Agenda packet — Kerman City Council, April 22, 2026 (part 1 of 2)

CITY COUNCIL REGULAR MEETING AGENDA
Wednesday, April 22, 2026 at 6:00 PM
City Hall, 850 S. Madera Avenue, Kerman, CA 93630
LEVINE ACT CONTRIBUTION PROHIBITIONS AND MANDATORY DISCLOSURE. The Political Reform Act in Govt Code Section 84308 restricts campaign contributions over $500 to a decision-making public official from a party or participant or their agent in a proceeding involving a contract, license, permit or entitlement for use. The Act requires disclosure of the contribution and recusal where a decision-maker has received $500 or more from a party or participant to a proceeding in the prior 12 months. Participants and agents are required to make this disclosure as well.

A Council Member’s 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.

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

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 - Remembrance of William (Bill) Stith
B. Mid Valley Disposal - Recycler of the Year
C. California Park & Recreation Society District 7 - Parks Rodeo Champions 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 - April 8, 2026
RECOMMENDATION: Council approve minutes as presented.

B. SUBJECT: Payroll (JA)
3/29/26 to 4/11/26: $277,062.26; Retro Pay & Other: $1,378.04; Overtime: $10,188.54; Standby: $2,062.76; Comp Time Earned: 50.63
RECOMMENDATION: Council approve payroll as presented.

C. SUBJECT: Monthly Investment Report (JA)
RECOMMENDATION: Council accept monthly investment report as presented.

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

E. SUBJECT: California Cities Week (JAJ)
RECOMMENDATION: Council adopt a Resolution recognizing April 19-25, 2026, as California Cities Week and encouraging civic involvement in the City.

F. SUBJECT: Resolution Accepting the Siskiyou Avenue Rehabilitation – Whitesbridge to Kearney, Federal Project No. STPL-5291(033) and Authorizing Filing of the Notice of Completion (JG) 2 RECOMMENDATION: Council by motion adopt the resolution accepting the Siskiyou Avenue Rehabilitation – Whitesbridge to Kearney, Federal Project No. STPL-5291(033) and authorizing the City Engineer to record the Notice of Completion.

G. SUBJECT: Amendment of Authorized Positions List and Job Descriptions (JAJ) RECOMMENDATION: Council adopt resolution approving amendments to the authorized position list by deleting the Executive Assistant to City Manager/City Clerk and adding positions of City Clerk and Executive Assistant to the City Manager; approving two job descriptions; and amending salary scales by adding salary schedules for the two positions.

6. PUBLIC HEARINGS
These hearings are scheduled at the time stated and will be heard by the Council as close to the time stated as possible.

A. SUBJECT: Public hearing regarding General Plan Amendment (GPA 2025-01), Pre-zone/Rezone (REZ 2025-01), Vesting Tentative Subdivision Map (TSM 2025-01), Annexation (ANX 2025-01), and Environmental Assessment (ENV 2025-02) pertaining to five (5) parcels totaling approximately 88.93 acres, generally bound to the north by West Nielsen Avenue, to the west by North Del Norte Avenue, to the south by West Whitesbridge Road (State Route 180), and to the east by North Vineland Avenue (025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020- 120-17S). (JC)
RECOMMENDATION: Council to conduct a public hearing, deliberate, and by motion:

1. Adopt a resolution of the City Council of the City of Kerman 1) Adopting Mitigated Negative Declaration (ENV 2025-02; SCH #2025121223) and Mitigation Monitoring and Reporting Program for General Plan Amendment 2025-01; and 2) Approving General Plan Amendment 2025-01 to amend the General Plan Land Use Map for three parcels identified as Assessor’s Parcel Numbers 025-130-48, 025-130-47, and 025-130-60S totaling approximately 54.2 acres, changing approximately 29 acres to 31 acres of MDR – Medium Density Residential and approximately 24 acres to 21 acres of GC – General Commercial, located on the east side of North Madera Avenue between West Whitesbridge Road and West Nielsen Avenue (ENV 2025-02 and GPA 2025-01); and

2. Introduce by title only an ordinance of the City Council of the City of Kerman to amend the Official Zoning Map of the City of Kerman to pre-zone five parcels identified as Assessor’s Parcel Numbers 025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020-120-17s totaling approximately 88.93 acres to zoning districts consistent with the proposed City of Kerman General Plan land use designations, resulting in approximately 57 acres zoned SD-R-3.5 and 31 acres zoned CG, located between West Nielsen Avenue, North Del Norte Avenue, West Whitesbridge Road (State Route 180), and North Vineland Avenue (REZ 2025-01). 3 7. DEPARTMENT REPORTS
A. SUBJECT: Presentation of the City of Kerman 2024/2025 Auditor’s Report and Financial Statements (JA)
RECOMMENDATION: Council accept the City of Kerman 2024/2025 Auditor’s Report and Financial Statements as presented.

B. SUBJECT: An Ordinance of the City Council of the City Of Kerman Amending Section 2.55.060 of Title 2, Chapter 2.55 of The Kerman Municipal Code to Adjust the Boundaries of City Council Election District Nos. 1, 3, And 4 and Add Annexed Property to the City Council District Boundaries Map. (JAJ & HCM)
RECOMMENDATION: Council waive full reading and introduce ordinance of the City Council of the City of Kerman amending Section 2.55.060 of Title 2, Chapter 2.55 of the Kerman Municipal Code to adjust the boundaries of City Council Election District Nos. 1, 3, and 4 and Adding Annexed Property to the City Council District Boundaries Map.

C. SUBJECT: Ordinance Adding Chapter 5.60 Relating to Charitable Car Washes to Title 5 of the Kerman Municipal Code (JJ)
RECOMMENDATION: Council adopt an Ordinance Adding Chapter 5.60 Relating to Charitable Car Washes to Title 5 of the Kerman Municipal Code.

8. CITY MANAGER/STAFF COMMUNICATIONS

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.gov.

ADA Compliance and Reasonable Accommodation. The Council has adopted a Reasonable Accommodation Policy, which is available on the City website at www.cityofkerman.gov or upon request by emailing the City Clerk at [email protected] or calling (559) 550-1414. The Policy 4 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.gov.

Date: April 17, 2026 /s/ Dalia Santana-Zamudio, Deputy Clerk 5 A PROCLAMATION IN REMEMBRANCE OF

WILLIAM (BILL) STITH
WHEREAS, William (Bill) Stith was born on July 12, 1937, in Fresno, California, and moved with his family to Kerman at a young age, where he made Kerman his home, raised his family, and lived for over 65 years; and
WHEREAS, in 1958, Bill began his career with the Kerman Post Office, where he worked for 34 years, serving as one of Kerman’s first mail carriers and also as Postmaster in Tranquility; and WHEREAS, Bill served the community in many roles, including Chairman of the Harvest Festival in the 1960s, Grand Marshal in 2016, School Board President and Member, a Charter Member of the Regional Occupational Program (ROP), and a member of Kerman’s Beautification Committee; and WHEREAS, Bill loved his hometown and music, and founded and managed “The Mellowtones,” through which he wrote the song “Kerman, The Town with a Heart”; and WHEREAS, Bill was an avid tennis player until his mid-80’s and an avid golfer up to 2025; and WHEREAS, Bill’s greatest accomplishments were being a devoted husband, a loving father, and a proud grandfather; and
WHEREAS, with Bill’s passing at the age of 88, he leaves a legacy of faith, humor, family, service, and a deep love for his hometown of Kerman.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council of the City of Kerman hereby recognizes and honors William (Bill) Stith for his lifelong service and contributions to the community, celebrates his life and lasting legacy, and extends its deepest condolences to his family and loved ones.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Official Seal of the City of Kerman to be affixed on this 22th day of April, 2026.

Gary Yep,
District 1 Mayor Pro Tem
Maria Pacheco,
Mayor
Berdie Hall,
District 2 Councilmember
Ismael Herrera,
District 3 Councilmember
Raj Dhaliwal,
District 4 Councilmember
6 Section 3, Item A.

CITY COUNCIL REGULAR MEETING MINUTES
Wednesday, April 08, 2026 at 6:00 PM
City Hall, 850 S. Madera Avenue, Kerman, CA 93630

1. OPENING CEREMONIES
A. Call to Order – 6:01 p.m.

B. Roll Call – All members present.

C. Invocation - Performed by Mayor Pacheco.

D. Flag Salute – Performed.

2. AGENDA APPROVAL/ADDITIONS/DELETIONS
Motion made by Mayor Pro Tem Yep, Seconded by Councilmember Hall.

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

Absent: None
Motion passed 5-0-0-0.

3. PRESENTATIONS/CEREMONIAL MATTERS - None

4. PUBLIC FORUM – Rosalina Nunez and Deidre Adams

5. CONSENT CALENDAR
A. SUBJECT: Minutes - March 25, 2026
RECOMMENDATION: Council approve minutes as presented
B. SUBJECT: Warrants (JA)

1. Nos. 34309-34418 $1,299,942.24 ACH $710.78.

RECOMMENDATION: Council approve warrants and electronic bank transfers as presented. (Pursuant to Government Code 37208)
7 Section 5, Item A.

C. SUBJECT: Payroll (JA)
3/1/26 to 3/14/26: $273,893.51; Retro Pay & Other: $969.66; Overtime: $8,866.86; Holiday:
$0.00; Standby: $2,259.87; Comp Time Earned: 92.75
RECOMMENDATION: Council approve payroll as presented.

Motion made by Councilmember Herrera, Seconded by Councilmember Dhaliwal.

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

Absent: None
Motion passed 5-0-0-0.

6. PUBLIC HEARINGS - None

7. DEPARTMENT REPORTS
A. SUBJECT: Support of Measure C Replacement Initiatives (JAJ) RECOMMENDATION: Council to consider adoption of:

1. Resolution in Support of Fix Our Roads Ballot Measure (Alternative A) OR

2. Resolution in Support of “Better Roads, Safe Streets” Ballot Measure (Alternative B).

Representatives from each group presented on this item:

Mohammad Alimi, Fresno County Representative
Georgiena M. Vivian with “Fix Our Roads”
Ashley Swearengin and Veronica Garibay with “Better Roads, Safe Streets” Motion made to table the item to the May 13, 2026 meeting by Mayor Pro Tem Yep, Seconded by Councilmember Hall.

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

Absent: None
Motion passed 3-2-0-0.

Recess at 8:00 p.m.

Reconvened at 8:07 p.m.

B. SUBJECT: Presentation by ELS Architecture and Urban Design Regarding the Preferred Concept and Design of the Kerman Area Multi-Generational Resiliency Center (TJ) RECOMMENDATION: Staff recommends that the City Council receive a presentation, discuss, and provide input on concurrence with the preferred concept and/or provide recommended changes.

Presented by Clarence Mamuyac with ELS. Council provided comments, no action taken. 8 Section 5, Item A.

Public input provided by Jason Royal and Felipa Flores.

Councilmember Dhaliwal recused himself for items 7.C and 7.D due to owning a Gas Station and Carwash.

C. SUBJECT: Ordinance Adding Chapter 5.60 Relating to Charitable Car Washes to Title 5 of the Kerman Municipal Code (JJ)
RECOMMENDATION: Council consider Alternatives A and B of Charitable Car Wash Ordinance; waive full reading, and introduce Alternative A or Alternative B of Ordinance Adding Chapter

5.60 Relating to Charitable Car Washes to Title 5 of the Kerman Municipal Code.

Public input provided from Rudy Cubillos and Jason Royal.

Motion made to move forward with Alternative A, with amendments to limit noncharitable organizations to one per year and clarify enforcement of penalties by Councilmember Herrera, Seconded by Mayor Pacheco.

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

Absent: Dhaliwal
Motion passed 4-0-0-1.

Mayor Pro Tem Yep recused himself from item 7.D due to owning a grocery store.

D. SUBJECT: Gas Station and Grocery Store Analysis (JAJ) RECOMMENDATION: Council to review findings of Gas Station and Grocery Store Report, with possible direction to Staff.

Public input provided from Paul Brar, CPA. No Council action taken.

8. CITY MANAGER/STAFF COMMUNICATIONS

9. MAYOR/COUNCIL REPORTS/ANNOUNCEMENTS/FUTURE AGENDA ITEMS

10. CLOSED SESSION - None

11. ADJOURNMENT – 10:25 p.m.

MINUTES CERTIFICATION
I, Dalia Santana-Zamudio, Deputy 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 City Hall, 850 S. Madera Ave, Kerman, CA.

Date: April 9, 2026 /s/ Dalia Santana-Zamudio, Deputy Clerk 9 Section 5, Item A.

CITY OF KERMAN PAYROLL REPORT

RETRO PAY GROSS COMP TIME
& OTHER Hours Amount Hours Amount Hours Amount SALARY EARNED Grand Total $ 277,062.26 $ 1,378.04 192.55 $ 10,188.54 - $ - 104.00 $ 2,062.76 $ 290,691.61 50.63 PAY PERIOD: March 29, 2026 - April 11, 2026
OVERTIME HOLIDAY at 1/2 TIME STANDBY Salary

Page 1 ends

10 Section 5, Item B.

Pacific Member Bank Irvine 615-030525-245 5.00% 3/15/24 9/15/25 243,000.00 (243,000.00) - - 6,124.93 Discover Bank Greenwood 615-030525-245 3.55% 9/20/22 9/22/25 245,000.00 (245,000.00) - - 4,432.15 BMW Bank North Amer Salt Lake 615-030525-245 0.50% 9/25/20 9/25/25 249,000.00 (249,000.00) - - 627.62 Bank of Hapoalim B M New York 615-030525-245 5.05% 4/24/24 10/29/25 200,000.00 (200,000.00) - - 5,063.84 Flagstar Bank National Association 615-030525-245 5.20% 6/11/24 1/13/26 243,000.00 (243,000.00) - - 7,408.50 US Government Bonds
Federal Home Loan Bank 615-030525-245 5.00% 10/29/24 10/30/29 500,000.00 (500,000.00) - - 6,250.00 Federal Home Loan Bank 615-030525-245 4.80% 5/28/25 5/15/28 500,000.00 (500,000.00) - - 5,133.33 Federal Home Loan Bank 615-030525-245 4.50% 6/30/25 6/23/28 280,000.00 (280,000.00) - - 2,905.00 Federal Home Loan Bank 615-030525-245 4.50% 3/24/25 3/24/28 251,000.00 (251,000.00) - - 5,647.50 Federal Home Loan Bank 615-030525-245 4.75% 10/30/24 10/30/29 500,000.00 (500,000.00) - - 11,875.00 Federal Home Loan Bank 615-030525-245 4.50% 1/30/25 7/30/27 500,000.00 (500,000.00) - - 16,875.00 Federal Home Loan Bank 615-030525-245 4.52% 5/7/25 11/7/28 503,000.00 (503,000.00) - - 11,367.80 Federal Home Loan Bank 615-030525-245 5.00% 5/28/25 5/14/30 500,000.00 (500,000.00) - - 11,527.78 Federal Home Loan Bank 615-030525-245 4.55% 8/19/25 8/19/30 - - - 7,899.31 Federal Home Loan Bank 615-030525-245 4.50% 7/30/25 7/28/28 - - - 11,125.00 Federal Home Loan Bank 615-030525-245 4.00% 10/30/25 10/30/28 - - - 6,000.00 Federal Home Loan Bank 615-030525-245 4.20% 9/24/25 9/13/30 750,000.00 750,000.00 750,112.50 - Federal Home Loan Bank 615-030525-245 4.00% 10/15/25 10/15/29 535,000.00 535,000.00 534,566.65 - Federal Home Loan Bank 615-030525-245 4.00% 10/30/25 10/22/29 600,000.00 600,000.00 599,910.00 - Federal Home Loan Bank 615-030525-245 4.00% 4/22/26 2/27/30 600,000.00 600,000.00 599,760.00 Federal Home Loan Bank 615-030525-245 4.20% 11/26/25 11/26/29 525,000.00 525,000.00 525,015.75 - Federal Home Loan Bank 615-030525-245 4.15% 11/28/25 5/28/26 525,000.00 525,000.00 524,102.25 - Federal Home Loan Bank 615-030525-245 4.15% 1/28/26 1/28/31 750,000.00 750,000.00 751,057.50 - Federal Home Loan Bank 615-030525-245 4.10% 12/30/25 12/30/30 500,000.00 500,000.00 498,865.00 - United Security Bank CD
United Security Bank 1317802 4.75% 2/2/24 2/2/26 250,000.00 250,000.00 250,000.00 - United Security Bank 1317802 4.75% 6/27/24 6/27/26 250,000.00 250,000.00 250,000.00 - Average Rate 4.23%
Total CD's 5,214,000.00 71,000.00 - 5,285,000.00 5,283,389.65 120,652.90 Securities America Sweep Program
Beginning Balance 67.00 67.00
Transfers In/(Out) 7/1-7/31/25 19,482.01 19,482.01
8/1-8/31/25 (19,549.01) (19,549.01)
9/16-9/30/25 537,687.20 537,687.20
10/1-10/31/25 -512413.89 (512,413.89)
11/1-11/28/25 -24114.73 (24,114.73)
12/15-12/30/25 -1154.46 (1,154.46)
1/1-1/30/26 11174.2 11,174.20
2/2-2/27/26 84.74 84.74

67.00 11,196.06 - 11,263.06 11,263.06 -
11 Section 5, Item C.

CITY OF KERMAN
CD/Securities Portfolio
As of February 28, 2026 6/30/2025 6/30/2026 FY to Date
Interest Rate/ Opening Maturity Book Additions/ Book Interest Institution Account Number Trans. Date Date Date Balance (Deletions) Cashed In Balance Fair Value Paid Local Agency Investment Fund
Beginning Balance 98-10-400 18,458,212.85 18,458,212.85 - Interest 4.40% 7/15/25 202,228.94 202,228.94 202,228.94

4.34% 10/15/25 203,843.34 203,843.34

4.20% 1/15/26 199,464.05 199,464.05
- -
Transfers In/(Out) -
-
-
Total - LAIF 4.31% 18,458,212.85 605,536.33 - 19,063,749.18 19,063,749.18 202,228.94 Central Valley Money Market Acct 015030960
Beginning Balance 3,649,281.76 3,649,281.76
Interest 7/31/25 247.95 247.95 247.95
8/31/25 231.97 231.97
9/30/25 255.98 255.98
10/31/25 208.55 208.55
11/30/25 162.64 162.64
12/31/25 158.82 158.82
1/31/26 75.65 75.65
2/28/26 70.61 70.61
- -
Transfers In/(Out) -
10/14/25 (1,000,000.00) (1,000,000.00)
12/22/25 (1,500,000.00) (1,500,000.00)
-

0.08% -
3,649,281.76 (2,498,587.83) - 1,150,693.93 1,150,693.93 247.95 Subtotal All City Investments 2.87% 27,321,494.61 (1,822,051.50) - 25,499,443.11 25,497,832.76 323,129.79 27,321,561.61 (1,810,855.44) - 25,510,706.17 25,509,095.82 323,129.79 Market Value Adjustment (1,610.35)
(1,810,855.44)
(1,810,855.44)
(0.00)
Total Investments
12 Section 5, Item C.

Pacific Member Bank Irvine 615-030525-245 5.00% 3/15/24 9/15/25 243,000.00 (243,000.00) - - 6,124.93 Discover Bank Greenwood 615-030525-245 3.55% 9/20/22 9/22/25 245,000.00 (245,000.00) - - 4,432.15 BMW Bank North Amer Salt Lake 615-030525-245 0.50% 9/25/20 9/25/25 249,000.00 (249,000.00) - - 627.62 Bank of Hapoalim B M New York 615-030525-245 5.05% 4/24/24 10/29/25 200,000.00 (200,000.00) - - 5,063.84 Flagstar Bank National Association 615-030525-245 5.20% 6/11/24 1/13/26 243,000.00 (243,000.00) - - 7,408.50 US Government Bonds
Federal Home Loan Bank 615-030525-245 5.00% 10/29/24 10/30/29 500,000.00 (500,000.00) - - 6,250.00 Federal Home Loan Bank 615-030525-245 4.80% 5/28/25 5/15/28 500,000.00 (500,000.00) - - 5,133.33 Federal Home Loan Bank 615-030525-245 4.50% 6/30/25 6/23/28 280,000.00 (280,000.00) - - 2,905.00 Federal Home Loan Bank 615-030525-245 4.50% 3/24/25 3/24/28 251,000.00 (251,000.00) - - 5,647.50 Federal Home Loan Bank 615-030525-245 4.75% 10/30/24 10/30/29 500,000.00 (500,000.00) - - 11,875.00 Federal Home Loan Bank 615-030525-245 4.50% 1/30/25 7/30/27 500,000.00 (500,000.00) - - 16,875.00 Federal Home Loan Bank 615-030525-245 4.52% 5/7/25 11/7/28 503,000.00 (503,000.00) - - 11,367.80 Federal Home Loan Bank 615-030525-245 5.00% 5/28/25 5/14/30 500,000.00 (500,000.00) - - 11,527.78 Federal Home Loan Bank 615-030525-245 4.55% 8/19/25 8/19/30 - - - 7,899.31 Federal Home Loan Bank 615-030525-245 4.50% 7/30/25 7/28/28 - - - 11,125.00 Federal Home Loan Bank 615-030525-245 4.00% 10/30/25 10/30/28 - - - 6,000.00 Federal Home Loan Bank 615-030525-245 4.20% 9/24/25 9/13/30 750,000.00 750,000.00 747,742.50 14,787.50 Federal Home Loan Bank 615-030525-245 4.00% 10/15/25 10/15/29 535,000.00 535,000.00 530,645.10 - Federal Home Loan Bank 615-030525-245 4.00% 4/22/26 10/22/29 600,000.00 600,000.00 597,180.00 Federal Home Loan Bank 615-030525-245 4.00% 2/27/26 2/27/30 600,000.00 600,000.00 595,542.00 - Federal Home Loan Bank 615-030525-245 4.20% 11/26/25 11/26/29 525,000.00 525,000.00 522,989.25 - Federal Home Loan Bank 615-030525-245 4.15% 11/28/25 5/28/26 525,000.00 525,000.00 520,269.75 - Federal Home Loan Bank 615-030525-245 4.15% 1/28/26 1/28/31 750,000.00 750,000.00 743,047.50 - Federal Home Loan Bank 615-030525-245 4.10% 12/30/25 12/30/30 500,000.00 500,000.00 494,135.00 - United Security Bank CD
United Security Bank 1317802 4.75% 2/2/24 2/2/26 250,000.00 250,000.00 250,000.00 - United Security Bank 1317802 4.75% 6/27/24 6/27/26 250,000.00 250,000.00 250,000.00 - Average Rate 4.23%
Total CD's 5,214,000.00 71,000.00 - 5,285,000.00 5,251,551.10 135,471.52 Securities America Sweep Program
Beginning Balance 67.00 67.00
Transfers In/(Out) 7/1-7/31/25 19,482.01 19,482.01
8/1-8/31/25 (19,549.01) (19,549.01)
9/16-9/30/25 537,687.20 537,687.20
10/1-10/31/25 -512413.89 (512,413.89)
11/1-11/28/25 -24114.73 (24,114.73)
12/15-12/30/25 -1154.46 (1,154.46)
1/1-1/30/26 11174.2 11,174.20
2/2-2/27/26 84.74 84.74
3/13-3/27/26 -11263.06 (11,263.06)

67.00 (67.00) - 0.00 0.00 -
13 Section 5, Item D.

CITY OF KERMAN
CD/Securities Portfolio
As of March 31, 2026 6/30/2025 6/30/2026 FY to Date
Interest Rate/ Opening Maturity Book Additions/ Book Interest Institution Account Number Trans. Date Date Date Balance (Deletions) Cashed In Balance Fair Value Paid Local Agency Investment Fund
Beginning Balance 98-10-400 18,458,212.85 18,458,212.85 - Interest 4.40% 7/15/25 202,228.94 202,228.94 202,228.94

4.34% 10/15/25 203,843.34 203,843.34

4.20% 1/15/26 199,464.05 199,464.05
- -
Transfers In/(Out) -
-
-
Total - LAIF 4.31% 18,458,212.85 605,536.33 - 19,063,749.18 19,063,749.18 202,228.94 Central Valley Money Market Acct 015030960
Beginning Balance 3,649,281.76 3,649,281.76
Interest 7/31/25 247.95 247.95 247.95
8/31/25 231.97 231.97
9/30/25 255.98 255.98
10/31/25 208.55 208.55
11/30/25 162.64 162.64
12/31/25 158.82 158.82
1/31/26 75.65 75.65
2/28/26 70.61 70.61
3/31/26 80.71 80.71
- -
Transfers In/(Out) -
10/14/25 (1,000,000.00) (1,000,000.00)
12/22/25 (1,500,000.00) (1,500,000.00)
-

0.08% -
3,649,281.76 (2,498,507.12) - 1,150,774.64 1,150,774.64 247.95 Subtotal All City Investments 2.87% 27,321,494.61 (1,821,970.79) - 25,499,523.82 25,466,074.92 337,948.41 27,321,561.61 (1,822,037.79) - 25,499,523.82 25,466,074.92 337,948.41 Market Value Adjustment (33,448.90)
(1,822,037.79)
(1,822,037.79)
-
Total Investments
14 Section 5, Item D.

STAFF REPORT
MEETING DATE: April 22, 2026
PRESENTER: John Jansons, City Manager
SUBJECT: California Cities Week (JAJ)
RECOMMENDATION: Council adopt a Resolution recognizing April 19-25, 2026, as California Cities Week and encouraging civic involvement in the City.

DISCUSSION:

As sponsored by the California League of Cities, April 19-25, 2026 is “California Cities Week”, which is designated as a celebration dedicated to California’s 483 cities and honoring the passionate people who serve them.

California Cities Week is a time to highlight the impact of local government and the ways cities make life better for all Californians. Cities may differ wildly from each other, but they all share a commitment to public service and their communities. When people go to a park, drive on roads, visit the library, or call 911, that is local government at work.

By adopting a resolution (Attachment ‘A’) the City of Kerman joins in promoting a statewide effort celebrating the vital importance of cities and towns throughout California. Former Downey Mayor and current Assembly Member Blanca Pacheco authored a statewide resolution, ACR 143, commemorating California Cities Week, and the Assembly will vote on the resolution in April.

From the services that ensure communities thrive to the leaders and staff who make it all possible, California Cities Week celebrates and recognizes the many ways that our diverse cities make life better for all who call California home, and the city employees who power this progress.

ATTACHMENTS:

A. Resolution
15 Section 5, Item E.

Attachment ‘A’
RESOLUTION NO. 26-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN RECOGNIZING CALIFORNIA CITIES WEEK, APRIL 19–25, 2026, AND ENCOURAGING CIVIC INVOLVEMENT IN THE CITY WHEREAS, cities first arose in California when eight municipalities incorporated in 1850 to provide essential safety and health services to a rapidly growing population following the Gold Rush, and subsequent periods of economic growth and immigration; and WHEREAS, today California’s 483 cities and towns vary in size and scope and serve diverse communities throughout the state, from small rural neighborhoods to large urban regions; and WHEREAS, more than 80 percent of California’s population resides within cities and towns and relies on municipal services provided by local governments; and WHEREAS, the California Constitution grants cities important powers, including the authority to promote and regulate public safety, raise revenue for public purposes, and operate public works to furnish residents with light, water, power, heat, transportation, and communication; and
WHEREAS, cities provide millions of Californians with essential services, including but not limited to public libraries, fire protection, law enforcement, emergency medical and disaster response, parks and recreation, childcare, community and human services, solid waste and recycling management, water and sewer services, utilities, land use planning, housing, economic development, transportation planning, street and road maintenance, and telecommunications; and
WHEREAS, cities remain transparent and accountable to the communities they serve and continue to earn the trust placed in them by local residents through responsive, accessible, and locally driven governance; and
WHEREAS, California Cities Week is an opportunity to recognize the vital role cities play in the daily lives of residents and to encourage civic engagement, education, and participation in local government.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Kerman hereby proclaims the week of April 19 through April 25, 2026, as California Cities Week and that the City Council encourages residents, businesses, and community organizations to participate in California Cities Week activities and to engage with their local government to better understand municipal services, decision-making, and opportunities for civic involvement. 16 Section 5, Item E.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 22nd day of April 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.
_________________________
Maria Pacheco
Mayor
ATTEST:
__________________________
Dalia Santana-Zamudio
Deputy Clerk
17 Section 5, Item E.

STAFF REPORT
MEETING DATE: April 22, 2026
PRESENTER: Jesus A. Gonzalez, City Engineer
SUBJECT: Resolution Accepting the Siskiyou Avenue Rehabilitation – Whitesbridge to Kearney, Federal Project No. STPL-5291(033) and Authorizing Filing of the Notice of Completion (JG) RECOMMENDATION: Council by motion adopt the resolution accepting the Siskiyou Avenue Rehabilitation – Whitesbridge to Kearney, Federal Project No. STPL-5291(033) and authorizing the City Engineer to record the Notice of Completion.

EXECUTIVE SUMMARY:

The contractor, Cal Valley Construction, Inc., has satisfactorily completed the work required for the Siskiyou Avenue Rehabilitation – Whitesbridge to Kearney, Federal Project No. STPL5291(033). The Project consisted of the rehabilitation of the existing pavement inclusive of 1) dig out and reconstruction of pavement areas with structure failure; 2) grind and pavement overlay of areas where the pavement surface showed significant cracking and weathering; 3) fog seal placement over the entire pavement surface and; 4) the replacement or construction of various concrete improvements where damaged or non-compliant with ADA accessibility guidelines.

Additionally, the Project 1) constructed a raised crosswalk at the intersection of San Joaquin and Park Avenues; 2) removed and reconstructed failed concrete infrastructure on Kenneth Avenue, north of California Avenue; and 3) dug out and reconstructed pavement areas, and removed and reconstructed failed concrete infrastructure in the area bounded by Whitesbridge Road and Del Norte, California and Kenneth Avenues.

In order to close out the Project, City Council must accept the improvements and authorize the recording of a Notice of Completion.

The Project was advertised for bid and the construction contract was awarded to Cal Valley Construction, Inc., on October 9, 2024. The Contractor began construction on November 4, 2024, and completed the Project on April 14, 2025. The Project was completed within the specified contract time.

FISCAL IMPACT:

The City budgeted $1,365,000 for the Project. The estimated final Project cost is $1,300,000 including design, construction management, inspection, and contingency. The Project isfunded with Federal Surface Transportation Block Grant (STBG) grant funds and Local Transportation Funds.
18 Section 5, Item F.

ATTACHMENTS:

A. Resolution
19 Section 5, Item F.

Attachment ‘A’
RESOLUTION NO. 26-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN

ACCEPTING IMPROVEMENTS AND AUTHORIZING FILING OF THE NOTICE OF COMPLETION FOR THE SISKIYOU AVENUE REHABILITATION – WHITESBRIDGE TO KEARNEY, FEDERAL PROJECT NO. STPL-5291(033)
WHEREAS, Cal Valley Construction, Inc., has completed the work for Siskiyou Avenue Rehabilitation – Whitesbridge to Kearney, Federal Project No. STPL-5291(033); and WHEREAS, the City Public Works Inspector has inspected the improvements required by the City and all improvements required by the City have been completed; and WHEREAS, the City Engineer recommends acceptance of the Siskiyou Avenue Rehabilitation – Whitesbridge to Kearney, Federal Project No. STPL-5291(033) and requests Council to authorize the City Engineer to record the Notice of Completion for the Project.

NOW, THEREFORE, the City Council of the City of Kerman does resolve as follows:

SECTION 1. The foregoing recitals are incorporated by reference.

SECTION 2. The Council accepts the Siskiyou Avenue Rehabilitation – Whitesbridge to Kearney, Federal Project No. STPL-5291(033) and authorizes the City Engineer to record the Notice of Completion.

SECTION 3. This resolution is effective on adoption.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 22nd day of April 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.
__
Maria Pacheco
Mayor
ATTEST:

Dalia Sanatana-Zamudio
Deputy City Clerk
20 Section 5, Item F.

STAFF REPORT
MEETING DATE: April 22, 2026
PRESENTER: John Jansons, City Manager
SUBJECT: Amendment of Authorized Positions List and Job Descriptions (JAJ) RECOMMENDATION: Council adopt resolution approving amendments to the authorized position list by deleting the Executive Assistant to City Manager/City Clerk and adding positions of City Clerk and Executive Assistant to the City Manager; approving two job descriptions; and amending salary scales by adding salary schedules for the two positions.

DISCUSSION:

Amendment of the Authorized Positions List and updating of the job descriptions and salary scales for the position of City Clerk and Executive Assistant to the City Manager are needed to meet the current and future needs of the City and the Management Services Department.

While previously combined to address staffing shortages, it is recommended that the position of City Clerk and the position of the Executive Assistant to the City Manager be returned to separate positions.

The revised Job Descriptions and salary scales for City Clerk and Executive Assistant to the City Manager are included in Exhibit ‘B’ and ‘C’ to the draft Resolution.

FISCAL IMPACT:

Staffing vacancies within the Department in Fiscal Year 25/26 will offset the cost of this reorganization for the remainder of the current fiscal year. Position costs for FY 26/27 will be presented in the FY 26-27 budget recommendation.

ATTACHMENTS:

A. Resolution w/ Exhibits
21 Section 5, Item G.

Attachment ‘A’
RESOLUTION NO. 26-

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

TO THE AUTHORIZED POSITION LIST TO ADD POSITION OF CITY CLERK AND EXECUTIVE

ASSISTANT TO THE CITY MANAGER AND APPROVING JOB DESCRIPTIONS AND AMENDING

SALARY SCALES BY ADDING SALARY SCHEDULES FOR THE TWO POSITIONS WHEREAS, the current staffing needs within the Department of Management Services requires a dedicated City Clerk; and
WHEREAS, the current staffing needs within the Department of Management Services requires a dedicated Executive Assistant to the City Manager; and WHEREAS, these positions had previously been combined to addressstaffing shortages and position vacancies, and
WHEREAS, it is in the best interest of the City to have separate, dedicated positions of City Clerk and Executive Assistant to the City Manager in the Department of Management Services; and
WHEREAS, deleting the position of Executive Assistant to City Manager/City Clerk and adding positions of Executive Assistant to City Manager and City Clerk require amendment of the Authorized Positions List, approval of revised job descriptions, and amendment of salary scales.

NOW, THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF KERMAN THAT:

1. The above recitals and true and correct and incorporated herein by reference.

2. The Authorized Positions List (Exhibit ‘A’) is hereby amended to include separate positions for City Clerk and Executive Assistant to the City Manager.

3. The job descriptions for City Clerk and Executive Assistant to the City Manager are approved as set forth in Exhibits ‘B’ and ‘C’ attached hereto and incorporated by reference.

4. The Salary Schedule is to be amended by deleting the Executive Assistant to City Manager/City Clerk line item and adding the following:

Management Services Step A Step B Step C Step D Step E Step F Step G Executive Assistant $4,904 $5,149 $5,407 $5,677 $5,961 $6,259 $6,572 City Clerk** $5,725 $6,011 $6,312 $6,627 $6,959 $7,307 $7,672

5. The City Manager is authorized to fill those positions as soon as possible. 22 Section 5, Item G.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 22nd day of April 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.

Maria Pacheco
Mayor
ATTEST:

Dalia Santana-Zamudio
Deputy Clerk
23 Section 5, Item G.

Exhibit 'A'
Fiscal Year 25/26 Authorized Positions List
Management Services Department - As Amended
April 22,2026
Permanent Full-Time
City Manager 1
Executive Assistant to City Manager/City
Clerk
1 City Clerk
Executive Assistant to City Manager
Human ResourceOfficer
1 1
1 Human Resource Specialist 1
*Human ResourceTechnician 0
Administrative Assistant 1
Total for Management Services 6
24 Section 5, Item G.

Title City Clerk
Reports To City Manager
Bargaining Unit Kerman Miscellaneous Employees Association (KMEA-FSLA Exempt) Definition
Under general direction of the City Manager to plan, direct, supervise, and coordinate all activities of the City Clerk's Office relating to Council meetings, City elections, and public records in accordance with applicable laws, codes, policies, and procedures; and to do related work as required.

Distinguishing
Characteristics
The City Clerk is expected to assume overall responsibility for all facets of municipal activities for the City including providing leadership in establishing general direction, goals, and priorities. The City Clerk exercises independent judgment in the performance of a variety of professional, complex, and difficult duties.

Examples of Duties
 Attends City Council and other public meetings and records all official proceedings; prepare the minutes and other documents; direct the publication, filing, indexing, and safekeeping of all proceedings of the Council.
 Oversee the preparation, organization, printing, distribution, follow-up and document processing of all Council and committee agendas for which the City Council serves as the governingboard.  Give Notice of Public Hearings; (Post/Publish/Written Notification).  Provide assistance to the Mayor and City Council; prepare and present staff reports and other necessary correspondence.
 Oversee the inventory, file, and storage of a variety of City records and files, including, but not limited to, Council documents, ordinances, minutes, resolutions, municipal code, deeds, agreements, contracts, claims, campaign statements, statements of economic interest, and other historical documents; plan and direct the maintenance, updating and filing of official municipal documents.
 Maintain the City's Municipal Code; add/update amended Ordinance after adoption by City Council; coordinate with departments seeking input for suggested Code changes.  Serve as the City's Election Official; receive petitions relating to initiative, referendum, and recall; ensure conformance to election and government code.
 Serve as Filing Officer for the Fair Political Practices Commission; administer the City's Conflict of Interest Code; administer and file oaths of office and oaths of allegiance.  Maintain Custody of City Seal
 Supervise and participate in the development and administration of the City Clerk’s and City Council’s budget; direct the forecast of additional funds needed for staffing, equipment, materials and supplies; monitor and approve expenditures; implement mid-year adjustments.  Review payment options for accuracy including vendor payments for goods and services and expense claims; approve and sign checks for accounts payable.  Build and maintain positive working relationships with Mayor, City Council, co-workers, other City employees and the public using principles of good customerservice.  Receive and respond to public records requests according to the California GovernmentCode.  Assist the public and City staff by providing information and research assistance.

Exhibit 'B'

JOB DESCRIPTION
JD Revision Date: March 31, 2026
25 Section 5, Item G.

JOB DESCRIPTION – City Clerk Page 2
 Coordinate department activities with other departments, outside agencies and organizations; provide assistance to the Mayor and City Council; prepare and present staff reports and other necessary correspondence.
 Plan, organize, direct and review the activities and operations of the City Clerk’sOffice.  Provide or coordinate staff training to ensure the high standards necessary for the efficient and professional operation of the Department.
 Develop and implement long and short-term strategic plans in support of Department and Citywide goals and objectives; recommend and administer policies and procedures.  Performs other related duties asrequired.

Qualifications
Knowledge Of
 Applicable federal, state, and municipal laws and procedures; election laws and procedures; Brown Act procedures; and political reform requirements.
 Administrative management including records management, records retention, preservation procedures.
 Principles and practices of administration, training, performance evaluation, budgetary systems and procedures.
 Federal, state, and local government organization.

Ability To
 Organize, assign, and schedule work to accomplish goals within required time frames.  Provide effective customer service to those using the services of the City Clerk'sOffice.  Establish and maintain cooperative working relationships with a variety of citizens, public and private organizations, commissions/committees, City Council, and City staff.  Provide information and organize material in conformance with laws, regulations, andpolicies.  Communicate clearly and concisely, orally and in writing.  Analyze and interpret complex legal documents, contracts, administrative procedures,and regulations.
 Exercise sound, independent judgment within general policy guidelines.  Operate office equipment including computer systems and related software.  Work necessary hours and times to accomplish goals, objectives, and required tasks.  At the direction of the City Manager, select, supervise, train, and evaluate assignedstaff.

Education A BA degree in public or business administration or a closely related field and or/four years of responsible on-the-job experience in lieu of education requirement.

Experience
At least four years of responsible experience involving the administration of a City Clerk's or similar office including at least three years of supervisory experience. Prior administrative experience as a Deputy or Assistant City Clerk in a large municipality is highly desirable.

Special Qualifications
Driver’s License Possession of a valid California Class C Driver License is required. Individuals who do not meet this requirement due to physical disability will be reviewed on a case-by-case basis.

Certifications Possession of a valid Certified Municipal Clerk (CMC) Certificate preferred.

Physical Demands Light work in an office setting. Lifting, carrying and/or pushing 25 pounds maximum.

Probationary Period Twelve (12) months
26 Section 5, Item G.

Exhibit 'C'

JOB DESCRIPTION
JD Revision Date: March 31, 2026
Title Executive Assistant
Reports To City Manager
Bargaining Unit Kerman Miscellaneous Employees Association (KMEA) Definition
Perform a variety of highly responsible and complex secretarial, administrative and analytical support duties for the City Manager and Management Services Department, handling administrative details and coordination of day-to-day office operations and to do related work as required.

Distinguishing
Characteristics
The Executive Assistant is distinguished by the higher degree of independent judgment required; a thorough knowledge of divisional, department, and City-wide procedures and policies; the ability to choose among a number of alternatives in performing a variety of complex assignments without instruction in scheduling and completing work. Incumbents routinely handle highly confidential and sensitive information; may serve as staff support on internal and external committees.

Examples of Duties
• Perform a variety of complex, responsible and confidential duties for the City Manager and Department Heads.
• Review, prioritize, and route correspondence.
• Act as receptionist, screen calls, visitors, and refer inquiries as appropriate. • Maintain appointment schedules and daily calendars.
• Maintain and update the City’s website as Department webmaster and assist otherDepts. • Prepare and distribute the City’s E-newsletter, maintain electronic distribution list. • Gather, organize, and prepare information for routine reports. • Compile and maintain a variety of files and records of information. • Maintain manuals and update resource materials.
• Review work upon completion for conformance to divisional requirements. • Respond independently to letters and general correspondence of a routine nature. • Coordinate civic and social engagements as well as specialevents. • Participate in the preparation and administration of officebudget. • Create the graphic layout for the yearly budget, updating demographic information yearly. • Compile reports insuring materials are submitted on time. • Contact participants and coordinate meetings; complete and distribute follow-up reports. • Coordinates activities and events involving all City Departments. • Serves as Deputy City Clerk and assists in bi-monthly agenda packet preparation, gather information, contact meeting participants and especially provide proof readingassistance. • Scan and file resolutions, ordinances, agreements and other documents as directed by the City Clerk. • Add approved minutes to City website and Laserfiche for document retention as needed. • Navigate and research documents in document retention system (Laserfiche) as needed. Document and track administration records for retention and destruction. • Performs other related duties asrequired.

Qualifications
Knowledge Of
• English usage, spelling, grammar, and punctuation.
• Ability to update and navigate Civic Plus or other website systems and social mediaaccounts. • Knowledge of Adobe Acrobat for creation of interactive forms and survey compilation. • Computer software including word processing applications at an advanced level. • Reception and telephone techniques. 27
Section 5, Item G.

JOB DESCRIPTION - Executive Assistant Page 2
Knowledge Of
 Principles of providing supervision on projects and subordinates.  Principles and practices of effective business communication.  Effective facilitation of City Boards, Commissions, and Committees.  Procedures and operating details of municipal government; city-wide policies andprocedures.  Advanced record keeping principles, purchasing practices and procedures.  Department policies and procedures.
 Research techniques, sources, and availability of information.  Report writing and presentation.
 Communications/media services and resources.

Ability To
 Support office of the City Manager and Management Services Department activities  Maintain City Manager’s working calendar and schedule appointments and meetings.  Plan, organize, and carry out administrative work to meet deadlines.  Receive highly sensitive information and maintain confidentiality.  Understand and carry out oral and written directions.  Operate a personal computer terminal and utilize various software and/or word processing techniques.
 Communicate clearly and concisely, both orally and in writing.  Establish/maintain cooperative-working relationships with those contacted in the course ofwork.  Assist in compiling and maintaining complex records and preparing technicalreports.  Work independently in the absence of City Manager.
 Perform relatively complex arithmetic and statistical calculations and computations accurately.  Interpret and apply administrative and divisional rules, policies, and procedures.  Analyze situations carefully and adopt effective courses of action.  Compose correspondence and business letters from brief instructions.  Research techniques, sources, and availability of information.  Communications/media services and resources.
 Assist in developing, analyzing, and evaluating policies and procedures.  Consistently and predominately perform at a significant level of delegated responsibility and authority involving the technical and public relations aspects of the office functions.

Education Equivalent to the completion of twelfth grade supplemented by specialized administrative support/business related courses. An Associate’s degree or other advanced degree is preferred.

Experience
Five years of experience performing increasingly complex and highly responsible office and administrative support work of which at least two years involved administrative support work for one or more managers. Municipal/public sector government experience is highly desirable.

Special Qualifications
Driver’s License Possession of a valid California Class C driver License is required.

Certifications All levels require a minimum keyboarding ability of 50 words per minute or demonstrated proficiency at an advanced level in all MS Office Products.

Physical Demands Light work in an office setting. Lifting, carrying and/or pushing 25 pounds maximum.

Probationary Period Twelve (12) months
28 Section 5, Item G.

STAFF REPORT
MEETING DATE: April 22, 2026
PRESENTER: Jenna Chilingerian, Contract Planner
SUBJECT: Public hearing regarding General Plan Amendment (GPA 2025-01), Pre-zone/Rezone (REZ 2025-01), Vesting Tentative Subdivision Map (TSM 2025-01), Annexation (ANX 2025-01), and Environmental Assessment (ENV 2025-02) pertaining to five (5) parcels totaling approximately 88.93 acres, generally bound to the north by West Nielsen Avenue, to the west by North Del Norte Avenue, to the south by West Whitesbridge Road (State Route 180), and to the east by North Vineland Avenue (025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020-120-17S). (JC) RECOMMENDATION: Council to conduct a public hearing, deliberate, and by motion:

1. Adopt A Resolution of the City Council of the City of Kerman 1) Adopting Mitigated Negative Declaration (ENV 2025-02; SCH #2025121223) and Mitigation Monitoring and Reporting Program for General Plan Amendment 2025-01; and 2) Approving General Plan Amendment 2025-01 to amend the General Plan Land Use Map for three parcels identified as Assessor’s Parcel Numbers 025-130-48, 025-130-47, and 025-130-60S totaling approximately 54.2 acres, changing approximately 29 acres to 31 acres of MDR – Medium Density Residential and approximately 24 acres to 21 acres of GC – General Commercial, located on the east side of North Madera Avenue between West Whitesbridge Road and West Nielsen Avenue (ENV 2025-02 and GPA 2025-01); and

EXECUTIVE SUMMARY:

North Kerman LLC (Applicant) proposes General Plan Amendment (GPA) 2025-01, Pre-zone/Rezone (REZ) 2025-01, Vesting Tentative Subdivision Map (TSM) 2025-01, Annexation (ANX) 2025-01, and Environmental Assessment (ENV 2025-02) pertaining to five (5) parcels identified as Assessor’s Parcel Numbers (APNs) 025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020-120-17S, totaling approximately 88.93 acres, generally bound to the north by West Nielsen Avenue, to the west by North Del Norte Avenue, to the south by West Whitesbridge Road (State Route 180), and to the east by North Vineland Avenue. The Project would result in the amendment of the General Plan Land Use Map for approximately 54.2 acres (APNs 025-130-48, 025-130-47, 025-130-60S), pre-zoning of approximately 88.93 acres (APNs 025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020-120-17S), 29 Section 6, Item A.
subdivision of approximately 54.2 acres for future single-family (“Harvest Estates”) and commercial development (APNs 025-130-48, 025-130-47, 025-130-60S), and annexation of approximately 88.9 acres (APNs 025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020-120-17S) from the County of Fresno to City of Kerman. Future development of the Project area would require additional entitlements, including but not limited to a Development Plan Permit, Conditional Use Permit, and Site Plan Review.

As noted in the Recommendations above, at this meeting Council is asked to approve the resolution regarding the Mitigated Negative Declaration (ENV 2025-02) and General Plan Amendment (GPA 2025-01) and to introduce the ordinance amending the Zoning Map (REZ 2025-01). At the next meeting, Council will be asked to approve the following:

1. A Resolution to approve Vesting Tentative Subdivision Map 2025-01 to subdivide three parcels identified as Assessor’s Parcel Numbers 025-130-48, 025-130-47, and 025-130-60S into 183 single-family lots and one (1) commercial remainder parcel located on the east side of North Madera Avenue between West Whitesbridge Road and West Nielsen Avenue totaling approximately 54.2 acres (Vesting TSM 2025-01); and

2. A Resolution to initiate annexation of five parcels identified as Assessor’s Parcel Numbers 025- 130-48, 025-130-47, 025-130-60S, 020-120-11, 020-120-17S totaling approximately 88.93 acres and adjacent right-of-way from the County of Fresno into the Kerman City Limits, and detach the annexation area from the Kings River Conservation District, located between West Nielsen Avenue, North Del Norte Avenue, West Whitesbridge Road (State Route 180), and North Vineland Avenue (ANX 2025-01).

APPLICABLE CODES AND PROCEDURES:

KMC Title 16 – Subdivisions
KMC 17.10 – Residential Zones
KMC 17.12 – Commercial, Office, and Mixed-Use Zones
KMC 17.18 – Combining Zones
KMC 17.20 – General Site Planning and Development Standards KMC 17.98 – CEQA Procedures
KMC 17.112 – Amendments
KMC 17.116 – Public Notices and Hearings
Public Resource Code – 21000 et seq.

BACKGROUND:

Site Location
The Project area is currently in the jurisdiction of the County of Fresno, California, but within the City’s Sphere of Influence (SOI). The area is generally bound to the north by West Nielsen Avenue, to the west by North Del Norte Avenue, to the south by West Whitesbridge Road (State Route 180), and to the east by North Vineland Avenue, consisting of five (5) parcels that total approximately

88.93 acres. The area is identified by the Fresno County Assessor as Assessor’s Parcel Numbers 30 Section 6, Item A.
(APNs) 025-130-48 (19.61 acres), 025-130-47 (19.56 acres), 025-130-60S (15.07 acres), 020-120-11 (20 acres), and 020-120-17S (14.69 acres). The Project Vicinity Map is shown in Attachment ‘A’.

Setting and Surrounding Uses
As referenced in Table 1, the Project area is surrounded by existing agricultural land and singlefamily residences, existing commercial uses, and by a combination of existing agricultural land, single-family residences, and Harvest Elementary School. There are also several existing single-family residences within a quarter-mile proximity to the Project area boundaries, generally located along West Nielsen Avenue, North Madera Avenue, North Vineland Avenue, and West Whitesbridge Road (State Route 180).

The properties to the north are currently planned as Urban Reserve, properties to the east are planned as Medium Density Residential and Ponding Basins, properties to the south are planned General Commercial, Regional Commercial, Service Commercial, and Schools/Institutional and properties to the west are planned for Medium Density Residential and General Commercial. All the surrounding properties are either in Kerman City Limits or Sphere of Influence, except for the Urban Reserve planned land to the north, which is outside City Limits and the Sphere of Influence. The Aerial Photograph and Physical Setting of the Project area is shown in Attachment ‘B’.

Table 1. Existing Land Use, General Plan Designation, and Zone District of Surrounding Properties Direction
from site
Existing Land Use General Plan
Designation
Zone District
North Agriculture Urban Reserve (County) AE-20 – Agriculture Exclusive, 20 acre (County)
East Agriculture MDR – Medium Density
Residential, Ponding
Basins
AE-20 – Agriculture Exclusive, 20
acre, AL-20 – Agriculture Limited,
20 acre (County)
South Commercial GC – General
Commercial, RCRegional Commercial, SCService Commercial, and Schools/Institutional (S/I)
AL-20 – Agricultural Limited, 20
acre (County), CG- General
Commercial, and CS – Service
Commercial
West Agriculture; School
(Harvest
Elementary)
GC – General
Commercial, MDR -
Medium Density
Residential
AE-20 – Agriculture Exclusive, 20
acre, AL-20 – Agriculture Limited,
20 acre (County)
General Plan Land Use Designation
The Project area has a City of Kerman 2040 General Plan land use designation of MDR – Medium Density Residential and GC – General Commercial. The General Plan Land Use Map for the Project area is shown in Attachment ‘C’.

Zone District
The Project area is located within the City’s Sphere of Influence but since it is outside City limits, the site is zoned by the County. The site is within the County of Fresno’s Agricultural Exclusive – 20 Acres 31 Section 6, Item A.
(AE-20) and Limited Agricultural – 20 Acres (AL-20)zone district. The Zoning Map for the Project area is shown in Attachment ‘D’.

PROJECT ANALYSIS:

General Plan Amendment 2025-01
General Plan Amendment 2025-01 would modify the General Plan land use designations on approximately 54.2 acres of the Project area (APNs 025-130-48, 025-130-47, and 025-130-60S) to adjust the balance and spatial arrangement of Medium Density Residential (MDR) and General Commercial (GC) land uses while maintaining an overall mix of residential and commercial uses consistent with the City’s long-term planning objectives.

The amendment would increase the MDR-designated area from approximately 29 acres to approximately 31 acres and decrease the GC-designated area from approximately 24 acres to approximately 21 acres, shifting the GC designation from the western portion of the site to the northern portion as shown on the Proposed Land Use Map (Attachment ‘G’). The proposed configuration of land uses supports orderly growth by locating residential uses contiguous with existing and planned neighborhoods while positioning future commercial uses along the northern frontage where they can capitalize on visibility and access, consistent with the intent of the MDR and GC designations. The General Plan Amendment necessitates concurrent prezoning/rezoning of APNs 025-130-48, 025-130-47, and 025-130-60S to zoning districts that are compatible with the modified land use pattern to ensure consistency between the General Plan and Zoning Map.

Within the MDR-designated portion of the site, the Project proposes development of the “Harvest Estates” residential subdivision (Vesting TSM 2025-01) comprising 183 single-family residential lots on approximately 31.28 acres, resulting in a residential density of approximately 5.85 dwelling units per acre, which falls within the allowed MDR density range of 5 to 12 units per gross acre and is compatible with the MDR designation’s intent to accommodate a mix of single-family and small-lot multifamily housing types. The MDR portion of the site is proposed to be prezoned/rezoned to the SD-R-3.5 zoning district, which is compatible with the MDR land use designation and will allow implementation of the planned residential neighborhood consistent with applicable development standards.

No specific development is proposed at this time on the portion of the site designated GC; however, the GC area would be prezoned/rezoned to the CG zoning district, which is a zoning district compatible with the GC designation and intended for shopping centers, retail, office, and service commercial uses with appropriate landscaping, off-street parking, signage regulation, and site plan review. The GC area is proposed to be shifted from what is currently shown on the General Plan Land Use Map to a “massed” area at the southeast corner of Nielsen and Madera to accommodate potentially larger retailers or a full shopping center. Being located at the corner will also allow for access options from Nielsen Avenue once improved, as Caltrans will look to limit access points to Madera. Future commercial development in the GC/CG area would be subject to the development standards in KMC Section 17.12-2 and other applicable Zoning Code provisions, ensuring that subsequent projects undergo discretionary review to confirm consistency with the General Plan, compatibility with adjacent residential uses, and conformance with circulation, access, and design requirements.
32 Section 6, Item A.

Rezone 2025-01
Pre-zone/Rezone 2025-01 would pre-zone/rezone the ± 88.93-acre Project area (APNs 025-130-48, 025-130-47, 025-130-60S, 020-120-11, and 020-120-17S) to the Smart Development Residential 3,500 square feet average parcel size (SD-R-3.5) and General Commercial (CG) zoning districts, resulting in ± 57 acres zoned SD-R-3.5 and ± 31 acres zoned CG. For APNs 020-120-11 and -17S, the proposed SD-R-3.5 and CG zoning would be consistent with the 2040 Kerman General Plan land use designations for these parcels. The proposed SD-R-3.5 and CG zoning for APNs 025-130-48, -47, and 60S would also be consistent with the General Plan land use designations, as amended by GPA 2025-

01. The Proposed Zoning Map is provided in Attachment ‘H’.

The proposed SD-R-3.5 zoning on APNs 025-130-48, -47, and 60S aligns with the amended MDR designation, facilitating the planned “Harvest Estates” residential subdivision (Vesting TSM 2025-01) of 183 single-family lots at 5.85 dwelling units per acre (within the MDR range of 5-12 units/acre and SD-R-3.5 maximum of 12 units/acre), while the CG zoning on the northern 21-acre portion and remaining areas implements the amended GC designation for future retail, office, and service commercial development. This zoning configuration enhances walkability, connectivity, and open space in residential areas while positioning commercial uses for visibility and access. All future developments are subject to a Development Plan Permit or Site Plan Review, KMC Section 17.18.030 (SD standards), and KMC Section 17.12-2 (commercial standards) to ensure compliance with density, FAR (maximum 1.0 for CG), landscaping, parking, and site design requirements.

The SD-R-3.5 combining zone advances General Plan implementation for MDR lands by requiring comprehensive residential designs that address housing affordability, urbanization of farmland, air quality, and traffic through higher densities, mixed housing types, and superior aesthetics compared to conventional subdivision patterns, with lot sizes for the proposed 183-lot Vesting Tentative Subdivision Map (Vesting TSM) 2025-01 ranging from 3,628 to 9,146 square feet to meet average density goals. The CG zone district accommodates shopping centers, restaurants, medical offices, and personal services at up to 1.0 FAR while meeting the minimum 6,000-square-foot parcel size for new lots, including the proposed 21-acre commercial remainder parcel with 1.27 acres for a temporary ponding basin as shown in Attachment ‘I’. This pre-zone/rezone facilitates phased subdivision under Vesting TSM 2025-01 (including 1.22 acres of parkland and paseos), ensures lot averaging conforms to Zoning standards, and integrates with annexation and General Plan processes to support the City’s Regional Housing Needs Allocation on Sphere of Influence lands.

Vesting Tentative Subdivision Map 2025-01
Vesting Tentative Subdivision Map 2025-01 (Tentative Tract Map No. 6509) would subdivide approximately 54.2 acres of the Project area (APNs 025-130-48, 025-130-47, and 025-130-60S) into 183 single-family residential lots (“Harvest Estates”) ranging from 3,628 to 9,797 square feet and one remainder parcel designated for future commercial development, achieving a residential density of 5.85 dwelling units per acre across the 31.28-acre MDR-designated portion consistent with the SD-R-3.5 zoning and MDR land use standards (5-12 units/acre). The subdivision incorporates approximately 1.22 acres of dedicated parkland and paseos to enhance walkability, connectivity, and open space within the "Harvest Estates" neighborhood as required by the Smart Development (SD) combining zone standards in KMC Section 17.18.030, with lot averaging designed to meet Zoning Ordinance development criteria. The proposed Vesting TSM, provided as Attachment ‘I’, facilitates 33 Section 6, Item A.
a phased residential buildout on land prezoned SD-R-3.5 under REZ 2025-01, with building permits conditioned on prior approval of a Development Plan Permit to ensure compliance with design, landscaping, and infrastructure standards.

The approximately 21-acre commercial remainder parcel, aligned with the GC/CG zoning and land use designation, reserves land for future retail, office, and service commercial uses at up to 1.0 FAR while accommodating a 1.27-acre temporary retention basin to manage stormwater runoff from the residential subdivision and eventual commercial development through evaporation and percolation, as detailed in Attachment ‘I’. This configuration supports the City's growth objectives by providing housing to meet RHNA obligations alongside complementary commercial opportunities.

Annexation 2025-01
Annexation 2025-01 would annex the ± 88.93-acre Project area (APNs 025-130-48, 025-130-47, 025- 130-60S, 020-120-11, and 020-120-17S) and adjacent right-of-way from the County of Fresno into the Kerman City Limits and detach the annexation area from the Kings River Conservation District.

Annexation 2025-01 requires pre-zoning to City zoning districts consistent with these General Plan land use designations. The Annexation Boundary is provided in Attachment ‘J’.

The proposed annexation satisfies all City/County Memorandum of Understanding (MOU) and LAFCO requirements. Located entirely within the adopted Sphere of Influence (SOI), the Project implements General Plan Policy LU-3.2 (Urban Form) by providing 183 single-family lots (5.85 du/ac) toward RHNA obligations, 1.22 acres parkland/paseos, infrastructure upgrades, and future commercial uses while connecting to City services without growth obstacles. The annexation is consistent with General Plan Policies LU-1.4, 1.6, 2.3, 3.2-3.4, 4.1, 4.4-4.5, 5.5, with Mitigated Negative Declaration (ENV 2025-02) confirming all impacts less than significant with the Mitigation Monitoring and Reporting Program, including agricultural buffers. VTSM 2025-01 covers 54.2 acres, with 31.28 acres proposed for residential development (35% [31.28/88.93 acre annexation area] > 25% threshold), advances 6th Cycle RHNA on SOI lands, and creates no islands/peninsulas per LAFCO Policy 102-01.

There are two current Williamson Act contracts, Agricultural Preserve (AP) No. 2755 and AP No. 6920, pertaining to APNs 025-130-48 and 025-130-47, with valid protests pursuant to Government Code Section 51243.5 (AP No. 2755 protest adopted February 16, 1971; AP No. 6920 protest adopted January 6, 1983), and as a result, upon annexation into Kerman City Limits, both contracts would automatically terminate without cancellation fees.

In accordance with the MOU between the City/County, the City is required to issue a notice of intent to annex and request a finding of consistency with the MOU at least 30 days prior to filing the annexation application with the Fresno County Local Agency Formation Commission (LAFCO). Upon approval by Kerman City Council, the proposed annexation will be processed by Fresno County LAFCO consistent with its adopted policies promoting logical boundaries, efficient service delivery, and orderly, phased annexation within adopted spheres of influence.

Land Use Plans and Policies
The 2040 General Plan includes policy recommendations related to the various physical development aspects of the community. The policies are supported by a set of goals and objectives. 34 Section 6, Item A.

The City Council shall refer to the General Plan’s policies, goals, and objectives when deciding on this request. Through the Project and development review process and in collaboration with other City departments and outside agencies, the Project has been designed to comply with the City’s General Plan goals, policies, and objectives. As proposed, the Project will be consistent with the Kerman 2040 General Plan goals and objectives related to land use and the urban form. Below are excerpts from the General Plan that are relevant to this Project, with discussion of the Project’s consistency.

General Plan Policy LU-1.4. Limit Residential Development Along Highways: The City shall limit residential development from fronting State Highway 145 and State Highway 180 to ensure public safety. Residential development along these facilities shall be designed and buffered to reduce noise and air pollutant impacts to the maximum extent reasonably feasible and consistent with CEQA review.

The Project proposes a General Plan Amendment to amend the planned land use designations for APN 025-130-48, 025-130-47, and 025-130-60S. The MDR planned portion of the site would be adjusted to have frontage along North Madera Avenue, replacing the current GC portions, while APN 025-130-60S would retain and expand its GC designation. No residential lots will face or have direct access to Madera Avenue. As a condition of approval, a 30-foot landscape and sidewalk buffer will be required between the edge of the roadway and the masonry sound wall at the rear of the residential lots. Future residential development of the portions of the site planned for residential use would be subject to compliance with the applicable development standards for the underlying zone district, including setbacks, landscaping, fences, walls, and hedges, etc. which help to ensure adequate buffers between uses to ensure public safety.

In addition, environmental impacts of the Project, including the General Plan Amendment and Rezone, have been analyzed in accordance with CEQA. An Initial Study (IS) and Mitigated Negative Declaration (MND) have been prepared to evaluate the potential impacts associated with the Project. Based upon review of the IS/MND, noise-related impacts were found to be less than significant with mitigation for transportation noise sources. Mitigation Measure (MM) NOI-1 requires a continuous, solid sound wall with a minimum height of six (6) feet above the finished Project site grade to be constructed along the Project boundary adjacent to North Madera Avenue.

This ensures that exterior noise levels at future residential lots do not exceed City standards. Future residential and commercial development would be subject to compliance with these mitigation measures.

Overall, through compliance with the applicable development standards and with the noise-related mitigation measures, the Project as proposed would be designed and buffered to reduce impacts to the maximum extent reasonably feasible and consistent with CEQA review and therefore would be consistent with General Plan Policy LU-1.4.

General Plan Policy LU-1.6. Agricultural Buffers: The City shall require non-agricultural land uses adjacent to active agricultural uses to incorporate adequate buffers (e.g., setbacks, fences) to protect public health and limit conflicts with adjoining agricultural operations and pesticide applications.

The Project site is adjoined by agricultural land to the east. Potential conflicts between urban and agricultural uses were analyzed in the Initial Study prepared for the Project in accordance with CEQA.

In order to reduce potential conflicts between uses, the Mitigated Negative Declaration and 35 Section 6, Item A.

Mitigation Monitoring and Reporting Program requires implementation of the following measures:
1) potential residents shall be notified about possible exposure to agricultural chemicals at the time of purchase/lease of property within the development, 2) a right-to-farm covenant shall be recorded on each residential tract map or be made a condition of each tract map to protect continued agricultural practices in the area, and 3) potential residents shall be informed of the right-to-farm covenant at the time of purchase/lease of property within the development. Future residential development would also be subject to compliance with the applicable development standards for the underlying zone district, including setbacks, landscaping, fences, walls, and hedges, etc. which help to ensure adequate buffers to protect public health and limit conflicts. Overall, through compliance with the mitigation measures and applicable development standards, the Project as proposed would incorporate adequate buffers to protect public health and limit conflicts with adjoining agricultural operations and pesticide applications, and therefore would be consistent with General Plan Policy LU-1.6.

General Plan Policy LU-2.3 Neighborhood Atmosphere: The City shall continue to actively preserve Kerman’s single-family residential neighborhood atmosphere.

The Project would facilitate 183 single-family residential units which would help meet the city’s residential housing needs such as affordable housing or a desire for a wider and more diverse range of housing. The Project site is currently planned for residential and commercial uses, and the proposed development would integrate into the existing neighborhood fabric without introducing land uses that would not disrupt the established single-family residential neighborhood atmosphere.

In addition, the Project site is contiguous to existing urban development. Accordingly, the project would be consistent with General Plan Policy LU-2.3.

General Plan Policy LU-3.2 Urban Form: To maintain the City’s compact form, the City shall maintain growth management controls by managing changes to the City’s Sphere of Influence and incorporated City limits. Future changes to the City’s Sphere of Influence will be managed by two growth lines, shown on [General Plan] Figure 3‐2.)
• The City may consider requests to amend the current Sphere of Influence and City limits into Area 1 (shown on Figure 3‐2) based on the ability of the City to provide services to the area. • The City may consider requests to amend the current Sphere of Influence and City limits into Area 2 (shown on Figure 3‐2) if Area 1 has reached the 80 percent infill criteria (for residentially designated lands). The City Council may, at that time, consider allowing development beyond the Area 1 Growth Boundary Line.
• For any change in Sphere of Influence or City limits, the following considerations will be used:
o 80 percent of Area 1’s residentially designated land has been developed or has approved development plans.
o Residential housing needs such as affordable housing or a desire for a wider and more diverse range of housing.
o Community needs such as open space, recreational facilities, parks, schools, etc. o Obstacles to growth such as cost of infrastructure, Williamson Act properties, etc. o Economic development needs.

The Project site is within the City’s Sphere of Influence. The Project requires annexation and therefore would result in a change in City limits. The Project as proposed would meet the 36 Section 6, Item A.
considerations of General Plan Policy LU-3.2 Urban Form. Specifically, the Project would facilitate future residential units which would help meet the city’s residential housing needs such as affordable housing or a desire for a wider and more diverse range of housing. The Project would not result in obstacles to growth because future development would be able to connect to City services.

The Project would result in infrastructure improvements, including roadway and circulation improvements. Lastly, the Project would facilitate future commercial uses which would serve the City’s economic development needs. Based on these considerations, the Project as proposed maintains growth management controls and is consistent with General Plan Policy LU-3.2.

General Plan Policy LU-3.3 Prevent Sprawl Development: The City shall direct new development to areas that are contiguous to existing or approved development and prevent sprawl development.

The Project site is contiguous to existing and approved development within City Limits. Thus, the Project does not encourage sprawl and is therefore consistent with General Plan Policy LU-3-3.

General Plan Policy LU-3.4 Leapfrog Development: The City shall require the Planning Commission and City Council to make a finding before approving new subdivisions that are more than 1/8 mile from existing urban development.

The Project site is contiguous to existing urban development and thus would not constitute leapfrog development and is therefore consistent with General Plan Policy LU-3-4.

General Plan Policy LU-4.1 Agricultural Land Preservation: The City shall preserve and protect agricultural lands by directing development to areas within City limits that are designated for urban‐ level development, and away from agriculturally designated land to preserve open space and agricultural areas.

The Project is consistent with Policy LU-4.1 in that it directs development to an area planned for urban-level development and contiguous to existing urban uses. While the Project site is currently designated for agricultural use under County jurisdiction, the City’s General Plan designates the site for residential and commercial land uses. Upon annexation and pre-zoning, the site would be zoned consistent with the City’s planned land use designations. Development of the site would therefore not result in the conversion of agriculturally designated land within the City’s General Plan framework nor encroach into surrounding agricultural or open space areas. Therefore, the Project as proposed is consistent with General Plan Policy LU-4.1.

General Plan Policy LU-4.4 Opposition to Projects within SOI: The City shall oppose any development within its Sphere of Influence that creates parcels of less than 20 acres.

The Project site is within the City’s Sphere of Influence. Upon annexation, the Project site would be brought under City jurisdiction and would therefore not conflict with General Plan Policy LU-4.4, which is intended to discourage premature or inappropriate parcelization of land (parcels less than 20 acres) within the Sphere of Influence. The Project encompasses more than 20 acres and would be evaluated in accordance with City zoning and subdivision standards. Accordingly, the Project is consistent with General Plan Policy LU-4.4.
37 Section 6, Item A.

General Plan Policy LU-4.5. Right-to-Farm Disclosure: The City shall require that property owners and applicants within 1,000 feet of agricultural land or agricultural operations sign and record a deed of notification to document that they were informed of the potential agricultural operations and agricultural conditions in the area. The Project is within 1,000 feet of agricultural land and operations. A right-to-farm disclosure is required for the project through the Conditions of Approval.

All future property owners and applicants are required to sign and record a deed of and notification to document that they were informed of the potential agricultural operations and agricultural conditions in the area. In addition, the Initial Study requires implementation of the following measures: 1) potential residents shall be notified about possible exposure to agricultural chemicals at the time of purchase/lease of property within the development, 2) a right-to-farm covenant shall be recorded on each residential tract map or be made a condition of each tract map to protect continued agricultural practices in the area, and 3) potential residents shall be informed of the rightto-farm covenant at the time of purchase/lease of property within the development. Therefore, the project is consistent with General Plan Policy LU-4.5.

General Plan Policy LU-5.5 Placement of New Residential Uses: The City shall consider and mitigate potential adverse health and safety impacts associated with the establishment of new residential and other sensitive land uses near industrial land uses, agricultural operations using pesticides applied by spray techniques, the wastewater treatment plant, landfills and waste treatment facilities, and other existing land uses that would be incompatible with adjacent residential uses.

The property to the west of the site is planned for residential and commercial use and is also occupied by Harvest Elementary, the property to the east is planned for residential use, and the property to the south is planned for commercial uses within the City of Kerman Sphere of Influence.

The property to the north is within the County of Fresno, currently used for agricultural purposes, and has a designation of Urban Reserve in the City’s 2040 General Plan. There are already residential uses within close proximity to the site.

During the development review process, the City has evaluated the potential health and safety considerations associated with introducing new residential uses adjacent to agricultural operations or other potentially incompatible uses, consistent with LU-5.5. The Project has prepared an IS/MND and Mitigation Monitoring and Reporting Program, which identifies and mitigates potential impacts, including those associated with air quality, noise, and agricultural operations, to the maximum extent feasible. With these measures in place and given the established pattern of nearby residential development, the Project would be consistent with General Plan Policy LU-5.5.

Access, Circulation, and Off-Site Improvements (Vesting TSM 2025-01) Access to the residential subdivision would be provided from Madera Avenue (State Route 145) through one (1) main entrance, West Isabella Avenue. Two streets are stubbed to the east for extension with future development and ultimate connection to North Vineland Avenue. The development’s internal roadway network would connect to West Isabella Avenue; all roadways would be built to City Standards and include curb, gutter, and sidewalk. This internal street network would provide primary access for the residential portion of the site. The proposed temporary ponding basin, park, and paseos would also be accessible via this network. 38 Section 6, Item A.

A Transportation Impact Study (TIS) was prepared for the Project by VRPA Technologies, Inc. and is available on the City of Kerman’s Community Development Department’s webpage under Planning Projects (https://cityofkerman.net/175/Planning-Projects). The purpose of the TIS was to analyze traffic conditions related to Harvest Estates and then recommend potential improvements to alleviate identified traffic impacts. The TIS was reviewed by the City, County of Fresno, and Caltrans.

As a result of Caltrans’ review of the TIS, Caltrans is requiring an Intersection Safety and Operational Assessment Process (ISOAP) for the Isabella Avenue/SR-145 (Madera Avenue) intersection. As a condition of approval, the developer will be required to improve the subject intersection to comply with the intersection control strategy determined by the ISOAP.

Public Utilities and Service Systems (Vesting TSM 2025-01) The residential subdivision will tie into existing municipal water, sewer, and storm drain systems through the extension of existing systems. Sanitary sewer service would be provided via connection to the existing sewer trunk main at the Isabella Avenue and Madera Avenue intersection, and domestic water service would be supplied through connection points in the same intersection and at the southern boundary of the site. A temporary ponding basin is proposed on-site at the southeastern corner of the remainder commercial parcel. The basin is sized to accommodate stormwater runoff associated with the future development of the residential subdivision and commercial development. The ponding basin will be designed with all applicable codes and standards to manage stormwater runoff effectively, as ensured through City reviewed and approved grading and drainage plans. Associated electric, natural gas, telecommunications, and solid waste services are provided by private companies and will serve the Project site as needed.

Other Department Comments
The Project proposal wasreviewed by various other City Departments and affected outside agencies.

The responses and recommendations have been incorporated into the recommended conditions of approval included in this report. Comments are standard and can be found in Attachment ‘E’.

Conclusion
The proposed Project is consistent with the Kerman General Plan and Zoning Ordinance as well as the Subdivision Map Act. Additionally, as conditioned, there is no evidence that suggests approval of the proposed Project will be detrimental to the public, health, safety, and welfare of those residing or working nearby. To ensure the continued compatibility of the site with surrounding uses, conditions of approval have been incorporated.

ENVIRONMENTAL REVIEW:

Pursuant to the authority and criteria contained in the California Environmental Quality Act (CEQA) of 1970, the City, as the Lead Agency, has analyzed the proposed project and has prepared an Initial Study to evaluate the environmental effects of the project. The key components of the requested actions are as follows.

Initial Study and Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program An Initial Study (IS) is a preliminary analysis prepared under CEQA to determine whether a project has a significant impact on the environment. If the IS identifies potentially significant impacts but finds that these impacts can be clearly mitigated to a less-than-significant level, a Mitigated Negative 39 Section 6, Item A.

Declaration (MND) is prepared. The Mitigation Monitoring and Reporting Program (MMRP) is a document that contains a table with the required mitigation measures, the responsible party or parties for implementing the measure, and the timing of implementation.

An Initial Study was prepared to evaluate the potential impacts associated with the Project. Based upon review of the Initial Study, the proposed Project will not have a significant effect on the environment because the mitigation measures outlined in the proposed Mitigation Monitoring and Reporting Program have been included in the Project (Attachment ‘G’). The Public Review Draft IS/MND was circulated for a 30-day review period from December 31, 2025, to January 30, 2026.

The Draft IS/MND was circulated through the State Clearinghouse (SCH No. 2025121223), posted on the City’s website, and available at City Hall. As of the date of this staff report, no comments have been received.

Tribal Consultation
The City of Kerman conducted formal tribal consultation for the proposed Project pursuant to AB 52 and SB 18 on June 13, 2025, utilizing the consultation list of tribes received from the Native American Heritage Commission. The following tribes included the Amah Mutsun Tribal Band, Northern Valley Yokut/Ohlone Tribe, Tule River Indian Tribe, and Wuksachi Indian Tribe/Eshom Valley Band. These tribes were included in the formal consultation notices. The consultation period for AB 52 ended on July 14, 2025, and consultation period for SB 18 ended on September 12, 2025. No responses were received within the 30- or 90-day consultation period. The NAHC also conducted a Sacred Lands File (SFL) search which was negative.

PUBLIC HEARING NOTICE:

In accordance with KMC Chapter 17.116, Public Notices and Hearings, public hearing notices were mailed to property owners and residents within 500 feet of the site and published in the Fresno Bee at least 10 days before the hearing.

PLANNING COMMISSION REVIEW:

The Planning Commission held a public hearing to consider the project at a regular meeting on March 9, 2026. Public comments focused primarily on traffic conditions along Madera Avenue, particularly potential impacts to Harvest Elementary School, and inquired whether intersection improvements would be implemented and funded by the project applicant. In response, the applicant and staff indicated that an ISOAP study will be prepared to evaluate potential impacts, and that any required improvements would be the responsibility of the project applicant.

On a 5-0 vote, the Planning Commission adopted Resolution No. 2026-03 (GPA 2025-01 and ENV 2025-02), Resolution No. 2026-04 (REZ 2025-01), Resolution No. 2026-05 (Vesting TSM 2025-01), and Resolution No. 2026-06 (ANX 2025-01), recommending that the City Council approve GPA 2025-01, REZ 2025-01, and Vesting TSM 2025-01, initiate ANX 2025-01, and adopt the ISMND. The Planning Commission Resolutions are provided in Attachment ‘F’.
40 Section 6, Item A.

CITY COUNCIL FINDINGS:

General Plan Amendment 2025-01
To recommend approval of the proposed General Plan Amendment 2025-01, the City Council must make the following findings pursuant to KMC Chapter 17.112 Amendments and Rezones. Findings regarding each of these items are set forth in the proposed Resolution (Attachment ‘G’).

1. The change is consistent with the General Plan goals and policies.

2. The change is consistent with the purpose of the Zoning Ordinance to preserve and promote the public health, safety and welfare of the city and to facilitate growth and expansion of the city in a precise and orderly manner.

3. There will not be significant effects upon the quality of the environment and natural resources.

Rezone 2025-01
To recommend approval of the proposed Rezone 2025-01, the City Council must make the following findings pursuant to KMC 17.112. Amendments and Rezones. Findings regarding each of these items are set forth in the proposed Resolution (Attachment ‘H’).

1. The change is consistent with the General Plan.

2. The change is consistent with the purpose of the Zoning Ordinance to promote the health, safety, and welfare of the community.

3. There will not be significant effects upon the quality of the environment and natural resources.

Vesting Tentative Subdivision Map 2025-01
To recommend approval of the proposed Vesting Tentative Subdivision Map 2025-01, the City Council must determine that the proposed map is consistent with the General Plan, Zoning Ordinance, and the Subdivision Map Act subject to the following consistency findings. Findings regarding each of these items are set forth in the proposed Resolution (Attachment ‘I’).

1. The proposed map is consistent with the applicable General Plan, Subdivision Ordinance, Specific Plan, and the Subdivision Map Act.

2. The design or improvement of the proposed land division is consistent with applicable general plan and specific plans.

3. That the site is physically suitable for the proposed type of development.

4. That the site is physically suitable for the proposed density of development. 41 Section 6, Item A.

5. The design of the subdivision and the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish, wildlife, or their habitat.

6. The design of the land division and type of improvements being required are not likely to cause serious public health problems.

7. The design of the parcels or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision.

8. That the proposed design provides, to the extent feasible, for future passive or natural heating or cooling opportunities in the subdivision pursuant to Government Code Section 66473.1.

Annexation 2025-01
To recommend approval of the proposed Annexation 2025-01, the City Council must make the following findings pursuant to the City/County Second Amended and Restated MOU standards for annexation. Findings regarding each of these items are set forth in the proposed Resolution (Attachment ‘J’).

1. The proposed annexation is within the City’s adopted Sphere of Influence.

2. The proposal must be consistent with city general and specific plans, including adopted goals and policies.

3. Pursuant to CEQA, the proposal must mitigate any significant adverse effect on continuing agricultural operations on adjacent properties, to the extent reasonable and consistent with the applicable general and specific plan.

4. At least 25% of the area proposed for annexation has an approved Vesting Tentative Subdivision Map(s) (single-family residential) and an approved site plan (for uses besides single-family).

5. The annexation is to fulfill the city’s Regional Housing Needs Allocation (RHNA) obligation which otherwise cannot be accommodated on lands currently within the city’s incorporated boundary.

6. The proposal would not create islands. Boundaries must ultimately minimize creation of peninsulas and corridors, or other distortion of boundaries.

ATTACHMENTS:

A. Attachment A – Vicinity Map
B. Attachment B – Aerial Map
C. Attachment C – General Plan Land Use Map (Existing)
42 Section 6, Item A.

D. Attachment D – Zoning Map (Existing)
E. Attachment E – Other Agency/Department Comments
F. Attachment F – Planning Commission Resolutions
G. Attachment G – GPA 2025-01 and ENV 2025-02 Resolution

1. Exhibit ‘1’: General Plan Land Use Map Amendment

2. Exhibit ‘2’: Initial Study and Mitigated Negative Declaration

3. Exhibit ‘3’: Mitigation Monitoring and Reporting Program H. Attachment H – Rezone 2025-01 Ordinance

1. Exhibit ‘A’: Rezone 2025-01 Zoning Map Amendment
I. Attachment I – Vesting TSM 2025-01 Resolution

1. Exhibit ‘1’: Vesting Tentative Subdivision Map 2025-01

2. Exhibit ‘2’: Vesting Tentative Subdivision Map No. 2025-01 Conditions of Approval
J. Attachment J – ANX 2025-01 Resolution

1. Exhibit ‘1’: Annexation Boundary for ANX 2025-01
43 Section 6, Item A.

Atachment ‘A’
Vicinity Map
44 Section 6, Item A.

Atachment ‘B’
Aerial Map
45 Section 6, Item A.

Atachment ‘C’
General Plan Land Use Map (Existing)
46 Section 6, Item A.

Atachment ‘D’
Zoning Map (Existing)
47 Section 6, Item A.

Atachment ‘E’
Other Agency/Department Comments
48 Section 6, Item A.
“Provide a safe and reliable transportation network that serves all people and respects the environment.” DISTRICT 6 OFFICE
1352 WEST OLIVE AVENUE |P.O. BOX 12616 |FRESNO, CA 93778-2616 (559) 981-7284| FAX (559) 488-4195 | TTY 711
www.dot.ca.gov
February 17, 2026
FRE-145-35.54
Harvest Estates Residential Subdivision
Revised Traffic Impact Study (TIS)
GTS #: https://ld-igr-gts.dot.ca.gov/district/6/report/36278

SENT VIA EMAIL
Mr. Manuel Campos, Assistant Planner
City of Kerman
850 S. Madera Ave.

Kerman, CA 93630
[email protected]
Dear Mr. Campos:

Caltrans has completed the review of the revised Traffic Impact Study (TIS) for Harvest Estates Residential Subdivision, proposing the construction of a 174-unit single-family residential development.

The project site is located in northeast quadrant of State Route (SR) 145 (Madera Avenue) and State Route (SR)180 (Whitesbridge Avenue).

The mission of Caltrans is to provide a safe and reliable transportation network that serves all people and respects the environment. The Local Development Review (LDR) process reviews land use projects and plans through the lenses of our mission and state planning priorities of infill, conservation, and travel‐efficient development. To ensure a safe and efficient transportation system, we encourage early consultation and coordination with local jurisdictions and project proponents on all development projects that utilize the multimodal transportation network.

Caltrans provides the following comments consistent with the State’s smart mobility goals that support a vibrant economy and sustainable communities:

1. The updated TIS shows one access for this residential development via SR 145 at Isabella Avenue) Harvest Elementary Road / SR 145 (Madera Avenue).

2. The movement of school children and pedestrians across SR 145 to and from this development and Harvest Elementary School (plus other Kerman Unified School District facilities) was not sufficiently considered in this study. No conflicting pedestrian 49 Section 6, Item A.

Mr. Manuel Campos– Harvest Estates Residential Subdivision Revised TIS February 17, 2026

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“Provide a safe and reliable transportation network that serves all people and respects the environment.” movements or pedestrian-bicycle adjustments were applied in the analysis.

The new traffic flows would introduce conflicts between vehicles and pedestrians.

Section 4.0, Roadway Improvements, does not include an assessment of appropriate safety enhancements to mitigate the conflicts.

3. Given the high speeds along SR 145 at the Boulevard B-Harvest Elementary School intersection, the future presence of school children and other pedestrians, and the satisfaction of the peak hour signal warrant, Caltrans agrees that improved intersection traffic control is needed.

The Intersection Safety and Operational Assessment Process (ISOAP) is required to evaluate proposed traffic control and design geometrics for intersections and other access improvements proposed on the State Highway System. ISOAP refers to a datadriven, performance-based framework incorporating the Safe System Approach to screen intersection strategies and identify optimal solutions for new or improved intersections that considers all users.

4. Section 4.0, Roadway Improvements, recommends the addition of right turn lanes at SR 180 / Del Norte Avenue and SR 180 / SR 145 intersections. Caltrans Highway Design Manual states, “Locations with right-turn-only lanes should provide a minimum 4-foot width for bicycle use between the right-turn and through lane when bikes are permitted, except where posted speed is greater than 40 miles per hour, the minimum width should be 6 feet.”

5. Frontage improvements (lane configuration (including bike lane), shoulder, curb, gutter, sidewalk (six-foot minimum), roadway lighting, etc.) along this portion of SR 145 should match the southbound roadway proposed configuration, to be completed by Caltrans oversight project 06-1E060 (Contact Caltrans Project Manager, Ilda Thanes, 559.944.7894).

6. Alternative transportation policies should be applied to the development. An assessment of multi-modal facilities should be conducted to develop an integrated multi-modal transportation system to serve and help alleviate traffic congestion caused by the project and related development in this area of the city. The assessment should include the following:
a. Pedestrian walkways should link this Project to transit facilities, bicycle pathways and other walkways in the surrounding area.
b. Coordinating connections to local and regional bicycle pathways should be done to further encourage the use of bicycles for commuter and recreational purposes.
c. Transit service and bus stop accommodations should be extended to within ¼- 50 Section 6, Item A.

Mr. Manuel Campos– Harvest Estates Residential Subdivision Revised TIS February 17, 2026

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“Provide a safe and reliable transportation network that serves all people and respects the environment.” mile of the Project site.

7. Caltrans recommends the Project implement “smart growth” principles regarding parking solutions, providing alternative transportation choices to residents and employees. Alternative transportation choices may include but are not limited to parking for carpools/vanpools, car-share and/or ride-share programs.

8. Based on Caltrans Vehicle Miles Traveled (VMT)-Focused Transportation Impact Study Guide, dated May 20, 2020, and effective as of July 1, 2020, Caltrans seeks to reduce single occupancy vehicle trips, provide a safe transportation system, reduce per capita VMT, increase accessibility to destinations via cycling, walking, carpooling, transit and reduce greenhouse gas (GHG) emissions. Caltrans recommends that the project proponent continue to work with the city to further implement improvements to reduce VMT and offer a variety of transportation modes for its employees.

If you have any other questions, please call or email: Keyomi Jones, Associate Transportation Planner at (559) 981-7284 or [email protected].

Sincerely,
Mr. Dave Padilla, Branch Chief,
Local Development Review Branch
51 Section 6, Item A.
52 Section 6, Item A.
53 Section 6, Item A.
54 Section 6, Item A.
55 Section 6, Item A.
56 Section 6, Item A.
57 Section 6, Item A.

DEVELOPMENT SERVICES AND CAPITAL PROJECTS DIVISION
2220 Tulare Street, Sixth Floor / Fresno, California 93721 / Phone (559) 600-4497 / 600-4022 / 600-4540 / FAX 600-4200 The County of Fresno is an Equal Employment Opportunity Employer

DEPARTMENT OF PUBLIC WORKS AND PLANNING
STEVEN E. WHITE, DIRECTOR
September 16, 2025
SUBJECT: Harvest Estates - City of Kerman
Dear Mr. Campos:

The County of Fresno appreciates the opportunity to review and comment on the subject project being reviewed by the City of Kerman.

The documents received for this review were circulated to our various Fresno County Public Works and Planning divisions. See comments below.

Fresno County, Public Health, Environmental Health:
• As a measure to protect ground water, all water wells and/or septic systems that exist or have been abandoned within the project area should be properly destroyed by an appropriately licensed contractor.
• Should any underground storage tank(s) be found during the project, the applicant shall apply for and secure an Underground Storage Tank Removal Permit from the Fresno County Department of Public Health, Environmental Health Division. Contact the Fresno County Hazmat Compliance Program at (559) 600-3271 for more information. • Should the structure(s) have an active rodent or insect infestation, the infestation should be abated prior to demolition of the structure(s) in order to prevent the spread of vectors to adjacent properties.
• In the process of demolishing the existing structure(s), the contractor may encounter asbestos containing construction materials and materials coated with lead-based paints. If asbestos containing materials are encountered, contact the San Joaquin Valley Air Pollution Control District at (559) 230-6000 for more information. • If the structure(s) were constructed prior to 1979 or if lead-based paint is suspected to have been used in the structure, then prior to remodel work the contractor should contact the following agencies for current regulations and requirements:
 California Department of Public Health, Childhood Lead Poisoning Prevention Branch, at (510) 620-5600.
 United States Environmental Protection Agency, Region 9, at (415) 947-8000. 58 Section 6, Item A.

City of Kerman
September 15, 2025

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2  State of California, Industrial Relations Department, Division of Occupational Safety and Health, Consultation Service (CAL-OSHA) at (559) 454-5302.

Fresno County Road Maintenance and Operations Division:
• There is an existing 40’ of road right-of-way on Nielson Avenue Alignment fronting the subject parcels. A vacation of the existing 40’ of right-of-way is encouraged by RMO. •
• County of Fresno Road Maintenance and Operations Division requests to be included in any traffic impact studies performed as part of this project.

If you have any questions regarding the information described in this letter, please contact me at [email protected] or (559) 600-4245.

Sincerely,
Arianna Brown
Arianna Brown, Planner
Development Services and Capital Projects Division
AB
"G:\4360Devs&Pln\PROJSEC\PROJDOCS\Environmental\OAR\City of Kerman\Harvest Estates\Harvest Estates - City of KermanResponse Letter.docx" 59 Section 6, Item A.

Fresno Local Agency Formation Commission
LAFCo Office: 1401 Fulton Street, Suite 800, Fresno, CA 93721 Phone (559) 600-0604
September 5, 2025
Manuel Campos
Assistant Planner
City of Kerman
Dear Mr. Manuel Campos:

Subject: Comments Regarding Concurrent Applications: Annexation (ANX 2025-01), General Plan Amendment (GPA 2025-01), Pre-zone (REZ 2025-01), Tentative Subdivision Map (TSM 2025-01), and CEQA (ENV 2025-02).

Thank you for the opportunity to comment on this project. From the material provided to this office, my understanding of the project description is as follows:
• Annexation (ANX 2025-01) is a request to approve the annexation of approximately 54.2 acres. This annexation request is consistent with the 2040 General Plan goals and policies (LU-3) and the City/County MOU agreed to and entered into in 2021; • General Plan Amendment (GPA 2025-01) pertains to changing the land use designation for APNs: 025-130-48, 025-130-47, and 025-130-60S. The General Plan Amendment will be processed concurrently with the Pre-zone and Annexation process; • Pre-zone (REZ 2023-03) pertains to the pre-zoning of the proposed project. Currently the project has County zonings of Limited Agricultural (AL-20) and Exclusive Agricultural (AE20). The project will amend the County zoning to the City of Kerman zoning districts of Smart Development Residential (SDR-3.5), Rural Residential (RR), and Mixed Use (MU); • CEQA (ENV 2023-04) pertains to an initial study and a technical study/analysis being prepared for the project consistent with CEQA guidelines. There are four technical studies to tentatively be conducted: Air Quality/GHG analysis, Biological Recourse Assessment, Environmental Noise Assessment, and Traffic Impact/VMT Analysis; and • Tentative Subdivision Map (TSM 2025-01) pertains to the subdivision of land and proposed network of local streets and sidewalks exhibited in Attachment A. The proposed project will include a tentative subdivision map encompassing 172 single-family lots and

0.55 acres designated for open space/park use. The residential portion of the Project would have an internal network of local streets and sidewalks with two (2) points of ingress/egress to North Madera Ave (CA-145). Future commercial acreage (approx. 21 acres) to the North of the single-family lots will be developed under separate approval.

The Fresno Local Agency Formation Commission (LAFCo) regulates, through approval or denial, the boundary changes proposed by local agencies or individuals. LAFCo’s objectives are to:
• Encourage orderly formation and development of agencies; • Encourage consistency with spheres of influence and recommended reorganization of agencies;
• Encourage orderly urban development and preservation of open space patterns; • Encourage conservation of prime agricultural lands and open space areas; and • Identify and address disadvantaged unincorporated communities. 60 Section 6, Item A.

Manuel Campos
City of Kerman
ANX 2023-03

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LAFCo Office: 1401 Fulton Street, Suite 800, Fresno, CA 93721 Phone (559) 600-0604
LAFCo should be identified in the city’s environmental document as a Responsible Agency under CEQA whose role is to consider reorganizations and spheres of influence. Commission action on the reorganization request should be noted in the environmental document. As a Responsible Agency, the Commission is required to review and consider the city’s environmental documents prior to taking its action. A Responsible Agency complies with CEQA by considering the environmental analysis prepared by the Lead Agency and by reaching its own conclusions on whether to and how to approve the project. The Commission may then make a finding that it independently reviewed and considered the information in the environmental document and that the environmental document is sufficient to support a determination on the proposed reorganization.

Project-Specific Comments
The city will be required to submit the appropriate application materials including fees to LAFCo for reorganization. These materials are enumerated on our website (www.fresnolafco.org) through the “Applications and Documents” tab under “Application Material—Items Necessary for a Complete Application.”
The fee schedule for changes of organization/reorganization (annexation) of 41-80 acres is $12,000.

The city may send notice 56654(c) to the interested and affected agencies if the annexation is 100 percent uninhabited to reduce the project timeline.

If the proposal results in the annexation of land that is subject to a contract executed pursuant to the Williamson Act (Chapter 7, commencing with Section 51200 of Division 1), then the petition and/or resolution for reorganization request shall state whether the city shall succeed to the contract pursuant to Section 51243 or whether the city intends to exercise its option to not succeed to the contract pursuant to Section 51243.5.

Annexation of full rights of way contiguous to parcel boundaries should be presumed in the reorganization’s legal description and map.

LAFCo is available to attend any community outreach meetings should the need arise.

Thank you for the opportunity to provide comments. If you have any questions, please contact me at (559) 600-0604.

Sincerely,
Joel Matias,
LAFCo Analyst I
61 Section 6, Item A.

Pacific Gas and Electric Company
Doug Snyder
Land Management
4101 Wible Road
Bakersfield, Ca. 93313
August 21, 2025
Manual Campos, Assistant Planner
City of Kerman, Community Development
850 South Madera Avenue
Kerman, Ca., 93630
Re: City of Kerman Project Distribution - Harvest Estates City of Kerman, Ca. APN 025-130- 47, 48 & 60, County of Fresno
Dear, Manual,
Thank you for providing PG&E, the opportunity to review the above-mentioned project we received on August 14, 2025. Our review indicates the proposed work and/or improvements do not appear to directly interfere with any of PG&E’s existing facilities or land rights.

Please note, this is our preliminary review and PG&E may provide additional comments in the future as the project progresses or if additional information is provided. If there are subsequent modifications made to the design, we ask that the plans be resubmitted for review to the email address listed below.

If PG&E gas and/or electric service are needed, please submit an application through PG&E’s Your Project Portal: Sign In (yourprojects-pge.com).

As a reminder, before any digging or excavation occurs, please contact Underground Service Alert (USA) by dialing 811 a minimum of two (2) working days prior to commencing any work.

This free and independent service will ensure that all existing underground utilities are identified and marked on-site.

If you have any questions regarding this response, please contact me at 661.742.3890 or [email protected].

Sincerely,
Doug Snyder
Land Management
62 Section 6, Item A.

August 20, 2025
Manuel Campos
City of Kerman
Community Development Department
850 South Madera Avenue
Kerman, CA 93630
Project: Development Application for the Harvest Estates Subdivision – Annexation ANX 2025-01, General Plan Amendment GPA 2025-01, Pre-zone REZ 2025-01, Tentative Subdivision Map TSM 2025-01, and CEQA ENV 2025-02
District CEQA Reference No: 20250946
Dear Mr. Campos:

The San Joaquin Valley Air Pollution Control District (District) has reviewed the Development Application (DA) from the City of Kerman (City) for the Harvest Estates Subdivision project. Per the DA, the project consists of the subdivision of 31 acres to allow for 172 single-family homes and 0.55 acres of open space/park use (Project). The Project is located at 134, 342, and 402 North Madera Avenue in Kerman, CA (APNs:
025-130-48, -47, and -60S).

The District offers the following comments at this time regarding the Project:

Project Related Emissions
At the federal level under the National Ambient Air Quality Standards (NAAQS), the District is designated as extreme nonattainment for the 8-hour ozone standards and serious nonattainment for the particulate matter less than 2.5 microns in size (PM2.5) standards. At the state level under California Ambient Air Quality Standards (CAAQS), the District is designated as nonattainment for the 8-hour ozone, PM10, and PM2.5 standards.

The District’s initial review of the Project concludes that emissions resulting from construction and/or operation of the Project may exceed any of the following significance thresholds as identified in the District’s Guidance for Assessing and Mitigating Air Quality Impacts: https://ww2.valleyair.org/media/g4nl3p0g/gamaqi.pdf.

The District recommends that a more detailed preliminary review of the Project be conducted for the Project’s construction and operational emissions. 63 Section 6, Item A.

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Construction Emissions
The District recommends, to reduce impacts from construction-related diesel exhaust emissions, the Project should utilize the cleanest available off-road construction equipment.

Operational Emissions
Operational (ongoing) air emissions from mobile sources and stationary sources should be analyzed separately. For reference, the District’s significance thresholds are identified in the District’s Guidance for Assessing and Mitigating Air Quality Impacts:
https://ww2.valleyair.org/media/g4nl3p0g/gamaqi.pdf.

Recommended Mitigation Measure: At a minimum, project related impacts on air quality should be reduced to levels below the District’s significance thresholds through incorporation of design elements such as the use of cleaner Heavy Heavy-Duty (HHD) trucks and vehicles, measures that reduce Vehicle Miles Traveled (VMTs), and measures that increase energy efficiency. More information on transportation mitigation measures can be found at:
https://ww2.valleyair.org/media/ob0pweru/clean-air-measures.pdf Recommended Model for Quantifying Air Emissions
Project-related criteria pollutant emissions from construction and operational sources should be identified and quantified. Emissions analysis should be performed using the California Emission Estimator Model (CalEEMod), which uses the most recent CARB-approved version of relevant emissions models and emission factors. CalEEMod is available to the public and can be downloaded from the CalEEMod website at: www.caleemod.com.

Health Risk Screening/Assessment
The City should evaluate the risk associated with the Project for sensitive receptors (residences, businesses, hospitals, day-care facilities, health care facilities, etc.) in the area and mitigate any potentially significant risk to help limit exposure of sensitive receptors to emissions.

To determine potential health impacts on surrounding receptors (residences, businesses, hospitals, day-care facilities, health care facilities, etc.) a Prioritization and/or a Health Risk Assessment (HRA) should be performed for the Project. These health risk determinations should quantify and characterize potential Toxic Air Contaminants (TACs) identified by the Office of Environmental Health Hazard Assessment/California Air Resources Board (OEHHA/CARB) that pose a present or potential hazard to human health.
64 Section 6, Item A.

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Health risk analyses should include all potential air emissions from the project, which include emissions from construction of the project, including multi-year construction, as well as ongoing operational activities of the project. Note, two common sources of TACs can be attributed to diesel exhaust emitted from heavy-duty off-road earth moving equipment during construction, and from ongoing operation of heavy-duty on-road trucks.

Prioritization (Screening Health Risk Assessment):

A “Prioritization” is the recommended method for a conservative screening-level health risk assessment. The Prioritization should be performed using the California Air Pollution Control Officers Association’s (CAPCOA) methodology. Please contact the District for assistance with performing a Prioritization analysis.

The District recommends that a more refined analysis, in the form of an HRA, be performed for any project resulting in a Prioritization score of 10 or greater. This is because the prioritization results are a conservative health risk representation, while the detailed HRA provides a more accurate health risk evaluation.

Health Risk Assessment:

Prior to performing an HRA, it is strongly recommended that land use agencies/ project proponents develop and submit for District review a health risk modeling protocol that outlines the sources and methodologies that will be used to perform the HRA.

A development project would be considered to have a potentially significant health risk if the HRA demonstrates that the health impacts would exceed the District’s established risk thresholds, which can be found here:
https://ww2.valleyair.org/permitting/ceqa/.

A project with a significant health risk would trigger all feasible mitigation measures.

The District strongly recommends that development projects that result in a significant health risk not be approved by the land use agency.

The District is available to review HRA protocols and analyses. For HRA submittals please provide the following information electronically to the District for review:
• HRA (AERMOD) modeling files
• HARP2 files
• Summary of emissions source locations, emissions rates, and emission factor calculations and methodologies.
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For assistance, please contact the District’s Technical Services Department by:
• E-Mailing inquiries to: [email protected]
• Calling (559) 230-5900
Recommended Measure: Development projects resulting in TAC emissions should be located an adequate distance from residential areas and other sensitive receptors to prevent the creation of a significant health risk in accordance to CARB's Air Quality and Land Use Handbook: A Community Health Perspective located at https://ww2.arb.ca.gov/our-work/programs/resource-center/strategydevelopment/land-use-resources.

Ambient Air Quality Analysis
An Ambient Air Quality Analysis (AAQA) uses air dispersion modeling to determine if emissions increases from a project will cause or contribute to a violation of State or National Ambient Air Quality Standards. The District recommends an AAQA be performed for the Project if emissions exceed 100 pounds per day of any pollutant.

An AAQA uses air dispersion modeling to determine if emission increase from a project will cause or contribute to a violation of State or National Ambien Air Quality Standards. An acceptable analysis would include emissions from both projectspecific permitted and non-permitted equipment and activities. The District recommends consultation with District staff to determine the appropriate model and input data to use in the analysis.

Specific information for assessing significance, including screening tools and modeling guidance, is available online at the District’s website:
https://ww2.valleyair.org/permitting/ceqa/.

Voluntary Emission Reduction Agreement
Criteria pollutant emissions may result in emissions exceeding the District’s significance thresholds, potentially resulting in a significant impact on air quality.

When a project is expected to have a significant impact, the District recommends the environmental review also include a discussion on the feasibility of implementing a Voluntary Emission Reduction Agreement (VERA) for this Project.

A VERA is a mitigation measure by which the project proponent provides pound-forpound mitigation of emissions increases through a process that develops, funds, and implements emission reduction projects, with the District serving a role of administrator of the emissions reduction projects and verifier of the successful mitigation effort. To implement a VERA, the project proponent and the District enter into a contractual agreement in which the project proponent agrees to mitigate project specific emissions by providing funds for the District’s incentives programs. 66 Section 6, Item A.

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The funds are disbursed by the District in the form of grants for projects that achieve emission reductions. Thus, project-related impacts on air quality can be mitigated.

Types of emission reduction projects that have been funded in the past include electrification of stationary internal combustion engines (such as agricultural irrigation pumps), replacing old heavy-duty trucks with new, cleaner, more efficient heavy-duty trucks, and replacement of agricultural equipment with the latest generation technologies.

In implementing a VERA, the District verifies the actual emission reductions that have been achieved as a result of completed grant contracts, monitors the emission reduction projects, and ensures the enforceability of achieved reductions. After the project is mitigated, the District certifies to the Lead Agency that the mitigation is completed, providing the Lead Agency with an enforceable mitigation measure demonstrating that project-related emissions have been mitigated. To assist the Lead Agency and project proponent in ensuring that the environmental document is compliant with CEQA, the District recommends the environmental document includes an assessment of the feasibility of implementing a VERA.

Vegetative Barriers and Urban Greening
There are residential units surrounding the Project. There are also schools near the Project, such as Harvest Elementary School located west of the Project, or Kerman High School located southwest of the Project. The District suggests the City consider the feasibility of incorporating vegetative barriers and urban greening as a measure to further reduce air pollution exposure on sensitive receptors (e.g., residential units, schools).

While various emission control techniques and programs exist to reduce air quality emissions from mobile and stationary sources, vegetative barriers have been shown to be an additional measure to potentially reduce a population’s exposure to air pollution through the interception of airborne particles and the update of gaseous pollutants. Examples of vegetative barriers include, but are not limited to the following: trees, bushes, shrubs, or a mix of these. Generally, a higher and thicker vegetative barrier with full coverage will result in greater reductions in downwind pollutant concentrations. In the same manner, urban greening is also a way to help improve air quality and public health in addition to enhancing the overall beautification of a community with drought tolerant, low-maintenance greenery.

Clean Lawn and Garden Equipment in the Community
Since the Project consists of residential development, gas-powered residential lawn and garden equipment have the potential to result in an increase of NOx and PM2.5 emissions. Utilizing electric lawn care equipment can provide residents with immediate economic, environmental, and health benefits. The District recommends the Project proponent consider the District’s Clean Green Yard Machines (CGYM) 67 Section 6, Item A.

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August 20, 2025
program which provides incentive funding for replacement of existing gas powered lawn and garden equipment. More information on the District CGYM program and funding can be found at: https://ww2.valleyair.org/grants/clean-green-yardmachines-residential/.

On-Site Solar Deployment
It is the policy of the State of California that renewable energy resources and zerocarbon resources supply 100% of retail sales of electricity to California end-use customers by December 31, 2045. While various emission control techniques and programs exist to reduce air quality emissions from mobile and stationary sources, the production of solar energy is contributing to improving air quality and public health. The District suggests that the City consider incorporating solar power systems as an emission reduction strategy for the Project.

District Rules and Regulations
The District issues permits for many types of air pollution sources, and regulates some activities that do not require permits. A project subject to District rules and regulations would reduce its impacts on air quality through compliance with the District’s regulatory framework. In general, a regulation is a collection of individual rules, each of which deals with a specific topic. As an example, Regulation II (Permits) includes District Rule 2010 (Permits Required), Rule 2201 (New and Modified Stationary Source Review), Rule 2520 (Federally Mandated Operating Permits), and several other rules pertaining to District permitting requirements and processes.

The list of rules below is neither exhaustive nor exclusive. Current District rules can be found online at: https://ww2.valleyair.org/rules-and-planning/current-district-rulesand-regulations. To identify other District rules or regulations that apply to future projects, or to obtain information about District permit requirements, the project proponents are strongly encouraged to contact the District’s Small Business Assistance (SBA) Office at (559) 230-5888.

District Rules 2010 and 2201 - Air Quality Permitting for Stationary Sources
Stationary Source emissions include any building, structure, facility, or installation which emits or may emit any affected pollutant directly or as a fugitive emission. District Rule 2010 (Permits Required) requires operators of emission sources to obtain an Authority to Construct (ATC) and Permit to Operate (PTO) from the District. District Rule 2201 (New and Modified Stationary Source Review) requires that new and modified stationary sources of emissions mitigate their emissions using Best Available Control Technology (BACT).
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This Project may be subject to District Rule 2010 (Permits Required) and Rule 2201 (New and Modified Stationary Source Review) and may require District permits. Prior to construction, the Project proponent should submit to the District an application for an ATC. For further information or assistance, the project proponent may contact the District’s SBA Office at (559) 230-5888.

District Rule 9510 - Indirect Source Review (ISR)
The Project is subject to District Rule 9510 because it will receive a projectlevel discretionary approval from a public agency and will equal or exceed 50 dwelling units.

The purpose of District Rule 9510 is to reduce the growth in both NOx and PM emissions associated with development and transportation projects from mobile and area sources; specifically, the emissions associated with the construction and subsequent operation of development projects. The ISR Rule requires developers to mitigate their NOx and PM emissions by incorporating clean air design elements into their projects. Should the proposed development project clean air design elements be insufficient to meet the required emission reductions, developers must pay a fee that ultimately funds incentive projects to achieve off-site emissions reductions.

Per Section 5.0 of the ISR Rule, an Air Impact Assessment (AIA) application is required to be submitted no later than applying for project-level approval from a public agency. As of the date of this letter, the District has not received an AIA application for this Project. Please inform the project proponent to immediately submit an AIA application to the District to comply with District Rule 9510 so that proper mitigation and clean air design under ISR can be incorporated into the Project’s design.

Information about how to comply with District Rule 9510 can be found online at:
https://ww2.valleyair.org/permitting/indirect-source-review-rule-overview The AIA application form can be found online at:
https://ww2.valleyair.org/permitting/indirect-source-review-rule-overview/formsand-applications/ District staff is available to provide assistance and can be reached by phone at (559) 230-5900 or by email at [email protected].

District Rule 4002 (National Emissions Standards for Hazardous Air Pollutants)
In the event an existing building will be renovated, partially demolished or removed, the Project may be subject to District Rule 4002. This rule requires a 69 Section 6, Item A.

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thorough inspection for asbestos to be conducted before any regulated facility is demolished or renovated. Information on how to comply with District Rule 4002 can be found online at: https://ww2.valleyair.org/compliance/demolitionrenovation/ District Rule 4601 (Architectural Coatings)
The Project may be subject to District Rule 4601 since it may utilize architectural coatings. Architectural coatings are paints, varnishes, sealers, or stains that are applied to structures, portable buildings, pavements or curbs.

The purpose of this rule is to limit VOC emissions from architectural coatings.

In addition, this rule specifies architectural coatings storage, cleanup and labeling requirements. Additional information on how to comply with District Rule 4601 requirements can be found online at:
https://ww2.valleyair.org/media/tkgjeusd/rule-4601.pdf
District Regulation VIII (Fugitive PM10 Prohibitions)
The project proponent may be required to submit a Construction Notification Form or submit and receive approval of a Dust Control Plan prior to commencing any earthmoving activities as described in Regulation VIII, specifically Rule 8021 – Construction, Demolition, Excavation, Extraction, and Other Earthmoving Activities.

Should the project result in at least 1-acre in size, the project proponent shall provide written notification to the District at least 48 hours prior to the project proponents intent to commence any earthmoving activities pursuant to District Rule 8021 (Construction, Demolition, Excavation, Extraction, and Other Earthmoving Activities). Also, should the project result in the disturbance of 5- acres or more, or will include moving, depositing, or relocating more than 2,500 cubic yards per day of bulk materials, the project proponent shall submit to the District a Dust Control Plan pursuant to District Rule 8021 (Construction, Demolition, Excavation, Extraction, and Other Earthmoving Activities). For additional information regarding the written notification or Dust Control Plan requirements, please contact District Compliance staff at (559) 230-5950.

The application for both the Construction Notification and Dust Control Plan can be found online at: https://ww2.valleyair.org/media/fm3jrbsq/dcp-form.docx Information about District Regulation VIII can be found online at:
https://ww2.valleyair.org/dustcontrol
70 Section 6, Item A.

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District Rule 4901 - Wood Burning Fireplaces and Heaters The purpose of this rule is to limit emissions of carbon monoxide and particulate matter from wood burning fireplaces, wood burning heaters, and outdoor wood burning devices. This rule establishes limitations on the installation of new wood burning fireplaces and wood burning heaters.

Specifically, at elevations below 3,000 feet in areas with natural gas service, no person shall install a wood burning fireplace, low mass fireplace, masonry heater, or wood burning heater.

Information about District Rule 4901 can be found online at:
https://ww2.valleyair.org/compliance/residential-wood-smoke-reductionprogram/ Other District Rules and Regulations
The Project may also be subject to the following District rules: Rule 4102 (Nuisance) and Rule 4641 (Cutback, Slow Cure, and Emulsified Asphalt, Paving and Maintenance Operations).

District Comment Letter
The District recommends that a copy of the District’s comments be provided to the Project proponent.

If you have any questions or require further information, please contact Dylan Casares by e-mail at [email protected] or by phone at (559) 230-6574.

Sincerely,
Mark Montelongo
Director of Policy and Government Affairs
For: Daniel Martinez
Program Manager
71 Section 6, Item A.

January 28, 2026
Planning Department
City of Kerman
850 S. Madera Avenue
Kerman, Ca 93630
Re: Air Impact Assessment (AIA) Application Approval
ISR Project Number: C-20260009
Land Use Agency: City of Kerman
Land Use Agency ID Number: Unknown
To Whom It May Concern:

The San Joaquin Valley Air Pollution Control District (District) has approved the Air Impact Assessment (AIA) application for the Harvest Estates (Tract 6509) Project, located at east of North Madera Avenue, between West Whitesbridge Avenue and West Nielsen Avenue in Kerman, California. The Project consists of the construction of 185 single-family homes on 31.28 acres. The District has determined that the mitigated baseline emissions for construction and operation will be less than two tons NOx per year and two tons PM10 per year. Pursuant to District Rule 9510 Section 4.3, this project is exempt from the requirements of Section 6.0 (General Mitigation Requirements) and Section 7.0 (Off-site Emission Reduction Fee Calculations and Fee Schedules) of the rule. As such, the District has determined that this project complies with the emission reduction requirements of District Rule 9510 and is not subject to payment of off-site fees.

Pursuant to District Rule 9510, Section 8.4, the District is providing you with the following information:
• A notification of AIA approval (this letter)
• A statement of tentative rule compliance (this letter) • An approved Monitoring and Reporting Schedule
• A copy of the Air Impact Assessment Application
Certain emission mitigation measures proposed by the applicant may be subject to approval or enforcement by the City of Kerman. No provision of District Rule 9510 requires action on the part of the City of Kerman, however, please review the enclosed list of mitigation measures and notify the District if the proposed mitigation measures are inconsistent with your agency’s requirements for this project. The District can provide the detailed emissions analysis upon request.
72 Section 6, Item A.

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If you have any questions, please contact Mr. Dylan C Casares by telephone at (559) 230- 6574 or by email at [email protected].

Sincerely,
Mark Montelongo
Director of Policy and Government Affairs
For: Daniel Martinez
Program Manager
Enclosures
73 Section 6, Item A.

SJVAPCD Indirect Source Review CENTRAL
1/28/2026
2:04 PM Complete Project Summary Sheet &
Monitoring and Reporting Schedule
Project Name: HARVEST ESTATES (TRACT 6509) PROJECT
Applicant Name: NORTH KERMAN, LLC
Project Location:

EAST OF N. MADERA AVE, BETWEEN W. WHITESBRIDGE AND W. NIEL ON THE EAST SIDE OF N. MADERA AVENUE BETWEEN W WHITESBRIDGE AVENUE AND APNs: 025-130-47, 025-130-48
Project Description:

LAND USE:

Residential - 185 Dwelling Unit - Single Family Housing Residential - 185 Dwelling Unit - Single Family Housing Residential - 80 Dwelling Unit - Single Family Housing
Residential - 80 Dwelling Unit - Single Family Housing
Residential - 80 Dwelling Unit - Single Family Housing
Residential - 75 Dwelling Unit - Single Family Housing
Residential - 75 Dwelling Unit - Single Family Housing
Residential - 30 Dwelling Unit - Single Family Housing
Residential - 30 Dwelling Unit - Single Family Housing
Residential - 30 Dwelling Unit - Single Family Housing
ACREAGE: 39.17
ISR Project ID Number: C-20260009
Applicant ID Number: C-304216
Permitting Public Agency: CITY OF KERMAN
Public Agency Permit No: UNKNOWN
Existing Emission Reduction Measures
There are no Existing Measures for this project
Non-District Enforced Emission Reduction Measures
Enforcing Agency Measure Specific Condition Source of Requirements City of Kerman Install Solar Panel Install solar panels with a total power output of 740 kW
Number of Non-District Enforced Measures: 1
District Enforced Emission Reduction Measures
Enforcing Agency Measure Specific Condition
SJVAPCD Construction and Operation -
Exempt from Off-site Fee
For each project phase, within 30-days of issuance of the first certificate of occupancy, if applicable, submit to the District a summary report of the construction start, and end dates, and the date of issuance of the first certificate of occupancy. Otherwise, submit to the District a summary report of the construction start and end dates within 30-days of the end of each phase of construction.

SJVAPCD Construction and Operation -
Recordkeeping
For each project phase, all records shall be maintained on site during construction and for a period of ten years following either the end of construction or the issuance of the first certificate of occupancy, whichever is later. Records shall be made available for District inspection upon request.

SJVAPCD Construction and Operational
Dates
For each project phase, maintain records of (1) the construction start and end dates and (2) the date of issuance of the first certificate of occupancy, if applicable.

Number of District Enforced Measures: 3
1/1
74 Section 6, Item A.

Central Region Office: 1990 E. Gettysburg Ave. Fresno, CA 93726-0244 TEL (559) 230-6000 www.valleyair.org/ISR

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Indirect Source Review (ISR) - Air Impact Assessment (AIA) Application A. Applicant Information
Applicant/Business Name: North Kerman, LLC
Mailing Address: 4757 N Van Ness Blvd. City: Fresno State: California Zip: 93704 Contact: Michael Chaney Title: Manager
Is the Applicant a licensed state contractor? No Yes, please provide State License number:

Phone: Office (559) 260-2740 Email: [email protected] B. Agent Information (if applicable)
Agent/Business Name: Johnson Johnson & Miller Air Quality Consulting Services Mailing Address: 2618 Burl Avenue City: Clovis State: California Zip: 93611 Contact: Richard Miller Title: Air Quality Specialist
Phone: (559) 392-3665 Email: [email protected] C. Project Information
Project Name: Harvest Estates (Tract 6509) Project
Project Location Street: On the east side of N. Madera Avenue, between W. Whitesbridge and W. Nielsen Avenues
City: Kerman Zip: 93630
Cross Streets: On the East side of N. Madera Avenue between W Whitesbridge Avenue and W. Nielsen Avenue County: Fresno County Permitting Agency: City of Kerman Planner: Manuel Campos, Assistant Planner Contact Number: (559) 550-0832
Permit Type and Number (if known):

Subject to Project-Level Discretionary Approval? Yes No Last Project-Level Discretionary Approval Date: TBD Last Project-Level Ministerial Approval Date: TBD
D. Project Description
Please briefly describe the project (e.g.: 300 multi-family residential units apartments or 6 miles road widening):

The Harvest Estates (Tract 6509) Project consists of construction and development of a residential subdivision consisting of up to 185 single-family homes in Kerman, California. The project site is 31.28 acres located on the east side of N. Madera Avenue, between W. Whitesbridge Avenue and W. Nielsen Avenue. The Assessor’s Parcel Numbers (APN’s) associated with the project site include 025-130-48 and a portion of 025-130-47. The project is tentatively planned to be developed in three phases.

The current applicant, North Kerman, LLC, is pursuing land entitlements only and anticipates transferring responsibility for the ISR through the Change of Developer process in the future.

For Residential/Non-Residential/Mixed-Use please check the box next to each applicable land use below:

Commercial / Retail Educational Office Warehouse
Residential Government Industrial Distribution Center
Recreational (e.g. park) Medical Manufacturing Other:

For Transportation/Transit please check the box next to each applicable land use below:

New Road Construction Expansion to an Existing Road Bridge / Overpass Interchange or Intersection Improvements
Select land use setting: Urban Rural
E. Notice of Violation
Is this application being submitted as a result of receiving a Notice of Violation (NOV)? No Yes, NOV #:
75 Section 6, Item A.

Central Region Office: 1990 E. Gettysburg Ave. Fresno, CA 93726-0244 TEL (559) 230-6000 www.valleyair.org/ISR

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FOR DISTRICT USE ONLY
Filing Fee
Received: _________________
Date Paid:_________________
Applicant #: _______________
Check
#:_____________________
Project
#:_____________________
Date Stamp: Finance Date Stamp: Permit
F. Voluntary Emission Reduction Agreement (VERA)
Is this project part of a larger project for which there is a VERA with the District? No Yes, VERA #:

G. Optional Section
Do you want to receive information about the Healthy Air Living Business Partners Program? No Yes H. Parcel and Land Owner Information
APN (000-000-00 Format) Gross Acres Land Owner

1. 025-130-47 19.56 Lambrecht Limited II LP

2. 025-130-48 19.61 Lambrecht Limited II LP

3. Additional sheets for listing APN numbers can be found on the District’s website at www.valleyair.org/ISR.

I. Project Development and Operation
Will the project require demolition of existing structures? Yes, complete JT
No, complete K
J. Demolition
Total square feet of building(s) footprint to be demolished: 4,000 sq.ft. Number of Building Stories: 1 Demolition Start Date (Month/Year): November/2026 Number of Days for Demolition: 10-30 (CalEEMod default is 30 days)
K. Timing
Expected number of work days per week during construction? 5 days 6 days 7 days For Transportation/Transit projects, please complete L-1 For Residential/Non-Residential/Mixed-Use projects,
will it be developed in multiple phases?
No, complete L-2
Yes, complete L-3
L-1. Transportation / Transit Development and Timing Details Please note that development timelines provided within this section should reflect actual work time, and should not account for possible project delays.

Start of Construction (Month/Year): End of Construction (Month/Year):

Number of actual construction days:

Length of road being constructed: miles Width of road being constructed: feet Predominant Soil Type (choose one): Sand Gravel Weathered Rock – Earth Blasted Rock Amount of soil imported: cubic yards Amount of soil exported: cubic yards Amount of asphalt imported: cubic yards Amount of asphalt exported: cubic yards Total area to be disturbed: acres Maximum area disturbed per day: acres Average truck capacity: cubic yards Will water trucks be used? Yes No L-2. Single Phase Development
Start of Construction (Month/Year): Gross Acres:

End of Construction (Month/Year): Net Acres (area devoted to buildings/structures):

First Date of Occupation (Month/Year): Paved Parking Area (# of Spaces):

Building Square Footage: Number of Dwelling Units:

Received
1/12/2026

SJVAPCD
C-304216 C-20260009 Permit Services
76 Section 6, Item A.

Central Region Office: 1990 E. Gettysburg Ave. Fresno, CA 93726-0244 TEL (559) 230-6000 www.valleyair.org/ISR

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L-3. Phased Site Development and Building Construction
In addition to the information below you can submit phase specific activity timeline found on District’s website at www.valleyair.org/ISR. 1 Land
Develop for
the Entire
Project Site
Start of Construction (Month/Year): 11/2026 Gross Acres: 31.28 (entire project site) End of Construction (Month/Year): 03/2027 Net Acres (area devoted to buildings/structures): N/A First Date of Occupation (Month/Year): 03/2027 Paved Parking Area (# of Spaces): N/A Building Square Footage: N/A (no buildings) Number of Dwelling Units: — 2 80 Homes
Start of Construction (Month/Year): 03/2027 Gross Acres: 13.67 End of Construction (Month/Year): 01/2028 Net Acres (area devoted to buildings/structures): 12.30 First Date of Occupation (Month/Year): 05/2027 Paved Parking Area (# of Spaces): 1.37 acres Building Square Footage: Single-family homes Number of Dwelling Units: 80 3 75 Homes
Start of Construction (Month/Year): 01/2028 Gross Acres: 12.82 End of Construction (Month/Year): 11/2028 Net Acres (area devoted to buildings/structures): 10.52 First Date of Occupation (Month/Year): 11/2028 Paved Parking Area (# of Spaces): 1.28 acres Building Square Footage: Single-family homes Number of Dwelling Units: 75 4 30 Homes
Start of Construction (Month/Year): 12/2028 Gross Acres: 4.79 End of Construction (Month/Year): 03/2029 Net Acres (area devoted to buildings/structures): 4.31 First Date of Occupation (Month/Year): 01/2029 Paved Parking Area (# of Spaces): 0.48 acres Building Square Footage: Single-family homes Number of Dwelling Units: 30 Additional sheets for phasing information can be found on the District’s website at www.valleyair.org/ISR.

M. On-Site Emission Reduction Measures (Mitigation Measures) Listed below are categories of possible mitigation measures for applicants to implement that will reduce a project’s impact on air quality. Check “Yes” next to any measure that will be utilized for this project, and please complete the corresponding page in this form to identify specifics related to that measure. If a category is not applicable to the project, check “No” and provide justification for not selecting the measure. Also, the applicant is encouraged to provide any mitigation measures including supporting documentation that are not listed on this application form for District consideration. For reference, see www.valleyair.org/ISR for potential additional mitigiation measures.

Clean Construction Fleet Mitgation Measure below can be selected for all development types

1. Clean Construction Fleet (Note: Making a commitment to using less polluting construction equipment) Yes, please complete mitigation measure 1 below
No, please provide justification why not selected: Estimated project emissions are less than 2-tons of NOX and PM10 in each year analyzed without the clean fleet measure.

Operational Mitgation Measure below can be selected for all development types, except for transportation and transit projects

2. Clean On-Road Trucks (e.g. Heavy Duty Trucks, Medium Duty Trucks, and Light Duty Trucks) Note: Operational fleet will use zero and/or near-zero emissions for all or part of its activities.

Yes, please complete applicable mitigation measure 2a through 2c below No, please provide justification why not selected: The project is residential in nature and would not attract heavy-duty truck trips. Any truck trips made for solid waste pickup, deliveries, tree removal, or other activities would not be controlled by the project applicant.

3. On-Site Zero Emission Off-Road Vehicles and Equipment (e.g. electric forklifts and electric yard trucks) Yes, please complete applicable mitigation measure 3 below No, please provide justification why not selected: The project is residential in nature and would not include off-road vehicles or off-road equipment use during project operations.

4. Solar Panels (e.g. incorporate solar panels in the project) Yes, please complete applicable mitigation measure 4 below No, please provide justification why not selected:___________________________________________________________

5. Electric Vehicle (EV) Chargers (e.g. incorporate onsite EV charging infrastructure) Yes, please complete applicable mitigation measure 5 below No, please provide justification why not selected: The project will be built to code, which requires the installation of EV ready parking infrastructure. No EV charging stations are currently proposed as part of the project; however, future residents could install EV charging stations.

6. Clean Lawn and Garden Equipment (e.g. eletric mowers, electric leaf blowers, electric trimmers, etc.) Yes, please complete applicable mitigation measure 6 below 77 Section 6, Item A.

Central Region Office: 1990 E. Gettysburg Ave. Fresno, CA 93726-0244 TEL (559) 230-6000 www.valleyair.org/ISR

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No, please provide justification why not selected: State of California Building Code requires outside outlets; however, future residents will not be required to use 100% zero-emission landscape equipment.

7. Land Use/Location (e.g. increased residential density, increase job density, etc.) Not applicable for rural settings.

Yes, please complete applicable mitigation measures 7a through 7c below No, please provide justification why not selected:___________________________________________________________

8. Parking Policy/Pricing (e.g. unbundle residential parking costs, limit residential parking supply, etc.) Not applicable for rural settings.

Yes, please complete applicable mitigation measure 8a through 8d below No, please provide justification why not selected: The project will be built with adequate parking for the land use (residential). The parking and features were designed to accommodate the anticipated needs and will be built in accordance with existing regulations.

9. Commute Trip Reduction Programs (e.g. workplace parking charge, provide ridesharing program, etc.) Not applicable for rural settings.

Yes, please complete applicable mitigation measures 9a through 9c below No, please provide justification why not selected: There are no regulations or project design features included as part of the project related to any of these measures. Furthermore, the project is residential in nature, while most of the measures 5a thru 5f are generally implemented by non-residential projects.

10. Exceed Title 24 (e.g. exceed California Title 24 required energy efficiency for building(s) associated with the project) Yes, please complete applicable mitigation measure 10 below No, please provide justification why not selected: The project will be built to code for required energy efficiency.

N. Review Period
You may request a five (5) day period to review a draft of the District’s analysis of your project before it is finalized. However, if you choose this option, it will delay the project’s finalization by five (5) business days.

I request to review a draft of the District’s analysis.

O. Fee Deferral Schedule
If the project’s on-site air pollution reductions (mitigation measure) insufficiently reduced air pollution as outlined in Rule 9510, an off-site fee is assessed based on the excess air pollution. The money collected from this fee will be used by the District to reduce air pollution emissions ‘off-site’ on behalf of the project.

An Applicant may request a deferral of all or part of the ‘off-site’ fees up to, but not to exceed, the start date of construction. The start of construction is any of the following, whichever occcurs first: start of grading, start of demolition, or any other site development activities not mentioned above.

I request a Fee Deferral Schedule, and have enclosed the Fee Deferral Schedule Application.

The Fee Deferral Schedule Application, can be found on the District’s website at www.valleyair.org/ISR.

P. Change of Project Developer
The Applicant assumes all responsibility for ISR compliance for this project. If the project developer changes, the Applicant must notify the Buyer, and both Buyer and Applicant must file a ‘Change of Project Developer’ form with the District. If there is a change of project developer, and a ‘Change of Project Developer’ form is not filed with the District, the Applicant will remain liable for ISR compliance.

The Change of Project Developer form can be found on the District’s website at www.valleyair.org/ISR.

Q. Attachments
Required:

Tract Map or Project Design Map
Vicinity Map
Application Filing Fee
$909.00 for mixed use / non-residential / transportation / transit projects OR
$607.00 for residential projects only
If applicable:

Letter from Applicant granting Agent authorization
Fee Deferral Schedule Application
Monitoring & Reporting Schedule
Supporting documentation for selected Mitigation
Measures
78 Section 6, Item A.

Central Region Office: 1990 E. Gettysburg Ave. Fresno, CA 93726-0244 TEL (559) 230-6000 www.valleyair.org/ISR

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R. Certification Statement
I certify that I have reviewed and completed the entire application and hereby attest that the information relayed within is true and correct to the best of my knowledge. I commit to implementation of those on-site mitigation measures that I have selected above. I am responsible for notifying the District if I will be unable to implement these mitigation measures. If a committed mitigation measure is not implemented, the project may be re-assessed for air quality impacts. (An authorized Agent may sign the form in lieu of the Applicant if an authorization letter signed by the Applicant is provided).

Name (printed): Richard Miller Title: Air Quality Specialist Signature: Date: January 10, 2026
79 Section 6, Item A.

Atachment ‘F’
Planning Commission Resolutions
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Atachment ‘G’
RESOLUTION NO. 26-__
A RESOLUTION OF THE CITY COUNCIL 1) ADOPTING MITIGATED NEGATIVE DECLARATION (ENV 2025- 02; SCH #2025121223) AND MITIGATION MONITORING AND REPORTING PROGRAM FOR GENERAL PLAN AMENDMENT 2025-01; AND 2) APPROVING GENERAL PLAN AMENDMENT 2025-01 TO AMEND THE GENERAL PLAN LAND USE MAP FOR THREE PARCELS IDENTIFIED AS ASSESSOR’S PARCEL NUMBERS 025-130-48, 025-130-47, AND 025-130-60S TOTALING APPROXIMATELY 54.2 ACRES, CHANGING APPROXIMATELY 29 ACRES TO 31 ACRES OF MDR – MEDIUM DENSITY RESIDENTIAL AND APPROXIMATELY 24 ACRES TO 21 ACRES OF GC – GENERAL COMMERCIAL, LOCATED ON THE EAST

SIDE OF NORTH MADERA AVENUE BETWEEN WEST WHITESBRIDGE ROAD AND WEST NIELSEN AVENUE (ENV 2025-02 AND GPA 2025-01)
WHEREAS, State Law requires that local agencies adopt General Plans containing specific mandatory elements; and
WHEREAS, the City of Kerman has adopted a Comprehensive General Plan Update and Environmental Impact Report in July 2020, and the City of Kerman is currently in compliance with State mandates relative to Elements of the General Plan; and
WHEREAS, State law also provides for periodic review, updates, and amendments of its various plans; and
WHEREAS, an application was filed by North Kerman, LLC, proposing Annexation (ANX) 2025-01, General Plan Amendment (GPA) 2025-01, Pre-zone/Rezone (REZ) 2025-01, Vesting Tentative Subdivision Map (TSM) 2025-01, and Environmental Assessment (ENV 2025-02) pertaining to five (5) parcels identified as Assessor’s Parcel Numbers (APNs) 025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020- 120-17S, totaling approximately 88.93 acres, generally bound to the north by West Nielsen Avenue, to the west by North Del Norte Avenue, to the south by West Whitesbridge Road (State Route 180), and to the east by North Vineland Avenue; and
WHEREAS, GPA 2025-01 pertains to approximately 54.2 acres of the Project area (APNs 025-130- 48, 025-130-47, and 025-130-60S) located on the east side of North Madera Avenue (State Route 145) between West Whitesbridge Road (State Route 180) to the south and West Nielsen Avenue to the north, adjacent northeast to the Kerman City Limits at 402 North Madera Avenue, 342 North Madera Avenue, 134 North Madera Avenue, Kerman, CA 93630; and
WHEREAS, GPA 2025-01 proposes to modify the General Plan Land Use Map for the subject area, increasing the Medium Density Residential (MDR)-designated area from approximately 29 acres to approximately 31 acres and decreasing the General Commercial (GC)-designated area from approximately 24 acres to approximately 21 acres, shifting the GC designation from the western portion of the site to the northern portion as shown in Exhibit ‘1’; and 132
Section 6, Item A.

WHEREAS, GPA 2025-01 would adjust the balance and spatial arrangement of MDR and GC land uses while maintaining an overall mix of residential and commercial uses consistent with the City’s longterm planning objectives.

WHEREAS, GPA 2025-01 is not expected to be detrimental to the health, safety and welfare of the city; and
WHEREAS, pursuant to the authority and criteria contained in the California Environmental Quality Act of 1970 (“CEQA”), the City of Kerman (“City”) as the Lead Agency, has analyzed the proposed Project, including the annexation, general plan amendment, pre-zone/rezone, vesting tentative subdivision map, and has prepared an Environmental Assessment (ENV 2025-02) (“IS/MND”) to evaluate the Project and the project is in compliance with CEQA; and WHEREAS, the IS/MND was circulated for a 30-day public review and comment period commencing on December 31, 2025, and concluding on January 30, 2026, and a copy of the Draft IS/MND was circulated through the State Clearinghouse (SCH #2025121223), posted on the City’s website, and was available at City Hall; and
WHEREAS, public notice of this public hearing was given by mailed and published notice, in accordance with the applicable State and Municipal Codes and standard practices; and WHEREAS, the Planning Commission has completed its review of the Staff Report and documents submitted for the proposed project at a regular meeting on March 9, 2026, and adopted a resolution with a recommendation to City Council to approve GPA 2025-01 and certify the IS/MND; and WHEREAS, with all the requirements having been met, the City Council now desires to approve GPA 2025-01 and adopt ENV 2025-02.

NOW THEREFORE, the City Council of the City of Kerman does ordain as follows:

1. Recitals. The City Council hereby finds that all of the facts set forth in the recitals above are true and correct and incorporated herein.

2. Certificate of Compliance with CEQA. Pursuant to the authority and criteria contained in the California Environmental Quality Act (CEQA) of 1970, the City, as the Lead Agency, has analyzed the proposed Project and has prepared an Initial Study and Mitigated Negative Declaration (MND) and Mitigated Monitoring and Reporting Program (ENV 2025-02) (SCH #2025121223) to evaluate the environmental effects of the Project, including the proposed annexation, general plan amendment, pre-zone/rezone, and vesting tentative subdivision map. The City Council has fully considered the Mitigated Negative Declaration. The Initial Study was prepared for this Project in accordance with the requirements of the CEQA Guidelines and reflects the City Council’s independent judgment and analysis. This process included the distribution of requests for comment from other responsible or affected agencies and interested organizations. Preparation of the Initial Study necessitated a thorough review of the proposed Project and relevant environmental issues. While the proposed Project could have a potentially significant effect on the environment, based on its independent judgment and analysis, the City Council finds that feasible mitigation measures or alternatives have 133
Section 6, Item A.
been incorporated into the Project in order to avoid the effects or mitigate the effects to a point where no significant effect on the environment will occur, and there is no substantial evidence in the record that this Project may have any direct, indirect or cumulative effects on the environment that are potentially significant and adverse. The proposed Project will not result in any adverse effects which fall within the “Mandatory Findings of Significance” contained in Section 15065 of the State CEQA Guidelines. The Project-specific mitigation measures included in the Project to avoid potentially significant effects are set forth in the Initial Study/Mitigated Negative Declaration and accompanying Mitigation Monitoring and Reporting Program. With the Project specific mitigations imposed, there is no substantial evidence in the record that this Project may have significant direct, indirect or cumulative effects on the environment. As such, the City Council also finds and determines that in light of the entire administrative record and the substantial evidence before it, the Project has been adequately environmentally assessed as required by CEQA per the Initial Study/Mitigated Negative Declaration.

3. Adopt MND and Mitigation Monitoring and Reporting Program. Based on the foregoing, the City Council hereby adopts the Mitigated Negative Declaration prepared for the Project, Exhibit ‘2’, including the associated Mitigation Monitoring and Reporting Program, Exhibit ‘3’, as the Project will not result in any significant, adverse, environmental impacts with the mitigation imposed.

4. Custodian of Records. The City Clerk is recommended as the designated custodian of records for documents comprising the record of proceedings upon which its decision is based. These documents are maintained at City Hall, located at 850 S. Madera Ave. Kerman, CA, 93630.

5. General Plan Consistency: The City Council finds that the public necessity, general welfare, good planning practices, public interest, and convenience warrant approval of GPA 2025-01, including the following:
a. The change is consistent with the General Plan goals and policies. Through compliance with applicable development standards, environmental mitigation measures, and conditions of approval, the Project as proposed is consistent with General Plan Policies LU-1.4, LU-1.6 (Agricultural Buffers), LU-2.3 (Neighborhood Atmosphere), LU-3.2 (Urban Form), LU-3.3 (Prevent Sprawl Development), LU-3.4 (Leapfrog Development), LU-4.1 (Agricultural Land Preservation), LU-4.4 (Opposition to Projects within SOI), LU-4.5 (Right-to-Farm Disclosure), and LU-5.5 (Placement of New Residential Uses). Therefore, the change is consistent with the General Plan goals and policies.
b. The change is consistent with the purpose of the Zoning Ordinance to preserve and promote the public health, safety and welfare of the city and to facilitate growth and expansion of the city in a precise and orderly manner. The Project is currently planned for residential and commercial uses. The Project requests an amendment to the General Plan to increase the acreage of land designated for medium density and decrease the acreage of land designated for commercial uses. A rezone is also proposed to pre-zone the parcels to be annexed and rezone them to zoning districts consistent with the proposed land use designations. The proposed zoning districts are identified as compatible zoning districts for the proposed land use designations as shown in the General Plan. Future development proposed would be subject to compliance with the applicable standards and requirements of the Zoning 134
Section 6, Item A.

Ordinance, standards which were adopted by the City to ensure preservation and promotion of public health, safety and welfare of the city and to facilitate growth and expansion of the city in a precise and orderly manner. Further, the Project has been reviewed by the various City departments and evaluated for conformity with the requirements of the Zoning Ordinance. Through compliance with applicable development standards, environmental mitigation measures, and conditions of approval, the Project as proposed is consistent with the purpose of the Zoning Ordinance.
c. There will not be significant effects upon the quality of the environment and natural resources. Pursuant to the authority and criteria contained in the California Environmental Quality Act of 1970 (“CEQA”), the City, as the Lead Agency, has analyzed the proposed Project, including the annexation, general plan amendment, pre-zone/rezone, and vesting tentative subdivision map, and has prepared an Initial Study and Mitigated Negative Declaration (ENV 2025-02) (SCH #2025121223) to evaluate the proposed Project. It was determined that all impacts were either less than significant or could be mitigated to a less than significant level through the Mitigation Monitoring and Reporting Program.

6. Approval of General Plan Amendment 2025-01. Given that all the findings can be made, the City Council adopts a resolution to adopt Mitigated Negative Declaration (ENV 2025-02) and Mitigation Monitoring and Reporting Program and approve GPA 2025-01 to amend the General Plan Land Use Map for three parcels identified as Assessor’s Parcel Numbers 025-130-48, 025-130-47, AND 025- 130-60S totaling approximately 54.2 acres, changing approximately 29 acres to 31 acres of MDR – Medium Density Residential and approximately 24 acres to 21 acres of GC – General Commercial, located on the east side of North Madera Avenue between West Whitesbridge Road and West Nielsen Avenue, as shown in Exhibit ‘1’ of this resolution.

7. Effective Date of Resolution. This resolution shall become effective immediately. The City Clerk shall certify to the adoption of the Resolution and shall transmit copies of the same to the City Council of the City of Kerman.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regularly scheduled meeting held on the 22nd day April of 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
135
Section 6, Item A.

The foregoing resolution is hereby approved.
______________________________
Maria Pacheco
Mayor
ATTEST:
____________________________
Dalia Santana-Zamudio
Deputy City Clerk
136
Section 6, Item A.

Exhibit ‘1’
General Plan Land Use Map Amendment
Prior General Plan Land Use Designation New General Plan Land Use Designation 137
Section 6, Item A.

Exhibit ‘2’
Initial Study and Mitigated Negative Declaration
The Initial Study and Mitigated Negative Declaration (SCH No. 2025121223) is posted on the City’s Website under the Community Development Department, Planning Division, Planning Projects, 2025 Projects webpage at https://www.cityofkerman.net/175/Planning-Projects, and is available at the City Clerk’s office at 850 S. Madera Avenue, Kerman, CA 93630. 138
Section 6, Item A.

Exhibit ‘3’
Mitigation Monitoring and Reporting Program
State law requires that the City of Kerman (Lead Agency) adopt a monitoring program for mitigation measures that have been incorporated into the approved project to reduce or avoid significant effects on the environment. The purpose of the monitoring program is to ensure compliance with environmental mitigation during project implementation and operation. Since there are potentially significant impacts requiring mitigation associated with the project, a Mitigation Monitoring and Reporting Program is included herein on the following pages. 139
Section 6, Item A.

MITIGATION MONITORING AND REPORTING PROGRAM
HARVEST ESTATES SUBDIVISION (TENTATIVE SUBDIVISION MAP (TSM) NO. 2025-01, ANNEXATION (ANX) NO. 2025-01, GENERAL PLAN AMENDMENT (GPA) NO. 2025-01, REZONE (REZ) NO. 2025-01, ENVIRONMENTAL ASSESSMENT (ENV) NO. 2025-02) SEPTEMBER 2025
This mitigation measure monitoring and reporting checklist was prepared pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15097 and Section 21081.6 of the Public Resources Code (PRC). The timing of implementing each mitigation measure is identified in in the checklist, as well as identifies the entity responsible for verifying that the mitigation measures applied to a Project are performed. Project proponents are responsible for providing evidence that mitigation measures are implemented. As lead agency, the City of Kerman is responsible for verifying that mitigation is performed/ completed.

Mitigation Measures
Party
responsible
for
Implementing
Mitigation
Timing of
Verification
Party
responsible
for
Monitoring
Verification
(Date /
Initials)
Agricultural and Forestry Resources
AG-1: Reduce Conflicts Between Urban and Agricultural Uses. In order to reduce potential conflicts between urban and agricultural uses, the following measures shall be implemented:

1. Potential residents shall be notified about possible exposure to agricultural chemicals at the time of purchase / lease of property within the development. Notification shall be provided by the project proponent to the potential resident. Notification shall occur at the time of each property sale or lease agreement, as demonstrated through disclosure statements included in the purchase agreements or lease documents, with a signed
acknowledgement by the buyer/lessee. Verification that this notification process has been consistently implemented shall be provided by the project proponent to the City of Kerman Community Development Department prior to the approval of occupancy for each property.

2. A Right-to-Farm Covenant shall be recorded on each parcel map and residential tract map or be made a condition of each tract map or parcel map to protect continued agricultural practices in the

1. Project
Proponent

2. City of
Kerman
Community
Development
Department
(Conditions of
approval) and
Project
Proponent
(Recordation)

3. Project
Proponent

1. Prior to
occupancy
approval for
each unit

2. Prior to
final map
approval

3. Prior to
occupancy
approval for
each unit
City of
Kerman
Community
Development
Department
140
Section 6, Item A.
area. The City of Kerman Community Development Department shall be responsible for requiring the condition as part of the tentative map approval. The project proponent shall be
responsible for ensuring the covenant is recorded. Verification of recording shall occur by the City of Kerman Community
Development Department prior to the final map approval.

3. Potential residents and commercial tenants shall be informed of the Right-to-Farm Covenant at the time of purchase / lease of property within the development. Notification shall be provided by the project proponent to the potential resident. Verification shall occur at the time of each property sale or lease agreement, as demonstrated through disclosure statements included in the purchase agreements or lease documents, with a signed
acknowledgement by the buyer/lessee. Verification that this notification process has been consistently implemented shall be provided by the project proponent to the City of Kerman Community Development Department prior to the approval of occupancy.

Air Quality
AQ-1: During Project construction, the Project contractor or Project representatives shall ensure that all off-road diesel-powered construction equipment used for the grading and building construction phases meet the CARB Tier 4 emissions standards or equivalent.

Project
Proponent
During
Construction
City of
Kerman
Community
Development
Department
Biological Resources
BIO-1: In order to avoid the potential for impacts to bird species including migratory birds, the following measures shall be implemented in conjunction with the construction of each phase of the Project: Removal of the orchard trees and trees surrounding the residential homes shall be conducted between September 1 – January 31 to avoid tree removal during the nesting season. In the event tree removal is scheduled to occur between February 1 – August 31, then prior to tree removal, a survey for nesting migratory birds shall be completed by a qualified biologist to avoid Project
Proponent
Prior to
issuance of
building
permits for
each phase
City of
Kerman
Community
Development
Department
141
Section 6, Item A.
impacts to occupied nests. Any occupied nest must be protected/avoided until after the young have fledged, as determined and monitored by a qualified biologist.

Cultural Resources
CUL-1: In order to avoid the potential for impacts to historic and prehistoric archaeological resources, the following measures shall be implemented in conjunction with the construction of each phase of the Project:

If previously unknown historical, archeological, cultural, or paleontological resources are encountered before or during grading activities, construction shall stop in the immediate vicinity of the find and a qualified archeologist, historical resources specialist, or paleontologist, shall be consulted to determine whether the resource requires further study.

Notification of discovery shall be provided to the City of Kerman Community Development Department.

The qualified archeologist, historical resources specialist, or paleontologist shall make recommendations to the project proponent on the measures that shall be implemented to protect the discovered resources, including but not limited to excavation of the finds and evaluation of the finds in accordance with Section 15064.5 of the CEQA Guidelines and City’s policies and procedures related to historical, cultural, and paleontological resources. Notification of the measures shall be provided to the City of Kerman Community Development Department.

If the resources are determined to be unique historical resources as defined under Section 15064.5 of the CEQA Guidelines, measures shall be identified by the monitor and recommended to the project proponent, who shall notify the City of Kerman Community Development Department. Appropriate measures for significant resources could include avoidance or capping, preservation in-place, recordation, additional archeological resting, incorporation of the site in green space, parks, or open space, or data recovery excavations of the finds.

No further grading shall occur in the area of the discovery until the City of Kerman Community Development Department approves the measures to protect these resources. Any historical, archeological, cultural, or Project
Proponent
During
construction
activities for
all phases
City of
Kerman
Community
Development
Department
142
Section 6, Item A.
paleontological artifacts recovered as a result of mitigation shall be provided to a City‐approved institution or person who is capable of providing long‐term preservation to allow future scientific study.

Geology and Soils
See Mitigation Measure CUL-1. Project
Proponent
During
construction
activities for
all phases
City of
Kerman
Community
Development
Department
Hazards and Hazardous Materials
HAZ-1 Asbestos Survey. Prior to the demolition or renovation of any existing structure on site, an Asbestos Survey shall be conducted to determine the quantity of asbestos-containing construction material to be removed in the Project. As regulated by National Emission Standards for Hazardous Air Pollutants (NESHAP), the inspection must be conducted by a Cal-OSHA Certified Asbestos Consultant (CAC). The Asbestos Survey report shall be submitted to the City of Kerman Community Development Department for review and approval. Alternatively, if the developer is opting to treat all of the material as RACM and will notify as such, the survey may be bypassed.

A completed and signed Asbestos Notification Form must be submitted to the San Joaquin Valley Air Pollution Control District (SJVAPCD) 10 working days prior to the commencement of any regulated asbestos (RACM) abatement. If it is determined that there are asbestos-containing materials or soils on site, the developer shall utilize specialists/professionals for asbestos removal/abatement to reduce potential health risks to construction workers. Demolition activities that would expose construction workers and/or the public to asbestoscontaining materials shall be conducted in accordance with the applicable regulations, including, but not limited to:
• San Joaquin Valley Air Pollution Control District
Project
Proponent
Prior to
issuance of
demolition
permits
City of
Kerman
Community
Development
Department
143
Section 6, Item A.
• California Health and Safety Code (Section 39650 et seq.) • California Code of Regulations (Title 8, Section 1529) • California Occupational Safety and Health Administration regulations (California Code of Regulations, Title 8, Section 1529 [Asbestos] and Section 1532.1 [Lead])
• Code of Federal Regulations (Title 40, Part 61 [asbestos], Title 40, Part 763 [asbestos], and Title 29, Part 1926 [asbestos and lead]) HAZ-2 Lead-Based Paint Inspection. Prior to the demolition of any existing structure on site, a lead-based paint inspection is required to determine whether the lead-based paint is present in or on the original building materials. The inspection shall be conducted on-site by a state-certified Lead Inspector or Assessor in accordance with the California Code of Regulations, Title 8, Section 1532.1. The investigation report shall be submitted to the City of Kerman Community Development Department for review and approval prior to issuance of a demolition permit.

If it is determined that lead-based paint exists on site, the project proponent shall utilize professionals for lead-based paint removal to reduce potential health risks to construction workers and/or the public.

Pursuant Section 1532.1, construction workers must establish and implement a compliance program, and provide a written Pre-Job Notification to the nearest Division of Occupational Safety and Health Cal/OSHA office 24 hours before the start of a project.

Project
Proponent
Prior to
approval of
demolition
permits
City of
Kerman
Community
Development
Department
HAZ-3 Test for Agricultural Pesticides. Prior to building permit approval for the first construction phase, a Limited Subsurface Investigation (LSI) shall be conducted to assess the surface soil of the project site for residual organochlorine and lead arsenate pesticides. The LSI shall be conducted in accordance with guidelines developed by the Department of Toxic Substances Control (DTSC) and Environmental Protection Agency (EPA) for site assessments. The LSI shall estimate the potential threat to public health and the environment if concentrations of pesticides are encountered using methods outlined in DTSC’s Preliminary Endangerment Assessment Guidance Manual and DTSC’s Screening Level Human Health Risk Assessment guidance for implementing screening level risk analysis.

The LSI shall be submitted to the City of Kerman Community Development Project
Proponent
Prior to
building
permit
approval for
the first
construction
phase
City of
Kerman
Community
Development
Department
144
Section 6, Item A.

Department for review and approval. If the testing reveals concentrations of organochlorine pesticides and lead arsenic above health-based screening levels for residential exposure, remediation of the site shall be required to address residual organochlorine and lead arsenate pesticides above health – based level of concern. Remediation may include excavation and disposal of impacted soil or capping elevated areas beneath paved areas. The Construction Contractor shall implement the recommendations outlined in the LSI.

Noise
NOI-1: To ensure that exterior noise levels at future residential land uses within the project site do not exceed an Ldn of 60 dB due to transportation noise from adjacent roadways (N. Madera Avenue), a continuous, solid sound wall with a minimum height of six (6) feet above the finished project site grade shall be constructed along the project boundary adjacent to the applicable roadway(s). This shall be demonstrated through the project's site, grading, landscape, building, and other required plans and are subject to review and approval by the City of Kerman Community Development Department prior to issuance of building permits. Prior to issuance of occupancy for any noise sensitive land uses located within the identified noise contours, the project proponent shall submit verification that confirms the as-built height and location of any constructed sound walls.

Project
Proponent
Prior to
issuance of
building
permits
City of
Kerman
Community
Development
Department
NOI-2: The following mitigation measures and best management practices shall be applied during periods of project construction. Prior to issuance of building permits for all project phases, the project proponent shall include these measures and best management practices on the construction plans submitted to the City of Kerman Community Development Department. The Building Division shall verify that these measures and best management practices are included in the construction plans prior to approval of building permits. • Adherence to City Ordinance: Construction activities are strictly prohibited outside the hours of 7:00 am and 10:00 pm, as mandated by the City of Kerman Municipal Code. Any work outside these hours requires prior written approval from the City of Kerman's Planning and/or Building Division, demonstrating Project
Proponent
Prior to
issuance of
building
permit
City of
Kerman
Community
Development
Department
145
Section 6, Item A.
necessity and implementation of enhanced noise mitigation measures.
• Equipment Maintenance and Muffling: All construction
equipment shall be maintained in proper working order with effective muffling devices that meet or exceed manufacturer specifications for noise reduction. Documentation of equipment maintenance, including muffler checks, shall be kept on-site and made available for inspection. During inspections by the City of Kerman’s Building Division, non-compliant equipment shall be tagged and prohibited from use until proper maintenance or muffling is implemented and verified by the City.
• Idling Reduction: Noise-producing equipment shall not be left operating, running, or idling when not actively in use by construction personnel. Operators shall be instructed and regularly reminded to turn off equipment during periods of inactivity. This requirement shall be included in contractor agreements.
• Distance from Sensitive Receptors: Noise-producing construction equipment shall be strategically located and operated as far as feasible from noise-sensitive land uses (e.g., residences, schools, hospitals, parks). Site plans submitted with the construction documents shall identify noise-sensitive areas and demonstrate how equipment placement maximizes distance. The City's review of the construction site plan will assess the proposed equipment locations relative to sensitive receptors. Any significant deviations during construction will require justification and potential relocation of equipment as directed by the City.
• Staging Area Location: Construction staging areas, where equipment and materials are stored and where less intensive activities may occur, shall be located at the maximum possible distance from noise-sensitive land uses. The location of staging areas shall be clearly indicated on the construction site plan. The approved site plan will dictate the permissible locations for staging 146
Section 6, Item A.
areas. Any unauthorized staging in closer proximity to sensitive receptors will require immediate relocation.
• Construction Hours Signage: Clearly visible signs, in both English and Spanish, shall be posted at all construction site entrances and near adjacent sensitive receptors. These signs shall prominently display the permitted hours of construction activities and provide the name and contact phone number of a designated noise disturbance coordinator responsible for addressing noise complaints. The presence and legibility of these signs will be verified during initial site inspections and monitored throughout the construction period. Missing or inadequate signage will require immediate replacement. The contact information for the noise coordinator shall be provided to the City prior to the commencement of construction.

Tribal Cultural Resources
See Mitigation Measure CUL-1 Project
Proponent
During
construction
activities for
all phases
City of
Kerman
Community
Development
Department
147
Section 6, Item A.

Atachment ‘H’

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KERMAN APPROVING AN

AMENDMENT TO THE OFFICIAL ZONING MAP OF THE CITY OF KERMAN TO PRE-ZONE FIVE PARCELS IDENTIFIED AS ASSESSOR’S PARCEL NUMBERS 025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020-120-17S TOTALING APPROXIMATELY 88.93 ACRES TO ZONING DISTRICTS CONSISTENT WITH THE

PROPOSED CITY OF KERMAN GENERAL PLAN LAND USE DESIGNATIONS, RESULTING IN APPROXIMATELY 57 ACRES ZONED SD-R-3.5 AND 31 ACRES ZONED CG, LOCATED BETWEEN WEST NIELSEN AVENUE, NORTH DEL NORTE AVENUE, WEST WHITESBRIDGE ROAD (STATE ROUTE 180), AND NORTH VINELAND AVENUE (REZONE 2025-01)
WHEREAS, an application was filed by North Kerman, LLC, proposing Annexation (ANX) 2025-01, General Plan Amendment (GPA) 2025-01, Pre-zone/Rezone (REZ) 2025-01, Vesting Tentative Subdivision Map (TSM) 2025-01, and Environmental Assessment (ENV 2025-02) pertaining to five (5) parcels identified as Assessor’s Parcel Numbers (APNs) 025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020- 120-17S, totaling approximately 88.93 acres, generally bound to the north by West Nielsen Avenue, to the west by North Del Norte Avenue, to the south by West Whitesbridge Road (State Route 180), and to the east by North Vineland Avenue; and
WHEREAS, the Project area is outside Kerman City Limits and located within the County of Fresno Agricultural Exclusive – 20 Acres (AE-20) and Limited Agricultural – 20 Acres (AL-20) zoning districts; and WHEREAS, because the Project area is outside Kerman City limits, the Project requires annexation and pre-zoning to a zone district consistent with the City of Kerman 2040 General Plan; and WHEREAS, REZ 2025-01 would pre-zone/rezone the approximately 88.93-acre Project area (APNs 025-130-48, 025-130-47, 025-130-60S, 020-120-11, and 020-120-17S) to the Smart Development Residential 3,500 square feet average parcel size (SD-R-3.5) and General Commercial (CG) zoning districts, resulting in approximately 57 acres zoned SD-R-3.5 and approximately 31 acres zoned CG as shown in Exhibit ‘A’; and
WHEREAS, the proposed SD-R-3.5 and CG zoning for APNs 020-120-11 and -17S would be consistent with the 2040 Kerman General Plan land use designations for these parcels and the proposed SD-R-3.5 and CG zoning for APNs 025-130-48, -47, and 60S would also be consistent with the General Plan land use designations, upon approval of GPA 2025-01; and WHEREAS, pursuant to the authority and criteria contained in the California Environmental Quality Act of 1970 (“CEQA”), the City of Kerman (“City”) as the Lead Agency, has analyzed the proposed Project, including the annexation, general plan amendment, pre-zone/rezone, vesting tentative subdivision map, and has prepared an Environmental Assessment (ENV 2025-02) (“IS/MND”) to evaluate the Project and the project is in compliance with CEQA; and WHEREAS, public notice of this public hearing was given by mailed and published notice, in accordance with the applicable State and Municipal Codes and standard practices; and 148
Section 6, Item A.

WHEREAS, the Planning Commission completed its review of the Staff Report and documents submitted for the proposed project at a regular meeting on March 9, 2026 and adopted a resolution with a recommendation to the City Council to approve Rezone 2025-01; and WHEREAS, pursuant to the provision of Title 17 of the Kerman Municipal Code, the City of Kerman City Council held a public hearing on April 22, 2026, to consider Rezone 2025-01 during which the Council solicited public testimony, and considered the environmental assessment; and WHEREAS, after due consideration of all the items before it, the City Council now desires to approve REZ 2025-01 as set forth herein.

NOW, THEREFORE, the City Council of the City of Kerman does ordain as follows:

1. Recitals. The City Council hereby finds that all of the facts set forth in the recitals above are true and correct and incorporated herein.

2. CEQA: The City Council previously adopted the Mitigated Negative Declaration (MND) (ENV 2025-02) for the project on April 22, 2026. The MND and associated Mitigation Monitoring and Reporting Program identified REZ 2025-01. REZ 2025-01 does not change the environmental assessment of the IS/MND. The City Council further finds that no subsequent review is required under CEQA Guidelines section 15162 as since that time no substantial changes have been proposed in the Project which will require major revisions of the IS/MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Likewise, no substantial changes have occurred since that time with respect to the circumstances under which the Project is undertaken which will require major revisions of the IS/MND due to the involvement of significant new environmental effects or a substantial increase in the severity of previously identified significant effects. There is also no new information, which was not known and could not have been known at the time of the recommendation for certification that the Project will have significant effect not discussed in the IS/MND. As such, the City Council finds REZ 2025-01 has already been fully assessed in accordance with CEQA, no subsequent review is required under CEQA Guidelines section 15162, and no further action or review is required under CEQA.

3. Rezone Findings. The City Council finds, as follows:
a. The change is consistent with the General Plan. The project site is currently planned for residential and commercial uses. The project requests an amendment to the General Plan and Zoning Map to increase the acreage of land designated for medium density and decrease the acreage of land designated for commercial uses. The project would facilitate future residential and commercial development within an area with existing and planned residential, commercial and schools/public institutional uses. Through compliance with applicable development standards, environmental mitigation measures, and conditions of approval, the project as proposed is consistent with General Plan Policies LU-1.4 (Limit Residential Development Along Highways), LU-1.6 (Agricultural Buffers), LU-2.3 (Neighborhood Atmosphere), LU-3.2 (Urban Form), LU-3.3 (Prevent Sprawl Development), LU-3.4 (Leapfrog Development), LU-4.1 (Agricultural Land Preservation), LU-4.4 (Opposition to Projects within SOI), LU-4.5 (Right-to-Farm Disclosure), and LU-5.5 (Placement of New 149
Section 6, Item A.

Residential Uses). Therefore, the change is consistent with the General Plan goals and policies.
b. The change is consistent with the purpose of the Zoning Ordinance to promote the health, safety, and welfare of the community. The project requests to pre-zone the parcels to be annexed and rezone them to zoning districts consistent with the proposed land use designations. The proposed zoning districts are identified as compatible zoning districts for the proposed land use designations as shown in the General Plan. Future development proposed on the project site would be subject to compliance with the applicable standards and requirements of the Zoning Ordinance, standards which were adopted by the City to ensure preservation and promotion of public health, safety and welfare of the city and to facilitate growth and expansion of the city in a precise and orderly manner. Further, the project has been reviewed by the various City departments and evaluated for conformity with the requirements of the Zoning Ordinance. Through compliance with applicable development standards, environmental mitigation measures, and conditions of approval, the project as proposed is consistent with the purpose of the Zoning Ordinance. c. There will not be significant effects upon the quality of the environment and natural resources. Pursuant to the authority and criteria contained in the California Environmental Quality Act of 1970 (“CEQA”), the City, as the Lead Agency, has analyzed the proposed project, including the annexation, general plan amendment, rezone, and vesting tentative subdivision map, and has prepared an environmental assessment (ENV 2025-02) to evaluate the proposed Project. It was determined that all impacts were either less than significant or could be mitigated to a less than significant level.

4. Approval of Rezone. Given that all the findings can be made, the City Council approves REZ 2025-01 to amend the official zoning map of the City of Kerman to pre-zone five parcels identified as APNs 025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020-120-17S totaling approximately 88.93 acres to zoning districts consistent with the proposed City of Kerman General Plan land use designations, resulting in approximately 57 acres zoned SD-R-3.5 and 31 acres zoned CG, located between West Nielsen Avenue, North Del Norte Avenue, West Whitesbridge Road (State Route 180), and North Vineland Avenue pre-zoning the parcels as set forth in Exhibit ‘A’.

5. Severability: If any section, subsection, sentence, clause, phrase, or portion of this ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions thereof may be declared invalid or unconstitutional.

6. Certification: This ordinance shall be published in accordance with the provisions of Government Code Section 36933.

7. Effective Date of Ordinance. This ordinance shall be in full force and effect thirty (30) days after its passage.
150
Section 6, Item A.

The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Kerman held on the 22nd day of April, 2026, and was passed and adopted at a regular meeting held on the __ day of _____________, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing ordinance is hereby approved.
____________________________
Maria Pacheco
Mayor
ATTEST:
_____________________________
Dalia Santana-Zamudio
Deputy City Clerk
151
Section 6, Item A.

Exhibit ‘A’
Rezone 2025-01 Zoning Map Amendment
Prior Zoning (County) New Zoning (City)
152
Section 6, Item A.

ATTACHMENT ‘I’
RESOLUTION NO. 26-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN APPROVING VESTING TENTATIVE SUBDIVISION MAP 2025-01 TO SUBDIVIDE THREE PARCELS IDENTIFIED AS ASSESSOR’S PARCEL NUMBERS 025-130-48, 025-130-47, AND 025-130-60S INTO 183 SINGLE-FAMILY LOTS AND ONE (1)

COMMERCIAL REMAINDER PARCEL LOCATED ON THE EAST SIDE OF NORTH MADERA AVENUE BETWEEN WEST WHITESBRIDGE ROAD AND WEST NIELSEN AVENUE TOTALING APPROXIMATELY 54.2 ACRES (VESTING TSM 2025-01)
WHEREAS, an application was filed by North Kerman, LLC, proposing Annexation (ANX) 2025-01, General Plan Amendment (GPA) 2025-01, Pre-zone/Rezone (REZ) 2025-01, Vesting Tentative Subdivision Map (TSM) 2025-01, and Environmental Assessment (ENV 2025-02) pertaining to five (5) parcels identified as Assessor’s Parcel Numbers (APNs) 025-130-48, 025-130-47, 025-130-60S, 020-120-11, 020- 120-17S, totaling approximately 88.93 acres, generally bound to the north by West Nielsen Avenue, to the west by North Del Norte Avenue, to the south by West Whitesbridge Road (State Route 180), and to the east by North Vineland Avenue; and
WHEREAS, Vesting TSM 2025-01 pertains to approximately 54.2 acres of the Project area (APNs 025-130-48, 025-130-47, and 025-130-60S) located on the east side of North Madera Avenue (State Route 145) between West Whitesbridge Road (State Route 180) to the south and West Nielsen Avenue to the north, adjacent northeast to the Kerman City Limits at 402 North Madera Avenue, 342 North Madera Avenue, 134 North Madera Avenue, Kerman, CA 93630; and WHEREAS, Vesting TSM 2025-01 would subdivide the approximately 54.2 acres into 183 singlefamily residential lots ranging from 3,628 to 9,797 square feet and one remainder parcel designated for future commercial development plus approximately 1.22 acres of parkland and paseos and 1.27 acres for a temporary ponding basin, as shown in Exhibit ‘1’; and WHEREAS, Vesting TSM 2025-01 would achieve a residential density of 5.85 dwelling units per acre across the 31.28-acre MDR-designated portion consistent with the proposed SD-R-3.5 zoning district (REZ 2025-01) and MDR land use (GPA 2025-01); and WHEREAS, pursuant to the authority and criteria contained in the California Environmental Quality Act of 1970 (“CEQA”), the City, as the Lead Agency, has analyzed the proposed project, including the annexation, general plan amendment, rezone and vesting tentative subdivision map, and has prepared an Environmental Assessment (ENV 2025-02) (“IS/MND”) to evaluate the proposed Project and the project is in compliance with CEQA; and
WHEREAS, public notice of this public hearing was given by mailed and published notice, in accordance with the applicable State and Municipal Codes and standard practices; and WHEREAS, the Planning Commission completed its review of the Staff Report and documents submitted for the proposed project at a regular meeting on March 9, 2026, and adopted a resolution with a recommendation to the City Council to approve Vesting TSM 2025-01; and 153
Section 6, Item A.

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred, and the City Council now desires adoption of a resolution approving Vesting TSM 2025-01 as set forth herein.

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

1. Recitals. The City Council hereby finds that all of the facts set forth in the recitals above are true and correct and incorporated herein.

2. CEQA: The City Council previously adopted the Mitigated Negative Declaration (MND) (ENV 2025-02) for the project on April 22, 2026.The IS/MND identified Vesting TSM 2025-01. Vesting TSM 2025-01 does not change the environmental assessment of the IS/MND. Further, the City Council certified the IS/MND for this project. The City Council further finds that no subsequent review is required under CEQA Guidelines section 15162 as since that time no substantial changes have been proposed in the project which will require major revisions of the IS/MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Likewise, no substantial changes have occurred since that time with respect to the circumstances under which the project is undertaken which will require major revisions of the IS/MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. There is also no new information, which was not known and could not have been known at the time of the recommendation for certification that the project will have significant effect not discussed in the IS/MND. As such, the City Council finds that Vesting TSM 2025-01 has already been fully assessed in accordance with CEQA, no subsequent review is required under CEQA Guidelines section 15162, and no further action or review is required under CEQA.

3. Subdivision Findings. The City Council determines that none of the findings required by the City’s Subdivision Ordinance and the California Subdivision Map Act Section 66474 that require the City to deny approval of a tentative map apply to this project, or that findings regarding flood protection cannot be made. To the contrary, the City Council finds, as follows:
a. The proposed map is consistent with the applicable General Plan, Subdivision Ordinance, Specific Plan, and the Subdivision Map Act. Through compliance with applicable development standards, environmental mitigation measures, and conditions of approval, Vesting TSM 2025-01 is consistent with all local planning documents including the General Plan, Subdivision Ordinance, Zoning Ordinance, and the Subdivision Map Act.
b. The design or improvement of the proposed land division is consistent with applicable general plan and specific plans. Vesting TSM 2025-01 is consistent with the intended land uses, density, and development standards outlined in the General Plan. Through compliance with applicable development standards, environmental mitigation measures, and conditions of approval, the subdivision is consistent with the density and land use designated by the General Plan, as well as circulation, pedestrian accessibility, and other design or improvement requirements of the General Plan. There is no specific plan applicable to the site. 154
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c. That the site is physically suitable for the proposed type of development. Vesting TSM 2025-01 would facilitate the subdivision of three (3) parcels, identified as APNs 025-130-48, 025-130-47, and 025-130-60S to create 183 lots to support single-family development and one remainder parcel to support future commercial uses. Through compliance with applicable development standards, environmental mitigation measures, and conditions of approval, land characteristics, including topography, soil conditions, drainage patterns, ingress/egress and access points, and utility availability are appropriate and can accommodate future development without significant challenges or modifications.
d. That the site is physically suitable for the proposed density of development. Vesting TSM 2025- 01 would facilitate the subdivision of three (3) parcels, identified as APNs 025-130-48, 025-130- 47, and 025-130-60S to create 183 lots to support single-family development and one remainder parcel to support future commercial uses. The lot areas will conform to the standards of development as defined by the Zoning Ordinance for the applicable development zone districts.

Future development will be subject to compliance with applicable development standards, including allowable density and intensity. Compliance with these standards would be ensured through the entitlement review process.
e. The design of the subdivision and the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish, wildlife, or their habitat.

Pursuant to the authority and criteria contained in the California Environmental Quality Act of 1970 (“CEQA”), the City, as the Lead Agency, has analyzed the proposed project, including annexation, general plan amendment, rezone, and vesting tentative subdivision map, and has prepared an Environmental Assessment (ENV 2025-02) to evaluate the proposed Project. It was determined that all impacts were either less than significant or could be mitigated to a less than significant level through the Mitigation Monitoring and Reporting Program. f. The design of the subdivision and type of improvements being required are not likely to cause serious public health problems. All improvements shall be required by the City and shall include sewer, water, underground power, telephone, gas, concrete curbs, gutters, sidewalks, permanent street pavements, and streetlights. The project will be tied into existing municipal water, sewer, and storm drain systems through the extension of existing systems. Sanitary sewer service would be provided via connection to the existing sewer trunk main at the Isabella Avenue and Madera Avenue intersection , and domestic water service would be supplied through connection points in the same intersection and at the southern boundary of the site.. A temporary ponding basin is proposed on-site at the southeastern corner of the remainder commercial parcel. The basin is sized to accommodate stormwater runoff associated with the future residential subdivision and commercial development. The ponding basin will be designed with all applicable codes and standards to manage stormwater runoff effectively, as ensured through City reviewed and approved grading and drainage plans. Associated electric, natural gas, telecommunications, and solid waste services are provided by private companies and will serve the project site as needed. Through compliance with applicable development standards, environmental mitigation measures, and conditions of approval, the design of the subdivision and type of improvements being required are not likely to cause serious public health problems. 155
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g. The design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision. The project site is encumbered by two public easements, including a 40-foot-wide canal easement and a 10-foot-wide PG&E easement. The 40-foot-wide canal easement traverses the remainder commercial parcel, where no development is currently proposed. Upon future development, all improvements would be designed to avoid conflicts with the easement and to maintain access to and use of the canal or provide for relocation or abandonment. The 10-footwide PG&E easement is located along the southern boundary of the project site. The Conditions of Approval require that the facilities within the PG&E easement be relocated or abandoned.

Upon development, all modifications made to the existing public improvements fronting the parcels will be required to meet current City standards. h. That the proposed design provides, to the extent feasible, for future passive or natural heating or cooling opportunities in the subdivision pursuant to Government Code Section 66473.1. As feasible, the project has attempted to take advantage of passive or natural cooling opportunities in subdivision design. Appropriate consideration was given to the local climate, while ensuring that heating and cooling opportunities did not result in the reduction of allowable densities or the percentage of a lot that may be occupied as contemplated by Government Code section 66473.1.

4. Approval with Conditions. Based on the aforementioned findings, the City Council adopts a resolution to approve Vesting TSM 2025-01 (Exhibit ‘1’), subject to the conditions set forth in Exhibit ‘2’ attached hereto.

5. Effective Date of Resolution. This Resolution shall become effective immediately after the City Council approves REZ 2025-01 and said ordinance adopting the same then becomes effective.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regularly scheduled meeting held on the 22nd day of April 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.
______________________________
Maria Pacheco
Mayor
ATTEST:
____________________________
Dalia Santana-Zamudio
Deputy City Clerk
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Exhibit ‘1’
Vesting Tentative Subdivision Map 2025-01
157
Section 6, Item A.
158
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Exhibit ‘2’
Conditions of Approval
Vesting Tentative Subdivision Map No. 2025-01
Harvest Estates Residential Subdivision

1. Community Development Department

1. Project approval is conditioned upon applicant’s acceptance of the conditions of approval contained herein.

2. The applicant shall obtain express written approval from the Community Development Director for a deferment, modification, or waiver of any conditions of approval.

3. The applicant shall relay all conditions of approval for this project to all subsequent purchasers of individual lots, if applicable, or to subsequent purchasers of this entire subdivision.

4. All conditions of approval shall be the sole financial responsibility of the applicant, except where otherwise specified in the conditions of approval listed herein, via a separate development agreement, or as mandated by statutes.

5. The applicant shall comply with all mitigation measures identified in the Mitigation Monitoring and Reporting Program prepared for this development.

6. It shall be the responsibility of the applicant to ensure that all required approvals, permits, and/or inspections from any entity having jurisdiction, are obtained prior to issuance of final occupancy for any lot.

7. For the lots designated for single-family within the smart development combining district, the applicant shall apply for a Development Plan Review Permit to ensure a comprehensive development of superior quality than which might otherwise occur from more traditional development. The Development Plan Review Permit shall be approved prior to the issuance of any building permit.

8. For the lots designated for single-family, a video policing plan shall be submitted to the Community Development Department for approval prior to approval of the first final map.

9. For the remainder lot designated for commercial development, any proposed development will be required to go through the development review process and obtain approvals for development separately.
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10. The applicant shall obtain City approval in advance for any temporary or permanent subdivision signs through the sign review process, in accordance with the City’s Zoning Code.

11. No more than two of the same unit type (floor layout and exterior materials package) shall be repeated side by side. When two of the same units are repeated side by side, they shall be different colors. These identical provisions may be waived by the Community Development Director on a specific lot basis within the project when the size or configuration of a lot would otherwise prevent compliance with the above requirements or any other siting or setback/yard requirements. If such a waiver is requested, the applicant and the Community Development Director shall work together to ensure that any siting of units not in compliance with the above requirements shall be of different materials and elevations in order to minimize any adverse visual impacts.

12. A right-to-farm covenant, approved as to legal form by the City Attorney, shall be recorded prior to the recording of the Final Map. The covenant shall be disclosed to all future homebuyers.

13. All landscaping (public planter/park strips, open space areas, outlots, typical lot plans, etc.) shall conform to the California Model Water Efficient Landscape Ordinance (MWELO) and all other applicable City standards. Preliminary landscape plans for all landscape areas shall be submitted for review and approval by the Community Development Department prior to the submittal of construction documents for review and approval.

14. All residential lots shall provide an all-weather surface and path for the movement and storage of trash toters. The path shall lead from the street to within the fenced side yard of each lot.

15. The applicant shall dedicate an approximately 1.02-acre neighborhood park for public purposes. The park shall be developed with landscaping (trees and shrubs), spacious turf area, shade structure to accommodate a minimum of four (4) picnic tables, ADA compliant amenities, and a playground area for children. A site plan, landscaping plan, and information on all structures, equipment, and materials to be provided shall be submitted for review and approval by the Parks and Recreation Department as part of the Development Plan Review Permit approval process.

2. Engineering Division
The conditions of development approval set forth herein include certain fees, dedication requirements, reservation requirements and other exactions. Pursuant to Section 66020(d) of the Government Code, these conditions constitute written notice of such fees, and a description of the dedications, reservations and other exactions. The applicant is hereby notified that the 90- day protest period commences from the date of approval of the development. If the applicant fails to file a protest regarding any of the fees, dedication requirements, reservation 160
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requirements or other exactions contained in this notice, complying with all the requirements of Section 66020, the applicant will be legally barred from later challenging such exactions.

The conditions given herein are for the entire development. Additional requirements for individual phases may be necessary pending review by the City Engineer.

The following are the conditions of approval imposed on the subject development. The applicant shall:

A. General

1. Obtain express written approval of the City Engineer for a deferment, modification, or waiver of any engineering conditions of approval.

2. Comply with all applicable conditions set forth in Title 16 of the Kerman Municipal Code (Subdivisions).

3. Comply with the City’s Improvement Plans Checklist in preparation of construction documents.

4. Pay all applicable development impact fees at the rate in effect at the time of payment.

The applicant may be eligible for fee credits or fee reimbursements for over-sizing of facilities or construction of other eligible facilities included in the City of Kerman’s Impact Fee Study. The City Engineer will determine the type and extent of improvements that are eligible for fee credits or reimbursements. For any improvements deemed eligible for fee credits or reimbursements, the applicant shall submit itemized quantity and unit costs for each item prior to acceptance of the improvements by the City.

5. Provide security in a sum to be determined by the City Engineer, prior to release of development permits, for the guarantee of improvements construction and against claims that may arise from contractors and material vendors.

6. Provide security in a sum to be determined by the City Engineer, prior to final acceptance of the off-site improvements by the City, for the guarantee and warranty of the improvements for a period of one (1) year following the completion and acceptance thereof by the City Council.

7. Provide a soils report or a waiver of soils report for approval by the City Engineer with the first submittal of the improvement plans.

8. Obtain and comply with encroachment permits from affected jurisdictions for all work performed within their rights-of-way and easements.

9. Comply with all the requirements of the local utility, gas, electric, telephone, cable, and other communication companies (Utilities). It shall be the responsibility of the applicant to notify Utilities to remove or relocate poles where necessary. The City will not accept 161
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first submittal of improvement plans without proof that the applicant has provided the improvement plans to the Utilities.

10. Underground all existing overhead and any new utility facilities located along the development frontage and at all other locations impacted by or necessary to accommodate the proposed development.

11. Contact the United States Postal Service and address all requirements for the location and type of mailboxes to be installed. The location of the facilities shall be approved by the City Engineer prior to approval of improvement plans or any construction. Applicant shall submit a copy of the Method of Delivery Agreement (MODA) to the City.

12. Install all improvements within public right-of-way and easements in accordance with affected jurisdictions standards, specifications, master plans, and record drawings.

13. Provide and pay for all compaction testing required by the City Engineer. Compaction test locations and depths shall be established by the City Engineer. Compaction test results shall be submitted in a format acceptable to the City Engineer, for review and approval.

14. Maintain the construction site, and any public streets fronting the site, clear of any construction or landscaping debris. The site shall not be used as a storage area for equipment, materials, or other items.

15. Remove all existing structures, trees, shrubs, etc., that are within or encroaching on existing or proposed rights-of-way or easements. Existing street improvements shall be preserved, at the discretion of the City Engineer.

16. Provide clean-up, street sweeping, and dust control during the construction of the development to the satisfaction of the City Engineer and Public Works Director. A deposit of $5,000.00 shall be submitted to the City to guarantee compliance. At any time, applicant is deemed to be non-compliant by the City Engineer or Public Works Director, the City may draw from said deposit to pay for necessary activities to bring the site into compliance.

17. Maintain pedestrian and vehicular access to all surrounding properties and buildings to the satisfaction of the City of Kerman Police Department, North Central Fire Protection District, and City Engineer. For developments occurring in phases, the applicant shall submit a schedule showing the sequence of development within the area covered by the tentative map.

18. Assume responsibility for all contractor’s actions during the course of any work occurring on the site. Designate, in writing before starting work, an authorized representative who shall have complete authority to represent and to act for the applicant. Said authorized representative shall be present while work is in progress. During periods when work is 162
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suspended, arrangements acceptable to the City Engineer shall be made for any emergency work which may be required. When the applicant or his authorized representative is not present for any part of the work where it may be necessary to give directions, orders may be given by the City Engineer which shall be received and obeyed by the person(s) in charge of the particular work in reference to which the orders are given. Whenever orders are given to the applicant ’s representative or superintendent or foreman to do work required for the convenience and safety of the general public, such work shall be done at the applicant’s expense.

19. Install monuments at all section corners, quarter section corners, all street centerline intersection points, angle points, and beginning of curves and end of curves on streets adjacent to or within the development prior to final acceptance of the development. Any existing section corner or property corner monuments damaged or destroyed by the development shall be reset to the satisfaction of the City Engineer. A licensed land surveyor or civil engineer licensed to perform land surveying shall certify the placement of all required monumentation prior to final acceptance. Within five days after the final setting of all monuments has been completed, the engineer or surveyor shall give written notice to the City Engineer that the final monuments have been set. Upon payment to the engineer or surveyor for setting the final monuments, the applicant shall present the City Engineer evidence of the payment and receipt thereof by the engineer or surveyor.

B. Maps and Plans

1. Contact the City Engineer to set up a Pre-Submittal Meeting prior to the initial submittal of the improvement plans. The Applicant ’s engineer is required to attend.

2. Submit a 18” x 26” final map, prepared by a registered civil engineer or licensed land surveyor, and adhering to Subdivision Map Act requirements and City of Kerman Municipal Code. The final map shall be drawn at a scale of 1"=100' and include the current filing fee, closure calculations, preliminary title report dated within 60 days of submittal, legal descriptions and drawings of required dedications. Upon approval of the final map, applicant shall submit a reproducible/electronic copy (PDF) to the City Engineer.

3. Submit a set of 24” x 36” construction plans prepared by a licensed Civil Engineer for review and approval of all required improvements prior to the release of any development permits. The plans shall include a site grading and drainage plan, landscaping and irrigation plans, and on-site and off-site utilities plan, if applicable, showing locations and sizes of storm drain, sewer and water mains, laterals, manholes, meters, valves, hydrants, etc.

4. Submit a reproducible/electronic copy (PDF) and two (2) black line copies of the approved set of construction plans, and two (2) bound sets of the approved construction 163
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specifications, if any, prior to beginning any construction, or within ten (10) calendar days of approval.

5. Submit Pad Certification(s) prior to issuance of building permits.

6. Submit a PDF file of the approved set of construction plans revised to reflect all field revisions and marked "AS-BUILT" prior to City acceptance of the improvements.

7. Submit a copy of the recorded map to the County Surveyor’s Office pursuant to Section 66466(f) of the Subdivision Map Act and Section 8774.5(a) of the Professional Land Surveyors Act
C. Dedications and Street Improvements

1. Provide right-of-way acquisition or dedicate free and clear of all encumbrances and improve the following streets to City standards:
a) Isabella Avenue
i) Dedicate right-of-way and easements applicable to 60’ street width, in accordance with City Standard P-1.
ii) Relinquish all direct vehicular access from all single-family lots backing onto this street.
iii) Construct improvements including curb and gutter, sidewalk, drive approaches, curb ramps, streetlights, landscaping and irrigation, and permanent paving. b) Street D – Isabella to Street A; Street A East of Street D i) Dedicate right-of-way and easements applicable to 60’ street width, in accordance with City Standard P-1.
ii) Construct improvements including curb and gutter, sidewalk, drive approaches, curb ramps, streetlights, landscaping and irrigation, and permanent paving. c) Interior Residential Streets
i) Dedicate right-of-way and easements applicable to 56’ street width, in accordance with City Standard P-1.
ii) Relinquish all direct vehicular access from all single-family lots backing onto adjoining properties.
iii) Construct improvements including curb and gutter, sidewalk, drive approaches, curb ramps, streetlights, landscaping and irrigation, and permanent paving. d) Madera Avenue (State Route 145)
i) Complete the Intersection Safety and Operational Assessment Process (ISOAP)in accordance with Caltrans correspondence dated October 21, 2025 for the intersection of Madera Avenue and Isabella Avenue. Adhere to construction of identified improvements and timing relative to issuances of building permits.

Acquire all right-way from adjacent property owners and complete all utility relocations, as necessary, to accommodate the intersection improvements. 164
Section 6, Item A.

Construction of the intersection improvements shall be the sole responsibility of the applicant.
ii) Dedicate ultimate right-of-way (40’ existing) east of center/section line for public highway purposes along development frontage per Caltrans requirements. The minimum dedication from the face of curb to the masonry sound wall shall be 30’. iii) Construct ultimate northbound Madera Avenue improvements including an additional travel lane, bike lane, shoulder and landscaped median island.

Configuration should match the southbound roadway improvements. Frontage improvements shall include curb and gutter, sidewalk (min. 8’ wide), curb ramps, street lights, and landscaping and irrigation. The minimum distance from the face of curb to the masonry sound wall shall be 30’.
iv) Relinquish all direct vehicular access from all single-family lots backing onto Madera Avenue.
e) Paseo/Emergency Vehicle Access (Adjacent to the south of lot 129) i) Dedicate 30’ for emergency vehicle access, public utility, and pedestrian purposes.
ii) Install all-weather surface and access gate in accordance with North Central Fire Protection District requirements, if required for emergency vehicle access. iii) If ultimately not required for emergency vehicle access, construct 10’ wide sidewalk and landscaping and irrigation for pedestrian use. f) Paseo (Adjacent to the east of lots 30 and 49)
i) Dedicate 30’ bike/pedestrian easement for pedestrian purposes. ii) Construct a 10’ wide sidewalk including landscaping and irrigation. g) Paseo/Emergency Vehicle Access (Adjacent to the east of lot 67) i) Dedicate 30’ for emergency vehicle access, public utility, and pedestrian purposes.
ii) Install all-weather surface and access gate in accordance with North Central Fire Protection District requirements, if required for emergency vehicle access. iii) If to be used for emergency vehicle access, construct all-weather access road from Madera Avenue through the commercial remainder parcel to the access point. Dedicate emergency vehicle access easement per North Central Fire Protection District requirements.
iv) If ultimately not required for emergency vehicle access, construct 10’ wide sidewalk and landscaping and irrigation for pedestrian use.

2. Dedicate a 10’ public utility easement along all streets and all other locations requested by utility companies. Alternate widths must be approved in writing by all utility companies and a copy of said written approval shall be submitted to the City Engineer.

3. Obtain "R Value" tests in quantity sufficient to represent all street areas, and have street structural sections designed by a registered civil engineer based on these "R Value" tests. 165
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These designs shall be compared to the minimum section given below and approved by the City Engineer.

Street Designation Minimum Section
Residential Street(s) 2” HMA/4” CLII AB/6” CNS
Collector Street(s) 3” HMA/6” CLII AB/6” CNS

4. Install standard barricades with reflectors at ends of streets abutting undeveloped property and any other locations to be specified by the City Engineer.

5. Install 2”x6” redwood header boards prior to street paving, at the end of any permanent pavement abutting undeveloped property.

6. Install temporary paved cul-de-sacs at the end of any dead-end streets, planned for future extension, longer than 150’. A 40’ radius shall be provided to allow turnaround of emergency equipment.

7. Provide for all striping, stenciling, pavement markers, delineators and signage required of all street improvements within the development. All traffic signs and street name signs shall be installed in accordance with City Standards and the CA MUTCD (latest edition). A striping and signage plan shall be included with the construction plans and submitted for review and approval by the City Engineer.

8. Provide corner cut-offs at all street intersections. Corner cut-offs shall be sufficient to provide for sight distances and accommodate curb ramps.

9. Provide street names consistent with east-west street naming to the west and northsouth street naming to the south. Names matching existing county roads or city streets must maintain the current suffix. When deemed practical, entry streets, cul-de-sacs, and courts should utilize the name of the nearest subdivision street. Street names shall be approved by the Community Development Director.

10. Install subdivision signage complying with applicable Building & Fire Code and Section

17.30.070 of the Kerman Municipal Code.

D. Sanitary Sewer

1. Identify and abandon all existing septic systems per City Standards and any other governing regulations.

2. Dedicate easements for all onsite sewer mains not located in dedicated rights-of-way.

Easement widths to determined by the City Engineer.

3. Connect to the nearest 18” sewer main available to serve the development, located in Isabella Avenue west of Madera Avenue. The applicant ’s engineer shall be responsible 166
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for verifying the size, location, and elevations of existing improvements. Any alternative routing of sewer service must be approved by the City Engineer and supported by appropriate calculations.

4. Install sanitary sewer mains of the size and in the locations indicated below. The applicant ’s engineer shall be responsible for verifying the size, location, and elevations of existing improvements.
a) Interior Streets: Minimum of 8” sewer mains throughout development except as noted below.
b) Isabella Avenue: 18” sewer main
c) Street D, Isabella Avenue to Street A: 18” sewer main d) Street A, Street D to Paseo: 18” sanitary sewer main e) Street A, Paseo to East Property Line: 15” sanitary sewer main f) Paseo, North Property Line to Street A: 10" sewer main

5. Install one (1) sewer service house branch to each lot within the development in accordance with City Standards. Additionally, install sanitary sewer main services to existing parcels’ property lines, not currently served, and fronting the proposed sanitary sewer main improvements.

E. Water

1. Identify and abandon all existing water wells per City Standards and any other governing regulations.

2. Dedicate easements for all onsite water mains, hydrants, blow-offs, and water meters not located in dedicated rights-of-way. Easement widths to determined by the City Engineer.

3. Connect to the nearest 12” water main available to serve the development, located in Isabella Avenue west of Madera Avenue, as well as to the 8” at the southwest corner of the development. Route along the Madera Avenue frontage and into the subdivision as the second point of connection via the outlot south of Lot 129. The applicant ’s engineer shall be responsible for verifying the size, location, and elevations of existing improvements.

4. Install water mains of the sizes and in the locations indicated below and provide an adequately looped water system, consisting of at minimum two connection points. The applicant’s engineer shall be responsible for verifying the size, location, and elevations of existing improvements.
a) Interior Streets: Minimum of 8” water mains throughout development. 167
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b) Madera Avenue: 8” water main along development frontage south of Isabella Avenue. 12” water main along the development frontage north of Isabella Avenue.

5. Install one (1) water service to each lot within the development in accordance with City Standards. Water services shall be grouped at property lines. Additionally, install water services to existing parcels’ property lines, not currently served and fronting the proposed water main improvements.

6. Install landscape water service(s), size as necessary to each public landscape area within the development in accordance with City Standards.

7. Install one (1) signal repeater for the City’s incorporation into its water meters advanced network infrastructure. The location and type shall be determined by the City Engineer.

8. Install one (1) water sampling station in accordance with City Standards. The location shall be determined by the City Engineer.

9. Install fire services in accordance with North Central Fire Protection District requirements and City Standards. Fire services shall include a detector check.

10. Install fire hydrants at locations approved by the North Central Fire Protection District. Fire hydrants and curbs shall be painted as directed by the North Central Fire Protection District.

11. Do not perform water service connection to the City of Kerman water system until a bacteriological report has been accepted by the City Engineer.

F. Surface Water Conveyance

1. Install 18” surface water pipeline along the Madera Avenue development frontage for future recharge activities of Basin C. Connect to existing 18” storm drain main in Isabella Avenue west of Madera Avenue.

G. Grading and Drainage

2. Provide a temporary on-site retention basin for storm water disposal. The size and design shall be in accordance with the requirements of the City Engineer and may change based on design calculations and access requirements for maintenance. Sizing calculations shall be provided on the grading plan. The temporary basin is solely for the convenience of the development. A covenant stating maintenance requirements shall be prepared and recorded on the lot on which the basin is to be located.

3. Backfill the temporary basin within ninety (90) days after notice by the City that the permanent facility is available, and the temporary basin is no longer needed. In the event 168
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the owner fails to backfill said basin, the City may cause the basin to be backfilled. A lien to cover the cost of work will be placed on the property on which the basin is located. A covenant stating these requirements shall be prepared and recorded on the lot on which the basin is to be located.

4. Install storm drain mains of the sizes and in the locations indicated below. The applicant ’s engineer shall be responsible for verifying the size, location, and elevations of existing improvements.
a) Interior Streets: Minimum of 15” storm drain mains throughout development.

5. Submit hydrologic and hydraulic calculations (H&H) for any proposed storm drain system and submit with the grading plan for review and approval by the City Engineer. Form of H&H calculations shall be approved by the City Engineer prior to submittal.

6. Install concrete masonry block walls in accordance with City Standards, with a minimum height of 6 feet (unless otherwise noted below), and of a design and color approved by the City of Kerman Planning Division at the following locations:
a) Madera Avenue: Minimum 7’ wall along the development frontage. b) Isabella Avenue: Back of lots 85 to 93 and 136 to 145. c) Neighborhood Park: South side abutting single family residential lots. d) Paseos: Abutting single family residential lots.
e) Northern subdivision limits.
f) Southern subdivision limits.

Masonry block walls that retain more than 12” and/or are taller than 6 feet shall be designed by a registered civil engineer.

7. Show grade differentials between lots and adjacent properties and address in conformance with City Standards. Any retaining walls required shall be masonry construction. All retaining walls shall be designed by a registered civil engineer.

8. Submit a copy of Storm Water Pollution Prevention Plan with Notice of Intent, or Construction Rainfall Erosivity Waiver, if applicable, prior to issuance of Grading Permit.

The City is not a designated MS4 area and is regulated under the Construction General Permit Order 2022-0057-DWQ (CGP). Comply with all requirements of the NPDES General Permit, if applicable. Plans for these requirements shall be included in the construction plan set and shall be submitted to and approved by the City Engineer.

9. Submit a copy of the San Joaquin Valley Air Pollution Control District (SJVAPCD) Dust Control Plan or Construction Notification Form, if applicable, prior to issuance of a grading permit. The Project shall comply with all rules, regulations and conditions of approval imposed by the District. The applicant shall maintain a program of dust control to prevent 169
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air pollution as well as discomfort or damage to adjacent and surrounding properties. The applicant shall follow all requirements and recommendations made by the San Joaquin Valley Air Pollution Control District for dust and emission reduction.

B. Landscaping and Irrigation

1. Provide landscaping and irrigation as required herein. The landscaping and irrigation shall be installed in public right-of-way and all other areas reserved for landscaping. Plans for the required landscaping and irrigation systems shall be prepared by an appropriately qualified professional and conform to the City of Kerman Standard Drawings and Specifications, Street Median Landscape Master Plan and the California Model Water Efficiency Ordinance. A preliminary landscape plan for all public areas shall be submitted to the Community Development Department for review and approval prior to submittal of construction documents. Public landscaping and irrigation shall be installed in the following locations:
a) Madera Avenue: along the development frontage within the median island and from back of curb to masonry wall.
b) Isabella Avenue: along Lots 85 to 93 and 136 to 145 from the back of curb to the masonry wall.
c) Neighborhood Park
d) Paseos

2. Install all landscape and park improvements prior to occupancy of 50% of the total lots approved with the tentative map or final acceptance of the Phase I final map improvements, whichever occurs first. If the park improvements are not constructed on the park outlot for any reason within two (2) years of the recordation of the first final map, City shall have the right to request from surety and receive upon City’s demand sufficient funding to complete construction of the improvements for the park. The twoyear period may be extended at City’s sole discretion and upon such conditions as City shall determine.

3. Request annexation to the City’s Landscaping and Lighting District (LLD). The property owner acknowledges and agrees that such request serves as a petition pursuant to California State Proposition 218 and no further election will be required for the establishment of the initial assessment. The assessment for each lot must be obtained from the City for the tax year following the recordation of the final map. The property owner shall consent to the first-year assessment and annual increases per the provisions of the LLD. The property owner/applicant shall notify all potential lot buyers before they actually purchase a lot that this tract is a part of a LLD. Said notification shall be in a manner approved by the City. The property owner/applicant shall supply all necessary assessment diagrams and other pertinent materials for the LLD. 170
Section 6, Item A.

4. Contact and comply with all requirements of the Fresno Irrigation District (FID). This may include, but not be limited to, dedicating easements, piping or relocating any existing FID canals or ditches, replacing any existing irrigation piping, concrete lining or improving any existing canals, construction or reconstruction of any canals, culverts, and bridge crossings. Plans for these requirements and improvements shall be included in the previously required set of construction plans and submitted to and approved by FID prior to the release of any development permits or recording of the final map. If an FID or private irrigation line is to be abandoned, the applicant shall provide waivers from all downstream users.

5. Identify all existing onsite agricultural irrigation systems either onsite or within public rights-of-way, whether FID or privately owned prior to any construction activity on the site. Service to all downstream users of irrigation water shall be maintained at all times through preservation of existing facilities or, if the existing facilities are required to be relocated, the relocation and replacement of the existing facilities. It is the intent that downstream users not bear any burden as a result of the development. Therefore, the applicant shall bear all costs related to modification, relocation, or repair of any existing irrigation facilities resulting from or necessitated by the development. The applicant shall identify on the construction plans all existing irrigations systems and their disposition (abandonment, repair, relocation, and or piping) for approval by the City Engineer. The applicant shall consult with the FID for any additional requirements for lines to be abandoned, relocated, or piped. The applicant shall provide waivers from all users in order to abandon or modify any irrigation systems or for any service interruptions resulting from development activities.

6. Indicate on construction drawings the depth, location and type of material of any existing FID irrigation line along the proposed or existing street rights-of-way or onsite. Any existing canals or ditches shall be piped. The material of the existing pipe shall be upgraded to the proper class of rubber gasket pipe at all locations unless otherwise approved by the City Engineer.

3. Other Agency and Department Conditions
Refer to Staff Report Attachment ‘E’, Other Agency/Department Comments A. Caltrans

1. State Route 145 and W Isabella Avenue: The Intersection Safety and Operational Assessment Process (ISOAP) is required to evaluate proposed traffic control and design geometrics for intersections and other access improvements proposed on the State Highway System. ISOAP refers to a data driven, performance-based framework incorporating the Safe System Approach to screen intersection strategies and identify optimal solutions for new or improved intersections that considers all users.

2. State Route 180 and State Route 145 Intersections: Locations with right-turn-only lanes should provide a minimum 4-foot width for bicycle use between the right-turn and 171
Section 6, Item A.
through lane when bikes are permitted, except where posted speed is greater than 40 miles per hour, the minimum width should be 6 feet.

3. Frontage improvements (lane configuration (including bike lane), shoulder, curb, gutter, sidewalk (six-foot minimum), roadway lighting, etc.) along this portion of SR 145 should match the southbound roadway proposed configuration, to be completed by Caltrans oversight project 06-1E060 (Contact Caltrans Project Manager, Ilda Thanes, 559.944.7894).

A. Fresno County, Public Health, Environmental Health

1. All water wells and/or septic systems that exist or have been abandoned within the project area shall be properly destroyed by an appropriately licensed contractor.

2. Should any underground storage tank(s) be found during the project, the applicant shall apply for and secure an Underground Storage Tank Removal Permit from the Fresno County Department of Public Health, Environmental Health Division. Contact the Fresno County Hazmat Compliance Program at (559) 600-3271 for more information.

3. Should the structure(s) have an active rodent or insect infestation, the infestation shall be abated prior to demolition of the structure(s) in order to prevent the spread of vectors to adjacent properties.

4. In the process of demolishing the existing structure(s), the contractor may encounter asbestos containing construction materials and materials coated with lead-based paints.

If asbestos containing materials are encountered, contact the San Joaquin Valley Air Pollution Control District at (559) 230-6000 for more information on remediation.

5. If the structure(s) were constructed prior to 1979 or if lead-based paint is suspected to have been used in the structure, then prior to remodel work the contractor shall contact the following agencies for current regulations and requirements:
a. California Department of Public Health, Childhood Lead Poisoning Prevention Branch, at (510) 620-5600.
b. United States Environmental Protection Agency, Region 9, at (415) 947-8000. c. State of California, Industrial Relations Department, Division of Occupational Safety and Health, Consultation Service (CAL-OSHA) at (559) 454-5302.

B. Fresno Irrigation District (FID)

1. FID’s Houghton West No. 94 canal runs westerly along the north edge of the Project and crosses Madera Avena. Should this project include any street and/or utility improvements along Madera Avenue or in the vicinity of this facility, FID requires it review and approve all plans.
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2. For developed/urban areas FID requires that Engineer/Land Surveyors use the inside top hinge of the canal to define the edge of FID’s right-of-way such that FID has a minimum of 20-feet wide right-of-way along the top of bank to be built out full width, clear of obstructions, structures, vegetation, etc. to provide clear passage and full width at all points along the canal bank. There are no minimum or suggested numbers of survey shots to take, but there must be enough survey points such that the top inside hinge of the canal bank is properly identified. Before finalizing plans, the Engineer/Land Surveyor will need to stake both the inside top hinge and the right-of-way/property for FID Staff to field evaluate an adequate width. FID staff must field verify the right-of way/ property boundary and the hinge line edge before signing plans to ensure that there are enough survey points to properly define the canal. The canal right-of-way line should be consistent with adjacent properties so long as the 20 feet minimum width and right-of way requirements are met.

3. All trees and unauthorized enc encroachments will need to be removed from within FID's 20-feet wide drive bank.

4. Typically, for any type of development that impacts a large open canal or is adjacent to one such as the Houghton West Canal, FID requires the developer to improve the canal with either concrete lining, encasing the canal in a box culvert, or other approved means to protect the canal's integrity for an urban setting. FID does not have sufficient information to determine what kind of improvements will ultimately be required as part of the development. The engineers working on the project and FID's engineering staff must meet to discuss specific requirements as discussed below. In order to meet the "urban" standards for the canal, FID will require the following minimum conditions:
a. Channel Stabilization: The proposed plan does not indicate any improvements to the Canal or drive bank. If the City must come up with an acceptable means to protect the Canal's integrity. FID proposes the following:
i. Freeboard - FID typically requires between 1.0 to 1.5 feet of freeboard. Because the Canal is used to route stormwaters and is one of the larger canals used to convey the stormwater, FID will require 2.0 feet of freeboard. The City will be required to either import or export material to match FID's standards. ii. Maintenance - this reach of Canal does have a history of high loads of sediment deposits which requires periodic dredging. FID will typically dredge the Canal and deposit the spoils on top of the banks to dry out. Once the spoil has dried, FID will flatten the spoil as time permits. This reach of Canal also has large volumes of trash, debris, shopping carts that are deposited into the Canal. FID's crews will typically remove the trash at bridge crossings, and another crew will come by to remove the trash. The hauling off of this material may occur several weeks after the trash has been placed on the side of the canal, and the trash may be 173
Section 6, Item A.
considered a nuisance (sight and smell). If the City requires a different level of maintenance effort, they will need to enter into an agreement for that purpose.

The City will be responsible to fund the "higher level" of maintenance. b. Drive banks/maintenance roads and encroachments (both banks):
i. All impacted drive banks must be sloped a minimum of 2%, maximum of 4% away from the canal with provisions made for rainfall. Drainage will not be accepted into the Canal and must be routed away from FID property/drive banks. Runoff must be conveyed to nearby public streets or drainage system by drainage swales or other FID acceptable alternatives.
ii. Any drainage systems or swales proposed must be located outside FID's property/easement.
iii. Drive banks shall be built out to the required freeboard and elevation for the full width of the required Canal right-of-way width.
iv. All drive banks shall be overlaid with 3 inches of virgin/non-recycled Class II aggregate base for all-weather access and for dust suppression. v. Encroachments - All existing trees, bushes, debris, fencing, and other structures must be removed within FID's property/easement.

5. Trail - As with other developments with trails proposed along FID canals, FID will not allow the trail to encroach/overlap FlD's canal easement unless consistent with a Master Trails Agreement. The following requirements are intended for trail projects adjacent to FID-owned properties and right-of-ways for open canals:
a. FID will not allow the trail easement to be in common use with FID-owned property or easements.
b. FID requires all trail improvements be placed outside of FID-owned properties and easements.
c. FID will not allow any portion of a tree canopy to encroach within its properties or easements.
d. FID’s canals will not accept any drainage from the trail or the canal bank. e. FID may require some improvements be made to the canal depending on the existing canal condition, the proposed trail, and the adjacent development. 174
Section 6, Item A.

6. Canal Access - FID will continue to access the Canal from Madera Avenue. In order to access the maintenance road with our larger equipment, FID requires a drive approach wide enough to accommodate the equipment. FID requires a 50-feet wide drive approach narrowing to a 20 feet wide drive bank. The 50-foot width is defined as starting from the end portion of the bridge/railing outward (away from the bridge). Every road and canal intersection is different and therefore each access will be different. The major factors affecting the proposed width will be angle of the road intersecting the Canal, grade of canal bank vs. City road, median vs. no median, etc.

7. Any existing bridge guard railings should be modified to meet current design with a concrete headwall and chain-link barrier of the wingwalls.

8. FID's active Whitmore No. 346 traverses the Annexation Area and crosses Madera Avenue as the Private Whitmore No. 346 approximately 150 feet north of the Tract 6509 development, as shown on the attached FID exhibit map. Should this project include any street and/or utility improvements along Madera Avenue or in the vicinity of these facilities, FID must review and approve all plans. FID records indicate the private section of the Whitmore No. 346 is active and should be treated as such.

9. FID requires its review and approval of all improvement plans which affect its property/easements and canal/pipeline facilities including but not limited to Sewer, Water, Storm drain, Street, Landscaping, Dry Utilities, and all other utilities.

10. FID requires the Applicant/Developer to submit for FlD's approval a grading and drainage plan which shows that the proposed development will not endanger the structural integrity of the Pipeline or result in drainage patterns that could adversely affect FID.

11. All existing trees, bushes, debris, old canal structures, pumps, canal gates, and other nonor in-active FID and private structures must be removed within FID's property/easement and the development project limits.

12. FID does not allow FID owned property or easements to be in common use with public utility and/or road easements and right-of-ways but will in certain instances allow for its property to be in common use with landscape easements if the City of Kerman enters into the appropriate agreement.

13. FID requires its easements be shown on all maps/plans with proper recording information, and that FID be made a party to signing all final maps/plans.

14. Footings of retaining walls shall not encroach onto FID property/easement areas.

15. Trees will not be permitted within FID's property/easement areas.

16. FID requires its easements be shown on all plans with proper recording information. 175
Section 6, Item A.

17. No large earthmoving equipment (paddle wheel scrapers, graders, excavators, etc.) will be allowed within Fl D's easement and the grading contractor will be responsible for the repair of all damage to the existing pipeline caused by contractors grading activities.

18. FID is concerned about the potential vibrations caused by construction efforts near existing District facilities as it may cause damage to FID's canals, pipelines and culverts.

The developer and contractor(s) must keep all large equipment, construction material, and soil stockpile outside of FID's easement and a minimum of 30 feet away from existing cast-in-place concrete pipe. The developer and/or its contractor(s) will be responsible for all damages caused by construction activities.

B. Fresno Local Agency Formation Commission (LAFCo)

1. The applicant will be required to submit the appropriate application materials including fees to LAFCo for reorganization. These materials are enumerated on LAFCo’s website (www.fresnolafco.org) through the Applications and Documents tab under “Items Necessary for a Complete Application”. The current fee schedule for changes of organization/reorganization (annexation) of 81-160 acres is $14,400.

2. Annexation of full rights of way contiguous to parcel boundaries should be presumed in the reorganization’s legal description and map.

C. Kerman Unified School District (KUSD)

1. Pay applicable school fees at the rate in effect at the time of collection. School fees shall be paid prior to issuance of building permits and proof of such payment shall be submitted to the City of Kerman Building Division.

D. Mid Valley Disposal

1. Each single-family unit shall require three (3) carts, which must be stored in the garage or elsewhere on the property out of public view until service day.

E. North Central Fire Protection District (NCFPD)

1. Comply with all requirements of the North Central Fire Protection District.

2. Provide all weather access to the development prior to the delivery of combustible material to the site and maintain during all phases of construction to the satisfaction of NCFPD. Alternative or phased fire access requires prior approval by NCFPD. 176
Section 6, Item A.

3. Until such time that a second permanent vehicular access point is established, provide an emergency vehicle access point at a location acceptable to NCFPD.

F. PG&E

1. The final map shall contain a statement setting forth dedications and offers to dedicate interests in real property for public utility purposes. If the offer of dedication has terminated, or the City declines to accept it, the applicant/developer may be required to provide an easement in gross satisfactory to PG&E. The following language is recommended to be expressly stated for the offer to dedicate Public Utility Easements (PUEs):

I/We the undersigned, as Owner(s) of the land shown hereon, do hereby state that I/we am/are the only person(s) whose consent is necessary to pass clear title to said land and do hereby consent to the preparation and recordation of this map and offer for dedication and do hereby dedicate for public uses the Public Utility Easements (PUEs) shown on this map for public utility purposes including electric, gas, communication facilities and all other public utility purposes; together with any and all appurtenances thereto, including the right from time to time to trim and to cut down and clear away or otherwise control any trees or brush. The PUEs hereby offered for dedication are to be kept open and free of buildings, structures and wells of any kind.

G. San Joaquin Valley Air Pollution Control District (SJVAPCD)

1. Prior to issuance of grading permits or commencement of construction activities, whichever comes first, the applicant/developer shall provide the City with evidence from the San Joaquin Valley Air Pollution Control District of an approved Dust Control Plan or Construction Notification form under Regulation VIII – Fugitive Dust PM10 Prohibitions.

The development may be subject to other rules including, but not limited to, Rule 8021 (Construction, Demolition, Excavation, Extraction, and Other Earthmoving Activities), Rule 4601 (Architectural Coatings), and Rule 4641 (Cutback, Slow Cure, and Emulsified Asphalt, Paving and Maintenance Operations). The applicant/developer will be required to carry out measures of applicable SJVAPCD Rules and Regulations as noted in their comment letter dated August 20, 2025.
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Section 6, Item A.

Atachment ‘J’
RESOLUTION NO. 26-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN INITIATING ANNEXATION OF FIVE PARCELS IDENTIFIED AS ASSESSOR’S PARCEL NUMBERS 025-130-48, 025-130-47, 025- 130-60S, 020-120-11, 020-120-17S TOTALING APPROXIMATELY 88.93 ACRES AND ADJACENT

RIGHT-OF-WAY FROM THE COUNTY OF FRESNO INTO THE KERMAN CITY LIMITS, AND DETACH

THE ANNEXATION AREA FROM THE KINGS RIVER CONSERVATION DISTRICT, LOCATED

BETWEEN WEST NIELSEN AVENUE, NORTH DEL NORTE AVENUE, WEST WHITESBRIDGE ROAD (STATE ROUTE 180), AND NORTH VINELAND AVENUE (ANX 2025-01) WHEREAS, an application was filed by North Kerman, LLC, proposing Annexation (ANX) 2025-01, General Plan Amendment (GPA) 2025-01, Pre-zone/Rezone (REZ) 2025-01, Vesting Tentative Subdivision Map (TSM) 2025-01, and Environmental Assessment (ENV 2025-02) pertaining to five (5) parcels identified as Assessor’s Parcel Numbers (APNs) 025-130-48, 025- 130-47, 025-130-60S, 020-120-11, 020-120-17S, totaling approximately 88.93 acres, generally bound to the north by West Nielsen Avenue, to the west by North Del Norte Avenue, to the south by West Whitesbridge Road (State Route 180), and to the east by North Vineland Avenue; and WHEREAS, ANX 2025-01 pertains to the approximately 88.93-acre project area (APNs 025- 130-48, 025-130-47, 025-130-60S, 020-120-11, 020-120-17S) and adjacent right-of-way (“annexation area” or “affected territory”) as set forth in Exhibit ‘1’ attached hereto and by this reference incorporated herein; and
WHEREAS, the City of Kerman desires to initiate proceedings, pursuant to the CorteseKnox-Hertzberg Local Government Reorganization Act of 2000, Division 3, commencing with Section 56000 of the California Government Code; and
WHEREAS, Government Code section 56654 provides that “[a] proposal for a change of organization or a reorganization may be made by the adoption of a resolution of application by the legislative body of an affected local agency . . . [;]” and WHEREAS, the specific changes of organization requested consists of an annexation into the City of Kerman and detachment from the County of Fresno and the Kings River Conservation District of the annexation area; and
WHEREAS, the affected territory proposed to be changed is inhabited, and on this day contains 8 registered voters, according to information received from the County Elections Office; and
WHEREAS, the proposed annexation area is inside the Sphere of Influence of the City of Kerman and adjacent to Kerman City Limits; and
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Section 6, Item A.

WHEREAS, there are two current Williamson Act contracts, Agricultural Preserve (AP) No. 2755 and AP No. 6920, pertaining to APNs 025-130-48 and 025-130-47, with valid protests pursuant to Government Code Section 51243.5 (AP No. 2755 protest adopted February 16, 1971; AP No. 6920 protest adopted January 6, 1983), and as a result, upon annexation into Kerman City Limits, both contracts would automatically terminate without cancellation fees; and WHEREAS, the City has an agreement with the County of Fresno to comply with Revenue and Tax Code Section 99 regarding property tax revenue transfer upon annexation, which memorandum of understanding includes standards of annexations; and WHEREAS, the City does not propose any specific term and conditions for the proposed reorganization; and
WHEREAS, the reasons for this proposed annexation is to facilitate future residential and commercial development; and
WHEREAS, pursuant to the authority and criteria contained in the California Environmental Quality Act of 1970 (“CEQA”), the City, as the Lead Agency, has analyzed the proposed project, including the annexation, general plan amendment, rezone, and vesting tentative subdivision map, and has prepared an Environmental Assessment (ENV 2025-02) (“IS/MND”) to evaluate the proposed Project and the project is in compliance with CEQA; and WHEREAS, public notice of this public hearing was given by mailed and published notice, in accordance with the applicable State and Municipal Codes and standard practices; and WHEREAS, the Planning Commission completed its review of the Staff Report and documents submitted for the proposed project at a regular meeting on March 9, 2026, and adopted a resolution with a recommendation to the City Council to initiate ANX 2025-01; and WHEREAS, all prerequisites for the initiation of proceedings, pursuant to the CorteseKnox-Hertzberg Local Government Reorganization Act of 2000, have been met; and WHEREAS, after due consideration of all the items before it, the City Council now desires to adopt this Resolution to initiate annexation proceedings for the affected territory as set forth in Exhibit ‘1’.

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

1. Recitals. The City Council hereby finds that all of the facts set forth in the recitals above are true and correct and incorporated herein.

2. CEQA. The City Council previously adopted the Mitigated Negative Declaration (MND) (ENV 2025-02) for the project on April 22, 2026. The IS/MND identified ANX 2025-01. ANX 2025-01 does not change the environmental assessment of the IS/MND. Further, the City 179
Section 6, Item A.

Council certified the IS/MND for this project. The City Council further finds that no subsequent review is required under CEQA Guidelines section 15162 as since that time no substantial changes have been proposed in the project which will require major revisions of the IS/MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects.

Likewise, no substantial changes have occurred since that time with respect to the circumstances under which the project is undertaken which will require major revisions of the IS/MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. There is also no new information, which was not known and could not have been known at the time of the recommendation for certification that the project will have significant effect not discussed in the IS/MND. As such, the City Council finds ANX 2025-01 has already been fully assessed in accordance with CEQA, no subsequent review is required under CEQA Guidelines section 15162, and no further action or review is required under CEQA.

3. General Plan Consistency. The City Council finds that the annexation is consistent with the goals, objectives, and policies of the City of Kerman 2040 General Plan, as amended by GPA 2025-01. In this regard, the City Council finds that public necessity, convenience, general welfare, or good zoning practices justify annexation of the project site.

Specifically, the annexation and pre-zoning change is consistent with the General Plan goals and policies, any operative plan, or adopted policy including LU-3.2 Urban Form; LU3.3 Prevent Sprawl Development; and LU-3.4 Leapfrog Development within SOI as described below and implements the planned residential and commercial land uses for the project site.
a. General Plan Policy LU-3.2 Urban Form: The project site is outside City limits but is within the City’s Sphere of Influence. The project requires annexation and therefore would result in a change in City limits. The project proposed would meet the considerations of General Plan Policy LU-3.2 Urban Form. Specifically, the project would facilitate future residential units which would help meet the city’s residential housing needs such as affordable housing or a desire for a wider and more diverse range of housing. The project would not result in obstacles to growth because future development would be able to connect to City services. The project would result in infrastructure improvements, including roadway and circulation improvements. Lastly, the project would facilitate future commercial uses which would serve the city’s economic development needs. Based on these considerations, the project as proposed maintains growth management controls and is consistent with General Plan Policy LU-3.2.
b. General Plan Policy LU-3.3 Prevent Sprawl Development: The project site is contiguous to existing and approved development within City Limits. Thus, the project does not encourage sprawl and is therefore consistent with General Plan Policy LU-3-3.
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Section 6, Item A.
c. General Plan Policy LU-3.4 Leapfrog Development: The project site is contiguous to existing urban development and thus would not constitute leapfrog development.

4. Findings for Annexation. The City Council finds, as follows:
a. The proposed annexation is within the City’s adopted Sphere of Influence. The project site is outside City limits but is within the City’s Sphere of Influence. The project requires annexation and therefore would result in a change in City limits.

The project as proposed would meet the considerations of General Plan Policy LU3.2 Urban Form, which sets the City’s growth management control measures.

Specifically, the project would facilitate future residential units which would help meet the city’s residential housing needs such as affordable housing or a desire for a wider and more diverse range of housing. The project would also result in

1.22 acres of parkland and paseos meeting community needs. The project would not result in obstacles to growth because future development would be able to connect to City services. The project would also result in infrastructure improvements, including roadway and circulation improvements. Lastly, the project would facilitate future commercial uses which would serve the city’s economic development needs. Based on these considerations, the project as proposed maintains growth management controls and is consistent with General Plan Policy LU-3.2.
b. The proposal must be consistent with city general and specific plans, including adopted goals and policies. The project would facilitate future residential and commercial development within an area with existing and planned residential, commercial, and schools/public institutional uses. Through compliance with applicable development standards, environmental mitigation measures, and conditions of approval, the project as proposed is consistent with General Plan Policies LU-1.4 (Limit Residential Development Along Highways), LU-1.6 (Agricultural Buffers), LU-2.3 (Neighborhood Atmosphere), LU-3.2 (Urban Form), LU-3.3 (Prevent Sprawl Development), LU-3.4 (Leapfrog Development), LU-4.1 (Agricultural Land Preservation), LU-4.4 (Opposition to Projects within SOI), LU-4.5 (Right-to-Farm Disclosure), and LU-5.5 (Placement of New Residential Uses).

There are no specific plans applicable to the proposed project. c. Pursuant to CEQA, the proposal must mitigate any significant adverse effect on continuing agricultural operations on adjacent properties, to the extent reasonable and consistent with the applicable general and specific plan. Pursuant to the authority and criteria contained in the California Environmental Quality Act of 1970 (“CEQA”), the City, as the Lead Agency, has analyzed the proposed project, including the annexation, general plan amendment, rezone, and vesting tentative subdivision map, and has prepared an Environmental Assessment (ENV 2025-02) to evaluate the proposed Project. It was determined that all impacts were either 181
Section 6, Item A.
less than significant or could be mitigated to a less than significant level through the Mitigation Monitoring and Reporting Program.
d. At least 25% of the area proposed for annexation has an approved Vesting Tentative Subdivision Map(s) (single-family residential) and an approved site plan (for uses besides single-family). The proposed annexation would meet this condition whereby at least 25% of the proposed annexation area will include an approved tentative map for single-family use.
e. The annexation is to fulfill the city’s Regional Housing Needs Allocation (RHNA) obligation which otherwise cannot be accommodated on lands currently within the city’s incorporated boundary. The project would facilitate future residential uses which would assist the City with fulfilling the city’s RHNA obligation within the City’s 6th Cycle Housing Element Update.
f. The proposal would not create islands. Boundaries must ultimately minimize creation of peninsulas and corridors, or other distortion of boundaries. The proposed annexation area would not create islands. New boundaries would not create any peninsulas or corridors.

5. Approval of Initiation of Reorganization. Based on the information provided above, the City Council of the City of Kerman approves a resolution to initiate annexation of the annexation area as set forth in Exhibit ‘1’ in the manner provided by the Cortese-KnoxHertzberg Local Government Reorganization Act of 2000. The City Council authorizes and directs the City Manager to take all necessary steps to effectuate and initiate such reorganization proceedings, and to support Developer’s processing of the same at Developer’s sole cost and expense.

6. Effective Date of Resolution. This Resolution shall become effective immediately after the City Council approves of REZ 2025-01 and said ordinance adopting the same then becomes effective. If said ordinance does not become effective within 65 days of the adoption of this Resolution, or the ordinance is not otherwise adopted by the City Council, then ANX 2025-01 shall be returned to the City Council for further consideration and a final decision.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regularly scheduled meeting held on the 22nd day of April 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
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Section 6, Item A.

The foregoing resolution is hereby approved.
______________________________
Maria Pacheco
Mayor
ATTEST:
____________________________
Dalia Santana-Zamudio
Deputy City Clerk
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Section 6, Item A.

Exhibit ‘1’
Annexation Boundary for ANX 2025-01
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Section 6, Item A.

STAFF REPORT
MEETING DATE: April 22, 2026
PRESENTER: Josefina Alvarez, Finance Director
SUBJECT: Presentation of the City of Kerman 2024/2025 Auditor’s Report and Financial Statements (JA)
RECOMMENDATION: Council accept the City of Kerman 2024/2025 Auditor’s Report and Financial Statements as presented.

EXECUTIVE SUMMARY:

The City’s independent auditor, Bryant L. Jolley, CPA has completed and submitted the audited financial statements for the year ended June 30, 2025. The purpose of the audit is to determine that the financial statements are free of material misstatement and are fairly presented in accordance with the Generally Accepted Accounting Principles (GAAP) in the United States. A copy of the audited financial statements was enclosed with your agenda. Ryan P. Jolley will present the audited financial statements to the City Council.

Staff is pleased to report that the audited financial statements did not contain any negative notes or audit findings raised by the auditors. Below are some highlights, additional information can be found on page 4 through 12 of the audited financial statements.

Government-wide the City’s net position increased by $8,980,838 over Fiscal Year ending June 30, 2025.

Government Wide (Government and Proprietary Funds) Statement of Revenues, Expenses and Changes in Net Position
2024 2025
Operating Revenues $ 27,581,200 $ 31,146,467
Operating Expenses $19,553,427 $22,165,629
Increase in Net Position $ 8,027,773 $8,980,838
Net Position, Beginning of Year $75,122,056 $83,149,829 Net Position, End of Year $ 83,149,829 $ 92,130,667
Government-wide operating revenues for 2025 increased by $3,565,267 and operating expenses increased by $2,612,202 for a change in Net Position of $8,980,838 for Fiscal Year ending 2025 (page 5).
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Section 7, Item A.

Government-wide cash and investments is $32,602,325, which is a decrease of $1,383,676 compared to June 30, 2024 (page 22).

The General Fund has a Reserve Balance of $16,276,654 as of June 30, 2025. This is an increase of $701,480 or 4.50%.

The chart below illustrates the General Fund Growth Reserves for five fiscal years.

The City Council adopted a reserve policy by resolution on September 17, 2014, for the purpose of establishing a target and minimum level of unreserved fund balance in the General Fund to protect against unanticipated circumstances and events resulting in revenue shortfalls or unexpected expenditures.

Reserve Category Purpose Minimum Reserve
Emergency Reserve Cover an emergency,
unanticipated expense or cash
flow needs
22% of operating expenditures
or $3,088,960
Revenue Stability Reserve Cover any unanticipated drop in sales or property tax revenues
13% of operating expenditures
or $1,853,376
Major Asset Repair and
Replacement Reserve
Cover any repairs and
replacement of major facilities
and equipment
13% for repairs and 9% for
replacement of operating
expenditures or $1,853,376
Undesignated Reserve Cover any discretionary
expenditures approved by the
Council
Any amount remaining after
meeting minimum reserves or
$9,480,943
The Change in Fund Net Position for the Proprietary Funds increased a net of $2,163,988 (before transfers) with water at $1,129,423, sewer at $645,430, disposal at $313,438 and storm drain at $75,697 and $1,918,204 (with transfers) with water at $1,053,325, sewer at $561,834, disposal at $231,128 and storm drain at $71,917 (page 11).
1,749,550.00
1,785,768.00
3,705,542.00
1,673,395.00
701,480.00
-
500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,500,000.00
3,000,000.00
3,500,000.00
4,000,000.00
2021 2022 2023 2024 2025

GENERAL FUND GROWTH/DECREASE
FOR 5 FISCAL YEARS
186
Section 7, Item A.

FISCAL IMPACT:

The presentation of the City of Kerman 2024/2025 Audited Financial Statements does not have a financial impact on the City, but it does report the results from operations in the Fiscal Year 2024/2025, with an increase of $701,480 or 4.50% of General Fund Reserves.

ATTACHMENTS:

A. Auditor’s Report and Financial Statements
B. Management Report
187
Section 7, Item A.

CITY OF KERMAN
INDEPENDENT AUDITOR’S REPORT
AND

FINANCIAL STATEMENTS
JUNE 30, 2025
Attachment 'A'
188
Section 7, Item A.

TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT 1 – 3
BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet – Governmental Funds 6
Reconciliation of Total Governmental Fund Balance to
Net Position of Governmental Activities 7
Statement of Revenue, Expenditures and Changes in
Fund Balance – Governmental Funds 8
Reconciliation of Statement of Revenue, Expenditures
and Changes in Fund Balance of Governmental Funds
to the Statement of Activities 9
Statement of Net Position – Proprietary Funds 10
Statement of Revenue, Expenses and Changes in Fund Net
Position - Proprietary Funds 11
Statement of Cash Flows – Proprietary Funds 12
Statement of Fiduciary Net Position 13
Statement of Changes to Fiduciary Net Position 14
Notes to Basic Financial Statements 15 – 42
189
Section 7, Item A.

TABLE OF CONTENTS (Continued)
Page
Required Supplementary Information
Budgetary Comparison Schedule – General Fund 43
Budgetary Comparison Schedule – Street Maintenance and Construction Fund 44 Budgetary Comparison Schedule – Fire Facility Fund 45
Schedule of the City’s Proportionate Share of Net Pension Liability 46 Schedule of Contributions 47
Supplemental Only Information
Combining Balance Sheet – Nonmajor Governmental Funds 48 – 50 Combining Statement of Revenue, Expenditures and
Changes in Fund Balance – Nonmajor Governmental Funds 51 – 53 COMPLIANCE SECTION:

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 54 – 55 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR

PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY UNIFORM GUIDANCE 56 – 58
Schedule of Expenditures of Federal Awards 59
Notes to the Schedule of Expenditures of Federal Awards 60 Schedule of Findings and Questioned Costs 61
Status of Prior Audit Findings and Questioned Costs 62
190
Section 7, Item A.

BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley, C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Kerman, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, , each major fund, and the aggregate remaining fund information of the City of Kerman (the “City”), California as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 191
Section 7, Item A.
2 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 43-45, the schedule of the City’s proportionate share of net pension liability on page 46, and the schedule of contributions on pages 47 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic 192
Section 7, Item A.
3 financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 16, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

April 16, 2026
193
Section 7, Item A.

See accompanying notes. 4

CITY OF KERMAN

STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 18,197,440 $ 13,534,127 $ 31,731,567 $ Accounts receivable, net 22,401 651,043 673,444
Prepaids 3,875 - 3,875
Taxes receivable 1,260,684 - 1,260,684
Due from other governments 6,780,575 - 6,780,575
Interest receivable 204,603 - 204,603
Lease receivable 465,898 - 465,898
Internal balances (250,909) 250,909 -
Capital assets, net of allowance
for depreciation 17,530,616 48,273,623 65,804,239
Total assets 31,966,695 74,958,190 106,924,885
DEFERRED OUTFLOWS OF RESOURCES 503,848 1,979,382 2,483,230 Total deferred outflows of resources 503,848 1,979,382 2,483,230

LIABILITIES
Accounts payable and accrued expense 4,176,476 1,213,413 5,389,889 Accrued interest payable 15,376 13,965 29,341
Deposits payable 5,200 156,940 162,140
Unearned revenues 6,904 - 6,904
Long-term liabilities
Due within one year 180,000 423,123 603,123
Due in more than one year 2,479,000 1,933,850 4,412,850 Compensated absences 549,894 203,697 753,591
Net pension liability 4,184,861 1,065,247 5,250,108
Total liabilities 11,597,711 16,607,946 5,010,235
DEFERRED INFLOWS OF RESOURCES 49,658 619,844 669,502
Total deferred inflows of resources 49,658 619,844 669,502

NET POSITION
Net investment in capital assets 45,614,623 15,173,643 60,788,266 Restricted for specific projects and programs 7,371,679 - 7,371,679 Restricted for capital improvements - 3,774,591 3,774,591 Unrestricted 8,462,416 11,733,715 20,196,131
Total net position $ 27,410,650 64,720,017 $ 92,130,667 $ 194
Section 7, Item A.

See accompanying notes. 5
CITY OF KERMANSTATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2025 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
General government 2,898,415 $ - $ $ 62,167 $ - $ (2,836,248) $ - $ (2,836,248) Public works 3,821,659 - 4,853,447 814,178 1,845,966 - 1,845,966 Community development 1,508,082 1,034,338 9,965 1,931,887 1,468,108 - 1,468,108 Social services 1,179,375 37,657 357,113 - (784,605) - (784,605) Public safety 5,840,524 315,894 266,674 - (5,257,956) - (5,257,956) Debt Service
Interest and fiscal charges 62,465 - - - (62,465) - (62,465) Total governmental activities 1,387,889 15,310,520 5,549,366 2,746,065 (5,627,200) - (5,627,200) Business-type activities
Water 2,472,115 3,391,144 - 209,362 - 1,128,391 1,128,391Sewer 2,062,956 2,377,069 - 274,542 - 588,655 588,655 Disposal 2,162,940 2,338,463 5,000 - - 180,523 180,523
Storm Drain 117,491 157,098 - - 117,135 77,528 77,528
Total business-type activities 8,224,167 6,855,109 5,000 601,039 - 1,975,097 1,975,097 Total primary government $ 9,612,056 22,165,629 $ 5,554,366 $ 3,347,104 $ (5,627,200) 1,975,097 (3,652,103) General Revenue
Property taxes 4,000,045 - 4,000,045 Special assessments 425,931 - 425,931Sales taxes 6,019,884 - 6,019,884 Franchise and other taxes 221,465 - 221,465Business licenses 134,010 - 134,010Rents 454,000 5,656 459,656 Interest income/(unrealized gain on investments) 721,513 420,231 1,141,744 Other 181,137 49,069 230,206 Transfers 452,311 (452,311) - Total general revenue and transfers 22,645 12,610,296 12,632,941 Change in Net Position 6,983,096 1,997,742 8,980,838Net Position Beginning of year, previously presented 57,736,921 25,412,908 83,149,829 Beginning of year, restated 57,736,921 25,412,908 83,149,829 End of year $ 27,410,650 64,720,017 $ 92,130,667 $
Functions/Programs
Net Revenue/(Expense) and
Program Revenue Changes in Net Position
195
Section 7, Item A.

See accompanying notes. 6
CITY OF KERMAN BALANCE SHEET – GOVERNMENTAL FUNDS JUNE 30, 2025 Formerly NonMajor Formerly Major Formerly Major
Street Other Total
Maintenance and State Fire Local Gas Governmental Governmental General Construction Grants Facility Transportation Tax Funds Funds ASSETS
Cash and investments $ 12,827,833 $ 930,040 $ - $ 824,596 $ - $ - $ 3,614,971 $ 18,197,440 Accounts receivable 17,229 - - - - - - 17,229 Taxes receivable 1,260,684 - - - - - - 1,260,684 Lease receivable 465,898 - - - - - - 465,898
Prepaids 3,875 - - - - - - 3,875
Due from other governments 126,042 1,291,157 3,358,897 - - - 2,004,479 6,780,575 Interest receivable 204,603 - - - - - - 204,603
Due from other funds - 3,066,497 - - - - - 3,066,497
Total assets 2,221,197 17,972,661 3,358,897 824,596 - - 29,996,801 5,619,450

LIABILITIES
Accounts payable and accrued expense 1,259,145 $ 371,972 $ 1,403,259 $ 813,689 $ - $ - 124,904 3,972,969Due to other funds - - 1,914,834 - - - 23,803 1,938,637 Deposits and other liabilities 5,200 - - - - - - 5,200
Unearned revenues 6,904 - - - - - - 6,904
Total liabilities 371,972 1,271,249 3,318,093 813,689 - - 5,923,710 148,707

DEFERRED INFLOWS OF RESOURCES
Deferred right to use lease revenue 424,758 - - - - - - 424,758 Total deferred inflows of resources - 424,758 - - - - - 424,758

FUND BALANCE
Restricted
Circulation improvements - 1,849,225 - - - - 4,730,902 6,580,127Development activities - - 40,804 10,907 - - 739,841 791,552 Committed
Unfunded liability 100,000 - - - - - - 100,000
Emergency reserve 3,088,960 - - - - - - 3,088,960
Revenue stability reserve 1,853,376 - - - - - - 1,853,376 Major asset repair and replacement reserve 1,853,376 - - - - - - 1,853,376 Unassigned - 9,380,943 - - - - - 9,380,943
Total fund balance 16,276,654 1,849,225 40,804 10,907 - - 5,470,743 23,648,333 Total liabilities, deferred inflows of resources and fund balance $ 2,221,197 17,972,661 $ 3,358,897 $ 824,596 $ - $ - $ $ 29,996,801 5,619,450 $ Capital Project Funds Special Revenue Fund
196
Section 7, Item A.

See accompanying notes. 7

CITY OF KERMAN

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION

OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2025
Total governmental fund balance $ 23,648,333
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds 46,613,172 Net pension liability applicable to governmental activities are not due and payable in the current period and accordingly is not reported in the funds (4,184,861)
Deferred outflows of resources related to net pension liability, represent an consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until that time 1,979,382 Deferred inflows of resources related to net pension liability and lease income, represent an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time (195,086) Governmental long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds (2,659,000) Compensated absences are not due and payable in the current period and therefore are not reported in the funds (549,894) Interest on long-term debt is reported as an expenditure of the Governmental Funds when paid because it requires the use of current financial resources. However, accrued interest must be recorded when incurred (15,376) Internal service funds are used by management to charge the costs of fleet maintenance and computer services to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the Statement of Net Position. 83,347 Net position of governmental activities $ 64,720,017
197
Section 7, Item A.

See accompanying notes. 8
CITY OF KERMAN STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE – GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2025 Street Formerly NonMajor Formerly Major Formerly Major Other Total Maintenance and State Fire Local Gas Governmental Governmental General Construction Grants Facility Transportation Tax Funds Funds Revenue
Taxes 9,711,750 $ - $ $ - $ - $ - $ - $ 896,832 $ 10,608,582 Licenses, permits and impact fees 1,227,970 - - 65,981 - 654,774 - 1,948,725 Intergovernmental 444,379 1,262,079 2,978,764 - - - 2,954,196 7,639,418 Charges for services 284,995 - - - - - 1,886 286,881Fines and forfeitures 49,769 - - - - - - 49,769Rents 126,183 - - - - - 240,467 366,650 Investment earning, net of unrealized gain/(loss) 575,336 - - 25,834 - - 115,744 716,914 Other - 112,248 - - - - 20,170 132,418
Total revenue 1,262,079 12,532,630 2,978,764 91,815 - - 21,749,357 4,884,069 Expenditures
Current
General government 1,280,817 - - - - - 1,280,817 -Public works 1,585,873 - 124,704 - - - 1,647,393 3,357,970 Community development 644,419 - - 813,689 - 50,540 - 1,508,648 Social services 891,416 - - - - - 83,618 975,034
Public safety 6,182,112 - - - - - - 6,182,112
Capital outlay 1,871,201 3,069,150 2,531,589 - - - 1,291,901 8,763,841 Debt Service
Principal - - - - - 177,000 - 177,000
Interest and fiscal charges - - - - - - 63,467 63,467
Total expenditures 3,069,150 12,455,838 2,656,293 813,689 - - 22,308,889 3,313,919 Revenue over/(under) expenditures 76,792 (1,807,071) 322,471 (721,874) - 1,570,150 - (559,532) Other Financing Sources/(Uses)
Lease revenues 91,952 - - - - - 91,952 -Transfers in/(out) - net 532,736 516 - (364,695) - - 114,861 (53,696) 516 624,688 (364,695) - - - 206,813 (53,696)
Change in Fund Balance 701,480 (1,806,555) (42,224) (721,874) - 1,516,454 - (352,719) Fund Balance
Beginning of year, as previously stated 15,575,174 3,655,780 83,028 - 1,622,404 867,937 2,196,729 24,001,052 Change within financial reporting entity (major to nonmajor) - - - (1,622,404) - (867,937) 2,490,341 - Change within financial reporting entity (nonmajor to major) - - - - 732,781 - - (732,781) Beginning of year, restated 3,655,780 15,575,174 83,028 - 732,781 - 24,001,052 3,954,289 End of year $ 1,849,225 16,276,654 $ 40,804 $ 10,907 $ - $ - $ $ 23,648,333 5,470,743 $ Capital Project Funds Special Revenue Funds
198
Section 7, Item A.

See accompanying notes. 9

CITY OF KERMAN

RECONCILIATION OF STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN

FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2025
Net change in fund balance - total governmental funds $ (352,719) Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated lives and reported as depreciation expense Capital outlay expenditures are therefore added back to fund balances 8,763,840 Depreciation expense not reported in governmental funds (957,720) 7,806,120
Repayment of long-term debt is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Proceeds of long-term debt produces the opposite effect 177,000 Pension expenses reported in the Statement of Activities do not require the use of current financial resources an, therefore are not reported as expenditures in the Governmental Funds (219,897)
Internal service funds are used by management to charge the costs of fleet maintenance and computer services to individual funds. The net revenue (loss) of certain activities of internal service funds is reported with governmental activities (381,390)
In the Statement of Activities interest is accrued on long-term debt, whereas, in governmental funds interest expenditure is reported when due 1,002
Compensated absence costs in the Statement of Activities does not require the use of current financial resources and, therefore, is not reported as expenditures in Governmental Funds (47,020) Change in net position of governmental activities 6,983,096 $ 199
Section 7, Item A.

See accompanying notes. 10
CITY OF KERMAN STATEMENT OF NET POSITION – PROPRIETARY FUNDS JUNE 30, 2025 Governmental
Total Activities
Proprietary Internal
Water Sewer Disposal Storm Drain Funds Service Fund
ASSETSCurrent assets
Cash and investments $ 8,533,749 $ 3,716,527 $ 1,065,037 $ 218,814 $ 13,534,127 $ - Accounts receivable, net 167,331 219,625 240,676 23,411 651,043 5,172 Total current assets 3,883,858 8,753,374 1,305,713 242,225 14,185,170 5,172 Non-current assets
Property, plant and equipment,
net of allowance for depreciation 7,810,219 8,715,329 5,402 999,666 17,530,616 1,660,451 Total assets 11,694,077 17,468,703 1,311,115 1,241,891 31,715,786 1,665,623 DEFERRED OUTFLOWS OF RESOURCES 191,954 224,236 68,289 19,369 503,848 - Total deferred outflows of resources 191,954 224,236 68,289 19,369 503,848 - LIABILITIESCurrent liabilities
Accounts payable and accrued expenses 971,048 63,431 159,545 19,389 1,213,413 203,507 Accrued interest payable - 13,965 - - 13,965 -
Due to other funds - - - - - 1,127,860
Deposits 156,940 - - - 156,940 -
Current portion of long-term debt - 423,123 - - 423,123 - Total current liabilities 77,396 1,551,111 159,545 19,389 1,807,441 1,331,367 Non-current liabilities
Long-term debt 71,876 1,861,974 - - 1,933,850 -Compensated absences 90,482 78,916 34,299 - 203,697 -Net pension liability 405,833 474,086 144,377 40,951 1,065,247 - Total noncurrent liabilities 2,346,723 636,444 178,676 40,951 3,202,794 - Total liabilities 2,424,119 2,187,555 338,221 60,340 5,010,235 1,331,367 DEFERRED INFLOWS OF RESOURCES 18,919 22,100 6,730 1,909 49,658 - Total deferred inflows of resources 22,100 18,919 6,730 1,909 49,658 -

NET POSITION
Net investment in capital assets 8,220,330 5,948,245 5,402 999,666 15,173,643 1,660,451 Restricted for capital improvements 2,406,787 1,100,945 - 266,859 3,774,591 -Unrestricted/(deficit) 2,393,803 4,856,167 1,029,051 (67,514) 8,211,507 (1,326,195) Total net position $ 9,442,993 15,483,284 $ 1,034,453 $ 1,199,011 $ 27,159,741 334,256 $ Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds 250,909 Net position of business-type activities $ 27,410,650
Business-Type Activities - Enterprise Funds
200
Section 7, Item A.

See accompanying notes. 11
CITY OF KERMAN STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN FUND NET POSITION – PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2025 Governmental
Total Activities
Proprietary Internal
Water Sewer Disposal Storm Drain Funds Service Fund
Operating Revenue
Charges for services 3,129,805 $ 2,359,514 $ 2,338,198 $ 111,288 $ 7,938,805 $ 960,079 $ Other revenues 88,620 124,856 120,409 6,203 340,088 22,278 Total operating income 2,448,134 3,254,661 2,458,607 117,491 8,278,893 982,357 Operating Expense
Contractual services and utilities 388,502 858,049 1,829,051 6,638 3,082,240 89,549 Personnel 985,835 837,438 266,192 86,935 2,176,400 284,438 Supplies and materials 525,128 402,599 86,465 58,654 1,072,846 624,758 Depreciation 540,381 234,125 986 14,938 790,430 417,276 Total operating expense 2,603,137 2,168,920 2,182,694 167,165 7,121,916 1,416,021 Operating income/(loss) 279,214 651,524 275,913 (49,674) 1,156,977 (433,664) Nonoperating Revenue/(Expense)
Intergovernmental - - 5,000 - 5,000 -
Development impact fees 209,362 274,542 - 117,135 601,039 - Interest income 268,537 110,933 32,525 8,236 420,231 890 Interest expense (19,259) - - - (19,259) -
Total nonoperating revenue/(expense) 366,216 477,899 37,525 125,371 1,007,011 890 Net income/(loss) before transfers 1,129,423 645,430 313,438 75,697 2,163,988 (432,774) Operating Transfers In/(Out) (76,098) (83,596) (82,310) (3,780) (245,784) 130,923 Change in Net Position 1,053,325 561,834 231,128 71,917 1,918,204 (301,851) Net Position
Beginning of year 8,881,159 14,429,959 803,325 1,127,094 25,241,537 636,107 End of year $ 9,442,993 15,483,284 $ 1,034,453 $ 1,199,011 $ 27,159,741 $ 334,256 $ Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds 79,538 Change in net position of business-type activities (Page 5) $ 1,997,742 Business-Type Activities - Enterprise Funds
201
Section 7, Item A.

See accompanying notes. 12
CITY OF KERMANSTATEMENT OF CASH FLOW - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2025 Governmental
Total Activities
Business-Type Internal
Water Sewer Disposal Storm Drain Funds Service Fund
Operating Activities
Receipts from customers and users 3,249,243 $ 2,410,062 $ 2,405,612 $ 112,505 $ 8,177,422 $ 981,160 $ Payments for contractual services and utilities (598,019) (391,290) (1,818,194) (2,663) (2,810,166) 72,411 Payments to employees (935,846) (793,363) (247,720) (84,783) (2,061,712) (284,438) Payment to suppliers (402,599) (525,128) (86,465) (58,654) (1,072,846) (624,758) Net cash provided by (used) in operating activities 822,810 1,190,250 253,233 (33,595) 2,232,698 144,375 Non-capital Financial Activities
Payments from other governments - - 5,000 - 5,000 -
Payments (to)/from developers 209,362 274,542 - 117,135 601,039 - Transfers (to)/from other funds (83,596) (76,098) (82,310) (3,780) (245,784) 450,021 Net cash provided by (used) in
noncapital financing activities 133,264 190,946 (77,310) 113,355 360,255 450,021 Capital and Related Financing Activities
Purchase of property, plant and equipment (895,401) (33,189) (370) (3,830) (932,790) (595,286) Principal paid on long-term debt (165,000) (255,568) - - (420,568) - Interest paid on long-term debt (21,175) - - - (21,175) - Net cash provided by (used) in capital
and related financing activities (309,932) (1,060,401) (370) (3,830) (1,374,533) (595,286) Investing Activities
Interest received 110,933 268,537 32,525 8,236 420,231 890 Net cash provided by (used) in
investing activities 268,537 110,933 32,525 8,236 420,231 890 Net Increase (Decrease) in Cash 814,757 531,650 208,078 84,166 1,638,651 - Cash
Beginning of year 2,901,770 8,002,099 856,959 134,648 11,895,476 - End of year $ 3,716,527 8,533,749 $ 1,065,037 $ 218,814 $ 13,534,127 $ - $ Cash Flows from Operating Activities
Operating income (loss) 651,524 $ 279,214 $ 275,913 $ (49,674) $ 1,156,977 $ (433,664) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 234,125 540,381 986 14,938 790,430 417,276 (Increase) Decrease in Accounts Receivable (22,918) (38,072) (52,995) (4,986) (118,971) (1,197) (Increase) Decrease in Deferred Outflows of Resources 66,980 57,337 20,398 5,786 150,501 - Increase (Decrease) in Accounts Payable
and Accrued Liabilities 260,030 (2,788) 10,857 3,975 272,074 161,960 Increase (Decrease) in Deposits 17,500 - - - 17,500 -
Increase (Decrease) in Deferred Inflows of Resources (898) (768) (274) (78) (2,018) - Increase (Decrease) in Net Pension Liability (41,169) (35,244) (12,539) (3,556) (92,508) - Increase (Decrease) in Compensated Absences 22,750 25,076 10,887 - 58,713 - Net Cash Provided by (Used) in Operating Activities $ 822,810 1,190,250 $ 253,233 $ (33,595) $ 2,232,698 $ 144,375 $ Business-Type Activities - Enterprise Funds
202
Section 7, Item A.
13 CITY OF KERMAN

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
Custodial
Funds
ASSETS
Cash and investments $ 870,758
Total assets 870,758

LIABILITIES
Accounts payable 3,149
Total liabilities 3,149

NET POSITION
Restricted for
Individuals, organizations, and other governments 867,609 Total Net Position 867,609 $
203
Section 7, Item A.
14 CITY OF KERMAN

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
JUNE 30, 2025
Additions
Fees 89,467 $
Deposits 192,114
Special events 8,759
Total additions 290,340
Deductions
Payments to other entities 87,293
Total deductions 87,293
Change In Net Position 203,047
Net Position
Beginning of year 664,562
End of year $ 867,609
204
Section 7, Item A.
15 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies
The financial statements of the City of Kerman (the City) have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America (GAAP) as applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

These financial statements present the government and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government’s operations and data from these units are combined with data of the primary government. Each blended component unit has a June 30 fiscal year end. There are no discretely presented component units included in these financial statements. The following sections further describe the significant accounting policies of the City.

Reporting Entity
The City was incorporated as a general law city in 1946. The City operates under a Council-Manager form of government. The City's major operations include public safety; highways and streets; water, sewer, and refuse collection; parks and recreation; building inspection; public improvements; planning and zoning, and general administrative services.

Also included in this report is the Kerman Public Financing Authority (KPFA). The KPFA was established in 2007 through a Joint Exercise of Powers Agreement between the City and the Agency. The formation of the joint powers authority was approved by the City Council who is also designated as the Board of Directors for the KPFA. The City Manager is appointed Secretary with the City staff providing all support services. The purpose of the KPFA is solely to provide funds from the sale of revenue bonds to finance or refinance the costs of various projects for the City. The City set up the KPFA to act as a financing/lending type institution only. The KPFA/City legislative meetings are held concurrently. No separate annual financial statements are prepared for the KPFA.

Basis of Presentation – Fund Accounting
Government-Wide Financial Statements - The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) report information of all of the nonfiduciary activities of the primary government and its component units. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and inter-governmental revenues, are reported separately from business-type activities, which rely significantly on fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities.

Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 205
Section 7, Item A.
16 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Net position is restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

Governmental Fund Financial Statements - The Governmental Fund Financial Statements provide information about the City’s funds, including fiduciary funds and the blended component unit. Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column.

All remaining governmental funds are separately aggregated and reported as non-major funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

The City reports the following major governmental funds:

General Fund – The General Fund is the general operating fund of the City. It is used for all financial resources except those required legally, or by sound financial management to be accounted for in another fund.

Generally, the General Fund is used to account for those traditional governmental services of the City, such as police, community services, planning and general administrative services.

Street Maintenance & Construction – The Street Maintenance and Construction Fund accounts for all capital street and improvement projects.

State Grant Fund – The State Grant Fund accounts for all grants received from the State of California.

Fire Facility Fund – Accounts for impact fees collected for future fire facility expansion projects.

The City reports the following major enterprise funds:

Water Fund – The Water Fund accounts for the operation and maintenance of the City’s water treatment and water transmission and distribution systems.

Sewer Fund – The Sewer Fund accounts for the operation and maintenance of the City’s sewer system.

Disposal Fund – The Disposal Fund accounts for the operation and maintenance of the City’s sanitation system.

Storm Drain Fund – The Storm Drain Fund accounts for the operation and maintenance of the City’s storm drain system.
206
Section 7, Item A.
17 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) The City reports the following additional fund types:

Internal Service Fund – The Internal Service Fund accounts for fleet management and computer services provided to other departments or agencies of the government, on a cost reimbursement basis.

Fiduciary Funds – The Fiduciary Funds account for assets held by the City as an agent for various local governments or other entities. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.

Basis of Accounting
The Government-Wide and Proprietary Fund Financial Statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental Funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.

Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting.

However, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary Funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund’s principal ongoing operations. Revenues and expenses not meeting this definition are reported as non-operating.

Financial Statement Amounts
Cash and Cash Equivalents – Cash and cash equivalents represent the City's cash bank accounts including, but not limited to, certificates of deposit, money market funds and cash management pools for reporting purposes in the Statement of Cash Flows. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents in the Statement of Cash Flows.

The City maintains a cash and investment pool that is available for use by all funds. Interest earnings as a result of this pooling are distributed to the appropriate funds based on quarterly ending cash balances in each fund.
207
Section 7, Item A.
18 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Investments of the pool include only those investments authorized by the California Government Code such as, United States Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in money market accounts and certificates of deposit. Investments are stated at fair value.

Accounts Receivable – Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. The Proprietary Funds include a year end accrual for services through the end of the fiscal year which have not yet been billed. Accounts receivable are reported net of an allowance for uncollectible.

Fresno County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is January 1 of each year. Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year end. Property tax on the unsecured roll are due on the January 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual.

The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00 per $100 of full cash value.

Interfund Receivables/Payables – Items classified as interfund receivable/payable represent short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund.

Advances To/From Other Funds – This classification represents non-current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and therefore, is not available for appropriation. The current portion of any interfund long-term loan (advance) is included as an interfund receivable/payable.

Capital Assets – Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the Government-Wide Financial Statements to the extent the City’s capitalization threshold is met.

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the Government-Wide Financial Statements. Capital assets are defined by the government as assets with an initial individual cost of more than $10,000 for roadways and $5,000 for all other assets, and an estimated useful life of at least three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
208
Section 7, Item A.
19 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities are included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives:

Years
Infrastructure 50
Buildings 20 - 40
Improvements 30 - 50
Equipment 5 - 10
Leases - Lessor: The City recognizes a lease receivable and a deferred inflow of resources in the governmentwide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses the interest rate charged to the lessees as the discount rate. When the interest rate charged to the lessees is not provided, the City generally uses the implied rate of return as the discount rate for leases. When the implied rate of return has not been determined, the City uses its estimated incremental borrowing rate which it has determined is the prime rate at the inception of the lease.  The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 209
Section 7, Item A.
20 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Compensated Absences – It is the City's policy to permit all employees to accumulate earned but unused vacation, sick pay and compensatory time benefits within limits outlined in Memorandums of Understanding (MOU).

Vested or accumulated vacation and sick leave along with any compensation time that is expected to be paid with expendable available financial resources is reported as an expenditure in the fund financial statements of the Governmental Fund that will pay for it. Amounts not expected to be liquidated with expendable available financial resources are reported in the Government-Wide Financial Statements.

Vested leave of Proprietary Funds are recorded as an expense and liability as the benefits accrue.

Pension – For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employee Retirement System (CalPERS) plan and additions to/deduction from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Long-Term Obligations – In the Government-Wide Financial Statements and in the Proprietary Fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or Proprietary Fund Type Statement of Net Position. Debt principal payments of both government and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, however, debt principal payments of Governmental Funds are recognized as expenditures when paid. Governmental Fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Non-Current Governmental Assets/Liabilities – GASB Statement No. 34 eliminates the presentation of account groups, but provides for these records to be maintained and incorporates the information into the Governmental Activities column in the Government-Wide Statement of Net Position. 210
Section 7, Item A.
21 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Net Position – The government-wide and business-type activities financial statements utilize a net position presentation. Net position are categorized as net investment in capital assets, restricted and unrestricted.  Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
 Restricted Net Position - This category presents external restrictions on net position imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.  Unrestricted Net Position - This category represents net position of the City not restricted for any project or other purpose.

Fund Balance – In the fund financial statements, governmental fund balance is made up of the following components:
 Nonspendable fund balance typically includes inventories, prepaid items, and other items that must be maintained intact pursuant to legal or contractual requirements, such as endowments.  Restricted fund balance category includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations.
 Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has the authority to establish, modify, or rescind a fund balance commitment.
 Assigned fund balance are amounts designated by the City Council for specific purposes and do not meet the criteria to be classified as restricted or committed.  Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.
211
Section 7, Item A.
22 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

Note 2 – Stewardship, Compliance and Accountability
California law authorizes the City to invest in obligations of the United States Treasury, agencies and instrumentalities, certificates of deposit or time deposits in banks and savings and loan associations which are insured by the Federal Deposit Insurance Corporation.

In accordance with applicable sections of the California Government Code and the Kerman Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds. Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during June of each year for review.

The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.

All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered.

Note 3 – Cash and Investments
The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.

Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 31,731,567 $
Fiduciary Funds:

Cash and Investments 870,758
Total Cash and Investments $ 32,602,325
212
Section 7, Item A.
23 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (Continued)
Cash and investments as of June 30, 2025 consist of the following:

Cash on Hand $ 1,250
Deposits with Financial Institutions 5,785,385
Local Agency Investment Fund 18,458,213
Money Market Funds 3,649,282
Certificates of Deposit 4,708,195
Total Cash and Investments $ 32,602,325
Fair Value Measurements
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.

Level 2: Inputs to valuation methodology include inputs – other than quoted prices included within Level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The City’s investment policy does not contain any specific provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. 213
Section 7, Item A.
24 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (Continued)
Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Reverse Repurchase Agreements 92 days 20% None
Medium-Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-Through Securities 5 years 20% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None None
JPA Pools (other investment pools) N/A None None
Authorized Investment Type
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by the bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts None None None
Certificates of Deposits 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) N/A None None
Municipal Bonds None None None
Authorized Investment Type
214
Section 7, Item A.
25 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City of Kerman manages its exposure to interest rate risk is through the purchase of a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 12 Months 13 to 24 25 to 60
Fair Value or Less Months Months
Local Agency Investment Fund 18,458,213 $ 18,458,213 $ - $ -$ Certificates of deposit 4,708,139 1,178,857 3,529,282 - Money Market Funds 3,649,282 3,649,282 - -
Total $ 23,286,352 26,815,634 $ 3,529,282 $ - $
Investment Type
Remaining Maturity (in months)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Minimum Rating as of Year End
Legal Not
Rating Rated
Local Agency Investment Fund $ 18,458,213 N/A $ 18,458,213 Certificates of deposit 4,708,195 N/A 4,708,195
Money Market Funds 3,649,282 N/A 3,649,282
Total $ 26,815,690 26,815,690 $
Investment Type
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There were no investments in any one issuer, other than U.S. Treasury securities, mutual funds, and external investment pools that represent 5% or more of total City-wide investments as of June 30, 2025.
215
Section 7, Item A.
26 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).

The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

The custodial risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools.

Note 4 – Receivables
The following is a summary of receivables at June 30, 2025 for the City’s individual enterprise funds, including the applicable allowances for uncollectible accounts are as follows:

Water Sewer Disposal Storm Drain Internal Service
Enterprise Funds
Accounts $ 197,851 246,463 $ 260,574 $ 24,985 $ 5,172 $ Gross receivables 246,463 197,851 260,574 24,985 5,172
Less: Allowance for
uncollectible accounts (30,520) (26,838) (19,898) (1,574) - $ 167,331 219,625 $ 240,676 $ 23,411 $ 5,172 $
216
Section 7, Item A.
27 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 4 – Receivables (continued)
Lease receivables
The following is a summary of lease receivables at June 30, 2025:

General Fund
Land Leases:

Valley Health 47,974 $
Tower Leases:

Verizon 383,545
AT&T 34,379
$ 465,898
Valley Heath Team Inc. Land Lease – The City entered into an agreement to lease out a certain property from June 1, 2011 through August 31, 2026 at a monthly rate of $3,312.24. Payment is due the first of the month at .9% interest.

Verizon Tower Lease – The City entered into an agreement to lease out a cell tower from December 1, 2007 through December 1, 2036 for an annual payment ranging from $25,412 to $39,590. Payment is due December 1 each year at .9% interest.

AT&T Tower Lease – The City entered into an agreement to lease out a cell tower from December 1, 2007 through December 1, 2036 to for a monthly payment of $1,600. Payment is due December 1 each year at .9% interest.

The annual payment receipt schedule for principal and interest on all lease receivable at June 30, 2025 were as follows:

For the year ended June 30, Principal Interest Total
2026 $ 85,806 $ 3,830 $ 89,636
2027 48,164 3,169 51,333
2028 27,480 2,863 30,343
2029 28,643 2,610 31,253
2030 29,843 2,347 32,190
2031-2035 168,637 7,393 176,030
2036-2037 77,325 703 78,028
Total $ 465,898 $ 22,915 $ 488,813
217
Section 7, Item A.
28 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 4 – Receivables (continued)
The related deferred inflows of resources on the right of use on lease revenue will be amortized on a straightline basis over the term of the agreement as follows:

For the year ended June 30, Principal
2026 $ 85,253
2027 48,541
2028 30,628
2029 30,628
2030 30,628
2031-2035 153,139
2036-2037 45,945
Total $ 424,761
During the year ended June 30, 2025, the City recognized $95,011 in lease revenue and $4,602 in related interest income.
218
Section 7, Item A.
29 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 5 – Capital Assets – Capital asset activities for the year ended June 30, 2025 were as follows:

Balance Balance
July 1, 2024 Additions Retirements June 30, 2025
Governmental Activities
Capital assets, not being depreciated
Land $ 5,470,782 $ - $ 5,470,782 - $
Construction in progress 8,019,158 7,200,931 (3,622,622) 11,597,467 Total capital assets, not being depreciated 8,019,158 12,671,713 (3,622,622) 17,068,249 Capital assets, being depreciated
Buildings and improvements 12,535,764 659,613 13,195,377 Infrastructure 23,682,592 3,699,708 27,382,300 -
Machinery and equipment 603,275 4,513,197 - 5,116,472
Total capital assets, being depreciated 4,962,596 40,731,553 - 45,694,149 Less accumulated depreciation for
Buildings and improvements (3,879,678) (336,639) (4,216,317) - Infrastructure (6,467,872) (567,647) (7,035,519) -
Machinery and equipment (470,710) (2,766,229) - (3,236,939) Total accumulated depreciation (1,374,996) (13,113,779) - (14,488,775) Total capital assets, being depreciated, net 3,587,600 27,617,774 - 31,205,374 Governmental activities capital assets, net $ 11,606,758 40,289,487 $ (3,622,622) $ 48,273,623 $ Business-Type Activities
Capital assets, not being depreciated
Land $ 3,383,589 $ - $ 3,383,589 - $
Construction in progress 383,824 5,332,405 (13,390) 5,702,839 Total capital assets, not being depreciated 383,824 8,715,994 (13,390) 9,086,428 Capital assets, being depreciated
Buildings and improvements 23,243,663 528,456 23,772,119 - Machinery and equipment 33,900 2,160,179 - 2,194,079
Total capital assets, being depreciated 562,356 25,403,842 - 25,966,198 Less: accumulated depreciation (790,430) (16,731,580) - (17,522,010) Total capital assets, being depreciated, net (228,074) 8,672,262 - 8,444,188 Business-type activities capital assets, net $ 155,750 17,388,256 $ (13,390) $ 17,530,616 $ 219
Section 7, Item A.
30 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 5 – Capital Assets (Continued)
Depreciation expense was charged to the following functions in the Statement of Activities:

Governmental Functions:

General Government 129,509 $
Public Works and Community Development 576,282
Social Services 211,655
Public Safety 40,274
Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the asset 417,276 $ 1,374,996
Business-Type Functions:

Water 234,125 $
Sewer 540,381
Disposal 986
Storm Drain 14,938
$ 790,430
220
Section 7, Item A.
31 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 6 – Long-Term Debt
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.

Long-term debt payable at June 30, 2025 was comprised of the following individual issues:

Balance Balance Current
July 1, 2024 Additions Retirements June 30, 2025 Portion Governmental Activity Long Term Debt
Direct Borrowings:

Kerman Public Finance Authority Bonds
2020 Lease Revenue Bonds $ 2,836,000 - $ (177,000) $ 2,659,000 $ 180,000 $ Total Governmental Activity Debt $ - 2,836,000 $ (177,000) $ 2,659,000 $ 180,000 $ Business-Type Activity Long Term Debt
Direct Borrowings:

Notes Payable
California Dept. of Water Resources 659,999 $ - $ (165,000) $ 494,999 $ 165,000 $ California Dept. of Water Resources 2,117,542 - (255,568) 1,861,974 258,123 Total Business-Type Activity Debt $ - 2,777,541 $ (420,568) $ 2,356,973 $ 423,123 $ Compensated Absences
Government Activities $ 502,874 47,020 $ - $ 549,894 $
Business-Type Activities $ 144,984 58,713 $ - $ 203,697 $ Net Pension Liability
Government Activities $ - 4,548,284 $ (363,423) $ 4,184,861 $ Business-Type Activities $ 1,157,755 - $ (92,508) $ 1,065,247 $ Kerman Public Financing Authority Bonds - The KPFA was established in 2007 through a Joint Exercise of Powers Agreement between the City and the Agency. The formation of the joint powers authority was approved by the City Council who is also designated as the Board of Directors for the KPFA.

The purpose of the KPFA is solely to provide funds from the sale of revenue bonds to finance or refinance the costs of acquiring, constructing, or improving and equipping capital improvements (projects) for the City and the Agency. The City set up the KPFA to act as a financing/lending type institution only.

In September 2020, the KPFA issued the 2020 Lease Revenue Refunding Bonds in the amount of $3,041,000.

The 2020 Lease Revenue principal payments are made each October 1 beginning in 2023 through 2038.

Interest is to be paid semi-annually on April 1 and October 1 through 2038. The interest rates range from 3.5% to 4.75%.
221
Section 7, Item A.
32 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 6 – Long-Term Debt (Continued)
California Department of Water Resources Construction Loan – The City entered into a contract with the State of California, Department of Water Resources in 2003. The contract provides for a 20 year loan at a zero percent interest rate. Terms of the note call for semi-annual principal payments of $82,500 beginning January 1, 2008 and will mature on January 1, 2028. The outstanding balance on the note at June 30, 2025 was $494,999.

California Department of Water Resources Wastewater Upgrade Loan – The City entered into a revolving loan agreement with the State of California, Department of Water Resources in September 2009. The agreement provides for a loan of up to $4,957,479 for sewer system upgrades. Construction period interest of of $38,241 was combined with the loan amount for a final total loan of $4,995,720. Terms of the loan call for annual payments of $276,743 including interest at 1.00%, which begins September 2012 and will mature in September 2031. The outstanding balance on the note at June 30, 2025 was $1,861,974.

The annual requirement to amortize the principal and interest on all long-term debt at June 30, 2025 were as follows:

Years ending June 30, Principal Interest Principal Interest 2025 $ 180,000 $ 59,344 $ 423,123 $ 18,620
2026 183,000 55,151 425,704 16,039
2027 186,000 50,889 428,310 13,432
2028 189,000 46,558 265,944 10,798
2029 212,000 23,239 268,604 8,139
2030-2034 1,026,000 158,998 545,288 8,193
2035-2038 23,875 683,000 - -
$ 418,054 2,659,000 $ 2,356,973 $ 75,221 $
Governmental Activities Business-Type Activities
222
Section 7, Item A.
33 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 7 – Interfund Receivables, Payables and Transfers
Interfund receivables and payables consist of short-term loans resulting from regular transactions. These loans are expected to be repaid as soon as the borrowing fund has cash.

Individual fund interfund receivables and payables balances as of June 30, 2025 are as follows:

Due From Due To
General Fund 3,066,497 $ - $
Internal Service Fund - 1,127,860
Senior Center Fund - 22,498
Park Grant - 1,305
State Grants - 1,914,834
$ 3,066,497 3,066,497 $
Interfund Transfers
In general, the City uses interfund transfers to (1) move revenues from the funds that collect them to the funds’ that statute or budget requires to expend them, (2) use unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds in accordance with budgetary authorization, and (3) move cash to debt service funds from the funds responsible for payment as debt service payments become due. In general, the effect of the interfund activity has been eliminated from the governmentwide financial statements.

Transfers In Transfers Out
Major Governmental Funds:

General Fund 532,736 $ - $
Street Maintenance and Construction 516 -
State Grants - 364,695
Proprietary Funds:

Water - 76,098
Sewer - 83,596
Disposal - 82,310
Storm Drain - 3,780
Internal Service 130,923 -
Nonmajor Governmental Funds:

Measure C 103 -
Gas Tax 15,437 -
Senior Center 17,725 -
Maintenance District - 7,956
Local Transportation 79,005 -
$ 697,440 697,440 $
223
Section 7, Item A.
34 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 8 – Risk Management
The City participates with other public entities in a joint venture under a joint powers agreement which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.

The CSJVRMA is a consortium of 55 cities in San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500, et. seq. The CSJVRMA is governed by a Board of Directors, which meets three to four times each year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA. The financial statements of CSJVRMA can be obtained at 1831 K Street, Sacramento, CA 95814.

Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $25,000 of each occurrence is charged directly to the member. Each member maintains a $1,000,000 self-insured retention (SIR) amount covered by the Authority pooled investments. The Authority purchases excess liability coverage through the California Affiliated Risk Management Authority for the amount in excess of $1,000,000.

The City maintains a self-insured retention level of $50,000 for workers’ compensation insurance. Coverage between $50,000 and $500,000 is provided through the risk pool. CSJVRMA participates in an excess pool which provides workers’ compensation coverage from $5,000,000 to $200,000,000. Each program year is retrospectively adjusted three years after the end of the program year and annually thereafter.

The City also purchases various property coverage programs. Deductibles and limits per property type can be obtained from the City Manager or directly from the Authority.

The latest audited financial information and the most current information available for CSJVRMA for fiscal year ended June 30, 2025 is as follows:

Total assets $ 206,777,744
Total liabilities 157,063,998
Net position $ 94,036,144
Total revenues $ 94,036,144
Total expenses 86,877,199
Increase/(decrease) in net position $ 7,158,945
Contingent Liabilities

The City participates in a number of Federal and State assisted grant programs which are subject to financial and compliance audits. Audits for these programs and the respective findings are to be determined at a future date, and the City expects the amount, if any, of the expenditures which may be disallowed by the granting agency to be immaterial.

The City is a defendant in various lawsuits and claims. The City attorney anticipates that actual or potential claims against the City, not covered by insurance, would not materially affect the financial position of the City. 224
Section 7, Item A.
35 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 9 – Deferred Outflows and Deferred Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports the $2,483,230 in deferred outflows related to net pension liability in the Statement of Net Position. See Note 10 for more details.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports two items related to deferred inflows, totaling $669,502:
 $244,741 in deferred inflows of resources related to net pension liability, see Note 11 for more details.  $424,761 in deferred inflows of resources related to right of use capital lease revenue in the Balance Sheet of the General Fund, see Note 4 for more details.

Note 10 – Pension Plan
Plan Description - The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries.

PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance.

Copies of PERS' annual financial report may be obtained from their Executive Office - 400 P Street - Sacramento, CA 95814.

Funding Policy – Active plan members in the Plan are required to contribute 7% of their covered salary for both miscellaneous and public safety members. The City contributes 4% of the employee portion.

The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rates for the fiscal year ended June 30, 2025 Miscellaneous Classic, PEPRA Miscellaneous, Safety Classic, and PEPRA Safety were 10.15%, 7.87%,

16.56%, and 11.05%, respectively. The contribution requirements of plan members is established by State statute and the employer contribution is established and may be amended by PERS. 225
Section 7, Item A.
36 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 10 – Pension Plan (Continued)
The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Miscellaneous Classic PEPRA Miscellaneous
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.0% at 60;
maximum 2% COLA

2.0% at 62;
maximum 2% COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 60 60
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00% Required Employee Contribution Rates 7.00% 7.75%
Required Employer Contribution Rates 10.15% 7.87%
Safety Classic PEPRA Safety
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.0% at 55;
maximum 2% COLA

2.0% at 57;
maximum 2% COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 55 55
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00% Required Employee Contribution Rates 7.00% 11.00%
Required Employer Contribution Rates 16.56% 11.05%
Employees hired July 1, 2012 and thereafter pay the full 7% employee contribution per adopted Memoranda of Understanding if the employee is considered a “Classic” employee under PEPRA.

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following the notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 226
Section 7, Item A.
37 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 10 – Pension Plan (Continued)
For the year ended June 30, 2025, the contributions recognized $1,224,399 as part of the pension expense.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Miscellaneous Plan
Safety Police Plan
Total Net Pension Liability
Proportionate Share of Net
Pension Liability
$ 3,409,934
1,840,174
$ 5,250,108
The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2023, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2024 and 2025 was as follows:

Miscellaneous Safety
Proportion – June 30, 2024 0.07229% 0.02798%
Proportion – June 30, 2025 0.07050% 0.02524%
Change – Increase/(Decrease) -0.00179% -0.00274%
227
Section 7, Item A.
38 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 10 – Pension Plan (Continued)
For the year ended June 30, 2025, the City recognized pension expense of $1,371,283. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 1,095,401 $ - $
Difference between expected and actual experience 444,997 (16,387) Difference in projected and actual contributions 352,409 (84,355) Change in employer's proportion 172,191 (144,003)
Changes in assumptions 132,980 -
Net differences between projected and
actual earnings on pension plan investments - 285,252
Total $ (244,745) 2,483,230 $
$1,095,041 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
2026 454,178 $
2027 730,822
2028 55,789
2029 (97,705)
Thereafter -
228
Section 7, Item A.
39 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 10 – Pension Plan (Continued)
Actuarial Methods and Assumptions – The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method in
accordance with the requirements of
GASB Statement No. 68
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS' Membership
Date for all Funds
1 Post Retirement Benefit Increase Contract COLA up to 2.3% until Purchasing Power Protection
Allowance Floor on Purchasing Power
applies
1 The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2017 valuation was based on the results of a December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015), including updates to salary increase, mortality and retirement rates. The Experience Study can be obtained at CalPERS’ website.

Change of assumptions – No changes in assumptions.

Discount rate – The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 229
Section 7, Item A.
40 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 10 – Pension Plan (Continued)
Long-term Expected Rate of Return
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

The long-term expected real rates of return by asset class can be found in CalPERS’ Comprehensive Annual Financial Report for the fiscal year ended June 30, 2024.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected rate of returns, net of pension plan investment expense and inflation) are developed for each major asset class.

The table below reflects long-term expected real rates of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These geometric rates of return are net of administrative expenses.

Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10
1,
2 Global equity - cap-weighted 30% 4.50%
Global equity - noncap-weighted 12% 3.84%
Private equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed securities 5% 0.50%
Investment grade corporates 10% 1.56%
High yield 5% 2.27%
Emerging market debt 5% 2.48%
Private debt 5% 3.57%
Real assets 15% 3.21%
Leverage -5% -0.59%
1 An expected inflation of 2.30% used for this period
2 Figures are based on the 2022-22 Asset Liability Management Study 230
Section 7, Item A.
41 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 10 – Pension Plan (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City’s proportionate share of the net pension liability for each Plan, calculating using the discount rate of each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90%) or 1-percentage point higher (7.90%) than the current rate:
1% Decrease
(5.90%)
Current
Discount Rate
(6.90%)
1% Increase
(7.90%)
Net Pension Liability:

Miscellaneous Plan 5,537,755 $ 3,409,934 $ 1,658,423 $
Safety Police Plan 3,217,385 $ 1,840,174 $ 713,810 $
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan – At June 30, 2025, the City has no outstanding amount of contributions to the pension plan required for the year ended June 30, 2025.

Note 11 – Subsequent Events
The City evaluated subsequent events for recognition and disclosure through April 16, 2026, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025 that required recognition or disclosure in such financial statements.

Note 12 – Restatement of Net Position/Fund Balance
Fund Reclassifications – Major and Nonmajor Funds
During the fiscal year ended 2025, the City conducted an annual review of its fund structure. As part of this review and in compliance with GASB Statement No. 100, Accounting Changes and Error Corrections, the City identified necessary reclassifications to enhance transparency, improve financial reporting accuracy, and ensure consistency with updated accounting standards. As a result, the following funds were reclassified:

Fund Name Reason for Reclassification
Fire Facility Nonmajor Major The increase in activity in the current year met the criteria for a major fund designation
Local Transportation Fund Major Nonmajor The decrease in overall activity caused the fund to no longer meet the criteria for a major fund,
resulting in its reclassification as nonmajor.

Gas Tax Fund Major Nonmajor The decrease in overall activity caused the fund to no longer meet the criteria for a major fund,
resulting in its reclassification as nonmajor.

Previous
Classification
New
Classification
231
Section 7, Item A.
42 CITY OF KERMAN

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 12 – Restatement of Net Position/Fund Balance (continued) These reclassifications have been applied retrospectively to prior-period financial statements for comparability. The following table summarizes the impact of these reclassifications on beginning fund balances and net position:

Fire Local Gas
Facility Transportation Tax
Beginning of year, as previously stated $ 1,622,404 - $ $ 867,937 Change within financial reporting entity
(major to nonmajor) (1,622,404) - (867,937)
Change within financial reporting entity
(nonmajor to major) - 732,781 -
Beginning of year, restated $ - 732,781 $ - $
232
Section 7, Item A.

REQUIRED SUPPLEMENTARY INFORMATION
233
Section 7, Item A.
43 CITY OF KERMAN

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes 8,312,278 $ 8,312,278.12 9,711,750 $ 1,399,472 $
Licenses, permits and impact fees 1,357,779 1,357,779 1,227,970 (129,809) Intergovernmental 475,756 475,756 444,379 (31,377)
Charges for services 301,279 301,279 284,995 (16,284)
Fines and forfeitures 44,470 44,470 49,769 5,299
Rents 193,852 193,852 126,183 (67,669)
Investment earning, net of unrealized gain/(loss) 124,299 124,299 575,336 451,037 Other 83,800 83,800 112,248 28,448
Total revenue 10,893,512 10,893,512 12,532,630 1,639,118 Expenditures
Current
General government 1,411,422 1,411,422 1,280,817 130,605 Public works 1,611,825 1,611,825 1,585,873 25,952
Community development 782,905 782,905 644,419 138,486
Social services 904,232 904,232 891,416 12,816
Public safety 6,335,233 6,335,233 6,182,112 153,121
Capital outlay 4,939,113 4,939,113 1,871,201 3,067,912
Total expenditures 15,984,731 15,984,731 12,455,838 3,528,893 Revenue over (under) expenditures (5,091,218) (5,091,218) 76,792 5,168,010 Other Financing Sources
Lease revenues - - 91,952 91,952
Transfers in (out) - net (551,221) (551,221) 532,736 1,083,957 Net Change in Fund Balance $ (5,642,440) (5,642,440) $ 701,480 $ 6,251,968 Fund Balance
Beginning of year 15,575,174
End of year $ 16,276,654
234
Section 7, Item A.
44 CITY OF KERMAN

BUDGETARY COMPARISON SCHEDULE

STREET MAINTENANCE AND CONSTRUCTION CAPITAL PROJECT FUND YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Intergovernmental $ 2,164,553 2,164,553 $ 1,262,079 $ (902,474) $ Total revenue 2,164,553 2,164,553 1,262,079 (902,474)
Expenditures
Capital outlay 5,820,333 5,820,333 3,069,150 2,751,183
Total expenditures 5,820,333 5,820,333 3,069,150 2,751,183 Revenue over expenditures (3,655,780) (3,655,780) (1,807,071) 1,848,709 Other Financing Sources/(Uses)
Transfers in/(out) - net - - 516 516
Change in Fund Balance $ (3,655,780) (3,655,780) $ (1,806,555) $ 1,849,225 Fund Balance
Beginning of year 3,655,780
End of year $ 1,849,225
235
Section 7, Item A.
45 CITY OF KERMAN

BUDGETARY COMPARISON SCHEDULE

FIRE FACILITY FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Licenses, permits and impact fees 60,000 $ 60,000 $ 65,981 $ 5,981 $ Investment earning, net of unrealized gain/(loss) 6,793 6,793 25,834 19,041 Total revenue 66,793 66,793 91,815 25,022
Expenditures
Community development - - 813,689 (813,689)
Total expenditures - - 813,689 (813,689)
Revenue over expenditures 66,793 66,793 (721,874) (788,667) Other Financing Sources/(Uses)
Transfers in/(out) - net 15,054 15,054 - (15,054)
Change in Fund Balance $ 81,847 81,847 $ (721,874) $ (803,721) Fund Balance
Beginning of year 732,781
End of year $ 10,907
236
Section 7, Item A.
46 CITY OF KERMAN SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY LAST TEN YEARS* YEAR ENDED JUNE 30, 2025 Proportion of the net
pension liability
Proportionate share of
the net pension liability
Covered - employee
payroll
Proportionate share of the net
pension liability as percentage of
covered-employee payroll Plan's fiduciary net position
Plan's fiduciary net position as a
percentage of the Total Pension
Liability
2015 0.01575% $ 648,972 $ 1,241,193 52.29% $ 3,869,632 85.62% 2016 0.01854% $ 959,979 $ 1,457,400 65.87% $ 3,916,861 80.32% 2017 0.01899% $ 1,134,650 $ 1,411,999 80.36% $ 4,136,749 78.48% 2018 0.01968% $ 1,154,435 $ 1,645,891 70.14% $ 4,431,768 79.33% 2019 0.02088% $ 1,303,386 $ 1,585,991 82.18% $ 4,934,602 79.11% 2020 0.02259% $ 1,504,784 $ 1,628,209 92.42% $ 5,238,533 77.68% 2021 0.01971% $ 691,756 $ 1,558,752 44.38% $ 6,678,594 90.61% 2022 0.02684% $ 1,844,146 $ 1,726,380 106.82% $ 6,626,406 78.23% 2023 0.02798% $ 2,091,321 $ 1,649,092 126.82% $ 7,011,773 77.03% 2024 0.02524% $ 1,840,174 $ 2,101,714 87.56% $ 8,241,965 81.75% Proportion of the net
pension liability
Proportionate share of
the net pension liability
Covered - employee
payroll
Proportionate share of the net
pension liability as percentage of
covered-employee payroll Plan's fiduciary net position
Plan's fiduciary net position as a
percentage of the Total Pension
Liability
2015 0.04266% $ 1,170,147 $ 1,858,214 62.97% $ 7,331,180 86.23% 2016 0.04971% $ 1,726,827 $ 2,065,491 83.60% $ 7,344,945 80.96% 2017 0.05351% $ 2,109,314 $ 2,138,981 98.61% $ 8,344,687 79.82% 2018 0.05485% $ 2,067,174 $ 2,009,964 102.85% $ 8,856,335 81.08% 2019 0.05836% $ 2,337,202 $ 2,297,565 101.73% $ 9,508,983 80.27% 2020 0.06208% $ 2,618,410 $ 2,571,344 101.83% $ 10,082,879 79.38% 2021 0.06029% $ 1,144,848 $ 2,360,679 48.50% $ 12,469,009 91.59% 2022 0.06964% $ 3,258,465 $ 2,326,594 140.05% $ 11,524,805 104.34%2023 0.07229% $ 3,614,718 $ 3,175,067 113.85% $ 12,195,713 77.14% 2024 0.07050% $ 3,409,934 $ 3,013,737 113.15% $ 12,358,673 78.38% Safety Plan
Miscellaneous Plan
237
Section 7, Item A.
47 CITY OF KERMANSCHEDULE OF CONTRIBUTIONS LAST TEN YEARS* YEAR ENDED JUNE 30, 2025 Contractually required
contribution (actuarially
determined)
Contributions in relation
to the actuarially
determined
contributions
Contributions
deficiency (excess) Covered-employee payroll
Contributions as a percentage of coveredemployee payroll 2016 $ 179,871 $ (179,871) $ - $ 1,241,193 14.49%
2017 $ 194,771 $ (194,771) $ - $ 1,457,400 13.36%
2018 $ 182,432 $ (182,432) $ - $ 1,411,999 12.92%
2019 $ 248,979 $ (248,979) $ - $ 1,645,891 15.13%
2020 $ 275,389 $ (275,389) $ - $ 1,585,991 17.36%
2021 $ 318,886 $ (318,886) $ - $ 1,628,209 19.59%
2022 $ 334,035 $ (334,035) $ - $ 1,558,752 21.43%
2023 $ 326,093 $ (326,093) $ - $ 1,726,380 18.89%
2024 $ 544,409 $ (544,409) $ - $ 1,649,092 33.01%
2025 $ 465,940 $ (465,940) $ - $ 2,101,714 22.17%
Contractually required
contribution (actuarially
determined)
Contributions in relation
to the actuarially
determined
contributions
Contributions
deficiency (excess) Covered-employee payroll
Contributions as a
percentage of coveredemployee payroll
2016 $ 170,449 $ (170,449) $ - $ 1,858,214 9.17%
2017 $ 198,655 $ (198,655) $ - $ 2,065,491 9.62%
2018 $ 233,708 $ (233,708) $ - $ 2,138,981 10.93%
2019 $ 266,848 $ (266,848) $ - $ 2,009,964 13.28%
2020 $ 329,826 $ (329,826) $ - $ 2,297,565 14.36%
2021 $ 365,112 $ (365,112) $ - $ 2,571,344 14.20%
2022 $ 398,314 $ (398,314) $ - $ 2,360,679 16.87%
2023 $ 451,744 $ (451,744) $ - $ 2,326,594 19.42%
2024 $ 679,990 $ (679,990) $ - $ 3,175,067 21.42%
2025 $ 629,461 $ (629,461) $ - $ 3,013,737 20.89%
Safety Plan
Miscellaneous Plan
238
Section 7, Item A.

SUPPLEMENTAL ONLY INFORMATION
239
Section 7, Item A.
48 CITY OF KERMAN COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2025 Senior Maintenance SB1 Road Park
Measure C Center District Maintenance Grants
ASSETS
Cash and investments 574,007 $ - $ 77,905 $ 759,073 $ - $ Due from other governments 24,019 101,797 36,670 82,982 1,395 Total assets $ 24,019 675,804 $ 114,575 $ 842,055 $ 1,395 $ LIABILITIES AND FUND BALANCELiabilities
Accounts payable and accrued expense 12,890 $ 1,521 $ 17,986 $ - $ 90 $ Due to other funds 22,498 - - - 1,305 Total liabilities 24,019 12,890 17,986 - 1,395
Fund Balance
Restricted
Circulation improvements 662,914 - - 842,055 -Development activities - - 96,589 - - Total fund balance 662,914 - 96,589 842,055 -
Total liabilities and fund balance $ 24,019 675,804 $ 114,575 $ 842,055 $ 1,395 $ Special Revenue Funds
240
Section 7, Item A.
49 CITY OF KERMAN COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2025 Formerly Major Formerly Major Formerly NonMajor
Local Gas Jobs/Housing Public Building Fire Park
Transportation Tax Mitigation Facility Facility Development ASSETS
Cash and investments 325,629 $ 1,235,105 $ 71,667 $ 89,831 $ - $ 151,200 $ Due from other governments 1,716,895 40,721 - - - -
Total assets $ 1,275,826 2,042,524 $ 71,667 $ 89,831 $ - $ 151,200 $ LIABILITIES AND FUND BALANCELiabilities
Accounts payable and accrued expense 74,216 $ 18,201 $ - $ - $ - $ - $ Due to other funds - - - - - - Total liabilities 18,201 74,216 - - - -
Fund Balance
Restricted
Circulation improvements 1,968,308 1,257,625 - - - -
Development activities - - 71,667 89,831 - 151,200
Total fund balance 1,968,308 1,257,625 71,667 89,831 - 151,200 Total liabilities and fund balance $ 1,275,826 2,042,524 $ 71,667 $ 89,831 $ - $ 151,200 $ Special Revenue Funds Capital Projects Funds
241
Section 7, Item A.
50 CITY OF KERMAN
COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2025 Capital Project Fund Debt Service Fund Total
Kerman Public Non-major
Street Projects Financing Governmental
& Development Authority Funds
ASSETS
Cash and investments 330,554 $ - $ 3,614,971 $
Due from other governments - - 2,004,479
Total assets $ - 330,554 $ 5,619,450 $
LIABILITIES AND FUND BALANCELiabilities
Accounts payable and accrued expense - $ - $ 124,904 $
Due to other funds - - 23,803
Total liabilities - - 148,707
Fund Balance
Restricted
Circulation improvements - - 4,730,902
Development activities - 330,554 739,841Total fund balance 330,554 - 5,470,743 Total liabilities and fund balance $ - 330,554 $ 5,619,450 $ 242
Section 7, Item A.
51 CITY OF KERMAN COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2025 Senior Maintenance SB1 Road Park
Measure C Center District Maintenance Grants
Revenue
Taxes - $ - $ 425,931 $ 470,901 $ - $
Developer impact fees - - - - -
Intergovernmental 639,085 24,000 - - 1,395
Charges for services - 1,886 - - -
Rents - - - - -
Interest - 18,615 2,873 21,443 -
Other - - 19,170 - -
Total revenue 25,886 657,700 447,974 492,344 1,395
Expenditures
Public works 639,704 - 534,691 - -
Community development - - - - -
Social services - 43,611 - - -
Capital outlay 9,634 - 18,939 55,247 1,395
Debt service
Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 43,611 649,338 553,630 55,247 1,395
Revenue over (under) expenditures 8,362 (17,725) (105,656) 437,097 - Other financing sources/(uses)
Operating transfers in/(out) - net 17,725 103 (7,956) - - 103 17,725 (7,956) - -
Change in Fund Balance 8,465 - (113,612) 437,097 -
Fund Balance
Beginning of year, as previously stated 654,449 - 210,201 404,958 - Change within financial reporting entity (major to nonmajor) - - - - - Change within financial reporting entity (nonmajor to major) - - - - - Beginning of year, as restated 654,449 - 210,201 404,958 -End of year $ - 662,914 $ 96,589 $ 842,055 $ - $ Special Revenue Funds
243
Section 7, Item A.
52 CITY OF KERMAN COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025 Formerly Major Formerly Major
Local Gas Jobs/Housing Public Building Fire Park
Transportation Tax Mitigation Facility Facility Development Revenue
Taxes - $ - $ - $ - $ - $ - $
Developer impact fees - - - 117,566 - 329,868
Intergovernmental 1,809,821 479,895 - - - -
Charges for services - - - - - -
Rents - - - - - -
Interest 36,040 13,005 2,290 2,522 - 10,120
Other - 1,000 - - - -
Total revenue 515,935 1,823,826 2,290 120,088 - 339,988 Expenditures
Public works 334,734 138,264 - - - -
Community development - - - 50,540 - -
Social services - - - - - 40,007
Capital outlay 1,064,183 3,420 - - - 139,083
Debt service
Principal - - - - - -
Interest and fiscal charges - - - - - -
Total expenditures 141,684 1,398,917 - 50,540 - 179,090 Revenue over (under) expenditures 424,909 374,251 2,290 69,548 - 160,898 Other financing sources/(uses)
Operating transfers in/(out) - net 15,437 (79,005) - - - - (79,005) 15,437 - - - -
Change in Fund Balance 389,688 345,904 2,290 69,548 - 160,898 Fund Balance
Beginning of year, as previously stated - - 69,377 20,283 732,781 (9,698) Change within financial reporting entity (major to nonmajor) 1,622,404 867,937 - - - - Change within financial reporting entity (nonmajor to major) - - - - (732,781) - Beginning of year, as restated 1,622,404 867,937 69,377 20,283 - (9,698) End of year 1,968,308 $ 1,257,625 $ 71,667 $ 89,831 $ - $ 151,200 $ Special Revenue Fund Capital Projects Funds
244
Section 7, Item A.
53 CITY OF KERMAN COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025 Capital Project Funds Debt Service Fund Total
Kerman Public Non-major
Streets Projects Financing Governmental& Development Authority Funds Revenue
Taxes $ - $ 896,832 - $
Developer impact fees 207,340 654,774 -
Intergovernmental - 2,954,196 -
Charges for services - - 1,886Rents - 240,467 240,467Interest - 8,836 115,744 Other - - 20,170
Total revenue 240,467 216,176 4,884,069
Expenditures
Public works - - 1,647,393
Community development - - 50,540
Social services - - 83,618
Capital outlay - - 1,291,901
Debt service
Principal - 177,000 177,000Interest and fiscal charges 63,467 - 63,467 Total expenditures 240,467 - 3,313,919
Revenue over (under) expenditures 216,176 1,570,150 -
Other financing sources/(uses)
Operating transfers in/(out) - net - - (53,696)
- - (53,696)
Change in Fund Balance - 216,176 1,516,454
Fund Balance
Beginning of year, as previously stated 114,378 - 2,196,729 Change within financial reporting entity (major to nonmajor) - - 2,490,341 Change within financial reporting entity (nonmajor to major) - - (732,781) Beginning of year, as restated - 114,378 3,954,289
End of year $ - 330,554 $ 5,470,743 $
245
Section 7, Item A.

BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley, C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council
City of Kerman, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Kerman (the “City”), California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated April 16, 2026.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 246
Section 7, Item A.
55 Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

April 16, 2026
247
Section 7, Item A.

BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley, C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE

REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and City Council
City of Kerman, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Kerman (the “City”), California’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. 248
Section 7, Item A.
57 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Attachment "A"
249
Section 7, Item A.
58 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.

Accordingly, this report is not suitable for any other purpose.

April 16, 2026
Attachment "A"
250
Section 7, Item A.
59 CITY OF KERMAN

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2025
Assistance Agency or
Federal Grantor/Pass-through Listing Pass-through Federal Grantor/Program Title Number Number Expenditures
U.S. Department of Transportation
Passed through California Department of Transportation
RSTP Regional Surface Transportation Program 20.205 STPL5291(025) $ 15,262 Congestion Mitigation and Air Quality Grant Program 20.205 STPL5291(027) 15,050 Congestion Mitigation and Air Quality Grant Program 20.205 CML5291(031) 383 Surface Transportation Block Grant Program 20.205 STPL5291(033) 736,409 Surface Transportation Block Grant Program 20.205 STPL5291(034) 455,349 Surface Transportation Block Grant Program 20.205 HSIPSL5291(036) 28,483 Surface Transportation Block Grant Program 20.205 STPL5291(037) 14,432 Surface Transportation Block Grant Program 20.205 STPL5291(038) 3,043 RSTP Regional Surface Transportation Program 20.205 STPL5291(039) 8,829 1,277,240
U.S. Department of Housing and Urban Development
Passed through County of Fresno
Community Development Block Grant 14.218 09371 1,395
U.S. Department of Justice
Homeland Security Grant Program 97.067 019-00000 4,954
U.S. Department of Treasury
Passed through the County of Fresno
Coronavirus State and Local Fiscal Recovery Fund 21.027 N/A 1,806,555 Total Federal Expenditures $ 3,090,144
Attachment "A"
251
Section 7, Item A.
60 CITY OF KERMAN

NOTES SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2025
Note 1 – Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Kerman, California (the City). Federal awards received directly from federal agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.

Note 2 – Basis of Accounting
The accompanying SEFA is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1 to the City’s basic financial statements. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Therefore, some amounts presented in, or used in the preparation of, the SEFA may differ from amounts presented in the basic financial statements.

Note 3 – Relationship to the Financial Statements
Expenditures of federal awards are reported in the City’s basic financial statements as expenditures/expenses in the General Fund, nonmajor special revenue funds, nonmajor capital project funds, and the enterprise funds.

Note 4 – Indirect Cost Rate
The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414.

Attachment "A"
252
Section 7, Item A.
61 CITY OF KERMAN

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2025
A. Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: Unmodified

Internal control over financial reporting:
 Material weaknesses identified? Yes No
 Significant deficiency(ies) identified? Yes None reported Non-compliance material to financial statements
noted? Yes No
Federal Awards
Internal control over major programs:
 Material weaknesses identified? Yes No
 Significant deficiency(ies) identified? Yes None reported Type of auditor’s report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR
200.516(a)? Yes No
Identification of Major Programs
Assistance Listing Number Name of Federal Program or Cluster

21.207 Coronavirus State and Local Fiscal Recovery
Funds
Dollar threshold used to distinguish between
Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? Yes No
B. Findings – Financial Statements Audit
None noted.

C. Findings and Questioned Costs – Major Federal Award Programs Audit None noted.

Attachment "A"
253
Section 7, Item A.
62 CITY OF KERMAN

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2025
There were no prior year audit findings.

Attachment "A"
254
Section 7, Item A.

CITY OF KERMAN

MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2025
Attachment 'B'
255
Section 7, Item A.
2 TABLE OF

CONTENTS
Page
Required Communications 1 - 3
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Section 7, Item A.

BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 To the Honorable Mayor and City Council
City of Kerman, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Kerman for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 18, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements.

No new accounting policies were adopted and the application of existing policies was not changed during 2025. We noted no transactions entered into by City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
 Management has determined the economic useful lives of fixed assets based on past history of similar types of assets, future plans as to their use, and other factors that impact their economic value to the City. We evaluated the key factors and assumptions used by management in computing depreciation expense and believe that it is reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the allowance for doubtful accounts is based on an evaluation of collectability primarily focused on past due accounts. We evaluated the key factors and assumptions used to develop the allowance for doubtful accounts in determining that it is reasonable in relation to the financial statements as a whole. 257
Section 7, Item A.
2  Management’s estimate of the net pension liability and related deferrals is based on actuarial valuations which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary increases and investment rate of return. We evaluated the key factors and assumptions used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of the audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated April 16, 2026.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to City of Kerman’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
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Section 7, Item A.
3 Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Kerman’s auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedules, Proportionate Share of Net Pension Liability, and Schedule of Contributions which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on supplementary information, as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Restriction on Use
This information is intended solely for the information and use of the City Council and management of City of Kerman and is not intended to be, and should not be, used by anyone other than these specified parties.

April 16, 2026
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Section 7, Item A.

STAFF REPORT
MEETING DATE: April 22, 2026
PRESENTER: John Jansons, City Manager
Hilda Montoy, City Attorney
SUBJECT: An Ordinance of the City Council of the City Of Kerman Amending Section 2.55.060 of Title 2, Chapter 2.55 of The Kerman Municipal Code to Adjust the Boundaries of City Council Election District Nos. 1, 3, And 4 and Add Annexed Property to the City Council District Boundaries Map. (JAJ & HCM)
RECOMMENDATION: Council waive full reading and introduce ordinance of the City Council of the City of Kerman amending Section 2.55.060 of Title 2, Chapter 2.55 of the Kerman Municipal Code to adjust the boundaries of City Council Election District Nos. 1, 3, and 4 and Adding Annexed Property to the City Council District Boundaries Map.

DISCUSSION:

On July 28, 2018, the City Council adopted an ordinance creating by-district elections requiring that the City be divided into four councilmember districts and that councilmembers for those districts be elected by district, and said ordinance is codified in Chapter 2.55 of Title 2 of the Kerman Municipal Code.

On March 23, 2022, the City Council adopted Ordinance No. 22-02 updating the ordinance based on the most recent U.S. Census and pursuant to the procedures under the Voting Rights Act and California Fair Maps Act; and
Kerman Municipal Code Section 2.55.060 includes a Council District Boundaries Map. Since the adoption of the last Council District Boundaries Map, the City has annexed territory to the City of Kerman which now requires inclusion into the Council District Boundaries to reflect that Certificates of Completion for Annexation were recorded by LAFCO for the following areas:

1. “Whitesbridge-Siskiyou No. 2018-1 Reorganization”; LAFCo File No. RO-20-03;

2. “Eastside Community Park Reorganization”; LAFCo File No. RO-20-08; .

3. “Whispering Falls Reorganization”; LAFCo File No. RO-25-01;

4. “Crown Schaad Reorganization”; LAFCo File No. RO-24-08; and

5. “Del Norte Estates Reorganization”; LAFCo File No. RO-25-06.

Accordingly, the California Elections Code Section 21603(A) states: “[If] the boundaries of a city expand by the addition of new territory, including through annexation of unincorporated territory or consolidation with another city, the council shall add that new territory to the nearest existing council district without changing the boundaries of other council district boundaries.”
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Section 7, Item B.

The City Council now desires to enact this Ordinance to add the annexed territories to Council Districts 1, 3, and 4. Adding the annexed territories to Council Districts necessitates the amendment of the City Council District Boundaries Map.

As result, Subsection E of Section 2.55.060 of Title 2, Chapter 2.55 Of The Kerman Municipal Code is amended to read as follows:

E. City Council Districts Established.

1. The district boundaries for the four city council districts shall be as depicted on the “City Council District Boundaries Map” in Exhibit ‘A’ of Ordinance No. 26-__ and on file in the City Clerk’s Office which is hereby adopted and incorporated herein by this reference.

2. The City Council district boundaries established under this section shall continue in effect until they are amended or repealed by ordinance in accordance with law. The boundaries of the city council districts shall be reapportioned from time to time as required by the California Elections Code, federal and state voting rights laws, or any other applicable law.

As more territory is annexed to the City, the Council District Boundaries Map will be amended by ordinance. Additionally, all the districts’ boundaries will be reviewed and adjusted by ordinance as part of the decennial process.

Adjustment of the boundaries will ensure that any residents in the annexed areas will be able to vote in the next City election.

ENVIRONMENTAL REVIEW:

This activity is exempt from environmental review under the California Environmental Quality Act (“CEQA”) (Pub. Resources Code, § 21000 et seq.) pursuant to State CEQA Guidelines, (Cal.

Code Regs., tit. 14, § 15000 et seq.) §§ 15061(b)(3), 15320, and 15378(b)(3). The redistricting process is an organizational and administrative activity of the City, does not have the potential to result in either a direct or reasonably foreseeable indirect physical change in the environment, and is therefore not a project for purposes of CEQA. (State CEQA Guidelines, §§ 15061(b)(3); 15378(b)(5).) In the event the transition process does constitute a project, it is categorically exempt under the Class 20 (Changes in the Organization of Local Governments) categorical exemption. (State CEQA Guidelines, § 15320.) None of the exceptions to the exemptions found in State CEQA Guidelines, § 15300.2 apply.

If any section, subsection, sentence, clause, phrase, or part of the proposed ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining sections, subsections, sentences, clauses, phrase, or portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. 261
Section 7, Item B.

FISCAL IMPACT:

None.

CONCLUSION:

If this Ordinance is adopted, it shall become effective thirty days after its adoption and the City Clerk shall notify the Elections Office of the adjusted boundaries.

ATTACHMENTS:

A. Proposed Ordinance w/Exhibit
262
Section 7, Item B.

Page 1 of 3 ends

Kerman City CouncilApril 22, 2026

Kerman City Council
April 22, 2026