Agenda packet — Hanford City Council, October 21, 2025 (part 2 of 2)

FISCAL IMPACT:

The fiscal impact will total $29,000, reimbursed by the ABC grant. Staff is requesting a budget amendment to recognize the grant funds and an appropriation in the amount of $29,000 to the General Fund for the Police Department. The City will be reimbursed on a quarterly basis by the grant administrator.

ATTACHMENTS:

1. Award Letter

2. Resolution 25-56-R

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STATE OF CALIFORNIA — BUSINESS, CONSUMER SERVICES, AND HOUSING AGENCY Gavin Newsom, Governor

DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL
3927 Lennane Drive, Suite 100
Sacramento, CA 95834
(916) 419-2500

September 26, 2025

Chief Stephanie Huddleston
Hanford Police Department
425 N. Irwin St.

Hanford, CA 93230

Re: ABC-OTS Grant Program

Dear Chief Huddleston:

Congratulations. Your agency has been selected to participate in the Department of Alcoholic Beverage Control’s ABC-OTS Grant Program. Funding for this project is provided by the Office of Traffic Safety through the National Highway Traffic Safety Administration.

We anticipate operations to begin upon completion of the one-day mandatory training class for your operations officer. Fiscal Officers will be contacted by our Fiscal Coordinator; Kristine Okino for training how to submit claims for reimbursement.

Since the grant starts October 1, 2025, you can make pre-paid travel arrangements on or after that date for your operations officer to attend the training. Pre-paid travel purchased prior to October 1
st will not be reimbursed. The information regarding the date, location and authorized per diem rates are enclosed.

To expedite the issuance of your contract, please review and complete the enclosed ABC-OTS Grant Program Information Sheet. In addition, we will also need a resolution from your agency’s governing body. Since these resolutions must be put on calendar, we ask that you do so as soon as possible. For your convenience attached is a sample resolution format.

Please mail, or email the Grant Information Sheet to our Grant Coordinator; Diana Fouts-Guter, at 3927 Lennane Drive, Suite 100, Sacramento, CA 95834, or at [email protected].

If you have questions, please contact Grant Supervisor Daniel Sumida via email at [email protected].

We appreciate your prompt response and look forward to working with your agency.

Sincerely,

Paul Tupy
Director

Enclosures

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RESOLUTION 25-56-R

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD

APPROVING THE ACCEPTANCE OF THE DEPARTMENT OF ALCOHOLIC

BEVERAGE CONTROL (ABC) GRANT
WHEREAS, The City of Hanford Police Department desires to undertake a certain project designated as The Alcohol Policing Partnership Grant to be funded in part from funds made available through the Alcohol Policing Partnership Program (APP) administered by the Department of Alcoholic Beverage Control (hereafter referred to as ABC), and; IT IS AGREED, that any liability arising out of the performance of this contract, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The State of California and ABC disclaim responsibility for any such liability.

IT IS ALSO AGREED, that this award is not subject to local hiring freezes.

BE IT FURTHER RESOLVED, that grant funds received hereunder shall not be used to supplant expenditures controlled by this body.

NOW, THEREFORE, BE IT RESOLVED that the City Council approves the Chief of Police of the City of Hanford to authorize and execute the attached contract, including any extensions or amendments thereof and any subsequent agreement with the State in relation thereto.

PASSED, ADOPTED AND APPROVED at the regular meeting of the City Council of the City of Hanford held on October 21, 2025, by the following vote:

AYES: _______________________________________________________________ NOES:_______________________________________________________________ ABSENT:_____________________________________________________________ ABSTAIN:_____________________________________________________________

__________________________

TRAVIS PADEN
MAYOR of the City of Hanford

Attest:

__________________________________

NATALIE CORRAL

CITY CLERK

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STATE OF CALIFORNIA )
COUNTY OF KINGS ) ss

CITY OF HANFORD )

I, Natalie Corral, City Clerk of the City of Hanford, do hereby certify the foregoing Resolution was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the _____day of ______, 20___.

Date: ____________________

_________________________________
City Clerk

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13.A.

AGENDA

STAFF REPORT

MEETING DATE: 10/21/2025 AGENDA SECTION: PUBLIC HEARING

SUBJECT:

Resolution No. 2025-57-R of the City Council of the City of Hanford Annexing Territory (Stonehaven Subdivision) to Community Facilities No. 2025-1 (Public Safety Services), as Annexation No. 1, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting Levy of a Special Tax to Qualified Electors Thereof; and

Resolution No. 2025-58-R of the City Council of the City of Hanford Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2025-1 (Public Safety Services), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Hanford Community Facilities District No. 2025-1 (Public Safety Services) Annexation No. 1 (Stonehaven Subdivision).

RECOMMENDATION:

Recommendation:

Hold public hearing and adopt Resolution No. 2025-57-R of the City Council of the City of Hanford Annexing Territory (Stonehaven Subdivision) to Community Facilities No. 2025-1 (Public Safety Services), as Annexation No. 1, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting Levy of a Special Tax to Qualified Electors Thereof; and Resolution No. 2025-58-R of the City Council of the City of Hanford Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2025-1 (Public Safety Services), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Hanford Community Facilities District No. 2025-1 (Public Safety Services) Annexation No. 1 (Stonehaven Subdivision).

Recommended Motion:

I motion that City Council hold public hearing and adopt Resolution No. 2025-57-R of the City Council of the City of Hanford Annexing Territory (Stonehaven Subdivision) to Community Facilities No. 2025-1 (Public Safety Services), as Annexation No. 1, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting Levy of a Special Tax to Qualified Electors Thereof; and Resolution No. 2025-58-R of the City Council of the City of Hanford Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2025-1 (Public Safety Services), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Hanford Community Facilities District No. 2025-1 (Public Safety Services) Annexation No. 1 (Stonehaven Subdivision).

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BACKGROUND:

The conditions of approval for the Stonehaven Subdivision development requires that the property be annexed to Community Facilities District No 2025-1 (Public Safety Services). CFD No. 2025-1 was formed by the City to offset the increased cost of public safety services created due to new development for police services and fire protection services. A public hearing must be held on the question of whether to annex the property to CFD 2025-1. In the absence of majority protest, the attached resolutions annex the territory to CFD 2025-1, authorize the levy of a special tax within the annexed territory subject to voter approval, call an election to allow the property owner to cast a ballot on the levy of special tax, and declare the result of such election.

By Resolution 2025-19-R, the City Council established CFD 2025-1, a Mello-Roos Community Facilities District (CFD), with the intention that future development within the City would annex to this District. The special taxes collected from the property owners within the District are used to fund the increased cost of public safety services created due to new development for police services and fire protection services.

The property proposed for annexation is currently owned by D.R. Horton Ca3 Inc. and is located south of Hanford-Armona Road between 12th and 13th Avenues within the boundary of assessor’s parcel number (APN) 011-040-030-000, as depicted on Exhibit A. The development on the property will be 82 single-family lots. Development of this property will change the property’s characteristics and manner in which the property will be used, thereby creating a need for more services funded by CFD 2025-1.

The City contracted with Willdan Financial Services for the preparation of the necessary resolutions and balloting procedures for the annexation process.

The council adopted Resolution No. 25-50-R on September 16, 2025, to declare its intention to annex the territory to CFD 2025-1 and set the public hearing for October 21, 2025. Following the public hearing, and in the absence of a majority protest and approval by the property owner, the adoption of the attached resolutions will annex the territory to CFD 2025-1, call and hold an election of the property owner within the annexed territory, declare the results of the special election, and authorize the levy of the special taxes within the annexed territory, thereby concluding the annexation process.

FISCAL IMPACT:

The estimated annual revenue received by the City for this development will be $13,448.00, which is based on the maximum special tax rate of $164.00 per unit for Fiscal Year 2025/26 for an estimated 82 detached single family residential parcels.

The special tax for CFD 2025-1 includes an annual escalation factor as defined in the rate and method of apportionment (RMA). The “Annual Escalation Factor” means the greater of (i) four percent (4%) or (ii) the annual percentage increase in the Consumer Price Index for All Urban Consumers for San Francisco-Oakland-San Jose Area as determined by the Bureau of Labor Statistics. If said index is discontinued, then an alternative index may be used as determined by the Special Tax Administrator. The originally established Maximum Special Tax Rates for Community Facilities District No. 2025-1 for Public Safety Services is as follows:

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For each Fiscal Year following the Base Year (“Base Year” = Fiscal Year 2025/26), the Maximum Special Tax rates in Table 1 shall be increased by the Annual Escalation Factor. Additional details may be found in the RMA contained in Resolution 25-50-R, Resolution of Intention. The process for annexation is funded by the developer and no General Fund monies are used for this effort.

Prior Council Action:

September 16, 2021: Resolution of Intention

ATTACHMENTS:

1. Resolution No 25-57-R

2. Resolution No 25-58-R

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RESOLUTION NO. 25-57-R

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD ANNEXING

TERRITORY (STONEHAVEN SUBDIVISION) TO COMMUNITY FACILITIES DISTRICT NO. 2025-1 (PUBLIC SAFETY SERVICES) AS ANNEXATION NO. 1, AUTHORIZING THE

LEVY OF A SPECIAL TAX WITHIN THE ANNEXED TERRITORY, AND SUBMITTING

LEVY OF A SPECIAL TAX TO THE QUALIFIED ELECTORS THEREOF

WHEREAS, the CITY COUNCIL of the CITY OF HANFORD, CALIFORNIA (the “City Council”), on September 16, 2025 adopted Resolution No. 25-50-R (Resolution of Intention) stating its intention to annex certain territory to the City’s existing Community Facilities District No. 2025-1 (Public Safety Services) (CFD 2025-1), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code) (Act); and

WHEREAS, a copy of the Resolution of Intention, incorporating a description and map of the proposed boundaries of the territory to be annexed to CFD 2025-1 (Territory) and stating the facilities and services (Services) to be provided and the rate and method of apportionment of the special tax (Rate and Method) to be levied within the CFD to pay for the Services, is on file with the city clerk and the provisions thereof are fully incorporated herein by this reference as if fully set forth herein; and

WHEREAS, the Resolution of Intention set October 21, 2025, as the date of the public hearing on the proposed annexation of the Territory to CFD 2025-1; and

WHEREAS, notice of the public hearing was published in accordance with the Act; and

WHEREAS, on October 21, 2025, this council held a public hearing as required by the Act and the Resolution of Intention relative to the proposed annexation of territory to CFD 2025-1; and

WHEREAS, at said hearing, interested persons desiring to be heard on all matters pertaining to the annexation of the Territory to CFD 2025-1 and the levy of said special taxes within the Territory were heard, and a full and fair hearing was held, evidence was presented to this council regarding the annexation and special taxes, and this council is fully advised as to all matters relating to the annexation of the Territory to CFD 2025-1 and the special taxes; and

WHEREAS, prior to the time fixed for said hearing, written protests had not been filed with the city clerk against the proposed annexation of the Territory to CFD 2025-1 by (i) 50% or more of the registered voters or six registered voters, whichever is more, residing in CFD 2025-1, or (ii) owners of one-half or more of the area of land in CFD 2025-1 and not exempt from the levy of the special tax; and

WHEREAS, the special tax proposed to be levied in the Territory to pay for the cost of the Services, including incidental expenses, has not been precluded by a majority protest pursuant to Section 53324 of the Act; and

WHEREAS, Annexation Map No. 1 to CFD 2025-1 has been filed with the county recorder of the County of Kings, which map shows the Territory to be annexed to the CFD in these proceedings, and a copy thereof is on file with the city clerk.

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

Section 1. Recitals Correct. The above recitals are true and correct and made a part hereof.

Section 2. Validity and Conformity. All prior proceedings taken by this council, with respect to CFD 2025-1 and the proposed annexation of the Territory thereto, have been duly considered and are hereby determined to be valid and in conformity with the Act.

Section 3. Services. This council determines that the project proposed for the Territory will intensify the use of the property, creating a need for more Services under CFD 2025-1. The Services that CFD 2025-1 is authorized to finance are in addition to those provided in or required for the territory within CFD 2025-1 and will not replace existing services.

Section 4. Boundaries of the District. The description and map of the boundaries of the Territory, as described in said Annexation No. 1 to the CFD, on file with the city clerk, are hereby finally approved, are incorporated herein by reference, and shall be included within the boundaries of CFD 2025-1, and said Territory is hereby ordered annexed to CFD 2025-1, subject to voter approval of the levy of the special taxes therein as hereinafter provided.

Section 5. Resolution of Intention. The provisions of the Resolution of Intention, which this council has heretofore adopted, are by this reference incorporated herein, as if fully set forth herein.

Section 6. Special Tax. It is the intention of this council that, except where funds are otherwise available to pay for the Services, a special tax, secured by recordation of a continuing lien against all non-exempt real property in the Territory, will be levied annually within the boundaries of the Territory from and after the annexation of the Territory to CFD 2025-1. The special taxes shall be those as originally authorized through the formation of CFD 2025-1 and adopted by ordinance of the legislative body of CFD 2025-1. For particulars, reference is hereby made to the Rate and Method. The special tax is hereby authorized, subject to approval by two- thirds of the votes cast within the Territory, commencing with fiscal year (FY) 2026-2027, in accordance with the Rate and Method, and procedures of the Act within the boundaries of the Territory to pay for the costs of the Services, including incidental expenses.

Section 7. Proposed Levy Submitted to Voters. Pursuant to the provisions of the Act, the proposition of the levy of the special tax within the Territory shall be submitted to the voters within the Territory at an election called therefore as hereinafter provided.

Section 8. Registered Voters. This council hereby finds that fewer than 12 persons have been registered to vote within the Territory for each of the 90 days preceding the close of the public hearing heretofore conducted and concluded by this council for the purposes of these annexation proceedings. Accordingly, and pursuant to Section 53326 of the Act, this council finds that for purposes of these proceedings the qualified electors are the landowners within the Territory and that the vote shall be by said landowners, each having one vote for each acre or each portion thereof such landowner owns in the Territory.

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Section 9. Ballot. Pursuant to Section 53326 of the Act, the election shall be conducted by mail ballot, in accordance with the applicable provisions of the California Elections Code governing mail ballot elections of cities, and in particular the provisions of Division 4 (commencing with Section 4000), of that code, insofar as they have not been waived by the unanimous consent of all landowners of the Territory.

Section 10. Election. This council calls a special election to consider the measure described in the ballot referred to in Section 11 below, which election will be held on October 21, 2025, (Election Day) in the regular meeting place of the council, at the Civic Auditorium, located at 400 North Douty Street, Hanford, California.

Section 11. Election Official. The city clerk will be the election official to conduct the election and has caused to be provided to each landowner in the Territory, a ballot in the form of Exhibit A hereto, which is hereby approved.

Section 12. Ballots Accepted. The city clerk has accepted the ballots of the qualified electors received prior to 7:00 p.m. on Election Day, whether received by mail or by personal delivery.

Section 13. 90 Day Requirement Waived. This council hereby finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days to elapse before said election is for the protection of voters, that the voters have waived such requirement and the date for the election hereinabove specified is established accordingly.

PASSED, ADOPTED AND APPROVED by the City Council of the City of Hanford at a regular meeting being held on October 21, 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Travis Paden
MAYOR of the City of Hanford

ATTEST:

Natalie Corral
City Clerk

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State of California )
County of Kings ) ss
City of Hanford )

Date: City Clerk _____________________

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RES. NO. 2025 - _____
Exhibit A
Community Facilities District No. 2025-1
(Public Safety Services)
Annexation Map No. 1
Boundary Map

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Exhibit B
City of Hanford
Community Facilities District No. 2025-1
(Public Safety Services)
Annexation No. 1

OFFICIAL BALLOT

SPECIAL TAX ANNEXATION ELECTION
This ballot is for the special landowner election. You must return this ballot, signed, in the enclosed envelope to the office of the City Clerk of the City of Hanford no later than 7:00 p.m. on October 21, 2025, either by mail or in person. The City Clerk’s office is located at 319 North Douty Street, Hanford, California, 93230.

To vote, mark in the voting square after the word “YES” or after the word “NO”. For a list of acceptable marks, please refer to the back of this ballot.

If you wrongly mark, tear, or deface this ballot, return to the City Clerk of the City of Hanford and obtain another.

BALLOT MEASURE: Shall the City of Hanford, by and for
its Community Facilities District No. 2025-1 (Public Safety Services) (the “CFD”), be authorized to levy special taxes within the territory annexed to the CFD pursuant to and as described in the rate and method of apportionment (“RMA”) attached hereto as Exhibit A and incorporated herein and as also set forth in the Resolution of Intention of the City of Hanford adopted by its Council on September 16, 2025?
YES:

NO:

By executing in the space provided below, you also confirm your waiver of the time limit pertaining to the conduct of the election and any requirement for notice of election and analysis and arguments with respect to the ballot measure, as such waivers are described and permitted by Section 53326 (a) and 53327 (b) of the California Government Code.

Acres Owned Within Territory Annexed: 11.81
Number of Votes: 12
D R Horton CA3 Inc.
419 West Murray Avenue
Visalia, CA 93291
Property Owner/Authorized Representative Signature: ________________________

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RESOLUTION NO. 2025-58-R

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD DECLARING THE

RESULTS OF A SPECIAL ANNEXATION ELECTION IN TERRITORY ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2025-1 (PUBLIC SAFETY SERVICES)

DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS, AND DIRECTING

RECORDING OF AMENDED NOTICE OF SPECIAL TAX LIEN FOR CITY OF HANFORD COMMUNITY FACILITIES DISTRICT NO. 2025-1 (PUBLIC SAFETY SERVICES) ANNEXATION NO. 1 (STONEHAVEN SUBDIVISION)

WHEREAS, in proceedings heretofore conducted by the CITY COUNCIL of the CITY OF HANFORD, CALIFORNIA (the “City Council”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code) (Act), this council has heretofore adopted a resolution calling a special election of the qualified landowner electors in the territory of land annexed to Community Facilities District No. 2025-1 (Public Safety Services) (CFD 2025-1); and

WHEREAS, pursuant to the terms of the resolution, which is hereby incorporated herein by this reference, the special election has been held, and the city clerk has filed a Canvass and Statement of Results of Election (Canvass), a copy of which is attached hereto as Exhibit A; and

WHEREAS, this council has reviewed the Canvass and hereby approves it.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HANFORD HEREBY RESOLVES:

Section 1. Recitals Correct. The above recitals are true and correct and made a part hereof.

Section 2. Issue Presented. The issue presented at the special election was the levy of a special tax within the territory annexed to CFD 2025-1, to be levied in accordance with the Rate and Method of Apportionment heretofore approved by this council as described in Resolution No. 2025-57-R, a “Resolution of the City Council of the City of Hanford Annexing Territory (Stonehaven Subdivision) to Community Facilities District No. 2025-1 (Public Safety Services) as Annexation No. 1, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting the Levy of a Special Tax to the Qualified Electors Thereof,” adopted October 21, 2025.

Section 3. Ballot Measure Approved. Pursuant to the Canvass on file with the city clerk, the issue presented at the special election was approved by the landowners of the territory annexed to CFD 2025-1 by more than two-thirds of the landowners voting at the special election.

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Section 4. Special Taxes. Pursuant to the voter approval, this council may levy special taxes within the territory annexed to CFD 2025-1 pursuant to Resolution No. 2025-57-R, adopted October 21, 2025, as heretofore provided in these proceedings.

Section 5. Validity and Conformity. All prior proceedings taken by this council with respect to CFD 2025-1 and the annexation of the territory thereto have been duly considered and are hereby determined to be valid and in conformity with the Act.

Section 6. Amended Notice of Special Tax Lien. Within 15 days of the date hereof, the city clerk shall execute and cause to be recorded in the office of the county recorder of the County of Kings an amendment to the Notice of Special Tax Lien as required by Section 3117.5 of the California Streets and Highway Code.

PASSED, ADOPTED AND APPROVED on this 21st day of October, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Travis Paden
MAYOR of the City of Hanford

ATTEST:

Natalie Corral
City Clerk

State of California )
County of Kings ) ss
City of Hanford )

Date: City Clerk _____________________

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Exhibit A

CITY OF HANFORD
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(PUBLIC SAFETY SERVICES)
ANNEXATION NO. 1

CERTIFICATE OF THE CITY CLERK AS TO THE

RESULTS OF THE CANVASS OF THE ELECTION RETURNS

I, Natalie Corral, City Clerk of the City of Hanford, hereby certify that I canvassed the returns of the Special Election in the City of Hanford Community Facilities District No. 2025-1 (Public Safety Services) Annexation No. 1, and that the election was held in the Civic Auditorium of the City Council at 400 North Douty Street, Hanford, California 93230 on October 21, 2025.

I further certify that the total number of ballots cast in said election and the total number of votes cast for and against the measure are full, true and correct:

Ballot Measure
Qualified
Eligible
Votes
Votes
Cast Yes No
Shall the City of Hanford, by and for its Community
Facilities District No. 2025-1 (Public Safety Services) (the “CFD”), be authorized to levy special taxes within the territory annexed to the CFD pursuant to and as
described in the rate and method of apportionment
(“RMA”) attached hereto as Exhibit A and incorporated
herein and as also set forth in the Resolution of
Intention of the City of Hanford adopted by its Council on September 16, 2025?
12 IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 21st day of OCTOBER, 2025.

By: __________________________
Natalie Corral
City Clerk
City of Hanford

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13.B.

AGENDA

STAFF REPORT

MEETING DATE: 10/21/2025 AGENDA SECTION: PUBLIC HEARING

SUBJECT:

Resolution No. 2025-59-R of the City Council of the City of Hanford Annexing Territory (Stonehaven Subdivision) to Community Facilities No. 2025-2 (Public Maintenance Services), as Annexation No. 1, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting Levy of a Special Tax to Qualified Electors Thereof; and

Resolution No. 2025-60-R of the City Council of the City of Hanford Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2025-2 (Public Maintenance Services), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Hanford Community Facilities District No. 2025-2 (Public Maintenance Services) Annexation No. 1 (Stonehaven Subdivision).

RECOMMENDATION:

Recommendation:

Hold public hearing and adopt Resolution No. 2025-59-R of the City Council of the City of Hanford Annexing Territory (Stonehaven Subdivision) to Community Facilities No. 2025-2 (Public Maintenance Services), as Annexation No. 1, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting Levy of a Special Tax to Qualified Electors Thereof; and Resolution No. 2025-60-R of the City Council of the City of Hanford Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2025-2 (Public Maintenance Services), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Hanford Community Facilities District No. 2025-2 (Public Maintenance Services) Annexation No. 1 (Stonehaven Subdivision).

Recommended Motion:

I motion that City Council hold public hearing and adopt Resolution No. 2025-59-R of the City Council of the City of Hanford Annexing Territory (Stonehaven Subdivision) to Community Facilities No. 2025-2 (Public Maintenance Services), as Annexation No. 1, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting Levy of a Special Tax to Qualified Electors Thereof; and Resolution No. 2025-60-R of the City Council of the City of Hanford Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2025-2 (Public Maintenance Services), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Hanford Community Facilities District No. 2025-2 (Public Maintenance Services) Annexation No. 1 (Stonehaven Subdivision).

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BACKGROUND:

The conditions of approval for the Stonehaven Subdivision development requires that the property be annexed to Community Facilities District No 2025-2 (Public Maintenance Services) (CFD 2025-2).

CFD No. 2025-2 was formed by the City to offset the increased cost of public maintenance services created due to new development for landscaping and lighting, park, drainage, and street maintenance. A public hearing must be held on the question of whether to annex the property to CFD 2025-2. In the absence of majority protest, the attached resolutions annex the territory to CFD 2025- 2, authorize the levy of a special tax within the annexed territory subject to voter approval, call an election to allow the property owner to cast a ballot on the levy of special tax, and declare the result of such election.

By Resolution 2025-22-R, the City Council established CFD 2025-2, a Mello-Roos Community Facilities District (CFD), with the intention that future development within the City would annex to this District. The special taxes collected from the property owners within the District are used to fund the increased cost of public maintenance services created due to new development for landscaping and lighting maintenance, park maintenance, drainage maintenance, and street maintenance.

The City contracts with Willdan Financial Services for the preparation of the necessary resolutions and balloting procedures for the annexation process.

The council adopted Resolution No. 25-51-R on September 16, 2025, to declare its intention to annex the territory to CFD 2025-2 and set the public hearing for October 21, 2025.

Following the public hearing, and in the absence of a majority protest and approval by the property owner, the adoption of the attached resolutions will annex the territory to CFD 2025-2, call and hold an election of the property owner within the annexed territory, declare the results of the special election, and authorize the levy of the special taxes within the annexed territory, thereby concluding the annexation process.

FISCAL IMPACT:

The estimated annual revenue received by the City for this development will be $44,362.00 which is based on the maximum special tax rate of $541.00 per unit for Fiscal Year 2025/26 for an estimated 82 detached single family residential parcels.

The special tax for CFD 2025-2 includes an annual escalation factor as defined in the Rate and Method of Apportionment of Special Tax (RMA). The process for the annexation is funded by the developer and no General Fund monies are used for this effort. The “Annual Escalation Factor” means the greater of (i) four percent (4%) or (ii) the annual percentage increase in the Consumer Price Index for All Urban Consumers for San Francisco-Oakland-San Jose Area as determined by the Bureau of Labor Statistics. If said index is discontinued, then an alternative index may be used as determined by the Special Tax Administrator.

The originally established Maximum Special Tax Rates for Community Facilities District No. 2025-2

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for Public Maintenance Services is as follows:

For each Fiscal Year following the Base Year (“Base Year” = Fiscal Year 2025/26), the Maximum Special Tax rates in Table 1 shall be increased by the Annual Escalation Factor. Additional details may be found in the RMA contained in Resolution 25-51-R, Resolution of Intention. The process for annexation is funded by the developer and no General Fund monies are used for this effort.

Prior Council Action:

September 16, 2021: Resolution of Intention

ATTACHMENTS:

1. Resolution No 25-59-R

2. Resolution No 25-60-R

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RESOLUTION NO. 25 -59-R

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD ANNEXING

TERRITORY (STONEHAVEN SUBDIVISION) TO COMMUNITY FACILITIES DISTRICT NO. 2025-2 (PUBLIC MAINTENANCE SERVICES) AS ANNEXATION NO. 1,

AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE ANNEXED TERRITORY,

AND SUBMITTING LEVY OF A SPECIAL TAX TO THE QUALIFIED ELECTORS

THEREOF

WHEREAS, the CITY COUNCIL of the CITY OF HANFORD, CALIFORNIA (the “City Council”), on September 16, 2025 adopted Resolution No. 25-51-R (the “Resolution of Intention”) stating its intention to annex certain territory to the City’s existing Community Facilities District No. 2025-2 (Public Maintenance Services) (“CFD 2025-2”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code) (the “Act”); and

WHEREAS, a copy of the Resolution of Intention, incorporating a description and map of the proposed boundaries of the territory to be annexed to CFD 2025-2 (the “Territory”) and stating the facilities and services (the “Services”) to be provided and the rate and method of apportionment of the special tax (the “Rate and Method”) to be levied within the CFD to pay for the Services, is on file with the city clerk and the provisions thereof are fully incorporated herein by this reference as if fully set forth herein; and

WHEREAS, the Resolution of Intention set October 21, 2025, as the date of the public hearing on the proposed annexation of the Territory to CFD 2025-2; and

WHEREAS, notice of the public hearing was published in accordance with the Act; and

WHEREAS, on October 21, 2025, this council held a public hearing as required by the Act and the Resolution of Intention relative to the proposed annexation of territory to CFD 2025-2; and

WHEREAS, at said hearing, interested persons desiring to be heard on all matters pertaining to the annexation of the Territory to CFD 2025-2 and the levy of said special taxes within the Territory were heard, and a full and fair hearing was held, evidence was presented to this council regarding the annexation and special taxes, and this council is fully advised as to all matters relating to the annexation of the Territory to CFD 2025-2 and the special taxes; and

WHEREAS, prior to the time fixed for said hearing, written protests had not been filed with the city clerk against the proposed annexation of the Territory to CFD 2025-2 by (i) 50% or more of the registered voters or six registered voters, whichever is more, residing in CFD 2025-2, or (ii) owners of one-half or more of the area of land in CFD 2025-2 and not exempt from the levy of the special tax; and

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WHEREAS, Annexation Map No. 1 to CFD 2025-2 has been filed with the county recorder of the County of Kings, which map shows the Territory to be annexed to the CFD in these proceedings, and a copy thereof is on file with the city clerk.

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

Section 1. Recitals Correct. The above recitals are true and correct and made a part hereof.

Section 2. Validity and Conformity. All prior proceedings taken by this council, with respect to CFD 2025-2 and the proposed annexation of the Territory thereto, have been duly considered and are hereby determined to be valid and in conformity with the Act.

Section 3. Services. This council determines that the project proposed for the Territory will intensify the use of the property, creating a need for more Services under CFD 2025-2. The Services that CFD 2025-2 is authorized to finance are in addition to those provided in or required for the territory within CFD 2025-2 and will not replace existing services.

Section 4. Boundaries of the District. The description and map of the boundaries of the Territory, as described in said Annexation No. 1 to the CFD, on file with the city clerk, are hereby finally approved, are incorporated herein by reference, and shall be included within the boundaries of CFD 2025-2, and said Territory is hereby ordered annexed to CFD 2025-2, subject to voter approval of the levy of the special taxes therein as hereinafter provided.

Section 5. Resolution of Intention. The provisions of the Resolution of Intention, which this council has heretofore adopted, are by this reference incorporated herein, as if fully set forth herein.

Section 6. Special Tax. It is the intention of this council that, except where funds are otherwise available to pay for the Services, a special tax, secured by recordation of a continuing lien against all non-exempt real property in the Territory, will be levied annually within the boundaries of the Territory from and after the annexation of the Territory to CFD 2025-2. The special taxes shall be those as originally authorized through the formation of CFD 2025-2 and adopted by ordinance of the legislative body of CFD 2025-2. For particulars, reference is hereby made to the Rate and Method. The special tax is hereby authorized, subject to approval by two- thirds of the votes cast within the Territory, commencing with fiscal year (FY) 2026-2027, in accordance with the Rate and Method, and procedures of the Act within the boundaries of the Territory to pay for the costs of the Services, including incidental expenses.

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Territory and that the vote shall be by said landowners, each having one vote for each acre or each portion thereof such landowner owns in the Territory.

Section 10. Election. This council calls a special election to consider the measure described in the ballot referred to in Section 11 below, which election will be held on October 21, 2025, (Election Day) in the regular meeting place of the council, at the Hanford Civic Auditorium, located at 400 North Douty Street, Hanford, California.

Section 12. Ballots Accepted. The city clerk has accepted the ballots of the qualified electors received prior to 7:00 p.m. on Election Day, whether received by mail or by personal delivery.

PASSED, ADOPTED AND APPROVED by the City Council of the City of Hanford at a regular meeting being held on October 21, 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Travis Paden
MAYOR of the City of Hanford

ATTEST:

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Natalie Corral
City Clerk

State of California )
County of Kings ) ss
City of Hanford )

Date: City Clerk _____________________

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Exhibit A
Community Facilities District No. 2025-2
(Public Maintenance Services)
Annexation Map No. 1
Boundary Map

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Exhibit B

City of Hanford
Community Facilities District No. 2025-2
(Public Maintenance Services)
Annexation No. 1

OFFICIAL BALLOT

SPECIAL TAX ANNEXATION ELECTION

This ballot is for the special landowner election. You must return this ballot, signed, in the enclosed envelope to the office of the City Clerk of the City of Hanford no later than 7:00 p.m. on October 21, 2025, either by mail or in person. The City Clerk’s office is located at 319 North Douty Street, Hanford, California, 93230.

To vote, mark in the voting square after the word “YES” or after the word “NO”.

For a list of acceptable marks, please refer to the back of this ballot.

If you wrongly mark, tear, or deface this ballot, return to the City Clerk of the City of Hanford and obtain another.

BALLOT MEASURE: Shall the City of Hanford, by and for
its Community Facilities District No. 2025-2 (Public
Maintenance Services) (the “CFD”), be authorized to levy special taxes within the territory annexed to the CFD
pursuant to and as described in the rate and method of
apportionment (“RMA”) attached hereto as Exhibit A and
incorporated herein and as also set forth in the Resolution of Intention of the City of Hanford adopted by its Council on September 16, 2025?

YES:

NO:

Acres Owned Within Territory Annexed: 11.81

Number of Votes: 12

D R Horton CA3 Inc.
419 West Murray Avenue
Visalia, CA 93291

Property Owner/Authorized Representative Signature: ________________________

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RESOLUTION NO. 2025-60-R

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD DECLARING THE

RESULTS OF A SPECIAL ANNEXATION ELECTION IN TERRITORY ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2025-2 (PUBLIC MAINTENANCE SERVICES)

DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS, AND DIRECTING

RECORDING OF AMENDED NOTICE OF SPECIAL TAX LIEN FOR CITY OF HANFORD COMMUNITY FACILITIES DISTRICT NO. 2025-2 (PUBLIC MAINTENANCE SERVICES) ANNEXATION NO. 1 (STONEHAVEN SUBDIVISION)

WHEREAS, in proceedings heretofore conducted by the CITY COUNCIL of the CITY OF HANFORD, CALIFORNIA (the “City Council”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code) (the “Act”), this council has heretofore adopted a resolution calling a special election of the qualified landowner electors in the territory of land annexed to Community Facilities District No. 2025-2 (Public Maintenance Services) (“CFD 2025-2”); and

WHEREAS, pursuant to the terms of the resolution, which is hereby incorporated herein by this reference, the special election has been held, and the city clerk has filed a Canvass and Statement of Results of Election (the “Canvass”), a copy of which is attached hereto as Exhibit A; and

WHEREAS, this council has reviewed the Canvass and hereby approves it.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF HANFORD HEREBY RESOLVES:

Section 1. Recitals Correct. The above recitals are true and correct and made a part hereof.

Section 2. Issue Presented. The issue presented at the special election was the levy of a special tax within the territory annexed to CFD 2025-2, to be levied in accordance with the Rate and Method of Apportionment heretofore approved by this council as described in Resolution No. 2025-59-R, a “Resolution of the City Council of the City of Hanford Annexing Territory (Stonehaven Subdivision) to Community Facilities District No. 2025-2 (Public Maintenance Services) as Annexation No. 1, Authorizing the Levy of a Special Tax Within the Annexed Territory, and Submitting the Levy of a Special Tax to the Qualified Electors Thereof,” adopted October 21, 2025.

Section 3. Ballot Measure Approved. Pursuant to the Canvass on file with the city clerk, the issue presented at the special election was approved by the landowners of the territory annexed to CFD 2025-2 by more than two-thirds of the landowners voting at the special election.

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Section 4. Special Taxes. Pursuant to the voter approval, this council may levy special taxes within the territory annexed to CFD 2025-2 pursuant to Resolution No. 2025- 59-R, adopted October 21, 2025, as heretofore provided in these proceedings.

PASSED, ADOPTED AND APPROVED on this 21st day of October, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Travis Paden
MAYOR of the City of Hanford

ATTEST:

Natalie Corral
City Clerk

State of California )
County of Kings ) ss
City of Hanford )

Date: City Clerk _____________________

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Exhibit A

CITY OF HANFORD
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(PUBLIC MAINTENANCE SERVICES)
ANNEXATION NO. 1

CERTIFICATE OF THE CITY CLERK AS TO THE

RESULTS OF THE CANVASS OF THE ELECTION RETURNS

I, Natalie Corral, City Clerk of the City of Hanford, hereby certify that I canvassed the returns of the Special Election in the City of Hanford Community Facilities District No. 2025-2 (Public Maintenance Services) Annexation No. 1, and that the election was held in the Hanford Civic Auditorium of the City Council at 400 North Douty Street, Hanford, California 93230 on October 21, 2025.

I further certify that the total number of ballots cast in said election and the total number of votes cast for and against the measure are full, true and correct:

Ballot Measure
Qualified
Eligible
Votes
Votes
Cast Yes No
Shall the City of Hanford, by and for its
Community Facilities District No. 2025-2
(Public Maintenance Services) (the “CFD”),
be authorized to levy special taxes within the
territory annexed to the CFD pursuant to and
as described in the rate and method of
apportionment (“RMA”) attached hereto as
Exhibit A and incorporated herein and as also
set forth in the Resolution of Intention of the
City of Hanford adopted by its Council on
September 16, 2025?
12 IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 21st day of OCTOBER, 2025.

By: __________________________
Natalie Corral
City Clerk
City of Hanford

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13.C.

AGENDA

STAFF REPORT

MEETING DATE: 10/21/2025 AGENDA SECTION: PUBLIC HEARING

SUBJECT:

Public Hearing to receive comments on the proposed Zone Text Amendment No. 2025-13, a request to amend Table 17.08.030 Commercial, Office, and Industrial Use Table and 17.96.020 Land use definitions in order to allow Banks or Credit Unions in the C-N, C-R, MX-D, MX-C and MX-N Zones and Introduction of Ordinance 2025-10, approving the zone text amendment.

RECOMMENDATION:

Recommendation: Introduce and waive the first reading of Ordinance No. 2025-10, approving Zone Text Amendment 2025-13.

Recommended Motion: I move to introduce and waive the first reading of Ordinance No. 2025-10, approving Zone Text Amendment 2025-13.

BACKGROUND:

City staff have evaluated the need to amend the Hanford Municipal Code to address limitations on where banks and credit unions may establish branches. Under the current regulations, the main branch of a bank or credit union must be located within the MX-D (Downtown Mixed Use) zoning district, while secondary branches are permitted within the C-N (Neighborhood Commercial), MX-D, MX-C (Corridor Mixed Use), and MX-N (Neighborhood Mixed Use) zoning districts.

This restriction has created challenges due to the limited availability of suitable sites within the MX-D zone, which has constrained the ability of banks to locate and serve the community effectively. The lack of available sites has limited opportunities to provide banking services to residents and businesses in areas outside the downtown core.

To address this issue, staff are proposing an amendment to the Municipal Code that would allow all banks and credit unions to locate in the C-N, C-R (Regional Commercial), MX-D, MX-C, and MX-N zoning districts. Expanding the list of permitted zones would significantly increase the number of viable locations for banks in the community.

This change would support economic development policies in the Hanford General Plan by encouraging investment in business growth, while still maintaining the intent of the City’s zoning framework.

Applicable General Plan policies that support the change include:

Policy E5 Business Growth and Retention Program

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Develop and support a business growth and retention program that promotes, encourages, and assists existing businesses in Hanford.

Policy E11 Business-Friendly City
Strengthen the reputation of Hanford’s city government as one that is service-oriented and business friendly.

The Hanford Planning Commission has recommended the approval of the zone text amendment.

In taking action on a Zone Text Amendment, the City Council must make the appropriate findings, in accordance with the Hanford Municipal Code:

1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title;

ANALYSIS: That according to General Plan Policy E5 and E11, the City of Hanford shall support business growth and retention. The revision of the Hanford Municipal Code is consistent with the policies of the General Plan, as it continues support business growth.

2. The amendment would not be detrimental to the public health, safety, or welfare of the community;

ANALYSIS: That the revision of the Hanford Municipal Code is not detrimental to the public health, safety, or welfare of the community.

3. The amendment would maintain the appropriate balance of land uses within the City;

ANALYSIS: That the amendment will maintain the appropriate balance of land uses within the City of Hanford. The zone text amendment would expand opportunities for banks to locate in additional commercial zones.

4. The anticipated land uses on the subject site would be compatible with existing and future surrounding uses;

ANALYSIS: That the zone text amendment would be compatible with existing and future surrounding uses as the proposed zones are compatible with bank uses.

FISCAL IMPACT:

No impact

ATTACHMENTS:

1. Proposed Bank Ordinance

2. Ordinance 25-10

3. Notice of Exemption

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Table 17.08.030
Commercial, Office, and Industrial Use Table
Land
Uses
Service uses C-
N
C-
R
C-
S
C-
H
MX-
N
MX-
C
MX-
D
O-
R O
I-
L
I-

H AP PF CO

J2 Bank or credit union, main
branch
P P

P P P

J3 Bank or credit union,
secondary branch
P

P P P

17.96.020 Land use definitions.

The following land use definitions apply to this title. The item number in parenthesis at the end of the definition is not a part of the definition, but refers to the line item of that land use in Table 17.18.020 and Table 17.18.030.
"Bank or credit union , main branch" means an institution providing retail banking services that is the main branch in the City. This classification includes only those institutions engaged in the on-site circulation of money, including credit unions, but excluding a payday lender or check-cashing establishment. For administration, headquarters, or other offices of banks and credit unions without retail banking services with on-site circulation of money see Office, professional or commercial. (J2) "Bank or credit union, secondary branch" means an institution providing retail banking services that is a secondary or satellite branch in the City and either does not provide loan officers on site or only provides merchant bank services. This classification includes only those institutions engaged in the on- site circulation of money, including credit unions, but excluding a payday lender or check-cashing establishment. For administration, headquarters, or other offices of banks and credit unions without retail banking services with on-site circulation of money see Office, professional or commercial. (J3)

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ORDINANCE NO. 25-10

AN ORDINANCE APPROVING ZONE TEXT AMENDMENT NO. 2025-13, A REQUEST BY THE CITY OF HANFORD TO APPROVE ZONE TEXT AMENDMENT NO. 2025-13 AND AMEND TABLE 17.08.030 COMMERCIAL, OFFICE, AND INDUSTRIAL USE TABLE AND

17.96.020 LAND USE DEFINITIONS IN ORDER TO ALLOW BANKS OR CREDIT UNIONS IN

THE C-N, C-R, MX-D, MX-C AND MX-N ZONES

The City Council of the City of Hanford does ordain as follows:

SECTION 1: The Hanford Municipal Code Title 17, the Zoning Ordinance contains regulations to ensure the public health, safety, peace, comfort, convenience, prosperity and general welfare of the citizens of Hanford, including zoning categories, allowed uses and development standards.

SECTION 2: The City Council has held a public hearing on the amendment to Title 17, Table 17.08.030 and 17.96.020 Bank or Credit Union Definition: a request by the City of Hanford to amend Title 17, Table

17.08.030 and Section 17.96.020 updating Table 17.08.030 to allow banks and credit unions in additional zones, removing requirements for first branches of banks and credit unions to be located in the MX-D zone, and revising the definition of “Bank or credit union” to create a single category definition.

SECTION 3: The City Council finds that the adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to the following section of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3.

a) The ordinance is exempt under Section 15061(b) (3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

SECTION 4: The proposed amendment was evaluated for consistency with the General Plan and the Zoning Ordinance in accordance with Sections 17.86.030 and based on the following findings:

1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title;

2. The amendment would not be detrimental to the public health, safety, or welfare of the community;

ANALYSIS: That the revision of the Hanford Municipal Code is not detrimental to the public health, safety, or welfare of the community.

3. The amendment would maintain the appropriate balance of land uses within the City;

4. The anticipated land uses on the subject site would be compatible with existing and future surrounding uses;

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ANALYSIS: That the zone text amendment would be compatible with existing and future surrounding uses as the proposed zones are compatible with bank uses.

SECTION 5: The City Council of the City of Hanford does ordain that Title 17 is hereby amended, as shown in Exhibit A.

SECTION 6: That the ordinance shall take effect thirty (30) days after its passage, and shall be published once in the Hanford Sentinel within fifteen (15) days after its passage or a summary of this ordinance shall be published in the Hanford Sentinel in a manner consistent with the requirements of the California Government Code.

Passed and adopted at a regular meeting of the City Council of the City of Hanford duly called and held on October 21, 2025, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED

____________________________
Travis Paden
MAYOR of the City of Hanford

ATTEST:

________________________
Natalie Corral

CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF KINGS ) ss

CITY OF HANFORD )

I, NATALIE CORRAL, City Clerk of the City of Hanford, do hereby certify the foregoing ordinance was duly introduced at a regular meeting of the City Council of the City of Hanford on the 21 st day of October, 2025, and it was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the ____ day of ____, 2025.

NATALIE CORRAL

CITY CLERK

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Notice of Exemption 2025-XX

To: Office of Planning and Research
P.O. Box 3044, Room 212
Sacramento, CA 95812-3044

County Clerk
County of Kings
Kings County Government Center
Hanford, CA 93230

From: City of Hanford
317 North Douty Street
Hanford, CA 93230

Project Title: Zone Text Amendment No. 2024-01

Project Location – City of Hanford

Project Location – City: Hanford Project Location – County: Kings County

Description of Nature, Purpose and Beneficiaries of Project: Zone Text Amendment No. 2025-13, a request to amend:

Table 17.08.030 Commercial, Office, and Industrial Use Table and 17.96.020 Land use definitions in order to allow Banks or Credit Unions in the C-N, C-R, MX-D, MX-C and MX-N Zones.

Name of Public Agency Approving Project: City of Hanford, Planning Division

Name of Person or Agency Carrying Out Project: City of Hanford

Exempt Status: (check one)

Ministerial (Sec. 21080(b)(1); 152698);
Declared Emergency (Sec. 21080(b)(3); 15269 (a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption: State type and section number:

Statutory Exemption. State code number: 15061(b)(3) General Rule

Reasons why project is exempt:

The proposed ordinance is exempt under Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed project is a text amendment that is not associated with a physical development; therefore, there are no physical impacts that will result from the project.

Lead Agency
Contact Person: Jason Waters Area Code/ Telephone: (559) 585-2590

Signature: Date: September 23, 2025 Title: Deputy City Manager

Signed by Lead Agency Date received for filing at OPR:

Signed by Applicant

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14.A.

AGENDA

STAFF REPORT

MEETING DATE: 10/21/2025 AGENDA SECTION: GENERAL BUSINESS

SUBJECT:

Consider approval of an updated City Attorney Legal Services Contract with Griswold, LaSalle, Cobb, Dowd & Gin, L.L.P. and the City of Hanford and authorize the Mayor to execute an updated agreement for a flat monthly fee of $52,000

RECOMMENDATION:

Recommendation:Consider approval of an updated City Attorney Legal Services Agreement with Griswold, LaSalle, Cobb, Dowd & Gin, L.L.P. and the City of Hanford and authorize the Mayor to execute an updated agreement for a monthly flat fee of $52,000 for "City Attorney Basic Services."

Recommended Motion: I move to approve the updated City Attorney Legal Services Agreement with Griswold, LaSalle, Cobb, Dowd & Gin, L.L.P. and the City of Hanford, which is attached to the staff report, and authorize the Mayor to execute the updated agreement for a monthly flat fee of $52,000 for "City Attorney Basic Services."
BACKGROUND:

The firm Griswold LaSalle Cobb Dowd & Gin LLP (Griswold LaSalle) has provided legal services as City Attorney under contract with the City of Hanford since 2007 (starting as special counsel in 2006).

The current agreement was last updated in 2011. In early 2022, the City issued a Request for Proposal (RFP). In May 2022, the City Council received eight proposals, but the Council elected to forego interviews and to continue under Griswold LaSalle's existing contract. In March 2025, City Council requested an item for discussion of Griswold LaSalle's services and on June 17, 2025, after a presentation in open session, the City Council by consensus directed that staff negotiate an updated agreement with Griswold LaSalle. This item is now being brought back to City Council based on that direction.

Based on the direction of City Council at the June 17, 2025 meeting, Staff is recommending approval of this updated agreement for a variety of reasons, including the following:

1) The institutional knowledge of City operations and history Griswold, LaSalle brings to the table.

With over 18 years of experience with the City of Hanford and based in Hanford, their local presence and city knowledge brings value.
2) Griswold LaSalle has vast knowledge of public agency law as it represents nine Valley cities and many other local agencies.
3) Recurring training the firm provides including ethical training, management training, and training on new laws as they become effective, etc.
4) $52,000 monthly flat fee is $624,000 annually, which is within the current established budget for

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legal services within the proposed "City Attorney Basic Services", this offers a predictable budgetary figure for the City.
5) Proposed flat fee for "City Attorney Basic Services" and the hourly rates for "City Attorney Special Services" are agreed to until June 30, 2027, which shows commitment to reasonable rates. 6) Griswold LaSalle is a full-service firm able to handle the City's legal service needs, including litigation and personnel if needed.

The updated agreement includes:

A. City Attorney Basic Services: Includes general services in section 2A of the proposed agreement B. City Attorney Special Services: May include services in section 2B of the proposed agreement, including but not limited to Right of Way Agent services, Pre-Litigation/Litigation services, and personnel matter services.

C. No termination date, but may terminate with 30 days notice and a 4/5th vote of City Council

Currently, the City contracts with Liebert Cassidy Whitmore (LCW) for personnel matter services, including labor negotiations. The City may contract with other firms for services in 2B, on a project- by-project basis or issue a Request for Proposals for more specialized services such as litigation work.

If approved, staff will proceed with execution and filing of the Agreement. The City Manager will provide administration and performance review of the City Attorney services and any other action as directed by the City Council.

FISCAL IMPACT:

Based on the existing budget for City Attorney services, a monthly flat fee of $52,000 will be paid through the period of June 30, 2027. Thereafter, the monthly flat fee will be based on the budget as approved by City Council. Services provided outside the general scope of services (included in the flat fee) will be billed to the City at rates as established in the agreement and as updated beginning July 1, 2027.

ATTACHMENTS:

1. 2025.10.09 Griswold Version City Atty Contract (redline-clean)

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Page 1 of 11 ends

CITY ATTORNEY LEGAL SERVICES AGREEMENT

This City Attorney Legal Services Agreement (“Agreement”) is entered into by and between Griswold, LaSalle, Cobb, Dowd & Gin LLP (“Firm”) and the City of Hanford (“City”).

RECITALS
A. The City desires to retain Firm as the City Attorney; and B. Firm has the legal competence, experience, and qualifications to provide professional legal services required by City; now therefore:

AGREEMENT

1. Incorporation of Recitals . The recitals set forth above are incorporated herein by this reference.

2. Scope of Services. Firm agrees to perform basic legal services for City and to do so in a timely, efficient, competent, and effective manner. Firm shall provide advice, consultation, and representation in all matters of municipal affairs listed in this scope of services. It shall be the duty, obligation, and responsibility of Firm, in a skilled and professional manner, to perform legal services as requested by City. Firm shall provide all legal services in a competent manner as required by the Rules of Prof essional Conduct of the State Bar of California.

(a) City Attorney Basic Services Defined. City hires Firm to provide "City Attorney Basic Services" as defined herein below to the City. Firm shall be the exclusive provider of the City Attorney Basic Services as described herein. The services provided shall include:

(i) Attend all regular meetings, and special meetings as needed, of the City Council and the City Planning Commission. The attorney's duties in this connection shall be to render advice and opinions with respect to all legal matters which arise during any such meeting.
(ii) Consult with and provide legal advice, written updates, including written opinions where appropriate, to Council members and designated City staff on all matters, as needed, including but not limited to: review and interpretation of City Municipal Code, state General Law or federal laws or regulations as they relate to City activities; response and recommendations related to public records act requests; the processing of public works contract bids and related matters; and assistance with environmental review activities of the City, including application and interpretation of the California Environmental Quality Act (CEQA) to City projects and, when requested, private development projects. (iii) Attend meetings of other boards, commissions, committees, and staff of the City, when requested to do so by the City Council or the City Manager.

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Page 2 of 11 ends

(iv) Review and/or prepare ordinances, resolutions, orders, contracts, agreements, forms, notices, declarations, certificates, deeds, leases, and other legal documents required by the City.
(v) Conduct legal work pertaining to property acquisition, property disposal, public improvements, public rights of way and easements, and matters relating to public utilities; activities related to the negotiations for the acquisition or disposition of real property shall not be included within this scope of work. (vi) General City Property: Serving as the City’s Right of Way Agent for non - Capital Improvement Project matters, including, but not limited to, negotiations for the acquisition or disposition of Real Estate or Right of Way interests. (vii) Sustainable Groundwater Management Act ( SGMA)/Water Rights/Groundwater Fees.

(b) City Attorney Special Services. The following activities shall not be considered City Attorney Basic Services. The Firm shall perform “City Attorney Special Services” at the request of the City or, alternatively, shall receive written approval from the City Manager prior to the commencement of City Attorney Special Services.

(i) Capital Improvement Projects: Serving as the City’s Right of Way Agent , including, but not limited to , negotiations for the acquisition or disposition of Real Estate or Right of Way interests.
(ii) Pre-litigation work involving the anticipated prosecution or defense of civil or administrative actions. Such work includes, without limitation, assessment and formulation of de fense regarding claims filed against City pursuant to the California Government Claims Act, work performed in anticipation of civil or administrative actions pursued on the City’s behalf, and work performed in preparation for quasi-judicial administrative proceedings (e.g., appeal hearings occurring under the City Municipal Code) . Any new claims against the City received by City Attorney shall be forwarded directly to the City Manager and Risk Personnel for review and assignment if applicable; no work or research shall be conducted until assigned.
(iii) Litigation, which is defined as: any matter involving actions filed on behalf of or against the City in the state or federal court system, and any matter involving a quasi -judicial administrative proceeding. Such work includes, without limitation, pursuit of Code Enforcement abatement warrants, pursuit or defense of restraining orders, and representation of the City at administrative appeal hearings occurring under the City Municipal Code.
(iii) Manage and coordinate the work of all litigation counsel as directed by the City Council and City Manager or required by Excess General Liability Pool, including review, updates, budget estimates and tracking of litigation counsel billing statements before presentment to the City for payment. (iv) Consultation with the City Manager or the City Human Resource Manager regarding personnel matters.

3. Compensation.

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(a) City agrees to pay Firm FIFTY-TWO THOUSAND DOLLARS ($ 52,000.00) per month for the provision for City Attorney Basic Services, for the period beginning October 26, 2025 through June 30, 2027. For the period after June 30, 2027, the compensation payable for City Attorney Basic Services will be established by the Hanford City Council when the Council adopts or amends the City’s budget.

(b) City agrees to pay Firm per hour of attorney time and per hour for non-attorney time as stated in Exhibit “A” for City Attorney Special Services. For the period after June 30, 2027, the billing rate s for attorney and non- attorney time for City Attorney Special Services shall be established through schedules approved by the City Manager.

(c) All general office overhead, including copying, facsimile, postage, local courier, telephone charges, library, software services (excluding online database fees incurred by the Firm for legal research performed for the City), insurance and administrative costs, and local mileage charges, but excluding travel more than 25 miles from Hanford, shall be included at no cost within the City Attorney Basic Services. Firm will charge out-of-pocket expenses associated with City Attorney Special Services (e.g., filing, expert witnesses and consultants, court reporters , service of process, and copying of documents), and travel expenses related to out-of-town City-related business.

(d) Firm will bill the City on a monthly basis with itemization and detail sufficient to meet City's accounting needs. Firm and City will specify detail necessary for accounting purposes prior to the commencement of legal services pursuant to this agreement . Firm will provide one set of bills for payment per month but may request payment of such bills through up to two separate payments. Billing shall be accounted for in one -tenth hour increments.

(e) City will pay all bills as required by this Agreement within THIRTY (30) days of receipt. If the City does not comply with these requirements, Firm may terminate this Agreement upon written notice to the City.

4. Assignment of Personnel. General Counsel under this Agreement shall be Ty N. Mizote.

(a) City, by and through its City Council, does hereby appoint Ty N. Mizote as City Attorney. The Firm and Mr. Mizote shall serve solely at the pleasure of the City Council.

The appointment of Mr. Mizote as City Attorney shall remain in effect during the term of this Agreement. As may be required, Mario Zamora shall serve as the City’s Assistant City Attorney in the event of Mr. Mizote ’s absence. The City Council may terminate the appointment, with or without cause.

(b) It is understood that other attorneys employed by Firm will be utilized regularly, and from time to time, to satisfy the Firm’s obligations hereunder. The City Attorney shall not miss two or more consecutive meetings of the City Council without prior approval of the City Manager.

5. Term and Termination.

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5.1. This Agreement shall be effective October 26, 2025, subject to approval by the City Council at a duly scheduled meeting there after and shall continue in full force and effect unless otherwise terminated earlier by one of the parties. Firm may be contacted following termination of the Agreement for clarification and consultation on matters covered during performance of the scope of se rvices. Any additional legal services rendered as a result of such contact will be billed in accordance this Agreement.

5.2. City reserves the right to discharge Firm and terminate this Agreement at any time. Termination of this agreement requires a super majority (4/5 th) vote by City Council.

In the event of such discharge or termination, the City shall compensate Firm for services rendered and expenses incurred up to and including the date of termination. City shall terminate services and/or the Agreement by delivering to Firm a written notice specifying the extent to which services and/or the Agreement are terminated and the effective date of the termination. Notice of termination shall be mailed or emailed as follows:

Griswold, LaSalle, Cobb, Dowd & Gin LLP
Attn: Mario U. Zamora
[email protected]
111 E. 7th St.

Hanford, CA 93230

5.3. Firm may terminate this Agreement at any time by giving City not less than thirty (30) days prior written notice. If Firm elects to terminate this Agreement, Firm shall take reasonable steps to avoid reasonably foreseeable prejudice to City’s rights which may arise from Firm’s services hereunder, as required by the Rules of Professional Conduct of the State Bar of California. Notice of Termination shall be mailed or emailed as follows:

City of Hanford
Attn: City Manager
319 N. Douty
Hanford, CA 93230

Upon receipt of a termination notice, Firm shall (1) promptly discontinue all services affected (unless the notice directs otherwise) and (2) deliver to the City all records, reports, and files of the City in accordance with the Rules of Professional Conduct of the State Bar of California.

6. Performance Review

(a) Annual Performance Review. On or about April 1st each year during the term of this Agreement, the City Council shall audit and review the performance and legal fees of Firm and its members or associates in furnishing the services provided hereunder, and the compensation provisions hereof. The parties may agree to changes or amendments hereto, including, but not necessarily limited to, changes in compensation provisions, which changes or amendments shall be evidenced by written amendment or by minute order evidencing motion duly

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made and carried by the City Council. Nothing in this paragraph shall be deemed to prevent or inhibit more frequent review of performance, compensation, or other matters relating to this Agreement or otherwise inhibit the free and candid exchange of views between the parties hereto, to the end that the legal interests of City shall best be served and Firm shall fairly be compensated for legal services rendered.

(b) Compensation and Scope Review. It is understood that the compensation provision of this Agreement is based on the current workload assigned by the City to the Firm. In the event that significantly more or less work is required to adequately perform the indicated Scope of Services, the parties agree to confer annually on or about April 1
st before the period starting July 1, 2027 (and every
July 1 thereafter), regarding increase or decrease in either the Scope of Services, the compensation provisions of this Agreement, or both.

7. Assignment of Agreement
Firm shall not assign or transfer any interest in, nor delegate any duties thereof in this Agreement. Any assignment or delegation without express written consent of the City shall be void.

8. Insurance and Indemnification.

7.1. During the term of this Agreement, Firm shall maintain and pay all premiums required to keep in force policies satisfy ing the insurance requirements identified in the attached Exhibit “B,” which is incorporated herein by reference.

7.2. To the furthest extent allowed by law, Firm shall indemnify, hold harmless, and defend City and each of its officers, officials, employees, agents, and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs, and damages (whether in contract, tort, or strict liability, including but not limited to personal injury, death at any time, and property damage), and from any and all claims, demands, and actions in law or equity (including reasonable attorneys’ fees and litigation expe nses) that arise out of, pertain to, or related to the negligence, recklessness, or willful misconduct of Firm, its principals, officers, agents, and employees in the performance of this Agreement. The obligations under this paragraph are in addition to and are not limited by any insurance which Firm is otherwise required to maintain under this Agreement. This duty to indemnify, defend, and hold harmless shall survive the termination of this Agreement.

9. Independent Contractor. In performance of the work, duties and obligations assumed by Firm under this Agreement, it is mutually understood and agreed that Firm, including any and all of Firm’s principals, officers, agents, and employees, will, at all times, be acting and performing as an independent contractor, and shall act in an independent capacity and not as servant, employees, agent, partner, or associate of City. Because of its status as an independent contractor, Firm and its employees shall absolutely have no right to employment rights and benefits available to City employees. Firm shall be solely liable and responsible for providing to, or on behalf of, its employees all legally- required employee benefits. In addition, Firm shall be solely responsible and hold City harmles s

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from all matters related to payment of Firm’s employees, including compliance with social security, withholding, and all other regulations governing such affairs.

10. Compliance with Law. Firm shall comply with all applicable Federal, State, and local laws, rules, regulations, ordinances, and directives. In particular, Firm shall comply with all Rules of Professional Conduct of the State Bar of California, confidentiality laws and regulations, and conflict of interest laws and regulations.

11. Miscellaneous.

11.1. Consent. Whenever in this Agreement the approval or consent of a party is required, such approval or consent shall be in writing and shall be executed by a person having the express authority to grant such approval or consent.

11.2. Governing Law. The parties agree that this Agreement shall be governed and construed by and in accordance with the laws of the State of California.

11.3. Required License and Professional Credentials. Firm and personnel providing legal services shall maintain all licenses and professional credentials necessary for the provision of such services. Firm shall promptly notify City of changes of status or events that might impact the provision of legal services to City.

11.4. Force Majeure. Neither party shall be deemed to be in default on account of any delay or failure to perform its obligations under this Agreement, which directly results from an Act of God or an act of a superior governmental authority.

11.5. Headings. The paragraph headings are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part of this Agreement.

11.6. Incorporation of Documents . All documents constituting the Agreement documents described in Section hereof and all documents which may, from time to time, be referred to in any duly executed amendment hereto are by such reference incorporated in the Agreement and shall be deemed to be part of this Agreement.

11.7. Integration. This Agreement and any amendments hereto between the parties constitute the entire Agreement between the parties. There are no other prior oral or written agreements between the parties that are not incorporated in this Agreement.

11.8. Modification of Agreement . This Agreement shall not be modified or be binding upon the parties unless such modification is agreed to in writing and signed by the parties.

11.9. Provision. Any agreement, covenant, condition, clause, qualification, restriction, reservation, term, or other stipulation in the agreement shall define or otherwise control, establish or limit the performance required or permitted or to be required of or permitted by either party. All provisions, whether covenants or conditions, shall be deemed to be both covenants and conditions.

11.10. Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the provisions of this Agreement not so affected shall remain in full force and effect.

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11.11. Venu e. In the event that suit is brought by either party hereunder, the parties agree that trial of such action shall be venued exclusively in the state courts of California in the County of Kings or in the United States District Court for the Eastern District of California.

11.12. Recovery of Costs. The prevailing party in any action brought to enforce the terms of this Agreement or arising out of this Agreement may recover its reasonable costs, including reasonable attorneys’ fees incurred or expended in connection with such action against the non-prevailing party.

11.13. Equal Opportunity Employment . Firm represents that it is an equal opportunity employer and it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age.

Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Firm shall also comply with all relevant provision s of City’s programs or guidelines currently in effect as identified and provided to Firm by City.

12. Signatures. The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of Firm and City.

Griswold, LaSalle, Cobb, Dowd & Gin
LLP

Mario U. Zamora
Date: __________________________

City Of Hanford

Travis Paden, Mayor
Date: __________________________

ATTEST

Natalie Corral, City Clerk

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Exhibit “A”
Billing rates

RMD $350
JLL $325
RLC $325
TNM $305
MRJ $295
MUZ $280
RSM $270
MNC $250
CDS $245
LVS $235
NMM $220
MCE $210
AMB $210
Legal Analyst $185
Summer Clerk $165
Paralegal II $165
Paralegal I $155
Legal Assistant $90
File Clerks $60

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Exhibit “B”

a. Firm, at Firm’s own cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies.

i. Workers Compensation Coverage. As required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than ONE MILLION AND NO/100 DOLLARS ($1,000,000) per accident for bodily injury or disease.

ii. Commercial General Liability (CGL) Coverage. Insurance Services Office (ISO) Form CG 0001, including products and completed operations, property damage, bodily injury, and personal & advertising injury with a limit of no less than TWO MILLION AND NO/100 DOLLARS ($2,000,000) per occurrence for bodi ly injury, personal injury, and property damage, and a general aggregate limit of no less than FOUR MILLION AND NO/100 DOLLARS ($4,000,000).

iii. Professional Liability Coverage. Firm will maintain Professional Liability coverage with limits no less than TWO MILLION AND NO/100 DOLLARS ($2,000,000) per occurrence or claim, and TWO MILLION AND NO/100 DOLLARS ($2,000,000) policy aggregate.

If Firm maintains higher limits than the minimums shown above, City requires and shall be entitled to coverage for the higher limits maintained by Firm.

Firm’s insurance policies shall be “occurrence” policies and not “claims -made” coverage except for Professional Liability Coverage. “Claims -made” policies must satisfy the following requirements: (i) the retroactive date of coverage must be shown and m ust precede the effective date of the contract; (ii) coverage shall be maintained and evidence of coverage must be provided for at least five (5) years after completion of the contract work; and (iii) if coverage is canceled or non-renewed and not replaced with another claims -made policy form with a retroactive date preceding the contract effective date, Firm must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Firm may use Umbrella or Excess Policies to provide the liability limits as required in this Agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non- contributory, additional insured, deductibles and self-insured retentions, indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying insurance. No insurance policies maintained by any additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until Firm’s primary and excess liability policies are exhausted.

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b. Any deductibles or self-insured retentions must be declared to and approved by the City. City may require Firm to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Alternatively, City may require Firm to provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses within the retention.

c. The policies are to contain, or be endorsed to contain, the following provisions:

i. City and its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Firm including materials, parts, or equipment furnished in connection with such work or operations and products used by Firm. General liability coverage can be provided in the form of an endorsement to Firm’s insurance at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33 or CG 20 38 and CG 20 37 if a later edition is used. The coverage shall contain no special limitations on the scope of protection afforded to City and its officers, officials, employees or volunteers.

ii. For any claims related to this contract, Firm’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to City and its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by City and/or its officers, officials, employees, or volunteers shall be in excess of Firm’s insurance and shall be non-contributory.

iii. Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to City.

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII.

Firm shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Firm’s obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

d. Firm hereby grants to City and its officers, officials, employees, and volunteers a waiver of any right to subrogation which any insurer of Firm may acquire against the City and/or its officers, officials, employees, and volunteers by virtue of the payment of any loss under such insurance. Firm agrees to obtain endorsements necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not City has received a waiver of subrogation endorsement from the insurer.

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14.B.

AGENDA

STAFF REPORT

MEETING DATE: 10/21/2025 AGENDA SECTION: GENERAL BUSINESS

SUBJECT:

Presentation and Discussion of future changes to Council Compensation as allowed under SB329

RECOMMENDATION:

Recommendation: That the City Council receive the presentation and provide direction to staff on any relevant ordinances and/or policies.

BACKGROUND:

Senate Bill 329 (“SB 329”) was signed into law and became effective January 1, 2024. SB 329 amended Section 36516 of the Government Code, allowing for the first city council member pay cap increases in nearly four decades. Pre-SB 329 law authorized a city council to enact an ordinance to provide each member of the city council a salary based upon the population of the city; that amount could be increased by the city council by an amount no more than 5% for each calendar year. The existing compensation schedule had not been increased since 1984, despite inflation. Senate Bill 329 was passed with the belief that it would address a perceived inequity by allowing councils to adjust their maximum pay to reflect inflation as measured by the California Consumer Price Index.

Any increase requires a majority vote of the city council.

The new salary limits are as follows:
• Up to $950 per month for cities up to and including 35,000 in population. • Up to $1,275 per month for cities over 35,000 up to and including 50,000 in population. • Up to $1,600 per month for cities over 50,000 up to and including 75,000 in population. • Up to $1,900 per month for cities over 75,000 up to and including 150,000 in population. • Up to $2,550 per month for cities over 150,000 up to and including 250,000 in population. • Up to $3,200 per month for cities over 250,000 in population.

Table 1: Surrounding cities with like or larger population and council salaries for comparison

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It is noteworthy that Tulare and Porterville are both charter cities, and the charters for those agencies establish council compensation amounts. Tulare's compensation amount was established in 1935 and Porterville's compensation amount was established in 1971. Council compensation amounts in those cities may be modified only by the voters' amendment of their respective city's charter.

The last time an Ordinance was adopted, Ordinance No. 20-08, was August 18, 2020. At that time, the monthly stipend was increased from $400 to $500 and was the first increase of Council Salaries since 1996. In order to determine the population of a city, the statute utilizes the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance.

According to the California Department of Finance the 2024 population of Hanford is approximately 59,286.

Additionally, council member salaries are allowed to be increased beyond the specified maximums.

The increases shall not exceed the greater of the following two conditions:
•The increase cannot exceed 5% for each calendar year from the operative date of the last salary adjustment.
•The increase cannot exceed the amount of inflation since January 1, 2024, based on the California Consumer Price Index. The inflation-based increase is capped at 10% for each calendar year. (Gov.

Code section 36516(a)(4).)

Any amounts paid by a city for retirement, health and welfare, and federal social security benefits and to reimburse a council member for actual and necessary expenses are not included for purposes of determining salary. (Gov. Code section 36516(d) & (e).)

Finally, the bill requires the city council to consider the adoption of an ordinance to increase council member compensation in open session during at least two regular meetings. The proposed ordinance, including findings justifying the need for increased compensation, must be presented at the first meeting. The adoption of the ordinance can take place at the second meeting, which must be held at least seven days after the first meeting. (Gov. Code section 36516(g).)

These provisions went into effect in January 2024. At the time that the changes went into effect, the City Council was focused on the need for a revenue measure and felt that any change to their compensation could be viewed as trying to raise taxes to give themselves a raise.

Gov. Code section 36516.5, which was not amended, states, “A change in compensation does not apply to a council member during the council member’s term of office. This prohibition shall not prevent the adjustment of the compensation of all members of a council serving staggered terms whenever one or more members of the city council becomes eligible for a salary increase by virtue of the council member beginning a new term of office.” For example, if the council adjusts its

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compensation prior to the 2026 election, the modification will not go into effect until the council members elected during that election are seated.

FISCAL IMPACT:

The adoption of an ordinance and corresponding raise to the monthly compensation for each Councilmember, has a potential additional cost to the General Fund of $66,000 per year if raised to the maximum.

ATTACHMENTS:

1. GOVERNMENT CODE Section 36516

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State of California

GOVERNMENT CODE
Section 36516
36516. (a)  (1)  A city council may enact an ordinance providing that each member of the city council shall recei ve a salary based on the population of the city as set forth in paragraph (2).
(2)  The salaries approved by ordinance under paragraph (1) shall be as follows:
(A)  In cities up to and including 35,000 in population, up to and including nine hundred fifty dollars ($950) per month.
(B)  In cities o ver 35,000 up to and including 50,000 in population, up to and including one thousand two hundred seventy-five dollars ($1,275) per month. (C)  In cities o ver 50,000 up to and including 75,000 in population, up to and including one thousand six hundred dollars ($1,600) per month. (D)  In cities o ver 75,000 up to and including 150,000 in population, up to and including one thousand nine hundred dollars ($1,900) per month. (E)  In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month. (F)  In cities o ver 250,000 population, up to and including three thousand tw o hundred dollars ($3,200) per month.
(3)  For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance.
(4)  The salary of council members may be increased beyond the amount provided in this subdi vision by an ordinance or by an amendment to an ordinance, b ut the amount of the increase shall not exceed the greater of either of the following:
(A)  An amount equal to 5 percent for each calendar year from the operati ve date of the last adjustment of the salary in ef fect when the ordinance or amendment is enacted.
(B)  An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year. (5)  No ordinance shall be enacted or amended to provide automatic future increases in salary.
(b)  Notwithstanding subdivision (a), at an y municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors v oting at the election favor it, all of the council members shall recei ve the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.

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(c)  Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in e xcess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority , or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body.
(d)  Any amounts paid by a city for retirement, health and welf are, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees.
(e)  Any amounts paid by a city to reimb urse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section.
(f)  A city council member may waive any or all of the compensation permitted by this section.
(g)  (1)  For the purposes of this section, a city council shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city council.
(2)  At the first meeting, the city council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation.

The ordinance shall not be adopted at the first meeting. (3) At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance.
(Amended by Stats. 2023, Ch. 27, Sec. 2. (SB 329) Effective January 1, 2024.)

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Council Future Agenda Items
Originated
Date Item Originator Staff Lead Date Estimate
9/2025 Presentation by Kings County Farm
Bureau

Council
Direction
Chris Tavarez 11/4/2025
9/3/2025 Presentation and Council direction of
the City’s social media Policy
City Manager Brian Johnson 11/4/2025
9/16/2025 Wastewater Treatment Facility Utilities and
Engineering
Frank
Senteno
11/2025
10/2025 Carnegie Museum Presentation –
Annual Report
City Manager Chris Tavarez 11/4/2025

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Hanford City CouncilOctober 21, 2025

Hanford City Council
October 21, 2025