especially on Cannabis, Franchise Fee and Utility Tax audit projects. Chris has built a wide array of resources and knowledge specific to each industry, which has been beneficial in resolving audit issues for our clients and finding the missing revenues they should have been receiving. Chris received his Bachelor of Science degree in Accounting from Jacksonville State University and is a Certified Revenue Examiner.

Katie Bellew, CRE, Cannabis Audit Supervisor - Katie performs audit operations for Cannabis Tax clients. An auditing professional with extensive knowledge of cannabis tax, sales tax, consumer’s use tax, utility license taxes, franchise fees, testing methodology, and evaluation of company internal controls. Katie received her Bachelor of Science degree in Accounting with a minor in Finance from Auburn University. Katie is also a Certified Revenue Examiner.

Government Relations

Francesco D. Mancia, MBA, Vice President, Government Relations - Fran joined MuniServices in 1995 and oversees the company Legislative, Regulatory, and Government Relations work at the state and federal level. Fran will work closely with state legislators and regulatory agencies on all issues related to the ongoing implementation of rules and regulations impacting cannabis revenue during this project. Fran has served as a member of the League of California Cities Revenue and Taxation Policy Committee. Fran graduated from the University of California, Santa Barbara and earned a Bachelor of Arts degree in Communications, and attended the University of San Francisco where he earned an MBA.

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Attachment: Cannabis Audit Services - City of Hanford (Finance: Contract amendment with Avenu - MuniServices LLC for Cannabis tax audit

CITY OF HANFORD

CANNABIS TAX AUDIT SERVICES
Cost Proposal

Service Cost

Cannabis tax
Compliance
Audit
Services:

$7,500 Fixed fee per retail establishment
OR
35% Contingency Fee on additional Cannabis tax revenue collected by the City as the result of our services

Whichever is greater (to be determined when invoicing after City receives revenue due)

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Attachment: Cannabis Audit Services - City of Hanford (Finance: Contract amendment with Avenu - MuniServices LLC for Cannabis tax audit

AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION: A

SUBJECT:

Community Development: Authorization for Interwest, JAS and Rod Carsey to provide on-call plan check services and Crawford and Bowen to provide on-call environmental planning services and Willdan to provide on-call building inspection services each contract not to exceed $150,000 annually for the City of Hanford.

RECOMMENDATION:

That the City Council, by motion, Authorize Interwest, JAS and Rod Carsey to provide on-call plan check services and Crawford and Bowen to provide on-call environmental planning services and Willdan to provide on-call building inspection services with each contract not to exceed $150,000 annually for the City of Hanford.

BACKGROUND:

The City currently uses several consulting firms to provide on-call plan check and planning services. Interwest, JAS and Rod Carsey have provided on-call plan check services for several years for the City. Staff is formally requesting that Council authorize these firms to continue to provide these services on an as-needed basis for a five-year contract term.

The City uses Willdan for building inspection services on an as-needed basis when the Building Department is in need of additional inspectors.

In addition to plan check and building inspection services, City Staff is also requesting the approval of Crawford and Bowen to provide on-call environmental planning services. Crawford and Bowen provide environmental planning for several Valley cities and Staff seeks authorization to use them on an as-needed basis.

In most cases, the cost to provide these services are covered by the City's application fees. Based on projected work load each consultant would not be used over $150,000 annually which would be paid for primarily from application fees submitted for projects.

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FISCAL IMPACT:

ATTACHMENTS:

Resolution 22-39-R

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RESOLUTION NO. 22-32-R

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD,

CALIFORNIA, AUTHORIZING INTERWEST, JAS AND ROD CARSEY TO PROVIDE

ON-CALL PLAN CHECK SERVICES, WILLDAN TO PROVIDE ON-CALL BUILDING

INSPECTION SERVICES, AND CRAWFORD AND BOWEN TO PROVIDE ON-CALL

ENVIRONMENTAL PLANNING SERVICES

At regular meeting of the City Council of the City of Hanford duly called and held on October 4, 2022, it was moved by Council Member , and seconded by Council Member, and carried that the following resolution be adopted

WHEREAS, the City uses several consulting firms to provide on-call plan check, building inspection, and planning services; and,

WHEREAS, Interwest, JAS and Rod Carsey have provided on-call plan check services for several years for the City; and,

WHEREAS, Willdan provides on-call building inspection services for the City; and,

WHEREAS Crawford and Bowen provide environmental planning services; and,

WHEREAS, the invoiced costs associated with these services provided may exceed $50,000 each fiscal year; and,

NOW, THEREFORE, BE IT RESOLVED that the Hanford City Council authorizes Interwest, JAS and Rod Carsey to provide on-call plan check services and Crawford and Bowen to provide on-call planning services for the City of Hanford.

PASSED, ADOPTED AND APPROVED at a regular meeting of the City Council of the City of Hanford held on October 4, 2022, by the following vote:

AYES: _____________________________________________________________________

NOES: _____________________________________________________________________

ABSTAIN:__________________________________________________________________

ABSENT:___________________________________________________________________

Approved ___________________________________
Kalish Morrow
Mayor of the City of Hanford
ATTEST:

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Attachment: Resolution 22-39-R (CD: Authorize On-Call Consulting Services for Plan Check and Planning)

____________________________
Natalie Corral
City Clerk

STATE OF CALIFORNIA )

COUNTY OF KINGS )

CITY OF HANFORD )

I, Natalie Corral, City Clerk of the City of Hanford, do hereby certify the foregoing Resolution was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the 4th day of October 2022.

Date: ____________________ ___________________________________ City Clerk

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Attachment: Resolution 22-39-R (CD: Authorize On-Call Consulting Services for Plan Check and Planning)

AGENDA

STAFF REPORT

MEETING DATE: 10/4/2022

AGENDA SECTION:

SUBJECT:

Council Future Agenda Items

FISCAL IMPACT:

ATTACHMENTS:

Council Future Agenda Items
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Council Future Agenda Items
Originated
Date Item Originator Staff Lead Date Estimate

12/21/21
Review of City Ordinance related to
property line setbacks for Patio
structures and Driveway Awnings
Council
Consensus

Tom Webb

11/1/2022

1/18/22
Discussion of options for New
Business Incentives in the Downtown
District
Council
Consensus

Mario
Cifuentez

11/15/2022
6/7/2022 Presentation and Review of the City’s
First-time homebuyers program
Council
Consensus
Sandra Lerma 10/18/2022
7/19/2022 Formal direction from Council on
roundabouts or signalized
intersections in the Downtown
Pedestrian and Traffic Safety project
Council
Consensus
TBD 10/18/2022
8/2/2022 Discussion regarding a process to
formally oppose any movement of
groundwater outside of the
jurisdiction of Kings County
Council
Consensus
Jason Waters 11/1/2022
9/20/22 Review of Measurable Objectives for
Parks as previously review and
approved by Council on June 7, 2022
Council
Consensus
Brad Albert 12/6/2022

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Attachment: Council Future Agenda Items (Council: Future Agenda Items)