Hollister City Council
November 17, 2025

CITY OF HOLLISTER

CITY COUNCIL AGENDA

REGULAR MEETING

Monday, November 17, 2025, 5:30 p.m.

City Council Chamber, City Hall
375 Fifth Street, Hollister, CA 95023

Roxanne Stephens, Mayor Jim Pia, Interim City Manager Rudy Picha, Council Member, District 1 Jennifer P. Thompson, City Attorney Rolan Resendiz, Council Member, District 2
Dolores Morales, Council Member, District 3
Priscilla de Anda, Council Member, District 4

Gordon Machado, City Treasurer

As of January 1, 2023, the Levine Act (Government Code Section 84308) applies to City Council proceedings involving a license, permit, or other entitlement for use.

Pursuant to Government Code Section 84308, no Council Member shall accept, solicit, or direct a contribution of more than $500 from any party or their agent, or from any participant or their agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the City or for 12 months after a final decision is rendered in that proceeding. Any Council Member who has received a contribution of more than $500 within the preceding 12 months from a party or their agent, or from a participant or their agent, shall disclose that fact on the record of the proceeding and shall not make, participate in making, or in any way attempt to use their official position to influence the decision.

Pursuant to Government Code Section 84308(d), any party to a covered proceeding before the Council is required, and any participant to such a proceeding is strongly urged, to disclose on the record of the proceeding any contribution, including aggregated contributions, of more than $500 made within the preceding 12 months by them or their agent to any Council Member. The disclosure must include the name of the party or participant and any other person making the contribution, if any; the name of the recipient; the amount of the contribution; and the date the contribution was made.

The disclosure shall occur in the manner required under Government Code Section 84308 and any applicable state or local regulations, opinions, or policies. No party or their agent, and no participant or their agent, shall make a contribution of more than $500 to any Council Member during the proceeding or for 12 months after a final decision is rendered in that proceeding.

The foregoing statements do not constitute legal advice, and parties and participants are urged to consult with their own legal counsel regarding the requirements of the law.

NOTICE TO PUBLIC
Persons who wish to address the City Council are asked to complete a speaker’s card and give it to the City Clerk before addressing the City Council. Those who wish to address the City Council on an agenda item will be heard when the presiding officer calls for comments from the audience. City related items not on the agenda will be heard under the Public Input section of the agenda. Following

recognition, persons desiring to speak are requested to advance to the podium and state their name and address. If you are joining us by Zoom, please click on the bottom of your screen to raise your hand. If you are joining us by Zoom using a cell phone, please press *9. After hearing audience comments, the public portion of the meeting will be closed, and the matter brought to the City Council for discussion.

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)

Requests to make presentations to the City Council should be submitted to the City Clerk’s Office at least ten days before the City Council meeting. It is customary for City staff members to review such matters before the formal presentation so that the City Council may have the benefit of all available data. PowerPoint presentations must be presented to the City Clerk by noon on the day of the City Council meeting.

The public may watch the meeting via live stream at:

City of Hollister Website
https://pub-hollister.escribemeetings.com/

Community Media Access Partnership (CMAP):
http://cmaptv.com/government/

City of Hollister YouTube Channel:
https://www.youtube.com/@cityofhollistercalifornia1489

Public Participation:

The public may attend meetings.

NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Hollister utilizes Zoom teleconferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of the public through this means is at their own risk. (Zoom teleconferencing may not be available at all meetings.)

If you wish to make a public comment remotely during the meeting, please use the zoom registration link below:
https://us02web.zoom.us/webinar/register/WN_MNOr95ZCQrWzERqd5zRuwQ

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 636-4300. Notification of 48 hours prior to the meeting will enable the City to attempt to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II].

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed City of Hollister City Council Meeting

between 12:00 and 1:00 p.m.)

Notice to anyone attending any public meeting: The meeting may be broadcast live on Cable Channel 17 and/or recorded or photographed. Recent City Council meetings may also be viewed at www.CMAP.com and periodically on Cable Channel 17.

To access written translation during the meeting, please click this link:

Para acceder a la traducción durante la reunión, por favor haga clic en el enlace:

https://attend.wordly.ai/join/NLJC-7137
City of Hollister City Council Meeting

1.CALL TO ORDER

2.ROLL CALL

3.CLOSED SESSION

3.1 PUBLIC EMPLOYEE APPOINTMENT/EMPLOYMENT PURSUANT TO
GOVERNMENT CODE SECTION 54957
Title: City Manager

4.PLEDGE OF ALLEGIANCE

5.CLOSED SESSION REPORT

6.SPECIAL ORDERS OF THE DAY

6.1 PRESENT CERTIFICATES OF RECOGITION TO THOSE SERVING THE

HOLLISTER VETERANS COMMUNITY

7.PUBLIC INPUT FOR ITEMS NOT ON THE AGENDA
This is the time for anyone in the audience to speak on any item not on the agenda and within the subject matter jurisdiction of the council. Speaker cards are available in the lobby, and are to be completed and given to the City Clerk before speaking. When the City Clerk calls your name, please come to the podium, state your name and city for the record, and speak to the City Council. If you are joining us by Zoom, please click on the bottom of your screen to raise your hand. If you are joining us by Zoom using a cell phone, please press *9.

Each speaker will be limited to three (3) minutes with a maximum of 30 minutes per subject.

Please note that state law prohibits the City Council from discussing or taking action on any item not on the agenda.

8.CONSENT ITEMS
All items listed under consent agenda will be enacted by one motion authorizing actions indicated for those items so designated. There will be no separate discussion of these items unless requested by a member of the City Council, a staff member, or a member of the public. There will be one public comment period for all items on the Consent Agenda.

8.1 APPROVE NOVEMBER 3, 2025 REGULAR MEETING MINUTES

8.2 WARRANT REGISTER NOVEMBER 17, 2025
RECOMMENDED ACTION:

Ratify and approve the Warrant Registers for the General-Special-Enterprise- Assessments funds.

8.3 A RESOLUTION APPROVING AN AIRPORT USE AGREEMENT WITH WISK AERO

LLC OF MOUNTAIN VIEW, CALIFORNIA TO PLACE AND UTILIZE A

DEPLOYABLE VERTIPORT AT THE HOLLISTER MUNICIPAL AIRPORT RECOMMENDED ACTION:

Adopt a resolution approving an Airport Use Agreement with Wisk Aero LLC of Mountain View, California to place and utilize a deployable vertiport at the Hollister Municipal Airport and authorizing the Interim City Manager to execute the Agreement

8.4 A RESOLUTION APPROVING THE FIRST AMENDMENT OF THE 2016 GROUND City of Hollister City Council Meeting

LEASE WITH WISK AERO LLC OF MOUNTAIN VIEW, CALIFORNIA FOR AN ADDITIONAL 2.8 ACRES AT THE HOLLISTER MUNICIPAL AIRPORT RECOMMENDED ACTION:

Adopt a resolution approving the First Amendment of the 2016 Ground Lease with Wisk Aero LLC of Mountain View, California for an additional 2.8 acres at the Hollister Municipal Airport and authorizing the Interim City Manager to execute the Amendment subject to final review of Article 13 Insurance provisions.

8.5 A RESOLUTION OF INTENTION AND INTRODUCTION OF AN ORDINANCE TO

APPROVE A CONTRACT AMENDMENT WITH THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
RECOMMENDED ACTION:

1. Adopt a Resolution of intention authorizing the City of Hollister to approve an amendment to the contract with CalPERS and authorizing the Mayor to sign.

2. Introduce an ordinance authorizing an amendment to the Contract between the City of Hollister and CalPERS.

8.6 A RESOLUTION AUTHORIZING THE CITY TO PARTNER WITH THE COUNCIL OF

SAN BENITO COUNTY GOVERNMENTS (SBCOG) ON A GRANT APPLICATION

FOR CALTRANS FUNDING
RECOMMENDED ACTION:

Adopt a resolution authorizing the City of Hollister to be a co-sponsor with the Council of San Benito County Governments (SBCOG) on the Caltrans grant application that offers community benefits and budget savings.

8.7 A RESOLUTION APPROVING THE APPROPRIATION OF WELLNESS GRANT

FUNDS FOR THE PURCHASE OF MACHINERY AND EQUIPMENT RELATED TO

OFFICER WELLNESS
RECOMMENDED ACTION:

Adopt a resolution approving a budget appropriation in the amount of $28,000 from Fund 280 Wellness Grant.

9.PUBLIC HEARINGS

9.1 A RESOLUTION APPROVING A JOINT POWERS AGREEMENT WITH

CALIFORNIA MUNICIPAL FINANCING AUTHORITY(CMFA) AND APPROVING

CONDUIT FINANCING FOR THE PROSPECT SENIOR AVENUE, PROSPECT VILLA 1, PROSPECT VILLA II APARTMENTS AFFORDABLE HOUSING PROJECT

THROUGH THE CMFA
RECOMMENDED ACTION:

1. Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the “Code”) in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the “CMFA:”), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $12,000,000, (the “Bonds”) to: (1) finance or refinance the acquisition, rehabilitation, improvement and equipping of the following multifamily rental housing projects: i) Prospect Avenue Senior, located at 190 East Park Street, Hollister, California, consisting of 20 units (Bond proceeds in an amount not to exceed $2,105,000); ii) Prospect Villa I, located at 998 Prospect Avenue, City of Hollister City Council Meeting

Hollister, California, consisting of 14 units (Bond proceeds in an amount not to exceed $1,590,000); and iii) Prospect Villa III, located at 960 Prospect Avenue, Hollister, California (the “City”), consisting of 30 units (Bond proceeds in an amount not to exceed $5,305,000); and (2) pay certain expenses incurred in connection with the issuance of the Bonds; and

2. Adopt the resolution to become a member of the CMFA and to approve the financing of the Project by the CMFA and approving the issuance of the Bonds by the CMFA for the benefit of Hollister Investment Group, LP (the “Borrower”), to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following). The resolution will also authorize the Mayor or designee thereof to execute the Joint Exercise of Powers Agreement with the CMFA.

10.INFORMATIONAL REPORTS
Reports on compensable meetings attended. Brief reports or announcements concerning activities of members of the City Council and staff; opportunity to refer public or Council questions to staff for information; request staff to report to the Council on a matter at a future meeting; or direct staff to place a matter on a future agenda. Items in this category are for discussion and direction to staff only. No final policy action will be taken by the Council.

10.1 COMMITTEE ASSIGNMENTS
Receive oral reports from members regarding the activities of various Ad Hoc and Standing City Council Committees.

10.2 COUNCIL REPORTS
Receive informational reports from the City Council

1.CITY COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS

10.3 CITY MANAGER REPORT

1.UPDATED CITY COUNCIL PROJECTS

11.ADJOURNMENT

12.VERIFICATION OF AGENDA POSTING
The agenda for the City Council of the City of Hollister regular meeting of November 17, 2025, was posted on the bulletin board at City Hall on November 12, 2025, per Government Code Section 54954.2.

City of Hollister City Council Meeting

PUBLIC PARTICIPATION NOTICE
The public may attend meetings in person or watch meetings via live stream at:

City of Hollister Website:
https://hollister.ca.gov/government/agendas___minutes.php

Community Media Access Partnership (CMAP):
http://cmaptv.com/watch/

City of Hollister YouTube Channel:
https://www.youtube.com/@cityofhollistercalifornia1489

NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Hollister utilizes Zoom teleconferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of the public through this means is at their own risk. (Zoom teleconferencing may not be available at all meetings.)

If you wish to make a public comment remotely during the meeting, please use the zoom registration link below:

https://us02web.zoom.us/webinar/register/WN_MNOr95ZCQrWzERqd5zRuwQ

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 636-4300. Notification 48 hours prior to the meeting will enable the City to attempt to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II].

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)

Notice to anyone attending any public meeting: The meeting may be broadcast live on Cable Channel 17 and/or videotaped or photographed. Recent City Council meetings may also be viewed at www.CMAP.com and periodically on Cable Channel 17.

To access written translation during the meeting, please scan the QR Code or click this link | Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace:
https://attend.wordly.ai/join/NLJC-7137
Choose Language and Click Attend | Seleccione su lenguaje y haga clic en asistir

Use a headset on your phone for audio or read the transcript on your device. | Use sus auriculares para escuchar el audio o leer la transcripción en el dispositivo.

1 City Council of the City of Hollister
Minutes of the Regular Meeting

November 3, 2025, 5:30 p.m.

City Council Chamber, City Hall
375 Fifth Street, Hollister, CA 95023

Members Present: Rudy Picha, District 1
Rolan Resendiz, District 2
Dolores Morales, District 3
Priscilla de Anda, District 4

Members Absent: Roxanne Stephens, Mayor
_____________________________________________________________________

1. CALL TO ORDER
Vice Mayor Picha called the regular meeting of the City Council of the City of Hollister to order at 5:30 p.m.

2. ROLL CALL

3. CLOSED SESSION
City Attorney Mary Lerner read the closed session item titles.

3.1 CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9
Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of section 54956.9 of the Government Code (2 cases)

3.2 PUBLIC EMPLOYEE PERFORMANCE EVALUATION PURSUANT TO
GOVERNMENT CODE SECTION 54957
Title: City Attorney

3.3 CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT
TO GOVERNMENT CODE SECTION 54956.8
Property: 190 Maple Ave., Hollister, CA 95023
Agency Negotiator: Jim Pia, Interim City Manager
Under Negotiation: Purchase Terms and Conditions

3.4 CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54957.6

2 Agency designated representatives: Interim City Manager Jim Pia and City Attorney Mary Lerner
Employee Organizations: Service Employees International Union (SEIU), Local 521, Hollister Firefighters Union (HFFU) , Hollister Peace Officer Association (HPOA), and un-represented employees.

3.5 PUBLIC EMPLOYEE APPOINTMENT/EMPLOYMENT PURSUANT TO
GOVERNMENT CODE SECTION 54957
Title: City Manager
Vice Mayor Picha opened public comment at 5:31 p.m.

There were no speakers for the closed session agenda items.

Vice Mayor Picha closed public comment at 5:31 p.m.

Vice Mayor Picha convened the meeting into closed session at 5:31 p.m.

4. PLEDGE OF ALLEGIANCE
Councilmember Morales led the Pledge of Allegiance.

5. CLOSED SESSION REPORT
City Attorney Mary Lerner stated no reportable action was taken in closed session.

6. SPECIAL ORDERS OF THE DAY

6.1 PROCLAMATION HONORING THE KEY CLUB
Vice Mayor Picha presented a proclamation to the San Benito Key Club Honoring Key Club Week.

6.2 PRESENTATION ON THE HIGHER ASPIRATIONS PROGRAM
Annette Gutierrez, Robb Rodriguez, and Thong Vang provided a presentation regarding the Higher Aspirations program at Gavilan College.

7. PUBLIC INPUT FOR ITEMS NOT ON THE AGENDA
Antonio Mendoza, Executive Director of the Community Food Bank of San Benito County, spoke regarding the lack of SNAP benefits for local residents and requested the City help seek out emergency funding to help those with food insecurity during this time.

Rigoberto Avilez spoke regarding the need for more support for those with fo od insecurity in the community.

Kenny Deeg expressed concern regarding construction dust and noise near Mimosa Street.

3 Maggie Delooch expressed concern regarding food insecurity in San Benito County and spoke in support of community efforts to address these concerns.

Cristina Martinez expressed concern regarding food insecurity in San Benito County and spoke in support of community efforts to address these concerns.

8. CONSENT ITEMS
Vice Mayor Picha opened public comment at 7:08 p.m.

There were no speakers for the consent agenda items.

Vice Mayor Picha closed public comment at 7:08 p.m.

Moved by: Council Member Resendiz
Seconded by: Council Member Morales
Ayes (4): Council Member Picha, Council Member Resendiz, Council Member Morales, and Council Member de Anda
Absent (1): Mayor Stephens
Carried (4 to 0)

8.1 APPROVE OCTOBER 20, 2025 REGULAR MEETING MINUTES

8.2 WARRANT REGISTER
Moved by: Council Member Resendiz
Seconded by: Council Member Morales
Ratify and approve the Warrant Registers for the General-Special- Enterprise-Assessment Funds attached
Carried

8.3 AN ORDINANCE FOR RECOVERY OF EMERGENCY RESPONSE

PERSONNEL COSTS RELATED TO DUI INCIDENTS AND

RESOLUTION DETERMINING THE HOURLY FULLY FUNDED RATE

FOR THE PUBLIC SAFETY PERSONNEL TO BE CHARGED UNDER

THIS NEW ORDINANCE
Moved by: Council Member Resendiz
Seconded by: Council Member Morales

1. Adopt an ordinance amending Title 9 of the Hollister Municipal Code to add Chapter 9.50 for recovery of emergency response personnel costs related to DUI incidents; and

2. Adopt a resolution determining the hourly fully funded rate for the public safety personnel to be charged under this new ordinance.

4 Carried

8.4 A RESOLUTION APPROVING A 0.6-ACRE CREDIT OF CALIFORNIA

TIGER SALAMANDER UPLAND HABITAT IN RELATION TO THE
RUNWAY 6 SAFETY IMPROVEMENTS PROJECT
Moved by: Council Member Resendiz
Seconded by: Council Member Morales
Adopt a resolution:

1. Approving an agreement with South Bay Conservation Resources, LLC. for the purchase of a 0.6-acre credit of California Tiger Salamander upland habitat at the Sparling Ranch Conservation Bank as required by the California Department of Fish and Wildlife for the Hollister Municipal Airport Runway 6 Safety Improvements Project; and

2. Approving FY 2025/2026 appropriations for completion of the fiscal activity for the Runway 6 Safety Improvements Project; and

3. Authorizing the Finance Department to make necessary accounting and budgetary entries; and

4. Authorizing the Interim City Manager to execute the Agreement.

Carried

8.5 A RESOLUTION APPROVING THE PERMIT CENTER MANAGER AND

FINANCE DIRECTOR CLASSIFICATIONS AND ADDING ONE FULL
TIME EQUIVALENT (FTE) POSITION TO THE FISCAL YEAR 2025-2026 BUDGET
Moved by: Council Member Resendiz
Seconded by: Council Member Morales
Adopt a resolution approving the Permit Center Manager and Finance Director classifications, approving salary schedules for the Permit Center Manager and Finance Director classifications, and introducing one full- time equivalent (FTE) position in the Permit Center Manager classification to the Fiscal Year 2025-2026 budget.

Carried

8.6 A RESOLUTION APPROVING THE ANNEXATION OF THE ANNOTTI LANDING SUBDIVISION, TRACT 363 INTO COMMUNITY FACILITIES DISTRICT #4 ANNEXATION NO. 64 (PUBLIC FACILITIES SERVICES) Moved by: Council Member Resendiz
Seconded by: Council Member Morales
Adopt a resolution approving the annexation of the Annotti Landing Subdivision, Tract 363 into CFD#4.

5 Carried

8.7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING THE PROPOSED BOUNDARY OF THE ANNOTTI
LANDING SUBDIVISION, TRACT 363 FOR THE ANNEXATION OF
TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 5
ANNEXATION NO. 27 (POLICE AND FIRE SERVICES)
Moved by: Council Member Resendiz
Seconded by: Council Member Morales
Adopt a resolution approving the annexation of the Annotti Landing Subdivision, Tract 363 into CFD#5.

Carried

8.8 A RESOLUTION APPROVING A BUDGET ADJUSTMENT FOR FUND

TRANSFERS AND INCREASING THE NOT-TO-EXCEED AMOUNT FOR

CHANGE ORDERS FOR THE WEST GATEWAY ROUNDABOUT

PROJECT
Moved by: Council Member Resendiz
Seconded by: Council Member Morales
Adopt a resolution approving:

1. A budget adjustment and fund transfer of allocated funds for the West Gateway Roundabout Project from Fund 304 (Traffic Impact) to Fund 275.

2. A transfer of funds from the Sewer Enterprise Fund (Fund 660) in the amount of $405,244 to Fund 275.

3. Authorize the City Manager to execute change orders with Granite Rock Company in an amount not to exceed $1,095,244 in addition to the original contracted work of $3,451,890 for a total amount not-to-exceed of $4,547,134.

Carried

9. COUNCIL BUSINESS

9.1 RECEIVE THE RATES AND FEES STUDY FOR THE HOLLISTER

MUNICIPAL AIRPORT AND PRESENATION BY ASCENSION GROUP

PARTNERS
Airport Director Jeff Crechriou and Ryan Lieck with City consultant Ascension Group Partners provided the staff report.

Vice Mayor Picha opened public comment at 7:45 p.m.

There were no speakers for this item.

6 Vice Mayor Picha closed public comment at 7:45 p.m.

10. INFORMATIONAL REPORTS

10.1 COMMITTEE ASSIGNMENTS
Councilmember Morales reported she was appointed to the League of California Cities Public Safety again for the upcoming year.

10.2 COUNCIL REPORTS

1. CITY COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS
By consensus, the City Council directed staff to agendize a future presentation from on the Tobacco Education Program at San Benito County Public Health.

10.3 CITY MANAGER REPORT
No report.

1. UPDATED CITY COUNCIL PROJECTS

11. ADJOURNMENT
Vice Mayor Picha adjourned the meeting at 7:48 p.m.

Jennifer Woodworth, City Clerk

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: November 17, 2025
REPORT # Finance-2025-24

AGENDA ITEM: WARRANT REGISTER NOVEMBER 17, 2025

DEPARTMENT: Adminstrative Services
DEPARTMENT HEAD: Grizelle Gonzalez, Management Analyst
STAFF CONTACT: Maricela Romero, Accounting Tech II

RECOMMENDED ACTION: Ratify and approve the Warrant Registers for the General-Special-Enterprise-Assessments funds.

FISCAL IMPACT: 25/26

ATTACHMENTS:

1. Expense Approval Register PYR 10-22-25

2. Expense Approval Register DP 10-22-25

3. Expense Approval Register DP 10-22-25-2

4. Expense Approval Register AP 10-22-25

5. Expense Approval Register AP 11-04-25

6. Expense Approval Register AP 11-04-25-2

7. Expense Approval Register PYR 11-05-25

8. Expense Approval Register DP 11-05-25

9. Expense Approval Register DP 11-05-25-2

10. Expense Approval Register AP 11-05-25

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: November 17, 2025
REPORT # Airport-2025-28

AGENDA ITEM: A RESOLUTION APPROVING AN AIRPORT USE AGREEMENT

WITH WISK AERO LLC OF MOUNTAIN VIEW, CALIFORNIA TO PLACE AND

UTILIZE A DEPLOYABLE VERTIPORT AT THE HOLLISTER MUNICIPAL AIRPORT

DEPARTMENT: Airport
DEPARTMENT HEAD: Jeff Crechriou, Airport Director
STAFF CONTACT: Jeff Crechriou, Airport Director

RECOMMENDED ACTION: Adopt a resolution approving an Airport Use Agreement with Wisk Aero LLC of Mountain View, California to place and utilize a deployable vertiport at the Hollister Municipal Airport and authorizing the Interim City Manager to execute the Agreement

DISCUSSION: Wisk Aero LLC (Wisk) has been a long-term tenant at the Airport since 2015 and built their own hangar building via a ground lease, leases several on Airport hangar/building spaces, and has a “Through the Fence” Access Permit for their utilization of a building in the adjacent Airpark Business Center business park property. Wisk is an Advanced Air Mobility company focused on developing its electric vertical takeoff and landing (eVTOL) aircraft.

Wisk desires to install a Deployable Final Approach and Takeoff Area (“FATO”), which is a designated area on a vertiport where an aircraft completes its final approach to a hover or landing and initiates its takeoff and temporary surface for accessing the FATO on airport property for the purpose of testing infrastructure to integrate their aircraft with necessary ground systems, demonstrate vertiport requirements, and influence broader Advanced Air Mobility (“AAM”) policies and infrastructure providers. Wisk will conduct operations with its Bell 206 Helicopter and Gen 6 electric vertical takeoff and landing (“eVTOL”) aircraft.

Since July 2025, Wisk Aero LLC (Wisk) has been engaged in discussions with the Airport to place a deployable (temporary) vertiport on airport property. The proposed deployable vertiport is a pre-engineered, modular landing platform designed for vertical take-off and landing (VTOL) aircraft. It consists of a steel structural frame supporting a raised landing surface, integrated with aviation compliant lighting systems and a self -contained solar power generation and battery storage unit.

Through these discussions, Wisk, with input from the Airport, has developed a CONOPS document outlining the proposed use, location, procedures, and requirements for utilizing the deployable vertiport for their intended purpose , as stated above, which is incorporated into the Airport Use Agreement (Agreement) as Exhibit B. As depicted in Exhibit A of the Agreement, the proposed location of the vertiport is 500 feet west from the centerline of Runway 31 and southwest of the southern end of Taxiway Kilo.

The location and flight procedures will be reviewed and approved by the FAA. Wisk is

allowed to have the deployable vertiport and temporary surface for accessing the vertiport in place and to utilize the vertiport as described seven (7) days a week.

FISCAL IMPACT: Wisk will pay $2,300.00 per month for use of the facilities.

PREVIOUS COUNCIL OR COMMISSION ACTION: The City of Hollister Airport Advisory Commission considered the proposed use and location at their special meeting on October 8, 2025, received a presentation on the proposed use and location, and unanimously passed a motion recommending the Airport present an Airport Use Agreement for City Council consideration and approval.

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Wisk Airport Use Agreement

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING AN AIRPORT USE AGREEMENT WITH WISK AERO LLC

OF MOUNTAIN VIEW, CALIFORNIA TO PLACE AND UTILIZE A

DEPLOYABLE VERTIPORT AT THE HOLLISTER MUNICIPAL AIRPORT

WHEREAS, Wisk Aero LLC (Wisk) has been a long-term tenant at the Airport since 2015 and built their own hangar building via a ground lease, leases several on Airport hangar/building spaces, and has a “Through the Fence” Access Permit for their utilization of a building in the adjacent Airpark Business Center business park property. Wisk is an Advanced Air Mobility company focused on developing its electric vertical takeoff and landing (eVTOL) aircraft; and

WHEREAS, Wisk desires to install a Deployable Final Approach and Takeoff Area (“FATO”), which is a designated area on a vertiport where an aircraft completes its final approach to a hover or landing and initiates its takeoff and temporary surface for accessing the FATO on airport property for the purpose of testing infrastructure to integrate their aircraft with necessary ground systems, demonstrate vertiport requirements, and influence broader Advanced Air Mobility (“AAM”) policies and infrastructure providers. Wisk will conduct operations with its Bell 206 Helicopter and Gen 6 electric vertical takeoff and landing (“eVTOL”) aircraft; and

WHEREAS, Since July 2025, Wisk Aero LLC (Wisk) has been engaged in discussions with the Airport to place a deployable (temporary) vertiport on airport property. The proposed deployable vertiport is a pre-engineered, modular landing platform designed for vertical take-off and landing (VTOL) aircraft. It consists of a steel structural frame supporting a raised landing surface, integrated with aviation compliant lighting systems and a self-contained solar power generation and battery storage unit; and

WHEREAS, Wisk, with input from the Airport, has developed a CONOPS document outlining the proposed use, location, procedures , and requirements for utilizing the deployable vertiport for their intended purpose, which is incorporated into the Airport Use Agreement (Agreement) as Exhibit B; and

WHEREAS, as depicted in Exhibit A of the Airport Use Agreement, the proposed location of the vertiport is 500 feet west from the centerline of Runway 31 and southwest of the southern end of Taxiway Kilo; and

WHEREAS, the Hollister Airport Advisory Commission considered the proposed use and location at their special meeting on October 8, 2025, received a presentation on the proposed use and location, and unanimously passed a motion recommending the Airport present an Airport Use Agreement for City Council consideration and approval; and

Resolution No. 2025-XX

WHEREAS, the location and flight procedures will be reviewed and approved by the FAA.

Wisk is allowed to have the deployable vertiport and temporary surface for accessing the vertiport in place and to utilize the vertiport as described seven (7) days a week ; and

WHEREAS, Wisk will pay $2,300.00 per month for use of the facilities.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister does hereby approve an Airport Use Agreement with Wisk Aero LLC of Mountain View, California to place and utilize a deployable vertiport at the Hollister Municipal Airport and authorize the Interim City Manager to execute the Agreement.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on November 17, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Jennifer Thompson, City Attorney

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on November 17, 2025, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on November 17, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

CITY OF HOLLISTER

AIRPORT USE AGREEMENT
This airport use agreement (“Agreement”) is made and entered into this 20th day of November 2025 (“Effective Date”), by and between the City of Hollister, a California municipal corporation, acting by and through its Airport Director (“City”), and Wisk Aero LLC (“User”), located at 2700 Broderick Way, Mountain View, California (individually referred to as a “Party” and collectively referred to as the “Parties”).

RECITALS
This Agreement incorporates and is based upon the following representations and understandings:

WHEREAS, City is the owner and operator of the Hollister Municipal Airport, located in the County of San Benito, State of California (the “Airport”), with the power to grant rights and privileges, including the power to grant Airport use and access, pursuant to the provisions of City Municipal Code Chapter 13.28, among other federal, state, and local laws, rules, and regulations;
WHEREAS, the Airport is a federally obligated nonprimary public-use general aviation airport included in the National Plan of Integrated Airport Systems (“NPIAS”); WHEREAS, the Airport currently accommodates Unmanned Aircraft System (“UAS”) operations;
WHEREAS, the User desires to install a Deployable Final Approach and Takeoff Area (“FATO”), which is a designated area on a vertiport where an aircraft completes its final approach to a hover or landing and initiates its takeoff and temporary surface for accessing the FATO on airport property for the purpose of testing infrastructure to integrate their aircraft with necessary ground systems, demonstrate vertiport requirements, and influence broader Advanced Air Mobility (“AAM”) policies and infrastructure providers. User will conduct operations with their Bell 206 Helicopter and Gen 6 electric vertical takeoff and landing (“eVTOL”) aircraft (“the Aircraft”);
WHEREAS, the User employs certificated pilots to operate the Aircraft in accordance with Title 14 of the Code of Federal Regulations Part 91 and the applicable Certificate of Waiver or Authorization (“COA”); and
WHEREAS, the Parties desire to enter into this Agreement to establish the terms and conditions under which the User may install a FATO and temporary surface and conduct their testing operations of the Aircraft at the Airport.

NOW, THEREFORE, and in consideration of the mutual terms and conditions hereinafter set forth, the City and User hereby agree to the following:

2 AGREEMENT
I. Term of Agreement
This Agreement shall commence on the Effective Date on a month-to-month basis unless terminated by either Party or pursuant to the term and conditions hereinafter and shall continue in full force and effect as hereinafter provided for a period of three hundred sixty-five (365) day(s) thereby terminating on November 20, 2026, unless terminated sooner as provided herein.

Wisk will have the option to renew for an additional year as needed.

II. Permitted Operations
User is hereby granted permission to operate and engage in the following activities at the Airport (activities collectively referred to as “Operations”):
(1) install a FATO sized 100 ft. x 100 ft. and temporary surface for accessing the FATO (“the Equipment”) and conduct testing of the FATO infrastructure to integrate the Aircraft with necessary ground systems;
(2) demonstrate vertiport requirements;
(3) influence broader AAM policies and infrastructure providers; (4) conduct flight operations predicated on the Federal Aviation Administration (“FAA”) approval of the FATO location and aircraft approach and departure procedures.

User is authorized to conduct Operations up to seven (7) days per week. User shall provide the Airport advanced notice of planned Operations by email to [email protected].

City and Airport shall not be liable for any delays, interruptions, or cancellations of Operations due to weather, airport operations, emergencies, or other circumstances beyond its reasonable control.

III. Facilities
User is hereby granted permission to use those facilities and areas of the Airport, as are more fully described in Exhibit A, attached hereto and made a part hereof (the “Facilities”), for their Operations. The User’s access is confined to the designated Facilities and necessary ingress and egress routes to access the FATO with a tow vehicle and support vehicles.

IV. Operational Requirements
Operational requirements include, but are not limited to, the following key provisions in this Section IV and are more fully described in Exhibit B, attached hereto and made a part hereof. In the event of any conflict between the provisions in this Section IV and Exhibit B, the provisions in this Section shall prevail.

A. Personnel Requirements.

i. Prior to conducting Operations, User shall provide to the Airport Director

3 a current list of names and contact information, including cell phone numbers, for principal persons who are responsible for the conduct of the Operations and who should be contacted in the event of an emergency (“Responsible Personnel”).
ii. User shall notify Airport Director any time there is a change in or addition to Responsible Personnel.
iii. Minimum personnel required to conduct Operations as further described in Exhibit B.
iv. User shall employ appropriately licensed pilot(s), as determined by the FAA regulations, to conduct their Operations.
v. Personnel shall wear safety vests at all times while using the Facilities as described in Exhibit B.
vi. User shall escort all non-employees and non-contractors into the Airport Operations Area and are responsible for supervision of the guests while utilizing the facilities.

B. Equipment Requirements.

i. User shall procure the FATO and temporary surface.
ii. User shall submit a Form 7460 to the FAA for review and approval of the FATO location and related flight procedures. Such approval shall be provided to the Airport Director prior to installing the Equipment. iii. User shall be solely responsible for the cost of installation, performing the installation, operation, maintenance, repair, and replacement of all Equipment, as more fully described in Exhibit B, placed on the Facilities. iv. User shall ensure that all Equipment is maintained in good working condition at all times and shall promptly address any malfunctions, damage, or deteriorations. The temporary surface shall be inspected after each use to validate such material is securely in place and anchored to the ground so as not to become foreign object debris (“FOD”) or allow lifting by wind or propeller/rotor wash.
v. User’s vehicles, driven in the Airport and Facilities, i.e. inside the Airport Operations Area fence, shall be flagged and/or utilize a flashing amber beacon while on a runway, taxiway or within the defined Facilities. vi. User’s personnel and all vehicles, including the Aircraft, shall be returned to the User’s on Airport hangars/buildings at the conclusion of daily Operations. Leaving vehicles or the Aircraft in the Facilities is expressly prohibited without prior written authorization from the Airport Director.

C. Safety Procedures.

i. While utilizing the Facilities, User shall have an aviation band radio and monitor the Airport Common Traffic Advisory Frequency (“CTAF”),

4 123.00, for situational awareness and for making appropriate notifications while conducting Operations as described in Exhibit B. ii. City shall maintain the area adjacent to the Facilities to Airport standards, free of any structures, airport or other vehicles and equipment. iii. Prior to and after conducting any Operations, the User must examine the condition of the Facilities and Equipment to determine if it is in a safe condition to use for Operations. Any unsafe condition should be immediately reported to the Airport Director and/or Airport personnel. iv. In the event of damage resulting from User’s Operations or other activities, User must pay for and cooperate with the Airport to repair all damage to the Airport, Facilities, or other Airport aircraft in a timely manner.
v. User shall adhere to any applicable FAA regulations and conduct all Operations in accordance with the City of Hollister Municipal Code Chapter 13.24 “Hollister Municipal Airport Use and Operations Regulations”.
vi. User shall not allow any equipment associated with their Operations to conflict with aircraft on the runways, taxiways, or ramps at any time. vii. Radio equipment and use requirements shall be consistent with FAA regulations. User is responsible to ensure that radio frequency(s) are at all times free from interference and cannot be used during Operations by anyone other than the User.
viii. No persons shall possess or consume any alcoholic beverage or illegal drug in or around any areas when Operations are taking place. No person employed by or providing services to User shall possess, consume, and/or have in his or her system any alcoholic beverage or illegal drug in or around any areas where Operations are taking place. In addition, Responsible Personnel shall not possess or have in his or her systems any legal drug that impairs or could impair their ability to operate an aircraft (including on the runway, taxiways, and the designated ramp area, in or around any associated vehicles, or anywhere on the Airport). ix. Operational-related notifications of a non-emergency nature should be made to the Airport via email to [email protected] or by telephone at (831) 902-9292. For occasions when the Airport administrative staff may not be available and the matter requires immediate attention, the Airport Director may be contacted at (831) 902- 7433.
i. User in entering into this Agreement acknowledges that it has received and shall abide by the rules and regulations set forth in the City of Hollister Municipal Code Chapter 13.24 “Hollister Municipal Airport Use and Operations Regulations,” and shall conduct its activities in accordance with applicable federal and state statutory and decisional laws, City of Hollister ordinances, rules and regulations, and the requirements of any other duly authorized government agency (“Airport

5 Rules and Regulations”).

V. Prohibitions
User is expressly prohibited from engaging in the following activities or conduct. Any violation of these prohibitions will result in immediate termination of this Agreement.

a. Prohibitions and Restrictions on Access. User is specifically prohibited from granting any access, i.e. providing the vehicle access gate code, to the Airport to any parties that are not their employees or contractors. This restriction also includes User taking reasonable precautions acceptable to City to prevent the accidental access to the Airport by any other parties.

b. No Assignment. Use of the Facilities is personal to the User and the rights, privileges, duties, and obligations of the User under this Agreement shall not be assigned, transferred, subcontracted, or delegated in whole or in part. Any assignment, transfer, subcontract, or delegation, whether voluntary or involuntary, by operation of law or otherwise, is void and shall terminate this Agreement.

c. Operational Area Restrictions. Operations are strictly limited to the Facilities specified in Exhibit A. There may be no storage of equipment or materials, including the Aircraft, on the Facilities without prior written authorization from the Airport Director. No modification is permitted to the designated Facilities unless directed in writing by the Airport Director.

VI. Airport User Fees

a. Fees. User agrees to pay two thousand three hundred dollars ($2,300.00) per month for use of the Facilities. Payment shall be made payable to the City of Hollister and delivered or mailed to the following address on the first day of the month for which payment is due.

Hollister Municipal Airport
60 Airport Drive
Hollister, CA 95023
Re. Airport Use Agreement Fee

b. Penalty for Late Payment. In the event any payments remain unpaid for ten (10) days, a late fee of ten percent (10%) shall be charged by the City. In the event User shall become delinquent for more than thirty-one (31) days, this Agreement shall be terminated by the City as further defined in Article X – Termination of Agreement.

VII. Agreement Subordinate to Grant Assurances, Agreements with United States and Federal Obligations

6 This Agreement shall be nonexclusive and shall always be subordinate to the provisions of any existing or future agreements between the City and the United States Government, or to any order issued by the United States Government, or to any grant assurances of the Airport, or to any of the Airport’s or the City’s federal obligations. However, neither the City nor Airport will allow a third-party’s use of the Facilities or Equipment that does not fall within the parameters of the proceeding sentence.

This Agreement, in the City’s sole discretion, is subject to the initial and ongoing approval and consent by the FAA, and is subject to the terms, conditions, and requirements of any existing or future grant agreement(s) or grant assurance(s) at or in connection with the Airport and may be revoked, terminated, or canceled immediately if this Agreement violates any such grant assurance(s) or grant agreement(s) or any FAA regulation or any applicable local state or federal law, policy, rule, permit, standard, or regulation, whether currently in effect, hereafter adopted, or as may be amended, modified, changed, or superseded.

User agrees to abide by the Airport Rules and Regulations in effect as of the date of this Agreement and as may be amended from time to time.

VIII. Indemnity
User agrees, to the fullest extent permitted by law, to indemnify and hold harmless City and its present, and future officers, directors, agents, employees, and representatives from and against all liability for any and all claims, suits, demands, and/or actions arising from or based upon intentional or negligent acts or omission on the part of User, its owners, officers, directors, agents, representatives, employees, members, visitors, invitees, contractors, or subcontractors, which may arise out of or result from User’s Operations or use of the Facilities and Airport property, and/or activities conducted in connection with or incidental to this Agreement. This indemnity provision shall apply regardless of the nature of the injury or harm alleged, whether for injury or death to persons or damage to property, or whether such claims are alleged as common law, statutory, or constitutional claims, or otherwise. This indemnity provision shall apply whether the basis for claims, suit, demand, and/or action may be attributable in whole or in part to the User or any of its owners, officers, directors, agents, representatives, employees, members, visitors, invitees, contractors, or subcontractors, or to anyone directly or indirectly employed by any of them.

IX. Insurance
Without in any way limiting User’s liability, or indemnification obligations set forth in Section VIII above, User shall secure and maintain throughout the Term of this Agreement the insurance listed in Exhibit C, attached hereto and made a part hereof. Neither User nor any of the User Parties shall commence in any use of the facility including installation of the deployable vertiport and temporary surface until all required insurance has been obtained and certificates indicating the required coverages have been delivered to and approved by City. All of the policies shall be amended to provide that the insurance shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days’ prior written notice has been given to City. If such a notice is not given or even if City receives a notice, City may, at its sole

7 option, terminate this Agreement. All insurance policies shall include an endorsement stating that it is primary to any insurance or self-insurance maintained by City and shall waive all rights of subrogation against City and/or the City Parties. A copy of the declarations page of User’s insurance policies shall be attached to this Agreement as proof of insurance X. Termination of Agreement
Either Party may terminate this Agreement at any time. The City may terminate this Agreement immediately for safety violations or non-compliance with any Agreement terms herein, including any violation of Airport Rules and Regulations. Upon termination, User shall cease all Operations, remove all equipment and property from the Facilities and Airport, and pay all outstanding fees and charges.

XI. Compliance with Laws
The undersigned User certifies that User shall agree to abide by and comply with all Airport Rules and Regulations now in force, or which may hereafter be in force, pertaining to the Airport. The judgement of the Airport Director of the violation of any such law, ordinance, rule, regulation, or requirement shall be conclusive evidence of that fact.

Furthermore, the undersigned User certifies that User shall agree to abide by and comply with all conditions, requirements, and terms of any existing and future federal and state grant agreement pertaining to the Airport.

Failure to comply with any of these certifications shall cause immediate revocation and cancellation of this Agreement.

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized officers and representatives of each of the Parties on the date first shown above.

CITY OF HOLLISTER

Jim Pia, Interim City Manager Date

USER

Tyler Painter, CFO Date
Wisk Aero LLC

EXHIBIT A: DESIGNATED FACILITIES & INGRESS/EGRESS

9 EXHIBIT B: WISK AERO CONOPS

This page left intentionally blank

PROPRIETARY NOTICE: The information contained in this document is the property of Wisk Aero LLC

Proposed Deployable Final
Approach and Takeoff Area
(FATO) at Hollister Municipal
Airport (KCVH)
AOPD00001006
Revision A

Not subject to U.S. Export Administration Regulations (EAR) (15 C.F.R. Parts 730-774) or U.S. International Traffic in Arms Regulations (ITAR), (22 C.F.R. Parts 120-130).

Wisk Proprietary Page 2 of 7 AOPD00001006 Revision A

Proposed Deployable FATO at Hollister Municipal Airport (KCVH)

Revision History
Rev Date Author(s) Description of Changes
A 09/25/2025
Initial release.

Wisk Proprietary Page 3 of 7 AOPD00001006 Revision A

Proposed Deployable FATO at Hollister Municipal Airport (KCVH)

Table of Contents
1 Introduction 4

1.1 Purpose 4

1.2 Scope 4
2 Hollister Environment 4

2.1 Vertiport Location 4

2.2 Deployable FATO 5

2.3 Temporary Surface Area 6
3 Operations 6

3.1 Landing Operations 6

3.2 Towing Operations 7
4 Acronyms 7
List of Figures
Figure 2-1: Proposed Hollister Vertiport Location

5 Figure 2-2: Deployable FATO 5
Figure 2-3: Temporary Surface Area for Towing 6
List of Tables
Table 4-1: List of Acronyms

7

Wisk Proprietary Page 4 of 7 AOPD00001006 Revision A

Proposed Deployable FATO at Hollister Municipal Airport (KCVH)

1 Introduction

1.1 Purpose
Describe Wisk’s proposed location and intended use of the deployable FATO at Hollister Municipal Airport (KCVH).

1.2 Scope
Wisk's proposed deployment is viewed as a positive step towards integrating innovative aviation technologies at KCVH (the Airport). This document describes Wisk’s intended use and proposed location of the deployable FATO. To formalize this operation, the Airport and Wisk will establish a year-by-year Airport Use Agreement, which will govern the terms and conditions for the use of the deployable FATO.

This document does not include operating limitations for Wisk-owned Bell 206 helicopter as the surrogate vehicle and Gen 6 aircraft, those are defined outside of this document. 2 Hollister Environment
The below describes Wisk’s proposed vertiport location and deployable solutions at the Hollister Airport.

2.1 Vertiport Location
Wisk analyzed various locations and determined that the below location, situated at the south end of Runway 31, is most suitable. This location is also consistent and in alignment with the Airport's long-term development plans, which include the future establishment of vertiport infrastructure to support Advanced Air Mobility (AAM) operations.

Wisk Proprietary Page 5 of 7 AOPD00001006 Revision A

Proposed Deployable FATO at Hollister Municipal Airport (KCVH)

Figure 2-1: Proposed Hollister Vertiport Location

2.2 Deployable FATO
Wisk proposes to operate a deployable Final Approach and Takeoff (FATO) area on airport grounds, sized 100 ft x 100 ft, that meets existing vertiport sizing requirements (per FAA Engineering Brief 105A, Vertiport Design). The solution will be provided by a vendor that has prior experience in deploying similar infrastructure at other locations. The solution is a modular steel structure, deployable on ground and on elevated surfaces. It can be expanded in size due to its modularity, and includes integrated lights and solar panels for self-charging. It also allows for integrating sensors and additional ground components into the FATO to enable testing of our approach and landing operations.

Figure 2-2: Deployable FATO

Wisk Proprietary Page 6 of 7 AOPD00001006 Revision A

Proposed Deployable FATO at Hollister Municipal Airport (KCVH)

2.3 Temporary Surface Area
Wisk plans to use temporary materials provided by a vendor to connect the FATO to the existing taxiway for towing Gen 6 onto and off the FATO surface. The material is modular, temporary, and allows for flexibility to reallocate the surface to other locations at the Airport, if desired in the future.

Figure 2-3: Temporary Surface Area for Towing

3 Operations
Wisk’s Gen 6 is an electric takeoff and landing (eVTOL) aircraft that takeoff and land at vertiports for our Entry-Into-Service (EIS) operations.

Given that Wisk does not intend to design, build, own, or operate vertiports, Wisk will foster the establishment of a deployable vertiport through partnership arrangements with the Hollister Municipal Airport. Wisk aims to leverage this deployable FATO as a testing infrastructure to integrate our aircraft with necessary ground systems, demonstrate vertiport requirements, and influence the broader AAM policies and infrastructure providers.

3.1 Landing Operations
Since 2024, Wisk has conducted a number of flight tests on Wisk-owned Bell 206 helicopter (N54NY) as the surrogate vehicle to Wisk Gen 6 aircraft (CX6-1). We have demonstrated that the prototype ground system is capable of meeting the designed navigational performance.

As a continuation of the testing effort, Wisk intends to test configuration of the ground system to inform the FAA on relevant vertiport standards and specifications. For such testing, Wisk plans to conduct approach and landing operations into the deployable FATO - initially with the Bell 206 Helicopter and later on with our CX6-1.

Wisk Proprietary Page 7 of 7 AOPD00001006 Revision A

Proposed Deployable FATO at Hollister Municipal Airport (KCVH)

3.2 Towing Operations
Towing operations would be conducted with Wisk Gen 6 aircraft (CX6-1). A Wisk-owned tow truck will move Gen 6 into the FATO via the existing taxiway, and then drive off the FATO using the temporary surface area.

4 Acronyms
All acronyms referenced in the document are listed below.

Table 4-1: List of Acronyms
Acronym Definition
AAM Advanced Air Mobility
CVH Hollister Airport
EIS Entry Into Service
eVTOL Electric Vertical Take-Off and Landing
FATO Final Approach and Takeoff Area

17 EXHIBIT C: INSURANCE REQUIREMENTS

User shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the User, his agents, representatives, employees or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if User has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

4. Professional Liability (Errors and Omissions): Insurance appropriates to the User’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. (If applicable – see footnote next page)
If the User maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its officers, officials, employees, and volunteers shall be included as additional insureds on the CGL policy, but only for liability caused in whole or in part by the acts or omissions of the User of those acting on its behalf. General liability coverage can be provided in the form of an endorsement to the User’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 additional insured coverage required under this Agreement shall not be limited to the extent of the User’s negligence but shall apply to the fullest extent permitted by law, except that coverage shall not apply to the sole negligence or willful misconduct of the City.

18 Primary Coverage
For any claims related to this contract, the User’s insurance coverage shall be primary and non - contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the User’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.

Umbrella or Excess Policy
The User 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, Self-Insured Retentions (SIRs), 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 Commercial General Liability insurance. No insurance policies maintained by the 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 the User’s primary and excess liability policies are exhausted.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.

Waiver of Subrogation
User hereby grants to City a waiver of any right to subrogation which any insurer of said User may acquire against the City by virtue of the payment of any loss under such insurance. User agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the User to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subject to a self-insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City. Any and all deductibles and SIRs shall be the sole responsibility of User or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due User to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense

19 costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the User must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
User shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages 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 User’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: November 17, 2025
REPORT # Airport-2025-29

AGENDA ITEM: A RESOLUTION APPROVING THE FIRST AMENDMENT OF THE 2016 GROUND LEASE WITH WISK AERO LLC OF MOUNTAIN VIEW, CALIFORNIA FOR AN ADDITIONAL 2.8 ACRES AT THE HOLLISTER MUNICIPAL AIRPORT

DEPARTMENT: Airport
DEPARTMENT HEAD: Jeff Crechriou, Airport Director
STAFF CONTACT: Jeff Crechriou, Airport Director

RECOMMENDED ACTION: Adopt a resolution approving the First Amendment of the 2016 Ground Lease with Wisk Aero LLC of Mountain View, California for an additional

2.8 acres at the Hollister Municipal Airport and authorizing the Interim City Manager to execute the Amendment subject to final review of Article 13 Insurance provisions.

DISCUSSION: Wisk Aero LLC (Wisk) has been a long-term tenant at the Airport since 2015 and built its own hangar building via a 2016 ground lease, leases several on Airport hangar/building spaces, and has a “Through the Fence” Access Permit for its utilization of a building in the adjacent Airpark Business Center business park property.

Wisk is an Advanced Air Mobility company focused on developing its electric vertical takeoff and landing (eVTOL) aircraft.

Wisk’s operations at the Airport continue to evolve. On the west side of the Airport, Wisk entered into a ground lease in 2016 and constructed a 15,000 s quare foot (sf.) hangar building with parking lot and ramp (Hangar 1), and in 2024, leased a 15,000 s f. hangar building in the Airpark Business Center with “Through the Fence” access onto airport property (Hangar 2). Wisk plans to increase the number of employees working at the Airport.

Wisk desires to ground lease the available area, approximately 2.8 acres, that is contiguous and adjacent to the 2016 Leased Premises. This area would serve to support the additional parking required for the increased occupancy at Hangar 1 and Hangar 2 locations and for future improvements to support their evolving operations. For the design and construction of the additional parking lot, the Airport will require the current vehicle ingress/egress of the existing parking lot at Hangar 1 to be removed and re-routed through the new parking lot/additional area to eliminate vehicles moving past the nearby hangars and/or aircraft and thereby improving airfield safety at the west side hangars.

FISCAL IMPACT: In FY 2024-25, Ground Lease revenue accounted for 22% of the Airport’s annual revenue. Wisk currently pays approximately $7,500 per month, $90,000 annually for the 2016 Leased Premises. The 2025 Additional Ground Lease area will generate a minimum of approximately $6,000 per month, $72,000 annually, and this rate will increase as improvements are constructed within the addit ional ground lease area.

With approval of the First Amendment, the monthly ground lease rent to be paid by Wisk shall be comprised of the 2016 Leased Premises rent plus the 2025 Additional Ground Lease Area rent.

PREVIOUS COUNCIL OR COMMISSION ACTION: The City of Hollister Airport Advisory Commission considered the proposed use, location, and airfield safety improvement at their regular meeting of August 13, 2025, and unanimously passed a motion recommending the Airport present an Amendment to the 2016 Ground Lease for the additional ground lease area for City Council consideration and approval.

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. West Side Area Map

3. First Amendment to Wisk Ground Lease

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER APPROVING THE FIRST AMENDMENT OF THE 2016 GROUND LEASE

WITH WISK AERO LLC OF MOUNTAIN VIEW, CALIFORNIA FOR AN
ADDITIONAL 2.8 ACRES AT THE HOLLISTER MUNICIPAL AIRPORT

WHEREAS, Wisk Aero LLC (Wisk) has been a long-term tenant at the Airport since 2015 and built its own hangar building via a 2016 ground lease, leases several on Airport hangar/building spaces, and has a “Through the Fence” Access Permit for its utilization of a building in the adjacent Airpark Business Center business park property. Wisk is an Advanced Air Mobility company focused on developing its electric vertical takeoff and landing (eVTOL) aircraft; and

WHEREAS, Wisk’s operations at the Airport continue to evolve. On the west side of the Airport, Wisk entered into a ground lease in 2016 and constructed a 15,000 square foot (sf.) hangar building with parking lot and ramp (Hangar 1), and in 2024, leased a 15,000 sf. hangar building in the Airpark Business Center with “Through the Fence” access onto airport property (Hangar 2). Wisk plans to increase the number of employees working at the Airport; and

WHEREAS, Wisk desires to ground lease the available area, approximately 2.8 acres, that is contiguous and adjacent to the 2016 Leased Premises. This area would serve to support the required additional parking for the increased occupancy at Hangar 1 and Hangar 2 locations and for future improvements to support their evolving operations; and

WHEREAS, for the design and construction of the additional parking lot, the Airport will require the current vehicle ingress/egress of the existing parking lot at Hangar 1 to be removed and re-routed through the new parking lot/additional area to eliminate vehicles moving past the nearby hangars and/or aircraft and thereby improving airfield safety at the west side hangars; and

WHEREAS, the City of Hollister Airport Advisory Commission considered the proposed use, location, and airfield safety improvement at their regular meeting of August 13, 2025, and unanimously passed a motion recommending the Airport present an Amendment to the 2016 Ground Lease for the additional ground lease area for City Council consideration and approval; and

WHEREAS, in FY 2024-25, Ground Lease revenue accounted for 22% of the Airport’s annual revenue. Wisk currently pays approximately $7,500 per month, $90,000 annually for the 2016 Leased Premises. The 2025 Additional Ground Lease area will generate a minimum of approximately $6,000 per month, $72,000 annually, and this rate will increase as improvements are constructed within the additional ground lease area. With approval of the First Amendment, the monthly ground lease rent to be paid by Wisk shall be comprised of the 2016 Leased Premises rent plus the 2025 Additional Ground Lease Area rent.

Resolution No. 2025-XX

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister does hereby approve the First Amendment of the 2016 Ground L ease with Wisk Aero LLC of Mountain View, California for an additional 2.8 acres at the Hollister Municipal Airport and authorize the Interim City Manager to execute the Amendment , subject to final review of Article 13 Insurance provisions.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on November 17, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Jennifer P. Thompson, City Attorney

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on November 17, 2025, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on November 17, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

Hollister Municipal Airport
West Side Area Map
Wisk Hangar 1
Wisk Hangar 2
Through the Fence Access
West Side Aircraft Hangars
Wisk Additional Ground Lease Area

1 FIRST AMENDMENT

TO HOLLISTER MUNICIPAL AIRPORT GROUND LEASE AGREEMENT
WITH ZEE.AERO, INC.

This First Amendment to the Hollister Municipal Airport Ground Lease Agreement is made and entered into this day of 2025, by and between the City of Hollister, California, a municipal corporation (“City”), and Wisk Aero LLC, formerly Zee.Aero, Inc. (“Tenant”).

WHEREAS the City and Tenant have previously entered into an agreement dated August 5, 2016, for the lease of an undeveloped portion of the Hollister Municipal Airport (“Airport”) real property (“Leased Premises”) for the construction of a fourteen thousand (14,000) square foot building comprising an airport hangar and offices, associated aircraft ramp, and an adjacent on-site automobile parking area (“Lease”);

WHEREAS Section 17.20 of the Lease permits the City and Tenant to amend, alter, or modify, by writing, the Lease; and

WHEREAS, pursuant to Section 17.20 of the Lease, the City and Tenant desire to amend said Lease to extend its term, and lease additional Airport property, surrounding the Leased Premises (“Additional Ground Lease Area”), to the Tenant for construction of a parking lot and future improvements, as more particularly described herein.

NOW, THEREFORE, the City and Tenant, in consideration of the mutual covenants hereinafter recited, agree as follows:

1. This First Amendment is added to the Lease.

2. Recital B – Recital B of the Lease is hereby deleted in its entirety and replaced with the following:

“B. In 2016, Tenant desires to lease an undeveloped portion of the Airport real property for the construction of a fourteen thousand (14,000) square foot building comprising an airport hangar and offices (the “Hangar”), associated aircraft ramp, and an adjacent on-site automobile parking area (the “Parking Area”). Additionally in 2025, Tenant desires to lease additional ground lease area surrounding the hangar, offices, ramp and parking area, which will include an expanded parking lot and reservation of area for future improvements. Collectively, the hangar, offices, ramp, parking area and additional area as further defined below shall be referred to hereinafter as the “Improvements.”

3. Section 1.01, “Leased Premises” – Section 1.01 of the Lease is hereby deleted in its entirety and replaced with the following:

“1.01 Leased Premises. City hereby leases to Tenant, and Tenant hereby leases from City for the duration of the Term, all of that certain real property being a portion of the Hollister Municipal Airport, identified and shown on Exhibit “A” (the “2016 Leased Premises”) and Exhibit “A-1” (the “2025 Additional Ground Lease Area”) (collectively referred to as the “Leased Premises”), which are attached hereto and

2 made a part hereof, subject to any utility or other easements on, over, across or under the Leased Premises that are reserved by City. The Leased Premises will be solely comprised of the Improvements, which Tenant will construct in accordance with Exhibit “B” (Work Letter), together with all appurtenances and access rights thereto subject to the terms of this Lease. Upon receipt of the certificate of occupancy of the Improvements, the term “Leased Premises” shall thereafter include the Improvements constructed on the areas described in Exhibits “A” and “A-1” and all appurtenances and access rights thereto.

4. Additional Exhibit – Exhibit “A-1” (2025 Additional Ground Lease Area), attached hereto and incorporated herein by reference, is hereby added to the Lease and made a part thereof.

5. Section 2.02, “Rent” – Section 2.02 of the Lease is hereby deleted in its entirety and replaced with the following:

“2.02 Rent. For the 2016 Leased Premises, Tenant shall commence paying monthly rent for the Leased Premises as stated in this Lease. Tenant agrees to diligently pursue the necessary entitlements from the City of Hollister to construct the Improvements.

Commencing with the later to occur of: (a) the date that Tenant receives a building permit to construct the 2016 Leased Premises, or (b) the Execution Date, Tenant shall pay monthly rental in an amount calculated by multiplying the square footage of the Hangar, as described in the building permit application (submitted to City building department with jurisdiction for building permits), by Twenty One Cents ($0.21) (the “Initial Rent Amount”). The Initial Rent Amount shall be paid until receipt of a final Certificate of Occupancy for the Improvements from City, but for a maximum of twenty-four (24) months. Upon the date of such occupancy receipt or upon the end of twenty four months (whichever occurs first), the monthly rent shall be increased to a monthly rental amount to be calculated by multiplying the actual square footage of the Hangar, and parking area by Twenty One Cents ($0.21) and the ramp area actual square footage by Five Cents ($0.05), which rent Tenant shall continue to pay throughout the Term subject to adjustment as provided in Section

2.03 hereafter.

For the 2025 Additional Ground Lease Area, Tenant shall pay a monthly amount to be calculated by multiplying the square footage located in the 2025 Additional Ground Lease Area by Five Cents ($0.05), which rent Tenant shall continue to pay throughout the Term subject to adjustment as provided in Section 2.03 hereafter. The rent for the 2025 Additional Ground Lease Area reserved open space is subject to change based upon Tenant’s future use of such space, which shall be memorialized in a mutually executed lease amendment and which is subject to an increased rate of Twenty Three Cents ($0.23) per square footage upon completion of the improvements. If a governmental authority, other than the City, objects to the Improvements, the Tenant and City agree to meet in good faith within thirty (30) days after notice of the objection to pursue options to implement this Lease and where no options are available to construct the Improvements then this Lease shall be void and of no further force and effect.

3 For the 2016 Leased Premises, the rent has been adjusted annually from the original 2016 baseline based on the Consumer Price Index (“CPI”) and shall continue to be adjusted annually as provided in Section 2.03 hereafter. For the 2025 Additional Ground Lease Area, the rent shall be adjusted annually beginning in 2026 based on changes in the CPI as provided in Section 2.03 hereafter.

The monthly rent to be paid by the Tenant shall be comprised of the 2016 Leased Premises rent plus the 2025 Additional Ground Lease Area rent.

The monthly rent shall be paid on the first of each month by cash or check without deduction or offset. In the event that any installment of rent is not received by the City by the fifth day of the month, Lessee shall pay to the City, without deduction or offset, liquidated damages as provided in Section 2.04 herein.”

6. The second paragraph of section 8.03 (“Environmental Impairment”) shall be revised as follows:

Should any discharge, leakage, spillage, emission or pollution of any type occur upon or from the Leased Premises due to Tenant’s use and occupancy thereof, Tenant, at Tenant’s sole cost and expense, shall clean all property affected thereby to the satisfaction of City and any governmental body having jurisdiction there over.

7. Article 13 of the Ground Lease is hereby deleted in its entirety and replaced with the following:

13.01 Insurance to be Provided by Tenant. Tenant agrees to obtain and maintain in effect, at its own cost and expense, the following insurance coverage, which insurance shall provide primary coverage for the Improvements and the obligations of Tenant described in this Lease during the Term of this Lease and any extension thereof.

a) Comprehensive or commercial general liability insurance, obtained from one or more insurance companies licensed to do business in the State of California having a financial rating in Best’s Insurance Guide of at least A VII, protecting the City and the City’s council, commissions, boards, employees, volunteers and agents against any and all liability arising by reason of Tenant’s conduct relating to the use of the Leased Premises or resulting from any accident occurring on or about the roads, driveways or other public places, used by Tenant at the Airport, in an amount not less than One Million Dollars ($1,000,000.00) each occurrence (i.e., nonaggregate program) for bodily injury and property damage, including contractual liability, independent contractors, broad-form property damage, sudden and accidental pollution if available, personal injury, products and completed operations. Such insurance coverage shall name the City, including its council, boards, commissions, and members thereof, its officers, employees, volunteers and agents, as an additional insured, except to the extent arising out of the additional insureds’ negligence and to the extent of the Tenant’s indemnification obligations herein, and shall be primary

4 and noncontributing with respect to any other insurance available to the City. The insurance policy shall also include a severability of interest (cross liability) clause, that is, it shall act as though a separate policy were written for each insured and additional insured named in the policy. The City must be afforded at least thirty (30) days’ prior written notice of cancellation or material change in coverage.

b) A policy or policies of insurance against loss of or damage to or upon the Lease Premises, as well as Tenant’s furnishings, fixtures, inventory, personal property and equipment.

c) Liability coverage, if applicable, protecting the City and the City’s council, commissions, boards, employees, volunteers and agents against any and all liability covered thereby, except to the extent arising out of the additional insureds’ negligence.

13.02 Approval of Insurance Coverage.

Upon execution of this Lease, a certificate of insurance issued by the respective insurance company or companies certifying that such insurance policies are in full force and effect and that all liabilities arising out of or relating in any way to Tenant’s possession and use of the Leased Premises are covered by such insurance policy or policies shall be provided. Notwithstanding any provisions to the contrary contained herein, Tenant is not entitled to take or remain in possession of the Leased Premises until such certificates of insurance are filed with and approved by the City Manager.

13.03 Review of Insurance Coverage. City is entitled at any time during the term of this Lease to review the type, form and coverage limits of the insurance requirements.

If in the opinion of the City, the insurance provisions of this Lease are not sufficient to provide adequate protection for the City and the members of the public using the Airport, the City may require Tenant to maintain insurance sufficient to provide such adequate protection. Insurance requirements shall be applied uniformly to all Tenants engaged in similar-type operations at the Airport, and such requirements shall be consistent with industry standards. City shall notify Tenant in writing of any reasonable changes in the insurance provisions necessary to provide adequate protection. If Tenant does not deposit acceptable certificates evidencing valid insurance policies that incorporate such changes within sixty (60) days of receipt of such notice, Tenant will be in default of this Lease. Notwithstanding the foregoing or any contrary provision elsewhere in this Lease, (i) the Tenant shall not be required to insure against loss due to earthquake, earth movement, subsidence or rising sea level, and (ii) to the extent any modified insurance coverage requirements the City seeks to impose under this Lease may not be imposed on any of Tenant’s sublessee(s) under any unexpired sublease(s), the Tenant’s duty to comply with such modified insurance coverage requirements shall be suspended until such time as the then sublessee(s) may be required by the Tenant to comply with such modified insurance coverage requirements by virtue of the renegotiation of the applicable sublease(s ).

The procuring of any insurance policies required under this Article 13 will not be construed to be a limitation upon Tenant’s liability nor as a full performance of its part of the indemnification provisions of this Lease; Tenant’s obligation being,

5 notwithstanding said policy or policies of insurance, the full and total amount of any damage, injury or loss caused by Tenant’s negligence or neglect connected with the Tenant’s operation under this Lease.

13.04 Hold Harmless Agreement. It is an express condition of this Lease that except as otherwise provided in this Lease, the City shall be free from any and all liabilities and claims for damages or suits for or by reason of any death(s) or injuries to any person or persons or damages to property of any kind whatsoever, including the Leased Premises, whether the person or property of Tenant, its agents or employees, or third persons, (a) from any cause or causes whatsoever while in or upon the Leased Premises or any part thereof during the Term of this Lease except as to injury or damage caused by City, its officers, employees, or agents; or (b) occasioned by any occupancy, maintenance, repair, improvement, or use of said property or any activity carried on by Tenant in connection therewith; and Tenant hereby covenants and agrees to indemnify and to save harmless the City from all liabilities, charges, expenses, attorney fees, and costs on account of or by reason of any such death(s), injuries, liabilities, claims, suits or losses, however occurring, or damages growing out of the same except as provided herein, except to the extent arising out of the City’s negligence. The City shall immediately notify Tenant to resist and defend by retaining counsel at Tenant’s sole cost and expense, any action brought against the City subject to the provisions of this Section 13.04. The obligations of Tenant and City under this Section 13.04 shall survive the termination or expiration of this Lease.

Claims by Tenant against the city for contribution toward third-party injury, damage, or loss are not limited, waived, released, or disclaimed.

It is an express condition of this Lease that City shall indemnify Tenant for any and all liabilities and claims for damages or suits for or by reason of any death(s) or injuries to any person or persons or damages to property of any kind whatsoever, including the Lease Premises and the Airport, whether caused by the City, its officers, contractors, employees or agents.

13.05 Mutual Waiver of Claims and Waiver of Subrogation. The City and Tenant do each herewith and hereby release and relieve the other, and waive the entire claim of recovery for loss or damage to property arising out of or incident to fire, lightning or any other perils normally included in an “all risk” property insurance policy when such property constitutes the Premises or the Building or is in, on or about the Premises, Building or land on which the Building is situated, whether or not such loss or damage is due to the negligence of City or Tenant or their respective agents, employees, guests, licensees, invitees or contractors. Each of City and Tenant shall cause its insurance carriers to waive all rights of subrogation against the other party hereto to the extent of City or Tenant’s undertaking in this clause.

8. Section 16.06 is hereby deleted as redundant of section 8.03.1.

9. Notices. Section 17.18 is hereby deleted in its entirety and replaced with the following:

6 All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by nationally recognized overnight courier service with all charges for next business day delivery prepaid, and shall be effective upon receipt at the appropriate address.

If to City:

City of Hollister
375 Fifth Street
Hollister, CA 95023
Attn: City Manager
City’s Point of Contact Attn: Jeff Crechriou
Airport Director
Phone: 831-902-7433
Email: [email protected]
With a copy to: City of Hollister
60 Airport Drive
Hollister, CA 95023
Attn: Airport Director

If to Tenant:

Wisk Aero LLC
2700 Broderick Way
Mountain View, CA 94043
Attn: Niraj Nath
With a copy to: The Boeing Company
Attn: Global Real Estate
Global Real Estate, MC S221-1400
6200 James S. McDonnell Blvd
Bulk Mail 101 Dock
Berkeley, MO 63134
The Boeing Company
c/o MBG Consulting Inc.
980 North Michigan Avenue, Suite 1000
Chicago, IL 60611-4521
Tenant’s Point of
Contact:

Attn: Niraj Nath
Phone: +1 (650) 449-6575
Email: [email protected]

10. Miscellaneous.
a. Continuing Validity. Except as herein modified, all other terms, covenants and conditions of the Lease shall remain in full force and effect and are hereby ratified

7 and confirmed. In the event of a conflict between the terms of the Lease and this Amendment, the language of this Amendment shall control. b. Authority. Each party represents and warrants that it has the full authority to enter into this Amendment, and that no third-party consents of any kind are required in connection with this Amendment.
c. Binding Effect. The terms of this Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective representatives, successors and permitted assigns.
d. Counterparts; Electronic Signatures. Each party agrees that the electronic signatures, whether digital or encrypted, of the parties hereto are intended to authenticate this writing and to have the same force and effect as manual signature.

[Remainder of page is blank; signatures follow]

8 IN WITNESS WHEREOF, the City and Tenant have caused this First Amendment to the Lease to be executed on the date first above written.

CITY OF HOLLISTER Wisk Aero LLC

BY:

Jim Pia, Interim City Manager

BY:

Tyler Painter, CFO

ATTEST: APPROVED AS TO FORM:

Jennifer Woodworth, MMC, City Clerk
BY:

Jennifer Thompson, City Attorney

9 Exhibit A-1
2025 Additional Ground Lease Area

This page left intentionally blank

________________________

EXHIBIT “A-1”
Legal Description
Lease Parcel
Hollister Municipal Airport
October 21, 2025
BKF No. 20250034

Real property in the City of Hollister, County of San Benito, State of California, described as follows:

Being a portion of the lands shown on that certain Record of Survey, filed for record on September 23, 1992 in Book 11 of Maps, at Pages 37, Official Records of San Benito County, more particularly des cribed as follows:

BEGINNING at a found 5/8” rebar with 1-1/2” aluminum cap stamped “LS7733”, said monument being at the intersection of those certain courses shown as “ S18°02’22”E 577.90’ “ and “ S71°57’38”W 496.26’ “ as said monument and courses are shown on that certain Cal Fire Lease Area, recorded on , as Document No. , Official Records of said County;
Thence leaving said monument, along the westerly line of said Lease Area (Doc. ), South 18°02’22” East, 500.32 feet to a set 3/4” iron pipe with plastic plug and tack stamped “LS9781”; Thence leaving said westerly line, the following eight (8) courses:

1. South 20°08’26” West, 149.98 feet to a set 3/4” iron pipe with plastic plug and tack stamped “LS9781”;

2. North 69°51’25” West, 173.95 feet to a set 3/4” iron pipe with plastic plug and tack stamped “LS9781”;

3. North 65°09’51” West, 105.84 feet to a set 3/4” iron pipe with plastic plug and tack stamped “LS9781”;

4. North 18°03’10” West, 147.98 feet to a set 3/4” iron pipe with plastic plug and tack stamped “LS9781”;

5. North 72°00’44” East, 174.44 feet to a set 3/4” iron pipe with plastic plug and tack stamped “LS9781”;

6. North 18°08’19” West, 330.29 feet to a set 3/4” iron pipe with plastic plug and tack stamped “LS9781”;

7. North 71°57’38” East, 133.17 feet to a set 3/4” iron pipe with plastic plug and tack stamped “LS9781”;

8. South 18°02’22” East, 39.44 feet to the POINT OF BEGINNING.

Containing an area of 2.765 acres, more or less.

As shown on plat attached hereto and made a part hereof as EXHIBIT “B”.

This legal description was prepared by me, or under my direct supervision, in conformance with the requirements of the Professional Land Surveyors’ Act.

PRELIMINARY - FOR REVIEW
Christopher Cassera
P.LS. No. 9781

Date

PRELIMINARY

FOR REVIEW

Mathematical Calculations

Lease Parcel Area
Hollister Municipal Airport
Hollister, Ca.

October 21, 2025
BKF No. 20250034

Parcel Name: Lease Parcel Area

North: 11,335.1832' East: 5,408.0567'
Line Course: S18° 02' 22"E Length: 539.76'
North: 10,821.9559' East: 5,575.2051'
Line Course: S20° 08' 26"W Length: 149.98'
North: 10,681.1471' East: 5,523.5633'
Line Course: N69° 51' 25"W Length: 173.95'
North: 10,741.0494' East: 5,360.2528'
Line Course: N65° 09' 51"W Length: 105.84'
North: 10,785.5043' East: 5,264.2014'
Line Course: N18° 03' 10"W Length: 147.98'
North: 10,926.1995' East: 5,218.3434'
Line Course: N72° 00' 44"E Length: 174.44'
North: 10,980.0690' East: 5,384.2572'
Line Course: N18° 08' 19"W Length: 330.29'
North: 11,293.9456' East: 5,281.4323'
Line Course: N71° 57' 38"E Length: 133.17'
North: 11,335.1846' East: 5,408.0561'

Perimeter: 1,755.41' Area: 120,461.06 Sq Ft 2.765 Ac.

Error Closure: 0.00' Course: N23° 11' 55"W
Error North: 0.0014' East: -0.0006'
Precision 1: 1,152,483.13'

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: November 17, 2025
REPORT # City Manager-2025-51

AGENDA ITEM: A RESOLUTION OF INTENTION AND INTRODUCTION OF AN

ORDINANCE TO APPROVE A CONTRACT AMENDMENT WITH THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

DEPARTMENT: City Manager
DEPARTMENT HEAD: Jim Pia, Interim City Manager
STAFF CONTACT: Jim Pia, Interim City Manager

RECOMMENDED ACTION:

1. Adopt a Resolution of intention authorizing the City of Hollister to approve an amendment to the contract with CalPERS and authorizing the Mayor to sign.

2. Introduce an ordinance authorizing an amendment to the Contract between the City of Hollister and CalPERS.

DISCUSSION: The California Public Employees’ Retirement System (CalPERS) maintains specific requirements with its contracts with agencies, including Hollister. In September, CalPERS notified the City that we are in need of amending our pension contract in order to incorporate the language reflectin g the provisions outlined under the Public Employees’ Pension Reform Act of 2013 (PEPRA). The City of Hollister, through this action, is working with CalPERS to ensure ongoing pension contract compliance.

FISCAL IMPACT: None – The taking of this action and amending the pension contract will not require a charge to the City.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. Resolution of Intention

2. Exhibit- Amendment to Contract to include Public Employees’ Pension Reform Act Language

3. Ordinance authorizing an amendment to the contract between the City of Hollister and the Board of Administration of the Public Employees’ Retirement System

4. Email communication between CalPERS and the City of Hollister

5. Certification of Governing Body’s Action

ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF HOLLISTER AND THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES’

RETIREMENT SYSTEM
WHEREAS, the City entered into a contract with the California Public Employees’ Retirement System (CalPERS) in 1962 and numerous amendments since that date; and WHEREAS, an amendment to the CalPERS contract is needed.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF HOLLISTER DOES ORDAIN AS FOLLOWS:

Section 1.

That an amendment to the contract between th e City Council of the City of Hollister and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full.

Section 2.

The City Manager of the City of Hollister is hereby authorized, empowered, and directed to execute said amendment for and on behalf of the said Agency.

Section 3.

The City Clerk has prepared and published, at least five days before the date of adoption, a summary of this ordinance once in a newspaper of general circulation printed and published in San Benito County and circulated in the City of Hollister and thenceforth and thereafter the same shall be in full force and effect.

Section 4.

This Ordinance shall take effect 30 days after the date of its adoption by the City Council of the City of Hollister.

Adopted and approved this 15th day of December.

____________________________, Presiding Officer
Attest:
_________________, Clerk

1 Subject:Request to Amend Pension Contract to Include PEPRA Provisions P.O. Box 942715 Sacramento, CA
94229-2715
888 CalPERS (or 888-225-7377)
TTY: (877) 249-7442
www.calpers.ca.gov
California Public Employees’ Retirement System
September 19, 2025
Brett I Miller
City of Hollister
Subject: Request to Amend Pension Contract to Include PEPRA Provisions Dear Brett,
The purpose of this letter is to request that your agency amend its pension contract with the California Public Employees’ Retirement System (CalPERS) to incorporate the language reflecting the new provisions outlined under the Public Employees’ Pension Reform Act of 2013 (PEPRA).

In 2013, CalPERS implemented mandated benefit formulas to align with the changes set forth by PEPRA.

These include reduced benefit formulas and increased retirement age provisions, resulting in new defined benefit formulas for all new miscellaneous (non-safety) and safety members. At the time of the implementation, no formal contract amendment was required for our contracting agencies. However, since then, many agencies have amended their contracts to include the PEPRA language. According to our records, your agency has not amended its contract to reflect these changes.

CalPERS would like to work with your agency to amend your contract within the next year to ensure that the contract aligns with the changes under PEPRA. To initiate the process of amending the contract, please email the Pension Contract Program staff at [email protected].

For more information on PEPRA and its impact on current and future CalPERS members, please visit the Pension Reform Impacts page on the CalPERS website at www.calpers.ca.gov .

If you have any questions or concerns regarding this request, please contact us directly at (916) 795- 1024 or via email at [email protected].

Sincerely,
You don't often get email from [email protected]. Learn why this is important

2 Melody Benavides, Chief
Pension Contracts & Prefunding Programs Division
Financial Office

CalPERS-CON-12 Page 1 of 1
California Public Employees’ Retirement System www.calpers.ca.gov Financial Office | Pension Contracts & Prefunding Programs Division 888 CalPERS (or 888-225-7377) P.O. Box 942715, Sacramento, CA 94229-2715 TTY: (877) 249-7442

Certification of Governing Body’s Action
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the ____________________________________________________________________ of the (governing body)
_________________________________________________________________________ (public agency)
on ________________________.
(date)
_______________________________________
Clerk/Secretary
_______________________________________
Title

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: November 17, 2025
REPORT # City Manager-2025-50

AGENDA ITEM: A RESOLUTION AUTHORIZING THE CITY TO PARTNER WITH

THE COUNCIL OF SAN BENITO COUNTY GOVERNMENTS (SBCOG) ON A GRANT

APPLICATION FOR CALTRANS FUNDING

DEPARTMENT: City Manager
DEPARTMENT HEAD: Jim Pia, Interim City Manager
STAFF CONTACT: Jim Pia, Interim City Manager

RECOMMENDED ACTION: Adopt a resolution authorizing the City of Hollister to be a co-sponsor with the Council of San Benito County Governments (SBCOG) on the Caltrans grant application that offers community benefits and budget savings.

DISCUSSION: The call for applications was released on September 8, 2025. Caltrans released the guidelines for the upcoming grant cycle of the Sustainable Transportation Planning Grant program (STPG). The FY 26/27 program will award approximately $3 4.5 million in grants statewide. Through coordination at the Council of San Benito County Governments (SBCOG) Technical Advisory Committee (TAC), one priority grant application was identified:

 Zero Emission Bus (ZEB) Clean Fuel Path Strategy

Attachment 1 describes the significant countywide benefits of the grant proposal, as well as the important budget savings for the City of Hollister. The grant is necessary work that fulfills state requirements, so any Caltrans grant funding received will save San Benito County Governments from having to spend locally derived funds to complete these required plans. SBCOG staff will be providing an update to their Board of Directors on November 20, 2025, regarding this matter.

The Caltrans STPG is highly competitive, and the selection criteria favor inter-agency partnerships in choosing award winners. Because of this, SBCOG and the City of Hollister co-sponsoring the grant is a perfect opportunity for both agencies to demonstrate a strong partnership and increase the chances of funding from Caltrans for this important work.

FISCAL IMPACT: None – the local match for the Caltrans grant will be an in-kind staff report from SBCOG staff.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Project Description for the SBCOG & City of Hollister Sponsored Grant Application

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AUTHORIZING A PARTNERSHIP WITH THE COUNCIL OF SAN BENITO

COUNTY GOVERNMENTS (SBCOG) ON A GRANT APPLICATION FOR

CALTRANS FUNDING

WHEREAS, the Council of San Benito County Governments (SBCOG) is requesting to partner on a grant application for Caltrans funding for the upcoming grant cycle; and

WHEREAS, the FY 26/27 program will award approximately $34.5 million in grants statewide; through coordination at the SBCOG Technical Advisory Committee (TAC), one priority grant application was identified – Zero Emission Bus (ZEB) Clean Fuel Path Strategy; and

WHEREAS, the grant is necessary work that fulfills state requirements, so any Caltrans grant funding received will save SBCOG from having to spend locally derived funds to complete these required plans; and

WHEREAS, SBCOG and the City of Hollister co-sponsoring the grant is a perfect opportunity for both agencies to demonstrate a strong partnership and increase the chances of funding from Caltrans for this important work.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister approves partnering on a grant application for Caltrans funding with the San Benito County Governments for the Zero Emission Bus Clean Fuel Path Strategy.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on November 17, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Jennifer Thompson, City Attorney

Resolution No. 2025-XX

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on November 17, 2025 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on November 17, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

Attachment 1: Project Description for the SBCOG & City of Hollister Sponsored Grant Application
Zero Emission Bus (ZEB) Clean Fuel Path Strategy
- $180,000 requested from Caltrans’ Sustainable Communities grant category The San Benito County Local Transportation Authority (LTA) and the City of Hollister seek funding to develop a comprehensive Zero Emissions Bus (ZEB) Clean Fuel Path Strategy. This initiative aims to effectively address the future needs and challenges of transitioning to a fully zero -emissions bus fleet. The LTA aims to develop a plan that evaluates various types of potential zero -emission vehicles, assesses the local energy infrastructure needed to support charging technologies, and outlines a schedule for fleet transition. This plan will identify key milestones and projects in the transition process including the timing of infrastructure installation, bus procurement, and staff training.

Additionally, the LTA strives to produce a plan that accounts for possible transition obstacles as well as state and federal regulations and mandates.

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: November 17, 2025
REPORT # Police-2025-13

AGENDA ITEM: A RESOLUTION APPROVING THE APPROPRIATION OF

WELLNESS GRANT FUNDS FOR THE PURCHASE OF MACHINERY AND

EQUIPMENT RELATED TO OFFICER WELLNESS

DEPARTMENT: Police
DEPARTMENT HEAD: Carlos Reynoso, Police Chief
STAFF CONTACT: Carlos Reynoso, Police Chief

RECOMMENDED ACTION: Adopt a resolution approving a budget appropriation in the amount of $28,000 from Fund 280 Wellness Grant.

DISCUSSION: In 2022, the California State Legislature approved a one-time legislative allocation to support law enforcement wellness and mental-health initiatives. This statewide funding allocation was provided to all police agencies in California, including municipal police departments, county sheriff departments, and special district law enforcement agencies.

The program is administered and overseen by the Board of State and Community Corrections (BSCC) under the California State Budget Peace Officer Wellness and Mental Health Grant Program. The BSCC’s role includes disbursement, reporting requirements, and compliance monitoring. The funding is intended to: improve mental- health support for officers, enhance wellness initiatives such as peer support, counseling, and resiliency programs, and provide agencies with flexibility to purchase eligible wellness-related equipment, resources, or technology.

The Hollister Police Department received $28,000 as part of this statewide allocation.

These funds are restricted for use only toward officer wellness and mental health and must be tracked and reported in accordance with BSCC grant guidelines. To appropriately utilize the funds and make eligible equipment purchases, budget appropriation is necessary. This appropriation will allow the Hollister Police Department to utilize the grant funds for eligible wellness and mental health equipment purchases to support sworn personnel.

FISCAL IMPACT:

Approval of this item will allow:
• Appropriation of $28,000 from Account 280 – Officer Wellness and Mental Health Grant

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Budget Adjustment Form

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING THE APPROPRIATION OF WELLNESS GRANT FUNDS

FOR THE PURCHASE OF MACHINERY AND EQUIPMENT RELATED

TO OFFICER WELLNESS

WHEREAS, the BSCC Officer Wellness and Mental Health Grant provides grant funds to local law enforcement agencies, and has allocated $28,000 to the Hollister Police Department for the 2023 grant period; and

WHEREAS, the BSCC Officer Wellness and Mental Health Grant allocated these funds to allow the Hollister Police Department to implement or expand officer wellness resources; and

WHEREAS, in accordance with Assembly Bill 178, Chapter 45, Officer Wellness and Mental Health Grant funding has been made available to all cit y and county law enforcement agencies employing officers described in Section 830.1 of the Penal Code .

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister hereby authorizes the appropriation of $28,000 for BSCC Officer Wellness.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on November 17, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Jennifer P. Thompson, City Attorney

Resolution No. 2025-XX

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on November 17, 2025, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on November 17, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

BUDGET ADJUSTMENT REQUEST FORM
Fiscal Year: 25-26 Prepared By:R. Betanio Date:7-Nov-25 DH Approval:C. Reynoso, Chief of Police
Fund Cost Center Account Number Account Title Project Code Increase Decrease 280 2500 750070 Machinery & Equipment 28,000.00
Summary and Justification:The Hollister Police Department received $28k from the State of California for Officer Wellness and Mental Date: BA Entered By:

Date:Date:

Res. No.:Date Approved: Journal No.

FOR FINANCE USE ONLY:

Approvals
(Round up to the nearest dollar)
Health is monitored by BSCC. An increase of $28k in Machinery and Equipment to purchase Wellness equipment for police officers.
*Route to Finance, for review, prior to approvals.

Finance Review:

City Manager Approval:

City Council Approval:

1. Transfers between and within classifications of expenditures (i.e. between Salaries and Services and Supplies or between Professional Services and Office Supplies) must be approved by the City Manager.

2. Transfers between funds must be approved by the City Council.

3. Increase in budget needs to be offset by an additional revenue source or available fund balance.

7.29.24Page 139 of 158

BUDGET ADJUSTMENT REQUEST FORM

7.29.24Page 140 of 158

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: November 17, 2025
REPORT # Community Development-2025-69

AGENDA ITEM: A RESOLUTION APPROVING A JOINT POWERS AGREEMENT

WITH CALIFORNIA MUNICIPAL FINANCING AUTHORITY(CMFA) AND

APPROVING CONDUIT FINANCING FOR THE PROSPECT SENIOR AVENUE, PROSPECT VILLA 1, PROSPECT VILLA II APARTMENTS AFFORDABLE

HOUSING PROJECT THROUGH THE CMFA

DEPARTMENT: Community Development
DEPARTMENT HEAD: Rod Powell, Assistant City Manager
STAFF CONTACT: Jamila Saqqa, Housing Programs Coordinator

RECOMMENDED ACTION:

1. Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the “Code”) in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the “CMFA:”), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $12,000,000, (the “Bonds”) to: (1) finance or refinance the acquisition, rehabilitation, improvement and equipping of the following multifamily rental housing projects: i) Prospect Avenue Senior, located at 190 East Park Street, Hollister, California, consisting of 20 units (Bond proceeds in an amount not to exceed $2,105,000); ii) Prospect Villa I, located at 998 Prospect Avenue, Hollister, California, consisting of 14 units (Bond proceeds in an amount not to exceed $1,590,000); and iii) Prospect Villa III, located at 960 Prospect Avenue, Hollister, California (the “City”), consisting of 30 units (Bond proceeds in an amount not to exceed $5,305,000); and (2) pay certain expenses incurred in connection with the issuance of the Bonds; and

2. Adopt the resolution to become a member of the CMFA and to approve the financing of the Project by the CMFA and approving the issuance of the Bonds by the CMFA for the benefit of Hollister Investment Group, LP (the “Borrower”), to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following). The resolution will also authorize the Mayor or designee thereof to execute the Joint Exercise of Powers Agreement with the CMFA.

DISCUSSION: The Borrower requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $12,000,000 of tax -exempt revenue bonds. The proceeds of the Bonds will be used to: (1) finance or refinance the acquisition, rehabilitation, improvement and equipping of the following multifamily rental housing projects: i) Prospect Avenue Senior, located at 190 East Park Street, Hollister, California, consisting of 20 units (Bond proceeds in an amount not to exceed $2,105,000); ii) Prospect Villa I, located at 998 Prospect Avenue, Hollister, California, consisting of 14 units (Bond proceeds in an amount not to exceed $1,590,000); and iii) Prospect Villa III, located at 960 Prospect Avenue, Hollister, California (the “City”), consisting of 30 units (Bond proceeds in an amount not to exceed $5,305,000); and (2) pay certain expenses incurred in connection with the issuance of the Bonds.

In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City must conduct a public hearing (the “TEFRA Hearing”) providing the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

California Municipal Finance Authority:

The CMFA was created on January 1, 2004, pursuant to a joint exercise of powers agreement to promote economic, cultural, and community development through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities have become members of CMFA.

The CMFA was formed to assist local governments, non-profit organizations, and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financing.

Execution of the Joint Exercise of Powers Agreement:

For the CMFA to have the authority to serve as the issuer of the bonds for the Project, it is necessary for the City to become a member of the CMFA. Attached to this report is a copy of the Joint Exercise of Powers Agreement to be executed by a designated signatory of the City.

The Joint Exercise of Powers Agreement provides that the CMFA is a public entity, separate and apart from each member executing such agreement. The debts, liabilities , and obligations of the CMFA do not constitute debts, liabilities , or obligations of the members executing such agreement.

The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project.

All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

There are no costs associated with membership in the CMFA and the City will in no way become exposed to any financial liability by reason of its membership in the CMFA. In addition, participation by the City in the CMFA will not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution and executing the Joint Exercise of Powers Agreement of the CMFA, no other participation or activity of the City or the city council with respect to the issuance of the Bonds will be required.

The Joint Exercise of Powers Agreement expressly provides that any member may withdraw from such agreement upon written notice to the Board of Directors of the CMFA.

In the case of the proposed bond financing for the Borro wer, the City, following its

execution of the Joint Exercise of Powers Agreement, could, at any time following the issuance of the Bonds, withdraw from the CMFA by providing written notice to the Board of Directors of the CMFA.

FISCAL IMPACT: The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Hollister, it is expected that a portion of the issuance fee attributable to the City will be granted by the CMFA to the general fund of the City.

Such grant may be used for any lawful purpose of the City.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: Exempt

The report does not constitute a project under the California Environmental Quality Act (CEQA), and review under CEQA is not required. Furthermore, no Council action is required.

ATTACHMENTS:

1. Resolution

2. Joint Powers Agreement

JOINT EXERCISE OF POWERS AGREEMENT

RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY

THIS AGREEMENT, dated as of January 1, 2004, among the parties executing this Agreement (all such parties, except those which have withdrawn as provided herein, are referred to as the “Members” and those parties initially executing this Agreement are referred to as the “Initial Members”):

WITNESSETH

WHEREAS, pursuant to Title 1, Division 7, Chapter 5 of the California Government Code (in effect as of the date hereof and as the same may from time to time be amended or supplemented, the “Joint Exercise of Powers Act”), two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and

WHEREAS, each of the Members is a “public agency” as that term is defined in Section 6500 of the Joint Exercise of Powers Act; and

WHEREAS, each of the Members is empowered by law to promote economic, cultural and community development, including, without limitation, the promotion of opportunities for the creation or retention of employment, the stimulation of economic activity, the increase of the tax base, and the promotion of opportunities for education, cultural improvement and public health, safety and general welfare; and

WHEREAS, each of the Members may accomplish the purposes and objectives described in the preceding preamble by various means, including through making grants, loans or providing other financial assistance to governmental and nonprofit organizations; and

WHEREAS, each Member is also empowered by law to acquire and dispose of real property for a public purpose; and

WHEREAS, the Joint Exercise of Powers Act authorizes the Members to create a joint exercise of powers entity with the authority to exercise any powers common to the Members, as specified in this Agreement and to exercise the additional powers granted to it in the Joint Exercise of Powers Act and any other applicable provisions of the laws of the State of California; and

WHEREAS, a public entity established pursuant to the Joint Exercise of Powers Act is empowered to issue or execute bonds, notes, commercial paper or any other evidences of indebtedness, including leases or installment sale agreements or certificates of participation therein (herein “Bonds”), and to otherwise undertake financing programs under the Joint Exercise of Powers Act or other applicable provisions of the laws of the State of California to accomplish its public purposes; and

WHEREAS, the Members have determined to specifically authorize a public entity authorized pursuant to the Joint Exercise of Powers Act to issue Bonds pursuant to the Joint Exercise of Powers Act or other applicable provisions of the laws of the State of California; and

WHEREAS, it is the desire of the Members to use a public entity established pursuant to the Joint Exercise of Powers Act to undertake the financing and/or refinancing of projects of any nature, including, but not limited to, capital or working capital projects, insurance, liability or retirement programs or facilitating Members use of existing or new financial instruments and mechanisms; and

WHEREAS, it is further the intention of the Members that the projects undertaken will result in significant public benefits to the inhabitants of the jurisdictions of the Members; and

WHEREAS, by this Agreement, each Member desires to create and establish the “California Municipal Finance Authority” for the purposes set forth herein and to exercise the powers provided herein;

NOW, THEREFORE, the Members, for and in consideration of the mutual promises and agreements herein contained, do agree as follows:

Section 1. Purpose.

This Agreement is made pursuant to the provisions of the Joint Exercise of Powers Act.

The purpose of this Agreement is to establish a public entity for the joint exercise of powers common to the Members and for the exercise of additional powers given to a joint powers entity under the Joint Powers Act or any other applicable law, including, but not limited to, the issuance of Bonds for any purpose or activity permitted under the Joint Exercise of Powers Act or any other applicable law. Such purpose will be accomplished and said power exercised in the manner hereinafter set forth.

Section 2. Term.

This Agreement shall become effective in accordance with Section 17 as of the date hereof and shall continue in full force and effect until such time as it is ter minated in writing by all the Members; provided, however, that this Agreement shall not terminate or be terminated until all Bonds issued or caused to be issued by the Authority (defined below) shall no longer be outstanding under the terms of the indenture, trust agreement or other instrument pursuant to which such Bonds are issued, or unless a successor to the Authority assumes all of the Authority’s debts, liabilities and obligastions.

Section 3. Authority.

A. CREATION AND POWERS OF AUTHORITY.

Pursuant to the Joint Exercise of Powers Act, there is hereby created a public entity to be known as the “California Municipal Finance Authority” (the “Authority”), and said Authority shall be a public entity separate and apart from the Members. Its

debts, liabilities and obligations do not constitute debts, liabilities or obligations of any Members.

B. BOARD.

The Authority shall be administered by the Board of Directors (the “Board,” or the “Directors” and each a “Director”) of the California Foundation for Stronger Communities, a nonprofit public benefit corporation organized under the laws of the State of California (the “Foundation”), with each such Director serving in his or her individual capacity as a Director of the Board. The Board shall be the administering agency of this Agreement and, as such, shall be vested with the powers set forth herein, and shall administer this Agreement in accordance with the purposes and functions provided herein. The number of Directors, the appointment of Directors, alternates and successors, their respective terms of office, and all other provisions relating to the qualification and office of the Directors shall be as provided in the Articles and Bylaws of the Foundation, or by resolution of the Board adopted in accordance with the Bylaws of the Foundation.

All references in this Agreement to any Director shall be deemed to refer to and include the applicable alternate Director, if any, when so acting in place of a regularly appointed Director.

Directors may receive reasonable compensation for serving as such, and shall be entitled to reimbursement for any expenses actually incurred in connection with serving as a Director, if the Board shall determine that such expenses shall be reimbursed and there are unencumbered funds available for such purpose.

The Foundation may be removed as administering agent hereunder and replaced at any time by amendment of this Agreement approved as provided in Section 16; provided that a successor administering agent of this Agreement has been appointed and accepted its duties and responsibilities under this Agreement.

C. OFFICERS; DUTIES; OFFICIAL BONDS.

The officers of the Authority shall be the Chair, Vice-Chair, Secretary and Treasurer (defined below). The Board, in its capacity as administering agent of this Agreement, shall elect a Chair, a Vice-Chair, and a Secretary of the Authority from among Directors to serve until such officer is re-elected or a successor to such office is elected by the Board. The Board shall appoint one or more of its officers or employees to serve as treasurer, auditor, and controller of the Authority (the “Treasurer”) pursuant to Section 6505.6 of the Joint Exercise of Powers Act to serve until such officer is re-elected or a successor to such office is elected by the Board.

Subject to the applicable provisions of any resolution, indenture, trust agreement or other instrument or proceeding authorizing or securing Bonds (each such resolution, indenture, trust agreement, instrument and proceeding being herein referred to as an “Indenture”) providing for a trustee or other fiscal agent, and except as may otherwise be

specified by resolution of the Board, the Treasurer is designated as the depositary of the Authority to have custody of all money of the Authority, from whatever source derived and shall have the powers, duties and responsibilities specified in Sections 6505, 6505.5 and 6509.5 of the Joint Exercise of Powers Act.

The Treasurer of the Authority is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond with the Secretary of the Authority in the amount specified by resolution of the Board but in no event less than $1,000.

The Board shall have the power to appoint such other officers and employees as it may deem necessary and to retain independent counsel, consultants and accountants.

The Board shall have the power, by resolution, to the extent permitted by the Joint Exercise of Power Act or any other applicable law, to delegate any of its functions to one or more of the Directors or officers, employees or agents of the Authority and to cause any of said Directors, officers, employees or agents to take any actions and execute any documents or instruments for and in the name and on behalf of the Board or the Authority.

D. MEETINGS OF THE BOARD.
(1) Ralph M. Brown Act.

All meetings of the Board, including, without limitation, regular, adjourned regular, special, and adjourned special meetings shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section 54950 of the Government Code of the State of California), or any successor legislation hereinafter enacted (the “Brown Act”).

(2) Regular Meetings.

The Board shall provide for its regular meetings; provided, however, it shall hold at least one regular meeting each year. The date, hour and place of the holding of the regular meetings shall be fixed by resolution of the Board. To the extent permitted by the Brown Act, such meetings may be held by telephone conference.

(3) Special Meetings.

Special meetings of the Board may be called in accordance with the provisions of Section 54956 of the Government Code of the State of California. To the extent permitted by the Brown Act, such meetings may be held by telephone conference.

(4) Minutes.

The Secretary of the Authority shall cause to be kept minutes of the regular, adjourned regular, special, and adjourned special meetings of the Board and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each Director.

(5) Quorum.

A majority of the Board shall constitute a quorum for the transaction of business. No action may be taken by the Board except upon the affirmative vote of a majority of the Directors constituting a quorum, except that less than a quorum may adjourn a meeting to another time and place.

E. RULES AND REGULATIONS.

The Authority may adopt, from time to time, by resolution of the Board such rules and regulations for the conduct of its meetings and affairs as may be required.

Section 4. Powers.

The Authority shall have the power, in its own name, to exercise the common powers of the Members and to exercise all additional powers given to a joint powers entity under any of the laws of the State of California, including, but not limited to, the Joint Exercise of Powers Act, for any purpose authorized under this Agreement. Such powers shall include the common powers specified in this Agreement and may be exercised in the manner and according to the method provided in this Agreement. The Authority is hereby authorized to do all acts necessary for the exercise of such power, including, but not limited to, any of all of the following: to make and enter into contracts; to employ agents and employees; to acquire, construct, provide for maintenance and operation of, or maintain and operate, any buildings, works or improvements; to acquire, hold or dispose of property wherever located; to incur debts, liabilities or obligations; to receive gifts, contributions and donations of property, funds, services, and other forms of assistance from person, firms, corporations and any governmental entity; to sue and be sued in its own name; to make grants, loans or provide other financial assistance to governmental and nonprofit organizations (e.g., the Members or the Foundation) to accomplish any of its purposes; and generally to do any and all things necessary or convenient to accomplish its purposes.

Without limiting the generality of the foregoing, the Authority may issue or cause to be issued Bonds, and pledge any property or revenues as security to the extent permitted under the Joint Exercise of Powers Act, or any other applicable provision of law; provided, however, the Authority shall not issue Bonds with respect to any project located in the jurisdiction of one or more Members unless the governing body of any such Member, or its duly authorized representative, shall approve, conditionally or unconditionally, the project, including the issuance of Bonds therefor. Such approval may be evidenced by resolution, certificate, order, report or such other means of written approval of such project as may be selected by the Member (or its authorized representative) whose approval is required. No such approval shall be required in

connection with Bonds that refund Bonds previously issued by the Authority and approved by the governing board of a Member.

The manner in which the Authority shall exercise its powers and perform its duties is and shall be subject to the restrictions upon the manner in which a California general law city could exercise such powers and perform such duties. The manner in which the Authority shall exercise its powers and perform its duties shall not be subject to any restrictions applicable to the manner in which any other public agency could exercise such powers or perform such duties, whether such agency is a party to this Agreement or not.

Section 5. Fiscal Year.

For the purposes of this Agreement, the term “Fiscal Year” shall mean the fiscal year as established from time to time by resolution of the Board, being, at the date of this Agreement, the period from July 1 to and including the following June 30, except for the first Fiscal Year which shall be the period from the date of this Agreement to June 30, 2004.

Section 6. Disposition of Assets.

At the end of the term hereof or upon the earlier termination of this Agreement as set forth in Section 2, after payment of all expenses and liabilities of the Authority, all property of the Authority both real and personal shall automatically vest in the Members in the manner and amount determined by the Board in its sole discretion and shall thereafter remain the sole property of the Members; provided, however, that any surplus money on hand shall be returned in proportion to the contributions made by the Members.

Section 7. Bonds.

From time to time the Authority shall issue Bonds, in one or more series, for the purpose of exercising its powers and raising the funds necessary to carry out its purposes under this Agreement.

The services of bond counsel, financing consultants and other consultants and advisors working on the projects and/or their financing shall be used by the Authority. The expenses of the Board shall be paid from the proceeds of the Bonds or any other unencumbered funds of the Authority available for such purpose.

Section 8. Bonds Only Limited and Special Obligations of Authority.

The Bonds, together with the interest and premium, if any, thereon, shall not be deemed to constitute a debt of any Member or pledge of the faith and credit of the Members or the Authority. The Bonds shall be only special obligations of the Authority, and the Authority shall under no circumstances be obligated to pay the Bonds except from revenues and other funds pledged therefor. Neither the Members nor the Authority shall be obligated to pay the principal of, premium, if any, or interest on the Bonds, or other costs incidental thereto, except from the revenues and funds pledged therefor, and neither the faith and credit nor the taxing power of the Members nor the faith and credit of the Authority shall be pledged to the payment of the

principal of, premium, if any, or interest on the Bonds nor shall the Members or the Authority in any manner be obligated to make any appropriation for such payment.

No covenant or agreement contained in any Bond or related document shall be deemed to be a covenant or agreement of any Director, or any officer, employee or agent of the Authority in his or her individual capacity and neither the Board of the Authority nor any Director or officer thereof executing the Bonds shall be liable personally on any Bond or be subject to any personal liability or accountability by reason of the issuance of any Bonds.

Section 9. Accounts and Reports.

All funds of the Authority shall be strictly accounted for. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice and by any provision of any Indenture (to the extent such duties are not assigned to a trustee of Bonds).

The books and records of the Authority shall be open to inspection at all reasonable times by each Member.

The Treasurer of the Authority shall cause an independent audit to be made of th e books of accounts and financial records of the Authority by a certified public accountant or public accountant in compliance with the provisions of Section 6505 of the Joint Exercise of Powers Act. In each case the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California and shall conform to generally accepted auditing standards. When such an audit of accounts and records is made by a certified public accountant or public accountant, a report thereof shall be filed as a public record with each Member and also with the county auditor of each county in which a Member is located; provided, however, that to the extent permitted by law, the Authority may, instead of filing such report with each Member and such county auditor, elect to post such report as a public record electronically on a website designated by the Authority. Such report if made shall be filed within 12 months of the end of the Fiscal Year or Years under examination.

The Treasurer is hereby directed to report in writing on the first day of July, October, January, and April of each year to the Board and the Members which report shall describe the amount of money held by the Treasurer for the Authority, the amount of receipts since the last such report, and the amount paid out since the last such report (which may exclude amounts held by a trustee or other fiduciary in connection with any Bonds to the extent that such trustee or other fiduciary provided regular reports covering such amounts.)

Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants in making an audit pursuant to this Section, shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for that purpose.

In any Fiscal Year the Board may, by resolution adopted by unanimous vote, replace the annual special audit with an audit covering a two-year period.

Section 10. Funds.

Subject to the applicable provisions of any Indenture, which may provide for a trustee or other fiduciary to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds pursuant to the accounting procedures developed under Sections 3.C and 9, and shall make the disbursements required by this Agreement or otherwise necessary to carry out any of the provisions of purposes of this Agreement.

Section 11. Notices.

Notices and other communications hereunder to the Members shall be sufficient if delivered to the clerk of the governing body of each Member; provided, however, that to the extent permitted by law, the Authority may, provide notices and other communications and postings electronically (including, without limitation, through email or by posting to a website).

Section 12. Additional Members/Withdrawal of Members.

Qualifying public agencies may be added as parties to this Agreement and become Members upon: (1) the filing by such public agency with the Authority of an executed counterpart of this Agreement, together with a copy of the resolution of the governing body of such public agency approving this Agreement and the execution and delivery hereof; and (2) adoption of a resolution of the Board approving the addition of such public agency as a Member.

Upon satisfaction of such conditions, the Board shall file such executed counterpart of this Agreement as an amendment hereto, effective upon such filing.

A Member may withdraw from this Agreement upon written notice to the Board; provided, however, that no such withdrawal shall result in the dissolution of the Authority so long as any Bonds remain outstanding. Any such withdrawal shall be effective only upon receipt of the notice of withdrawal by the Board which shall acknowledge receipt of such notice of withdrawal in writing and shall file such notice as an amendment to this Agreement effective upon such filing.

Section 13. Indemnification.

To the full extent permitted by law, the Board may authorize indemnification by the Authority of any person who is or was a Director or an officer, employee of other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a Director or an officer, employee or other agent of the Authority, against expenses, including attorneys fees, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful and, in the case of an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances.

Section 14. Contributions and Advances.

Contributions or advances of public funds and of the use of personnel, equipment or property may be made to the Authority by the Members for any of the purposes of this Agreement. Payment of public funds may be made to defray the cost of any such contribution or advance. Any such advance may be made subject to repayment, and in such case shall be repaid, in the manner agreed upon by the Authority and the Member making such advance at the time of such advance. It is mutually understood and agreed to that no Member has any obligation to make advances or contributions to the Authority to provide for the costs and expenses of administration of the Authority, even though any Member may do so. The Members understand and agree that a portion of the funds of the Authority that otherwise may be allocated or distributed to the Members may instead be used to make grants, loans or provide other financial assistance to governmental units and nonprofit organizations (e.g., the Foundation) to accomplish any of the governmental unit’s or nonprofit organization's purposes.

Section 15. Immunities.

All of the privileges and immunities from liabilities, exemptions from laws, ordinances and rules, and other benefits which apply to the activity of officers, agents or employees of Members when performing their respective functions within the territorial limits of their respective public agencies, shall apply to the same degree and extent to the Directors, officers, employees, agents or other representatives of the Authority while engaged in the performance of any of their functions or duties under the provisions of this Agreement.

Section 16. Amendments.

Except as provided in Section 12 above, this Agreement shall not be amended, modified, or altered, unless the negative consent of each of the Members is obtained. To obtain the negative consent of each of the Members, the following negative consent procedure shall be followed: (a) the Authority shall provide each Member with a notice at least sixty (60) days prior to the date such proposed amendment is to become effective explaining the nature of such proposed amendment and this negative consent procedure; (b) the Authority shall provide each Member who did not respond a reminder notice with a notice at least thirty (30) days prior to the date such proposed amendment is to become effective; and (c) if no Member objects to the proposed amendment in writing within sixty (60) days after the initial notice, the proposed amendment shall become effective with respect to all Members.

Section 17. Effectiveness.

This Agreement shall become effective and be in full force and effect and a legal, valid and binding obligation of each of the Members on the date that the Board shall have received from two of the Initial Members an executed counterpart of this Agreement, together with a certified copy of a resolution of the governing body of each such Initial Member approving this Agreement and the execution and delivery hereof.

Section 18. Partial Invalidity.

If any one or more of the terms, provisions, promises, covenants or conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, each and all of the remaining terms, provisions, promises, covenants and conditions of this Agreement shall not be affected thereby, and shall be valid and enforceable to the fullest extent permitted by law.

Section 19. Successors.

This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. Except to the extent expressly provided herein, no Member may assign any right or obligation hereunder without the consent of the other Members.

Section 20. Miscellaneous.

This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

The section headings herein are for convenience only and are not to be construed as modifying or governing the language in the section referred to.

Wherever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld.

This Agreement shall be governed under the laws of the State of California.

This Agreement is the complete and exclusive statement of the agreement among the Members, which supercedes and merges all prior proposals, understandings, and other agreements, whether oral, written, or implied in conduct, between and among the Members relating to the subject matter of this Agreement.

IN WITNESS WHEREOF, the City of Hollister has caused this Agreement to be executed and attested by its duly authorized representatives as of the day of , 2025.

Member:

CITY OF HOLLISTER

By
Name:

Title:

ATTEST:

By
Name:

Title:

RESOLUTION NO. 2025-XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF A

JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE

CALIFORNIA MUNICIPAL FINANCE AUTHORITY AND APPROVING

THE ISSUANCE OF EXEMPT FACILITY BONDS FOR A QUALIFIED

RESIDENTIAL RENTAL PROJECT BY THE AUTHORITY FOR THE

PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION,

REHABILITATION AND IMPROVEMENT OF CERTAIN FACILITIES

FOR THE BENEFIT OF HOLLISTER INVESTMENT GROUP, LP
WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”), certain public agencies (the “Members”) have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”) in order to form the California Municipal Finance Authority (the “Authority”), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and
WHEREAS, the City of Hollister (the “City”), has determined that it is in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefor by the Authority; and WHEREAS, there is now before this City Council (the “City Council”) the form of the Agreement; and
WHEREAS, the Agreement has been filed with the City, and the members of the City Council, with the assistance of its staff, have reviewed said document; and WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing the construction, acquisition and rehabilitation of capital projects; and
WHEREAS, Hollister Investment Group, LP (the “Borrower”) a partnership of which Community Preservation Partners (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $12,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, rehabilitation, improvement and equipping of the following multifamily rental housing projects: i) Prospect Avenue Senior, located at 190 East Park Street, Hollister, California,

Resolution No. 2025-XX

consisting of 20 units (Bond proceeds in an amount not to exceed $2,105,000); ii) Prospect Villa I, located at 998 Prospect Avenue, Hollister, California, consisting of 14 units (Bond proceeds in an amount not to exceed $1,590,000); and iii) Prospect Villa III, located at 960 Prospect Avenue, Hollister, California, consisting of 30 units (Bond proceeds in an amount not to exceed $5,305,000) (the “Project”); and WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Code, requires that an “applicable elected representative” of the governmental unit, the geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the Bonds following such hearing; and WHEREAS, the Authority has determined that the City Council is an “applicable elected representative” for purposes of holding such hearing; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and, the requirements of Section 4 of the Agreement; and
WHEREAS, notice of such public hearing has been duly given as required by the Code, and this City Council has heretofore held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the financing or refinancing of the Project and the Authority’s issuance of the Bonds therefore; and
WHEREAS, it is in the public interest and for the public benefit that the City Council approves the issuance of the Bonds by the Authority for the aforesaid purposes.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, AS
FOLLOWS:

Section 1. The foregoing recitals are true and correct.

Section 2. The Agreement is hereby approved and the Mayor or the designee thereof is hereby authorized and directed to execute said document, and the City Clerk or such Clerk’s designee is hereby authorized and directed to attest thereto.

Section 3. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitutes approval of the issuance of the Bonds (a) by the “applicable elected representative” of the governmental unit having jurisdiction over the area in which the Project is located in accordance with Section 147(f) of the Code and; (b) by the City Council in accordance with Section 4 of the Agreement.

Section 4. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party.

The City shall have no responsibility or liability whatsoever with respect to the Bonds.

Resolution No. 2025-XX

Section 5. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

Section 6. The executing officers(s), the City Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized.

Section 7. The City Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel:

Ronald E. Lee, Esq.

Jones Hall, LLP
4 West Fourth Avenue, Suite 406
San Mateo, CA 94402

Section 8. This resolution shall take effect immediately upon its passage.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on November 17, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Jennifer P. Thompson, City Attorney

Resolution No. 2025-XX

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby ce rtify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on November 17, 2025 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on November 17, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister