Agenda packet — Hanford City Council, May 16, 2023 (part 1 of 3)

City Council Meeting
Agenda
May 16, 2023
7:00 PM – Regular Meeting
Council Chambers
400 N. Douty St.

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/

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

ROLL CALL BY THE CITY CLERK:

PUBLIC COMMENT:

Study Sessions are considered Special Meetings under the Brown Act. Accordingly, comments from the public are limited to items listed on the agenda (GC 54954.3a). Public Comment will be accepted during each agenda item. 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 and review of Capital Improvement Plan (CIP) for upcoming fiscal year 2024 and 2025 Budget and direction from Council on which projects to prioritize, and review of some operating budgets.

B. Presentation to Council regarding the City's current Cannabis Tax Structure for non-retail businesses, Council consideration of alternative rate structures and, if supported, Authorization for Staff to Prepare Amendments to the rate structure and the Application Process
C. Presentation to Council and discussion of the City of Hanford's overall street system and maintenance operations
CALL TO ORDER REGULAR SESSION:

ROLL CALL:

INVOCATION:

Jay Rubalcava

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FLAG SALUTE:

RECOGNITION:

A. Acceptance of a donation from Ali Azizuddin, owner of Jackpot Sinclair Gas Station & Car Wash, benefitting the Hanford Police and Fire Departments.

COUNCIL REPORTS/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 May 2, 2023 Meeting C. Human Resources: Approval of a 5-year contract renewal, for Workers' Compensation Third Party Administration services, with Acclamation Insurance Management Services, Inc., with a year one cost of $124,681.67 and authorization for the City Manager to execute all necessary documents.

D. Community Development: Approval of an Agreement Between the County of Kings and the City of Hanford for cooperation in updating the Housing Element of the Kings County Comprehensive General Plan pursuant to Government Code Section 65580 and authorization to use the City's award of LEAP grant funds to pay for the City's share of the Housing Element.

E. Community Development: Approval of Amendment No. 4 to the lease agreement between the City of Hanford and Mechanics Bank for the property located at 218 N.

Douty Street (Old Post Office).

F. Public Works: Adoption of Resolution no. 23-10-R regarding the public transit needs within the City of Hanford and authorization for the City Manager to sign and submit the claim for funds and any subsequent amended claims, and Approve the filing of the Notice of Exemption to certify that projects to be constructed with these funds are categorically exempt from the California Environmental Quality Act.

PUBLIC HEARING:

A. Community Development: A Public Hearing to accept comments related to the Approval of the 2023 Community Development Block Grant (CDBG) Action Plan and Adoption of Resolution No. 23-8-R, Authorizing and Approving the proposed 2023-24 Annual Action.

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B. Community Development: Public hearing to accept comments related to the adoption of Resolution No. 23-13-R, under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the “CMFA”), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $40,000,000, (the “Bonds”), a portion of the proceeds of the Bonds (approximately $7,000,000) will be used to construct an approximately 15,000 square foot health center at 939 South 12th Avenue in Hanford, California, containing approximately 24 medical exam rooms and ten dental rooms (the “Project”).

GENERAL BUSINESS:

A. Public Works: Approval of the City of Hanford Local Road and Safety Plan B. Public Works: Adoption of Resolution 23-11-R identifying a “Project List” for Road Maintenance and Rehabilitation Account (RMRA) gas tax funding for Fiscal Year 2023/24
COUNCIL COMMENTS AND COMMUNICATIONS:

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)
A. Council Future Agenda Items
B. Upcoming Events and Important Dates:

May 1-27: Spring Cleanup Event Kings Waste and Recycling Authority 7803 Hanford - Armona Rd. (Ticket required. Check your April utility bill) May 20: Walk with a Doc Hanford at Freedom Park 2000 9 1/4 Ave., 9:00 a.m. - 10:00 a.m.

May 20 and 27: Free Fitness Court Classes, 9:00 a.m. - 10:00 a.m. at Hidden Valley Park May 28: Reimagining Hidden Valley Park Outreach Event #1, 9 – 11 a.m. at Hidden Valley Park
June 1: Reimagining Hidden Valley Park Outreach Event #2, 6 – 8 p.m. at Civic Auditorium June 3: Carnegie Car Show in Civic Park, 8:00 a.m. - 12:00 p.m.

June 3: Reimagining Hidden Valley Park Outreach Event #3, 3 - 5 p.m. at Hidden Valley Park June 6: Regular City Council Meeting

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}

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4.A.

AGENDA

STAFF REPORT

MEETING DATE: 5/16/2023 AGENDA SECTION: STUDY SESSION

SUBJECT:

Presentation and review of Capital Improvement Plan (CIP) for upcoming fiscal year 2024 and 2025 Budget and direction from Council on which projects to prioritize, and review of some operating budgets.

Recommendation: Staff recommends that City Council receive a presentation for fiscal years ending June 30, 2024 and June 30, 2025 of the Capital Improvement Plan (CIP) and provide direction on any changes in project priorities. In addition, review some operating budgets and provide feedback to staff.

Recommended Motion: No motion is required. City Council recommendations or directions are requested at this time.

Outlook and Background:

Overall background
The City of Hanford adopts a two-year (biennial) budget. Part of the budget is a Capital Improvement Plan (CIP) that outlines what capital projects will be done by the City in the upcoming budget period.

Fiscal years (FY) 2024 (7/1/2023-6/30/2024) and FY2025 (7/1/2024-6/30/2025) are the upcoming budget years to have an adopted budget. The City adopts a five year Capital Improvement Plan which includes future projects in FY26, FY27 and FY28, anything outside the FY24 and FY25 budget years have no appropriation or authorization to spend (listed for planning purposes only).

Staff will review the CIP with City Council over the course of the two meetings in May, May 2nd and on May 16th. Staff have and will meet multiple times prior to Council discussion to work on a balanced and sustainable budget. The schedule for staff budget review with Council is as follows:

May 2, 2023 - DONE - CIP Review (General Fund, Other Funds) May 16, 2023 - CIP Review (Other Funds), some operating budget review June 6, 2023 - Operating budget review
June 20, 2023 - Public Hearing: Budget Adoption, Gann/Appropriation Limit Adoption

As discussed May 2nd at the City Council meeting funding for capital funds can be summarized as follows (Chart 1):

Chart 1 - Capital project funding availability

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The General Fund:

The General Fund is the City's most discretionary funding source that receives revenues from Sales Tax, Property Taxes, Business Tax, Transient Occupancy Tax among other revenues including fees for recovery of costs. There are several areas of essential services that are paid for out of the General Fund including Policy, Fire, Streets, Administration, Parks/Recreation and Planning/Community Development.

This upcoming budget looks to be very tight for the City's General Fund, in short, it will be a challenge to have a balanced budget as required by Council-adopted resolution. In addition, economic forecasts indicate a slow down in revenue, so cost increases due to inflation and salary increases may be hard pressed to be fully offset. For the past several years, the City has been 'tightening its belt', and in the upcoming budget presentations staff will be looking to tighten even further. However, there are limits as to what can be done as personnel costs are the majority of costs and there are essential costs of operating that must be covered. All non-fixed costs will be scrutinized by staff.

Proving to be a significant challenge to balancing the City's General Fund is the $12.5 million settlement agreed to in early 2023 of which $7.5 million has already been paid. This depleted the GF reserve to approximately 6%, well below the 35% goal (15% operating, 20% fiscal emergency). The remaining $5 million must be paid over the next four years at $1.25 million annually. This will be a direct impact to the General Fund budget over the next four years as the City must set aside funding for this debt in addition to all other operating, capital and existing debt demands.

Below shows updated approximate budget deficits faced by the City's General Fund in the upcoming 2-year budget cycle:

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FY24 - balanced (due to one-time revenues which should not be relied for ongoing costs) FY25 - approximately $1 million deficit

Table 1 - Draft Summary of General Fund budget

A structurally deficit budget is something that should not occur per City Council resolution. It also goes against Council goals established in March 2023, plus it is not sound fiscal practice and unsustainable in the long term. Should a balanced budget prove especially challenging, staff will consider the following recommendations (among others not listed):

•Budget positions at projected steps (not top step as done in past) - Included in draft summary •Include "optimistic" revenue projections (usually conservative) - Included in draft summary •Substantially reduce operating budgets for departments to include most essential costs only •Defer reserve (set asides) for future purchases (such as vehicles, equipment and facilities) •Freeze new positions in the General Fund until reserves begin to recover - Recommended for budget period
•Freeze vacant General Fund positions unless essential for ongoing operations - Recommended for budget period

General Fund Capital Project Outlook

A committee of staff from each department has ranked the General Fund CIP according to the following criteria and made recommendations based on priority for funding on these priorities and timing needs. These recommended rankings are also for the Council's consideration when looking at authorizing funding for CIP. Due to the projected tight budget, no projects are recommended to be funded from the General Fund unless they are offset by grants or reserves, or of utmost need (see attachment "Project Ranking")

CITY OF HANFORD

General Fund Project Ranking Level Ranking Sub Ranking

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1: Highest of highest importance, operational impact A: Health and Safety

2: Useful but lower priority B: Highly desirable, useful

3: Improvements but can wait

Overall for the General Fund, the following principles are recommended:

- No General Fund CIP unless absolutely considered essential - No new positions unless fully offset by new revenues or proven cost reductions - Fees are recommended to offset costs as much as possible - No new spending from prior budget unless a health or safety issue necessitates a purchase - Adhering to purchasing procedures for optimal pricing on purchases - Personnel costs are included at top step of pay in order to anticipate typical unknowns or changes that may occur (there may be some salary savings at year end which helps maintain a balanced budget and will help the City recover its reserve)
- After budget adoption, staff will look tor enhance cost allocations to offset General Fund costs in order to confirm other funds pay their appropriate share - As needed and available, re-allocate reserves for CIP priority projects. Although this will delay other projects/needs, higher priority needs can be funded without currently impacting the General Fund

Enterprise Funds, Special Revenue Funds and Other Funds Similar principles of budgeting apply to these other areas of the City's budget. However, for enterprise funds rates paid by users offset the costs of service. The City's primary Enterprise Funds are Water, Sewer, Storm Drain and Refuse. Some of the City's Special Revenue Funds are Gas Tax, Road Rehabilitation Account, Transportation Development Act, and CDBG. In almost all cases it is important to remember, these funds do not pay for General Fund activities and should support their own activities.

A budget will in most cases be balanced (covered by revenues coming in) but capital needs will need to be prioritized in order to maintain a healthy reserve (15% goal for other funds) for fiscal emergencies and adequate coverage for debt service. Funds outside of the General Fund may only be used for specific purposes. Consideration of what resources are available for investment in capital projects is an important effort as covered by tonight's review of a draft Capital Improvement Program.

For Enterprise and Internal Service Funds, the following are noteworthy observations:
- Transportation funds are limited, projects need to be prioritized ~ General Fund is an option but not recommended as there are many other demands - CIP needs to be prioritized by Fund in order to have financial sustainability, planning years are useful to line up projects for grants or opportunities to advance should funding become available - Rate studies are in progress for Water, Sewer and Storm Drain to be completed in 2023 - Housing Division is partially offset by CDBG and other housing funds (federal and state), however, the General Fund must pay for any portion not offset (approximately $150,000 the last couple of years)
- Allocations/costs charged to Enterprise Funds will be reviewed to consider most complete cost recovery to the General Fund

Fiscal Impact:

This item is to review how the City's five year Capital Improvement Plan (CIP) will be budgeted for FY24 and FY25 and planned through the following three years, FY26, FY27 and FY28. The Operating Budget to be reviewed for FY24 and FY25 will show proposed budgets as follows:

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General Fund - balanced, all department operations, projects and debt service supported by incoming revenues

Enterprise (Proprietary) Funds - all operations, projects and debt service supported by user rates and other revenues

Special Revenue and Other Funds - all operations and projects supported by incoming revenues or from other funds

The Council may make changes as it desires before, at budget adoption or anytime thereafter.

ATTACHMENTS:

1. Funding Source Report w fund balance 5.16.23

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CITY OF HANFORD
Capital Improvement Plan, Fiscal Years 2024 ‐ 2028
Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 12th Ave Sewer Benefit AD Beginning Fund (estimated) balance available $1,353,789.00 $1,149,879.00 $1,149,879.00 $1,149,879.00 $1,149,879.00 Capital requests $203,910.0 0 $0.00 $0.00 $0.00 $0.00
Ending Fund balance available $1,149,879.00 $1,149,879.00 $1,149,879.00 $1,149,879.00 $1,149,879.00 12th Ave Sewer Benefit AD 823628 12TH AVE SEWER TRUNK MAIN OVERSIZING **823628 $203,910.00 $203,910.00 Total 12th Ave Sewer Benefit AD $203,910.00 $0.00 $203,910.00 $0.00 $0.00 $0.00 $0.00

Airport Beginning Fund (estimated) balance available $0.00 $0.00 $0.00 $0.00 $0.00 Fund Transfers $92,000.0 0
Capital requests $92,000.0 0 $0.00 $0.00 $0.00 $0.00
Ending Fund balance available $0.00 $0.00 $0.00 $0.00 $0.00 Airport NEW HANFORD AIRPORT FIXED BASE OPERATIONS (FBO) BLDG ROOF PROJE $92,000.00 $92,000.00 Total Airport $92,000.00 $0.00 $92,000.00 $0.00 $0.00 $0.00 $0.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 ARPA Beginning Fund (estimated) balance available $5,297,140.00 $0.00 $0.00 $0.00 $0.00 Capital requests $5,297,140.0 0 $0.00 $0.00 $0.00 $0.00 Ending Fund balance available $0.00 $0.00 $0.00 $0.00 $0.00 ARPA 821611 YAC CONCESSION BLDG RESTORATION **821611 $617,930.00 $617,930.00 822601 ARPA PUBLIC SAFETY RADIO REPLACEMENT **822601 $699,105.0 0 $505,495.00 $193,610.00 823647 ARPA HIDDEN VALLEY PARK CONCEPTUAL PLAN **823647 $75,000.0 0 $5,600.00 $69,400.00 823646 ARPA DOWNTOWN STREET AND PEDESTRIAN IMPROVEMENTS **823 $4,416,200.00 $4,416,200.00 Total ARPA $5,808,235.00 $511,095.00 $5,297,140.00 $0.00 $0.00 $0.00 $0.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Accumulated Capital Outlay Beginning Fund (estimated) balance available $1,160,124.00 $108,184.00 $43,904.00 $43,904.00 $43,904.00 Capital requests $1,051,940.0 0 $64,280.00 $0.00 $0.00 $0.00 Ending Fund balance available $108,184.00 $43,904.00 $43,904.00 $43,904.00 $43,904.00 Accumulated Capital Outlay 821611 YAC CONCESSION BLDG RESTORATION **821611 $330,270.00 $330,270.00 823602 VETERANS BUILDING ROOF REPL **823602 $22,560.0 0 $22,560.00 823601 FIRE STA 1 CONCRETE REPL **823601 $50,590.0 0 $50,590.00 823611 EARL F JOHNSON PARK RENO **823611 *Multi funded $252,000.0 0 $252,000.00 822604 CIVIC AUD SEWER MAIN REPLACEMENT **822604 $69,512.0 0 $5,232.00 $64,280.00 823607 CIVIC AUD HARDWOOD FLOOR REPLACEMENT **823607 $53,460.0 0 $53,460.00 823606 CIVIC AUD ACOUSTIC CEILING REPLACMENT **823606 $196,190.0 0 $196,190.00 820634 CITY HALL SECURITY PROJECT **820634 $180,000.0 0 $77,600.00 $102,400.00 823603 CIVIC AUD INTERIOR PAINTING **823603 $44,470.0 0 $44,470.00 Total Accumulated Capital Outlay $1,199,052.00 $82,832.00 $1,051,940.00 $64,280.00 $0.00 $0.00 $0.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Building Safety Beginning Fund (estimated) balance available $320,000.00 $0.00 $0.00 $0.00 $0.00 Capital requests $320,000.0 0 $0.00 $0.00 $0.00 $0.00
Ending Fund balance available $0.00 $0.00 $0.00 $0.00 $0.00 Building Safety New 4 Electric inspector vans $320,000.00 $320,000.00 Total Building Safety $320,000.00 $0.00 $320,000.00 $0.00 $0.00 $0.00 $0.00

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CITY OF HANFORD
Capital Improvement Plan, Fiscal Years 2024 ‐ 2028
Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 CMAQ Beginning Fund (estimated) balance available $332,770.00 $788,660.00 $165,290.00 $0.00 $0.00 Capital requests $332,770.0 0 $788,660.00 $165,290.00 $0.00 $0.00 Ending Fund balance available $0.00 $0.00 $0.00 $0.00 $0.00 CMAQ 823619 LACEY WIDEN/RECON/10TH‐SIERRA **823619 $867,200.00 $270,250.00 $431,660.00 $165,290.00 820644 TRAF SIGNAL/12TH AV TO HUME **820644 $360,390.0 0 $3,390.00 $357,000.00 822645 9TH AVE & LACEY SIGNAL **822645 $59,130.0 0 $59,130.00 Total CMAQ $1,286,720.00 $0.00 $332,770.00 $788,660.00 $165,290.00 $0.00 $0.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Computer Replacement Reserve Beginning Fund (estimated) balance available $172,900.00 $135,900.00 $118,900.00 $101,900.00 $84,900.00 Capital requests $37,000.0 0 $17,000.00 $17,000.00 $17,000.00 $17,000.00 Ending Fund balance available $135,900.00 $118,900.00 $101,900.00 $84,900.00 $67,900.00 Computer Replacement Reserve New FY COMPUTER REPLACEMENTS $105,000.00 $37,000.00 $17,000.00 $17,000.00 $17,000.00 $17,000.00 Total Computer Replacement Reserve $105,000.00 $0.00 $37,000.00 $17,000.00 $17,000.00 $17,000.00 $17,000.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Facilities Beginning Fund (estimated) balance available $416,000.00 $159,410.00 $115,820.00 $115,820.00 $115,820.00 Capital requests $256,590.0 0 $43,590.00 $0.00 $0.00 $0.00 Ending Fund balance available $159,410.00 $115,820.00 $115,820.00 $115,820.00 $115,820.00 Facilities
NEW CARNEGIE BUILDING ROOF UNDERLAYMENT REPLACEMENT $46,000.0 0 $46,000.00 NEW CIVIC AUD BLINDS REPLACEMENT PROJECT $14,950.0 0 $14,950.00 823602 VETERANS BUILDING ROOF REPL **823602 $28,350.0 0 $28,350.00 NEW 1750 DROP DECK AND DUMP 12' TRAILER $31,090.0 0 $31,090.00 NEW 1750 KARCHER 80/100 AUTO SCRUBBER CIVIC $12,500.0 0 $12,500.00 823607 CIVIC AUD HARDWOOD FLOOR REPLACEMENT **823607 $167,290.0 0 $167,290.00 Total Facilities $300,180.00 $0.00 $256,590.00 $43,590.00 $0.00 $0.00 $0.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Fire Impact Fees Beginning Fund (estimated) balance available $682,900.00 $450,100.00 $450,100.00 $450,100.00 $450,100.00 Capital requests $232,800.0 0 $0.00 $0.00 $0.00 $0.00
Ending Fund balance available $450,100.00 $450,100.00 $450,100.00 $450,100.00 $450,100.00 Fire Impact Fees New Fire Station 5 Land Acquisition $232,800.00 $232,800.00 Total Fire Impact Fees $232,800.00 $0.00 $232,800.00 $0.00 $0.00 $0.00 $0.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Fleet Reserve Beginning Fund (estimated) balance available $13,700,000.00 $12,650,000.00 $12,219,400.00 $11,769,400.00 $11,769,400.00 Capital requests $1,050,000.0 0 $430,600.00 $450,000.00 $0.00 $550,000.0 0 Ending Fund balance available $12,650,000.00 $12,219,400.00 $11,769,400.00 $11,769,400.00 $11,219,400.00 Fleet Reserve NEW 2050 VACUUM TRUCK (REPL 174) $350,600.00 $350,600.00 NEW 2050 AUTOMATED REFUSE TRUCK $900,000.0 0 $450,000.00 $450,000.00 New New Battalion Chief Response Pickup with Buildup *Fund w/ reserve if $80,000.00 1A $80,000.0 0 New Fire Engine Pumper ‐ Replacement #161 *Authorize reallocation of Ge $1,050,000.00 $1,050,000.00 New New Fire Engine Pumper ‐ 2 $100,000.0 0 $100,000.00 Total Fleet Reserve $2,480,600.00 $0.00 $1,050,000.00 $430,600.00 $450,000.00 $0.00 $550,000.00 2 of 8

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CITY OF HANFORD
Capital Improvement Plan, Fiscal Years 2024 ‐ 2028
Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Gas Tax Beginning Fund (estimated) balance available $926,500.00 $566,500.00 $206,500.00 ‐$265,500.00 $349,500.00 Gas Tax revenues $1,100,000.0 0 $1,100,000.00 $1,100,000.00 $1,100,000.00 $1,100,000.00 Capital requests $1,460,000.0 0 $1,460,000.00 $1,572,000.00 $485,000.00 $1,485,000.00 Ending Fund balance available $566,500.00 $206,500.00 ‐$265,500.00 $349,500.00 ‐$35,500.00 Gas Tax NEW 10th Avenue from Fargo to SH43 reconstruct road $872,500.00 $872,500.00 NEW Centennial Drive Storm Drainage Improvements south of Berkshire Lan $70,000.00 $70,000.00 NEW Solar powered RRFB Pedestrian Crosswalk System at Three locations $144,500.0 0 $144,500.00 823618 PAVEMENT RESURFACING TREATMENT **823618 $1,950,000.0 0 $975,000.00 $975,000.00 823615 STREET DIVISION MAINTENANCE **823615 $2,125,000.0 0 $425,000.00 $425,000.00 $425,000.00 $425,000.00 $425,000.00 NEW LACEY BLVD WIDEN/RECONST MAGNA CARTA TO 13TH $1,000,000.0 0 $1,000,000.00 823614 NEW SIDEWALK/ADA IMPROVEMENTS **823614 $300,000.0 0 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 821621 CAMPUS DR RESURF, LACEY BLVD TO GREENFIELD AVE **821621 $796,247.0 0 $796,247.00 Total Gas Tax $7,258,247.00 $796,247.00 $1,460,000.00 $1,460,000.00 $1,572,000.00 $485,000.00 $1,485,000.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 RMRA Beginning Fund (estimated) balance available $926,500.00 $580,000.00 $291,810.00 $416,810.00 $541,810.00 RMRA revenues $1,100,000.0 0 $1,100,000.00 $1,100,000.00 $1,100,000.00 $1,100,000.00 Capital requests $1,446,500.0 0 $1,388,190.00 $975,000.00 $975,000.00 $975,000.00 Ending Fund balance available $580,000.00 $291,810.00 $416,810.00 $541,810.00 $666,810.00 RMRA 823619 LACEY WIDEN/RECON/10TH‐SIERRA **823619 $2,834,690.00 $1,446,500.00 $1,388,190.00 823618 PAVEMENT RESURFACING TREATMENT **823618 $2,925,000.0 0 $975,000.00 $975,000.00 $975,000.00 Total RMRA $5,759,690.00 $796,247.00 $1,446,500.00 $1,388,190.00 $975,000.00 $975,000.00 $975,000.00

Funding Source Project Number Request Title Project Total Project Ranking FY202 4 FY2025 FY2026 FY2027 FY2028 General Fund Beginning Fund (estimated) balance available $0.00 $0.00 $0.00 $0.00 $0.00 Capital requests $11,720,443.0 0 $1,903,395.00 $3,624,710.00 $3,228,180.00 $61,061,605.00 Grant funding $11,720,443.0 0 $1,903,395.00 $0.00 $0.00 $0.00 General Fund need $0.00 $0.00 $3,624,710.0 0 $3,228,180.00 $61,061,605.00 Ending Fund balance available $0.00 $0.00 $0.00 $0.00 $0.00 Funding Source Project Number Request Title Project Total Project Ranking FY2024 FY2025 FY2026 FY2027 FY2028 General Fund New Station 2 Updated Alerting System $95,000.0 0 1A $95,000.00 New Station 1 Updated Alerting System $95,000.0 0 1A $95,000.00 New New Public Safety Building $30,000,000.0 0 1A $500,000.0 0 $1,500,000.00 $28,000,000.00 New Replace Battalion Chief Response Pickup with Buildup $80,000.0 0 1A $80,000.00 New System Integration for AVL Dispatch $40,000.0 0 1A $40,000.00 New Freedom Playground Resurfacing Project $45,000.0 0 2A $45,000.00 New Freedom Splash Pad Refurbishment $15,000.0 0 2A $15,000.00 New ADA Parks/Recreation Modifications $133,500.0 0 2A $44,500.00 $44,500.00 $44,500.00 NEW Remove or Upgrade Mid Block crosswalks in Downtown $163,000.0 0 2A $163,000.0 0 New Completion of ALPR Camera system install $82,500.0 0 2A $43,500.00 $39,000.00 New Replace Bathroom Fixtures at PAL Building $11,000.0 0 2A $11,000.00 New Portable Training Tower $465,000.0 0 2A $465,000.0 0 New Fire Station 2 Asphalt Repair / Replacement $165,000.0 0 2A $165,000.0 0 New Fire Station 1 Asphalt Repair / Replacement $190,000.0 0 2A $190,000.0 0 New New Fire Engine Pumper ‐ 2 $950,000.0 0 2A $950,000.00 New Park Drinking Fountain Replacement Project $187,500.0 0 2B $105,000.00 $40,000.00 $42,500.00 New Centennial and Coe Park Basketball Renovation $300,000.0 0 2B $150,000.00 $150,000.00 New Street Medians Landscape Renovation $310,000.0 0 2B $155,000.00 $155,000.00 New Hallway walls in the upstairs of PD. $11,000.0 0 2B $11,000.00 New Restroom Building Replacement (COE, Lacey, Cent, HVP) $610,000.0 0 3A $305,000.0 0 $305,000.00 Funding Source Project Number Request Title Project Total Project Ranking FY202 4 FY2025 FY2026 FY2027 FY2028 3 of 8

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CITY OF HANFORD
Capital Improvement Plan, Fiscal Years 2024 ‐ 2028
General Fund New Coe Park Sidewalk and Parking Lot Upgrade $100,000.0 0 3A $100,000.00 NEW Replace the driveway approach at the Golden West Credit Union Publi $35,000.00 3A $35,000.00 NEW Replace City Hall Parking Lot Driveway $41,500.0 0 3A $41,500.00 823649 COMPREHENSIVE ACTV TRANS PLAN **823649 GRANT funded $256,143.0 0 3A $256,143.0 0 New Bauer Air Compressor Replacement $79,500.0 0 3A $79,500.00 New Fire Station 1 Extractor Replacement $12,000.0 0 3A $12,000.00 New Fire Station 2 Extractor $14,000.0 0 3A $14,000.00 New Fire Station 4 Design and Build $11,772,000.0 0 3A $11,772,000.00 New New Ladder Truck $1,600,000.0 0 3A $1,600,000.00
New Centennial Parking Lot Refurbish $110,000.0 0 3B $110,000.00 New Roofing Project at Centennial $60,000.0 0 3B $60,000.00 New Freedom Dog Park $25,000.0 0 3B $25,000.00
New Freedom Park Trash Enclosures $12,500.0 0 3B $12,500.00 New Recirculating Systems for Splash Pads $1,050,000.0 0 3B $350,000.00 $350,000.00 $350,000.00 New Centennial Table and Benches $60,000.0 0 3B $30,000.00 $30,000.00 New Civic Park Renovation Project (contingent on GRANT funding) $3,000,000.0 0 3B $3,000,000.0 0 New Hidden Valley Park Expansion $16,397,855.0 0 3B $16,397,855.00 New YAC Football Goal Relocation $35,000.0 0 3B $35,000.00 New Lakewood Park Drive Approach and Landscaping Renovation $35,000.0 0 3B $35,000.00 New Skate Park Drainage Project $40,000.0 0 3B $40,000.00 New Rotary Sports Field Reconditioning $50,000.0 0 3B $50,000.00 New Lacey Water Conservation Project $160,000.0 0 3B $10,000.00 $150,000.00 New Lacey Park Splash Pad Removal $100,000.0 0 3B $100,000.00 New Harris Ball Park / Brown Street Parking Lot $425,000.0 0 3B $425,000.00 New Centennial Park Lighting Upgrades $200,000.0 0 3B $30,000.00 $170,000.00 New Indoor Multi‐Generational Facility *Multi funded $600,000.0 0 3B $25,000.00 $575,000.00 New 2104 TRANSFER ALL CITY FACILITIES TO VALLEY ALARM $43,390.0 0 3B $16,210.00 $27,180.00 New Replace Awning Covers at Golden West Credit Union and Workingman $55,500.00 3B $55,500.00 New Statistics Software for Fire Departments $64,500.0 0 3B $24,500.00 $20,000.00 $20,000.00 New Safety Trailer with Tow Vehicle $250,000.0 0 3B $250,000.00 New Landscaping Police Department $17,250.0 0 3B $17,250.00 New Landscaping PAL Building $20,000.0 0 3B $20,000.00 New Awning cover at the back of the POP Building $20,000.0 0 3B $20,000.00 NEW 1750 PUBLIC WORKS ENCLOSED WAREHOUSE $250,000.0 0 3B $250,000.00 822649 HEROES PARK **822649 ‐ GF GRANT FUNDED $10,367,695.0 0 3B $8,464,300.0 0 $1,903,395.00 NEW 2040 FLEET DIV‐DIESEL EXHAUST FLUID (D.E.F.) DISPENSER FOR FUEL $18,000.00 3B $18,000.00 New Fire Station 2 Awning for Reserve Equipment $30,000.0 0 3B $30,000.00 New Fire Station 1 Awning for Reserve Equipment $33,000.0 0 3B $33,000.00 New Fire Station 2 Xeriscape $75,000.0 0 3B $75,000.00 New Fire Station 1 Xeriscape $75,000.0 0 3B $75,000.00 Total General Fund $81,538,333.00 $0.00 $11,720,443.00 $1,903,395.00 $3,624,710.00 $3,228,180.00 $61,061,605.00 4 of 8

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CITY OF HANFORD
Capital Improvement Plan, Fiscal Years 2024 ‐ 2028
Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Information Technology Beginning Fund (estimated) balance available $40,000.00 $0.00 $0.00 $0.00 $0.00 Capital requests $40,000.0 0 $0.00 $0.00 $0.00 $0.00
Ending Fund balance available $0.00 $0.00 $0.00 $0.00 $0.00 Information Technology New VEHICLE FOR IT SERVICES $40,000.00 $40,000.00 Total Information Technology $40,000.00 $0.00 $40,000.00 $0.00 $0.00 $0.00 $0.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Landscape Assessment District (LAD) Beginning Fund (estimated) balance available $0.00 $0.00 $0.00 $0.00 $50,000.0 0 Capital requests $0.00 $0.00 $0.00 $0.00 $50,000.0 0
Ending Fund balance available $0.00 $0.00 $0.00 $0.00 $0.00 Landscape Assessment District (LAD) New Glacier Play Equipment $50,000.00 $50,000.00 Total Information Technology $50,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $50,000.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Parks Facility Impact Fees Beginning Fund (estimated) balance available $3,406,000.00 $896,522.00 $604,462.00 $76,558.00 ‐$2,007,316.00 Estimated Park Impact Fees $250,000.0 0 $250,000.00 $250,000.00 $250,000.00 $250,000.00 Capital requests $2,759,478.0 0 $542,060.00 $777,904.00 $2,333,874.00 $5,800,000.00 Ending Fund balance available $896,522.00 $604,462.00 $76,558.00 ‐$2,007,316.00 ‐$7,557,316.00 Parks Facility Impact Fees New Heroes Park Build (contingent on GRANT funding) $2,231,278.00 $197,404.00 $2,033,874.00 New Indoor Multi‐Generational Facility $5,853,610.0 0 $53,610.00 $150,000.00 $5,650,000.00 New Centennial Park Playground Construction $108,650.0 0 $108,650.00 823609 PARK DEV OVERSIZING REQUIREMNT **823609 $750,000.0 0 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 822649 HEROES PARK **822649 ‐ GF GRANT FUNDED $2,231,278.0 0 $2,231,278.00 823611 EARL F JOHNSON PARK RENO **823611 $660,300.0 0 $229,800.00 $430,500.00 823612 CENTENNIAL PARK LIGHTING PROJECT **823612 $378,200.0 0 $378,200.00 Total Parks Facility Impact Fees $12,213,316.00 $0.00 $2,759,478.00 $542,060.00 $777,904.00 $2,333,874.00 $5,800,000.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Refuse Beginning Fund (estimated) balance available $2,400,000.00 $1,323,410.00 $134,410.00 $0.00 $0.00 Fund Transfers $0.00 $0.00 $80,590.0 0 $99,000.00 $14,000.00 Capital requests $1,076,590.0 0 $1,189,000.00 $215,000.00 $99,000.00 $14,000.00 Ending Fund balance available $1,323,410.00 $134,410.00 $0.00 $0.00 $0.00 Refuse New Utility customer payment kiosks (2) $83,000.00 $27,000.00 $14,000.00 $14,000.00 $14,000.00 $14,000.00 NEW 2037 CAMERA SYSTEM $50,000.0 0 $50,000.00
NEW 2037 FORKLIFT (NEW) $100,000.0 0 $100,000.00
NEW 2037 REFUSE SERVICE TRUCK (NEW) $160,000.0 0 $75,000.00 $85,000.00 NEW 2037 FRONT LOAD REFUSE TRUCK (NEW) $450,000.0 0 $450,000.00 NEW 2037 CITY ENCLOSURE REBUILD (6) $150,000.0 0 $75,000.00 $75,000.00 NEW 2037 ASPHALT BIN AREA $40,000.0 0 $40,000.00
823008 AUTOMATED REFUSE CONTAINERS **823008 $450,000.0 0 $225,000.00 $225,000.00 NEW 1750 PUBLIC WORKS ENCLOSED WAREHOUSE $101,000.0 0 $101,000.00 823608 PAINT BOOTH (REFUSE) **823608 $25,960.0 0 $25,960.00 822606 REFUSE OFFICE BREAKROOM **822606 $203,630.0 0 $203,630.00 NEW 2031 AUTOMATED REFUSE CONTAINERS (96GAL) $450,000.0 0 $225,000.00 $225,000.00 823007 COMMERCIAL/RECYCLE/ORG DUMPSTERS **823007 $300,000.0 0 $150,000.00 $150,000.00 NEW 2040 FLEET DIV‐DIESEL EXHAUST FLUID (D.E.F.) DISPENSER FOR FUEL $30,000.00 $30,000.00 Total Refuse $2,593,590.00 $0.00 $1,076,590.00 $1,189,000.00 $215,000.00 $99,000.00 $14,000.00 5 of 8

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CITY OF HANFORD
Capital Improvement Plan, Fiscal Years 2024 ‐ 2028
Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Storm Drain Beginning Fund (estimated) balance available $2,937,000.00 $1,682,805.00 $546,755.00 $126,185.00 ‐$482,815.00 Fund Transfers $0.00 $0.00 $0.00 $0.00 $0.00
Capital requests $1,254,195.0 0 $1,136,050.00 $420,570.00 $609,000.00 $159,000.00 Ending Fund balance available $1,682,805.00 $546,755.00 $126,185.00 ‐$482,815.00 ‐$641,815.00 Storm Drain NEW Courthouse Parking Lot Reconstruction $310,000.00 $310,000.00 New Utility customer payment kiosks (2) $83,000.0 0 $27,000.00 $14,000.00 $14,000.00 $14,000.00 $14,000.00 823624 HOUSTON AV PIPELIN/SAND SLOUGH **823624 $111,390.0 0 $111,390.00 818631 STORM DRAIN PUMP #39 **818631 $70,000.0 0 $70,000.00 NEW LACEY BLVD WIDEN/RECONST MAGNA CARTA TO 13TH $500,000.0 0 $500,000.00 NEW 2062 LIFT STATION REHAB $100,000.0 0 $50,000.00 $50,000.00 NEW 2062 PORTABLE PUMPS 6" / 4" $65,000.0 0 $65,000.00 NEW 2050 VACUUM TRUCK (REPL 174) $129,400.0 0 $129,400.00 822621 TREE TRIM/REMOVAL PROGRAM **822621 $375,000.0 0 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 NEW 2062 BROWN STREET MAIN ADDITION‐HWY 198 TO BROWN STREET B $250,000.00 $250,000.00 NEW 1750 PUBLIC WORKS ENCLOSED WAREHOUSE $75,000.0 0 $75,000.00 823619 LACEY WIDEN/RECON/10TH‐SIERRA **823619 $978,800.0 0 $305,020.00 $487,210.00 $186,570.00 817634 STONECREST BASIN PUMP EQ **817634 $45,930.0 0 $45,930.00 822622 LIFT STA 23 & 56 PANEL REPL **822622 $48,000.0 0 $48,000.00 823621 INCR FLOW CAP/PEOPLE DITCH **823621 $35,440.0 0 $35,440.00 820646 GATE CROSSING SECURITY/LOCKS **820646 $18,450.0 0 $18,450.00 823620 CURB AND GUTTER INSTALL **823620 $143,049.0 0 $15,844.00 $47,205.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 820647 BONNEYVIEW BASIN/SAND SLOUGH BASIN **820647 $262,496.0 0 $6,296.00 $256,200.00 Total Storm Drain $3,600,955.00 $22,140.00 $1,254,195.00 $1,136,050.00 $420,570.00 $609,000.00 $159,000.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Storm Drain Impact Fee Beginning Fund (estimated) balance available $424,000.00 $294,310.00 $131,310.00 ‐$23,690.00 ‐$73,690.00 Storm Drain Impact Fees $50,000.0 0 $50,000.00 $50,000.00 $50,000.00 $50,000.00 Capital requests $129,690.0 0 $163,000.00 $155,000.00 $50,000.00 $50,000.00 Ending Fund balance available $294,310.00 $131,310.00 ‐$23,690.00 ‐$73,690.00 ‐$123,690.00 Storm Drain Impact Fee NEW Centennial Drive Storm Drainage Improvements south of Berkshire Lan $24,000.00 $24,000.00 NEW Courthouse Parking Lot Reconstruction $113,000.0 0 $113,000.00 NEW Irwin Street from 7th Street north to alley ‐ replace sidewalk, drains, cu $105,000.00 $105,000.00 823624 HOUSTON AV PIPELIN/SAND SLOUGH **823624 $55,690.0 0 $55,690.00 823622 STORM DRAIN SYS OVERSIZING REQ **823622 $250,000.0 0 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 Total Storm Drain Impact Fee $547,690.00 $0.00 $129,690.00 $163,000.00 $155,000.00 $50,000.00 $50,000.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 T D A ‐ Transportation Beginning Fund (estimated) balance available $4,193,000.00 $4,369,610.00 $3,450,370.00 $2,631,420.00 $1,956,420.00 TDA Funds $350,000.0 0 $350,000.00 $350,000.00 $350,000.00 $350,000.00 Capital requests $173,390.0 0 $1,269,240.00 $1,168,950.00 $1,025,000.00 $1,025,000.00 Ending Fund balance available $4,369,610.00 $3,450,370.00 $2,631,420.00 $1,956,420.00 $1,281,420.00 T D A ‐ Transportation 823613 SIDEWALK/MISC CONCRETE REPAIRS **823613 $236,130.00 $36,130.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 823618 PAVEMENT RESURFACING TREATMENT **823618 *MULTI FUND $2,925,000.0 0 $975,000.00 $975,000.00 $975,000.00 NEW 2011 ECONOLITE SIGNAL VIDEO DETECTION $60,000.0 0 $60,000.00 823619 LACEY WIDEN/RECON/10TH‐SIERRA **823619 (could need more $) $1,440,450.0 0 $137,260.00 $1,219,240.00 $83,950.00 Total T D A ‐ Transportation $4,661,580.00 $0.00 $173,390.00 $1,269,240.00 $1,168,950.00 $1,025,000.00 $1,025,000.00 6 of 8

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CITY OF HANFORD
Capital Improvement Plan, Fiscal Years 2024 ‐ 2028
Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Transportation Impact Fees Beginning Fund (estimated) balance available $3,330,070.00 $956,866.00 ‐$1,580,144.00 ‐$3,406,824.00 ‐$3,206,824.00 Transportation Impact Funds $650,000.0 0 $650,000.00 $650,000.00 $650,000.00 $650,000.00 Capital requests $3,023,204.0 0 $3,187,010.00 $2,476,680.00 $450,000.00 $7,100,000.00 Ending Fund balance available $956,866.00 ‐$1,580,144.00 ‐$3,406,824.00 ‐$3,206,824.00 ‐$9,656,824.00 Transportation Impact Fees NEW Grangeville Blvd. ‐ Complete sidewalk between Douty Street and Harri $81,500.00 $81,500.00 NEW Irwin Street from 7th Street north to alley ‐ replace sidewalk, drains, cu $342,000.00 $342,000.00 823616 UNSCH ARTERIAL UPGR/TRAF SIGNL **823616 $2,250,000.0 0 $450,000.00 $450,000.00 $450,000.00 $450,000.00 $450,000.00 NEW LACEY BLVD WIDEN/RECONST MAGNA CARTA TO 13TH $3,355,000.0 0 $625,000.00 $2,730,000.00 NEW 2181 GRANGEVILLE/CENTENNIAL TO 13TH $4,420,000.0 0 $500,000.00 $3,920,000.00 823619 LACEY WIDEN/RECON/10TH‐SIERRA **823619 $2,936,360.0 0 $915,070.00 $1,461,610.00 $559,680.00 820644 TRAF SIGNAL/12TH AV TO HUME **820644 $1,494,200.0 0 $218,800.00 $1,275,400.00 823644 GRADE SEP FEASBLTY/GRGVL **823644 $333,620.0 0 $333,620.00 822647 DEVELOP LRSP 5091‐067 **822647 $24,214.00 $24,214.00 822645 9TH AVE & LACEY SIGNAL **822645 $1,000,000.0 0 $1,000,000.00 Total Transportation Impact Fees $16,236,894.00 $0.00 $3,023,204.00 $3,187,010.00 $2,476,680.00 $450,000.00 $7,100,000.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 WWTP/Sewer Beginning Fund (estimated) balance available $1,702,000.00 $969,570.00 $530,020.00 ‐$899,010.00 ‐$1,868,010.00 Fund Transfers $0.00 $0.00 $0.00 $0.00 $0.00
Capital requests $732,430.0 0 $439,550.00 $1,429,030.00 $969,000.00 $504,000.00 Ending Fund balance available $969,570.00 $530,020.00 ‐$899,010.00 ‐$1,868,010.00 ‐$2,372,010.00 WWTP/Sewer NEW 2104 VALLEY ALARM ACCESS CONTROL WWTP $15,230.00 $15,230.00 New Utility customer payment kiosks (2) $83,000.0 0 $27,000.00 $14,000.00 $14,000.00 $14,000.00 $14,000.00 823630 WWTP EXPANSION RESERVE **823630 $1,245,000.0 0 $415,000.00 $415,000.00 $415,000.00 823626 UNSCH MAIN EXTEN/REPL‐WWTP **823626 $101,930.0 0 $101,930.00 823627 SEWER SYSTEM VIDEO INSP **823627 $18,000.0 0 $18,000.00 823625 SEWER MAIN OVERSIZING REQ **823625 $92,180.0 0 $92,180.00 NEW 2073 UTILITY TRUCK (NEW) $90,000.0 0 $90,000.00
NEW 2073 PICKUP TRUCK (NEW) $65,000.0 0 $65,000.00
NEW 2073 VACUUM TRUCK (NEW) $600,000.0 0 $600,000.00
NEW LACEY BLVD WIDEN/RECONST MAGNA CARTA TO 13TH $400,000.0 0 $400,000.00 NEW 2071 SPARE BARSCREEN MOTOR $40,000.0 0 $40,000.00
NEW 2071 SPARE MOTOR SCREW PUMP $40,000.0 0 $40,000.00 NEW 1750 PUBLIC WORKS ENCLOSED WAREHOUSE $101,000.0 0 $101,000.00 NEW 2071 PICKUP TRUCK (NEW) $130,000.0 0 $65,000.00 $65,000.00 823619 LACEY WIDEN/RECON/10TH‐SIERRA **823619 $493,310.0 0 $153,730.00 $245,550.00 $94,030.00 823632 SPARE PUMPS **823632 $92,640.0 0 $92,640.00
823629 MANHOLE REPR/COATING PROJECT **823629 $404,720.0 0 $104,720.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 822627 PROTECTIVE GRATING **822627 $50,000.0 0 $50,000.00 NEW 2040 FLEET DIV‐DIESEL EXHAUST FLUID (D.E.F.) DISPENSER FOR FUEL $12,000.00 $12,000.00 Total WWTP/Sewer $4,074,010.00 $0.00 $732,430.00 $439,550.00 $1,429,030.00 $969,000.00 $504,000.00 7 of 8

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CITY OF HANFORD
Capital Improvement Plan, Fiscal Years 2024 ‐ 2028
Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Water Beginning Fund (estimated) balance available $9,331,000.00 $4,486,100.00 $37,660.00 $0.00 $0.00 Capital transfer from operating funds $0.00 $1,200,000.0 0 $2,630,210.00 $1,084,000.00 Capital requests $4,844,900.0 0 $5,648,440.00 $2,667,870.00 $1,084,000.00 $10,184,000.00 Ending Fund balance available $4,486,100.00 $37,660.00 $0.00 $0.00 ‐$10,184,000.00 Water 823639 WATER SYS SECURITY UPGRADES **823639 $605,740.00 $605,740.00 New Utility customer payment kiosks (2) $83,000.0 0 $27,000.00 $14,000.00 $14,000.00 $14,000.00 $14,000.00 823640 INDUSTRIAL PARK WATER STORAGE **823640 $3,879,800.0 0 $3,879,800.00 821645 TANK 4 CHLORINATION **821645 $66,070.0 0 $66,070.00 822644 REPR WELL 45 AND WELL 49 **822644 $86,060.00 $86,060.00 NEW LACEY BLVD WIDEN/RECONST MAGNA CARTA TO 13TH $500,000.0 0 $500,000.00 NEW 2910 WELL PUMP REHAB/WELL 42 AND WELL 38 $240,000.00 $120,000.00 $120,000.00 NEW 2910 SPARE MOTOR 250 $60,000.0 0 $60,000.00
823638 WATER DISTRIB MAIN EXT PROGRAM **823638 $480,000.0 0 $480,000.00 822635 WATER MAIN REPL PROGRAM **822635 $2,100,000.0 0 $700,000.00 $700,000.00 $700,000.00 823637 NEW WATER SUPPLY WELL **823637 $2,700,000.0 0 $900,000.00 $900,000.00 $900,000.00 NEW 2910 METER REPLACEMENT $8,000,000.00 $8,000,000.00 823633 UNSCH MAIN EXTEN/REPL‐WATER **823633 $250,000.0 0 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 NEW 2081 FIRE HYDRANTS $28,000.0 0 $28,000.00
NEW 1750 PUBLIC WORKS ENCLOSED WAREHOUSE $200,000.0 0 $200,000.00 823619 LACEY WIDEN/RECON/10TH‐SIERRA **823619 $1,174,530.0 0 $366,020.00 $584,640.00 $223,870.00 823635 METER REPLACEMENT PROGRAM **823635 $1,337,830.0 0 $857,830.00 $120,000.00 $120,000.00 $120,000.00 $120,000.00 823651 AUTOMATED METER ZENNER EQ REPAIR **823651 $790,260.0 0 $152,080.00 $638,180.00 823636 AMR REPLACEMENT PROGRAM **823636 $2,000,000.0 0 $400,000.00 $400,000.00 $400,000.00 $400,000.00 $400,000.00 Total Water $24,581,290.00 $152,080.00 $4,844,900.00 $5,648,440.00 $2,667,870.00 $1,084,000.00 $10,184,000.00 Funding Source Project Number Request Title Project Total To Date FY202 4 FY2025 FY2026 FY2027 FY2028 Water System Impact Fee Beginning Fund (estimated) balance available $3,260,000.00 $2,655,340.00 $1,380,300.00 $775,640.00 $1,275,640.00 Water System Impact Funds $550,000.0 0 $550,000.00 $550,000.00 $550,000.00 $550,000.00 Capital requests $1,154,660.0 0 $1,825,040.00 $1,154,660.00 $50,000.00 $1,154,660.00 Ending Fund balance available $2,655,340.00 $1,380,300.00 $775,640.00 $1,275,640.00 $670,980.00 Water System Impact Fee 823640 INDUSTRIAL PARK WATER STORAGE **823640 $945,040.00 $945,040.00 823638 WATER DISTRIB MAIN EXT PROGRAM **823638 $830,000.0 0 $830,000.00 823637 NEW WATER SUPPLY WELL **823637 $3,313,980.0 0 $1,104,660.00 $1,104,660.00 $1,104,660.00 823634 WATER MAIN OVERSIZING REQUIRE **823634 $250,000.0 0 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 Total Water System Impact Fee $5,339,020.00 $0.00 $1,154,660.00 $1,825,040.00 $1,154,660.00 $50,000.00 $1,154,660.00 8 of 8

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4.B.

AGENDA

STAFF REPORT

MEETING DATE: 5/16/2023 AGENDA SECTION: STUDY SESSION

SUBJECT:

Presentation to Council regarding the City's current Cannabis Tax Structure for non-retail businesses, Council consideration of alternative rate structures and, if supported, Authorization for Staff to Prepare Amendments to the rate structure and the Application Process

RECOMMENDATION:

Recommendation: Authorize staff to prepare ordinances that will modify the City's cannabis tax structure and application process
BACKGROUND:

The City's Municipal Code authorizes cannabis retail, manufacturing, distribution, cultivation, and testing businesses to operate within city limits if the business obtains the proper permits and approvals. The City also has the ability to establish tax rates for cannabis businesses operating in Hanford. Currently, Hanford does not have any non-retail cannabis businesses but has three approved retail businesses, two of which are operating and pay Hanford's cannabis tax.

The City has adopted several resolutions that establish the City's cannabis tax rate and permitting process. Hanford Municipal Code Chapter 5.60 Cannabis Business Tax identifies the City's cannabis tax rate and Chapter 5.56 Commercial Cannabis Activity outlines the application and approval process for cannabis regulatory permits. The established "not to exceed" tax rate in the 5.60.050 Tax imposed. is as follows:

C. The city council may, by resolution or ordinance, adjust the rate of the cannabis business tax.

However, in no event may the city council set any adjusted rate that exceeds the maximum rate calculated pursuant to subsection D of this section for the date on which the adjusted rate will commence.

D. The maximum rate shall be calculated as follows:

1. For every person who is engaged in commercial cannabis cultivation in the city:

a. Beginning July 1, 2021, the maximum rate shall be:

i. Ten dollars ($10.00) annually per square foot of canopy space in a facility that uses exclusively artificial lighting.

ii. Seven dollars ($7.00) annually per square foot of canopy space in a facility that uses a

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combination of natural and supplemental artificial lighting.

iii. Four dollars ($4.00) annually per square foot of canopy space in a facility that uses no artificial lighting, should the city ever allow such lighting after the adoption of the ordinance establishing the taxes identified in this chapter.

iv. Two dollars ($2.00) annually per square foot of canopy space for any nursery.

b. On July 1, 2022 and on each July 1 thereafter, the maximum annual tax rate per square foot of each type of canopy space shall increase by the percentage change between January of the calendar year prior to such increase and January of the calendar year of the increase in the Consumer Price Index (“CPI”) for all urban consumers in the San Francisco-Oakland-Hayward area as published by the United States Government Bureau of Labor Statistics. However, no CPI adjustment resulting in a decrease of any tax imposed by this subsection shall be made.

2. For every person who engages in the operation of a testing laboratory, the maximum tax rate shall not exceed two and one-half percent (2.5%) of gross receipts.

3. For every person who engages in the retail sales of cannabis as a retailer (dispensary) or non- storefront retailer (delivery business), or microbusiness (retail sales activity) the maximum tax rate shall not exceed six percent (6%) of gross receipts, should the city ever allow such operations after the adoption of the ordinance establishing the taxes identified in this chapter.

4. For every person who engages in a cannabis distribution business, the maximum tax rate shall not exceed three percent (3%) of gross receipts.

5. For every person who engages in a cannabis manufacturing, processing, or microbusiness (non-retail activity) or any other type of cannabis business not described in subsection (D)(1), (2), (3) or (4), the maximum tax rate shall not exceed four percent (4%) of gross receipts. (Ord. 19-04 § 1, 2019)

The rates listed above are currently adopted in the City's fee schedule.

In an effort to determine the competitiveness of the City's cannabis tax rates, staff conducted an analysis comparing the City's tax structure with other cities that have operational cannabis businesses. Generally speaking, the City's retail tax rate (6%) is competitive; however, the City's non- retail rates are higher than other cities in the area.

Per the Hanford Municipal Code, Council has the authority to adopt a cannabis tax structure that reduces tax rates for non-retail businesses. Council may also modify the regulatory permit application process to simplify the cannabis permitting process.

One of the Council-Adopted goals for FY 23-24 is Fiscal Sustainability. A modification to the current non-retail rate structure has the potential to attract new non-retail businesses and a new revenue stream for the City's general fund.

FISCAL IMPACT
Potential for increased General Fund revenues

ATTACHMENTS:

None

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4.C.

AGENDA

STAFF REPORT

MEETING DATE: 5/16/2023 AGENDA SECTION: STUDY SESSION

SUBJECT:

Presentation to Council and discussion of the City of Hanford's overall street system and maintenance operations

RECOMMENDATION:

Recommendation: That the City Council receive this presentation from staff and provide direction as appropriate.

Recommended Motion:

BACKGROUND:

A recent Council action to approve a contract for annual street maintenance prompted questions to staff about the overall status of the City of Hanford Streets system. Additionally, ongoing presentations to the City Council for the FY 24 & 25 budgets will have an impact on the City's ability to improve the conditions of roads throughout the City. This presentation is the first phase of educating the Council and the Public on the City's street system, the current conditions, and the funding sources used to maintain streets.

FISCAL IMPACT:

ATTACHMENTS:

1. Street Presentation 051623

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Streets Maintenance
Operations

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Topics of Discussion
• Current Streets Network
• Categories of Streets
• Circulation Element
• PCI Study
• Street Selection Process
• Treatment Methods
• Street Saver
• Funding Sources

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Street Classifications and Definitions
• Residential – Local streets that provide direct access to adjoining land and connections to collectors.
• Example would be any street you would find in a neighborhood. • Collector- Collectors can provide a balance of land access and mobility functions within residential, commercial and industrial land use. Collectors connect local streets to arterials.
• Example would be Centennial, Leland, Douty, Glacier.
• Arterial- Provide a high level of mobility with limited access to adjacent properties. Arterials connect highway interchanges and support the principal roadway system. Arterials provide access to collectors and some local streets. • Example would be Grangeville, Lacey, Hanford-Armona, Fargo, 10th, 11th and 12th Ave.

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Hanford’s Current Street System
• Hanford currently maintains 219.03 center lane miles of streets. • 63.7% or 152.74 center line miles of Hanford’s streets currently fall into the residential category with an average PCI of 54.
• 7.4% or 13.8 Center line miles of Hanford’s streets are classified as collectors with an average PCI of 61.
• 28.9% or 53.10 center lane miles of Hanford’s streets are classified as arterials with an average PCI of 63.

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PCI Study
2019/2020 NCE was selected by King County Association of Governments (KCAG) to implement a pavement management system for various agencies within Kings County, including Hanford.

May of 2020 NCE provided its final report to the City.

NCE accessed every street in Hanford and assigned a PCI number (Pavement Condition Index).

Data updated annually.

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Selection Process
• Staff uses the Street Saver program for project recommendations, along with calls from the public and visual inspections to determine future projects.
• ADT (Average Daily Traffic), surface condition, subgrade issues are all taken into consideration when determining projects and applications. • One downfall of the Street Saver program is it recommends small jobs all over town and contractors charge a mobilization fee for every job. • Typically, we do our best to finish a neighborhood.
• There are occasions, such as this year, that we must pivot from one area to another due to circumstances out of our control, such as a change in traffic patterns, new residential developments, or weather.

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Treatment Methods
Ordered from Brain surgery to Band-Aid
• Reconstruction
• CIR (Cold in Place Recycling)
• Mill and Fill
• Double Fiber Seal
• Single Fiber Seal
• Deep Patching
• Crack Sealing
• Slurry Seal
• Patching
• Reclamite

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• Reconstruction
• Contractor hired to perform work.
• Completely demoed and redesigned.
• Storm drains, sidewalks, curb and gutter installed.
• Various streets
• Emma Lee Ln $1,176,924.70 included widening, storm drainage, lift station, widening of culvert, sidewalk and curb and gutter
• 20–25-year life expectancy
Emma Lee Ln between Grangeville and Jana Way

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• CIR (Cold in place recycling)
• Contractor is hired to grind asphalt in place.
• Then put back down and re-emulsified and compacted.
• Overlay of fresh permanent paving installed.
• Major collectors
• More cost effective than reconstruction.
• Lacey, 12th and 11th Ave. done at $36.69 a square yard (2015/16) 62,200 square yards • 15-20-year life expectancy.
11th Ave between Grangeville and Lacey Ave

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• Mill & Fill
• A contractor is hired to mill out a predetermined depth of asphalt and pave back the same amount. • City staff will repair sub grade issues ahead of time. • Various areas
• Contract for Davis St and Northstarcost $415,178.00 Included ADA improvements, manholes brought to finish grade, some concrete improvements and placing 2,015 tons of permanent paving at an average of $206.00 a ton
• 12–15-year life expectancy.

Campus Dr between Greenfield and Lacey Ave

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• Double Fiber Seal
• City staff will repair sub grade issues and crack seal. • Contractor is hired to apply two lifts of sealant with fiber additive. • Manholes are then lifted to grade.
• Done on arterials and collectors
• $5.20 per square yard (2022)
• 8–12-year life expectancy.

Greenfield between Campus Dr and 12th Ave.

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• Single Fiber Seal
• City staff crack seals ahead of project.
• A Contractor is hired to apply a single lift of sealant with a fiber additive. • Used on residential streets
• Adds additional wear surface
• $2.90 per square yard (2022)
• 5-10 years life expectancy
Richmond and Malone St

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• Deep Patching
• Performed by City Street crews.
• 77,000 SF deep patched last year.
• Various streets.
• Repairs subbase issues, such as wheel rutting and base failure. • Performed in advance of mill and fill and double fiber projects. • City cost for material, labor and equipment last year was $279,514.96 • Life expectancy varies on location and additional treatment.

Hanford Armona Rd between 11th Ave. and 12th Ave.

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• Crack Sealing
• Performed by City staff.
• Prevents water intrusion into subbase of street.
• Performed ahead of double/single fiber projects.
• Routine maintenance.
• Applied to various streets.
• City applied 51,680 pounds last year at a cost of $73,231.52 Equipment, labor and material. • Typically needs reapplied every 4 to 5 years if not sealed with another treatment. 11th Ave between Fargo and Flint Ave.

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Slurry Seal
• City staff crack seals ahead of project.
• A Contractor is hired to apply a single thin lift of small aggregate and oil. • Used on residential streets.
• Adds additional wear surface.
• .98 per square yard (2016/17)
• 5-7 years life expectancy.
• No longer performed in Hanford, replace by fiber seals due to longer life expectancy.

Foxhill Pl between Cortner and Bella Oaks Way

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• Patching
• Performed by City staff.
• Uses cold patch as well as permanent paving.
• City staff cleans pothole, applies a tack coat of emulsion, installs new material and compacts.
• Typically, a temporary fix due to other underlying issues. • Various streets.
• Cost is minimal, time, labor and material

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• Reclamite
• Applied by a contractor.
• Thin lift of penetrating oil applied to the street.
• Sand is applied once the oil sets.
• Sand is then swept up and disposed off.
• Traffic is left to “kneed” the oil into the asphalt.
• Applied to arterials and collectors.
• Cost .85 a square yard in 2021
Stock picture, not a Hanford application

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Street Saver Program
• Cloud based program
• All City streets are broken into segments and a PCI is assigned according to the pavement sections
• Program allows staff to run various scenarios including budget scenarios, life expectancy and treatment scenarios

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PCI Historical Index
PCI in 2018 was 67
Current PCI is 57
Arterial Streets are at 63
Collector Streets are at 61
Residential Streets are at 54

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PCI Examples

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2020 Scenario 1
• Scenario 1: The City’s anticipated funding for paving projects is approximately $3.7 million per year. At this funding level, the network PCI is expected to decrees from 62 to 51 by FY 2028/29

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2020 Scenario 2
• Scenario 2: To maintain PCI at 62, the City will need approximately $6.7 million per year over the next 10 years

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2020 Scenario 3
• Scenario 3: To improve PCI to 65, approximately $7.5 million per year through FY2028/29

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Scenario 4
• Scenario 4: To improve PCI to 70, approximately $8.9 million per year over the next ten years.

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Excluded costs
• All scenario costs are for street maintenance only
• Does not include costs for:
• Sidewalk repair
• ADA improvements
• Buried utilities
• Lighting
• Signage

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Typical Funding Sources
• Federal
• Community Development Block Grants
• Surface Highway Transportation Grant Program
• Highway Safety Improvement Program
• State
• State Transportation Improvement Program
• Active Transportation Program
• Transportation Development Act
• Local
• Sales Tax
• Development Impact Fees
• Parking and Permit Fees
• Parcel Taxes

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12.B.

AGENDA

STAFF REPORT

MEETING DATE: 5/16/2023 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of the Minutes of the May 2, 2023 Meeting

RECOMMENDATION:

Recommendation: Approve the minutes from May 2, 2023 Regular City Council Meeting.

BACKGROUND:

FISCAL IMPACT:

ATTACHMENTS:

1. May 2, 2023

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City Council Regular Meeting
Minutes
May 2, 2023 7:00 PM
Council Chambers
400 N. Douty St.

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

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

ROLL CALL BY THE CITY CLERK:

Present: Absent:

Council Member Lou Martinez
Council Member Mark Kairis
Council Member Kalish Morrow
Council Member Diane Sharp
Council Member Travis Paden

PUBLIC COMMENT:

None.

STUDY SESSION:

A. Presentation and Review of potential projects to include in Capital Improvement Plan (CIP) for upcoming fiscal year 2024 and 2025 Budget and Direction from Council on which projects to prioritize.

Finance Director Chris Tavarez discussed the 2023/24 and 2024/25 Budget and Capital Improvement Plan. The Council reviewed the CIP General Fund rankings and provided their feedback. Staff will not be making project recommendations to be funded from the General Fund by this budget unless they are offset by grants or reserves, or of utmost need. Staff answered questions from the Council. No action was taken. The CIP review will continue at the May 16, 2023 City Council Study Session.

B. Presentation regarding existing and future Downtown lighting and discussion and Council direction regarding the Repair and Replacement Strategy Deputy City Manager Waters discussed the need for new lights and a consistent design in the downtown area. He

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provided the history of the lights and discussed the challenges of replacing them. He provided photos of the current conditions of the lights. Staff would like to establish a design standard. Staff answered questions from the Council. The Council spoke in favor of the project with the white and gold design, and directed staff to establish a design standard.

Staff will bring the project back to a future meeting for the Council's review and approval.

C. Discussion of the history of City support for the Hanford Chamber of Commerce and Council consideration of the reformation of a Council Ad-Hoc subcommittee to work with the Chamber on the possibility of future City support
City Manager Cifuetez provided a brief background. The Chamber of Commerce Director Amory Marple discussed the Chamber's accomplishments since her employment at the Chamber. She also discussed their events, future goals, potential partnerships, their occupancy in the Courthouse, and future growth opportunities. City Manager Cifiuentez and Ms. Marple answered questions from the Council. After a brief discussion, the Council directed staff to move forward with a Ad-Hoc Subcommittee.The Council selected Council Member Morrow and Vice Mayor Kairis with Council Member Martinez as the alternate for the subcommittee.

The Council adjourned to closed session at 6:06 p.m.

CLOSED SESSION FOR DISCUSSION OF THE FOLLOWING:

A. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION (54956.9 (d)(2)) Anticipated litigation involving Annexation 159
CALL TO ORDER REGULAR SESSION:

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

ROLL CALL:

Present: Absent:

Council Member Lou Martinez
Council Member Mark Kairis
Council Member Kalish Morrow
Council Member Diane Sharp
Council Member Travis Paden

INVOCATION:

The invocation was led by Council Member Sharp.

FLAG SALUTE:

The flag salute was led by Mayor Paden.

RECOGNITION/PROCLAMATION:

A. Proclamation for recognition of "National Public Works Week", May 21-27, 2023.

Mayor Paden presented the "National Public Works Week" Proclamation to Public Works Director Jim Ross.

COUNCIL REPORTS/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).

The Council discussed the meetings and events they attended. During this time, the Council addressed the community's feedback regarding the Downtown Traffic and Pedestrian Improvements Project.

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PUBLIC COMMENT:

Bob Ramos addressed Vice Mayor Kairis's comments made during Council comments. He also discussed a meeting he had with Mr. Kairis. Mr. Ramos suggested Council Member Sharp recuse herself from voting on GB item A.

Nick Wagner addressed the comments made by Vice Mayor Kairis and Council Member Morrow. He also commented on past meetings regarding the traffic circle project.

Craig Johnson complemented Maintenance Worker Carmen Navarroo for her work in the community. He also commented on the newspaper article regarding the downtown traffic circle project. City Manager Cifuentez addressed his comments.

Jack Schwartz provided an update for the Carnegie Museum and invited the Council and public to the Carnegie's upcoming events.

Angel Rodriguez commented on the Downtown Traffic and Pedestrian Improvements Project and the amount of money the city is spending on the project. She also asked that the city keep the money local.

Dennis Ham commented on the downtown project and shared concerns about the negative affects this project will have on traffic and parking downtown.

Dulce Velazquez, of the American Cancer Society in Fresno, provided her background and expressed her concerns regarding second-hand smoke.

Sylvia Rios, a local volunteer of the American Cancer Society, discussed the negative affects of second-hand smoke and provided information packets for the Council.

Micheal Quinn spoke in opposition to putting a traffic circle downtown. He also expressed his concerns regarding the construction time of a traffic circle.

Kimber Reagan expressed her concerns about the downtown businesses being affected by a traffic circle.

Lynn Nelson commended Vice Mayor Kairis and Mayor Paden for their presentation regarding Heroes Park. She also commented on the traffic circle project.

Anna Brookshire commented on the budget for the traffic circle project.

Adrea Barona thanked the Council for following up on an issue he had in his neighborhood. He also shared his suggestions on how to keep the public informed. He also commented on the Sentinel article and suggested other areas in the city for a traffic circle.

Jim Showmaker expressed his concerns regarding a traffic circle in the central business district.

David Ayers commented on the Air Pollution Control District. He also spoke in opposition to the traffic circles in the downtown area and shared his past experience being on the City Council.

CONSENT CALENDAR:

Motion to Approve.

RESULT:

MOVER:

SECONDER:

Passed (UNANIMOUS)
Council Member Diane Sharp
Council Member Kalish Morrow

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AYES: Diane Sharp, Mark Kairis, Kalish Morrow, Travis Paden, Lou Martinez 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 April 4, 2023 Meeting C. City Clerk: Approval of the Minutes of the April 18, 2023 Meeting D. Administration: Approval of a new 1-year Service Agreement with Main Street Hanford for the same annual compensation amount of $81,090.

E. Finance: Acceptance and authorization for staff to File the City of Hanford's Quarterly Investment Portfolio and Transactions Reports as of 03/31/2023.

GENERAL BUSINESS:

A. Community Development: Authorization to award a contract to Interwest Consulting Group, for an amount not to exceed $391,944.72 and appropriation of said amount to provide engineering and design services for the Downtown Traffic and Pedestrian Improvements Project.

Deputy City Manager Waters discussed the consulting services for the Downtown Traffic and Pedestrian Improvements Project and the project's key milestones for the Council's review and consideration. Interwest Consulting Group Director Nicole Jules (teleconference) addressed the Council's questions and concerns. Staff answered questions from the Council. After much discussion, Council Member Sharp made the motion to award the contact to Interwest Consulting Group.

RESULT:

MOVER:

SECONDER:

AYES:

NAYS:

Passed
Council Member Diane Sharp
Council Member Kalish Morrow
Diane Sharp, Mark Kairis, Kalish Morrow, Travis Paden
Lou Martinez
COUNCIL COMMENTS AND COMMUNICATIONS::

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 Council consensus to direct staff to prepare a letter in opposition to AB 650. Council Member Martinez and Mayor Paden also expressed their concerns regarding the lights at Lacely Park.

A. Council Future Agenda Items
B. Upcoming Events and Important Dates:

May 1: Summer Day Camp Registration opens. Camp dates June 5, 2023 - August 4, 2023. Contact Parks and Community Services for more information at 559-585-2525 or Register Here
May 4: Thursday Night Market 5:30 pm - 9:00 pm
May 6: Food Truck Take Over in Civic Park 5:30 pm -9:00 pm May 10: City/County 2nd Quarter Coordinating Conference 6:00 pm at Fugazzi's hosted by the City of Hanford

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May 13: Helping Hands Volunteer Program YAC/Rotary 1098 Campus Drive 8:00 am - Noon Sign up here
May 16: Regular City Council Meeting
ADJOURNMENT:

Mayor Paden adjourned the meeting at 9:41 p.m.

Respectfully submitted,

/s/ Natalie Corral
Natalie Corral, City Clerk

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12.C.

AGENDA

STAFF REPORT

MEETING DATE: 5/16/2023 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of a 5-year contract renewal, for Workers' Compensation Third Party Administration services, with Acclamation Insurance Management Services, Inc., with a year one cost of $124,681.67 and authorization for the City Manager to execute all necessary documents.

RECOMMENDATION:

Recommendation: It is recommended that the City Council approve, by motion, the Claim Administrator Agreement between Acclamation Insurance Management Services, Inc. and the City of Hanford for five years and grant the City Manager authority to execute all necessary documents.

Recommended Motion: I move that the City Council approve the Claim Administrator Agreement between Acclamation Insurance Management Services, Inc. and the City of Hanford for five years and grant the City Manager authority to execute all necessary documents.

BACKGROUND:

A Third Party Administrator (TPA) is a company that Self-Insured employers, like the City of Hanford, contract with to administer the claims administration process. The process of properly and effectively administering claims is very complex as there are numerous mandated deadlines where actions must be taken. The reserving process is governed by a wide body of law and court cases, and effectively providing benefits and facilitating the injured worker to return to work has a direct effect on controlling the costs associated with a company’s workers' compensation program.

The City of Hanford has established a workers' compensation program with Acclimation Insurance Management Systems (AIMS) as our TPA. Upon the decision to move from our previous excess workers' compensation liability pool (CSJVRMA) to the city's current excess workers' compensation liability pool (PRISM), the City of Hanford needed to establish a five (5) year claims trend with AIMS before a flat contract for claims administration would be available. Currently, the City of Hanford is billed per claim for administration fees. The current administration fees are based on several factors including the type of injury claim reported and the length of time each claim is active.

The senior vice president of operations reached out to discuss establishing a new contract with a flat annual fee for administration costs, now that Hanford has established a 5 year claims trend.

The flat annual fee is based upon the five-year claims trend and current open claims. The City of Hanford has approximately 87 open workers' compensation claims with 47 identified as indemnity claims, 34 identified as future medical claims, and 6 identified as medical only claims. Should there be a 5% increase or decrease in open claims during any period of the Agreement due to significant change in the number of employees, and/or as a result of a catastrophic event, then both the Claim Administrator and the City of Hanford will negotiate in good faith, a reasonable fee increase or decrease based on the revision of required staffing.

The proposed agreement for services is for 5 years, including a 2.5% cost of living adjustment beginning in year 2, invoiced in 12 equal monthly amounts in arrears beginning July 1, 2023. The total annual flat fee proposed includes

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handling all claims activity in a 12-month period (claims already open at the beginning of the 12-month term and any new claims reported during the 12-month term).

Utilizing the last 12 months (3/2022 - 3/2023) of Administrative Fees paid for services, costs were $122,300.91.

Year One of the proposed contract is $124,681.67, which is a $2,380.76 increase for the first year. Given that the current rate of inflation is 8.3%, which would equate to $132,451.89 if utilized from our current billing schedule with an increase for inflation, the City will actually incur a cost savings of $7,770.22 in the first year of the proposed contract.

FISCAL IMPACT:

The annual cost of the contract is listed below and those fees are paid from the Workers' Compensation Fund (0410), which is funded by an allocation to all City departments.

Year One: $124,681.67
Year Two: $127,798.71*
Year Three: $130,993.68*
Year Four: $134,268.52*
Year Five: $137,625.23*

* Annual cost of living adjustment of 2.5%

ATTACHMENTS:

1. New Hanford 2023-2028 Contracts

2. Hanford Client Guidelines

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CLAIM ADMINISTRATOR AGREEMENT
THIS AGREEMENT is made and entered into as of this first (1 st) day of July, 2023, between, CITY OF HANFORD (hereinafter referred to as “CLIENT”), and ACCLAMATION INSURANCE MANAGEMENT SERVICES, INC. (hereinafter called the “Claim Administrator” and/or “AIMS”). Client and Acclamation Insurance Management Services, Inc. may each be referred to herein as a “Party”, or collectively as “Parties”.

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

I. APPOINTMENT AND AUTHORITY
A. Appointment. Subject to the express limitations of authority set forth herein and in accordance with the provisions of this Agreement, the CLIENT hereby appoints the Claim Administrator to adjust and administer claims, and the Claim Administrator accepts such appointment, for such class(es) of business and in such territories as are set forth in Schedule A, attached to this Agreement and incorporated by this reference herein.

B. Exclusivity. During the Term of this Agreement the Claim Administrator is the CLIENT’S only claims administrator in connection with claims outlined on Schedule A attached. All new notices of such claims that the CLIENT or its designee(s) first receive during the Term of this Agreement will be forwarded only to the Claim Administrator for the purposes of providing claim services as set out herein.

C. General Scope of Authority. In providing the claims services contemplated under this Agreement, the Claim Administrator agrees and is hereby authorized:

1. To investigate, adjust, settle, resist or otherwise process all submitted claims, pursuant to the procedures and within the authority granted by the CLIENT as set forth in Schedule B attached to this Agreement.

2. To investigate, adjust, settle, resist, or otherwise handle all submitted claims in excess of the authority granted or in variance of the procedures only with the prior approval of the CLIENT.

3. To make payment on claims approved for settlement in accordance with the procedures set forth in Schedule B attached.

4. To handle all submitted claims according to the requirements of any appropriate legislative and/or regulatory authority.

5. To file any reports, maintain any licenses or any other authorization necessary or required by law to carry out the Claim Administrator’s obligations and duties under this Agreement.

D. Settlement Authority. The Claim Administrator has the authority to do whatever is reasonably necessary, legal and proper to administer claims within the Claim Administrator’s settlement authority limit and

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in accordance with the procedures established under this Agreement. The Claim Administrator shall, in connection with such claims, exercise its own judgment unless the CLIENT specifically advises otherwise.

II. REPORTS AND RECORDS
A. Records. The Claim Administrator shall keep accurate, complete and separate records of all claims handled under this Agreement and for the duration set forth herein or as required by law and/or regulation. The claim files and records shall be established and maintained in accordance with applicable law and/or regulation and shall at a minimum contain all documents, notes, and work papers that reasonably pertain to each claim in such detail that pertinent events and the dates of the events can be reconstructed and the Claim Administrator’s actions pertaining to the claim can be ascertained. The open claim files shall be electronically stored in the Claim Administrator’s offices. Closed files will be maintained by the Claim Administrator for the term of this Agreement or sent to the CLIENT as requested by the CLIENT. All claim files, both open and closed, remain the property of the CLIENT no matter where they are held or stored. If the CLIENT chooses to have claim files shipped to a different location, costs of such shipping and photocopying of open claim files will be borne by the CLIENT.

B. Right to Inspect. The CLIENT, or its duly authorized representative, and any state insurance regulatory official may at all reasonable times inspect and copy any and all files, records, books, and bank account records maintained by the Claim Administrator for services provided under this Agreement. This right to inspect and copy records, books and bank account records shall survive the cancellation, suspension or termination of this Agreement and shall continue until all claims under this Agreement have been closed or returned to the CLIENT, and all regulatory requirements have been met.

C. Loss Run Reports. The Claim Administrator shall furnish the CLEINT and/or its designee(s) with standard loss run reports on a periodic and timely basis. The reports shall contain such information, in such form, and on such schedule as is reflected in Schedule B attached to this Agreement.

D. Reports for Regulatory Purposes. Upon written request, the Claim Administrator shall also provide the CLIENT with any reports or computer data related to the services performed for the CLIENT under this Agreement, that may be required by the CLIENT to satisfy various boards, bureaus, and state regulatory report requirements.

III. SERVICE FEES AND EXPENSES; PAYMENT TERMS
A. Service Fees. The CLIENT agrees to pay and the Claim Administrator will accept as full compensation for claim services provided under this Agreement the claim service fees as set out in Schedule C attached to this Agreement and incorporated herein by this reference.

B. Allocated Expenses. The CLIENT shall also be responsible for and shall pay all Allocated Expenses, as defined herein, in addition to the claim service fees as provided for in this Agreement. For the purposes of this contract, Allocated Expenses include but are not limited to the following:

1. Fees for medical examinations of claimants, including the reasonable and necessary transportation expenses of claimants.

2. Costs of reports from attending or examining physicians.

3. Attorney’s fees and disbursements.

4. Costs of Medicare Lien negotiation & objections.

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5. Costs of court reporting services and transcripts.

6. Witness attendance fees.

7. Court costs.

8. Printing costs related to trials and appeals.

9. Fees associated with the procuring of testimony, opinions, reports, and analyses of professionals and experts.

10. The costs of reports from government agencies or branches.

11. The costs of credit bureau reports.

12. The costs of private investigators.

13. The costs of photographs.

14. Medical or vocational rehabilitation costs and expert testimony.

15. Charges for medical costs containment services, i.e., utilization review, pre-admission authorization, Medical Provider Network, hospital bill audit, provider bill audit and medical case management and Call Center/Injury Intake.

16. Extraordinary travel expense incurred at the request of the CLIENT.

17. The costs of services related to the collection of the subrogation rights of the Client, for which the CLIENT shall have given prior approval.

18. All fees, excluding membership fees, for indexing claimants’ injuries and/or liability claims.

19. Mediation and arbitration costs.

20. Medicare Conditional Lien Negotiation costs
Such Allocated Expenses are limited to reasonable, customary and necessary expenses incurred by the Claim Administrator in the course of the performance of this Agreement.

C. Invoices and Disputes. Applicable service fees and Allocated Expenses (if paid directly by Client and not off the individual Claim File) will be invoiced to the CLIENT on a monthly basis. The CLIENT shall remit payment to the Claim Administrator within thirty (30) days (excluding holidays) after receiving the Invoice. The CLIENT may only withhold from payment an amount disputed by the CLIENT in good faith if it provides Claim Administrator with written notice of such dispute, together with reasonable detail of the facts underlying such dispute, within ten (10) days following the date of such invoice; otherwise such invoice shall be deemed final.

D. Audit Rights. During the Term upon the CLIENT’S request, the CLIENT shall have the right to inspect and audit the services provided the Claim Administrator within the previous twelve (12) month period.

The Claim Administrator shall make the applicable records relevant to the services provided during such period, and appropriate personnel, available during normal business hours for inspection or audit by the CLIENT or its authorized representative. The CLIENT will pay the cost of such audit unless an audit reveals an overbilling of five percent (5%) or more, in which case the Claim Administrator shall reimburse the CLIENT for the reasonable cost of the audit. The Claim Administrator shall immediately upon notice from the CLIENT pay or credit the CLIENT the amount of any overpayment exceeding five percent (5%) as revealed by the audit, together with any reimbursement pursuant to the preceding sentence.

IV. COMPLIANCE WITH APPLICABLE LAW
The Claim Administrator agrees to operate at all times in compliance with applicable federal, state, and local statutes, regulations, codes and ordinances, including those applicable to unfair trade and claim practices, complaint handling, and records retention pertaining to the services contemplated under this Agreement.

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V. TERM AND TERMINATION
A. Term. The term of this Agreement shall be for a period of five (5) years commencing on the date first written above (the “Initial Term”) and may be extended for subsequent one (1) year periods (each, a “Renewal Term”) by mutual agreement of the Parties in writing for an additional two (2) years. This Agreement covers the Initial Term stated above unless terminated pursuant to the provisions of this Agreement. Any Renewal Term shall be the subject of further negotiations between the Parties. The Initial Term and all Renewal Terms are collectively referred to as the “Term.”
B. Termination Without Cause. Either Party may terminate this Agreement by giving sixty (60) days’ advance written notice to the other Party.

C. Termination for Cause. Either Party may terminate this Agreement effective upon written notice to the other Party, if the other Party breaches this Agreement and such breach: (1) is incapable of being cured; or (2) being capable of cure, remains uncured for sixty (60) days after the breaching party receives written notice thereof.

D. Termination for Insolvency. Either Party may terminate this Agreement by written notice to the other Party if the other Party: (i) becomes insolvent or admits inability to pay its debts generally as they become due; (ii) becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency law which is not fully stayed within seven (7) business days or is not dismissed or vacated within forty-five (45) days after filing; (iii) is dissolved or liquidated or takes any corporate action for such purpose; (iv) makes a general assignment for the benefit of creditors; or (v) has a receiver, trustee, custodian, or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business.

E. Effect of Expiration or Termination. If the Agreement is terminated or not renewed:

1. the client shall exercise the following option within sixty (60) days prior to the date of termination/expiration:
a. Require the Claim Administrator to return all open files, at the Client’s expense, at the termination of the Agreement and the Claim Administrator shall be entitled to payment for all undisputed services rendered and Allocated Expenses incurred up to that time under this Agreement. The Client will secure services for the return of such files.

2. If any fees have been prepaid by the CLIENT, the Claim Administrator shall refund to the CLIENT the amount of any such prepaid fees that exceeds the value of services actually rendered by the Claim Administrator prior to the termination date.

F. Survival. Sections III.C (Invoices and Disputes), V.E (Effect of Expiration or Termination), VI.B (Claim Administrator Indemnification), VI.C (CLIENT Indemnification), VI.D (Indemnification Procedures), VI.E (Limitation on Liability), VII (Representations and Warranties), VIII (Dispute Resolution), IX (Confidentiality), X (Relationship of the Parties), and XI (General Provisions), and any right or obligation of the Parties in this Agreement which, by its express terms or nature and context is intended to survive termination or expiration of this Agreement, will survive any such termination or expiration.

VI. INSURANCE, INDEMNITY, AND LIMITATION ON LIABILITY

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A. Insurance.

1. The Claim Administrator, at its sole cost and expense, is required to maintain in full force and effect during the Term of this Agreement:
a. A policy of errors and omissions insurance coverage appropriate to the Claim Administrator’s profession, which affords coverage in the minimum amount of $5,000,000 per occurrence/claim, with a per claim or occurrence deductible not to exceed $25,000; and
b. A policy of general liability insurance and automobile liability insurance coverages, which afford coverage in the minimum amount of $1,000,000, with coverage including but not limited to Bodily Injury and Property Damage.

2. Insurance required hereunder shall be primary and non-contributing coverage over any other valid and collectible insurance available to the CLIENT. The Claim Administrator shall furnish proof of such insurance to the CLIENT prior to initiation of this Agreement and each renewal thereof, and shall provide notification to the CLIENT in the event of lapse of such coverage.

B. Claim Administrator Indemnification. The Claim Administrator hereby agrees to indemnify, defend, and hold the CLIENT harmless from any and all third party claims, damages, actions, liability or loss which result solely from negligent or willful acts, errors or omissions of the Claim Administrator, or its servants, agents or employees, in the performance of duties under this Agreement, except to the extent such Losses are caused by the gross negligence or willful misconduct of the CLIENT or its officers, employees, or agents.

C. CLIENT Indemnification. The CLIENT hereby agrees to and hereby does indemnify, defend (with counsel reasonably acceptable to the Claim Administrator) and hold harmless Claim Administrator (and its affiliates, agents, employees, attorneys, successors and assigns) from and against any and all suits, actions, claims, demands, losses, liabilities, damages, judgments, fines, penalties, deficiencies, costs and expenses, including interest, penalties and reasonable attorneys’ fees and costs, based upon, arising out of or otherwise in connection with: (i) any breach by the CLIENT of any warranty, covenant or agreement, or any inaccuracy in any representation of the CLIENT contained in this Agreement; or (ii) the CLIENT’S failure to duly perform or observe, or otherwise negligent act, error, or omission, regarding any term, provision, covenant or agreement to be performed or observed by the CLIENT to this Agreement.

D. Indemnification Procedures. The party seeking indemnification (“Indemnitee”) will promptly notify the indemnifying party (“Indemnitor”) in writing of any action for which it seeks to be indemnified and cooperate with the Indemnitor at the Indemnitor’s sole cost and expense. The Indemnitor shall immediately take control of the defense and investigation at its sole cost and expense. The Indemnitor shall not settle any action in a manner that adversely affects the rights of the Indemnitee without its prior written consent, which shall not be unreasonably withheld. The Indemnitee’s failure to provide notice as promptly as practicable will not relieve the Indemnitor of its indemnity obligations except to the extent that the Indemnitor can demonstrate that it has been materially prejudiced as a result of such failure. The Indemnitee may participate in and observe the proceedings at its own cost and expense with counsel of its own choosing.

E. Limitation on Liability. IN NO EVENT WILL EITHER PARTY BE LIABLE UNDER THIS AGREEMENT

FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES WHETHER

ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, REGARDLESS OF

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WHETHER SUCH DAMAGE WAS FORESEEABLE AND WHETHER EITHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING OR ANY OTHER PROVISION OF THIS AGREEMENT, ANY PURPORTED LIMITATION ON A PARTY’S LIABILITY SHALL NOT APPLY TO ANY CLAIM ARISING FROM (a) THE PARTY’S BREACH OF ITS OBLIGATIONS WITH RESPECT TO CONFIDENTIAL INFORMATION; OR (b) DAMAGES TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE PARTY’S EMPLOYEES, DIRECTORS, OFFICERS, OR SUBCONTRACTORS.

VII. REPRESENTATIONS AND WARRANTIES
A. Mutual Representations and Warranties. Each party represents and warrants to the other party that: it is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation or organization; it has the full right, power, and authority to enter into this Agreement, and to perform its obligations hereunder; and when executed and delivered by both parties, this Agreement will constitute the legal, valid, and binding obligation of such party, enforceable against such party in accordance with its terms.

B. Performance Warranty. The Claim Administration further represents and warrants to CLIENT that it will perform all services under this Agreement in a professional and workmanlike manner in accordance with industry standards and practices for similar services, and shall devote adequate resources to meet its obligations under this Agreement.

C. Licenses. The Claim Administrator warrants that it and its adjuster employees now have all licenses necessary to perform the services described in this Agreement. The Claim Administrator agrees it and specifically the adjusting employees who are assigned to the CLIENT’s account will maintain during the Term any such necessary licenses. In the event that the Claim Administrator’s license expires or terminates, for any reason, the Claim Administrator shall immediately notify the CLIENT and this Agreement shall automatically terminate as of the date of such licenses expiration or termination, unless within ten (10) days from the date the CLIENT receives notice of the license expiration or termination from the Claim Administrator, the CLIENT agrees, in writing, to modify the provisions set forth in this Paragraph.

D. DISCLAIMER OF WARRANTIES. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS

AGREEMENT, EACH PARTY HEREBY DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, WITH RESPECT TO SERVICE PROVIDED UNDER THIS AGREEMENT.

VIII. DISPUTE RESOLUTION
A. Arbitration. The Parties agree to meet and confer in good faith to resolve any disputes (e.g., regarding the Agreement’s existence, interpretation, validity, or termination) that may arise between them under this Agreement. If such disputes cannot be resolved informally within twenty (20) days or such other reasonable period of time, the Parties may agree to submit the dispute(s) to binding arbitration. Following the expiration of the meet and confer period required above, such arbitration may be initiated by either party making a written demand for arbitration on the other party. There shall be one arbitrator. The Parties shall mutually agree upon an arbitrator. Should the Parties not agree, the Parties shall request a list of five qualified arbitrators from the American Arbitration Association, and the parties shall select the arbitrator by lot from the names submitted. The arbitrator shall be impartial and shall be a licensed claims person or an attorney admitted to practice in the State of California, who during the 24 months immediately preceding the nomination has devoted 75% of his or her practice to the defense of employers before the California Department of Labor and Industrial Relations. The arbitrator shall conduct the arbitration in accordance with the Rules of the

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American Arbitration Association then in effect. The Parties agree that this Agreement will be interpreted and enforced pursuant to the laws of the State of California. The decision of the arbitrator shall be final and reduced to writing. The judgment of the arbitrator will be accompanied by a written statement of the basis for such judgment, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Any such arbitration shall take place in Sacramento, California. The Claim Administrator and the CLIENT shall bear the cost of arbitration equally between them, and each shall bear and pay their own attorneys’ fees and costs.

B. Venue. Any suit, action or proceeding by or against either Party, including any proceeding to compel arbitration, to confirm the arbitration award, or to enforce any remedy available to either Party, shall be brought in the appropriate court in the State of California, City and County of Sacramento, or in the United States District Court Northern District of California, and each of the Parties submits and consents to the non- exclusive jurisdiction of either of such courts for the purpose of any such suit, action or proceeding. Process in any suit, action or proceeding may be served by registered or certified mail addressed to the Party at its last known address.

IX. CONFIDENTIALITY
A. Confidential Information Defined. During the performance of this Agreement, a Party may provide to the other Party information orally, in writing or by electronic means (whether through secured access through their respective internal websites, systems networks, and/or databases or otherwise), that is confidential and/or proprietary information (“Confidential Information”), including, but not limited to: (i) business and financial data, technical data, manuals, forms, records, methods, product information, strategic plans, potential and existing strategic partner information, sales and marketing information, and other information necessary for Claim Administrator to perform its duties; (ii) trade secrets and other intellectual property, and software applications or components thereof, including the source code, whether developed in- house or otherwise owned by either of the Parties; and (iii) personally identifiable consumer information and nonpublic personal information of the CLIENT’s employees, customers, and consumers. For purposes of this Section, the Party providing Confidential Information is referred to as the “Disclosing Party” and the Party receiving Confidential Information is referred to as the “Receiving Party”.

B. Restrictions on Use. The Receiving Party shall maintain such Confidential Information as confidential and shall use reasonable efforts to ensure that it shall be used only for the purposes contemplated in this Agreement. The Receiving Party shall not disclose or release any Confidential Information to any entity or person other than its employees and representatives on an as-needed basis without the express written consent of the Disclosing Party or as may be required by law or court order.

C. Safeguards. The Receiving Party shall implement and maintain appropriate information security policies and procedures with the same care as used by a reasonable person in protecting his or her own Confidential Information, which policies and procedures shall include administrative, technical and physical safeguards designed to: (1) ensure the security and confidentiality of Confidential Information; (2) protect against any anticipated threats or hazards to the security or integrity of Confidential Information; and (3) protect against unauthorized access to or use of Confidential Information. The Claim Administrator further agrees, upon request by the CLIENT, to provide confirmation that such safeguards have been implemented.

D. Data Security Incident. The Receiving Party shall immediately, and in any event within seventy- two (72) hours, notify the Disclosing Party of any unauthorized access, use, disclosure, alteration or theft

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involving the Disclosing Party’s Confidential Information and shall cooperate with the Disclosing Party to determine any applicable notice requirements. By way of clarification and not limitation, any compilation, aggregations, reports, studies, or analyses generated by the Claim Administrator is expressly permitted under this Agreement and shall not be deemed the CLIENT’s Confidential Information and may be used internally by the Claim Administrator solely to assist in making assessments pursuant to this Agreement, and shall not be disseminated.

E. Compelled Disclosure of Confidential Information. If the Claim Administrator is served with a subpoena, court order, or other legal document demanding or requiring the release of Confidential Information, Claim Administrator shall immediately give notice to the CLIENT. The CLIENT shall decide whether to take any legal action in response to any such subpoena, court order, or other legal document and Claim Administrator shall cooperate with and assist the CLIENT (at no cost or expense to the Claim Administrator) in seeking a protective order, moving to quash the subpoena, or otherwise obtaining relief from disclosing Confidential Information. If the CLIENT waives compliance or, after providing the notice and assistance, the Claim Administrator remains required by law to disclose any Confidential Information, the Claim Administrator shall disclose only that portion of the Confidential Information that it is legally required to disclose.

X. RELATIONSHIP OF THE PARTIES
A. Independent Contractor. The Claim Administrator and its employees, in their performance of their duties under this Agreement shall do so as independent contractors, and shall act in compliance with such rules, regulations, or instructions as the CLIENT may prescribe in writing. Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture, or other form of joint enterprise, employment, or fiduciary relationship between the parties, and neither party shall have authority to contract for or bind the other party in any manner whatsoever. The CLIENT does not, by this Agreement, reserve control over the methods or procedures to be utilized by the Claim Administrator or any of the Claim Administrator’s employees, contractors, or vendors. All personnel used to perform the specified services under this Agreement shall be employees, contractors or vendors of The Claim Administrator, and shall not be deemed to be the employees or agents of the CLIENT. The Claim Administrator shall determine the wages, working hours, and other working conditions for its personnel and shall monitor and control the quality of their work performance.

The Claim Administrator acknowledges that its personnel have no right, entitlement, or claim against the CLIENT for Social Security benefits, workers’ compensation benefits, disability insurance, pension pay, vacation pay, sick pay, or any other employee benefit of any kind.

B. Service Provider Status under California Law. Under the Agreement, CLIENT will provide the Claim Administrator with consumers’ personal information so that the Claim Administrator may provide services to the CLIENT. In addition to the confidentiality obligations set forth in the Agreement, the Claim Administrator further agrees that it shall not: (1) sell, rent, release, disclose, disseminate, make available, transfer, or otherwise communicate orally, in writing or by electronic or other means, the personal information of consumers disclosed to it by the CLIENT to another business or third party for monetary or other valuable consideration; (2) retain, use, or disclose such personal information of consumers for any purpose (including for a commercial purpose) other than for the specific purpose of performing the services specified in the Agreement; or (3) retain, use, or disclose such personal information outside of the direct business relationship with the CLIENT. Pursuant to California Civil Code section 1798.140(w)(2)(A)(ii), the Claim Administrator hereby certifies that it understands the restrictions set forth above and it will comply with such restrictions. For purposes of this Section X.B, the following terms shall have the meanings set forth in California Civil Code section 1798.140: business, business purpose, consumer, personal information, sell and third party. The parties

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further acknowledge that federal and state laws regarding data security and privacy are rapidly changing and therefore agree to take any necessary action, including amendment of this Agreement if required, to ensure continued compliance with applicable law, including without limitation, California Civil Code section 1798.140(w)(2).

C. Non-Solicitation. The CLIENT acknowledges that it may obtain knowledge of or access to employees of the Claim Administrator during the Term. The CLIENT agrees that during the Term of this Agreement and for one (1) year after expiration or termination of this Agreement, the CLIENT will not directly or affirmatively solicit, or induce any other person to solicit, any employee of the Claim Administrator while such employee is employed by the Claim Administrator, to become an employee or contractor of the CLIENT. The CLIENT acknowledges that the Claim Administrator is operationally dependent upon its employees (including employee use of the Claim Administrator trade secrets and other proprietary information), and in the event any of its employees are solicited and hired by the CLIENT or another claim administrator contracting with the CLIENT, the Claim Administrator would incur costs incident to recruiting, hiring, and training a replacement for the solicited employee, in addition to any operational impairment or disruption (and related costs and damages) that might occur between the departure of the solicited employee and the hiring and training of a replacement.

This paragraph shall not apply to general, public solicitations, such as advertisements or job postings, which are directed to the public at-large. If the Claim Administrator employee is hired by the CLIENT or a claim administrator contracted by the CLIENT, the CLIENT shall pay the Claim Administrator an amount equal to 125% of such employee’s annual the Claim Administrator salary, as liquidated damages. The parties agree that quantifying losses arising from the solicitation of the Claim Administrator employees will be inherently difficult to estimate accurately given the use of the Claim Administrator trade secret and proprietary information and the true extent and duration of the damages may not be able to be estimated. The parties further agree that the above established sum is not a penalty but rather a reasonable measure of damages that would result from the CLIENT’s breach of this paragraph, based on the parties’ experience within the industry and given the nature of the losses the Claim Administrator might incur in connection with the solicitation of its employees.

XI. GENERAL PROVISIONS
A. Severability. If any term or provision of this Agreement, or the application of any term or provision of this Agreement to a particular situation, shall be finally found to be void, invalid, illegal or unenforceable by a court, then notwithstanding that determination, the term or provision shall remain in force and effect to the extent allowed by such ruling and all other terms and provisions of the Agreement or the application of this Agreement to other situations shall remain in full force and effect. Notwithstanding the foregoing, if any material term or provision of this agreement or the application of such material term or condition to a particular situation is finally found to be void, invalid, illegal or unenforceable by a court, then the Parties agree to work in good faith and fully cooperate with each other to amend this Agreement to carry out its intent.

B. Entire Agreement. This Agreement, together with the exhibits attached hereto, constitutes the entire agreement between the parties pertaining to its subject matter, superseding all prior and contemporaneous agreements, proposals, letters of intent and memorandums of understanding, and no other representations or understandings of the parties, whether written or oral, shall be binding.

C. Assignment. Neither party may, voluntarily or by operation of law, assign, delegate, or transfer any of its rights or obligations under this Agreement without the prior written consent of the other party. This

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Agreement is binding upon and inures to the benefit of the parties hereto and their respective permitted successors and assigns.

D. Force Majeure. Any delay or failure of either party to perform its obligations under this Agreement will be excused to the extent that the delay or failure was caused directly by an event beyond such party’s control, without such party’s fault or negligence and that by its nature could not have been foreseen by the party, or if it could have been foreseen, was unavoidable (which events may include natural disasters, embargoes, explosions, riots, wars or acts of terrorism, and labor disputes) (each, a “Force Majeure Event”). The affected party shall give the other party prompt written notice of any event or circumstance that is reasonably likely to result in a Force Majeure Event, and the anticipated duration. The affected party shall use all diligent efforts to ensure the effects of any Force Majeure Event are minimized and resume full performance under this Agreement as soon as possible.

E. Interpretation. The captions of the various provisions of this Agreement shall not be deemed a part of this Agreement and shall not be construed in any way to limit the content thereof but are inserted herein only for reference and for the convenience of the parties.

F. Governing Law. This Agreement shall in all respects be interpreted, enforced and governed under the laws of the State of California, exclusive of its choice of law rules.

G. Equitable Relief. Each party acknowledges that a breach or threatened breach by a party of Section IX (Confidentiality) would cause the other party irreparable harm for which monetary damages would not be an adequate remedy and agrees that, in the event of such breach or threatened breach, the other party will be entitled to equitable relief and any other relief that may be available from any court, without any requirement to post a bond or other security, or to prove actual damages or that monetary damages are not an adequate remedy. Such remedies are not exclusive and are in addition to all other remedies that may be available at law, in equity, or otherwise.

H. No Third-Party Beneficiaries. Except as expressly provided herein, no provision of this Agreement is intended to confer any benefit upon any third party and no third party shall have the right to enforce any provision of this Agreement.

I. Amendment and Modification; Waiver. This Agreement, including, without limitation, its schedules attached hereto, may not be modified except in a writing executed by authorized representatives of the parties. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver.

J. Effective Date. This Agreement shall be effective as of the date first written above.

K. Notices. All notices or other communications given hereunder shall be in writing and shall be deemed to have been duly given (i) on the date delivered if delivered by personal delivery or by overnight delivery service (such as FedEx); (ii) on the third (3rd) business day after mailing via U.S. registered or certified mail, first class, postage prepaid; or (iii) on the date transmitted by facsimile with confirmation of successful transmission. Any notices or other communications given hereunder shall be addressed as follows, provided that either party may specify a different address by written notice to the other party in accordance with this Section.

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If to the Client: City of Hanford
900 South 10th Avenue
Hanford, CA 93230
Phone: (559) 585-2500
Fax:

Attn: Shauna Biagio, Risk Management Analyst
If to the Claim Administrator: Acclamation Insurance Management Services, Inc. 10445 Old Placerville Road
Sacramento, CA 95827
Phone: (916) 563-1900
Fax: (916) 563-1919
Attn: President & Chief Executive Officer
L. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute but one and the same Agreement. [Signatures on Following Page]

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IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed by their duly authorized representative as of the Effective Date.

CITY OF HANFORD
By: _________________________________________
Name: ______________________________________
Title: _______________________________________

ACCLAMATION INSURANCE MANAGEMENT
SERVICES, INC.

By: _________________________________________
Name: Dominic Russo
Title: President & CEO

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LIST OF SCHEDULES
Schedule A Program Scope and Territory
Schedule B Claim Administration Procedures and Authority Schedule C Claims Service Fees

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SCHEDULE A

SCOPE AND TERRITORY
Program Administrator: Acclamation Insurance Management Services, Inc.

Class of Business: Workers’ Compensation
Territory: State of California

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SCHEDULE B

CLAIM ADMINISTRATION PROCEDURES AND AUTHORITY
The CLIENT and AIMS maintain the performance standards outlined in the Client Service Guidelines and/or AIMS’ Best Practices Manual, which is incorporated herein by reference and is made part of this Agreement as if fully set forth herein.

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SCHEDULE C

CLAIM SERVICE FEE AND OTHER FEES
The Claim Administrator (AIMS) Fees
The CLIENT agrees to pay and the Claim Administrator will accept as full compensation for claim services provided under this Agreement the claim service fees as set out below.

The Claim Administrator’s “flat annual fee” for the Claims Administration Services includes the handling of all current open claims, new indemnity claims, and new medical only claims during the life of the Agreement.

The flat annual fee is based upon the current open claims (approximately 87open claims with approximately 47 identified as indemnity claims, approximately 34 identified as future medical claims and approximately 6 identified as medical only claims).

Should there be a 5% increase/decrease in open claims during any period of the Agreement due to significant change in the number of employees, and/or as a result of a catastrophic event, then both the Claim Administrator and the CLIENT will negotiate, in good faith, a reasonable fee increase/decrease fee adjustment based on any revised required staffing.

Claim Administrator’s flat annual fees:

Year One $ 124,681.67
Year Two $ 127,798.71*
Year Three $ 130,993.68*
Year Four $ 134,268.52*
Year Five $ 137,625.23*
* Annual cost of living adjustment of 2.5%.

The total annual flat fee proposed above contemplates handling all claims activity in a 12-month period (claims already open at the beginning of the 12-month term and any new claims reported during the 12-month term).

The annual fee will be invoiced in 12 equal monthly amounts, in arrears, with payment terms of net 30 days.

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Medical Management Services Utilizing Allied Managed Care, Inc. (AMC) Fees AMC PRICING AND BILLING – FEE FOR SERVICES
•On a monthly basis, the Contractor will invoice for all services included in the Fee for Service. The invoice will include a report by claim number, employee name and date and type of service provided. •Below are the fees for services.

Service Pricing oNotes
Utilization Review $95.00 Flat Rate
Peer Review $225.00 Flat Rate
TCM $95.00 Hourly
FCM
Bill Review – Per bill plus PPO
$120 .00
$8.50 per bill
Hourly
Bill Review – Specialty 10% of savings Cap at $5,000K
PPO Blue Cross 26% of savings
EDI Billing $1.00 per bill Pass through
MPN $1,500.00 per month
Call Center/Injury Reporting $165.00 per call Resulting in WC Claim Filed IX. ALLIED MANAGED CARE MEDICAL PROVIDER NETWORK
•Annual Pricing - $18,000.00 per year/$1,500.00 per month (regardless of claim volume). This includes Certification from State & Enrollment Notices to all employees. Complete monitoring of the MPN for State Compliance and reporting with toll free access/assistance for employers and injured employees and all services listed under the no charge services.

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Client Guidelines
May 2023

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Linked Table of Contents

1. Contacts

2. Basic Communication

3. Benefit Notice Letters

4. 3-Point Contact

5. Bargaining Units

6. ISO Searches

7. Plan of Action (POA) Updates

8. Benefits - Disability Verification

9. Lost Time Benefits

10. Investigations

11. Medical Provider Network

12. Medical Treatment Authorization/Initial Treatment

13. Bill Review

14. Utilization Review (UR)

15. Pharmacy Benefit Management (PBM)

16. Nurse Case Management (NCM)

17. Return to Work (RTW)/Program

18. Litigation

19. Special filings such as 132(a), Serious & Willful (S&W) and petition for penalties

20. Subrogation

21. Medicare

22. Settlements

23. Reserves

24. Claim Review Meetings

25. Excess Insurance

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INTRODUCTION

The following are guidelines for handling instructions for City of Hanford Workers’ Compensation Program.

 Program Contacts:

Shauna Biagio
Risk Management Analyst
319 N. Douty Street
Hanford, CA 93230
(559) 537-7993
Email:
[email protected]

Sara Cardoza
Human Resources Manager
319 N. Douty Street
Hanford, CA 93230
(559) 585-2521
Email:
[email protected]

 Day to Day Contact, Return to Work Coordinator:

Shauna Biagio
Risk Management Analyst
319 N. Douty Street
Hanford, CA 93230
(559) 537-7993
Email:
[email protected]

 Wage Statement Requests, Job Description Requests

Shauna Biagio
Risk Management Analyst
319 N. Douty Street
Hanford, CA 93230
(559) 537-7993
Email:
[email protected]

 Broker Contact:

Conor Boughey, ARM
SVP, Alliant Specialty
Alliant Insurance Services, Inc

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Mobile: (415) 744-4889
Email:
[email protected]

AIMS Contacts :

Acclamation Insurance Management Services AIMS- Fresno Office Mail Scanning Center: P. O. Box 269120 Sacramento, CA 95826 Operator (559) 559-9891 · Fax (559) 227-1579
Mail Fax (916)563-1919

Name/Title

Phone / E-mail
Jennifer White
Claims Manager - Fresno

(559) 227 -9972 Ext: 490 9
[email protected]
Karla Artist-Vilhauer
Supervisor
(559) 227-9972 Ext: 4935
[email protected]
Eric Guzman (Safety Departments )
Sr. Claims Examiner
(559) 227 -9972 Ext: 4912
[email protected]
Mily Excinia (Non-Safety Departments)
Sr. Claims Examiner
(559) 227-9972 Ext: 4947
[email protected]
Rebecca Sanchez
Medical Only Examiner
(559) 227-9972 Ext: 4915
[email protected]
Lorraine Maull
Future Medical Examiner
(559) 227-9972 Ext: 4907
[email protected]
Corporate Resources
Dominic Russo
CEO

(916) 563-1900 Ext: 2207
[email protected]
Lynn Cavalcanti
Senior Vice President, Operations

(916) 563-1900 Ext: 2259
[email protected]
Tricia Baker
Assistant Vice President, Operations

(916) 563-1900 Ext: 2389
[email protected]
Tina Patterson
Data Delivery Services (DDS)

(916) 563-1900 Ext: 2218
[email protected]
Marileigh Olivares
Data Delivery Services (DDS)
(916) 563-1900 Ext: 2343
[email protected]

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 AIMS System Issue Assistance

[email protected] Use for urgent issues regarding access to report 5020, computer error message on AIMS site as all team members are alerted, or call the main number, (916) 563-1900 and explain your issue to be directed to an available DDS support member.)
The client may also request special reports via email to [email protected].

 Allied Managed Care (AMC) Contacts :

Name/Title

Phone / Fax / E-mail
Mark Denison
Senior Vice-President Operations
Sacramento Corporate Office
Phone: (916) 563-1900
Fax: (916) 563-1919
Cell: (916) 716-6363
Email:

[email protected]
Osanna Anastasio
Client Service Manager
Sacramento Branch Office

Phone: (916) 563-1911
Fax: (916) 563-1919
Email:

[email protected]
Amrit Rathor
Handling Districts – Folsom Cordova, Rocklin USD, Loomis, and Marysville Joint.

Phone: (916) 563-1911
Fax: (661) 705-2985
Email:

[email protected]

 Invoicing or Billing Contact:

COMPANY NAME/TITLE/CONTACT PHONE/FAX/E-MAIL
AIMS

Chris Vergers
VP Finance & Controller

Debbie Jones
A/R Analyst

Sacramento Corporate office
10445 Old Placerville Road
Sacramento, California 95827
Phone: (916)563-1900
Fax: (916) 563-1919
[email protected]
[email protected]

 Banking Contact:

COMPANY NAME/TITLE/CONTACT PHONE/FAX/E-MAIL
AIMS
Client Reconciled Trust-Wells
Fargo

Kim Chanu
Sr. Accountant
Contact: Stop pays, voids, check
copies

Sacramento Corporate office
10445 Old Placerville Road
Sacramento, California 95827
Phone: (916)563-1900
Fax: (916) 563-1919
[email protected]

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 Check Front and Back Copies for checks: Check Front and Back Copies for checks email and include the claimant name, claim number, and check number and issue date. Contact AIMS Sr. Accountant for voids and stop payment requests.

 Funding:

This account is funded monthly with the bank reconciliation. Kim Chanu sends the reconciliation to [email protected] and Shauna Biagio [email protected], then funds are wired within a few days.

 Basic Communication

Any email containing confidential information should be sent via secure email to protect the Injured Workers’ data and privacy.

Examiner should contact and share the intent to either accept/deny with client. They should explain the facts leading to their decision and include the efforts made on investigations, if applicable.

 3-Point Contact:

Contact will be made with the injured employee, the employee’s Supervisor, and the medical provider within 24 hours. A minimum of 3 attempts will be made at reaching the parties. All attempt shall be documented.

 Bargaining Units

Update the union code in claim detail for all new claims at the time of creation.

City of Hanford Police Officer’s Association
Ombudsperson: Maria Mariotto
IME Panel: Yes
First Care Panel: Yes
Specialist Panel: Yes

 ISO Searches
AIMS established Best Practices specify ISO searches are completed on all new claims and re-indexed on an as needed basis thereafter. (i.e. a future medical file that was closed for several years is seeking treatment again).

 Plan of Action (POA) Updates : As a requirement when receiving a new claim file, the Examiner must include a plan of action detailing what avenues the Examiner will pursue to reach an early disposition of the claim file. Plans of Action are usually updated once milestones have been accomplished and when an event or other item is received that changes the direction of the claim. If no activity takes place that would change the Plans of Action, the Examiner will comment on that fact in the file notes and update the plan to reflect same.

 Lost Time Benefits

Temporary Disability

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Wage Loss
4850 Benefits

We issue payments on Hanford’s payroll schedule. All TD and 4850 payments are sent via vouchers to the City:

Injured Worker c/o City of Hanford unless they no longer work there or are part time. Examiner confirms with Shauna Biagio if Integration is applicable. If no integration, then checks will be issued and go directly to the injured worker.

 Investigations

Obtain authority from client
Examiners may request a copy of the claimant’s photo ID from client to conduct a claims investigation (i.e. surveillance).

 Medical Provider Network:

The City of Hanford does not have an MPN.

 Medical Treatment Authorization/Initial Treatment

Kings Industrial Occupational Medical Center
1028 N Douty St
Hanford CA 93230

Kings Industrial Medical Centers
5135 W. Noble Ave.

Visalia, CA 93277

 Bill Review: AMC

 Utilization Review: AMC

Client prefers adjusters authorize most common treatments and DME’s, etc. Surgeries and Opioid medica tions are always sent to UR.

 Pharmacy Benefit Management (PBM)

HealtheSystems
www.healthesystems.com
(800) 758-5779 - 24/7
[email protected]
NDC Bin# 012874

The Healthesystems Pharmacy program is in place for nurse case management to address non-exempt drugs and the new California formulary in place 01/01/2018.

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 Nurse Case Management (NCM): Allied Managed Care: Examiner obtains client approval for referrals.

 Return to Work (RTW)/Program

Examiner will provide client with all medical notices and work slips indicating work restrictions as soon as possible after receipt.

Examiner will contact Shauna Biagio to determine if work restrictions can be accommodated.

 Litigation

Examiner will handle issues directly with an applicant attorney whenever possible to avoid unnecessary litigation costs.

When the Examiner determines a defense attorney is needed, the Examiner will outline the issues and request client authority for assignment. The notepad will be updated with the authorization.

Examiner referrals are made through the AIMS Rapid Referral Program. The referral will clearly outline the issues and give direction to the defense attorney.

Notice of any appearance is to be provided at least 15 days prior to the WCAB calendar date.

 Special filings such as 132(a), Serious & Willful (S&W) and petition for penalties

Any mention of harassment or other Equal Employment Opportunity (EEO) type of issue notify client based on alpha split immediately.

A copy of all petitions for penalties, increased benefits, or which allege violations of safety or anti-harassment rules, must be immediately forwarded to client.

 Subrogation

AIMS handles subrogation and recovery for City of H anford. Checks should be payable to City of Hanford in care of AIMS.

Subrogation potentials are to be explored against any potential recovery. When any third-party is identified as a responsible party, the adjuster will update the fil e and send an email to client outlining information on the third party. Subrogation legal referrals need client authorization.

AIMS does not have authority to waive subrogation c laim, or accept less than a full recovery for a sub rogation demand, without client’s authority. In some cases, excess carrier may also need to approve waiving subrogation or accepting less than full value.

 Medicare

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Obtain client authorization for MSA referrals.

ExamWorks Solutions (ECS) is the vendor that reports Medicare data. Conditional Liens are preauthorized by the client for ECS to handle as ECS normally receives the conditional lien directly from CMS. The Examiner will work with the vendor and the client to resolve or deny the liens.

 Settlements

Examiner is to complete a Settlement Authority Request (SAR) form for Stipulated Awards or Compromise and Release for all settlements, including 0% Stipulated Awards.

Settlement must give consideration to Medicare Set-aside exposure, Medicare reimbursement for conditional payments, and Medicare eligibility of the injured employee.

Settlement evaluations will be based on the Claims Examiner’s knowledge of the claim, facts of the claim, and overall experience.

Examiners will complete their settlement evaluations within 14-days of receipt of a finalized MMI reports from PTP and/or Med/Legal report.

C&R of current employee should be considered if it makes financial sense.

When considering for C&R’s, include the basis of the valuation in support of the recommendation.

 Reserves

Reserving must be adequate for the exposure expressed in the medical reports, litigation status or investigation results and based on probable ultimate cost. Examiner will need to provide the rationale to support the reserve change, include a PD rating string if applicable.

A reserve worksheet outlining the rationale is required per AIMS Best Practices.

Examiner e-mails client for large reserve increases and all reserve adjustments at the time of settlement for PD and FM values.

 Claim Review Meetings

Bi-Annual claim reviews have previously taken place in person. Reviews can be done at the City’s location or in AIMS Fresno office. Most recently done by Zoom due to the pandemic.

 Excess Insurance

Prior to 07/01/2012 – part of CSJVRMA pool

07/01/2012 – 06/30/2019
EIA-PE 13 EWC-134
SIR: $250k; reportable at $125k

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07/01/2019 – 06/30/2020
EIA 2020
SIR: $250k; reportable at $125k

07/01/2020 – 06/30/2021
EIA 2021
SIR $250k; reportable at $125k

07/01/2021 – 06/30/2022
EIA 2022
SIR $250k; reportable at $125k

07/01/2022 – 06/30/2023
EIA 2023
SIR $250k; reportable at $125k

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12.D.

AGENDA

STAFF REPORT

MEETING DATE: 5/16/2023 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of an Agreement Between the County of Kings and the City of Hanford for cooperation in updating the Housing Element of the Kings County Comprehensive General Plan pursuant to Government Code Section 65580 and authorization to use the City's award of LEAP grant funds to pay for the City's share of the Housing Element.

RECOMMENDATION:

Recommended Motion: Approve the Agreement Between the County of Kings and the City of Hanford for cooperation in updating the Housing Element of the Kings County Comprehensive General Plan pursuant to Government Code Section 65580 and authorize the use of LEAP grant funds to pay for the City's share of the Housing Element BACKGROUND:

The City, and all other jurisdictions in Kings County, are required to update the General Plan Housing Element every eight years. The City is crunnelty participating in a multi-jursidictional effort to prepare the 2024 Kings County Multi-Jursidctional Housing Element Update. As part of the process, the City must enter into an agreement with Kings County, Avenal, Corcoran and Lemoore that outlines the responsibilities and costs associated with preparing the Housing Element.

Kings County, in coordination with the City, recently completed the Request for Proposals process and Realty Planners Group was selected as the firm that will prepare the Housing Element.

The overall cost to prepare the Housing Element is $489,300. REAP funds will pay for approximately $311,858 of the cost associated with the update. The remaining $177,442 will be split between the cities and county based on population. Hanford's share of the Housing Element update will be $78,573.15, which will be paid for with the City's LEAP grant funds.

FISCAL IMPACT:
$78,573.15 to be paid for using LEAP grant funds

ATTACHMENTS:

1. Cost Sharing for Housing Element

2. Housing Element Agreement

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US Census Bureau population estimate as of
July 1, 2021
Percentage of total
population
Cost by jurisdiction
$311,858 REAP funds (as of
4/14/23)
Hanford 57990 44.28% $78,573.15
Corcoran 12087 9.23% $16,377.20
Lemoore 27038 20.65% $36,634.95
Avenal 8989 6.86% $12,179.58
Kings 24855 18.98% $33,677.11
Total 130959 100.00% $177,442.00

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AGREEMENT BETWEEN COUNTY OF KINGS AND THE CITIES OF AVENAL, CORCORAN, HANFORD, AND LEMOORE, REGARDING THE 2024 KINGS COUNTY MULTI-JURISDICTIONAL HOUSING ELEMENT UPDATE

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AGREEMENT BETWEEN THE COUNTY OF KINGS AND

THE CITIES OF AVENAL, CORCORAN, HANFORD, AND LEMOORE,

FOR COOPERATION IN UPDATING THE HOUSING ELEMENT

OF THE KINGS COUNTY COMPREHENSIVE GENERAL PLAN
PURSUANT TO GOVERNMENT CODE SECTION 65580 ET SEQ.

This Agreement (the “Agreement”) is entered into between the County of Kings, a political subdivision of the State of California (“County”); and the following participating agencies ( individually, “City”; collectively, “Cities”):

• The City of Avenal, an incorporated city within the geographic boundaries of Kings County (“Avenal”); • The City of Corcoran, an incorporated city within the geographic boundaries of Kings County (“Corcoran”);
• The City of Hanford, an incorporated city within the geographic boundaries of Kings County (“Hanford”); and
• The City of Lemoore, an incorporated city within the geographic boundaries of Kings County (“Lemoore”)

(individually, a “Party”; collectively, the “Parties”).

R E C I T A L S

WHEREAS, pursuant to California Government Code section 6558 0, et seq., every eight years local governments are required to update the housing element to their comprehensive general plan.

WHEREAS, the next update for County and Cities’ plans are required to be completed no later than January 31, 2024;

WHEREAS, County, on behalf of its Community Development Agency, is advertising through a Request for Proposal (“RFP”), attached to this Agreement as Exhibit A, for services to update the housing element of the County’s comprehensive general plan (the “Update”);

WHEREAS, Cities each desires their updates to be consistent with that of the County , which streamlines development and eases the growth process of all local communities throughout Kings County;

WHEREAS, collaboration between the Parties is more likely to produce update s that provides consistency across jurisdictions;

WHEREAS, when contrasted with developing individual updates, collaboration between the Parties will have the added benefit of significant cost savings to each of the Parties;

WHEREAS, the County is eligible for grant funding to cover a substantial portion of its costs in producing the Update, further improving on the cost saving to all jurisdicitons;

WHEREAS, because of these factors, collaborating to produce a joint housing element update is in the best interest of all Parties;

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AGREEMENT BETWEEN COUNTY OF KINGS AND THE CITIES OF AVENAL, CORCORAN, HANFORD, AND LEMOORE, REGARDING THE 2024 KINGS COUNTY MULTI-JURISDICTIONAL HOUSING ELEMENT UPDATE

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NOW, THEREFORE, The Parties agree as follows:

1. TERM

This Agreement commences upon execution by all Parties. It terminates on the approval of the Update by the Parties through the legislative body or other designated officer of each Party and upon County’s receipt of all remuneration owed by Cities, subject to any survivability terms contained in th e Agreement.

2. OBLIGATIONS OF THE PARTIES

A. During the RFP Process

1. County, through its Community Development Agency, shall oversee the RFP process, and receive all submitted proposals. County has sole discretion as to whether a proposal complies with the requirements of the RFP . County may unilaterally reject any incomplete or otherwise non-conforming proposal without presenting such proposal to the Cities for input.

2. Cities shall independently review and e valuate all accepted proposals, and to provide comments to County. County must receive all City comments nor more than five business days before the date designated as “Notice of Intent to Award sent to Proposers” in section 3.3 of the RFP.

3. County shall give Cities notice of , and allow Cities to participate in , any discussions with or presentations by any proposer intended to clarify a proposal or to determine if a proposer has the ability to perform the requested work or services.

4. County will have sole authority to make the final determination as to which proposer or proposers shall be awarded the contract to consult on and prepare the Update (“Update Contract”). The agreement for services shall be between County and the selected contractor or contractors (“Contractor”), with Cities recognized as participating agencies.

County, in making its final determination, shall consider all input received from Cities.

Any City who objects to County’s choice of Contractor may withdraw from further participation i n the Update prior to the commencement of the update process. Such withdrawal must be in writing, and received by County before there is a fully executed agreement between County and Contractor.

B. During the Update Process

1. The Parties shall cooperate with Contractor in its performance of its Scope of Work under the Update Contract. The Parties shall share all relevant information with Contractor, and make all necessary contributions to the process in a timely manner.

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AGREEMENT BETWEEN COUNTY OF KINGS AND THE CITIES OF AVENAL, CORCORAN, HANFORD, AND LEMOORE, REGARDING THE 2024 KINGS COUNTY MULTI-JURISDICTIONAL HOUSING ELEMENT UPDATE

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C. Upon Completion of the Update

1. County shall provide an appropriate number of copies of the final Update to all Cities for review by their respective legislative bodies or designated officer to review.

2. Upon receipt, all Parties shall review the proposed update as soon as practicable.

Cities shall report back to County their approval or rejection of the proposed update within a reasonable time after receipt of the proposed Update. Rejection shall state the specific reasons for the rejection, including the specific components of the Update to which the City objects. A City rejecting the proposed Update shall meet and confer with the other Parties to discuss their objection , with the intention of such meeting to formulate a resolution to the objection.

3. FISCAL PROVISIONS

A. County is eligible for grant funding applicable to the Update through the Kings County Association of Governments, documentation of which is attached to this Agreement as Exhibit B. County shall diligently pursue all available funding sources prior to and during the Update process. Should one or more Cities also be eligible for grant funding or other reimbursement, any such funds shall also be applied to the joint Update.

B. Should the contract price of the Update Contract exceed the grant funding received by all Parties, the remaining contract amount shall be divided between the Part ies proportionate to each Party’s population pursuant to the table below:

C. County shall invoice Cities for their proportionate remuneration of contract amount. Cities shall each remit their remuneration to County within 45 days of receiving an invoice from County.

D. If, after Cities have remitted the ir proportionate renumerations to County, any Party receives additional grant funding not previously contemplated, County will within 45 days of receipt of such additional funds refund to Cities a proportionate recompence up to the complete amount previously remitted to County by Cities.

E. County shall promptly notify Cities in advance of any proposed amendment to the Update Contract affecting the price of the Update Contract.

1 Figures based on United States Census Bureau population estimates as of July 1, 2021.

Jurisdiction Estimated Population 1 Percent of County Population Avenal 13,819 8.6
Corcoran 22,535 14.8
Hanford 58,496 38.2
Lemoore 27,259 17.8
County (Unincorporated) 31,334 20.6
TOTAL 153,443 100.00%

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AGREEMENT BETWEEN COUNTY OF KINGS AND THE CITIES OF AVENAL, CORCORAN, HANFORD, AND LEMOORE, REGARDING THE 2024 KINGS COUNTY MULTI-JURISDICTIONAL HOUSING ELEMENT UPDATE

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F. County shall be solely responsible for ensuring that all payments due for services performed under the Agreement are delivered to Contractor.

4. TERMINATION AND WITHDRAWAL

This Agreement may terminate upon the concurrence of all Parties on the condition the termination is memorialized in writing in accordance with Section 6. The withdrawal of one or more City shall not terminate this Agreement as among County and remaining Cities. A City that withdraws from this Agreement shall not be entitled to any reimbursement for funds, man-hours, or other resources invested in its performance of its obligations under this Agreement prior to the Party’s withdrawal. A City that withdraws from this agreement shall not be included in the Update.

5. INDEMNIFICATION AND INSURANCE

Each Party shall hold harmless, defend and indemnify the other Parties, their officials, agents, officers and employees from and against any liability, claims, actions, costs, including reasonable attorney’s fees, damages, or losses of any kind, including injury or death to any person and/or damage to property, arising from, or in connection with, the performance by the other Parties or their officials, agents, officers and employees under this Agreement, except that no Party is responsible for that portion of a claim, damage, liability, cost, or expense that occurs by reason of the negligence, wrongful acts , or willful misconduct of another Party or of another Parties’ officials, agents, officers, or employees. This duty to indemnify, defend, and hold harmless shall survive the termination of this Agreement as to acts or omissions giving rise to any type of liability that occurs during the term of this Agreement.

The County and Participating Agencies shall each maintain their own liability insurance coverage, against any claim of civil liability arising out of the performance of this Agreement and upon request provide appropriate evidence of such coverage to the other Parties.

6. AMENDMENTS

Parties may propose amendments to this Agreement to the other Part ies. No amendment to this Agreement shall be valid except in writing and approved by the legislative body or otherwise authorized officer of each of the Parties, but no amendment shall change the financial obligations of any Party without equitably changing the financial obligations of all Parties.

7. NO THIRD-PARTY BENEFICIARY RELATIONSHIP

The RFP contemplates that there are no third -party beneficiaries to the Update Contract . This Agreement is not intended to, and shall not be interpreted as to, create a third-party beneficiary relationship between the parties to the Update Contract and any City.

8. CONTACTS

The name and contact information for the primary representative of each Party is attac hed to this Agreement as Exhibit C. All Parties agree to notify the other Parties upon any change in that Party’s primary representative. The change in a Party’s primary representative shall not constitute nor require an amendment to this Agreement.

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AGREEMENT BETWEEN COUNTY OF KINGS AND THE CITIES OF AVENAL, CORCORAN, HANFORD, AND LEMOORE, REGARDING THE 2024 KINGS COUNTY MULTI-JURISDICTIONAL HOUSING ELEMENT UPDATE

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9. SURVIVABILITY

The Parties agree that, except in areas of the county where other law controls, the Update shall have the force of law through all jurisdictions within Kings County.

10. SEVERABILITY

If any term of this Agreement, or application thereof to any person or circumstances, proves to be invalid or unenforceable, the remainder of the Agreement or the application thereof to any other person or circumstances shall not be affected, and each remaining term shall remain in ful l force and effect. When possible, invalid, or unenforceable terms shall be interpreted to allow for the purpose of this Agreement to be achieved to the greatest extent practicable.

11. CHOICE OF LAW

This Agreement is entered into, and is fully executed, in the State of California, County of Kings.

The Parties acknowledge that the laws of the State of California apply to this Agreement, and that the County of Kings is the appropriate venue for any dispute regarding the terms or application of it.

12. DISPUTE RESOLUTION

In the event a dispute arises between two or more Parties over any matter covered by this Agreement, all Parties shall meet and confer to use their best efforts to resolve any such dispute.

13. COUNTERPARTS

The Parties may execute this Agreement in two or more counterparts, that are to be construed as one document.

14. ELECTRONIC SIGNATURES

The Parties may execute this Agreement by electronic means. The electronic signatures affixed by the Parties respective signatories give rise to a valid, enforceable, and fully effective Agreement.

15. AUTHORITY OF SIGNATORY

The undersigned representatives for each Party affirm that they are legally authorized to enter into this Agreement on behalf of the Party they purport to represent and to bind that Party to the terms herein.

Each signatory represents that the Parties are able to perform the obligations imposed under the terms of this Agreement.

16. EXHIBITS AND ATTACHMENTS

The attached exhibits are integral parts of this Agreement, and are hereby incorporated by reference into this Agreement.

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AGREEMENT BETWEEN COUNTY OF KINGS AND THE CITIES OF AVENAL, CORCORAN, HANFORD, AND LEMOORE, REGARDING THE 2024 KINGS COUNTY MULTI-JURISDICTIONAL HOUSING ELEMENT UPDATE

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IN WITNESS WHEREOF , the P arties executed this Agreement the day and year written below.

For the City of Avenal

By: ________________________________

Name: ________________________________

Title: ________________________________

Date: ________________________________

For the City of Corcoran

By: ________________________________

Name: ________________________________

Title: ________________________________

Date: ________________________________

For the County of Kings

By: ________________________________

Name: ________________________________

Title: ________________________________

Date: ________________________________

For the City of Hanford

By: ________________________________

Name: ________________________________

Title: ________________________________

Date: ________________________________

For the City of Lemoore

By: ________________________________

Name: ________________________________

Title: ________________________________

Date: ________________________________

Attachments and Exhibits:

Exhibit A: Request for Proposal
Exhibit B: Proposed agreement for grant funding between County of Kings and Kings County Association of Governments
Exhibit C: Contact information for Participating Agencies

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PURCHASING DIVISION

COUNTY OF KINGS

REQUEST FOR PROPOSAL
NO. 2023-36

For Consulting Services to Prepare a
Housing Element Update

PROPOSALS DUE
April 3, 2023
AT OR BEFORE 4:00 P.M. LOCAL TIME

March 3, 2023

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1 SECTION 1

INTENT OF THE REQUEST FOR PROPOSAL

1.1 BACKGROUND INFORMATION
The County of Kings (“County”), on behalf of the Community Development Agency, is soliciting proposals from consulting services to prepare a Housing Element update.

Proposers providing a proposal in response to this Request for Proposal (“RFP”) must address each and every item in the Description of Services to be Performed, as set forth below in Section 2. In addition, proposals must be in the format set forth in Section 3.2 of this RFP. Failure to include all elements in Section 2 or submit a proposal in the required format may be grounds for rejection of the proposal.

In the event Proposers wish to take an exception to any of the requirements set forth in Section 2 or terms of the proposed contract, as attached hereto as Exhibit F, those exceptions must be clearly stated in the proposal. Failure to include any item in the specifications without taking exception will result in a waiver of the Proposer’s ability to negotiate a contract term, attempt to request additional compensation for elements in Section 2 that were not included in the pricing set forth in the proposal, and may be grounds for rejection.

The County reserves the right to reject any and all proposals and/or to waive any informality or informalities in the accepted bid. The County further reserves the right to reject any and all bids with or without cause and re-issue this RFP if deemed to be in the County’s best interests.

1.2 LOCATION WHERE SERVICES ARE TO BE PERFORMED
Location varies with scope of work, but most of the work will be at the consultant’s office, off-campus.

1.3 PRICE
Proposers must include any and all information about pricing in their proposals.

Although the County will base its selection upon a consideration of all factors, pricing information is required in order for the County to ensure that it is receiving the requested services or work at a fair and reasonable price. Failure to include pricing information in a proposal may result in a rejection of the proposal as non-responsive.

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2 1.4 PROPOSED TERM
The County anticipates a 13-month agreement between the County and the successful Proposer. Services shall begin within 30 days of the approval from the Kings County Board of Supervisors, approximately June 15, 2023.

1.5 PROPOSERS’ CONFERENCE
There will be no Proposers’ conference for this RFP.

SECTION 2

DESCRIPTION OF SERVICES TO BE PROVIDED

2.1 HOUSING ELEMENT UPDATE
Kings County is currently in the process of conducting a comprehensive update of the Kings County Housing Element, which includes preparing the multijurisdictional Housing Element update for the County unincorporated areas as well as the four incorporated Cities (Avenal, Corcoran, Hanford, and Lemoore). The Kings County Community Development Agency is assigned coordination of this project and seeks proposals from qualified consultants to provide professional services for the development of the Housing Element update.

The Housing Element update is required pursuant to California Government Code Section 65580 et seq. The purpose of this project is to update the Housing Element to be internally consistent with the County and City General Plans and be in compliance with state statutes to be certified by the California Department of Housing and Community Development (HCD). The update shall contain an overview of the housing needs in the unincorporated and incorporated areas of Kings County and provide analysis of both the constraints that may impact housing development as well as the resources available to facilitate it. State Housing Element law requires that each city and county identify and analyze existing and projected housing needs within their jurisdiction and prepare goals, policies, programs, and quantified objectives to further the development, improvement, and preservation of housing. The five jurisdictions in Kings County have collectively decided to prepare a joint countywide Housing Element with administrative support from the Kings County Community Development Agency. Kings County’s last Housing Element was for the planning period 2016 to 2024. This Housing Element update will be for the planning period 2024 to 2032.

Kings County is seeking one or more qualified firms (Consultant) that have experience in General Plan and Housing Element updates. An emphasis will be placed on developing a clear, concise, and legally defensible Housing Element update that meets the varied housing needs of

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3 the Kings County community. It is requested that the consultants present a scope of work and methodology for preparing the 2024-2032 Housing Element. Additionally, the Housing Element update will need to integrate the 2024-2032 Regional Housing Needs Allocation (RHNA) and other pertinent updated demographic, economic, and land use information. New HCD regulations, requirements, and practices and other relevant City, County, State, and Federal regulations that have changed since the last Housing Element update, will need to be incorporated. The consultants should indicate the interrelationship of all work products, including the depth and scope of the research proposed.

The scope of work should consider the following:
• Meetings with County and City staff, other agencies’ staff, public officials, and the general public
• Coordination with other Consultants or subcontractors engaged, if necessary, in a supportive and joint effort
• Develop team assignments and a project task timeline compatible with Housing Element update due dates
• Complete an evaluation of the 2016-2024 Housing Element update • Coordinate with County and City staff to develop a current housing inventory and complete a Housing Needs Assessment to ensure conformance with Government Code Section 65583 et seq.
• Analysis of resources that cover land inventory, site analysis, financial and administrative resources, and energy conservation
• Analysis of constraints, including governmental and nongovernmental • Provide public review, final documents, and any appendices or references in a format acceptable to the County
• Upon completion of agency and public review, comments will be addressed and incorporated into relative context and submitted to the County for review, comment, and further revision, as necessary
• Provide timely progress updates to the Kings County Community Development Agency as requested and adhere to timelines as possible
• Prepare staff reports and other relative documents for Planning Commissions, City Councils, and Boards of Supervisors

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4 • Effort with public outreach, including preparation of event materials, solicitation of comments, workshops, and public meetings throughout Kings County Deliverables shall include:
• Project Task Timeline and Team Assignments
• Working and Final Drafts of the 2024-2032 Housing Element • Hearing Drafts
• Public Participation Summaries
• 2024-2032 Housing Element Study
• Associated documents, appendices, and background studies • Staff reports and related documentation
• HCD Draft of the 2024-2032 Housing Element and mandated information for certification
• Environmental documents, findings, and/or Notice of Exemption in compliance with California Environmental Quality Act (CEQA)
• Synopsis of recommended changes by HCD following the review period of HCD Draft • HCD Certified 2024-2032 Housing Element
• 2024-2032 Housing Element Certificate Letter from HCD

2016 – 2024 Housing Element:
https://www.countyofkings.com/home/showpublisheddocument/17093/636518076585130000 2016 – 2024 Housing Element Appendices:
https://www.countyofkings.com/home/showpublisheddocument/17095/636518076925170000

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5 SECTION 3

INSTRUCTIONS TO PROPOSERS

3.1 SUBMISSION INSTRUCTIONS
Proposals must be received in the County’s Purchasing Department, located at 1400 W. Lacey Blvd., Building 6, in Hanford, California at or before 4:00 p.m. local time on April 3, 2023. All proposals shall be submitted on 8 ½ x 11-inch paper and shall be bound or contained in a binder.

An electronic version of the proposal must also be provided on a USB drive.

Proposers shall submit one (1) original proposal and three (3) copies. The original proposal shall be marked as “Original” on the first page of the proposal in a location and font size that are easily identifiable. All proposals must be submitted under seal in either an envelope(s) or box, which shall be clearly marked on the outside to read:

Name of Proposer
RFP number and title
Proposal submittal deadline and time

Proposals shall be delivered to:

Kings County Purchasing Department
Attn: Evan Jones, Purchasing Manager
1400 W. Lacey Blvd, Bldg. 6
Hanford, California 93230

3.2 PROPOSAL FORMAT
Proposals must be submitted in the following format. Non-conforming proposals will not be considered. Each section shall be clearly marked with either tabs or sections, which correspond to the sections below.

In the event any of the sections below do not apply, Proposers shall indicate “Not Applicable” in response thereto.

3.2.1 SIGNATURE PAGE
Proposers must include a completed Signature Page, as attached hereto as Exhibit A, at the front of their proposals. Failure to include a completed Signature Page shall be grounds for rejection of the proposal.

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6 3.2.2 COVER LETTER
The cover letter must include the Proposer’s name, address, and telephone number, as well as the name and email address of a designated contact individual.

The email address provided must be available to receive service of any notices sent regarding this RFP.

3.2.3 COMPANY OVERVIEW
A brief description of the company and its structure, including, but not limited to, the name(s), business address(es), and telephone number(s) of the company’s officers, directors, and associates, and the name(s) and address(es) of any parent or subsidiary companies.

3.2.4 SUBCONTRACTORS
If the Proposer will be using subcontractors to perform some or all of the work, the name(s) and address(es) of these subcontractors must be included, along with a description of which portion of the work or service they will perform. Said information shall be provided on the Subcontractor List, attached hereto as Exhibit B.

If the Proposer is part of a joint venture, one legal entity must be designated as the Primary Proposer. All other participants shall be considered subcontractors.

3.2.5 RELEVANT EXPERIENCE
Provide a brief description of your company’s past relevant experience as it relates to the requested work or services. Include a minimum of five (5) references. Each reference should include the name, address, and phone number, along with a contact person and a description of the work performed. References should be listed in the Reference List, attached hereto as Exhibit C.

3.2.6 SUPPORT TEAM
Identify the individual(s) who will form the support team for performing the work or services for this RFP. Include brief descriptions of each individual’s experience and a description of the role he or she will take in performing the work or service.

3.2.7 TIMEFRAME FOR COMPLETION
Provide a realistic approach to complete the work or services within the timeframe provided within this RFP.

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7 3.2.8 ASSISTANCE FROM COUNTY
Provide a written summary of any information, access, or assistance you will expect or need from the County to complete the work or services within the given timeframe.

3.2.9 PROJECT COST
Provide a detailed breakdown of the costs associated with the work or services to be performed as well as an overall, total, cost for the services or work to be performed. In addition, provide the proposed costs for any services or work that may be performed at the County’s request, in addition to the work or services requested in this RFP, if applicable. Proposers are responsible for ensuring that all costs are set forth in this section. Failure to properly calculate costs or include additional costs will not be a basis for re-negotiation of the compensation for the winning bid.

Proposals must include a 60-day price guarantee.

3.2.10 PROPOSED SCOPE OF WORK
Provide a summary of the work or services to be performed to be attached to the parties’ agreement as a scope of work. The scope of work must be concise and address each and every requirement of the proposed work or services, as set forth in Section 2. Proposals submitted without a concise scope of work suitable to be attached to the parties’ agreement as an exhibit will not be considered; copies of the proposal will not be accepted as a scope of work.

3.2.11 ACKNOWLEDGMENT OF ADDENDA
Provide an acknowledgment of any addenda issued for this RFP, if applicable.

3.2.12 EVALUATION OF THE PROPOSED AGREEMENT
Proposers must review the proposed agreement, which is attached to this RFP as Exhibit F, and acknowledge their willingness to enter into a final, negotiated agreement if awarded the bid. Proposers must list any exceptions to the terms of the proposed agreement in their proposals, acknowledge their ability to satisfy the insurance and any other requirements as set forth therein, and acknowledge their ability to abide by all other terms of the agreement. Failure to take exception to a term in the proposed contract will result in a waiver of the successful Proposer’s right to negotiate that term.

The County reserves the right to negotiate any term in the proposed agreement.

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8 3.2.13 CONFLICT OF INTEREST
Proposers shall certify in their proposals that no official or employee of the County, or any business entity in which an official or employee of the County has an interest, has been employed or retained to solicit or aid in the procuring the award of this RFP.

3.2.14 AFFIDAVIT OF NON-COLLUSION
Proposers shall include a completed Affidavit of Non-Collusion with their proposals on the form attached hereto as Exhibit D. Failure to include a completed Affidavit of Non-Collusion may result in the rejection of the proposal as non-responsive.

3.3 TIMELINE OF EVENTS
The County expects this RFP to follow the below timeline:

March 3, 2023 Issuance of the RFP
March 10, 2023 Deadline for questions 5:00 p.m. local time April 3, 2023 Proposals due 4:00 p.m. local time
April 17, 2023 Notice of Intent to Award sent to Proposers May 16, 2023 Present final agreement to the Board of Supervisors for approval
June 15, 2023 Services begin
The County reserves the right to amend this schedule at any time.

3.4 EVALUATION CRITERIA
The Evaluation Committee will review and score only those proposals that are deemed responsive to this RFP and presented in the format as set forth in Section 3.2. Failure to include any sections in the proposal will result in that proposal being deemed non- responsive.

During the scoring process, the Evaluation Committee may contact the Proposer’s references, or any other sources deemed relevant by the Evaluation Committee as part of their review of the Proposer’s qualifications to perform the requested services or work.

Selection will not be based on the lowest priced proposal, but will be based on the following criteria:

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9 1. Proposer’s ability and history in providing the requested services or work for public agencies of similar size, population, and need as the County. 10 points.

2. Responsiveness of the proposal and the clarity and completeness of the proposed Scope of Work. 15 points.

3. Demonstrated technical competence and experience to perform the services or work requested in the RFP. 15 points.

4. Past record of performance of similar work or services as determined by all available information. These criteria will be based not only on the information contained within the proposal, but also by discussions with the Proposers and their references, as well as other relevant entities or individuals who have used the Proposer for similar work or services. 40 points.

5. Proposer’s demonstrated ability to perform the work or services set out in the RFP within the given time frame. 20 points.

3.5 DISCUSSION WITH PROPOSERS AND CLARIFICATIONS TO PROPOSALS The County reserves the right to contact Proposers to seek clarification of their submitted proposals during the evaluation process. These discussions shall be solely for the purpose of ensuring that the County has a full and complete understanding of the submitted proposals and the Proposer’s qualifications to perform the requested work or services. The County will not discuss the contents of other Proposer’s proposals during these discussions.

3.6 ORAL PRESENTATIONS
The County reserves the right to request the Proposers to make oral presentations to further explain their proposals and demonstrate their ability to perform the requested work or services. Proposers will be advised in writing whether an oral presentation will be required and, if so, when, and where said presentation shall take place.

3.7 REQUESTS FOR INFORMATION OR CLARIFICATION OF RFP
Proposers are responsible for submitting any and all questions concerning the work or services set forth in Section 2 or any other aspect of this RFP no later than 5:00 pm on March 10, 2023. Questions must be presented in writing and submitted to the Purchasing Manager at the address noted above or via email at [email protected] .

Proposers must include the RFP number in their requests for information.

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10 3.8 WITHDRAWAL OR REVISION OF PROPOSALS
Proposers may withdraw or revise their proposals anytime before the submittal date.

Requests to withdraw or revise proposals must be made in writing and submitted to the Purchasing Manager at the address above or via email to: [email protected] .

Proposals may not be withdrawn or revised after the submittal date.

3.9 SELECTION AND ANNOUNCEMENT OF APPARENT SUCCESSFUL

PROPOSER
Proposals will be evaluated by an Evaluation Committee as selected by the County. The Evaluation Committee will use the Evaluation Criteria as set forth in Section 3.4 in scoring the submitted proposals and determining which proposal will be presented to the Kings County Board of Supervisors (“the Board”) for approval.

Proposers will be notified of the County’s decision in writing through a Notice of Intent to Award. The Notice of Intent to Award will be sent through email.

3.10 PROTEST OF AWARD
Proposers who wish the protest the RFP or announcement of award must submit their protests in writing and submitted to the Purchasing Manager at the address above or via email at [email protected] .

Protests of the process, terms, conditions, or any other aspect of the RFP must be submitted before the RFP’s submittal date. Failure to submit a protest before this date will act as a waiver of the Proposer’s right to protest these portions of the RFP.

Protests of the announcement of the award must be made within five (5) working days of the date of the Notice of Intent to Award. Protests must include the following information:
1) The name, address, telephone number, and email address of the protesting Proposer;

2) The signature of the protesting Proposer or the representative of the Proposer; 3) The RFP number;
4) A detailed statement of the legal or factual basis for the protest; 5) All documents or other records that support the Proposer’s basis for the protest; 6) The form of relief requested; and

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11 7) Acknowledgment of the Proposer’s willingness to accept any and all notices or decisions regarding this protest and any resulting appeal via email.

Protests will be considered and responded to by the Purchasing Manager or designee within five (5) working days of the receipt of the protest. In the event the protesting Proposer wishes to appeal the decision of the Purchasing Manager or designee, said appeal shall be presented in writing to the Clerk of the Board within five (5) working days of the date of the Purchasing Manager’s response.

Proposers appealing the Purchasing Manager’s decision must work with the Clerk of the Board to schedule a hearing of the Proposer’s appeal on the Board’s agenda for the next regular meeting. The hearing will be conducted informally and will not be a full evidentiary hearing. However, the Proposer and the County will be given the opportunity to present arguments and provide evidence at the hearing.

Any evidence to be presented at the hearing must be presented to the Clerk of the Board and the Purchasing Manager at least three (3) working days prior to the scheduled hearing. Proposers may be represented by counsel, but the rules of evidence governing civil proceedings will not apply to this hearing.

The Board will issue its decision either orally at the hearing or in writing within three (3) working days of the hearing.

Any costs incurred by a Proposer in filing and pursuing a protest or appeal shall be the sole responsibility of the Proposer. The County shall not reimburse the Proposer for the costs of a protest or appeal, even if the protest or appeal results in a favorable outcome for the Proposer.

The procedures set forth above are mandatory and constitute a Proposer’s sole and exclusive remedy in the event of a protest or appeal of the RFP or the award thereof.

Failure to comply with these procedures shall constitute a waiver of any right to further pursue a protest or appeal, including filing a claim or initiating legal proceedings. In addition, failure to appear at the hearing set for an appeal shall constitute a waiver of the Proposer’s right to appeal.

The County reserves the right to extend any of the above timeframes as necessary. Said extensions shall be communicated to the protesting Proposer in writing via email.

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12 SECTION 4
NOTICE TO PROPOSERS; GENERAL INFORMATION

4.1 NOTICE TO PROPOSERS
This RFP does not constitute an agreement or offer of employment between the County and the Proposers. The costs of preparing proposals shall be the sole obligation of the Proposers. Once submitted, all proposals become the property of the County.

The successful Proposer shall be considered an independent consultant and not an agent, officer, or employee of the County or entitled to any benefits arising therefrom.

4.2 CONFIDENTIALITY
Proposals are only confidential during the evaluation process. Once an agreement has been signed between the County and the successful Proposer, any and all proposals shall be subject to disclosure under the California Public Records Act (“the Act”) as found under Section 7920 et seq. of the Government Code. Proposers are therefore responsible for ensuring that they have not included any confidential information in their proposals, such as trade secrets, social security numbers, or proprietary information.

Proposers are hereby put on notice that the County will not redact any portions of the submitted proposals when releasing them pursuant to a request under the Act.

4.3 LATE PROPOSALS
The County assumes no responsibility for the submission of late proposals. It is the sole responsibility of the Proposers to ensure their proposals are received in the Purchasing Division. The County will not accept proposals via email or fax. Late proposals will not be considered.

4.4 ADDENDA TO THE RFP
Proposers must carefully examine the specifications set forth in Section 2 and submit any and all questions or requests for information to the County no later than 5:00 pm on March 10, 2023 as set forth in Section 3.7. Failure to submit a request for information before the designated date will result in a waiver of the Proposer’s right to protest any award under this RFP on the basis of the process, terms, conditions, or claimed ambiguity regarding this RFP.

The County reserves the right to make corrections via written addenda to this RFP as needed prior to the submittal date. Addenda shall only be valid if issued in writing; oral

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13 communications about this RFP with County employees will not be binding on the County unless set forth in a written addendum.

Addenda shall be posted on the County’s website under the Purchasing Division tab under the section dedicated to this RFP and available in hard copy in the office of the Purchasing Manager. Proposers must acknowledge any and all addenda issued by signing and dating the addenda and including them with the proposal.

Proposers are solely responsible for checking the County’s website and contacting the Purchasing Manager prior to the submittal date to ensure that they are aware of and acknowledge any and all addenda in their proposals. Failure to acknowledge and include any or all addenda may result in the proposal being deemed non-responsive.

4.5 COMMUNICATIONS WITH THE EVALUATION COMMITTEE OR COUNTY STAFF
Proposers shall not contact any member of the Evaluation Committee or any other County employee during the evaluation phase for this RFP unless contacted by the Evaluation Committee as allowed under Sections 3.5 or 3.6. Proposers who contact County personnel in an attempt to badger, cajole, bribe, influence, or obtain confidential information about the evaluations of the proposals during the evaluation phase may have their proposals declared disqualified from consideration.

4.6 FALSE OR MISLEADING STATEMENTS
Proposals containing false or misleading statements, or which include references that do not support an attribute or skill claimed by the Proposer, may be rejected as non- responsive to this RFP.

If the County determines that a Proposer’s false or misleading statements were provided with intent to mislead the County in its evaluation of the proposal, the proposal will be deemed non-responsive. The County reserves the right to also prohibit the Proposer from submitting proposals for work or services under future RFPs.

4.7 PREVAILING WAGE AND REGISTRATION WITH THE DEPARTMENT OF

INDUSTRIAL RELATIONS
The work or services set forth in Section 2 may constitute a public work for purposes of California’s prevailing wage laws. Proposers shall be solely responsible for determining whether the proposed work is a public work and subject to the payment of prevailing wage and registration with the Department of Industrial Relations for the audit of the same. Proposers who fail to verify whether the work or services requested in this RFP constitute a public work and are subject to California’s prevailing wage laws when

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14 calculating the amount of their bids shall not be allowed to amend the proposed amount to account for this mistake.

4.8 NEWS RELEASES
Proposers shall not issue news releases pertaining to the award resulting from this RFP without prior written approval of the County.

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15 EXHIBIT A

SIGNATURE PAGE
(Proposer to complete and place in front of proposal)
Individual/Company: ____________________________________________________________ Address: ______________________________________________________________________ Contact Person’s name: __________________________________________________________ Contact Person’s title: ___________________________________________________________ Contact Person’s telephone number: ________________________________________________ Contact Person’s email address: ___________________________________________________

The undersigned hereby certifies that he/she is a duly authorized official of their organization and has the authority to submit this proposal and sign on behalf of the organization and assure that all statements made in the proposal are accurate and truthful. The undersigned agrees to provide the work or services requested in this Request for Proposal at the price contained therein and will comply with all terms and conditions of the proposed agreement, unless otherwise stipulated through a written exception.
______________________________________________________________________________ Authorized Representative – Name Title

______________________________________________________________________________ Authorized Representative’s signature

Business License No. (if applicable):
(Hanford) ______________________________
(Kings County) __________________________

Professional License No. (if applicable): ________________________

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16 EXHIBIT B

SUBCONTRACTOR LIST
(Proposer to complete and return with proposal)
Subcontractor No. 1 - Name: ____________________________________________________ Address: ______________________________________________________________________ Contact Person: ________________________________________________________________ Email: ________________________________ Title: ________________________________ Amount of work or services to be performed (percentage): ______________________________ Types of work or services to be performed: __________________________________________ ______________________________________________________________________________ Subcontractor No. 2 - Name: ____________________________________________________ Address: ______________________________________________________________________ Contact Person: ________________________________________________________________ Email: ________________________________ Title: ________________________________ Amount of work or services to be performed (percentage): ______________________________ Types of work or services to be performed: __________________________________________ ______________________________________________________________________________ Subcontractor No. 3 - Name: ____________________________________________________ Address: ______________________________________________________________________ Contact Person: ________________________________________________________________ Email: ________________________________ Title: ________________________________ Amount of work or services to be performed (percentage): ______________________________ Types of work or services to be performed: __________________________________________ ______________________________________________________________________________

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17 EXHIBIT C

REFERENCE LIST
(Proposer to complete and return with proposal)
List five (5) references where the same or similar work or services were provided.

Reference No. 1 – Name: ________________________________________________________ Address: ______________________________________________________________________ Contact Person: _________________________________ Title: _________________________ Email: ______________________________ Telephone No.: ____________________________ Amount of contract: _____________ Date and type of work or services performed: __________ ______________________________________________________________________________ ______________________________________________________________________________

Reference No. 2 – Name: ________________________________________________________ Address: ______________________________________________________________________ Contact Person: _________________________________ Title: _________________________ Email: ______________________________ Telephone No.: ____________________________ Amount of contract: _____________ Date and type of work or services performed: __________ ______________________________________________________________________________ ______________________________________________________________________________

Reference No. 3 – Name: ________________________________________________________ Address: ______________________________________________________________________ Contact Person: _________________________________ Title: _________________________ Email: ______________________________ Telephone No.: ____________________________

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18 Amount of contract: _____________ Date and type of work or services performed: __________ ______________________________________________________________________________ ______________________________________________________________________________

Reference No. 4 – Name: ________________________________________________________ Address: ______________________________________________________________________ Contact Person: _________________________________ Title: _________________________ Email: ______________________________ Telephone No.: ____________________________ Amount of contract: _____________ Date and type of work or services performed: __________ ______________________________________________________________________________ ______________________________________________________________________________

Reference No. 5 – Name: ________________________________________________________ Address: ______________________________________________________________________ Contact Person: _________________________________ Title: _________________________ Email: ______________________________ Telephone No.: ____________________________ Amount of contract: _____________ Date and type of work or services performed: __________ ______________________________________________________________________________ ______________________________________________________________________________

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19 EXHIBIT D

AFFIDAVIT OF NON-COLLUSION
I hereby affirm that:
1) I am the Proposer (if Proposer is an individual), a partner of the Proposer (if the Proposer is a partnership), or an officer or employee of the Proposer having authority to sign on the Proposer’s behalf (if Proposer is a corporation).
2) The proposal has been arrived at by the Proposer independently and has been submitted without collusion with, or without agreement, understanding, or planned common course of action with, any other vendor or materials, supplies, equipment, or services described in the request for proposal, designed to limit the independent bidding or competition. 3) The contents of the proposal have not been communicated by the Proposer or its employees or agents, to any person not an employee or agent of the Proposer or its surety or any bond furnished with the proposal and will not be communicated to any such person prior to the official opening of the proposal.
4) I have fully informed myself regarding the accuracy of the statements made on this affidavit.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed in: __________________, ______________________ on: ___________________ by:
(City) (State) (Date)

__________________________________________________
Name of Proposer

___________________________________________________
Address

___________________________________________________
City, State, Zip Code

___________________________________________________
Authorized Signature

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20 EXHIBIT E

ADA GRIEVANCE PROCEDURE
Appendix E.

Kings County ADA Grievance Procedure
Kings County
Grievance Procedure under ADA or
California State Disability Civil Rights Laws
This grievance procedure is established to meet the requirements of the Americans with Disabilities Act of 1990 ("ADA"), the Americans with Disabilities Amendments Act (ADAAA) and California State law. Except as otherwise indicated, it may be used by anyone wishing to file a complaint alleging discrimination on the basis of disability in the provision of services, activities, programs or benefits by Kings County. The procedure should also be used to address all complaints regarding barriers to physical access to any County facility.

NOTE: Discrimination complaints by applicants for, and recipients of, public benefits administered by the County are handled by the Human Services Agency, pursuant to state law and the Human Services Agency's Administrative policy and Procedure No. 23.

Notice of this fact is provided to all applicants and recipients. For more information, please contact the Program Manager/Civil Rights Coordinator for the Human Services Agency at 559.852.2201. If you submit a complaint to the ADA Coordinator that should be directed to the Human Services Agency, your complaint will be forwarded to the Human Services Agency, and will be deemed received by the Human Services Agency upon actual receipt by it for purposes of the filing and response deadlines stated in Policy and procedure No. 23. Please also note that the County's Personnel Rules govern employment related complaints of disability discrimination. Please refer to section 10200 to 10250 of the Personnel Rules regarding the County's grievance procedure, as well as Chapter 14 of the Personnel Rules regarding discrimination complaints. The process described in either part may be relied upon to make a complaint of disability discrimination.

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21 A complaint using this procedure should be in writing and should contain information about the alleged discrimination such as name, address, and phone number of the complainant and location, date and description of the problem(s). If you are viewing these instructions online at the County's website, please find the form for making a complaint below. Copies of the complaint form are also available from the Public Works Department or County Administration Office, County Government Center, 1400 West Lacey, Hanford, CA 93230. Alternative means of filing a complaint, such as personal interviews or a tape recording of the complaint, are available to person with disabilities upon request.

The complaint should be submitted by the complainant and/or his/her designee as soon as possible, but not later than 60 calendar days after the alleged violation to:

Dominic Tyburski, ADA Coordinator
County Government Center
1400 West Lacey Blvd.

Hanford, CA 93230
If this complaint is being made on behalf of someone other than me, that person's contact information is:

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2014-2-434 [99311]

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EXHIBIT F

COUNTY OF KINGS

AGREEMENT FOR SERVICES

THIS AGREEMENT is made and entered into as of the day of , 2023, by and between the County of Kings, a political subdivision of the State of California (hereinafter “County”) and , a (hereinafter “Contractor”).

R E C I T A L S

WHEREAS, County requires services related to the update of the multi-jurisdiction Housing Element for the 2024 – 2032 planning period, prepared for the County of Kings and Cities of Avenal, Corcoran, Hanford, and Lemoore; and

WHEREAS, Contractor is ready, willing, able, and qualified to perform such services.

NOW, THEREFORE, the parties mutually agree as follows:

1. SCOPE OF SERVICES

County hereby engages Contractor and Contractor shall do, perform, and carry out the services as set forth in Exhibit A.

2. RESPONSIBILITIES OF CONTRACTOR

Contractor possesses the requisite skills necessary to perform the work under this Agreement and County relies upon such skills. Contractor shall, at all times utilizing its ability, experience and talent, faithfully, industriously and professionally perform the work set forth in Exhibit A to County’s reasonable satisfaction. County’s acceptance of Contractor’s work does not constitute a release of Contractor from its professional responsibility.

Contractor affirms that it possesses current valid appropriate licensure, including, but not limited to, driver’s license, professional license, certificate of tax-exempt status, or permits, as required to perform the work under this Agreement.

Contractor affirms that it has reviewed Exhibit A and agrees that in its professional judgment, the work can and shall be completed within the maximum amount of costs and time as set forth in this Agreement.

3. COMPENSATION

Consultant shall not be entitled to nor receive from County any additional consideration, compensation, or other remuneration for services rendered under this Agreement except as set forth in Exhibit B.

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2 Should no funds or insufficient funds be appropriated for this Agreement, County reserves the right to propose an amendment or unilaterally terminate this Agreement immediately.

Upon submission of an invoice by Contractor, and upon approval of County’s representative, County shall pay Contractor monthly in arrears, up to the maximum amount provided for in Section 3. Each invoice must include a description of services rendered, to whom, date of service and the charges according to the agreed upon method.

4. TERM

This Agreement shall remain in full force and effect until both parties have completed performance or the Agreement is otherwise terminated in accordance with its terms.

Following termination, Contractor shall turn over to the County all completed deliverables and then shall be reimbursed for all expenditures made in good faith that are due and unpaid at the time of termination not to exceed the maximum amount payable under this Agreement.

5. R
ECORDS AND INSPECTIONS.

Contractor shall maintain full, complete, and accurate records with respect to all matters covered under this Agreement. All such records shall be prepared in accordance with generally accepted accounting procedures, shall be clearly identified, and shall be kept readily accessible.

County shall have free access during normal work hours to such records and the right to examine, inspect, copy, or audit them, at no cost to County. Records shall be maintained for seven (7) years after the termination of this Agreement or any extension of this Agreement.

6. AMENDMENTS

This Agreement may be modified only by a written amendment signed by Contractor and County Board of Supervisors or other representative authorized by County Board of Supervisors.

7. TERMINATION

The right to terminate this Agreement un der this section may be exercised without prejudice to any other right or remedy to which the terminating party may be entitled at law or under this Agreement.

A. Without Cause. Either party shall have the right to terminate this Agreement without cause by giving the other party thirty (30) calendar days prior written notice of its intention to terminate pursuant to this provision, specifying the date of termination. If the termination is for non-appropriation of funds, County may terminate this Agreement effective immediately.

B. With Cause. This Agreement may be terminated by either party should the other party materially breach this Agreement. Upon a material breach, the non-defaulting party

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3 shall provide written notice to the defaulting part y of its intention to terminate this Agreement and allow a period of ten (10) days to cure the breach. If the breach is not remedied within that ten (10) day period, the non-defaulting party may terminate the Agreement on further written notice specifying the date of termination.

Alternatively, County may elect to cure the default and any expense incurred shall be payable by Contractor to County.

If the nature of the breach is such that it cannot be cured within a ten (10) day period, the defaulting party may submit a written proposal within tha t period which sets forth a specific means to resolve the default and a date certain for completion. If the non- defaulting part y consents to that proposal in writing, the defaulting par ty sha ll immediately embark on its plan to cure. If the default is not cured within the time specified, the non-defaulting party may terminate upon written notice specifying the date of termination.

C. Effects of Termination. Termination of this Agreement shall not terminate any obligations of any liability to County for damages sustained by County because of any breach of contract by Contractor, nor to indemnify, to maintain and make available any records pertaining to this Agreement, to cooperate with any audit, to be subject to offset, or to make any reports of pre-termination contract activities.

D. Forbearance Not to be Construed as Waiver of Breach or Default. In no event shall any act of forbearance by either party constitute a waiver of any breach of this Agreement or any default which may then exist, nor shall such act impair or prejudice any remedy available to the non-breaching party with respect to the breach or default.

8. INSURANCE

A. Without limiting County’s right to obtain indemnification from Contractor or any third parties, prior to commencement of work, Contractor shall purchase and maintain the following types of insurance for minimum lim its indicated during the term of this Agreement and provide an Endorsed Additional In sured page from Contractor’s Insurance Carrier guaranteeing such coverage to County. Such page shall be mailed as set forth under the Notice Section of this Agreement prior to the execution of this Agreement. In the event Contractor fails to keep in effect at all times insurance coverage as herein provided, County may, in addition to other remedies it may have, suspend, or terminate this Agreement upon the occurrence of such event.

1. Commercial General Liability. Two Million Dollars ($2,000,000) per occurrence and Five Million Dollars ($5,000,000) an nual aggregate covering bodily injury, personal injury and property damage. County a nd its officers, employees and agents shall be endorsed to above policies as additional insured, using ISO form CG 20 26 or an alternate form that is at least as broad as form CG 20 26, as to any liability arising from the performance of this Agreement.

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4 2. Automobile Liability. Comprehensive Automobile Liability Insurance with limits for bodily injury of not less than Five Hundred Thousand Dollars ($500,000) per person, One Million Dollars ($1,000,000) per accident and for property damages not less than One Hundred Thousand Dollars ($100,000), or such coverage with a combined single limit of One Million Dollars ($1,000,000).

Coverage should include owned and non-owned vehicles used in connection with this Agreement.

3. Workers Compensation. Statutory coverage, if and as required according to the California Labor Code. The policy shall be endorsed to waive the insurer’s subrogation rights against County.

4. Professional Liability. One Million Dollars ($1,000,000) limit per occurrence or claim and Three Million Dollars ($3,000,000) annual aggregate limit covering Contractor’s wrongful acts, errors and omissions.

B. Insurance is to be placed with admitted insurers rated by A.M. Best Co. as A:VII or higher. Lower rated, or approved but not admitted insurers, may be accepted if prior approval is given by County’s Risk Manager.

C. Each of the above required policies shall be endorsed to provide County with thirty (30) days prior written notice of cancellation. County is not liable for the payment of premiums or assessments on the policy. No cancellation provisions in the insurance policy shall be construed in derogation of the continuing duty of Contractor to furnish insurance during the term of this Agreement.

9. INDEMNIFICATION

A. When the law establishes a professional standard of care for Contractor’s services, to the fullest extent permitted by law, Contractor shall indemnify, def end, and hold harmless County and any and all of its Board members, officials, emplo yees and agents from and against any and all losses, liabilities, damages, costs, and expenses, including legal counsel’s fees and costs but only to the extent Contractor is responsible for such damages, liabilities, and costs on a comparative basis of fault between Contractor and County in the performance of professional services under this Agreement. Contractor shall not be obligated to defend or indemnify County for County’s own negligence or for the negligence of third parties.

B. Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, defend, and hold harmless County, and any and all of its Board members, officials, employees, and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsel’s fees and costs, court costs, interest, def ense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, any act, omission,

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5 fault or negligence, whether active or passive, by Contractor or by any individual or entity for which Contractor is legally liable, including, but not limited to, officers, agents, employees, or subcontractors of Contractor.

C. This indemnification specifically includes any claims that may be against County by any taxing authority or third party asserting that an employer-employee relationship exists by reason of this Agreement.

D. These indemnification obligations shall survive the termination of this Agreement as to any act, omission, fault or negligence occurring during this Agreement or any extension of this Agreement. The County’s rights to indemnification are in addition to and shall not limit any other rights or remedies that County may have under law or this Agreement.

10. INDEPENDENT CONTRACTOR

Contractor is an independent contractor and not an agent, officer or employee of County.

The parties mutually understand and agree that this Agreement is by and between two independent contractors and is not intended to, and shall not be construed to create, the relationship of agent, servant, employee, partnership, joint venture or association.

11. COMPLIANCE WITH LAW

Contractor shall comply with all federal, state and local laws and regulations applicable to its performance including, but limited to, Government Code section 8350 et seq. regarding a drug free workplace and all health and safety standards set forth by the State of California and County.

12. CONFIDENTIALITY

Contractor shall not use County confidential information for any purpose other than carrying out Contractor's obli gations under this Agreement. Contractor shall prevent unauthorized disclosure of any County confidential information. Contractor shall promptly transmit to County all requests for disclosure of County confidential information.

13. CONFLICT OF INTEREST

Contractor warrants that its employees or their immediate families or Board of Directors or officers have no financial interest, including, but not limited to, other projects or independent contracts, and shall not acquire any financial interest, direct or indirect, which conflicts with the rendering of services under this Agreement. Contractor shall employ or retain no such person while rendering services under this Agreement. Services rendered by Contractor’s associates or

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6 employees shall not relieve Contractor from personal responsibility under this clause. Contractor has an affirmative duty to disclose to County in writing the name(s) of any person(s) who have an actual, potential or apparent conflict of interest.

14. NONDISCRIMINATION

In rendering services under this Agreement, Contractor shall comply with all applicable federal, state and local laws, rules and regulations and shall not discriminate based on age, ancestry, color, gender, marital status, medical condition, national origin, physical or mental disability, race, religion, gender identity, or sexual orientation.

Further, Contractor shall not discriminate against its employees, which includes, but is not limited to, employment upgra ding, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship.

15. SUBCONTRACTORS

Services under this Agreement are deemed to be personal services. Contractor warrants that it has not and it shall not subcontract any work under this Agreement without the prior written consent of County subject to any required state or federal approval.

16. ASSIGNMENT

Contractor sha ll not assign this Agreement or monies due without the prior written consent of County subject to any required state or federal approval. Assignment by Contractor of any monies due shall not constitute an assignment of the Agreement.

17. UNFORESEEN CIRCUMSTANCES

Neither party shall be responsible for any delay caused by natural disaster, war, civil disturbance, labor dispute or other cause beyond a party’s reasonable control, provided written notice is provided to the other party of the cause of the delay within ten (10) days of the start of the delay. Thereafter, the parties shall meet and confer as to whether to amend, suspend, or terminate this Agreement.

18. OWNERSHIP OF DOCUMENTS

County shall be the owner of and shall be entitled to possession of any computations, plans, correspondence or other pertinent data and information gathered by or computed by Contractor prior to termination of this Agreement by County or upon completion of the work pursuant to this Agreement. County’s reuse of any such materials on any project other than the project for which they were originally intended shall be at County’s sole risk. No material prepared in connection with the project shall be subject to copyright in the United States or in any other county.

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7 19. NOTICE

Any notice necessary to the performance of this Agreement shall be given in writing by personal delivery, fax, overnight carrier, e-mail or by prepaid first-class mail addressed as follows:

COUNTY: CONTRACTOR:

COUNTY OF KINGS

PURHCASING DIVISION
1400 W. LACEY BLVD.

HANFORD, CA 93230

If notice is given by: a) personal delivery, it is effective as of the date of personal delivery; b) fax, it is effective as of the date of the fax; c) overnight carrier, it is effective as of the date of delivery; d) e-mail, it is effective as of the date it was sent; e) mail, it is effective as of five (5) days following the date of mailing or the date of delivery ref lected upon a return receipt, whichever occurs first.

20. CHOICE OF LAW

The parties have executed and delivered this Agreement in the County of Kings, State of California. The parties agree that the laws of the State of California shall govern the validity, enforceability or interpretation of this Agreement and Kings County shall be the venue for any action or proceeding, in law or equity that may be brought in connection with this Agreement.

Contractor hereby waives any rights it may possess under Section 394 of the Code of Civil Procedure to transfer to a neutral county or other venue any action arising out of this Agreement.

21. SEVERABILITY

If any of the provisions of this Agreement is found to be unenforceable, the remainder shall be enforced as fully as possible and the unenforceable provision shall be deemed modified to the limited extent required to permit enforcement of the Agreement as a whole.

22. SURVIVAL

The following sections shall survive the termination of this Agreement: Section 5 Records and Inspections, Section 8 Insurance, Section 9 Indemnification, and Section 12 Confidentiality.

23. NO THIRD-PARTY BENEFICIARIES.

County and Contractor are the only parties to this Agreement and are the only parties entitled to enforce its terms. Nothing in this Agreement gives, is intended to give, or shall be construed to give or provide, any right or benefit, whether directly or indirectly or otherwise, to

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8 a third party.

24. ENTIRE AGREEMENT; CONTRIBUTIONS OF BOTH PARTIES; IMAGED AGREEMENT

This Agreement, including its Recitals and Exhibits which are fully incorporated into and are integral parts of this Agreement, constitutes the entire agreement between the parties and there are no inducements, promises, terms, conditions or obligations made or entered into by County or Contractor other than those contained herein.

The parties agree that each party had had an opportunity to review this Agreement and consult with legal counsel and it is expressly agreed and understood that the rule stated in Civil Code section 1654, that ambiguities in a contract should be construed against the drafter, shall have no application to the construction of the Agreement.

An original executed Agreement may be imaged and electronically stored. Such imaged Agreement may be used in the same manner and for the same purposes as the original. Neither party may object to the admissibility of the imaged Agreement on the basis that it was not originated or maintained in documentary form.

25. AUTHORITY

Each signatory to this Agreement represents that it is authorized to enter into this Agreement and to bind the party to which its signature represents.

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9 IN WITNESS WHEREOF the parties have executed this Agreement the day and year first written above.

COUNTY OF KINGS

By:

Joe Neves,
Chairman
_ By:

ATTEST:

_
Catherine Venturella, Clerk to the Board

Approved and Endorsements Received:

Sarah Poots

APPROVED AS TO FORM:

Diane Freeman, County
Counsel

By:

Exhibits/Attachments:

Exhibit A: Scope of Work
Exhibit B: Fees

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1 Agreement No. 2023-01

MEMORANDUM OF UNDERSTANDING

REGARDING

COUNTY OF KINGS

REGIONAL EARLY ACTION PLANNING FUNDS

This Memorandum of Understanding (“MOU”), effective as of ________________, 2023 is made and entered into by and between KINGS COUNTY ASSOCIATION OF GOVERNMENTS, a Joint Powers Authority established under California Government Code section 6500, et seq. (“KCAG”) and the COUNTY OF KINGS (“Sponsor”) (collectively, “Parties”).

RECITALS

WHEREAS, the California Department of Housing and Community Development (“HCD”) has provided funds to local public agencies as part of the Regional Early Action Planning (“REAP”) Program; and

WHEREAS, REAP Program funds may be used to conduct planning activities that will accelerate housing production and housing-related initiatives; and

WHEREAS, the REAP funds have been made available to the Central Valley region through the San Joaquin Valley REAP Committee on behalf of the Fresno Council of Governments, the Kern Council of Governments, KCAG, the Madera County Transportation Commission, the Merced County Association of Governments, the Stanislaus Council of Governments, the Tulare County Association of Governments, and the San Joaquin Council of Governments; and

WHEREAS, members of the San Joaquin Valley REAP Committee signed a regional Memorandum of Understanding (“RMOU”) to facilitate the further sub-allocation of the funds to local jurisdictions. A copy of the RMOU is attached hereto as Exhibit A and incorporated herein by this reference; and

WHEREAS, the RMOU has delegated the responsibility to KCAG for administration of the grant allocation locally, and KCAG has established the procedures and processes necessary to fulfill that responsibility; and

WHEREAS, KCAG desires to work with Sponsor to support the local housing planning efforts of its constituent agencies (City of Avenal, City of Corcoran, City of Hanford, City of Lemoore, and County of Kings) through the use of REAP Program funds.

NOW, THEREFORE, in consideration of the mutual promises and undertakings herein made and the mutual benefits to be derived therefrom, the Parties agree as follows:

AGREEMENT

1.1 Project Description. The project descriptions, scope of work, delivery schedule, and the anticipated timing for release of REAP funds are specified in Exhibit B and incorporated herein by this reference (the “Project”).

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2 1.2 Change In Project Scope. A change in the Project Scope of Work as described in Exhibit B may not be implemented until it has been approved in writing by KCAG.

1.3 Eligible Reimbursement Costs. Eligible reimbursement costs shall be the same as defined by HCD statutes, rules and regulations.

1.4 Use of Funds. Sponsor shall use REAP funds consistent with the Project Scope of Work as described in Exhibit B or as approved by KCAG pursuant to Section 1.2.

1.5 Timely Use of Funds. REAP funds are one-time, housing planning funds that must be expended no later than December 31, 2024. KCAG staff will monitor Sponsor’s expenditures on an annual basis to minimize the risk of losing funds that are intended to benefit the region. If expenditures appear to be behind schedule, Sponsor agrees to work with KCAG to establish a schedule to expend funds or to determine whether to reprogram funds to maximize the regional benefit. The Parties agree that, to meet the State expenditure deadline and to submit required reporting and invoicing timely, all REAP funds shall be expended by August 31, 2024.

1.6 Completion of Project. Sponsor shall be responsible for the timely completion of the Project and to provide management of consultant and contractor activities, including responsibility for scheduling, budgeting, and oversight of the services, consistent with Exhibit B.

1.7 Invoices and Progress Reports. Sponsor shall submit to KCAG an invoice and progress report monthly reflecting all expenses incurred up to the date of submission for eligible activities conducted during the MOU period.

1.8 Termination of MOU. The Parties agree that this MOU will terminate on December 31, 2024, unless modified in writing and signed by both Parties prior to that date.

IN WITNESS WHEREOF, the undersigned Parties have executed this MOU on the day and year first written above.

Terri King, Executive Director Date
Kings County Association
of Governments

Chuck Kinney, Director Date
Kings County Community Development

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3 H:\KCAG\Housing\Housing Element 2023\REAP Agreement\KCAG-Kings County REAP MOU Final.docx APPROVED AS TO FORM:

General Counsel Date
Kings County Association
of Governments

APPROVED AS TO FORM:

County Counsel Date
County of Kings

EXHIBITS:

Exhibit A- San Joaquin Valley RMOU
Exhibit B- Project Scope of Work

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EXHIBIT A

SAN JOAQUIN VALLEY REAP COMMITTEE

REGIONAL MOU

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The Members have caused this Am endment No. 1 to MOU to be executed as of the Effective Date.

Fresno Council of Governments

By:
___________________________
Tony Boren, Director

Kern Council of Governments

By:
____________________________
Ahron Hakimi, Director

Kings County Association of
Governments

By:
___________________________
Terri King, Director

Madera County Transportation
Commission

By:
______________________________
Patricia Taylor, Director

Merced County Association of
Governments

By:
_______________________________
Stacie Dabbs, Director

San Joaquin Council of
Governments

By:
_______________________________
Diane Nguyen, Director

Stanislaus Council of Governments

By:
_______________________________
Rosa Park, Director

Tulare County Association of
Governments

By:
_______________________________
Ted Smalley, Director

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The Members have caused this Am endment No. 1 to MOU to be executed as of the Effective Date.

Fresno Council of Governments

By:
___________________________
Tony Boren, Director

Kern Council of Governments

By:
____________________________
Ahron Hakimi, Director

Kings County Association of
Governments

By:
___________________________
Terri King, Director

Madera County Transportation
Commission

By:
______________________________
Patricia Taylor, Director

Merced County Association of
Governments

By:
_______________________________
Stacie Dabbs, Director

San Joaquin Council of
Governments

By:
_______________________________
Diane Nguyen, Director

Stanislaus Council of Governments

By:
_______________________________
Rosa Park, Director

Tulare County Association of
Governments

By:
_______________________________
Ted Smalley, Director

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The Members have caused this Am endment No. 1 to MOU to be executed as of the Effective Date.

Fresno Council of Governments

By:
___________________________
Tony Boren, Director

Kern Council of Governments

By:
____________________________
Ahron Hakimi, Director

Kings County Association of
Governments

By:
___________________________
Terri King, Director

Madera County Transportation
Commission

By:
______________________________
Patricia Taylor, Director

Merced County Association of
Governments

By:
_______________________________
Stacie Dabbs, Director

San Joaquin Council of
Governments

By:
_______________________________
Diane Nguyen, Director

Stanislaus Council of Governments

By:
_______________________________
Rosa Park, Director

Tulare County Association of
Governments

By:
_______________________________
Ted Smalley, Director

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EXHIBIT B-1

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San Joaquin Valley REAP Summary Funding Table
< - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Initial Funding - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - > Summary
Phase I Phase II Phase III
(1st app) (2nd app) (3rd app)
Funds Funds Total
Original for Sub Aloc Additional Total Valleywide Supplemental Total Sub Aloc Dedicated to Dedicated to HCD RHNA Cities\County RHNA (a) Phase I Planning RHNA (b) Phase II Cities\County REAP RHNA Program FCOG 187,989 762,257 164,491 1,114,738 4,475,000 125,000 2,057,660 7,294,918 477,480 7,772,398 Kern 168,871 684,737 147,762 1,001,370 125,000 1,848,399 2,533,136 441,633 2,974,769 Kings 28,492 115,527 24,930 168,949 125,000 311,858 427,386 178,422 605,808 Madera 29,155 118,219 25,511 172,886 125,000 319,124 437,344 179,666 617,010 Merced 52,345 212,248 45,802 310,395 125,000 572,948 785,196 223,147 1,008,343 San Joaquin 142,517 577,877 124,703 845,097 125,000 1,559,939 2,137,817 392,220 2,530,037 Stanislaus 102,407 415,238 89,606 607,250 125,000 1,120,905 1,536,143 317,013 1,853,156 Tulare 88,223 357,727 77,195 523,145 125,000 965,658 1,323,384 290,419 1,613,803 Total 800,000 3,243,831 700,000 4,743,831 4,475,000 1,000,000 5,475,000 8,756,492 16,475,323 2,500,000 18,975,323 Percentage 17% 68% 15% 100% 82% 18% 100% 100% 87% 13% 100% Significant Local Proposed future
Agency Involvement funding, subject to
in REAP process change by HCD
Notes: (a) Sum of Valleywide Tech Assist, Admin and Housing Report that was in the 1st app and subsequently moved to the 2nd app. (b) $1M transferred from Valleywide to regional planning agencies for RHNA planning. Also can be used for admin and project staffing/management.

Phase II (2nd app) Valleywide Budget
Supplemental RHNA 1,000,000
Comprehensive Housing Report 500,000
Housing Report Policy Implem. 1,000,000
Household Travel Survey 500,000
Consultant Bench 1,500,000
Outreach, Marketing 250,000
Fresno COG Admin 300,000
Housing Program Manager 314,200
Reserve/Contingencies 110,800
5,475,000
Draft

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MEMORANDUM OF UNDERSTANDING
San Joaquin Valley Regional Early Action Planning Committee for Housing This memorandum of understanding (“MOU”) is made this 19th day of November 2020 (“Effective Date”), by and between the agencies (“Members”) comprising the San Joaquin Valley Regional Early Action Planning Committee for Housing (“Committee”) set forth below:

Fresno Council of Governments
2035 Tulare Street Suite 201
Fresno, CA 93721
Email: [email protected]

Kern Council of Governments
1401 19th Street, Suite 300
Bakersfield, California 93301
Email: [email protected]

Kings County Association of
Governments
339 W D Street
Lemoore, CA 93245
Email: [email protected]

Madera County Transportation
Commission
2001 Howard Road, Suite 201
Madera, CA 93637
Email: [email protected]

Merced County Association of
Governments
369 W 18th Street
Merced, CA 95340
Email: [email protected]

San Joaquin Council of Governments
555 E Weber Avenue
Stockton, CA 95202
Email: [email protected]

Stanislaus Council of Governments
1111 “I” Street, Suite 308
Modesto, CA 95354
Email: [email protected]

Tulare County Association of
Governments
210 N Church Street, Suite B
Visalia, CA 93291
Email: [email protected]

RECITALS
A. Under section 50515.02, subdivision (a), of the Health and Safety Code, the State of California Department of Housing and Community Development (“ HCD”) has made available one hundred twenty -five million dollars ($125,000,000) in local government planning support grants to regional entities and working groups as outlined by the statute.

B. The Committee is one of the working groups identified in section 50515.02, subdivision (a), of the Health and Safety Code.

C. On June 26, 2020, the Members approved submission of an application for grant funding (“Application”) to HCD by Fresno Council of Governments (“FCOG”) as the fiscal agent on behalf of the Committee.

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D. On August 14, 2020, HCD approved the Application and an allocation of $10,218,830.75 in grant funds (the “Initial Grant”) to the Members through FCOG.

E. On August 20, 2020, FCOG and HCD executed grant funding agreement number 19-REAP-14029 (“Agreement”). A true and correct copy of the Agreement is attached hereto as “Exhibit A.”
F. This MOU is intended to reflect the Members ’ understanding of the distribution of the Initial Grant and to facilitate the subsequent implementation of activities by the Members in furtherance of the purposes for which the Initial Grant was approved by HCD.

The Members therefore agree as follows:

1. Allocation of Initial Grant. The Members agree to allocate the $10,218,830.75 of the Initial Grant as follows:
a. FCOG will retain $5,475,000 of the Initial Grant to perform the following tasks:
i. FCOG shall prepare a comprehensive housing report and policy recommendations for implementation, as stated in the Application.

FCOG may enter into agreements as necessary to perform its obligations under this provision of the MOU and under the Application and Agreement.
ii. FCOG shall conduct regional planning and coordination, and provide technical assistance, as stated in the Application. FCOG may enter into agreements as necessary to perform its obligations under this term of the MOU and under the Application and Agreement. iii. FCOG shall administer of the Application, Agreement, this MOU, and the Initial Grant, as stated in the Application.
b. FCOG shall distribute the remaining $ 4,743,830.75 of the Initial Grant directly to each of the Members , as more particularly described in “Exhibit B,” in proport ion to each Member’s relative population using California Department of Finance population estimates updated as of January 2020.

2. Compliance with the Agreement and MOU. Each Member hereby acknowledges its cognizance of and its understanding of its obligation to comply with the terms and conditions of the Agreement and MOU. Each Member agrees to abide by the terms and conditions of the Agreement and to undertake all actions requested by FCOG pursuant to the Agreement or MOU , in order to facilitate FCOG’s compliance with the terms and conditions of the Agreement.

3. Compliance with the Law. Each Member agrees to comply with all Federal, State, and local laws in the performance of its obligations under this MOU.

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4. Sub-Agreements. Copies of all agreements between any Member and any sub- recipient, contractor or subcontractor shall be submitted to FCOG, so that they then may be provided to HCD’s Program Manager as required by Exhibit D, section 8, paragraph B of the Agreement.

5. Quarterly Reports. Each Member also shall deliver to FCOG, on a quarterly basis, status reports and accounting records reflecting any expenditure of the Initial Grant by that Member or by a sub-recipient of that Member. Each Member shall deliver its status reports and accounting records within thirty (30) days following the end of the period covered by the document . Each member’s quarterly status reports shall, at a minimum, include discussion of any allocations or sub-allocations of the Initial Grant, a description of any project initiated in whole or in part with the Initial Grant and a description of the progress made on any such project.

6. Retention of Records. Each Member shall maintain public records (as that term is defined in Government Code section 6252 ) (collectively, “ Records”) required under the Agreement, relating to any matter contained in this MOU , or demonstrating that the Initial Grant was used in a manner consistent with the Agreement. Each Member shall make the Records available to FCOG, HCD or the State Auditor upon demand. Each Member shall maintain the Records and make them available for inspect ion for a period of at least one (1) year following the termination of this MOU or the time specified in Government Code section 8546.7, whichever is later. Records relating to any audit or litigation relevant to this MOU or the Agreement shall be retained by each Member for five years after the conclusion or final resolution of such matter, as required by Exhibit D, section 3, paragraph E of the Agreement.

7. Disallowed Costs. Each Member shall return to FCOG any funds which HCD has disallowed within 90 days following notice to the Member.

8. Indemnity.
a. Each Member shall indemnify FCOG, along with FCOG’s officers, directors, and employees, for any costs or liabilities (includi ng without limitation for damages, court costs, attorneys’ fees , and expert witness fees ) arising from, resulting from, or in connection with that Member’s actions with respect to subject matter of this MOU or relating in any way to the use of the Initial Grant proceeds by that Member or any sub- recipient, contractor, or subcontractor of that Member.
b. Notwithstanding, the obligation to indemnify shall not apply to any costs or liabilities caused solely by the active negligence or willful misconduc t of FCOG or any of its officers, directors, and employees.

9. Duration of MOU . This MOU shall be in effect from the Effective Date until December 31, 2024 unless its term is extended by written modification in accordance with the provisions of section 12, paragraph c of this MOU.

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10. Subsequent MOUs. The Members understand and agree that subsequent MOUs may be necessary to facilitate the distribution of further grant funding from HCD under section 50515.02, subdivision (a), of the Health and Safety Code. The Members hereby commit to negotiate the terms and conditions of such subsequent MOUs in good faith, in order to achieve concurrence and ensure execution of same in a timely fashion.

11. Notices. All notices provided for or permitted under this MOU must be in writing and delivered either by personal service, by first -class United States mail, by an overnight commercial courier service, or as a PDF attachment to an email sent to the addresses provided for the Members above. Any Member may change its address for receipt of notice by providing notice of that change as provided in this section 11.
a. A notice delivered by personal service is effective upon service to the recipient.
b. A notice delivered by first -class United States mail is effective three business days after deposit in the United States mail, postage prepaid, addressed to the recipient.
c. A notice delivered by an overnight commercial courier service is effective one County business day after deposit with the overnight commercial courier service, delivery fees prepaid, with delivery instructions given for next day delivery, addressed to the recipient.
d. A notice delivered by email is effective when sent, if the email is sent between the hours of 8:00 am and 5:00 pm on a business day. If sent outside the hours of 8:00 am and 5:00 pm on a business day, a notice delivered by email becomes effective on the first business day following.

12. General Provisions.
a. This MOU is binding upon and shall inure to the benefit of any successors or assigns of the Members.
b. This MOU represents the entire understanding of the Members as to those matters contained in this MOU. No prior oral or written understanding shall be of any force or effect with respect to those matters covered in this MOU. c. This MOU may not be modified or altered except by writing signed by all Members.
d. No Member may assign, delegate or transfer its rights and duties in t his MOU without the written consent of all other Members , except that any Member may enter into one or more sub-agreements with any sub-recipient, contractor, or subcontractor to implement activities in furtherance of the

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purposes for which the Initial Grant was approved by HCD without the necessity of obtaining such consent.
e. Any dispute arising under this MOU, which is not resolvable by informal mediation between or among the Members, shall be adjudicated in a court of law under the laws of the State of California.
f. For all claims arising from or related to this MOU, nothing in this MOU establishes, waives, or modifies any claims presentation requirements or procedures provided by law, including the Government Claims Act (Division

3.6 of Title 1 of the Government Code, beginning with section 810). g. This MOU shall be administered and interpreted under the laws of the State of California. Jurisdiction of litigation arising from this MOU shall only be in California. Any action brought to interpret or enforce this MOU, or any of the terms or conditions hereof, shall be brought and maintained in the Fresno County Superior Court.
h. If any part of this MOU is found by a court of competent jurisdiction to be unlawful or otherwise unenforceable, the balance of this MOU remains in full force and effect, and the Members shall make best efforts to replace the unlawful or unenforceable part of this MOU with lawful and enforceable terms intended to accomplish the Members’ original intent. i. Section headings are provided for convenience only and are not part of this MOU.
j. This MOU does not and is not intended to create any rights or obligations for any person or entity except for the Members.
k. Each Member represents and warrants that the individual signing this MOU is duly authorized to do so and their signature on this MOU legally binds that Member to the terms of this MOU.
l. This MOU may be signed in counterparts, each of which is an original, and all of which together constitute this MOU.
[Signature pages follow.]

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The Members have caused this MOU to be executed as of the date and year first above written.

Fresno Council of Governments

By:

___________________________
Tony Boren, Director

Approved as to Legal Form:

By:
_____________________________

Print:
_______________________________

Kern Council of Governments

By:
____________________________
Ahron Hakimi, Director

Approved as to Legal Form:

By
:_____________________________

Print:
_______________________________

Kings County Association of
Governments

By:
___________________________
Terri King, Director

Approved as to Legal Form:

By:
_______________________________

Print:
_______________________________

Madera County Transportation
Commission

By:
______________________________
Patricia Taylor, Director

Approved as to Legal Form:

By:
_______________________________

Print:
_______________________________

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Merced County Association of
Governments

By:
_______________________________
Stacie Guzman, Director

Approved as to Legal Form:

By:
_______________________________

Print:
_______________________________

San Joaquin Council of Governments

By:
_______________________________
Andrew Chesley, Director

Approved as to Legal Form:

By:
_______________________________

Print:
_______________________________

Stanislaus Council of Governments

By:
_______________________________
Rosa Park, Director

Approved as to Legal Form:

By:
_______________________________

Print:
_______________________________

Tulare County Association of
Governments

By:
_______________________________
Ted Smalley, Director

Approved as to Legal Form:

By:
_______________________________

Print:
_______________________________

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Exhibit A
Grant funding agreement number 19-REAP-14029

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9/3/2020

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Fresno Council of Governments
19-REAP-14029

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Rev.8/19/2020

EXHIBIT A

Regional Early Action Planning Grant Program (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

AUTHORITY, PURPOSE AND SCOPE OF WORK

1. Authority

The Local Government Planning Support Grants Program is established for the purpose of providing regions and jurisdictions with one-time funding, including grants for planning activities to enable jurisdictions to meet the sixth cycle of the regional housing needs assessment. Up to two hundred fifty million dollars ($250,000,000) shall be distributed under the program in accordance with Health and Safety Code sections 50515.02 and 50515.03. Of this amount, approximately one hundred twenty-five million dollars ($125,000,000) is available to councils of governments and other regional entities. The Department of Housing and Community Development (Department or HCD) shall administer the Program (referred to herein as the Regional Early Action Planning Grant Program, or “REAP”) to councils of governments and other regional entities in accordance with the Notice of Funding Availability (“NOFA”) pursuant to Health and Safety Code section 50515.04, subdivision (f).

Pursuant to Health and Safety Code section 50515.02, subdivision (d)(3), a council of governments or a fiscal agent of a multiagency working group, as defined in section 50515.02, may request up to 25 percent of its available funding in advance. This Standard Agreement authorizes the encumbrance of full funds available to the applicant pursuant to the NOFA, subject to all statutory requirements and all applicable provisions including the NOFA, initial application and award for advance payment, subsequent advance payment application and award, application and award for the full remaining fund amount and amendment to this agreement.

The Grantee shall consult with the Department on any amendment or other provision related to the implementation of the Program. The Department decisions related to the administration of the Program shall be final pursuant to Health and Safety Code section 50515.04, subdivision (g).

2. Purpose

In accordance with the authority cited above, the Grantee has been awarded financial assistance in the form of a grant from the Program. The Department has agreed to make the grant for planning activities pursuant to the NOFA and this Agreement. By entering into this Agreement and thereby accepting the award of the Program funds, the Grantee agrees to comply with the terms and conditions

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19-REAP-14029

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Rev.8/19/2020

EXHIBIT A

Regional Early Action Planning Grant Program (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

of the NOFA, this Agreement, subsequent amendments to this Agreement, the representations contained in the initial advance payment and subsequent full application(s), and the requirements of the authority cited above. Based on all representations made by the Grantee, the Department shall encumber the full amount pursuant the NOFA and provide advance payment and subsequent payments in accordance with Exhibit B. All terms, conditions and other relevant provisions will be subject to amendments as a result of subsequent applications and awards for remaining funds after the initial application up to 25 percent of the full amount described in Exhibit B.

3. Definitions

Terms herein shall have the same meaning as defined by the NOFA.

4. Scope of Work

Grantee shall use the awarded funds in accordance with the approved Scope of Work as contained in the timeline and budget and related information outlined in the application for 25 percent advance payment and any subsequent applications for partial or full funding. The Scope of Work may be amended in compliance with statutory requirements subject to approval by the Department.

5. Monitoring

A. The Grantee shall maintain books, records, documents, and other evidence that demonstrates the funding was used for the appropriate purposes, as described in the Scope of Work, approved application, subsequent approved applications and all other pertinent documents.

These books, records, documents and other evidence shall be made available for audit and inspection by the Department at any point during the term of the agreement and subject to any amendments to this agreement.

B. The Department may request additional information, as needed, to meet the statutory requirements of the Program and facilitate amendments to this agreement, including but not limited to reporting or audit requirements, progress in implementing advance payment(s), or award of the full amount available to the Grantee.

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Rev.8/19/2020

EXHIBIT A

Regional Early Action Planning Grant Program (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

C. The Department may monitor expenditures and activities of an applicant, as the Department deems necessary, to ensure compliance with statutory or Department requirements.

D. The Department may, as it deems appropriate or necessary, request the repayment of funds from an applicant, or pursue any other remedies available to it by law for failure to comply with statutory or Department requirements.

E. The Department’s decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding to be provided, shall be final.

F. Monitoring provisions may be amended and are subject to additional provisions in accordance with this agreement or subsequent amendments.

6. Department Contract Coordinator

The Contract Coordinator of this Agreement for the Department is the Housing Policy Development Manager, or the Manager’s designee. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be mailed by first class mail to the Department Contract Coordinator at the following address:

Department of Housing and Community Development
Housing Policy Development Division
Land Use Planning Unit
Attention: REAP Program Manager
2020 West El Camino Avenue, Suite 500
Sacramento, CA 95833
P. O. Box 952050
Sacramento, CA 94252-2050

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Rev. 8/19/2020

EXHIBIT B

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: March 30, 2020
Prep. Date: August 12, 2020

BUDGET DETAIL AND PAYMENT PROVISIONS

1. Application for Funds

A. The Department is entering into this Agreement on the basis of, and in reliance on facts, information, assertions and representations contained in any application and award and any subsequent modifications or additions thereto approved by the Department. All awarded applications for funding and any approved modifications and additions thereto are hereby incorporated into this Agreement.

B. The Grantee warrants that all information, facts, assertions and representations contained in any approved application and approved modifications and additions thereto are true, correct, and complete to the best of the Grantee’s knowledge. In the event that any part of an application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading in such a manner that would substantially affect the Department's approval, disbursement, or monitoring of the funding and the grant or activities governed by this Agreement, the Department may declare a breach hereof and take such action or pursue such remedies as are provided for breach hereof.

2. Grant and Reimbursement Limit

A. The maximum total amount encumbered to the Grantee pursuant to this Agreement shall not exceed $10,218,830.75.

B. This Agreement authorizes an initial advance payment(s) for eligible activities as described in the application.

C. This Agreement authorizes subsequent award amounts or advance payment up to the total award amount as described in Section 2A, of this Exhibit, and subject to Department approval.

D. The Grantee shall submit and follow a schedule for the expenditure of the advance payment, any subsequent payment and the total amount prior to

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Rev. 8/19/2020

EXHIBIT B

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: March 30, 2020
Prep. Date: August 12, 2020

disbursement of funds. The schedule is subject to Department approval and may be revised as the Department deems necessary.

3. Grant Timelines

A. This Agreement is effective upon approval by the Department representative’s signature on page one of the fully executed Standard Agreement, STD 213, (the “Effective Date”).

B. All Grant funds must be expended by December 31, 2023 pursuant to Health and Safety Code section 50515.04(c )(1).

C. The Grantee shall deliver to the Department all final invoices for reimbursement on or before November 1, 2023, to ensure the Department meets the December 31, 2023 expenditure deadline. Under special circumstances, approved by the Department, the Department may modify the November 1, 2023 deadline and may provide exception, including, but not limited to, advance payment to carry out the terms of this agreement.

D. It is the responsibility of the Grantee to monitor the project and timeliness of draws within the specified dates.

4. Allowable Uses of Grant Funds

A. The Department shall not award or disburse funds unless it determines that the grant funds shall be expended in compliance with the terms and provisions of the NOFA which includes associated forms and guidelines and this Agreement.

B. Grant funds shall only be used by the Grantee for project activities approved by the State that involve planning activities in accordance with the NOFA.

C. Grant funds may not be used for administrative costs of persons employed by the Grantee for activities not directly related to eligible activities.

D. The Grantee shall use no more than 5 percent of the total grant amount for costs related to administration of the project.

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Rev. 8/19/2020

EXHIBIT B

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: March 30, 2020
Prep. Date: August 12, 2020

E. A Grantee that receives funds under this Program may use a subcontractor and Grantee shall be accountable to the Department to ensure subcontractor’s performance. The subcontract shall provide for compliance with all the requirements of the Program. The subcontract shall not relieve the Grantee of its responsibilities under the Program.

F. After the contract has been executed by the Department and all parties, approved and eligible costs for eligible activities may be reimbursed for the project(s) upon completion of deliverables or paid in advance in accordance with the scope of work and subject to the terms and conditions of this Agreement.

G. Only approved and eligible costs incurred for work after October 1, 2019, continued past the date of execution and acceptance of the Standard Agreement and completed during the grant term will be reimbursable.

5. Performance

The Grantee will be subject to amendments to this section as a result of future applications and awards.

6. Fiscal Administration

A. The Grantee will be subject to amendments to this section as a result of subsequent applications and awards, in consultation with the Grantee.

B. It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall immediately terminate and be of no further force and effect. In this event, the State and Contractor shall be relieved of any and all obligations under this Grant Agreement.

C. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the sole discretion to cancel this Agreement without cause, no liability occurring to the State, or amend the current Grant Agreement and amount allocated to Contractor.

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Rev. 8/19/2020

EXHIBIT D

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

REAP TERMS AND CONDITIONS

1. Reporting

A. During the term of the Standard Agreement the Grantee shall submit, upon request of the Department, a performance report that demonstrates satisfaction of all requirements identified in this Standard Agreement.

B. The Grantee will be subject to amendments to this section as a result of subsequent applications and awards.

2. Accounting Records

A. The Grantee, its staff, contractors and subcontractors shall establish and maintain an accounting system and reports that properly accumulate incurred project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices.

B. The Grantee shall establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the scope of work, project timeline and budget. Separate bank accounts are not required.

C. The Grantee shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the course of the project in accordance with GAAP.

D. The Grantee agrees that the State or designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of the Standard Agreement.

E. Subcontractors employed by the Grantee and paid with moneys under the terms of this Standard Agreement shall be responsible for maintaining accounting records as specified above.

3. Audits

A. At any time during the term of the Standard Agreement, the Department may

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Rev. 8/19/2020

EXHIBIT D

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

perform or cause to be performed a financial audit of any and all phases of the award. At the Department’s request, the Grantee shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during and over the project life.

1) The Grantee agrees that the Department or the Department’s designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance of this Agreement.

2) The Grantee agrees to provide the Department or the Department’s designee, with any relevant information requested.

3) The Grantee agrees to permit the Department or the Department’s designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with statutes, Program guidelines, and this Agreement.

B. If a financial audit is required by the Department, the audit shall be performed by an independent certified public accountant. Selection of an independent audit firm shall be consistent with procurement standards contained in Exhibit D, Section 8 subsection A. of this Standard Agreement.

1) The Grantee shall notify the Department of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by the Department to the independent auditor's working papers.

2) The Grantee is responsible for the completion of audits and all costs of preparing audits.

3) If there are audit findings, the Grantee shall submit a detailed response acceptable to the Department for each audit finding within 90 days from the date of the audit finding report.

C. The Grantee agrees to maintain such records for possible audit after final payment pursuant to Exhibit D, Section 3, subsection E. below, unless a longer period of records retention is stipulated.

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Rev. 8/19/2020

EXHIBIT D

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

1) If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record retention period, all records must be retained by the Grantee, contractors and sub-contractors until completion of the action and resolution of all issues which arise from it. The Grantee shall include in any contract that it enters into in an amount exceeding $10,000.00, the Department’s right to audit the contractor’s records and interview their employees.

2) The Grantee shall comply with the caveats and be aware of the penalties for violation of fraud and for obstruction of investigation as set forth in California Public Contracts Code section 10115.10.

D. The determination by the Department of the eligibility of any expenditure shall be final.

E. The Grantee shall retain all books and records relevant to this Agreement for a minimum of (3) three years after the end of the term of this Agreement. Records relating to any and all audits or litigation relevant to this Agreement shall be retained for five years after the conclusion or resolution of the matter.

4. Remedies of Non-performance

A. Any dispute concerning a question of fact arising under this Standard Agreement that is not disposed of by agreement shall be decided by the Department’s Housing Policy Development Manager, or the Manager’s designee, who may consider any written or verbal evidence submitted by the Grantee. The decision of the Department’s Housing Policy Development Manager or Designee shall be the Department’s final decision regarding the dispute, not subject to appeal.

B. Neither the pendency of a dispute nor its consideration by the Department will excuse the Grantee from full and timely performance in accordance with the terms of this Standard Agreement.

C. In the event that it is determined, at the sole discretion of the Department, that the Grantee is not meeting the terms and conditions of the Standard Agreement, immediately upon receiving a written notice from the Department to stop work, the Grantee shall cease all work under the Standard Agreement. The Department has the sole discretion to determine that the Grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the grantee to resume work under the Standard Agreement.

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Rev. 8/19/2020

EXHIBIT D

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

D. Both the Grantee and the Department have the right to terminate the Standard Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the Grantee or the Department to rectify any deficiency(ies) prior to the early termination date. The Grantee shall submit any requested documents to the Department within 30 days of the early termination notice.

E. A strong implementation component for the funded activity through this Program is required, including, where appropriate, agreement by Grantee and its subcontractors to formally adopt or complete a planning or other activity consistent with the NOFA. The Grantee must carry out provisions to ensure the adoption or completion of activities in accordance with the NOFA, including activities subcontracted to localities. Grantee may be subject to repayment of the grant should the Grantee or any of its subcontractors under this agreement fail to adopt or complete activities set forth in its application, this Agreement or any amendments to this Agreement.

F. The following shall each constitute a breach of this Agreement:

1) Grantee’s failure to comply with any term or condition of this Agreement.

2) Use of, or permitting the use of, grant funds provided under this Agreement for any ineligible costs or for any activity not specified and approved under this Agreement.

3) Any failure to comply with the deadlines set forth in this Agreement unless approved by the Program Manager in writing.

G. In addition to any other remedies that may be available to the Department in law or equity for breach of this Agreement, the Department may at its discretion, exercise a variety of remedies, including but not limited to:

1) Revoke existing REAP award(s) to the Grantee;

2) Require the return of unexpended REAP funds disbursed under this Agreement;

3) Require repayment of REAP Funds disbursed and expended under this agreement;

4) Seek a court order for specific performance of the obligation defaulted upon, or the appointment of a receiver to complete the obligations in accordance

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Rev. 8/19/2020

EXHIBIT D

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

with the REAP Program requirements; and

5) Other remedies available at law, by and through this agreement. All remedies available to the Department are cumulative and not exclusive.

6) The Department may give written notice to the Grantee to cure the breach or violation within a period of not less than 15 days.

H. The Grantee may be subject to amendment of this section as a result of subsequent applications and awards.

5. Indemnification

Neither the Department nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by the Grantee, its officers, employees, agents, its contractors, its sub-recipients or its subcontractors under or in connection with any work, authority or jurisdiction conferred upon the Grantee under this Standard Agreement. It is understood and agreed that the Grantee shall fully defend, indemnify and save harmless the Department and all of the Department’s staff from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortuous, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by the Grantee, its officers, employees, agents contractors, sub-recipients, or subcontractors under this Standard Agreement.

6. Waivers

No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the Department to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the Department to enforce these provisions.

7. Relationship of Parties

It is expressly understood that this Standard Agreement is an agreement executed by and between two independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party.

8. Third-Party Contracts

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Rev. 8/19/2020

EXHIBIT D

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

A. All state-government funded procurements must be conducted using a fair and competitive procurement process. The Grantee may use its own procurement procedures as long as the procedures comply with all City/County laws, rules and ordinances governing procurement, and all applicable provisions of California state law.

B. Any contract entered into as a result of this Agreement shall contain all the provisions stipulated in this Agreement and shall be applicable to the Grantee’s sub-recipients, contractors, and subcontractors. Copies of all agreements with sub-recipients, contractors, and subcontractors shall be submitted to the Department’s program manager.

C. The Department does not have a contractual relationship with the Grantee’s sub- recipients, contractors, or subcontractors, and the Grantee shall be fully responsible for monitoring and enforcement of those agreements and all work performed thereunder.

9. Compliance with State and Federal Laws, Rules, Guidelines and Regulations

A. The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the grant, the Grantee, its contractors or subcontractors, and any other grant activity.

B. During the performance of this Agreement, the Grantee assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, ancestry, national origin, sex, gender, gender identity, gender expression, genetic information, age, disability, handicap, familial status, religion, or belief, under any program or activity funded by this contract, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 USC 3601-20) and all implementing regulations, and the Age Discrimination Act of 1975 and all implementing regulations.

C. The Grantee shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub-recipients, contractors, and subcontractors, and shall include a requirement in all agreements that each of them in turn include the nondiscrimination and compliance provisions of this

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EXHIBIT D

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

clause in all contracts and subcontracts they enter into to perform work under REAP.

D. The Grantee shall, in the course of performing project work, fully comply with the applicable provisions of the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.) E. The Grantee shall adopt and implement affirmative processes and procedures that provide information, outreach and promotion of opportunities in the REAP project to encourage participation of all persons regardless of race, color, national origin, sex, religion, familial status, or disability. This includes, but is not limited to, a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 CFR 92.351.

10. Litigation

A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of the Department, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable.

B. The Grantee shall notify the Department immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or the Department, and shall take such action with respect to the claim or action consistent with the terms of this Agreement and the interests of the Department.

11. Changes in Terms/Amendments

A. The Grantee may be subject to amendments to this section as a result of subsequent applications and awards.

B. This Agreement may only be amended or modified by mutual written agreement of both parties.

12. State-Owned Data

A. Definitions

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Fresno Council of Governments
19-REAP-14029

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Rev. 8/19/2020

EXHIBIT D

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

1) Work:

The work to be directly or indirectly produced by the Grantee, its employees, or by and of the Grantee’s contractor’s, subcontractor’s and/or sub-recipient’s employees under this Agreement.

2) Work Product:

All deliverables created or produced from Work under this Agreement including, but not limited to, all Work and Deliverables conceived or made, either solely or jointly with others during the term of this Agreement, which relates to the Work commissioned or performed under this Agreement. Work Product includes all deliverables, inventions, innovations, improvements, or other works of authorship Grantee and/or Grantee’s contractor subcontractor and/or sub-recipient may conceive of or develop in the course of this Agreement, whether or not they are eligible for patent, copyright, trademark, trade secret or other legal protection.

3) Inventions:

Any ideas, methodologies, designs, concept, technique, invention, discovery, improvement or development regardless of patentability made solely by the Grantee or jointly with the Grantee’s contractor, subcontractor and/or sub- recipient and/or Grantee’s contractor, subcontractor, and/or sub-recipient’s employees with one or more employees of the Department during the term of this Agreement and in performance of any Work under this Agreement, provided that either the conception or reduction to practice thereof occurs during the term of this Agreement and in performance of Work issued under this Agreement.

B. Ownership of Work Product and Rights

1) All work Product derived by the Work performed by the Grantee, its employees or by and of the Grantee’s contractor’s, subcontractor’s and/or sub-recipient’s employees under this Agreement, shall be owned by the Department and shall be considered to be works made for hire by the Grantee and the Grantee’s contractor, subcontractor and/or subrecipient for the Department. The Department shall own all copyrights in the work product.

2) Grantee, its employees and all of Grantee’s contractor’s, subcontractor’s and sub-recipient’s employees agree to perpetually assign, and upon creation of each Work Product automatically assign, to the Department, ownership of all United States and international copyrights in each and

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Fresno Council of Governments
19-REAP-14029

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Rev. 8/19/2020

EXHIBIT D

Regional Early Action Planning Grants (REAP)
NOFA Date: October 10, 2019
Approved Date: April 9, 2020
Prep. Date: August 12, 2020

every Work Product, insofar as any such Work Product, by operation of law, may not be considered work made for hire by the Grantee’s contractor, subcontractor and/or subrecipient from the Department. From time to time upon the Department’s request, the Grantee’s contractor, subcontractor and/or subrecipients, and/or its employees, shall confirm such assignments by execution and delivery of such assignment, confirmations or assignment or other written instruments as the Department may request. The Department shall have the right to obtain and hold in its name all copyright registrations and other evidence of rights that may be available for Work Product under this Agreement. Grantee hereby waives all rights relating to identification of authorship restriction or limitation on use or subsequent modification of the Work.

3) Grantee, its employees and all Grantee’s contractors, subcontractors and sub-recipients hereby agree to assign to the Department all Inventions, together with the right to seek protection by obtaining patent rights therefore and to claim all rights or priority thereunder and the same shall become and remain the Department’s property regardless of whether such protection is sought. The Grantee, its employees and Grantee’s contractor, subcontractor and /or subrecipient shall promptly make a complete written disclosure to the Department of each Invention not otherwise clearly disclosed to the Department in the pertinent Work Product, specifically noting features or concepts that the Grantee, its employees and/or Grantee’s contractor, subcontractor and/or subrecipient believes to be new or different.

4) Upon completion of all work under this Agreement, all intellectual property rights, ownership and title to all reports, documents, plans, specifications and estimates, produced as part of this Agreement shall automatically vest in the Department and no further agreement will be necessary to transfer ownership to the Department.

13. Special Conditions

The State reserves the right to add any special conditions to this Agreement it deems necessary to assure that the policy and goals of the Program are achieved, in consultation with the Grantee.

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Exhibit B
Pro-rata Initial Allocations to Each Regional Transportation Planning Agency Based on January 2020 California Department of Finance Population Estimates

REAP PLANNING GRANT INITIAL ALLOCATIONS MPO

DISTRIBUTION

MPO Share by Population*

Fresno Council of Governments 1,032,227 23.50%

$1,114,737.62

Kern Council of Governments 927,251 21.11%

$1,001,370.41

Kings County Association of Governments 156,444 3.56%

$168,949.28

Madera County Transportation Commission 160,089 3.64%

$172,885.65

Merced County Association of Governments 287,420 6.54%

$310,394.79

San Joaquin Council of Governments 782,545 17.81%

$845,097.40

Stanislaus Council of Governments 562,303 12.80%

$607,250.45
Tulare County Association of Governments 484,423 11.03% $523,145.14

Total 4,392,702 100.00%

$4,743,830.75

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EXHIBIT B

PROJECT SCOPE OF WORK

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PROJECT SCOPE OF WORK FOR
THE 2024-2032 HOUSING ELEMENT UPDATE

I. HOUSING ELEMENT UPDATE
Kings County is currently in the process of conducting a comprehensive update of the Kings County Housing Element, which includes preparing the multijurisdictional Housing Element update for County unincorporated areas as well as the four incorporated Cities (Avenal, Corcoran, Hanford, and Lemoore). The Kings County Community Development Agency is assigned coordination of this project and seeks proposals from qualified consultants to provide professional services for the development of the Housing Element update.

The Housing Element update is required pursuant to California Government Code Section 65580 et seq. The purpose of this project is to update the Housing Element to be internally consistent with County and City General Plans and in compliance with s tate statutes to be certified by the California Department of Housing and Community Development (HCD). The update shall contain an overview of the housing needs in the unincorporated and incorporated areas of Kings County and provide analysis of both the c onstraints that may impact housing development as well as the resources available to facilitate it. State Housing Element law requires that each city and county identify and analyze existing and projected housing needs within their jurisdiction and prepare goals, policies, programs, and quantified objectives to further the development, improvement, and preservation of housing. The five jurisdictions in Kings County have collectively decided to prepare a joint countywide Housing Element with administrative s upport from the Kings County Development Agency. Kings County’s current Housing Element is for the planning period from 2016 to 2024. This Housing Element update will be for the planning period from 2024 to 2032.

The scope of work shall include the following:
• Meetings with County and City staff, other agencies’ staff, public officials, and the general public
• Coordination with other Consultants or subcontractors engaged , if necessary, in a supportive and joint effort
• Develop team assignments and a project t ask timeline compatible with Housing Element update due dates
• Complete an evaluation of the 2016-2024 Housing Element update • Coordinate with County and City staff to develop a current housing inventory and complete a Housing Needs Assessment to ensure conf ormance with Government Code Section 65583 et seq.
• Analysis of resources that cover land inventory, site analysis, financial and administrative resources, and energy conservation
• Analysis of constraints, including governmental and nongovernmental • Provide public review and final document and any appendices or references in a format acceptable to the County

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• Upon completion of agency and public review, comments will be addresse d and incorporated into relative context and submitted to the County for r eview, comment, and further revision, if necessary
• Provide timely progress updates to the Kings County Community Development Agency as requested and adhere to timelines as possible
• Prepare staff reports and other relative documents for Planning Commissions , City Councils, and Boards of Supervisors
• Effort with public outreach, including preparation of event materials, solicitation of comments, workshops, and public meetings throughout Kings County Deliverables shall include:
• Project Task Timeline and Team Assignments
• Working and Final Drafts of the 2024-2032 Housing Element • Hearing Drafts
• Public Participation Summaries
• 2024-2032 Housing Element Study
• Associated documents, appendices, and background studies • Staff reports and related documentation
• HCD Draft of the 2024-2032 Housing Element and mandated information for certification • Environmental documents, findings, and/or Notice of Exemption in compliance with California Environmental Quality Act (CEQA)
• Synopsis of recommended changes by HCD following the review period of HCD Draft • HCD Certified 2024-2032 Housing Element
• 2024-2032 Housing Element Certificate Letter from HCD

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EXHIBIT C

CONTACT INFORMATION FOR PARTICIPATING AGENCIES

For the County of Kings:

Chuck Kinney
Director of Community Development
1400 W. Lacey Blvd. Bldg. #6
Hanford, CA 93230
559-852-2670
[email protected]

For the City of Avenal:

Kao Nou Yang
Director of Community and Economic
Development
919 Skyline Blvd.

Avenal, CA 93204
559-401-9854
[email protected]

For the City of Corcoran:

Kevin Tromborg
Community Development Director
932 Whitley Ave.

Corcoran, CA 93212
559-992-2151
[email protected]

For the City of Hanford

Jason Waters
Deputy City Manager
317 Douty St.

Hanford, CA 93230
559-585-2580
[email protected]

For the City of Lemoore

Kristie Baley
Management Analyst
711 Cinnamon Dr.

Lemoore, CA 93245
559-924-6744 * 740
[email protected]

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12.E.

AGENDA

STAFF REPORT

MEETING DATE: 5/16/2023 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of Amendment No. 4 to the lease agreement between the City of Hanford and Mechanics Bank for the property located at 218 N. Douty Street (Old Post Office).

RECOMMENDATION:

Recommended Motion: That the City Council, by motion, Approve Amendment No. 4 to the lease agreement between the City of Hanford and Mechanics Bank for the property located at 218 N. Douty Street
BACKGROUND:

The City owns the property located at 218 N. Douty Street and leases it to Mechanics Bank. The original lease agreement for the property was entered into in August 1998 and several amendments to the agreement, extending the terms of the lease, have been approved since the original agreement. The most recent lease extension is set to expire on June 30, 2023.

Amendment No. 4 would extend the current lease of the property for an additional five years commencing on July 1, 2023 and expiring on June 30, 2028, unless sooner terminated or extended in accordance with the terms of the lease. The monthly base rent for the terms of the lease can be found below:

07/01/23 – 06/30/24: $6,110.77
07/01/24 – 06/30/25: $6,294.10
07/01/25 – 06/30/26: $6,482.92
07/01/26 – 06/30/27: $6,677.41
07/01/27 – 06/30/28: $6,877.73

Additional details associated with the terms, options to extend, and responsibilities of the tenant and landlord can be found in the attached agreement.

FISCAL IMPACT:

Revenues associated with the terms of the lease agreement are collected in the City's General Fund.

ATTACHMENTS:

1. Amendment No. 4 - Mechanics Bank Lease

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218 N. Douty St.

Hanford, CA

AMENDMENT NO. 4 TO LEASE
218 N. Douty Street, Hanford, California
This AMENDMENT NO. 4 TO LEASE (this "Amendment") is made and effective as of May 3, 2023 by and between CITY OF HA NFORD, a municipal corporation (" Landlord"), and MECHANICS BANK, a California banking corporation ("Tenant").

R E C I T A L S :

A. Landlord and Kings River State Bank, a California corporation (“ Original Tenant”) entered into that certa in Lease Agreement dated as of August 12, 1998 (the " Lease") whereby Landlord leased to Original Tenant a nd Original Tenant leased from Landlord that certain space containing approxima tely 4,398 square feet (the " Premises") of that certain building located at 218 N. Douty Street, Hanford, California, California (the "Building").

B. The Original Lease has been amended by that certain First Amendment to Lease dated August 18, 1998 (the “ First Amendment”) between Landlord and Original Tenant, that certain Amendment No. 2 to Lease May 11, 2018 (the “ Second Amendment ”) between Landlord and Rabobank, N.A., as successor- in-interest to Original Tenant (“ Rabobank”), and that certain Amendment No. 3 to Lease dated September 10, 2018 (the “ Third Amendment”) between Landlord and Rabobank. The Original L ease, First Amendment, Second Amendment and Third Amendment may be referred to herein collectively as the “Lease”.

C. Effective as of August 29, 2019, Rabobank me rged with Tenant and Tenant has succeeded to all of Rabobank’s interests under the Lease.

D. The Term of the Lease originally comme nced on July 1, 1998 and is currently scheduled to expire on June 30, 2023.

E. The parties now desire to amend the Leas e to extend the Term of the Lease, and modify various terms and provisions of the Lease, all as hereinafter provided.

A G R E E M E N T :

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the recei pt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Capitalized Terms. All capitalized terms when used herein shall have the same meanings given such terms in the Lease unle ss expressly superseded by the terms of this Amendment. All references in the Lease and in this Amendment to “the Lease” or “this Lease” shall be construed to mean th e Lease referenced above as am ended and supplemented by this Amendment.

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218 N. Douty St.

Hanford, CA

2. Extension of Term. The Term of the Leas e which is scheduled to expire on June 30, 2023 is hereby extended for one (1) additional period of five (5) years, commencing on July 1, 2023 (the “ Extended Term Commencement Date ”) and expiring on June 30, 2028, unless sooner terminated or extended in accordance with the terms of th e Lease (such 5-year extension term shall be referred to herein as the "Extended Term").

3. Monthly Base Rent. During the Extended Term, Tenant shall pay Monthly Base Rent to Landlord for the Premises in accordance with the following schedule:

Periods of Extended
Term

Monthly
Base Rent
07/01/23 – 06/30/24 $6,110.77
07/01/24 – 06/30/25 $6,294.10
07/01/25 – 06/30/26 $6,482.92
07/01/26 – 06/30/27 $6,677.41
07/01/27 – 06/30/28 $6,877.73

4. Condition of Premises. Tenant is in possession of the Premises and accepts the same in its current "AS IS" condition without any agreements, understandings, or obligations on the part of Landlord to perform or pay for any alterations, repairs or improvements thereto.

5. [Intentionally Deleted].

6. Options to Extend Extended Term. Tenant shall have the right to extend the Term of the Lease following the expiration of Extended Te rm for two (2) additional periods of five (5) years each (each an “ Option Term ”), in accordance with the terms of Section 2.D. of the Original Lease, except that (a) each Option Term shall be exercised by Te nant, if at all, by delivery of written notice to Land lord not less than six (6) months prior to the expiration of the Extended Term and the first Option Term, as the case may be, elec ting to extend the Lease Term for the applicable Option Term and (b) during an Option Term, the Monthly Base Rent shall increase on July 1 of each year by three percent (3%).

7. Tenant's Address for Notices. The address of Tenant for notices set forth in the Lease is hereby deleted and replaced with the following:

"Mechanics Bank
18400 Von Karman, Suite 1100
Irvine, CA 92612
Attn: Christopher Pierce
Email: [email protected]

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218 N. Douty St.

Hanford, CA

With a copies sent concurrently to:

Mechanics Bank
18400 Von Karman, Suite 1100
Irvine, CA 92612
Attn: Lisa Twomey / Facilities Department
Email: [email protected]

and

Kennerly, Lamishaw & Rossi LLP
707 Wilshire Boulevard, Suite 1400
Los Angeles, CA 90017
Attn: William J. Birney, Esq.

Email: [email protected]"

8. Authorization. Landlord and Tenant re present and warrant to each other respectively that they have the requisite power and authority to enter into this Amendment; that all necessary and appropriate approvals, authoriza tions and other steps have been taken to effect the legality of this Amendment; that the signato ries executing this Amendment on behalf of Landlord and Tenant have been duly authorized and empowered to execute this Amendment on behalf of Landlord and Tenant, respectively; and that this Amendment is valid and shall be binding upon and enforceable against Landlord and Tenant and their respective successors and assigns and shall inure to the benefit of Landlord and Tenant, and their respective successors and assigns.

9. Full Force and Effect. Except as set forth herein, all of the terms, covenants, and conditions of the Lease shall remain in full force and effect and ther e exists as of the date hereof no default or breach by Tenant of (or to Landlord’s knowledge the occurrence of an event which, with the passage of time or the giving of notice or either of th em would constitute a default or breach by Tenant of) any of the terms or conditions of, or obligations of Tenant under the Lease.

If a conflict or inconsistency exists between the terms and provisions of this Amendment and the terms and provisions of the Lease, the terms and provisions of this Ame ndment shall control to the extent of any such conflict or inconsistency.

10. Counterparts; Electronic Signatures. Th is Amendment may be executed in any number of counterparts, all of which shall be de emed an original, but such counterparts, when taken together, shall constitute one agreement. Th e parties hereto may deliver their signatures to this Amendment by electronic (portable data fo rmat - .pdf) transmission, or other electronic transmission, including w ithout limitation, DocuSign a nd AdobeSign (collectively, “ Electronic Signatures”). The use of Electronic Signatures a nd electronic record s (including, without limitation, any contract or othe r record created, generated, se nt, communicated, received or stored by electronic means) shall have the same legal effect, validity a nd enforceability as a manually executed signature or use of a paper-based recordkeeping system to the fullest extent permitted by applicable law, including, without limitation, the Electronic Signatures in Global and National Commerce Act, any state law base d on the Uniform Electronic Transactions Act and the Uniform Commercial Code. In connec tion with the foregoing, the parties hereto

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incorporate the provisions of California Civil Code (“CC”) § 1633.1 et seq, which provides in relevant part that the parties to an Agreement (CC §1633.2(a)), or Contract (CC §1633.2(d)), can agree to conduct a transaction by electronic means, and that such agreements shall not be denied legal effect solely because it is in electronic form, and “If a law requires a record to be in writing, an electronic record satisfies the law.” (CC § 1633.7). In the ev ent a signature is transmitted electronically, the party so tran smitting shall deliver original signature pages as soon as reasonably possible thereafter; pr ovided, however, that the failure to deliver such original signature pages shall not diminish the binding nature of any Electronic Signatures.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE.]

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Signature Page
218 N. Douty St.

Hanford, CA

IN WITNESS WHEREOF, this Amendment has been executed as of the day and year first above written.
"Landlord" CITY OF HANFORD
By:

MARIO A. CIFUENTEZ, II
Its: City Manager

"Tenant" MECHANICS BANK,
a California banking corporation
By:

Christopher Pierce
Its Chief Operating Officer

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12.F.

AGENDA

STAFF REPORT

MEETING DATE: 5/16/2023 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Adoption of Resolution no. 23-10-R regarding the public transit needs within the City of Hanford and authorization for the City Manager to sign and submit the claim for funds and any subsequent amended claims, and Approve the filing of the Notice of Exemption to certify that projects to be constructed with these funds are categorically exempt from the California Environmental Quality Act.

RECOMMENDATION:

That the City Council, by motion:

1. Adopt the attached resolution no. 23-10-R regarding the public transit needs within the City of Hanford and authorize the City Manager to sign and submit the claim for funds and any subsequent amended claims required;

2. Determine, based on the City's financial participation in and support of the existing Kings County Area Transit Agency System, that there are no areas within the City of Hanford with unmet public transit needs which could reasonably be met by the expansion of the system or by the establishment of a new system;

3. Approve the filing of the attached Notice of Exemption to certify that projects to be constructed with these funds are categorically exempt from the California Environmental Quality Act.

BACKGROUND:

Attached are estimates of TDA funding for Fiscal Year 2023/24 prepared by the Kings County Auditor pursuant to section 6620 of the California Administrative Code.

Listed below is a summary distribution of TDA funds received for the past few years:

Description: 2018/19 2020/21 2021/22 2022/23
KCAG Transportation Planning Costs $71,218 $110,501 $48,365 $47,169 Kart Bus System Costs $613,667 $629,833 $952,136 $986,683 Local Streets and Roads - Claim Amt. $978,390 $1,114,223 $1,280,099 $1,190,378 Hanford's TDA Fund Total $1,663,275 $1,854,557 $2,280,600 $2,224,230

The attached resolution no. 23-10-R permits the City Manager to sign and submit this claim as well

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Hanford City CouncilMay 16, 2023

Hanford City Council
May 16, 2023