Kerman City Council
June 11, 2025

CITY COUNCIL REGULAR MEETING AGENDA
Wednesday, June 11, 2025 at 6:00 PM
Kerman City Hall, 850 S. Madera Avenue, Kerman, CA 93630 LEVINE ACT DISCLOSURE. Pursuant to the Levine Act (Govt Code Section 84308), any party to a permit, license, contract, or other entitlement before the City Council is required to disclose on the record any campaign contribution, including aggregated contributions, of more than $500 made by the party or the party’s agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure should be made when the agenda item is called and must include the name of the party, participant, or agent, and any other person making the contribution, the name of the recipient, the amount of the contribution, and the date the contribution was made. Council Members are also required to make such disclosures and recuse themselves.

CONFLICT OF INTEREST. City Council Members with a conflict of interest under the Political Reform Act are required to make disclosure of financial interest when the item is called and recuse themselves.

TELECONFERENCED MEETING. Council Member Herrera will attend the meeting via teleconference.

Teleconference Location: Hampton Inn El Centro, 598 E. Wake Avenue, El Centro, CA 92243 This agenda will be posted at the teleconference location and members of the public may address the Council from the teleconference location.

1. OPENING CEREMONIES
A. Call to Order
B. Roll Call
C. Invocation
D. Flag Salute

2. AGENDA APPROVAL/ADDITIONS/DELETIONS
To accommodate members of the public or convenience in the order of presentation, items on the agenda may not be presented or acted upon in the order listed.

3. PRESENTATIONS/CEREMONIAL MATTERS
A. Proclamation - Small Cities Month
1 4. PUBLIC FORUM (for matters not on agenda)
This portion of the meeting is reserved for members of the public to address the Council on items of interest that are not on the Agenda and are within the subject matter jurisdiction of the Council.

Speakers shall be limited to three minutes. It is requested that no comments be made during this period on items on the Agenda. Members of the public wishing to address the Council on items on the Agenda should notify the Mayor when that Agenda item is called, and the Mayor will recognize your discussion at that time. It should be noted that the Council is prohibited by law from taking any action on matters discussed that are not on the Agenda. Speakers are asked to please use the microphone, and provide their name and address.

5. CONSENT CALENDAR
Matters listed under the Consent Calendar are considered routine and will be enacted by one motion and one vote. There will be no separate discussion of these items. If discussion is desired, a member of the audience or a Council Member may request an item be removed from the Consent Calendar and it will be considered separately.

A. SUBJECT: Minutes - May 28, 2025
RECOMMENDATION: Council approve minutes as presented.

B. SUBJECT: Warrants (JA)

1. Nos.32112-32086 $350,558.99 ACH $287,711.58.

RECOMMENDATION: Council approve warrants and electronic bank transfers as presented. (Pursuant to Government Code 37208)
C. SUBJECT: Payroll (JA)
5/11/25 to 5/24/25: $239,908.27; Retro Pay & Other: $0.00; Overtime: $8,460.18; Holiday:
$0.00; Standby: $1,977.99; Comp Time Earned: 49.50
RECOMMENDATION: Council approve payroll as presented.

D. SUBJECT: Contract with Spectrum Energy Solutions for Solar Performance Analysis and Optimization (JAJ)
RECOMMENDATION: Council by motion adopt resolution approving contract with Spectrum Energy Solutions in the amount of $8,500 for Solar Performance Analysis/Optimization.

6. PUBLIC HEARINGS
None.
2 7. DEPARTMENT REPORTS
A. SUBJECT: Adoption of Fiscal Year 2025/2026 Budget, Amending Fiscal Year 2024/2025 Budget, Establishing Appropriations Limit for Fiscal Year 2025/2026 and Authorizing Number of Employee Positions and Titles (JA)
RECOMMENDATION: Council by motion adopt the following:

1. Resolution approving the City of Kerman Fiscal Year 2025/2026 Operating and Capital Budgets and amending the Fiscal Year 2024/2025 budget; and

2. Resolution establishing the Appropriations Limit for Fiscal year 2025/2026; and

3. Resolution authorizing number of employee positions and titles.

B. SUBJECT: Resolution Adopting the Fiscal Year 2025/2026 Kerman Public Finance Authority Budget (JA)
RECOMMENDATION: Council by motion approve resolution adopting Fiscal year 2025/2026 Kerman Public Finance Authority Budget.

C. SUBJECT: Approval of Common Use of Easement with Fresno Irrigation District for Vesting Tentative Tract No. 6447 (JG)
RECOMMENDATION: Council by motion adopt resolution approving the Common Use of Easement Agreement with Fresno Irrigation District for Tract No. 6447 and authorizing the City Manager to sign the agreements.

D. SUBJECT: Resolution Initiating Proceedings to Review Improvements and Establish Assessments, Pursuant to the Landscaping and Lighting Act of 1972, for the Annexation of Tract 6447 into Landscape and Lighting District No. 1, to Review the Improvements and Establish Assessments for Fiscal Year 2025-26 and to Set a Public Hearing (JG) RECOMMENDATION: Council by motion adopt the resolution to initiate proceedings pursuant to the Landscaping and Lighting Act of 1972 for the annexation of Tract 6447 into Landscape and Lighting District No. 1, to review the improvements and establish assessments for Fiscal Year 2025-2026 (FY25-26), and to set a public hearing for a future date.

E. SUBJECT: Consideration of Monthly Stipend for Members of the City Recreation Commission (JAJ)
RECOMMENDATION: Council by motion consider whether to adopt a resolution establishing a stipend per meeting for members of the Parks, Recreation, and Community Services Commission and to determine the amount of such stipend.

8. CITY MANAGER/STAFF COMMUNICATIONS
3 9. MAYOR/COUNCIL REPORTS/ANNOUNCEMENTS/FUTURE AGENDA ITEMS (This portion of the meeting is reserved for the Mayor and Council Members (i) to make brief reports on boards, committees, and other public agencies, and at public events, (ii) to request updates, (iii) to initiate future agenda items at the request of a Council Member, and (iv) to take action on matters initiated under this section of the agenda items. Under this section the Council may take action only on items specifically agendized and which meet other requirements for action.)

10. CLOSED SESSION
None.

11. ADJOURNMENT
NOTICE OF AVAILABILITY OF AGENDA MATERIALS: Any writings or documents provided to a majority of the City Council within 72 hours of the meeting regarding any item on this agenda will be made available for public inspection at the City Clerk’s Office located at 850 S. Madera Ave., Kerman, CA 93630 and on the City website at www.cityofkerman.net.

ADA Compliance and Reasonable Accommodation. The Council has adopted a Reasonable Accommodation Policy, which is available on the City website at www.cityofkerman.net or upon request by emailing the City Clerk at [email protected] or calling (559) 550-1414. The Policy provides a procedure for receiving and resolving requests for accommodation to participate in this meeting. If you need assistance in order to attend this Council meeting or require auxiliary aids or services, e.g., hearing aids or signing services to make a presentation to the Council, please contact the City Clerk at (559) 550-1414 or email at [email protected] so such aids or services can be arranged. Accommodations should be requested as early as possible as additional time may be required in order to provide the requested accommodation. The meeting room is accessible to persons with physical disabilities.

AGENDA POSTING CERTIFICATION
I, Dalia Santana-Zamudio, Deputy Clerk for the City of Kerman, do hereby declare under penalty of perjury that I caused the above agenda to be posted at City of Kerman Council Chambers at 850 S.

Madera Ave., Kerman, CA 93630 and on the City website at www.cityofkerman.net.

Date: June 6, 2025 /s/ Dalia Santana-Zamudio, Deputy Clerk 4 SMALL CITIES MONTH
WHEREAS, small cities and towns under 50,000 population are home to millions of Americans and constitute the vast majority of municipalities across the United States; and WHEREAS, small cities and towns strive to strengthen their communities through the provision of services and programs to improve the quality of life for all citizens; and WHEREAS, the federal government is an essential partner in the success of small cities and towns, and must be encouraged to continue to support programs and legislation that strengthen small communities; an
WHEREAS, state governments are partners in the success of small cities and towns, and must be encouraged to continue to support key programs and legislation that strengthen communities; and
WHEREAS, organizations, businesses, and citizens are partners in the success of small cities and towns, and must be encouraged to continue to grow their efforts to make small communities a viable choice for people to live in; and WHEREAS, during these challenging economic times, the need for a renewed intergovernmental partnership to support essential public services is more important than ever to ensure the safety and growth of small town America; and WHEREAS, the National League of Cities President and the Small Cities Council of the National League of Cities have declared June 2025 as Small Cities Month; NOW THEREFORE, BE IT PROCLAIMED, that the City Council of the City of Kerman declares June 2025, as Small Cities Month, and encourages President Trump, Congress, state governments, organizations, businesses, and all citizens to recognize this event, and to work together this month and throughout the year to invest in small cities and towns to better the lives of all citizens.

I have hereunto set my hand and caused the Official Seal of the City of Kerman to be affixed on this 11th day of June 2025.
________________________
Maria Pacheco
Mayor
5 Section 3, Item A.

CITY COUNCIL REGULAR MEETING MINUTES
Wednesday, May 28, 2025 at 6:00 PM
Kerman City Hall, 850 S. Madera Avenue, Kerman, CA 93630

1. OPENING CEREMONIES
A. Call to Order - 6:00 p.m.

B. Roll Call - All present.

C. Invocation - A moment of silence was observed.

D. Flag Salute - Performed.

2. AGENDA APPROVAL/ADDITIONS/DELETIONS
Motion made by Mayor Pro Tem Yep to move Item 7.A after Item 7.C and Seconded by Councilmember Herrera.

Ayes: Yep, Herrera, Hall, Dhaliwal, Pacheco
Noes: None
Abstain: None

Absent: None
Motion passes 5-0-0-0

3. PRESENTATIONS/CEREMONIAL MATTERS - None.

4. PUBLIC FORUM - None.

5. CONSENT CALENDAR
A. SUBJECT: Minutes - May 14, 2025
RECOMMENDATION: Council approve minutes as presented.

B. SUBJECT: Warrants (JA)

1. Nos.31880-32062 $1,977,262.35 ACH $71,665.06.

RECOMMENDATION: Council approve warrants and electronic bank transfers as presented. (Pursuant to Government Code 37208)
C. SUBJECT: Payroll (JA)
6 Section 5, Item A.
4/13/25 to 4/26/25: $249,843.53; Retro Pay & Other: $1.067.23; Overtime: $9.349.85; Standby: $1.682.03; Comp Time Earned: 36
4/27/25 to 5/10/25: $247,192.69; Retro Pay & Other: $12,671.05; Overtime: $8,835.90; Standby: $2,248.65; Comp Time Earned: 88.88
RECOMMENDATION: Council approve payroll as presented.

D. SUBJECT: Monthly Investment Report
RECOMMENDATION: Council accept monthly investment report as presented.

E. SUBJECT: Resolution Initiating Proceedings for the Annual Levy of Assessments for Landscape and Lighting District No. 1 (JG)
RECOMMENDATION: Council by motion adopt the resolution to initiate proceedings for the annual levy of assessments for Landscape and Lighting District No. 1. - Res. 25-30 Motion made by Councilmember Herrera and Seconded by Councilmember Hall Ayes: Herrera, Hall, Yep, Dhaliwal, Pacheco
Noes: None
Abstain: None

Absent: None
Motion passes 5-0-0-0

6. PUBLIC HEARINGS - None.

7. DEPARTMENT REPORTS
A. SUBJECT: Budget Workshop Fiscal Year 2025/2026 (JA)
RECOMMENDATION: Council to review and consider proposed draft of City of Kerman Fiscal Year 2025/2026 Operating and Capital Budgets and provide comments. - Item 7.A presented after Item 7.C
B. SUBJECT: Request from Kerman Chamber of Commerce for Donation Toward July 3rd Sky Diving Exhibition (JAJ)
RECOMMENDATION: That Council consider a contribution in an amount up to $1,000 to the Kerman Chamber of Commerce for its annual July 3rd fireworks show and community event. – Res. 25-31
Denise Baronian, Executive Director Chamber of Commerce Motion to contribute an additional $1,500 toward event made by Councilmember Dhaliwal and Seconded by Councilmember Herrera
7 Section 5, Item A.

Ayes: Dhaliwal, Herrera, Hall, Yep, Pacheco
Noes: None
Abstain: None

Absent: None
Motion passes 5-0-0-0
C. SUBJECT: Harvest Festival Parade (JAJ)
RECOMMENDATION: Council receive an update about proposed changes to 2025 Harvest Festival parade route, with possible direction to Staff.

Jason Royal, Chamber of Commerce Board Member
Motion made to accept the suggested changes by Councilmember Herrera and Seconded by Councilmember Dhaliwal
Ayes: Herrera, Dhaliwal, Hall, Yep, Pacheco
Noes: None
Abstain: None

Absent: None
Motion passes 5-0-0-0

8. CITY MANAGER/STAFF COMMUNICATIONS

9. MAYOR/COUNCIL REPORTS/ANNOUNCEMENTS/FUTURE AGENDA ITEMS - Item discussing types of trees to be planted going forward - Bring back previously tabled item discussing Rec Commission compensation since Councilmember Dhaliwal was absent.
- City Manager to provide Council a memo with construction updates on Madera Ave (145) and Whitesbridge Ave. (180)

10. CLOSED SESSION - None.

11. ADJOURNMENT - 7:35 p.m.

MINUTES CERTIFICATION
I, Josie Camacho, City Clerk for the City of Kerman, do hereby declare under penalty of perjury that the above minutes are a true depiction of all actions taken at the City Council meeting held on the first date above written at Kerman City Hall, 850 S. Madera Ave, Kerman, CA.

Date: May 29, 2025 /s/ Josie Camacho, City Clerk
8 Section 5, Item A.

Accounts Payable
User:

Printed:

VSandoval
6/3/2025 7:57 AM
Checks by Date - Summary by Check Date
Check No Vendor No Vendor Name Check Date Check Amount
ACH 10147 EMPLOYMENT DEVELOPMENT DEPARTMENT 05/16/2025 10,158.76 ACH 10517 FEDERAL TAXES PAYROLL 05/16/2025 60,673.48
ACH 10518 KERMAN POLICE OFFICERS ASSN 05/16/2025 962.50 ACH 10519 KERMAN MUNICIPAL EMPLOYEES ASSN05/16/2025 255.00 ACH 10520 ICMA-RC 05/16/2025 4,615.08
Total for 5/16/2025: 76,664.82
32112 11493 24 / 7 PET VETS 05/21/2025 236.00
32113 10040 AT&T MOBILITY 05/21/2025 2,030.44
32114 11917 BLAIS & ASSOCIATES LLC 05/21/2025 2,559.00
32115 10054 BLUE SHIELD OF CALIFORNIA 05/21/2025 62,195.50 32116 10062 BSN SPORTS 05/21/2025 444.40
32117 10617 C A REDING CO INC 05/21/2025 61.96
32118 10078 CALIFORNIA STATE DISBURSEMENT 05/21/2025 161.53 32119 11633 FAVIOLA CARDENAS 05/21/2025 8.00
32120 10452 CITY OF FRESNO WMD 05/21/2025 141.00
32121 11498 COMCAST CABLE COMMUNICATIONS MANAGEMENT LLC 05/21/2025 738.75 32122 10109 AUDITOR CONTROLLER/TREASURER-TAX COLLECTOR COUNTY OF FRESNO 05/21/2025 326.38 32123 10826 CROWN SERVICES CORPORATION 05/21/2025 1,080.00 32124 11874 CSG CONSULTANTS INC 05/21/2025 9,195.50
32125 10128 DEPARTMENT OF JUSTICE 05/21/2025 473.00
32126 10571 DITCH WITCH 05/21/2025 8,549.05
32127 10144 ELBERT DISTRIBUTING INC 05/21/2025 2,147.98 32128 10157 FERGUSON ENTERPRISES INC 05/21/2025 359.32
32129 11188 FUTURE FORD 05/21/2025 203.28
32130 12379 GILL CHEVROLET 05/21/2025 42.28
32131 11358 GREAT AMERICA FINANCIAL SERVICES05/21/2025 469.19 32132 10201 HORIZON 05/21/2025 1,012.99
32133 10514 ICAD INC 05/21/2025 1,050.00
32134 11761 JOHN JANSONS 05/21/2025 80.08
32135 10219 JENSEN & PILEGARD INC 05/21/2025 21.24
32136 10239 KERWEST INC 05/21/2025 263.75
32137 12807 KUSTOM SIGNALS INC 05/21/2025 208.14
32138 10252 LITHIA FORD OF FRESNO 05/21/2025 211.16
32139 10272 MUTUAL OF OMAHA 05/21/2025 3,289.69
32140 10282 OFFICE DEPOT 05/21/2025 226.05
32141 10289 P.G.& E. 05/21/2025 10,751.91
32142 12523 PAMOIST PET HOSPITAL 05/21/2025 199.80
32143 12808 QUADIENT FINANCE USA INC 05/21/2025 932.25
32144 12053 R & L MUSIC ENT 05/21/2025 225.00
32145 10316 R G EQUIPMENT OF FRESNO INC 05/21/2025 1,180.57 32146 12524 R&S ERECTION TRI-COUNTY INC 05/21/2025 476.25 32147 10324 RIVERSIDE NURSERY & LANDSCAPE INC05/21/2025 58.31 32148 12475 SAN JOAQUIN PEST CONTROL 05/21/2025 105.00
32149 12805 MARLYNA SANDOVAL 05/21/2025 150.00
32150 12804 CHRISTOPHER SCOTT 05/21/2025 500.00
AP Checks by Date - Summary by Check Date (6/3/2025 7:57 AM) Page 1 9 Section 5, Item B.

Check No Vendor No Vendor Name Check Date Check Amount
32151 11212 SE ELECTRIC 05/21/2025 240.00
32152 11650 SITEONE LANDSCAPE SUPPLY, LLC 05/21/2025 931.80 32153 10337 SLUMBERGER LUMBER 05/21/2025 422.91
32154 11460 SUPERIOR POOL PRODUCTS LLC 05/21/2025 1,547.22 32155 10354 T & T PAVEMENT MARKINGS 05/21/2025 277.89
32156 10357 TAYLOR MADE IRRIGATION 05/21/2025 15.52
32157 10754 THE HOME DEPOT PRO-SUPPLY WORKS05/21/2025 678.13 32158 11914 TULARE COUNTY SHERIFFS OFFICE 05/21/2025 900.00 32159 12806 AMANDA VALENCIA 05/21/2025 150.00
32160 12290 VERIZON 05/21/2025 87.06
Total for 5/21/2025: 117,615.28
ACH 10644 US BANK EQUIPMENT FINANCE 05/22/2025 710.78
Total for 5/22/2025: 710.78
32063 11493 24 / 7 PET VETS 05/29/2025 513.00
32064 12537 AMERITAS GROUP INSURANCE CORP- DENTAL CLAIMS 05/29/2025 1,545.02 32065 10271 AVENU INSIGHTS & ANALYTICS 05/29/2025 214.60 32066 12809 BALLET FOLKLORICO Y MARIMBA DE FRESNO 05/29/2025 200.00 32067 10617 C A REDING CO INC 05/29/2025 274.10
32068 10092 CENTRAL VALLEY TOXICOLOGY INC 05/29/2025 792.00 32069 10103 COLONIAL LIFE 05/29/2025 781.31
32070 11382 DATA TICKET INC 05/29/2025 20.81
32071 10153 FACTORY MOTOR PARTS CO 05/29/2025 379.06
32072 11358 GREAT AMERICA FINANCIAL SERVICES05/29/2025 446.62 32073 11923 JOE A GONSALVES & SON 05/29/2025 1,250.00
32074 12522 HARMEEN KAUR 05/29/2025 243.00
32075 11891 PACE SUPPLY 05/29/2025 271.12
32076 12523 PAMOIST PET HOSPITAL 05/29/2025 28.00
32077 12026 PRECISION CIVIL ENGINEERING INC 05/29/2025 8,251.25 32078 10927 PROFESSIONAL PRINT & MAIL INC 05/29/2025 805.54 32079 10315 QUINN COMPANY 05/29/2025 6,687.95
32080 12811 REYNA RIVERA 05/29/2025 66.82
32081 12590 DALIA SANTANA ZAMUDIO 05/29/2025 90.51
32082 BP-TRI TRI STATE GENERAL CONTRACTOR 05/29/2025 267.00 32083 10387 USA BLUE BOOK 05/29/2025 966.15
32084 10406 WEST HILLS OIL INC 05/29/2025 9,097.53
32085 10413 YAMABE & HORN ENGINEERING INC 05/29/2025 199,735.83 Total for 5/29/2025: 232,927.22
ACH 10147 EMPLOYMENT DEVELOPMENT DEPARTMENT 05/30/2025 9,287.46 ACH 10517 FEDERAL TAXES PAYROLL 05/30/2025 57,187.23
ACH 10520 ICMA-RC 05/30/2025 2,659.96
ACH 10522 CALPERS 05/30/2025 41,201.33
ACH 10522 CALPERS 05/30/2025 100,000.00
32086 UB*01951 GONZALO MALDONADO 05/30/2025 16.49
Total for 5/30/2025: 210,352.47
Report Total (84 checks): 638,270.57
AP Checks by Date - Summary by Check Date (6/3/2025 7:57 AM) Page 2 10 Section 5, Item B.

CITY OF KERMAN

PAYROLL REPORT

RETRO PAY GROSS COMP TIME
Salary & OTHER Hours Amount Hours Amount Hours Amount SALARY EARNED Grand Total $239,908.27 $ - 166.89 $ 8,460.18 0.00 $ - 88.00 $ 1,977.99 $250,346.43 49.50 OVERTIME HOLIDAY at 1/2 TIME STANDBY
PAY PERIOD: May 11, 2025 - May 24, 2025

Section 5, Item C.

STAFF REPORT
MEETING DATE: June 11, 2025
PRESENTER: John Jansons, City Manager
SUBJECT: Contract with Spectrum Energy Solutions for Solar Performance Analysis and Optimization (JAJ)
RECOMMENDATION: Council by motion adopt resolution approving contract with Spectrum Energy Solutions in the amount of $8,500 for Solar Performance Analysis/Optimization.

EXECUTIVE SUMMARY:

The proposed resolution Attachment ‘A’ will approve a Contract with Spectrum Energy Solutions in the amount of $8,500 to perform Solar System Performance Analysis and System Optimization recommendations.

DISCUSSION:

Spectrum Energy Solutions have systems in place and are experienced with analyzing solar system performance and identifying optimization recommendations. The goal of this work is to increase energy efficiency at City facilities (Waste-Water Treatment Plant) and to examine the current systems and propose any improvements and optimization of solar production leading to potential cost savings for the City.

The Professional Services Agreement, Exhibit ‘A’ to the resolution, is for a period of one year to perform the services described above. Approval of the resolution by the City Council will authorize the City Manager to execute the Contact.

FISCAL IMPACT:

The agreement is for a total of $8,500 for solar performance analysis and optimization recommendations funded by the Waste-Water Operations Fund.

ATTACHMENTS:

A. Resolution w/Exhibit
12 Section 5, Item D.

Attachment ‘A’
RESOLUTION NO. 25-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN APPROVING A

PROFESSIONAL SERVICES AGREEMENT WITH SPECTRUM ENERGY SOLUTIONS IN THE AMOUNT OF $8,500 FOR SOLAR OPTIMIZATION ANALYSIS AND RECOMMENDATIONS.

WHEREAS the City operates solar energy systems and believes it to be beneficial to examine the performance of said systems: and
WHEREAS Spectrum Energy Solutions (SES) is experienced in assessing solar system performance identifying optimization measures and identifying potential cost saving strategies, and
WHEREAS, SES has performed similar work successfully for Reedley, CA; and WHEREAS, with the age of the current systems, it’s necessary to gauge its performance and potential improvement in production; and
WHEREAS, with exponential electrical rate increases levied by Pacific Gas and Electric over the last few years, it has become increasingly imperative for Kerman to look for greater efficiencies, and cost saving opportunities.

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

1. The foregoing recitals are true and correct and incorporated by reference.

2. The City Council approves the Professional Service Agreement with Spectrum Energy Solutions for solar system performance analysis and optimization Exhibit ‘A’.

3. The City Council authorizes the City Manager to execute the Agreement.

4. This resolution is effective upon adoption.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 11
th day of June 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
13 Section 5, Item D.

The foregoing resolution is hereby approved.
____________________________
Maria Pacheco
Mayor
ATTEST:
___________________________
Josie Camacho
City Clerk
14 Section 5, Item D.

PROFESSIONAL SERVICES AGREEMENT
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into this _____ day of ________________, 2025 (hereinafter, the "Effective Date"), by and between the CITY OF KERMAN, a municipal corporation ("CITY") and SPECTRUM ENERGY SOLUTIONS (hereinafter, "CONSULTANT"). For the purposes of this Agreement, CITY and CONSULTANT may be referred to collectively by the capitalized term "Parties." The capitalized term "Party" may refer to CITY or CONSULTANT interchangeably.

RECITALS
This AGREEMENT is made and entered into with respect to the following facts:

WHEREAS, CITY has determined that it requires professional auditing and analysis of existing solar performance, optimization and equipment review services for the City; and WHEREAS, such services benefit CITY by providing dedicated, expert services; and WHEREAS, CONSULTANT represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals, employees, and subcontractors;
WHEREAS, CONSULTANT further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement; WHEREAS, CONSULTANT submitted a proposal, dated April 14, 2025, in response to the City's request for professional energy auditing and consulting services; and WHEREAS, this Agreement was approved by the Kerman City Council at its regular meeting on; the ___ day of __________, 2025.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONSULTANT agree as follows:

I.

ENGAGEMENT TERMS

1.1 SCOPE OF SERVICES:

A. Subject to the terms and conditions set forth in this Agreement and all exhibits attached and incorporated hereto, CONSULTANT agrees to perform the services and tasks set forth in Exhibit "A" (hereinafter referred to as the "Scope of Services").

Exhibit 'A'
15 Section 5, Item D.

B. CONSULTANT further agrees to furnish to CITY all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the services and tasks set forth in the Scope of Services.

C. For the purposes of this Agreement the aforementioned services and tasks set forth in the Scope of Services shall hereinafter be referred to generally by the capitalized term "Work." D. Work performed by CONSULTANT under this Agreement shall be limited to the tasks assigned to CONSULTANT pursuant to CITY's discretion and need for on-call, as- needed services.

1.2 TERM:

A. This Agreement shall have a term commencing on the Effective Date and will expire on June 30, 2026.

B. CONSULTANT may ask and CITY may grant an extension based on extenuating circumstances, notwithstanding provisions provided under Section 5 below.

C. Nothing in this Subsection 1.2 shall operate to prohibit or otherwise restrict CITY right to terminate this Agreement at any time for convenience or for cause as provided herein.

1.3 COMPENSATION:

A. Generally, CONSULTANT shall perform all of the various services and tasks that comprise the work in accordance with the hourly compensation schedule included in Exhibit "B."
B. CONSULTANT's total compensation during the Term of this Agreement shall not exceed the budgeted aggregate sum of Eight Thousand Five Hundred Dollars ($8,500.00), (hereinafter, the "Not-to-Exceed Sum"), unless such added expenditure is first approved by the CITY. In the event CONSULTANT's charges are projected to exceed the Not-toExceed Sum prior to the expiration of the Term or any single extension term, CITY may suspend CONSULTANT's performance pending CITY approval of any anticipated expenditures in excess of the Not-to-Exceed Sum or any other CITY-approved amendment to the compensation terms of this Agreement.

1.4 PAYMENT OF COMPENSATION: Following the conclusion of each calendar month, CONSULTANT shall submit to CITY an itemized invoice indicating the services and tasks performed during the recently concluded calendar month, including services and tasks performed and the reimbursable out-of-pocket expenses incurred. Within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONSULTANT in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar day of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.
16 Section 5, Item D.

1.5 ACCOUNTING RECORDS: CONSULTANT shall maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.6 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Work agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Services, CONSULTANT shall deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONSULTANT in the performance of this Agreement. Furthermore, CONSULTANT shall only be compensated for the reasonable value of the services, tasks and other work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of CONSULTANT's cessation or abandonment.

II.

PERFORMANCE OF AGREEMENT

2.1 CITY'S REPRESENTATIVES: The CITY hereby designates the City Manager or Designee (hereinafter, the "CITY Representatives") to act as its representatives for the performance of this Agreement. The City Manager shall be the chief CITY Representative. The CITY Representatives or their designee shall act on behalf of the CITY for all purposes under this Agreement. CONSULTANT shall not accept directions or orders from any person other than the CITY Representatives or their designee.

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Michael Jennings, President/CEO, to act as its primary representative for the performance of this Agreement (hereinafter, "CONSULTANT Representative"). CONSULTANT Representative shall have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement. CONSULTANT Representative or his designee shall supervise and direct the performance of the Work, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement. Notice to the CONSULTANT Representative shall constitute notice to CONSULTANT.

2.3 COORDINATION OF SERVICE: CONFORMANCE WITH REQUIREMENTS:

CONSULTANT agrees to work closely with CITY staff in the performance of the Work and this Agreement and shall be available to CITY staff and the CITY Representatives at all reasonable times. All work prepared by CONSULTANT shall be subject to inspection and approval by CITY Representatives or their designees.
17 Section 5, Item D.

2.4 STANDARD OF CARE: PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges and agrees to the following:

A. CONSULTANT shall perform all Work skillfully, competently and to the highest standards of CONSULTANT's profession; and
B. CONSULTANT shall perform all Work in a manner reasonably satisfactory to the CITY; and
C. CONSULTANT shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.); and D. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance; and E. All of CONSULTANT's employees and agents possess sufficient skill, knowledge, training and experience to perform those services and tasks assigned to them by CONSULTANT; and
F. All of CONSULTANT's employees and agents (including but not limited subcontractors and sub-consultants) possess all licenses, permits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications and approvals shall be maintained throughout the term of this Agreement and made available to CITY for copying and inspection. The Parties acknowledge and agree that CONSULTANT shall perform, at CONSULTANT's own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT's failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONSULTANT's employees, agents, contractors, subcontractors and sub-consultants. Such effort by CONSULTANT to correct any errors or omissions shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the CITY Representatives in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY's acceptance of any work performed by CONSULTANT or on CONSULTANT's behalf shall not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards of CONSULTANT's profession.

2.5 ASSIGNMENT: The skills, training, knowledge and experience of CONSULTANT are material to CITY's willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services 18 Section 5, Item D.
and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the performance of this Agreement. In recognition of this interest, CONSULTANT agrees that it shall not assign or transfer, either directly or indirectly or by operation of law, this Agreement or the performance of any of CONSULTANT's duties or obligations under this Agreement without the prior written assignment or transfer shall be ineffective, null and void and shall constitute a material breach of this Agreement.

2.6 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT CONTRACTOR:

The Work shall be performed by CONSULTANT or under CONSULTANT's strict supervision. CONSULTANT will determine the means, methods and details of performing the Work subject to the requirements of this Agreement. CITY retains CONSULTANT on an independent consultant basis and not as an employee. CONSULTANT reserves the right to perform similar or different services for other principals during the term of this Agreement, provided such work does not unduly interfere with CONSULTANT's competent and timely performance of the Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY's confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULTANT are not employees of CITY and shall at all times be under CONSULTANT's exclusive direction and control. CONSULTANT shall pay all wages, salaries and other amounts due such personnel and shall assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers' compensation insurance and the like.

2.7 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT's officers, employees, agents, contractors, subcontractors or sub-consultants is determined by the CITY Representatives to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, sub-consultant or sub-consultant shall be promptly removed by CONSULTANT and shall not be re-assigned to perform any of the Work.

2.8 COMPLIANCE WITH LAWS: CONSULTANT shall keep itself informed of and in compliance with all applicable federal, State or local laws to the extent such laws control or otherwise govern the performance of the Work. CONSULTANT's compliance with applicable laws shall include without limitation compliance with all applicable Gal/OSHA requirements.

2.9 NON-DISCRIMINATION: In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, subcontractor, sub-consultant, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental disability or medical condition. that CONSULTANT and all persons retained or employed by CONSULTANT are, and shall at all times remain, wholly independent contractors and are not officials, officers, employees, 19 Section 5, Item D.
departments or subdivisions of CITY. CONSULTANT shall be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants. CONSULTANT and all persons retained or employed by CONSULTANT shall have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt or liability of any kind on behalf of, or against, CITY, whether by contract or otherwise, unless such authority is expressly conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing.

III.

INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article.

CONSULTANT shall procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULTANT shall procure and maintain Commercial General Liability Insurance ("CGL Coverage") as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent. Such CGL Coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.

B. Automobile Liability Insurance: CONSULTANT shall procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage.

C. Workers' Compensation Insurance/ Employer's Liability Insurance: A policy of workers' compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Work contemplated in this Agreement. three (3) years thereafter, CONSULTANT shall procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT's profession. Such coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and shall be endorsed to include contractual liability.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance shall contain an endorsement naming the CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers as additional insureds. 20 Section 5, Item D.

3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement shall be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance shall be procured from insurers who, according to the latest edition of the Best's Insurance Guide, have an A.M. Best's rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor's rating of no less than BBB according to the latest published edition the Standard & Poor's rating guide.

As to Workers' Compensation Insurance/Employer's Liability Insurance, the CITY Representatives are authorized to authorize lower ratings than those set forth in this Section.

3.4 PRIMACY OF CONSULTANT'S INSURANCE: All policies of insurance provided by CONSULTANT shall be primary to any coverage available to CITY or CITY's elected or appointed officials, officers, employees, agents or volunteers. Any insurance or self-insurance maintained by CITY or CITY's elected or appointed officials, officers, employees, agents or volunteers shall be in excess of CONSULTANT's insurance and shall not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement shall not prohibit CONSULTANT or CONSULTANT's officers, employees, agents, subcontractors or sub-consultants from waiving the right of subrogation prior to a loss.

CONSULTANT hereby waives all rights of subrogation against CITY.

3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands and agrees, that CITY's ability to verify the procurement and maintenance of the insurance required under this Article is critical to safeguarding CITY's financial well-being and, indirectly, the collective well-being of the residents of the CITY. Accordingly, CONSULTANT warrants, represents and agrees that its shall furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the CITY if requested. All certificates of insurance and endorsements shall be received and approved by CITY as a condition precedent to CONSULTANT's commencement of any work or any of the Work. Upon CITY's written request, CONSULTANT shall also provide CITY with certified copies of all required insurance policies and endorsements.

IV.

INDEMNIFICATION

4.1 The Parties agree that CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers (hereinafter, the "CITY Indemnitees") should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the CITY Indemnitees with the fullest protection possible under the law. CONSULTANT acknowledges that CITY 21 Section 5, Item D.
would not enter into this Agreement in the absence of CONSULTANT's commitment to indemnify, defend and protect CITY as set forth herein.

4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold harmless and defend the CITY Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONSULTANT's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the CITY.

4.3 CITY shall have the right to offset against the amount of any compensation due CONSULTANT under this Agreement any amount due CITY from CONSULTANT as a result of CONSULTANT's failure to pay CITY promptly any indemnification arising under this Article and related to CONSULTANT's failure to either (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.

4.4 The obligations of CONSULTANT under this Article will not be limited by the provisions of any workers' compensation act or similar act. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers.

4.5 CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Article from each and every sub-consultant or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. In the event CONSULTANT fails to obtain such indemnity obligations from others as required herein, CONSULTANT agrees to be fully responsible and indemnify, hold harmless and defend CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONSULTANT's subcontractors or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys' fees incurred by counsel of CITY's choice.

4.6 CITY does not, and shall not, waive any rights that it may possess against CONSULTANT because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

4.7 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.
22 Section 5, Item D.

V.

TERMINATION

5.1 TERMINATION WITHOUT CAUSE: CITY may terminate this Agreement at any time for convenience and without cause by giving CONSULTANT a minimum of five (5) calendar days prior written notice of CITY's intent to terminate this Agreement. Upon such termination for convenience, CONSULTANT shall be compensated only for those services and tasks which have been performed by CONSULTANT up to the effective date of the termination.

CONSULTANT may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in Section 6.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Work. CONSULTANT shall be required to provide such Documents and Data within fifteen (15) calendar days of CITY's written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, shall operate to prohibit or otherwise restrict CITY's ability to terminate this Agreement for convenience as provided under this Section.

5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:

A. In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, "Event of Default") shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which shall specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default shall be cured, which shall not be less than the applicable cure period set forth under Sections 5.2.8 and 5.2C below or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default shall constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.

B. CONSULTANT shall cure the following Events of Defaults within the following time periods:
i. Within three (3) business days of CITY's issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY's employees or agents with any information and/or written reports, documentation or work product which CONSULTANT is obligated to provide to CITY or CITY's employees or agents under this Agreement. Prior to the expiration of the 3-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation 23 Section 5, Item D.
to grant additional time for the cure of an Event of Default under this Section 5.2 B.i. that exceeds seven (7) calendar days from the end of the initial 3-day cure period; or ii. Within fourteen (14) calendar days of CITY's issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.ii that exceeds thirty (30) calendar days from the end of the initial 14- day cure period. In addition to any other failure on the part of CONSULTANT to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of CONSULTANT shall include, but shall not be limited to the following: (i) CONSULTANT's refusal or failure to perform any of the services or tasks called for under the Scope of Services; (ii) CONSULTANT's failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) CONSULTANT's and/or its employees' disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; (v) CONSULTANT's refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY's discovery that a statement representation or warranty by CONSULTANT relating to this Agreement is false, misleading or erroneous in any material respect.

C. CITY shall cure any Event of Default asserted by CONSULTANT within forty-five (45) calendar days of CONSULTANT's issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY's failure to timely pay any undisputed sums to CONSULTANT as provided under Section 1.4, above, shall be cured by CITY within five (5) calendar days from the date of CONSULTANT's Default Notice to CITY.

D. CITY, in its sole and absolute discretion, may also immediately suspend CONSULTANT's performance under this Agreement pending CONSULTANT's cure of any Event of Default by giving CONSULTANT written notice of CITY's intent to suspend CONSULTANT's performance (hereinafter, a "Suspension Notice"). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONSULTANT shall be compensated only for those services and tasks which have been rendered by CONSULTANT to the reasonable satisfaction of CITY up to the effective date 24 Section 5, Item D.
of the suspension. No actual or asserted breach of this Agreement on the part of CITY shall operate to prohibit or otherwise restrict CITY's ability to suspend this Agreement as provided herein.

E. No waiver of any Event of Default or breach under this Agreement shall constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

F. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
i. Upon written notice to CONSULTANT, the CITY may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to CONSULTANT, the CITY may extend the time of performance;
iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULTANT's breach of the Agreement or to terminate the Agreement; or
iv. The CITY may exercise any other available and lawful right or remedy.

CONSULTANT shall be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY's exercise of its remedies under this Agreement.

G. In the event CITY is in breach of this Agreement, CONSULTANT's sole remedy shall be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULTANT under this Agreement for completed services and tasks.

5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

5.4 SURVIVING ARTICLES, SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto shall not operate to terminate any Article, Section or provision contained herein which provides that it shall survive the termination or normal expiration of this Agreement.
25 Section 5, Item D.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data shall be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term "Documents and Data" means and includes all reports, analyses, correspondence, plans, drawings, designs, renderings, specifications, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULTANT in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data.

CONSULTANT shall require all subcontractors and sub-consultants working on behalf of CONSULTANT in the performance of this Agreement to agree in writing that CITY shall be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any sub-consultant or sub-consultant as applies to Documents and Data prepared by CONSULTANT in the performance of this Agreement.

6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by CONSULTANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by CONSULTANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. Upon request, all CITY data shall be returned to CITY upon the termination or expiration of this Agreement.

CONSULTANT shall not use CITY's name or insignia, photographs, or any publicity pertaining to the Work in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY.

6.3 FALSE CLAIMS ACT: CONSULTANT warrants and represents that neither CONSULTANT nor any person who is an officer of, in a managing position with, or has an ownership interest in CONSULTANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., Section 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq.

6.4 NOTICES: All notices permitted or required under this Agreement shall be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose:

Continued on Next Page
26 Section 5, Item D.

CONSULTANT: CITY:

Spectrum Energy Solutions City of Kerman
Attn: Michael Jennings Attn: John Jansons
President/CEO. City Manager
1444 Fulton Street 850 S. Madera Ave.

Fresno, CA 93721 Kerman, CA 93630

Such notices shall be deemed effective when personally delivered or successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, forty-eight (48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.

6.5 COOPERATION; FURTHER ACTS: The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as is reasonably necessary, appropriate or convenient to achieve the purposes of this Agreement. 6.6 SUBCONTRACTING: CONSULTANT shall not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by CONSULTANT.

6.8 PROHIBITED INTERESTS: CONSULTANT warrants, represents and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this Agreement. Further, CONSULTANT warrants and represents that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for CONSULTANT, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of CITY, during the term of his or her service with CITY, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Fresno County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried 27 Section 5, Item D.
exclusively in federal court, venue, without exception, shall be in the Central District of California, legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall be entitled to have and recover from the losing Party reasonable attorneys' fees and all other costs of such action.

6.12 SUCCESSORS AND ASSIGNS: This Agreement shall be binding on the successors and assigns of the Parties.

6.13 NO THIRD PARTY BENEFIT: There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.

6.14 CONSTRUCTION OF AGREEMENT: This Agreement shall not be construed in favor of, or against, either Party but shall be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.

6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement shall be valid or binding unless executed in writing and signed by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver shall be void and invalid.

6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limits, augment, or describe the scope, content, or intent of this Agreement.

6.18 INCONSISTENCIES OR CONFLICTS: In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement shall control.

6.19 ENTIRE AGREEMENT: This Agreement including all attached exhibits is the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all other agreements or understandings, whether oral or written, or entered into between CITY and CONSULTANT prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this pursuant to Section 6.15, above.

6.20 COUNTERPARTS: This Agreement shall be executed in three (3) original counterparts each of which shall be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterparts shall be valid or binding unless made to all three counterparts in conformity with Section 6.16, above. One fully executed original 28 Section 5, Item D.
counterpart shall be delivered to CONSULTANT and the remaining two original counterparts shall be retained by CITY.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF KERMAN Spectrum Energy Solutions
By: _______________________ By: _______________________ John Jansons, City Manager Name: ____________________
Date: __________________ Title: _____________________
Date: _____________________
By: _______________________
Name: ____________________
Title: _____________________
Date: _____________________
APPROVED AS TO FORM: _______________________ Hilda Cantu Montoy City Attorney
ATTEST: _______________________ Josie Camacho
City Clerk

Michael Jennings
CEO/President
6/4/2025
29 Section 5, Item D.

EXHIBIT "A"

SCOPE OF WORK
To perform scope of work as described below and as described in Proposal dated April 14, 2025 (Attachment 1), City agrees to make available and facilitate access to all meter information and billing records in conjunction with utility providers.

PART I: SOLAR ANALYSIS AND OPTIMIZATION
Performed during Year 1.

Tasks:

2.1 Optimize RSBCT

2.2 Accounting review of PG&E payments and true-ups.

2.3 Review vendor contract(s) versus actual solar performance.

2.4 Review equipment performance with a view to optimization and provide recommendations to improve performance toward attaining system optimization.

EX

FEE SCHEDULE
The one-year agreement is for a total of $8,500 for solar performance analysis and optimization recommendations (Proposal Attached) as a not to exceed amount for Task 2.1 through 2.4 as described in Exhibit A above.
### END ###

30 Section 5, Item D.

ATTACHMENT 1
Proposal dated April 14, 2025.
31 Section 5, Item D.

John Jansons
850 S. Madera Avenue
April 14, 2025
Kerman, CA 93630
RE: Professional Energy Services
John,
This will update our scope of work to provide professional energy services to the City of Kerman.

Per our recent discussion, I am breaking these down into two different buckets for your consideration.

I. Energy Accounting and optimization of tariffs
Scope • Energy accounting focused on utility accountability • PG&E tariff optimization
• Advocacy to recover costs
• Reduce pumping costs
• Review all PG&E new business project files
• Review natural gas cost and optimize
• Introduce demand response opportunities
Fees: $8,500
Our Spectrum team is pleased to provide you with this proposal and look forward to your questions and comments.

Best Regards,
Michael Jennings
President/CEO
1444 Fulton St.

Fresno, CA 93721
www.spectrum-nrg.com
• Optimize RSBCT
• Accounting review of PG&E payments and true-ups
• Review vendor contract versus actual solar performance • Review equipment performance with a view to optimization Fees: $1,200 per month plus 30% of bona fide energy cost reduction Term: Two years
II. Solar Analysis and Optimization
32 Section 5, Item D.

STAFF REPORT
MEETING DATE: June 11, 2025
PRESENTER: Josefina Alvarez, Finance Director
SUBJECT: Adoption of Fiscal Year 2025/2026 Budget, Amending Fiscal Year 2024/2025 Budget, Establishing Appropriations Limit for Fiscal Year 2025/2026 and Authorizing Number of Employee Positions and Titles (JA)
RECOMMENDATION: Council by motion adopt the following:

1. Resolution approving the City of Kerman Fiscal Year 2025/2026 Operating and Capital Budgets and amending the Fiscal Year 2024/2025 budget; and

2. Resolution establishing the Appropriations Limit for Fiscal year 2025/2026; and

3. Resolution authorizing number of employee positions and titles EXECUTIVE SUMMARY:

The preliminary City of Kerman budget was presented to the City Council on May 28, 2025 at the budget workshop. The budget showed an estimated deficit of $4,901,214 with revenues at $11,865,997 and expenditures at 16,767,210. Both revenues and expenditures remained the same for the General Fund since the budget workshop.

The Enterprise Fund revenues and expenditures remained the same with a total overall deficit of $326,850. The Internal Service Fund expenditures also remained the same at a deficit of $32,465.

Thus, the proposed Fiscal Year 2025/2026 budget and amended 2024/2025 budget is presented herein for final adoption.

The total City-wide expenditures proposed for Fiscal Year 2025/2026 are about $53.4 million and include the following:

Description Budget 2025/2026
General Fund $16,767,210
Enterprise Funds $8,602,920
Internal Service Funds $1,358,766
Special Revenue Funds $3,020,569
Capital Projects $23,703,520
Total $53,452,986
33 Section 7, Item A.

The total City-wide revenues proposed for Fiscal Year 2025/2026 include the following:

Description Budget 2025/2026
General Fund $11,865,997
Enterprise Funds $8,276,069
Internal Service Funds $1,326,300
Special Revenue Funds $21,975,555
Total $43,443,922
General Fund
The General Fund is the largest individual fund and accounts for most services associated with municipal government including parks, recreation, police, building and planning services. The General Fund is primarily funded from general tax revenues, such as sales and property tax revenues and vehicle license fees.

The proposed General Fund budget expenditures are $16.7 million, with projected revenues at $11.8 million and an estimated deficit of $4,901,214. It is important to note that $4,325,420 is allocated under Measure M for the construction of Hart Ranch Park. Reserves will be used to fund this much-anticipated project which is expected to be completed Summer 2026 or soon thereafter.

Enterprise Funds
The Enterprise Funds include Water, Wastewater, Solid Waste and Storm Drain funds. These funds are funded primarily from user fees and other charges. The City has conducted a Water, Wastewater and Storm Drain Rate Study to adopt new rates through December 2028. The Water, Wastewater and Storm Drain rates will increase in January 2026 and the Solid Waste rates will increase in July 2025.

The proposed Enterprise Fund budget revenues of $8.27 million is approximately $326,850 more than projected expenses of $8.60 million.

The proposed revenues for the Enterprise Funds are as follows:

Description Budget 2025/2026
Water Fund $3,262,751
Sewer Fund $2,369,774
Solid Waste Fund $2,536,535
Storm Drain Fund $107,009
Total $8,276,069
34 Section 7, Item A.

The proposed expenditures for the Enterprise Funds are as follows:

Description Budget 2025/2026
Water Fund $3,363,689
Sewer Fund $2,620,682
Solid Waste Fund $2,407,308
Storm Drain Fund $211,241
Total $8,602,920
Capital Projects
The Capital Project funds include local, state and federal revenues to fund infrastructure projects throughout the City. The capital projects reflect the City’s ongoing commitment to maintaining, improving and expanding City facilities, parks, streets and other major infrastructure throughout the City. A summary of City-wide capital projects is detailed in Attachment ‘C’.

Fiscal Year 2024/2025 Amendments
The resolution approving the Fiscal Year 2025/2026 budget includes some adjustments that were made to the Fiscal Year 2024/2025 budget which are reflected on all of the budgets under the “Estimated Year-End” column. These budget amendments were deemed necessary due to unforeseen operational and capital outlay expenditures that were made throughout the year and were presented in the Mid-Year Budget Presentation.

An overview of the General Fund budget can be found on Attachment ‘A’ and a complete summary of City-wide expenditures is shown in Exhibit ‘B’ under the resolution enclosed herein as Attachment ‘D’.

FISCAL IMPACT: The adoption of the proposed City of Kerman Fiscal Year 2025/2026 budget sets forth the appropriations for the delivery of municipal services.

ATTACHMENTS:

A. General Fund Summary
B. Enterprise Fund Summary
C. City-wide Capital Projects
D. Resolution Adopting the City of Kerman Fiscal Year 2025/2026 Budget and Approving Adjustments to the Fiscal Year 2024/2025 Budget w/Exhibits A & B E. Resolution Establishing the Appropriations Limit for Fiscal Year 2025/2026 (GAAN Limit) w/Exhibit A
F. Resolution Authorizing Number of Employee Positions and Titles 35 Section 7, Item A.

Attachment ‘A’
General Fund Summary
Estimated
Estimated vs.

Proposed Exp % of Incr.Dec (-)
Audited Audited Adopted Year- End Budget $ Total GF 23/24 vs.

Activity Description 2022-2023 2023-2024 2023-2024 2024-2025 2024-2025025-2026Change Revenue 24/25 Budget 2016-2019 2017-2020 2018-2021 Year-End 2019-2022 Change Revenue 18/19 Budget LEGISLATIVE & GEN. GOVT.
6001 City Council $32,401 $34,802 $40,991 $64,388 $63,753 ($635) -1.0% 6003 City Legal Services 220,170 117,613 195,000 195,000 200,000 5,000 2.6% 1002 General Administration 478,084 795,424 614,759 616,794 653,880 37,086 6.0% 5005 Administrative Services 125,121 153,127 147,444 147,582 156,327 8,745 5.9% 5006 Debt Service (Gateway Villa DIF) 95,339 95,339 95,339 95,339 0 (95,339) -100.0% 6004 City Clerk 84,751 128,193 156,489 168,248 176,479 8,231 4.9% 7001 Measure M 725,162 1,455,209 4,784,844 4,809,511 6,247,575 1,438,064 29.9% TOTAL LEGISLATIVE & GEN. GOVT. 1,761,027 2,779,707 6,034,864 6,096,861 7,498,013 1,401,152 63.2% 23.0%

COMMUNITY DEVELOPMENT
1008 Planning 254,997 270,142 391,624 428,124 499,789 71,664 16.7% 1009 Code Compliance 0 165,543 194,473 195,223 212,559 17,336 8.9% 1009 Transfer from Measure M (Code Compliance) 0 (165,665) (194,473) (194,473) (212,559) (18,086) 9.3% 1010 Engineering 160,835 309,796 260,000 310,000 350,000 40,000 12.9% 1042 Building 231,135 284,727 422,717 423,717 441,357 17,640 4.2% TOTAL PLANNING & DEVELOPMENT 646,967 864,543 1,074,341 1,162,591 1,291,146 128,554 10.9% 11.1%

RECREATION/COMMUNITY SERVICES
2002 Recreation Administration 190,745 407,955 443,807 444,490 556,852 112,361 25.3% 2010 Building Maintenance 519,310 629,749 771,039 778,051 828,670 50,619 6.5% 2044 Senior Center Services 168,361 147,619 169,074 169,704 216,249 46,545 27.4% 2047 Aquatics Program 46,325 48,893 82,564 83,694 86,750 3,055 3.7% 2062 Planned Recreation 56,848 0 0 0 0 0 0.0%
2065 Youth and Teen Services 57,440 0 0 0 0 0 0.0%
2069 Community Teen Center 151,336 164,603 183,007 187,011 222,679 35,669 19.1% TOTAL RECREATION/SOCIAL SERVICES 1,190,364 1,398,818 1,649,492 1,662,951 1,911,199 248,248 16.1% 14.9%

POLICE OPERATIONS
3011 Police Operations (Including ACT & SRO) 3,788,746 4,292,889 5,336,239 5,455,056 6,004,855 549,798 10.1% 3011 Transfer From Measure M (251,131) (247,568) (388,422) (388,422) (390,099) (1,677) 0.4% 3041 Animal Control 98,860 161,730 165,143 175,343 161,296 (14,047) -8.0% TOTAL POLICE OPERATIONS 3,636,476 4,207,051 5,112,959 5,241,977 5,776,051 534,074 48.7% 10.2%

PUBLIC WORKS
4010 Parks Landscape Maintenance 203,531 236,221 269,843 272,335 290,802 18,466 6.8% TOTAL PUBLIC WORKS 203,531 236,221 269,843 272,335 290,802 18,466 2.5% 6.8%

TOTAL GENERAL FUND OPERATION EXPENSES 7,438,365 9,486,339 14,141,500 14,436,715 16,767,210 2,330,496 16.1% TOTAL GENERAL FUND REVENUE 11,040,815 11,391,779 10,654,943 11,295,036 11,865,997 570,961 5.1% EXCESS (DEFICIT) REVENUE OVER EXPENDITURES 3,602,450 1,905,441 (3,486,557) (3,141,679) (4,901,214) EXCESS (DEFICIT) PERCENTAGE OF TOTAL G/F REVENUE 32.63% 16.73% -32.72% -27.81% -41.30%

GENERAL FUND CAPITAL IMPROVEMENTS ARE DETAILED SEPARATELY UNDER THE CAPITAL IMPROVEMENT PROJECT BUDGET Activity Description
36 Section 7, Item A.

Attachment ‘B’
Enterprise Fund Summary
Adopted Adopted
vs. vs.

Proposed Proposed
Audited Audited Adopted Estimated Budget % $
ACTIVITY Description 2022-2023 2023-2024 2024-2025 Year- End 2025-2026 Change Change WATER FUND (410)
Total Water Fund Revenues $5,645,707 $3,125,754 $2,714,184 $3,193,914 $3,262,751 20.2% 548,567 5005 Water Administration & Accounting 603,879 541,718 574,207 600,582 666,552 16.1% 92,345 5006 Water - Debt Service 165,000 165,000 165,000 165,000 165,000 0.0% 0 4041 Water Operations 1,369,484 1,654,048 1,844,376 2,155,726 2,532,138 37.3% 687,761 Total Water Fund Operations 2,138,364 2,360,765 2,583,583 2,921,309 3,363,689 Revenue in Excess of Expenditures 3,507,343 764,988 130,600 272,605 (100,939) SEWER FUND (420)
Total Sewer Fund Revenues 2,050,026 2,231,785 1,969,897 2,386,251 2,369,774 20.3% 399,878 5005 Sewer Administration & Accounting 493,054 440,546 479,541 508,060 549,822 14.7% 70,281 5006 Sewer - Debt Service 151,743 151,743 151,743 151,743 151,743 0.0% 0 4042 Sewer Operations 1,285,025 1,352,865 1,623,680 1,634,306 1,919,117 18.2% 295,436 Total Sewer Fund Operations 1,929,822 1,945,153 2,254,964 2,294,109 2,620,682 Revenue in Excess of Expenditures 120,204 286,631 (285,067) 92,141 (250,907) SOLID WASTE (430)
Total Solid Waste Fund Revenues 2,142,744 2,420,424 2,401,948 2,515,954 2,536,535 5.6% 134,588 5005 Solid Waste Administration & Accounting 2,042,373 2,126,577 2,245,668 2,250,155 2,407,308 7.2% 161,639 Total Solid Waste Fund Operations 2,042,373 2,126,577 2,245,668 2,250,155 2,407,308 Revenue & Transfer in Excess of Expenditures 100,370 293,847 156,279 265,799 129,228 STORM DRAIN OPERATIONS FUND (470)
Total Storm Drain Operation Revenues 86,259 97,694 85,224 116,080 107,009 25.6% 21,785 4047 Storm Drain Maintenance & Operations 101,076 122,117 168,781 168,781 211,241 25.2% 42,460 Total Storm Drain Fund Operations 101,076 122,117 168,781 168,781 211,241 Revenue in Excess of Expenditures (14,817) (24,423) (83,557) (52,701) (104,232) TOTAL ENTERPRISE FUND REVENUE 9,924,735 7,875,657 7,171,252 8,212,198 8,276,069 15.4% 1,104,818 TOTAL ENTERPRISE FUND EXPENDITURES 6,211,635 6,554,613 7,252,997 7,634,353 8,602,920 18.6% 1,349,923 EXCESS (DEFICIT) REVENUE $3,713,100 1,321,044 ($81,745) $577,845 ($326,850)

CAPITAL IMPROVEMENTS ARE DETAILED SEPARATELY UNDER THE (CIP) BUDGET 37 Section 7, Item A.

Attachment ‘C’
Estimated
Cost
Streets
Kerman ST ADA Transition Plan Local Street Funds/Grants 25,000 FY25/26 Street Rehabilitation Project - Various Streets Local Street Funds 1,067,813 High Visibility Crosswalk Striping Local Street Funds 90,000 Concrete Repair Project Local Street Funds 40,000
Street Sealing Project (24/25) Local Street Funds 71,900 FY 24/25 Street Rehabilitation Project - Various Streets Local Street Funds 1,355,700 FY25/26 Street Sealing Project - Various Streets Local Street Funds 457,000 Annual Streets Lights Installation (1st Phase) Local Street Funds 70,800 RSTP - Vineland Ave Widening (North) (025) Local Street Funds/Grants 450,700 CMAQ - California Ave Sidewalk 9th to Vineland Local Street Funds/Grants 230,100 HSIP Kearney Blvd Ped Crossing Improvements Local Street Funds/Grants 266,900 Siskiyou Rehab - Kearney to California Local Street Funds/Grants 934,800 Kearney Rehab - 16th to Goldenrod Local Street Funds/Grants 18,700 Goldenrod Rehab - Stanislaus to Kearney Local Street Funds/Grants 42,700 HSIP Cycle 12 Pedestrian Crossing Improvements Local Street Funds/Grants 39,000 Total Street Capital Projects 5,161,113
Water
Capital Imp-Well 9A Emergency Repairs Water Fund 132,000 Water Tank Painting Water Fund 200,000
Fixed Network Metering Water Fund 50,000
Pipeline /Service Replacement Water Fund 50,000
Well No 33 Water Fund 778,000
Water Storage Tanks Maintenance Water Fund 200,000
Water Meter Installation Project (City Facilities/Commercial) Water Fund 383,000 Well No 15 Rehabilitation Water Fund 75,000
Well No 18 (DWSRF) State Grant Funding 1,700,000
Hexavalent Chromium Feasibility Study DIF 457,500
Basin C Groundwater Recharge Project DIF 80,000
Total Water Capital Projects 4,105,500
Sewer
Blower at WWTP Sewer Fund 35,000
10 Valves at WWTP Sewer Fund 50,000
Sewer Camera System Sewer Fund 18,600
2 New Hoists at Headworks Sewer Fund 25,300
Seepex Progressive Cavity Pump Sewer Fund 64,200
Sludge Removal at Drying Beds Sewer Fund 45,000
Fixed Network Metering Sewer Fund 50,000
Pipeline /Service Replacement Sewer Fund 50,000
WWTP Office Expansion Sewer Fund 50,000
WWTP Animal Shelter Demo/Shop Expansion Sewer Fund 50,000 Goldenrod Lift Station Rehabilitation Sewer Fund 43,000 Total Sewer Capital Projects 481,100

CAPITAL IMPROVEMENT PROJECTS
Fiscal Year 2025/2026
Project Funding Source
38 Section 7, Item A.

Estimated
Cost
Solid Waste
Capital Outlay-Carts-New Residential Development Solid Waste 28,000 Total Solid Waste Capital Projects 28,000
Storm Drain
Basin J Expansion Sewer Fund 120,000
Total Storm Drain Capital Projects 120,000
Landscape and Lighting District 0
Reconstruct/Renovate Mow Strips Solid Waste 35,000
Total L&L Capital Projects 35,000
Parks & Facilities
Northwest Park GF- Measure M 67,200
Multigenerational Center (Resiliency Center) GF- Measure M/Grant 7,577,660 Police Station GF- Measure M/Grant 542,296
Eastside Community Park (25 Acres-Hart Ranch) GF- Measure M/Grant 11,209,469 Downtown Revitalization Program GF- Measure M/Grant 209,336 Coleman Grand Stand Replacement & Paint General Fund 65,000 Rotary Park Ballfield Lighting Upgrade General Fund 40,000 Philip Gallegos Play Park Lighting General Fund 30,000
Rain Gutter Replacement 942 S Madera Ave General Fund 25,000 Contingency Kerman Veteran Plaza Park Restrooms Remodel General Fund /Grant 205,200 Community Center Improvements General Fund 70,000
Annual Streets Lights Installation (1st Phase) General Fund 20,200 Total Parks & Other Facilities 20,061,360
Vehicle/Equipment Replacement
PW, Parks & Rec Fleet Vehicles Vehicle and Equipment Fund 167,200 Total Vehicles & Equipment 167,200
Total Major Capital Expenditures 30,159,272
Total Minor Capital Expenditures 577,868
Total Capital Expenditures $30,737,141

CAPITAL IMPROVEMENT PROJECTS
Fiscal Year 2025/2026
Project Funding Source
39 Section 7, Item A.

Attachment ‘D’
RESOLUTION NO. 25-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN ADOPTING THE FISCAL YEAR 2025/2026 BUDGET AND APPROVING ADJUSTMENTS TO THE FISCAL YEAR 2024/2025 BUDGET
WHEREAS, the City Council has reviewed the proposed City of Kerman Fiscal Year 2025/2026 Budget (‘Proposed Budget’) attached hereto as Exhibit ‘A’ at a duly noticed public meeting; and
WHEREAS, the Proposed Budget is based upon appropriate estimates and financial planning for the City’s operations, services and capital improvements, including adjustments to the Fiscal Year 2024/2025 Budget; and
WHEREAS, the Proposed Budget provides continued services at current levels to the community; and
WHEREAS, all procedural requirements for adopting the City’s Budget were fulfilled and the City Council was fully informed regarding the City’s current finances, projected revenue and financial obligations; and
WHEREAS, it is in the public interest for the City Council to adopt the Budget as proposed by the City Manager.

NOW THEREFORE, the City Council of the City of Kerman resolves as follows:

SECTION 1: ADOPTION. The Fiscal Year 2025/2026 Budget as presented, and set forth in Exhibit ‘A’ is approved and adopted subject only to the authorizations set forth below. Such approval and adoption includes, without limitation, adjustments to the Fiscal Year 2024/2025 Budget.

SECTION 2: BUDGET APPROPRIATIONS. The Fiscal Year 2025/2026 Budget appropriation totals $53,356,013 as shown in Exhibit ‘B’. The City Manager, or designee, is authorized to implement the appropriations as detailed in the Budget for City Departments.

SECTION 3: BUDGET ADJUSTMENTS. The Budget may be subsequently adjusted as follows:

A. By majority vote of the City Council;
B. By the City Manager, or designee, for all appropriation transfers between departments and activities and line items within a City fund; C. By Department Directors for appropriation transfers between activities and line items within a department;
40 Section 7, Item A.

D. Line item expenditures within activities and departments are not restricted so long as funding is available in the City fund as a whole.

The Fiscal Year 2024/2025 City of Kerman Budget is hereby adjusted and those adjustments become a part of the 2024/2025 City of Kerman Amended Budget.

SECTION 4: This resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

SECTION 5: The foregoing resolution was introduced at a regular meeting of the City Council of the City of Kerman, held on the 11
th day of June 2025, and adopted at said meeting by the following vote:

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 10th day of July 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.
______________________
Maria Pacheco
Mayor
ATTEST:
_______________________
Josie Camacho
City Clerk
41 Section 7, Item A.

Exhibit ‘A’ to Resolution
https://www.cityofkerman.net/DocumentCenter/View/1694/FY-2526-Budget 42 Section 7, Item A.

Exhibit ‘B’ to Resolution

CITY WIDE EXPENDITURES SUMMARY (INCLUDING CAPITAL PROJECTS) 43 Section 7, Item A.

Sub-Total Debt Service/
Fund Activity Description Personnel M & O Operations Capital Total General Fund
100 6001 City Council $38,846 $24,906 $63,753 $0 $63,753 100 6003 Legal Services 0 200,000 200,000 0 200,000
100 1002 City Manager 150,457 503,423 653,880 0 653,880 100 5005 Administrative Services 51,625 104,702 156,327 0 156,327 100 5006 Debt Service to DIF 0 0 0 0 0
100 6004 City Clerk 110,442 66,037 176,479 0 176,479
100 7001 Measure M 10,301 807,659 817,959 5,429,616 6,247,575 100 1008 Planning 366,456 128,333 494,789 5,000 499,789 100 1009 Code Compliance 173,483 39,076 212,559 0 212,559 100 1009 Transfer from Measure M (Code Compliance) (173,483) (39,076) (212,559) 0 (212,559) 100 1010 Engineering 0 350,000 350,000 0 350,000
100 1042 Building 238,957 197,400 436,357 5,000 441,357 100 2002 Recreation & Comm Services Admin. 442,963 113,888 556,852 0 556,852 100 2010 Building Maintenance 643,791 184,879 828,670 0 828,670 100 2044 Senior Center Services 153,205 63,044 216,249 0 216,249 100 2047 Aquatics Program 69,090 17,660 86,750 0 86,750 100 2062 Planned Recreation 0 0 0 0 0
100 2065 Youth Service Bureau 0 0 0 0 0
100 2069 Community Teen Center 139,589 81,890 221,479 1,200 222,679 100 3011 Police Operations 4,715,729 1,272,375 5,988,105 16,750 6,004,855 100 3011 Transfer from Measure M (New Police Officers) (390,099) 0 (390,099) 0 (390,099) 100 3041 Animal Control 95,962 65,333 161,296 0 161,296 100 4010 Park Landscape Maintenance 190,494 100,307 290,802 0 290,802 Sub-Total General Fund 7,027,808 4,281,837 11,309,645 5,457,566 16,767,210 Enterprise Funds
410 5005 Water 289,838 376,713 666,552 0 666,552
410 5006 Water 0 0 0 165,000 165,000
410 4041 Water Operations 762,614 1,422,524 2,185,138 347,000 2,532,138 420 5005 Sewer 217,048 332,774 549,822 0 549,822
420 5006 Sewer 0 0 0 151,743 151,743
420 4042 Sewer Collection & Operations 691,153 978,863 1,670,017 249,100 1,919,117 430 5005 Solid Waste (Refuse) 311,429 2,095,879 2,407,308 0 2,407,308 470 4047 Storm Drain Maintenance & Operations 98,656 98,585 197,241 14,000 211,241 Sub-Total Enterprise Funds 2,370,738 5,305,338 7,676,077 926,843 8,602,920 Internal Service Funds
500 4050 Vehicle/Equipment Mtnc & Replacement 289,063 743,298 1,032,361 194,700 1,227,061 510 5051 Technology Maintenance & Replacement 41,812 69,893 111,705 20,000 131,705 Sub-Total Internal Service Funds 330,874 813,192 1,144,066 214,700 1,358,766 Special Revenue Funds
100 3050 SLESF Grant 100,073 0 100,073 0 100,073
100 3999 Safety Grants, Contracts and Projects 62,455 26,545 89,000 4,000 93,000 110 1011 CIP Administration 0 0 0 0 0
170 1007 General Plan Updates 0 20,000 20,000 0 20,000
730 2046 Senior Nutrition Site Management 44,734 3,250 47,984 0 47,984 740 2045 National Rec.& Park Assoc.(NRPA) 0 0 0 0 0
750 4075 Lighting & Landscaping District 1 458,195 145,065 603,260 35,000 638,260 780 8000 Grants-Planning & Development 0 0
800-850, 870 408x Street Maintenance, TDA and Other 197,478 483,506 680,984 281,938 962,922 880 4088 Measure C - Flex 323,306 121,243 444,549 115,000 559,549 881 4088 Measure C - ADA 0 0 0 10,043 10,043
882 4088 Measure C - Streets 279,143 53,658 332,800 255,938 588,738 Sub-Total Special Revenue Funds 1,465,384 853,267 2,318,651 701,918 3,020,569 Capital Project Funds
100 8000 Parks, Facilities & Equipment 0 0 0 374,900 374,900 120 8000 CDBG Construction 0 0 0 175,000 175,000
140 8000 Facilities Construction 0 0 0 50,304 50,304
410, 520-540 8000 Water Construction 0 0 0 3,798,300 3,798,300 420, 550-570 8000 Sewer Facilities Construction 0 0 0 370,000 370,000 480, 490 8000 Storm Drain 0 0 0 171,871 171,871
580, 590 8000 Parks Construction 0 0 0 46,563 46,563
780 8000 Parks Construction 0 0 0 12,148,991 12,148,991 800, 830, 880-920,
95 8000 Street Construction 0 0 0 6,567,591 6,567,591
Sub-Total Capital Project Funds 0 0 0 23,703,520 23,703,520 Grand Total All Funds $11,194,804 $11,253,634 $22,448,439 $31,004,547 $53,452,986 44 Section 7, Item A.

Attachment ‘E’
RESOLUTION NO. 25-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE 2025/2026 FISCAL YEAR PURSUANT TO ARTICLE XIII B OF

THE CONSTITUTION OF CALIFORNIA
WHEREAS, Article XIII B of the California Constitution requires the City to set its appropriations limit on an annual basis; and
WHEREAS, the City’s appropriations limit is to be adjusted annually, based upon inflation and population growth; and
WHEREAS, the City Council may choose the method of calculating adjustments to the City’s appropriations limit on annual basis. For inflation, pursuant to Article XII B, section 8(e)(2), adjustments to the appropriations limit may be calculated using the percentage change in per capita personal income from the preceding year because of local nonresidential new construction. For population growth, pursuant to Government Code section 7901 (b), the City may use the percentage growth in its jurisdiction; and
WHEREAS, pursuant to Article XIII B of the California Constitution, and those Government Code sections adopted pursuant to Article XIII B, section 8(f), the City Council chooses to adjust the City’s appropriation limit by calculation inflation using the percentage change in per capita personal income from the preceding year and calculating population growth by using the percentage change in population in the City of Kerman; and WHEREAS, as a result of the adjustments made to the City’s appropriation limit as shown in Exhibit ‘A’, the City Council sets the appropriations limit for Fiscal Year 2025/2026 at $26,209,057.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KERMAN that the appropriations limit for the 2025/2026 Fiscal Year for the City of Kerman is established at $26,209,057, as set forth on Exhibit ‘A’ attached hereto and made a part hereof by this reference.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 11
th day of June 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
45 Section 7, Item A.

The foregoing resolution is hereby approved.
______________________
Maria Pacheco
Mayor
ATTEST:
_______________________
Josie Camacho
City Clerk
46 Section 7, Item A.

The growth in California Per Capita Income or
The growth in the non-residential assessed valuation due to new construction within the City 2024/2025 REVENUE LIMIT - $ 24,437,956
Per City of Kerman, City Council Resolution No.24-47
2025/2026 REVENUE LIMIT FACTORS
POPULATION:*
January 1, 2025 17,535 January 1, 2024 17,403 0.76% increase LOCAL ASSESSMENT ROLL*** Secured Unsecured
2023/2024 Gross Assessed Value 1,134,506,432 47,616,108 CHANGE IN PER CAPITA PERSONAL INCOME*
2025/2026 6.44%

CHANGE FACTOR
Population Change x Change in Per Capita Personal Income

1.0644 x 1.0076 = 1.0725
TOTAL 2025/2026 ESTIMATED REVENUE
PROCEEDS OF TAXES 15,160,191
NON-PROCEED OF TAXES 25,535,407
TOTAL APPROPRIATIONS 2025/2026 $ 40,695,598
TOTAL 2025/2026 ESTIMATED REVENUE
EXEMPT FROM LIMIT 15,160,191
2025/2026 REVENUE LIMIT $ 26,209,057
2025/2026 REVENUE SUBJECT TO LIMIT 15,160,191
AMOUNT OF UNSPENT AUTHORIZED APPROPRIATIONS $ 11,048,866 * Data provided by State of California, Department of Finance ***Data provided by Fresno County Assessor's Office

GANN REVENUE LIMT

EXHIBIT 'A'
The original Article XIII and its implementing legislation Chapter 1205/80 were modified by proposition III and SB 88 (Chapter 60/90).

Beginning with the 1990/91 Appropriations Limit, the annual adjustment Factors were changed. Instead of using the lesser of California Per Capita Income or U.S.C.P.I to measure Inflation, each City may choose:
47 Section 7, Item A.

Attachment ‘F’
RESOLUTION NO. 25-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN AUTHORIZING NUMBER OF

EMPLOYEE POSITIONS AND TITLES
WHEREAS, a change in the number of employee positions and titles may only be made by Council resolution and as authorized in the City budget; and WHEREAS, for purposes of efficiency and organization, there is a need to amend the number of positions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KERMAN hereby resolves as follows:

Section 1. The following titles and number of positions for each title are hereby authorized:

Permanent Full-Time
City Manager 1
Executive Assistant to City Manager/City Clerk 1
Human Resource Officer 1
Human Resource Specialist 1
*Human Resource Technician 0
Administrative Assistant 1
Total for Management Services 5
Finance Director 1
Senior Accountant 1
*Junior Accountant 0
Payroll Specialist 1
Account Clerk II 2
Account Clerk I 2
Administrative Analyst 1
Total for Administrative Services 8
Community Services Director 1
Assistant Director 1
Building & Facility Supervisor 1
*Parks Maintenance Specialist 0
Parks Maintenance Worker II 2
Parks Maintenance Worker 2
*Recreation Supervisor 0
Recreation Coordinator 2
Senior Services Coordinator 1
48 Section 7, Item A.

Administrative Assistant 1
Total for Community Services 11
Community Development Director 1
Code Enforcement Official 1
*Associate Planner 0
Assistant Planner 1
*Building Official 0
*Permit Tech II 0
Permit Tech I 1
*Community Development Coordinator 0
Administrative Assistant 1
Total for Community Development 5
Chief of Police 1
Lieutenant 1
Sergeant 5
Police Officer 20
Community Service Officer 4
Administrative Assistant 1
Animal Control 1
*Animal Shelter Attendant 0
Records Manager 1
Records Clerk 2
Total for Police Department 36
Director of Public Works 1
Administrative Assistant 2
*Building Permit Clerk 0
Fleet Services Supervisor 1
*Fleet Mechanic I 0
Fleet Mechanic II 1
PW Maintenance Worker III-Specialist 2
PW Maintenance Worker II 4
PW Maintenance Worker I 5
PW Lead Supervisor 2
PW Operations Coordinator 1
*Water Distribution/Waste Water Manager 0
WWTP Lead Supervisor 1
WWTP Water Operator Grade I 3
WWTP Water Operator Grade II 1
*WWTP Maintenance Worker III-Specialist 0
WWTP Maintenance Worker I 1
*WWTP Maintenance Worker II 0
*Water Conservation Specialist 0
Admin Analyst 1
49 Section 7, Item A.

Total for Public Works 26
Grand Total 91
*Positions are vacant and not included in the current budget Section 2. The City Manager may adjust the number of permanent full-time positions allocated by class provided that the total number of permanent positions authorized does not change and that there are sufficient unspent appropriations as verified by the Finance Director available to provide funds for the adjustment.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 11
th day of June 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.
______________________
Maria Pacheco
Mayor
ATTEST:
_______________________
Josie Camacho
City Clerk
50 Section 7, Item A.

STAFF REPORT
MEETING DATE: June 11, 2025
PRESENTER: Josefina Alvarez, Finance Director
SUBJECT: Resolution Adopting the Fiscal Year 2025/2026 Kerman Public Finance Authority Budget (JA)
RECOMMENDATION: Council by motion approve resolution adopting Fiscal year 2025/2026 Kerman Public Finance Authority Budget.

EXECUTIVE SUMMARY:

In October 2007 the Kerman Public Finance Authority (PFA) issued Lease Revenue Bonds in the amount of $3,930,000 for improvements to City Hall, purchase of the building at 942 S Madera Avenue and acreage for Hart Ranch Park.

In September 2020, the Kerman Public Financing Authority refinanced the 2007 Bond achieving a reduction on interest rate from 4.75% to 2.31% with the same lease terms. The 2020 Lease revenue Bond amounts to $3,041,000. The principal payments are made on October 1st beginning in 2022 and ending in 2037. The interest is to be paid semi-annually on April 1st and October 1st through 2037. The outstanding balance as of June 30, 2024 is $2,836,000.

The PFA activity consists of the collection of lease payments form the City of Kerman and the redistribution of these funds to bondholders. For Fiscal Year 2025/2026 these annual payments total $239,344.

FISCAL IMPACT:

The PFA collects lease payments and bi-annually debt service payments are paid to Webster Bank, the lender.

ATTACHMENTS:

A. Resolution w/Exhibit
51 Section 7, Item B.

Attachment ‘A’
RESOLUTION NO. 25-___

RESOLUTION OF THE KERMAN PUBLIC FINANCING AUTHORITY ADOPTING THE FISCAL YEAR 2025/2026 BUDGET
The Board of Directors of the Kerman Public Finance Authority does resolve as follows:

SECTION 1: The Board of Directors finds and declares as follows:

The Board of Directors has reviewed the proposed final Kerman Public Finance Authority Budget (“Budget”) for Fiscal Year 2025/2026 and determines as follows:

A. The Budget is based upon annual debt service payments and administrative fees; B. All procedural requirements for adopting the Budget were fulfilled and the Board of Directors was fully informed regarding the Authority’s current finances, projected revenue and financial obligations; and
C. It is in the public interest for the Board of Directors to adopt the Public Finance Authority Budget as proposed by the Executive Director.

SECTION 2: ADOPTION The Budget attached to this resolution, and incorporated by reference, in Exhibit ‘A’ is approved and adopted subject only to the authorizations set forth below.

SECTION 3: BUDGET APPROPRIATIONS Based upon the Budget, the total Fiscal Year 2025/2026 appropriation for the Public Finance Authority is $239,344. The Executive Director, or designee, is authorized to implement the appropriations as detailed in the Budget.

SECTION 4: BUDGET ADJUSTMENTS The Budget may be subsequently adjusted as follows:

A. By majority vote of the Board of Directors;
B. By the Executive Director, or designee, for all appropriation transfers between line items within the Authority’s fund.

SECTION 5: This resolution will become effective immediately upon adoption and will remain effective unless amended, repealed or superseded. (Certification on Next Page)
52 Section 7, Item B.

The foregoing resolution was adopted by the Kerman Public Finance Authority, at a regular meeting held on the 11
th day of June, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.

Maria Pacheco
Mayor
ATTEST:

Josie Camacho
City Clerk
53 Section 7, Item B.

Exhibit ‘A’
City of Kerman
Public Financing Authority
Fiscal Year 2025/2026 Budget
Audited Audited Adopted Estimated Budget
Description 2022/2023 2023/2024 2024/2025 Year/ End 2025/2026 130 0000 361 02 00 Lease Income $101,878 $240,510 $240,467 $240,467 $239,344 $101,878 $240,510 $240,467 $240,467 $239,344
Budget Highlights:

Lease Income is collected from various City funds to service their portion of the debt. The breakdown of those cost allocations can be seen on PFA Annual Lease Payment. In September 10 ,2020 the City of Kerman refinanced the 2007 Lease Revenue Bonds and entered into a new lease agreement with the Kerman Public Finance Authority (PFA) for the amount of $3,041,000. With the refinance the City of Kerman was able to generate some savings by reducing the interest rate. The principal payments are made every October 1, beginning in 2022 and terminating in 2037. Interest is paid semi-annually each April and October, the new interest rate is 2.31%
Audited Audited Adopted Estimated Budget
Description 2022/2023 2023/2024 2024/2025 Year- End 2025/2026 Acquisition
130 8000 600 01 96 Community Park $0 $0 $0 $0 $0
Sub-Total 0 0 0 0 0
Maintenance and Operations
130 5005 510 10 00 Professional Services-Admin Fee - - - - 0 Sub-Total 75,607 1,500 1,500 - 0
Debt Service
130 5005 700 01 00 Debt Service - Principal 32,000 173,000 177,000 177,000 180,000 130 5005 700 02 00 Debt Service - Interest 69,878 67,510 63,467 63,467 59,344 Sub-Total 101,878 240,510 240,467 240,467 239,344
Total Expenditures $177,485 $240,510 $240,467 $240,467 $239,344 Budget Highlights:

Bond 2007 was refinanced in FY 20/21, therefore through the financial transaction the debt was paid off with the issued funds of 2020 Revenue Bond 54 Section 7, Item B.

STAFF REPORT
MEETING DATE: June 11, 2025
PRESENTER: Jesus A. Gonzalez, City Engineer
SUBJECT: Approval of Common Use of Easement with Fresno Irrigation District for Vesting Tentative Tract No. 6447 (JG)
RECOMMENDATION: Council by motion adopt resolution approving the Common Use of Easement Agreement with Fresno Irrigation District for Tract No. 6447 and authorizing the City Manager to sign the agreements.

EXECUTIVE SUMMARY:

Joseph Crown Construction and Development, Inc. (Crown), submitted Vesting Tentative Tract Map No. 6447 (TM 6447), proposing to subdivide approximately 29 acres located on the north side of Kearney Boulevard, approximately 1,000 feet west of Siskiyou Avenue. TM 6447 consists of one hundred and sixty-three (163) single-family residential lots and one (1) outlet for future development of a domestic water well. TM 6447 was approved by the Planning Commission on July 15, 2024 and City Council on September 25, 2024.

In the time since approval of TM 6447, Crown has submitted Final Map No. 6447 (FM 6447) improvement plans, and required technical documents for the subdivision as well as has undergone the Fresno Local Agency Formation Commission’s annexation process for expanding the City limits to encompass the development. The final map and plans are currently undergoing a review process after which, Staff will bring before Council the final map approval and acceptance of dedications for public use as a future item.

Fresno Irrigation District (FID) owns, operates, and maintains existing 42” diameter Siskiyou Lateral No. 146 pipeline within an existing easement along the north side of Kearney Boulevard, at the southern boundary of FM 6447. As a Condition of Approval imposed by FID, the subdivision is limited to sidewalk, landscape and irrigation improvements and a one-foot streetlight foundations encroachment within FID’s easement. In order for FID to allow these improvements, the City must enter into an Agreement for Common Use of Easement (CUA) with FID. The CUA is applicable to the land area that will be of “common use” to both the City and FID, as described and shown on Exhibits ‘A’ and ‘B’ of the CUA, Exhibit ‘1’. The primary purpose of the CUA is to establish the responsibilities and liabilities of each party for the common use area. The CUA will allow the developer to construct the pedestrian sidewalks/pathways, landscaping, irrigation and streetlight facilities within the common use area, as required by the City. In accordance with the CUA, upon City acceptance of the improvements, the City assumes responsibility for repair to any damage caused to the FID pipeline.
55 Section 7, Item C.

Approval of the CUA will allow FID to approve the improvement plans prior to the City’s FM approval and acceptance of dedications thereby eliminating future delays affecting the recordation of necessary development documents.

FISCAL IMPACT:

There is no fiscal impact resulting from execution of the Agreement for Common Use of Easement.

ATTACHMENTS:

A. Resolution
56 Section 7, Item C.

Attachment ‘A’
RESOLUTION NO. 25-____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN, CALIFORNIA,

APPROVING COMMON USE OF EASEMENT AGREEMENT WITH FRESNO IRRIGATION FOR TRACT NO. 6447
WHEREAS, Vesting Tentative Tract Map No. 6447, was approved by the Planning Commission on July 15, 2024 and the City Council on September 25, 2024; and WHEREAS, Joseph Crown Construction and Development, Inc. has submitted an application for a Final Map for Tract No. 6447; and
WHEREAS, the City Council has considered the application for Final Map for Tract No. 6447 under the Subdivision Map Act, Subdivision Ordinance of the City of Kerman, and proofs and evidence offered including the recommendations of the City Engineer, the City Surveyor, the City Planner, and the City Planning Commission; and
WHEREAS, City of Kerman, as a condition of approval, requires Final Tract No. 6447 to construct improvements on the north side of Kearney Boulevard, along the southern boundary of the development; and
WHEREAS, Fresno Irrigation District (FID) owns, operates and maintains existing 42” diameter Siskiyou Lateral No. 146 within an existing easement along the north side of Kearney Boulevard, at the southern boundary of Tract No. 6447; and WHEREAS, FID, as a condition of approval, limits the improvements within its existing easement to sidewalk, landscape, irrigation improvements and one-foot streetlight foundations encroachment; and
WHEREAS, in order for FID to allow the improvements within its existing easement, the City must enter into an Agreement for Common Use of Easement (CUA) with FID for establishing responsibilities and liabilities of each party with the common use area.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KERMAN DOES RESOLVE AND ORDER AS FOLLOWS:

1. The foregoing recitals are true and correct and incorporated by reference as if fully set forth.

2. The Common Use of Easement Agreement between the City of Kerman and FID and Development, Inc., a copy of which is attached hereto as Exhibit ‘1’, is hereby approved.

3. This resolution is effective upon adoption.
57 Section 7, Item C.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 11th day of June, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.

Maria Pacheco
Mayor
ATTEST:

Josie Camacho
City Clerk
58 Section 7, Item C.
59 Section 7, Item C.
60 Section 7, Item C.
61 Section 7, Item C.
62 Section 7, Item C.
63 Section 7, Item C.
64 Section 7, Item C.
65 Section 7, Item C.
66 Section 7, Item C.
67 Section 7, Item C.
68 Section 7, Item C.
69 Section 7, Item C.
70 Section 7, Item C.
71 Section 7, Item C.

STAFF REPORT
MEETING DATE: June 11, 2025
PRESENTER: Jesus A. Gonzalez, City Engineer
SUBJECT: Resolution Initiating Proceedings to Review Improvements and Establish Assessments, Pursuant to the Landscaping and Lighting Act of 1972, for the Annexation of Tract 6447 into Landscape and Lighting District No. 1, to Review the Improvements and Establish Assessments for Fiscal Year 2025-26 and to Set a Public Hearing (JG) RECOMMENDATION: Council by motion adopt the resolution to initiate proceedings pursuant to the Landscaping and Lighting Act of 1972 for the annexation of Tract 6447 into Landscape and Lighting District No. 1, to review the improvements and establish assessments for Fiscal Year 2025-2026 (FY25-26), and to set a public hearing for a future date.

EXECUTIVE SUMMARY:

The Landscape and Lighting District (LLD) No. 1 maintains public landscaping in median islands and landscape strips along major streets. The revenue from the LLD also pays for street lighting costs for areas within it. All new developments are annexed into the LLD and charged an annual assessment that is collected with property taxes. There are currently 14 sub-areas within the LLD.

Joseph Crown Construction and Development, Inc. (“Applicant”) is currently seeking to develop a 163-lot subdivision located on the north side of Kearney Boulevard, approximately 1,000 feet west of Siskiyou Avenue. The Applicant is in the process of submitting a final map for Tract 6447, for approval by the City Council, which will be considered as a separate agenda item at a future meeting. A condition of approval for Tract 6447 requires that Applicant request annexation to the City ‘s LLD. Consistent with that requirement, the Applicant has submitted a petition and waiver to the City, requesting annexation into LLD No. 1 and agreeing to the initial assessment to be established for FY25-26. Thereafter, the property would be subject to the annual levy amounts approved by Council for LLD No. 1 for each fiscal year.

The Applicant has also (i) waived certain resolutions, report, notices of hearing, and right of majority protest, and consented to a public hearing and adoption of a resolution by the City Council ordering annexation and levy of the Property; and (ii) expressly waived any requirement to have a ballot and majority protest proceeding per Government Code Section 53753 or as may be permitted by the Act. As a result of this waiver, the annexation process can be expedited as no report by the City Engineer is required to be prepared and filed with the City Clerk, nor is a ballot and majority protest required.
72 Section 7, Item D.

This is the first of two actions by Council. Approving the resolution does not annex the property or implement the assessment; it only starts the process and allows for further discussion. The Council will make a final decision on this matter at the public hearing set by the Council.

FISCAL IMPACT:

Each lot that is annexed will pay the assessment rate to be established. Thereafter, the City Council will approve assessment amounts for Area 15 of the LLD No. 1, which may be adjusted to reflect increases based on the consumer price index.

ATTACHMENTS:

A. Resolution w/Exhibits
B. Petition and Waiver
73 Section 7, Item D.

Attachment ‘A’
RESOLUTION NO. 25-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN,

CALIFORNIA INITIATING PROCEEDINGS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR THE ANNEXATION OF TRACT 6447 INTO LANDSCAPING AND LIGHTING DISTRICT NO. 1, AREA 15, TO REVIEW THE IMPROVEMENTS AND ESTABLISH ASSESSMENTS AND TO SET A PUBLIC HEARING.

WHEREAS, the Landscaping and Lighting Act of 1972 (“Act”) provides and establishes procedures for annexing properties to an existing Landscaping and Lighting Assessment District; and
WHEREAS, on September 7, 1993 the Kerman City Council established the “Kerman Landscape and Lighting District No. 1” (“LLD No. 1”) to levy and collect assessments to cover the cost of maintaining landscaping, irrigation systems and streetlights within the LLD No. 1 public right-of-way; and
WHEREAS, the City Council has determined that, to finance the installation, operation, and maintenance of landscaping, irrigation and lighting improvements which benefit the aforementioned tract and public lands, it should be annexed into the District; and WHEREAS, not only will annexing this new development into the existing district ensure that all benefitting parcels share equally in the costs to maintain the improvements, but consolidating the benefitting developments into a single assessment district will facilitate their management by the City; and
WHEREAS, the proceedings for the annexation of the aforementioned tract and public lands to the District are authorized by and will be conducted pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 (commencing with Section 22500) of Division 15 of the California Streets and Highways Code; and
WHEREAS, pursuant to Streets and Highways Code section 22608, resolutions, reports, notices of hearing, and the right of majority protest may be waived with the written consent of all landowners of the territory to be annexed; and
WHEREAS, Joseph Crown Construction and Development, Inc., is the landowner of the property proposed for annexation and generally located on the northside of Kearney Boulevard approximately 1,000 west of Siskiyou Avenue, and which is also known as Tract 6447 whose final map is being concurrently considered by the City Council, as further described or depicted on Exhibit ‘A’ (“Subject Property”); and
WHEREAS, Joseph Crown Construction and Development, Inc., has provided a petition for annexation and written consent to waiver of resolutions, reports, notices of hearing, and the 74 Section 7, Item D.
right of majority protest regarding the Subject Property, as well as consenting to the amount of the proposed levy for the 2025-26 fiscal year; and
WHEREAS, as a result, no report by the City Engineer is required to be prepared and filed with the City Clerk which outlines the land to be annexed, etc.; and WHEREAS, this City Council now desires to proceed to adopt this Resolution of Intention to declare its intent to annex the Subject Property into LLD No. 1, and to set and specify the levy and collection of assessments, and to set a time and place for a public hearing relating to the annexation of the subject property into LLD No. 1, Area 15.

NOW, THEREFORE, the City Council of the City of Kerman resolves as follows:

1. The City Council proposes to annex the property into Area 15 of Kerman Landscaping And Lighting District No. 1 pursuant to the Landscaping and Lighting Act of 1972 (Section 22500 and following, Streets and Highways Code). The property proposed to be annexed is identified on Exhibit ‘A’.

2. The property proposed to be annexed and to be specifically charged for the improvements shall include all of the land identified on Exhibits ‘A’ and ‘B’ (excluding Outlot “A” of Tract 6447) and shall be designated “Kerman Landscaping & Lighting District No. 1, Area 15.”

3. The improvements which are provided for the properties within Kerman Landscaping & Lighting District No. 1, and which shall be provided for the property within Kerman Landscaping & Lighting District No. 1, Area 15, and through the assessments levied annually thereon shall include the following:
(a) The installation or planting of landscaping, including, but not limited to, street trees, parkways, and median islands;
(b) The installation or construction of irrigation systems; (c) The installation or construction of public lighting, facilities, including, but not limited to, street lights;
(d) The maintenance and servicing of any of the foregoing.

4. The City Engineer of the City of Kerman is hereby designated the engineer for the annexation proceedings. The City Council finds that the landowner has presented a written consent, and that the engineer is not required to prepare and file with the City Clerk a report in accordance with Article 4 of Chapter 1 of the Landscaping and Lighting Act of 1972 for the annexation proceedings, consistent with the Landscaping and Lighting Act of 1972.

5. NOTICE IS HEREBY GIVEN that a public hearing is set for the regular meeting of the City Council on June 25, 2025, at 6:00 p.m., in the Council Chamber of City Hall, 850 75 Section 7, Item D.

S. Madera Avenue, Kerman, California 93630, All interested persons shall be heard on the question of the levy and collection of the proposed assessments. Written protests may be filed with the City Clerk at any time prior to the conclusion of the hearing. A written protest shall state all grounds of objection and shall contain a description sufficient to identify the property owned by the protesting person or persons.

6. This resolution shall be effective upon adoption.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on June 11, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.

Maria Pacheco
Mayor
ATTEST:

Josie Camacho
City Clerk
76 Section 7, Item D.

Exhibit ‘A’
Proposed Boundaries to Kerman Landscaping & Lighting District No. 1, Area 15, City of Kerman, Fresno County, California

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF KERMAN, COUNTY OF FRESNO,STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

Lots 5, 6, 7, 8, and the East Quarter of Lots 25, 26, 27, and 28 of the Fresno Irrigated Farms Company Tract, recorded in Book 8, Page 1 of Record of Surveys, Fresno County Records, also being within the Northeast Quarter of Section 11, Township 14 South, Range 17 East, Mount Diablo Base and Meridian:

Excepting therefrom that portion lying east of the following described line:

COMMENCING at the East Quarter corner of said Section 11; thence South 89°52'32" West, along the South line of said Northeast Quarter, a distance of 660.73 feet; thence North 0°07'28" West, a distance of 20.00 feet to the South line of said Lot 8 and the Point of Beginning; thence continuing North 0°07'28" West, a distance of 1299.53 feet to a point on the North line of said Lot 5 said point being 680.22 feet westerly along said North line and prolongation thereof from the East line of said Northeast Quarter of Section 11, and also being the Point of Termination.

The property is subject to a pending map for Tract 6447, whose final map is being considered by the City Council. The boundaries of the annexation shall be comprised of lots 1- 163, of the Tract 6447, and shall not include Outlot A. The boundaries of Tract 6447 are depicted as follows:
77 Section 7, Item D.

Exhibit ‘B’
78 Section 7, Item D.

Attachment ‘B’
1 [DEVELOPER LETTERHEAD]
RE: Petition (Including Consent And Waiver) Requesting Annexation To Kerman Landscape and Lighting District No. 1 (Vesting Tentative Tract Map No. 6447)
Dear City Council of the City of Kerman:

The undersigned landowner does hereby certify under penalty of perjury that the following statements are all true and correct:

1. The undersigned is authorized to represent the landowner identified below and is its designated representative to request and petition the City Council (the “Council”) of the City of Kerman (the “City”) for annexation to Kerman Landscape and Lighting District No. 1 (“District No. 1”) pursuant to the provisions of Landscaping and Lighting Act of 1972 (“Act”), commencing at California Streets and Highways Code section 22500 et seq., and to authorize certain other consents and waivers contained herein. The boundaries of the territory to be annexed are described on Exhibit “A” hereto and by this reference incorporated herein.

2. The landowner hereby certifies that as of the date indicated opposite of the undersigned’s signature, the landowner listed herein is the owner of the property within the proposed annexation boundary of District No. 1, (the “Property”), which Property’s boundary is further described in Exhibit “A” hereto.

3. The landowner, pursuant to Sections 22607 and 22585 et seq. of the Act, hereby requests that proceedings be commenced:
(a) To annex the Property to District No. 1 for the purposes including the following:
 The installation or construction of public lighting, facilities, including, but not limited to, street lights;
 The installation or planting of landscaping, including, but not limited to, street trees, parkways, and median islands;
 The installation or construction of irrigation systems;  The maintenance and servicing of any of the foregoing. (b) To authorize the levy of assessments on the Property in accordance with the rate and method of apportionment of District No. 1 to finance the above-mentioned services, incidental expenses and fees; and
79 Section 7, Item D.
2 (c) To authorize the issuance of bonds for District No. 1 if applicable.

4. In accordance with the provisions of the Act, and specifically Section 22608 for annexation proceedings, resolutions, report, notices of hearing, and right of majority protest shall be waived with written consent of the owners of property within the territory to be annexed, the landowner (i) expressly waives the resolutions, report, notices of hearing, and right of majority protest, and consents to a public hearing and adoption of a Resolution by the City Council ordering annexation and levy of the Property; and (ii) expressly waives any requirement to have a ballot and majority protest proceeding per Government Code Section 53753 or as may be permitted by the Act.

5. The landowner expressly waives all applicable waiting periods for the election and waives the requirement for analysis, engineer’s report, etc., and consents to not having such materials provided to the landowner, and expressly waives any requirements as to the form of the ballot.

6. The landowner acknowledges that the last levy for annexation into LLD No. 1 was in the amount of $369.84 and the assessment process for this annexation maybe in an approximate similar amount and that the levy may be adjusted by the City annually consistent with the Act.

7. The undersigned warrants it is the owner of one hundred percent (100%) of the Property. The undersigned warrants that there are no liens or encumbrances on the Property in the favor of any lender, including but not limited to any deeds of trust, mortgages, leases, or liens of a similar nature.

8. The undersigned agrees to execute such additional or supplemental agreements as may be required by the City to provide for any actions and conditions under this petition, including any amount of cash deposit required to pay for the City’s costs related to annexing into District No. 1.

9. The undersigned agrees to cooperate with the City, its attorneys and consultants and provide all information and disclosures required by the City regarding the assessment to purchasers of the Property or any part of it.
[Remainder of Page Intentionally Left Blank]
80 Section 7, Item D.
3 IN WITNESS WHEREOF, I hereunto set my hand this ____ day of June 2025.

OWNER:

Joseph Crown Construction and
Development, Inc.,
a California Corporation

By: ________________________________
Joseph Donald Crown
President
The address of the above owner for receiving notices is:

To: Joseph Crown Construction and
Development, Inc.
5320 E. Pine Avenue
Fresno, CA 93727
Attention: Joseph Donald Crown
Phone: (559) 840-7971
E-mail: [email protected]

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF KERMAN THIS ______ DAY OF JUNE 2025.
______________________________
Josie Camacho, City Clerk
81 Section 7, Item D.
4 EXHIBIT A

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF

KERMAN, COUNTY OF FRESNO,STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

Lots 5, 6, 7, 8, and the East Quarter of Lots 25, 26, 27, and 28 of the Fresno Irrigated Farms Company Tract, recorded in Book 8, Page 1 of Record of Surveys, Fresno County Records, also being within the Northeast Quarter of Section 11, Township 14 South, Range 17 East, Mount Diablo Base and Meridian:

Excepting therefrom that portion lying east of the following described line:

COMMENCING at the East Quarter corner of said Section 11; thence South 89°52'32" West, along the South line of said Northeast Quarter, a distance of 660.73 feet; thence North 0°07'28" West, a distance of 20.00 feet to the South line of said Lot 8 and the Point of Beginning; thence continuing North 0°07'28" West, a distance of 1299.53 feet to a point on the North line of said Lot 5 said point being 680.22 feet westerly along said North line and prolongation thereof from the East line of said Northeast Quarter of Section 11, and also being the Point of Termination.
82 Section 7, Item D.
5 83
Section 7, Item D.

STAFF REPORT
MEETING DATE: June 11, 2025
PRESENTER: John Jansons, City Manager
SUBJECT: Consideration of Monthly Stipend for Members of the City Recreation Commission (JAJ)
RECOMMENDATION: Council by motion consider whether to adopt a resolution establishing a stipend per meeting for members of the Parks, Recreation, and Community Services Commission and to determine the amount of such stipend.

DISCUSSION:

This agenda item is presented from a request of Mayor Pro Tem Yep at the January 8, 2025 Council Meeting.

This matter was considered by Council on February 26, 2025 with no decision other than to “table this matter to a future date” when the full Council would be present.

Chapter 2.26 of the Kerman Municipal Code (KMC) governs the operation of City Boards and Commissions; and Chapter 2.32 governs the Parks, Recreation, and Community Services Commission (“Recreation Commission”).

KMC Section 2.26.070 provides: “Members of city boards and commissions shall serve without compensation for their service unless otherwise provided by resolution of the city council.” Unlike Resolution Number 15-60 which established a per-meeting stipend for Planning Commissioners in the amount of $75 per meeting with a maximum of two meetings per month as needed, the City does not have a resolution addressing compensation for members of the Recreation Commission.

A brief survey of California cities reveals that payments to Commissioners varies greatly, with many paying nothing as Commission members are resident volunteers, to upwards of $350 per meeting for Planning Commissioners, with other advisory committees receiving $25 or $50 per meeting. It is noted that the Recreation Commission is an advisory body whereas the Planning Commission does have action authority under the KMC and state law.

The amount determined by Council would be paid per meeting for what is historically one meeting per month. Adoption of the attached resolution would authorize the proposed change effective July, 2025.

On May 28, 2025, Councilmember Herrera requested this matter be brought back to the City Council for further consideration.
84 Section 7, Item E.

FISCAL IMPACT:

The annual Recreation Commission cost would increase by the amount as established by the Council as per the table below assuming a full Commission of five members meeting once monthly.
5 Commissioners Stipend per Meeting 12 meetings Annual Cost $25.00 per meeting $1,500
$50.00 per meeting $3,000
$75.00 Per meeting $4,500
ATTACHMENTS:

A. Draft Resolution
85 Section 7, Item E.

Attachment ‘A’
RESOLUTION NO. 25-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN ESTABLISHING A MONTHLY

PAYMENT TO MEMBERS OF THE PARKS, RECREATION, AND COMMUNITY SERVICES COMMISSION IN THE AMOUNT OF $____ PER MEETING
WHEREAS, Chapter 2.26 of the Kerman Municipal Code (KMC) governs the operation of City Boards and Commissions; and
WHEREAS, Chapter 2.32 governs the Parks, Recreation, and Community Services Commission (“Recreation Commission”); and
WHEREAS, Section 2.26.070 provides: “Members of city boards and commissions shall serve without compensation for their service unless otherwise provided by resolution of the City Council”; and
WHEREAS, City Council has determined that it is in interest of the City to pay a permeeting stipend to members of the Recreation Commission; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Kerman:

1. The foregoing recitals are true and correct and incorporated by reference.

2. The City Council approves a $_____ stipend for each meeting up to two meetings per month to members of the City Parks, Recreation, and Community Services Commission.

3. The City Council directs the Director of Finance to amend the Fiscal Year 2025-20265 Budget to include Commission payments beginning July 2025 and to include such expenditures in future budget years unless this resolution is rescinded or amended.

4. This resolution is effective upon adoption.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 11th day of June, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
86 Section 7, Item E.

The foregoing resolution is hereby approved.
____________________________
Maria Pacheco
Mayor
ATTEST:
___________________________
Josie Camacho
City Clerk
87 Section 7, Item E.