Kerman City Council
September 9, 2026

CITY COUNCIL REGULAR MEETING AGENDA
Wednesday, September 09, 2026 at 6:00 PM
City Hall, 850 S. Madera Avenue, Kerman, CA 93630
Zoom: Kerman City Council Meeting
Telephone Number: (669) 900-6833
Meeting ID: 832 7703 1207
Passcode: 93630
Dial *9 to raise hand. Once called upon, dial *6 to unmute.

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 - Hispanic Heritage Month
1 4. PUBLIC FORUM (for matters not on agenda)
This portion of the meeting is reserved for members of the public to address the Council on items of interest that are not on the Agenda and are within the subject matter jurisdiction of the Council.

Speakers shall be limited to three minutes. It is requested that no comments be made during this period on items on the Agenda. Members of the public wishing to address the Council on items on the Agenda should notify the Mayor when that Agenda item is called, and the Mayor will recognize your discussion at that time. It should be noted that the Council is prohibited by law from taking any action on matters discussed that are not on the Agenda. Speakers are asked to please use the microphone and provide their name. Participants on Zoom who wish to address the Council raise your digital hand now or dial *9 to indicate you wish to speak. Once called upon, dial *6.

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 - August 26, 2026
RECOMMENDATION: Council approve minutes as presented.

B. SUBJECT: Warrants (JA)

1. Nos. 35598-35678 $1,083,443.23 ACH $135,939.59.

RECOMMENDATION: Council approve warrants and electronic bank transfers as presented. (Pursuant to Government Code 37208)
C. SUBJECT: Payroll (JA)
08/02/26 to 08/15/26: $279,406.32; Retro Pay & Other: $644.55; Overtime: $15,724.39; Holiday: $0.00; Standby: $2,480.18; Comp Time Earned: 35.00 RECOMMENDATION: Council approve payroll as presented.

D. SUBJECT: Adopting Amendments to the Conflict of Interest Code (DSZ) RECOMMENDATION: Council approve Resolution Adopting Updated Conflict of Interest Code and rescinding Resolution No. 24-72.

E. SUBJECT: Resolution Approving Side Letter Agreement with the Kerman Miscellaneous Employees Association (KMEA) for Conversion of Negotiated Holiday (JAJ) RECOMMENDATION: Council adopt the resolution approving side letter agreement with the Kerman Miscellaneous Employees Association (KMEA) for conversion of negotiated holiday. 2 6. PUBLIC HEARINGS – None.

7. DEPARTMENT REPORTS
A. SUBJECT: Resolution Accepting the Water Tank Painting Project and Authorizing Filing of the Notice of Completion (MB)
RECOMMENDATION: Council by motion adopt resolution accepting the Water Tank Painting Project and authorizing City Staff to record the Notice of Completion.

B. SUBJECT: Matters relating to the Application and Agreements with the State Water Resources Control Board for the Water Supply Well No.33 Project and Declaring City’s Official Intent to Reimburse Expenditures (JAJ)
RECOMMENDATION: Council adopt:
1) Resolution Authorizing the City Manager to apply for and execute financial assistance agreement(s) with the State Water Resources Control Board for the Water Supply Well No.33 Project; and
2) Resolution Declaring City’s official intent to reimburse expenditures for the Water Supply Well No.33 Project.

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
If desired, members of the public may comment on Closed Session items. Members of the public wishing to address Council on Closed Session items should notify the Mayor when that item is called, and the Mayor will recognize your discussion at that time. It should be noted that Council is prohibited from discussing or addressing comments on Closed Session items.

A. Public Employee Performance Evaluation pursuant to Government Code Section 54957 Title: City Manager

11. ADJOURNMENT
3 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) 550-1510. The Policy provides a procedure for receiving and resolving requests for accommodation to participate in this meeting. If you need assistance in order to attend this Council meeting or require auxiliary aids or services, e.g., hearing aids or signing services to make a presentation to the Council, please contact the City Clerk at (559) 550-1510 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, City 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: September 4, 2026 /s/ Dalia Santana-Zamudio, City Clerk 4 HISPANIC HERITAGE MONTH 2026
SEPTEMBER 15TH TO OCTOBER 15TH
“Pioneers of Change: Shaping the Future Together” and
Unidos Somos Más/Together We Are More
WHEREAS, Hispanic Heritage Month is a month-long celebration of Hispanic and Latino history and culture and is important because it provides an opportunity to celebrate the integral part the Hispanic/Latino community has had in growing and strengthening our community; and
WHEREAS, Hispanic Heritage Month provides an additional opportunity to explore the incredible impact Latinas and Latinos have had on the United States, California, Fresno County and Kerman; and
WHEREAS, Hispanic Heritage Month began as a week-long celebration in 1968 under President Johnson and was expanded to a month by President Reagan 20 years later in 1988.

The month-long celebration provides more time to properly recognize the significant contributions Hispanic/Latino Americans have made in the United States; and WHEREAS, Hispanic Heritage Month does not cover one single month but instead begins in the middle of September and ends in the middle of October. The timeframe of this month is significant because many Central American countries celebrate their independence days within these dates, beginning on September 15 with Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. By aligning with these independence dates, Hispanic Heritage Month honors the resilience and determination of the Hispanic community; and WHEREAS, the Kerman City Council celebrates the 2026 theme of, “Pioneers of Change: Shaping the Future Together” and Unidos Somos Más/Together We Are More, to recognize Latinos and Latinas that continue to shape our nation, as artists, business owners, community leaders, families, service men and women, public servants, and more.

NOW, THEREFORE, BE IT PROCLAIMED, that the City Council of the City of Kerman hereby proclaim September 15th - October 15th, 2026 as Hispanic Heritage Month and encourage the citizens of Kerman to celebrate and honor Hispanic heritage.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Official Seal of the City of Kerman to be affixed on this 9thth day of September, 2026. ________________________
Maria Pacheco
Mayor
5 Section 3, Item A.

CITY COUNCIL REGULAR MEETING MINUTES
Wednesday, August 26, 2026 at 6:00 PM
City Hall, 850 S. Madera Avenue, Kerman, CA 93630

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

B. Roll Call – All members present.

C. Invocation – Performed by Lieutenant Wil Barcoma.

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 passes 5-0-0-0.

3. PRESENTATIONS/CEREMONIAL MATTERS
A. “No Kill Shelter” Designation Awarded to Kerman Animal Shelter by Best Friend’s Animal Society (SW) – Presentation by Lieutenant Wil Barcoma. Sergeant Patrick Clark and Animal Control Officer Kelly Mejia were also in attendance.

B. Special Recognition (JAJ) – A Certificate of a Certified Municipal Clerk (CMC) designation was presented to City Clerk Dalia Santana-Zamudio.

4. PUBLIC FORUM- None

5. CONSENT CALENDAR
A. SUBJECT: Minutes - August 12, 2026
RECOMMENDATION: Council approve minutes as presented.
6 Section 5, Item A.

B. SUBJECT: Warrants (JA)

1. Nos. 35474-35597 $1,496,967.68 ACH $133,737.71.

RECOMMENDATION: Council approve warrants and electronic bank transfers as presented. (Pursuant to Government Code 37208)
C. SUBJECT: Payroll (JA)
7/19/26 to 8/1/26: $286,404.53; Retro Pay & Other: $2,421.43; Overtime: $11,929.11; Holiday:
$0.00; Standby: $2,373.83; Comp Time Earned: 37.50
RECOMMENDATION: Council approve payroll as presented.

D. SUBJECT: Consideration of Second Amendment to a Consultant Services Agreement with Rod Carsey, Consulting and Plan Review Services for Building Plan Checking Services (JAJ) RECOMMENDATION: Council adopt a resolution approving a Second Amendment to Consultant Services Agreement with Rod Carsey, Consulting and Plan Review Services for building plan checking services. – Res. 26-68
E. SUBJECT: Resolution Approving Award of Contract for Orchard Removal at the Wastewater Treatment Plant Complex to JFS Enterprises, Inc. (JG)
RECOMMENDATION: Council adopt the resolution:

1. Awarding contract for orchard removal the Wastewater Treatment Plant Complex to JFS Enterprises, Inc. in the amount of $107,250.00; and

2. Authorizing a 10% construction contingency in the amount of $10,700.00; and

3. Authorizing the City Manager to sign the construction contract on behalf of the City; and

4. Authorizing the City Manager to sign change orders, up to the additional contingency amount, on behalf of the City. – Res. 26-69
Motion made by Mayor Pro Tem Yep, Seconded by Councilmember Hall.

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

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

6. PUBLIC HEARINGS – None.
7 Section 5, Item A.

7. DEPARTMENT REPORTS
A. SUBJECT: Approval of Independent Instructor Agreement with Rebecca Klepac to instruct feebased Yoga classes for the Parks, Recreation and Community Services Department (TJ) RECOMMENDATION: Council adopt a resolution approving an Independent Instructor Agreement with Rebecca Klepac to instruct fee-based Yoga classes and authorize the City Manager to execute the contract. – Res. 26-70
Motion made by Councilmember Herrera, Seconded by Mayor Pro Tem Yep.

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

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

B. SUBJECT: Consideration of Street Naming Request In Recognition of Jay Gill (JAJ) RECOMMENDATION: Council consider the street naming request, determine whether to approve the request regarding part or all of Isabella Avenue, and provide direction to Staff on development of a Street Naming Policy.

Public comments made by Jay Gill and William Skinner.

Motion by Mayor Pro Tem Yep to rename Isabella Avenue to Jay Gill Avenue from Madera Avenue to First Street. No Second, motion fails.

Motion made by Mayor Pacheco to rename Isabella Avenue to Jay Gill Avenue from Madera Avenue to Del Norte Avenue, Seconded by Councilmember Dhaliwal.

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

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

Motion made by Councilmember Herrera to direct staff to prepare a protocol for street naming, Seconded by Councilmember Dhaliwal.

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

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

C. SUBJECT: Resolution Approving Construction Contract Change Order No. 8 for the Hart Ranch Community Park Project (JG)
RECOMMENDATION: Council adopt the resolution:
8 Section 5, Item A.

1. Approving Construction Contract Change Order No. 8 for the Hart Ranch Community Park Project to Avison Construction, Inc. in the amount of $171,131.00; and

2. Authorizing the City Manager to sign Construction Contract Change Order No. 8 on behalf of the City; and

3. Authorizing an additional construction contingency in the amount of $50,000 and authorizing the City Manager to sign future change orders up to $50,000. – Res. 26-71 Motion made by Councilmember Dhaliwal, Seconded by Councilmember Herrera.

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

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

8. CITY MANAGER/STAFF COMMUNICATIONS

9. MAYOR/COUNCIL REPORTS/ANNOUNCEMENTS/FUTURE AGENDA ITEMS Councilmember Dhaliwal requests an item be placed on a future agenda for Council to review the current Park Naming Policy and discuss possible amendments.

10. CLOSED SESSION – Recess at 7:25 p.m.

A. Public Employee Performance Evaluation pursuant to Government Code Section 54957 Title: City Manager
B. Conference with Labor Negotiators pursuant to Government Code Section 54957.6 City Designated Representatives: Mayor Pacheco and Mayor Pro Tem Yep Unrepresented Employee: City Manager
Reconvened at 9:51 p.m. with no reportable action.

11. ADJOURNMENT – 9:52 p.m.

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

Date: August 27, 2026 /s/ Dalia Santana-Zamudio, City Clerk 9 Section 5, Item A.

Accounts Payable
User:

Printed:

VSandoval
8/27/2026 10:39 AM
Checks by Date - Summary by Check Date
Check No Vendor No Vendor Name Check Date Check Amount
ACH 10644 US BANK EQUIPMENT FINANCE 08/19/2026 710.78
ACH 10341 STATE BOARD OF EQUALIZATION 08/19/2026 20.17
Total for 8/19/2026: 730.95
35598 12683 ARSENAL WELL DRILLING INC 08/20/2026 940.00 35599 10040 AT&T MOBILITY 08/20/2026 2,540.63
35600 13093 BLACKSTONE CHEVROLET CADILLAC08/20/2026 881.16 35601 11917 BLAIS & ASSOCIATES LLC 08/20/2026 2,559.00
35602 10617 C A REDING CO INC 08/20/2026 111.79
35603 11498 COMCAST CABLE COMMUNICATIONS MANAGEMENT LLC 08/20/2026 754.55 35604 11874 CSG CONSULTANTS INC 08/20/2026 13,119.00
35605 13094 DAVE CHRISTIAN CONST CO INC 08/20/2026 146,926.21 35606 10139 DOOLEY ENTERPRISES INC 08/20/2026 13,219.64 35607 10157 FERGUSON ENTERPRISES INC 08/20/2026 1,971.73 35608 10169 FRESNO PET CEMETERY 08/20/2026 264.40
35609 12379 GILL CHEVROLET 08/20/2026 119.16
35610 11358 GREAT AMERICA FINANCIAL SERVICES08/20/2026 590.70 35611 11468 GREEN HILLS NURSERY INC 08/20/2026 208.03
35612 13005 H.CO COMPUTER PRODUCTS 08/20/2026 2,506.43
35613 10213 INTERNATIONAL CODE COUNCIL INC 08/20/2026 58.50 35614 10219 JENSEN & PILEGARD INC 08/20/2026 111.68
35615 10485 JP AIR CONDITIONING & HEATING 08/20/2026 595.00 35616 10238 KERMAN UNIFIED SCHOOL DIST 08/20/2026 440.45 35617 11798 KASSANDRA KLEIN 08/20/2026 252.33
35618 11096 LOZANO SMITH LLP 08/20/2026 79.00
35619 11476 GEORGINA MERCADO 08/20/2026 450.00
35620 12881 MINERAL KING PUBLISHING INC 08/20/2026 810.75 35621 11965 MISSION UNIFORM SERVICE 08/20/2026 84.30
35622 13092 SAUL MOJICA 08/20/2026 150.00
35623 10286 O'REILLY AUTOMOTIVE INC 08/20/2026 1,708.71 35624 10289 P.G.& E. 08/20/2026 88,725.12
35625 12053 R & L MUSIC ENT 08/20/2026 450.00
35626 12475 SAN JOAQUIN PEST CONTROL 08/20/2026 105.00
35627 10862 SIGNMAX 08/20/2026 297.42
35628 11650 SITEONE LANDSCAPE SUPPLY, LLC 08/20/2026 1,624.16 35629 13027 STAPLES CONTRACT & COMMERCIAL LLC 08/20/2026 40.33 35630 11460 SUPERIOR POOL PRODUCTS LLC 08/20/2026 1,712.00 35631 10357 TAYLOR MADE IRRIGATION 08/20/2026 275.21
35632 10015 THE ADVANCE GROUP INC 08/20/2026 1,744.91
35633 10363 THE BUSINESS JOURNAL 08/20/2026 1,918.00
35634 10754 THE HOME DEPOT PRO-SUPPLY WORKS08/20/2026 989.56 35635 12609 THREE-WAY CHEVROLET-CADILLAC 08/20/2026 92,112.72 35636 10378 ULINE INC 08/20/2026 590.82
35637 10391 VALLEY FARM SUPPLY STORES 08/20/2026 3,489.07 35638 12290 VERIZON 08/20/2026 83.60
35639 10406 WEST HILLS OIL INC 08/20/2026 12,686.47
AP Checks by Date - Summary by Check Date (8/27/2026 10:39 AM) Page 1 10 Section 5, Item B.

Check No Vendor No Vendor Name Check Date Check Amount
35640 12267 IRENE ZAMORA 08/20/2026 150.00
Total for 8/20/2026: 398,447.54
ACH 10147 EMPLOYMENT DEVELOPMENT DEPARTMENT 08/21/2026 11,442.17 ACH 10517 FEDERAL TAXES PAYROLL 08/21/2026 66,513.26
ACH 10518 KERMAN POLICE OFFICERS ASSN 08/21/2026 938.25 ACH 10519 KERMAN MUNICIPAL EMPLOYEES ASSN08/21/2026 277.50 ACH 10520 ICMA-RC 08/21/2026 7,469.45
ACH 10522 CALPERS 08/21/2026 48,568.01
Total for 8/21/2026: 135,208.64
35641 12538 AMERITAS GROUP INSURANCE CORP- DENTAL FEES 08/26/2026 461.50 35642 12257 AMERITAS LIFE INSURANCE CORP- VISION FEES 08/26/2026 1,043.60 35643 10545 WILBERT BARCOMA 08/26/2026 243.00
35644 12995 BEARRY GOOD HEATING AND COOLING LLC 08/26/2026 1,545.34 35645 10054 BLUE SHIELD OF CALIFORNIA 08/26/2026 71,297.36 35646 10218 JEANNA BURDINE-SLAVEN 08/26/2026 115.73
35647 10617 C A REDING CO INC 08/26/2026 388.12
35648 10078 CALIFORNIA STATE DISBURSEMENT 08/26/2026 969.23 35649 12844 CALIFORNIA STATE DISBURSEMENT CALIFORNIA STATE DISBURSEMENT 08/26/2026 161.53 35650 12266 BIANCA CASTILLO 08/26/2026 150.00
35651 12315 CENTRAL CALIFORNIA SPCA 08/26/2026 180.00
35652 10092 CENTRAL VALLEY TOXICOLOGY INC 08/26/2026 258.00 35653 10564 CITY OF KERMAN 08/26/2026 454.00
35654 11259 CIVIC PLUS INC 08/26/2026 7,500.00
35655 10103 COLONIAL LIFE 08/26/2026 1,495.49
35656 10105 COMMUNITY HOSPITALS OF CENTRAL CALIFORNIA 08/26/2026 525.00 35657 BP-D PI D PIMENTELS ARK CONSTRUCTION INC08/26/2026 494.49 35658 11212 STEVEN EVSEFF 08/26/2026 485.00
35659 11167 FRESNO COUNTY TAX COLLECTOR 08/26/2026 63.35 35660 12379 GILL CHEVROLET 08/26/2026 63,140.10
35661 10185 GRAINGER 08/26/2026 286.56
35662 12184 JESSICA HERNANDEZ 08/26/2026 150.00
35663 11923 JOE A GONSALVES & SON 08/26/2026 1,250.00
35664 10485 JP AIR CONDITIONING & HEATING 08/26/2026 1,891.14 35665 11365 LC ACTION POLICE SUPPLY LTD 08/26/2026 6,599.02 35666 10250 LIEBERT CASSIDY WHITMORE 08/26/2026 3,937.50 35667 10752 LION PRINTS (KERMAN HIGH SCHOOL)08/26/2026 150.00 35668 11965 MISSION UNIFORM SERVICE 08/26/2026 84.30
35669 10289 P.G.& E. 08/26/2026 1,512.43
35670 12523 PAMOIST PET HOSPITAL 08/26/2026 1,555.00
35671 12686 YESENIA REYES 08/26/2026 450.00
35672 12804 CHRISTOPHER SCOTT 08/26/2026 103.53
35673 10346 STATE WATER RESOURCE CNTRL BRD 08/26/2026 276,742.86 35674 10754 THE HOME DEPOT PRO-SUPPLY WORKS08/26/2026 1,711.71 35675 10378 ULINE INC 08/26/2026 223.17
35676 10382 UNITED RENTALS NORTH AMERICA INC08/26/2026 432.68 35677 12575 STEVE WILKINS 08/26/2026 243.00
35678 10413 YAMABE & HORN ENGINEERING INC 08/26/2026 236,701.95 Total for 8/26/2026: 684,995.69
AP Checks by Date - Summary by Check Date (8/27/2026 10:39 AM) Page 2 11 Section 5, Item B.

Check No Vendor No Vendor Name Check Date Check Amount
Report Total (89 checks): 1,219,382.82
AP Checks by Date - Summary by Check Date (8/27/2026 10:39 AM) Page 3 12 Section 5, Item B.

CITY OF KERMAN PAYROLL REPORT

RETRO PAY GROSS COMP TIME
& OTHER Hours Amount Hours Amount Hours Amount SALARY EARNED Grand Total $ 279,406.32 $ 644.55 273.62 $ 15,724.39 - $ - 64.00 $ 2,480.18 $ 298,255.44 35.00 PAY PERIOD:August 02, 2026 - August 15, 2026
OVERTIME HOLIDAY at 1/2 TIME STANDBY Salary

13 Section 5, Item C.

STAFF REPORT
MEETING DATE: September 9, 2026
PRESENTER: Dalia Santana-Zamudio, City Clerk
SUBJECT: Adopting Amendments to the Conflict of Interest Code (DSZ) RECOMMENDATION: Council approve Resolution Adopting Updated Conflict of Interest Code and rescinding Resolution No. 24-72.

EXECUTIVE SUMMARY:

The City of Kerman has adopted Conflict of Interest Codes in compliance with the Political Reform Act. Pursuant to Government Code Section 87300, the City is required to review biennially its Conflict of Interest Code. The City has conducted a biennial review and there is a need to update the Code.

The proposed Conflict of Interest Code (Exhibit ‘A’) identifies officials, employees, commissioners, and consultants who are required to file a Statement of Economic Interest Form 700 upon assuming office, annually thereafter, and upon leaving office. Designated individuals must recuse themselves when conflicts of interest occur.

Staff is recommending that the Code be updated. Changes to the code include changes in positions including: updating the “City Clerk/Executive Assistant to CM” title to “City Clerk”.

The most current version of the applicable FPPC regulation has also been added to the Code as Appendix C.

FISCAL IMPACT:

None.

ATTACHMENTS:

A. Resolution w/Exhibit (Code and Appendices)
14 Section 5, Item D.

Attachment ‘A’
RESOLUTION NO. 26-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN
ADOPTING AN UPDATED CONFLICT OF INTEREST CODE AND RESCINDING RESOLUTION NO. 24-72
WHEREAS, the Political Reform Act (Government Code Section 81000 et seq.) requires local government agencies to adopt and promulgate conflict of interest codes, and to conduct a biennial review and revise them if necessary; and
WHEREAS, the Fair Political Practices Commission (FPPC) has adopted a regulation (2 Cal.

Code of Regs. 18730) which contains the terms of a standard conflict of interest code which may be incorporated by reference in an agency’s code, and which may be amended by the FPPC to conform to amendments in the Political Reform Act, following public notice and hearings; and WHEREAS, the City has conducted its biennial review of the current Conflict of Interest Code which the City last reviewed in 2024 pursuant to Government Code Section 87300; and WHEREAS, the City has determined amendments to the Code are necessary in accordance with the applicable laws, regulations, and guidelines including new positions and deleted positions.

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

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

2. Having undertaken its biennial review, the City Council hereby adopts an updated Conflict of Interest Code as set forth in Exhibit ‘A’.

3. Resolution No. 24-72 and any other resolutions in conflict with this resolution are rescinded.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 9th day of September, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
15 Section 5, Item D.

The foregoing resolution is hereby approved.
_________________________
Maria Pacheco
ATTEST: Mayor
__________________________
Dalia Santana-Zamudio
City Clerk
16 Section 5, Item D.

Exhibit ‘A’

CONFLICT OF INTEREST CODE OF THE CITY OF KERMAN
A. Purpose and Intent.

The City Council hereby intends to implement Government Code Section 87300 through 87313 pertaining to conflict of interest codes for local agencies.

B. Conflict of Interest Code.

The Political Reform Act (Government Code Sections 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict-of-interest codes. The Fair Political Practices Commission (FPPC) has adopted a regulation (2 Cal. Code of Regs. Section 18730) that contains the terms of a standard conflict-of-interest code that may be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the FPPC to conform to amendments in the Political Reform Act.

This is the Conflict of Interest Code of the City of Kerman. It consists of Sections A through G and in particular the terms of 2 California Code of Regulations Section 18730 and any amendments thereto duly adopted by the FPPC.

C. Public Officials Designated by Statute
The positions listed below are public officials designated by statute and are required to file with the FPPC a Statement of Economic Interests Form 700 pursuant to Government Code Section 87200.
• Mayor
• City Council Members
• City Attorney
• City Treasurer/Finance Director
• Planning Commissioners
A copy of the Form 700 will be retained by the City. Notwithstanding this, for convenience the City of Kerman is also listing these officials in the Designated Positions described in Section 3 below and in Appendix A.

D. Designated Positions and Disclosure Categories
Persons holding positions listed as designated position under this section D shall file with the City Clerk a Statement of Economic Interests Form 700 upon assuming office, annually thereafter, and upon leaving office. Form 700s are public records and are available for public inspection and reproduction from the City Clerk. (Gov. Code Section 81008) The City Clerk is the Filing Officer.
17 Section 5, Item D.

The designated positions are set forth in Appendix A which is incorporated by reference to this Conflict of Interest Code. The Disclosure Categories are set forth in Appendix B which is incorporated by reference to this Conflict of Interest Code.

E. Prior Conflicts of Interest Codes Superseded.

The provisions of all Conflict of Interest Codes and amendments thereto previously adopted by the City are hereby superseded and have no further force and effect.

F. Effective Date.

This Conflict of Interest Code is deemed effective on August 24, 2026.

G. Appendices.

The following Appendices are incorporated herein by reference and deemed a part of this Conflict of Interest Code:

1. Appendix A: Designated Positions

2. Appendix B: Disclosure Categories

3. Appendix C: 2 California Code of Regulations Section 18730 It must be noted that Appendix C is the current version of regulation Section 18730 as described in Section B above. As stated, the FPPC may from time to time amend Section 18730 and for that reason, the FPPC website should be reviewed by persons in designated positions.
18 Section 5, Item D.

APPENDIX A TO CONFLICT OF INTEREST CODE

DESIGNATED POSITIONS
Designated Positions Disclosure Categories
• Mayor 1,2,3,4,5,6
• City Council Members 1,2,3,4,5,6
• Planning Commissioners 1,2,3,4,5,6
• City Manager 1,2,3,4,5,6
• Finance Director/City Treasurer 1,2,3,4,5,6
• City Clerk 1,2,3,4,5,6
• City Attorney 1,2,3,4,5,6
• Public Works Director 1,2,3,4,5,6
• Chief of Police 1,2,3,4,5,6
• Community Services Director 1,2,3,4,5,6
• Community Development Director 1,2,3,4,5,6
• (Contract) City Engineer 1,2,3,4,5,6
• Consultants *
* Consultants shall be included in the list of designated positions and shall disclose pursuant to the disclosure requirements in this code subject to the following limitation:

The City Manager may determine in writing that a particular consultant, although a “designated position,” is hired to perform a range of duties that is limited in scope and thus is not required to comply fully with the disclosure requirements in this section. Such written determination shall include a description of the consultant’s duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager’s determination is a public record and shall be retained for public inspection in the same manner and location as this conflict-of-interest code. (Gov. Code Sec. 81008.)
19 Section 5, Item D.

APPENDIX B TO CONFLICT OF INTEREST CODE

DISCLOSURE CATEGORIES
Individuals holding designated positions must report their interests according to their assigned disclosure category (ies).

Disclosure Category 1
Interests in real property located within the jurisdiction or within two miles of the boundaries of the jurisdiction or within two miles of any land owned or used by the agency; and investments and business positions in business entities, and income, including loans, gifts, and travel payments, from all sources.

Disclosure Category 2
Interests in real property located within the jurisdiction or within two miles of the boundaries of the jurisdiction or within two miles of any land owned or used by the agency.

Disclosure Category 3
Investments and business positions in business entities, and income, including loans, gifts, and travel payments, from sources, that provide services, supplies, materials, machinery, or equipment of the type utilized by the agency.

Disclosure Category 4
Investments and business positions in business entities, and income, including loans, gifts, and travel payments, from sources, that provide services, supplies, materials, machinery, or equipment of the type utilized by the designated position’s division or department.

Disclosure Category 5
Investments and business positions in business entities, and income, including loans, gifts, and travel payments, from sources, that filed a claim against the agency during the previous two years, or have a claim pending.

Disclosure Category 6
Investments and business positions in business entities, and income, including loans, gifts, and travel payments, from sources of the type to request an entitlement to use agency property or facilities, including, but not limited to:
• a license
• a permit
20 Section 5, Item D.

APPENDIX C TO CONFLICT OF INTEREST CODE
(Regulations of the Fair Political Practices Commission, Title 2, Division 6, California Code of Regulations, Section 18730)
21 Section 5, Item D.
1 (Regulations of the Fair Political Practices Commission, Title 2, Division 6, California Code of Regulations)
§ 18730. Provisions of Conflict of Interest Codes.
(a) Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation of a conflict of interest code within the meaning of Section 87300 or the amendment of a conflict of interest code within the meaning of Section 87306 if the terms of this regulation are substituted for terms of a conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of article 2 of chapter 7 of the Political Reform Act, Sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Section 87100, and to other state or local laws pertaining to conflicts of interest.
(b) The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows:
(1) Section 1. Definitions.

The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (Regulations 18110, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code. (2) Section 2. Designated Employees.
22 Section 5, Item D.
2 The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on economic interests. (3) Section 3. Disclosure Categories.

This code does not establish any disclosure obligation for those designated employees who are also specified in Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their economic interests pursuant to article 2 of chapter 7 of the Political Reform Act, Sections 87200, et seq.

In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply:
(A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency;
(B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Political Reform Act, Section 87200; and (C) The filing officer is the same for both agencies. [FN1] Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of economic interests are reportable. Such a designated employee shall disclose in the employee's statement of economic interests those economic interests the employee has which are of the kind described in the disclosure categories to which the employee is assigned in the Appendix. It has been determined that the economic interests set forth in a designated employee's 23 Section 5, Item D.
3 disclosure categories are the kinds of economic interests which the employee foreseeably can affect materially through the conduct of the employee's office. (4) Section 4. Statements of Economic Interests: Place of Filing.

The code reviewing body shall instruct all designated employees within its code to file statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency's conflict of interest code or with the Fair Political Practices Commission using the Commission's electronic filing system as required under Section 87500. [FN2]
(5) Section 5. Statements of Economic Interests: Time of Filing. (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. (C) Annual Statements. All designated employees shall file statements no later than April

1. If a person reports for military service as defined in the Servicemember's Civil Relief Act, the deadline for the annual statement of economic interests is 30 days following the person's return to office, provided the person, or someone authorized to represent the person's interests, notifies the filing officer in writing prior to the applicable filing deadline that the person is subject to that 24 Section 5, Item D.
4 federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of the person's military status.
(D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office.
(5.5) Section 5.5. Statements for Persons Who Resign Prior to Assuming Office.

Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided the person did not make or participate in the making of, or use the person's position to influence any decision and did not receive or become entitled to receive any form of payment as a result of the person's appointment. Such persons shall not file either an assuming or leaving office statement.
(A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following:
(1) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation the person did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. (6) Section 6. Contents of and Period Covered by Statements of Economic Interests. (A) Contents of Initial Statements.

Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code.
25 Section 5, Item D.
5 (B) Contents of Assuming Office Statements.

Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 months prior to the date of assuming office or the date of being appointed or nominated, respectively.
(C) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee's first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later, or for a board or commission member subject to Section 87302.6, the day after the closing date of the most recent statement filed by the member pursuant to Regulation 18754. (D) Contents of Leaving Office Statements.

Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office.
(7) Section 7. Manner of Reporting.

Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information:
(A) Investment and Real Property Disclosure.

When an investment or an interest in real property [FN3] is required to be reported, [FN4] the statement shall contain the following:

1. A statement of the nature of the investment or interest; 26 Section 5, Item D.
6 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged;

3. The address or other precise location of the real property;

4. A statement whether the fair market value of the investment or interest in real property equals or exceeds $2,000, exceeds $10,000, exceeds $100,000, or exceeds $1,000,000. (B) Personal Income Disclosure. When personal income is required to be reported, [FN5] the statement shall contain:

1. The name and address of each source of income aggregating $500 or more in value, or $50 or more in value if the income was a gift, and a general description of the business activity, if any, of each source;

2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was $1,000 or less, greater than $1,000, greater than $10,000, or greater than $100,000;

3. A description of the consideration, if any, for which the income was received;

4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received;

5. In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan.
(C) Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported, [FN6] the statement shall contain:

1. The name, address, and a general description of the business activity of the business entity;
27 Section 5, Item D.
7 2. The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than $10,000. (D) Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which the employee is a director, officer, partner, trustee, employee, or in which the employee holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee's position with the business entity. (E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal.
(8) Section 8. Prohibition on Receipt of Honoraria.
(A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on the member's or employee's statement of economic interests. (B) This section shall not apply to any part­time member of the governing board of any public institution of higher education, unless the member is also an elected official. (C) Subdivisions (a), (b), and (c) of Section 89501 shall apply to the prohibitions in this section.
(D) This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Section 89506. (8.1) Section 8.1. Prohibition on Receipt of Gifts in Excess of $630. 28 Section 5, Item D.
8 (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than $630 in a calendar year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on the member's or employee's statement of economic interests.
(B) This section shall not apply to any part­time member of the governing board of any public institution of higher education, unless the member is also an elected official. (C) Subdivisions (e), (f), and (g) of Section 89503 shall apply to the prohibitions in this section.
(8.2) Section 8.2. Loans to Public Officials.
(A) No elected officer of a state or local government agency shall, from the date of the election to office through the date that the officer vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer's agency has direction and control. (B) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official's agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (C) No elected officer of a state or local government agency shall, from the date of the election to office through the date that the officer vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer 29 Section 5, Item D.
9 has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. (D) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while the official holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (E) This section shall not apply to the following:

1. Loans made to the campaign committee of an elected officer or candidate for elective office.

2. Loans made by a public official's spouse, child, parent, grandparent, grandchild, brother, sister, parent­in­law, brother­in­law, sister­in­law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.

3. Loans from a person which, in the aggregate, do not exceed $500 at any given time. 30 Section 5, Item D.
10 4. Loans made, or offered in writing, before January 1, 1998. (8.3) Section 8.3. Loan Terms.
(A) Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of the officer's election to office through the date the officer vacates office, receive a personal loan of $500 or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (B) This section shall not apply to the following types of loans:

1. Loans made to the campaign committee of the elected officer.

2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent­in­law, brother­in­law, sister­in­law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.

3. Loans made, or offered in writing, before January 1, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code.
(8.4) Section 8.4. Personal Loans.
(A) Except as set forth in subdivision (B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances:

1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired.
31 Section 5, Item D.
11 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following:
a. The date the loan was made.
b. The date the last payment of $100 or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than $250 during the previous 12 months.
(B) This section shall not apply to the following types of loans:

1. A loan made to the campaign committee of an elected officer or a candidate for elective office.

2. A loan that would otherwise not be a gift as defined in this title.

3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due.

4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action.

Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations.

5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy.
(C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code.
(9) Section 9. Disqualification.
32 Section 5, Item D.
12 No designated employee shall make, participate in making, or in any way attempt to use the employee's official position to influence the making of any governmental decision which the employee knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of the official's immediate family or on:
(A) Any business entity in which the designated employee has a direct or indirect investment worth $2,000 or more;
(B) Any real property in which the designated employee has a direct or indirect interest worth $2,000 or more;
(C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating $500 or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $630 or more provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made.
(9.3) Section 9.3. Legally Required Participation.

No designated employee shall be prevented from making or participating in the making of any decision to the extent the employee's participation is legally required for the decision to be made. The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make the employees' participation legally required for purposes of this section. 33 Section 5, Item D.
13 (9.5) Section 9.5. Disqualification of State Officers and Employees.

In addition to the general disqualification provisions of section 9, no state administrative official shall make, participate in making, or use the official's position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of the official's immediate family has, within 12 months prior to the time when the official action is to be taken:
(A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value $1,000 or more. (10) Section 10. Disclosure of Disqualifying Interest.

When a designated employee determines that the employee should not make a governmental decision because the employee has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. (11) Section 11. Assistance of the Commission and Counsel.

Any designated employee who is unsure of the duties under this code may request assistance from the Fair Political Practices Commission pursuant to Section 83114 and Regulations 18329 and 18329.5 or from the attorney for the employee's agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. (12) Section 12. Violations.

This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the 34 Section 5, Item D.
14 Political Reform Act, Sections 81000­91014. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Section 87100 or 87450 has occurred may be set aside as void pursuant to Section 91003. [FN1]
Designated employees who are required to file statements of economic interests under any other agency's conflict of interest code, or under article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Section 81004. [FN2]
See Section 81010 and Regulation 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. [FN3]
For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer.
[FN4]
Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act.

However, investments or interests in real property of an individual include those held by the individual's spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and 35 Section 5, Item D.
15 dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater.
[FN5]
A designated employee's income includes the employee's community property interest in the income of the employee's spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. [FN6]
Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer's spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer.

Note: Authority cited: Section 83112, Government Code. Reference: Sections 87103(e), 87300­ 87302, 89501, 89502 and 89503, Government Code.

History

1. New section filed 4­2­80 as an emergency; effective upon filing (Register 80, No. 14).

Certificate of Compliance included.

2. Editorial correction (Register 80, No. 29).

3. Amendment of subsection (b) filed 1­9­81; effective thirtieth day thereafter (Register 81, No. 2).

4. Amendment of subsection (b)(7)(B)1. filed 1­26­83; effective thirtieth day thereafter (Register 83, No. 5).

5. Amendment of subsection (b)(7)(A) filed 11­10­83; effective thirtieth day thereafter (Register 83, No. 46).
36 Section 5, Item D.
16 6. Amendment filed 4­13­87; operative 5­13­87 (Register 87, No. 16).

7. Amendment of subsection (b) filed 10­21­88; operative 11­20­88 (Register 88, No. 46).

8. Amendment of subsections (b)(8)(A) and (b)(8)(B) and numerous editorial changes filed 8­28­ 90; operative 9­27­90 (Reg. 90, No. 42).

9. Amendment of subsections (b)(3), (b)(8) and renumbering of following subsections and amendment of Note filed 8­7­92; operative 9­7­92 (Register 92, No. 32).

10. Amendment of subsection (b)(5.5) and new subsections (b)(5.5)(A)­(A)(2) filed 2­4­93; operative 2­4­93 (Register 93, No. 6).

11. Change without regulatory effect adopting Conflict of Interest Code for California Mental Health Planning Council filed 11­22­93 pursuant to title 1, section 100, California Code of Regulations (Register 93, No. 48). Approved by Fair Political Practices Commission 9­21­93.

12. Change without regulatory effect redesignating Conflict of Interest Code for California Mental Health Planning Council as chapter 62, section 55100 filed 1­4­94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 1).

13. Editorial correction adding History 11 and 12 and deleting duplicate section number (Register 94, No. 17).

14. Amendment of subsection (b)(8), designation of subsection (b)(8)(A), new subsection (b)(8)(B), and amendment of subsections (b)(8.1)­(b)(8.1)(B), (b)(9)(E) and Note filed 3­14­95; operative 3­14­95 pursuant to Government Code section 11343.4(d) (Register 95, No. 11).

15. Editorial correction inserting inadvertently omitted language in footnote 4 (Register 96, No. 13).
37 Section 5, Item D.
17 16. Amendment of subsections (b)(8)(A)­(B) and (b)(8.1)(A), repealer of subsection (b)(8.1)(B), and amendment of subsection (b)(12) filed 10­23­96; operative 10­23­96 pursuant to Government Code section 11343.4(d) (Register 96, No. 43).

17. Amendment of subsections (b)(8.1) and (9)(E) filed 4­9­97; operative 4­9­97 pursuant to Government Code section 11343.4(d) (Register 97, No. 15).

18. Amendment of subsections (b)(7)(B)5., new subsections (b)(8.2)­(b)(8.4)(C) and amendment of Note filed 8­24­98; operative 8­24­98 pursuant to Government Code section 11343.4(d) (Register 98, No. 35).

19. Editorial correction of subsection (a) (Register 98, No. 47).

20. Amendment of subsections (b)(8.1), (b)(8.1)(A) and (b)(9)(E) filed 5­11­99; operative 5­11­ 99 pursuant to Government Code section 11343.4(d) (Register 99, No. 20).

21. Amendment of subsections (b)(8.1)­(b)(8.1)(A) and (b)(9)(E) filed 12­6­2000; operative 1­1­ 2001 pursuant to the 1974 version of Government Code section 11380.2 and Title 2, California Code of Regulations, section 18312(d) and (e) (Register 2000, No. 49).

22. Amendment of subsections (b)(3) and (b)(10) filed 1­10­2001; operative 2­1­2001. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2001, No. 2).

23. Amendment of subsections (b)(7)(A)4., (b)(7)(B)1.­2., (b)(8.2)(E)3., (b)(9)(A)­(C) and footnote 4. filed 2­13­2001. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third 38 Section 5, Item D.
18 Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2001, No. 7).

24. Amendment of subsections (b)(8.1)­(b)(8.1)(A) filed 1­16­2003; operative 1­1­2003.

Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2003, No. 3).

25. Editorial correction of History 24 (Register 2003, No. 12).

26. Editorial correction removing extraneous phrase in subsection (b)(9.5)(B) (Register 2004, No. 33).

27. Amendment of subsections (b)(2)­(3), (b)(3)(C), (b)(6)(C), (b)(8.1)­(b)(8.1)(A), (b)(9)(E) and (b)(11)­(12) filed 1­4­2005; operative 1­1­2005 pursuant to Government Code section 11343.4 (Register 2005, No. 1).

28. Amendment of subsection (b)(7)(A)4. filed 10­11­2005; operative 11­10­2005 (Register 2005, No. 41).

29. Amendment of subsections (a), (b)(1), (b)(3), (b)(8.1), (b)(8.1)(A) and (b)(9)(E) filed 12­18­ 2006; operative 1­1­2007. Submitted to OAL pursuant to Fair Political Practices Commission v.

Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2006, No. 51).

30. Amendment of subsections (b)(8.1)­(b)(8.1)(A) and (b)(9)(E) filed 10­31­2008; operative 11­ 30­2008. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, 39 Section 5, Item D.
19 nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2008, No. 44).

31. Amendment of section heading and section filed 11­15­2010; operative 12­15­2010.

Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2010, No. 47).

32. Amendment of section heading and subsections (a)­(b)(1), (b)(3)­(4), (b)(5)(C), (b)(8.1)­ (b)(8.1)(A) and (b)(9)(E) and amendment of footnote 1 filed 1­8­2013; operative 2­7­2013.

Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2013, No. 2).

33. Amendment of subsections (b)(8.1)­(b)(8.1)(A), (b)(8.2)(E)3. and (b)(9)(E) filed 12­15­2014; operative 1­1­2015 pursuant to section 18312(e)(1)(A), title 2, California Code of Regulations.

Submitted to OAL for filing and printing pursuant to Fair Political Practices Commission v.

Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2014, No. 51). 40 Section 5, Item D.
20 34. Redesignation of portions of subsection (b)(8)(A) as new subsections (b)(8)(B)­(D), amendment of subsections (b)(8.1)­(b)(8.1)(A), redesignation of portions of subsection (b)(8.1)(A) as new subsections (b)(8.1)(B)­(C) and amendment of subsection (b)(9)(E) filed 12­ 1­2016; operative 12­31­2016 pursuant to Cal. Code Regs. tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2016, No. 49).

35. Amendment of subsections (b)(8.1)­(b)(8.1)(A) and (b)(9)(E) filed 12­12­2018; operative 1­ 11­2019 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing and printing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2018, No. 50).

36. Amendment of subsections (b)(8.1)­(8.1)(A) filed 12­23­2020; operative 1­1­2021 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2020, No. 52). 41 Section 5, Item D.
21 37. Amendment of subsections (b)(3)(C), (b)(5)(C), (b)(5.5), (b)(5.5)(A)(2), (b)(7)(D), (b)(8)(A), (b)(8.1)(A), (b)(8.2)(A), (b)(8.2)(C)­(D), (b)(8.3)(A), (b)(9), (b)(9.3), (b)(9.5), (b)(10) and (b)(11) and footnote 5 filed 5­12­2021; operative 6­11­2021 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v.

Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2021, No. 20).

38. Amendment of subsections (b)(8.1)­(b)(8.1)(A) and (b)(9)(E) filed 12­20­2022; operative 1­ 19­2023 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2022, No. 51).

39. Amendment of subsections (b)(8.1)­(b)(8.1)(A) and (b)(9)(E) filed 2­18­2025; operative 3­ 20­2025 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2025, No. 8).
42 Section 5, Item D.
22 40. Amendment of subsection (b)(4) filed 5­8­2025; operative 6­7­2025 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2025, No. 19).
43 Section 5, Item D.

STAFF REPORT
MEETING DATE: September 9, 2026
PRESENTER: John Jansons, City Manager
SUBJECT: Resolution Approving Side Letter Agreement with the Kerman Miscellaneous Employees Association (KMEA) for Conversion of Negotiated Holiday (JAJ) RECOMMENDATION: Council adopt the resolution approving side letter agreement with the Kerman Miscellaneous Employees Association (KMEA) for conversion of negotiated holiday.

DISCUSSION:

The current Memorandum of Understanding (MOU) with the Kerman Miscellaneous Employees Association (KMEA) includes a paid holiday in observance of the Cesar Chavez birthday on March 31 of each year.

Earlier this year, disturbing allegations and revelations were publicized that have led to a request to no longer observe this holiday in Chavez’s name, but rather to simply allow eligible employees to use this paid holiday at any time during the year subject to their supervisor’s approval.

Converting this holiday will provide greater convenience and flexibility for the employees and is advantageous to the City in that it will be used by employees throughout the year and not necessitate a closure of City offices in observance of a fixed holiday.

Approval of a resolution, Attachment ‘A’, is recommended to memorize and effectuate the Side Letter Agreement by and between the City of Kerman and the KMEA, attached thereto as Exhibit ‘A’.

The use of the new holiday would be effective July 1, 2026, through June 30 of the Fiscal Year and each Fiscal Year thereafter. The 2026 holiday was used on March 30, 2026.

FISCAL IMPACT:

None, this paid holiday was already granted to members of KMEA. The March 2026 holiday was already used by KMEA. The amended holiday will be available for use in Fiscal Years beginning July 1, 2026.

ATTACHMENT:

A. Resolution w/Exhibit
44 Section 5, Item E.

Attachment ‘A’
RESOLUTION NO. 26-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN APPROVING SIDE LETTER AGREEMENT WITH THE KERMAN MUNICIPAL EMPLOYEE’S ASSOCIATION (KMEA) FOR

CONVERSION OF NEGOTIATED HOLIDAY
WHEREAS, the current Memorandum of Understanding (MOU) with the Kerman Miscellaneous Employees Association (KMEA) includes a paid holiday in observance of the Cesar Chavez birthday on March 31 of each year; and
WHEREAS, earlier this year, disturbing allegations and revelations were publicized that have led to a request to no longer observe this holiday in Chavez’s name, but rather to simply allow eligible employees to use this paid holiday at any time during the year subject to their supervisor’s approval; and
WHEREAS, converting this holiday will provide greater convenience and flexibility for the employees, and is advantageous to the City in that it will be used by employees throughout the year and not necessitate a closure of City offices in observance of a fixed holiday; and WHEREAS, approval of a resolution, Attachment ‘A’, is recommended to memorize and effectuate the Side Letter Agreement by and between the City of Kerman and the KMEA, attached as Exhibit ‘A’; and
WHEREAS, the use of the new holiday would be effective each Fiscal Year beginning July 1, 2026. The 2026 holiday was already used on March 30, 2026. The amended holiday will continue in future years beyond FY 26/27.

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

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

SECTION 2: The Side Letter Agreement with the Kerman Municipal Employee’s Association (KMEA) for conversion of negotiated holiday is hereby approved (Exhibit ‘A’).

SECTION 3: This resolution is effective upon adoption.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regular meeting held on the 9
th day of September 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
45 Section 5, Item E.

The foregoing resolution is hereby approved.

Maria Pacheco
Mayor
ATTEST:

Dalia Santana-Zamudio
City Clerk
46 Section 5, Item E.

Exhibit 'A'
47 Section 5, Item E.

STAFF REPORT
MEETING DATE: September 9, 2026
PRESENTER: Michael Barajas, Public Works Director
SUBJECT: Resolution Accepting the Water Tank Painting Project and Authorizing Filing of the Notice of Completion (MB)
RECOMMENDATION: Council by motion adopt resolution accepting the Water Tank Painting Project and authorizing City Staff to record the Notice of Completion.

EXECUTIVE SUMMARY:

The contractor, Horizons Construction Company Int’l Inc., has satisfactorily completed the work required for the Water Tank Painting Project. The project consisted of water storage tank exterior demo and painting. To close out the project, City Council must accept the improvements and authorize the recording of a Notice of Completion.

The City participates in Cooperative Purchasing Agreement through the Master Intergovernmental Cooperative Purchasing Agreement (MICPA) with Sourcewell. Under this agreement, Sourcewell conducts a competitive procurement process on behalf of participating agencies. This approach-commonly referred to as “piggybacking” – maximizes cost savings and staff efficiency by leveraging cooperative purchasing and volume-based pricing. Through this competitive process, Horizons Construction Company Int’l Inc. was identified as the qualified contractor for Water Tank Painting.

The construction contract was awarded to Horizons Construction Company Int’l Inc. on June 10, 2026. The Contractor began construction on August 10, 2026, and completed the project on August 28, 2026. The Water Tank Painting Project was completed within the specified contract time.

FISCAL IMPACT:

The City budgeted $200,000.00 for the project. The estimated final cost is $164,299.66. The project is funded with Water Capital Construction Budget.

ATTACHMENTS:

A. Resolution
B. Notice of Completion
48 Section 7, Item A.

Attachment ‘A’
RESOLUTION NO. 26-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN ACCEPTING

IMPROVEMENTS AND AUTHORIZING FILING OF NOTICE OF COMPLETION FOR THE

WATER TANK PAINTING PROJECT
WHEREAS, Horizon Construction Company Int’l Inc., has completed the work for Water Tank Painting Project;
WHEREAS, the City Contracted Water CPO has inspected the improvements required by the City and all improvements required by the City have been completed; and WHEREAS, the Public Works Director recommends acceptance of the Water Tank Painting Project and requests Council to authorize the Public Works Director to record the Notice of Completion for the Project.

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

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

Section 2. The City Council accepts the Water Tank Painting Project and authorizes the Public Works Director to record the Notice of Completion.

Section 3. This resolution is effective upon its adoption.

The foregoing resolution was adopted by the Kerman City Council at the regularly scheduled meeting held on the 9th day of August 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.
__________________________
Maria Pacheco
Mayor
ATTEST:
___________________________
Dalia Santana Zamudio
City Clerk
49 Section 7, Item A.

Attachment ‘B’
RECORDING REQUESTED BY AND MAIL TO:

NAME: CITY CLERK, CITY OF KERMAN
STREET: 850 S. MADERA AVENUE
CITY & STATE: KERMAN, CA 93630
Exempt from fee per Government Code 6103
Exempt from fee per Government Code 27383

NOTICE OF COMPLETION

1. The City of Kerman, a municipal corporation, located at 850 S. Madera Avenue, Kerman, California, is the OWNER of the property hereinafter described.

2. The name of the Contractor who caused the work of improvement to be done is Horizons Construction Company Int’l Inc.

3. The property on which the work of improvements was accepted is located within the distribution system in the City of Kerman, County of Fresno, California.

4. The work for the Water Tank Painting Project consisted of water storage tank exterior demo and painting.

5. The work of improvements as described herein was completed by the Contractor on August 28, 2026 and accepted by Kerman City Council on September 9, 2026.

6. The name of the surety companies are Merchants National Indemnity Company.

CITY OF KERMAN, a municipal corporation
________________________________
Michael Barajas, Public Works Director
I, the undersigned say; I am the person who signed the signed notice. I have read the above notice and know its contents, and the facts stated therein are true by my own knowledge.

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

Executed at Kerman, California, this 9th day of September, 2026. ________________________________
Michael Barajas, Public Works Director
50 Section 7, Item A.

STAFF REPORT
MEETING DATE: September 9, 2026
PRESENTER: John Jansons, City Manager
SUBJECT: Matters relating to the Application and Agreements with the State Water Resources Control Board for the Water Supply Well No.33 Project and Declaring City’s Official Intent to Reimburse Expenditures (JAJ)
RECOMMENDATION: Council adopt:
1) Resolution Authorizing the City Manager to apply for and execute financial assistance agreement(s) with the State Water Resources Control Board for the Water Supply Well No.33 Project; and
2) Resolution Declaring City’s official intent to reimburse expenditures for the Water Supply Well No.33 Project.

DISCUSSION:

The City has long planned the development of “Well 33” to secure adequate water supply and keep pace with commercial, institutional, and residential growth in Kerman. The State Water Resources Control Board (SWRCB) provides assistance to cities for such projects. The SWRCB requires a resolution designating an authorized representative to act, sign contracts, and execute transactions on behalf of cities. The SWRCB also requires the pledging and dedication of net water revenues toward payment of the financing.

In that regard, two resolutions are presented: (i) an Authorizing Representative resolution and (ii) a Reimbursement Resolution. These resolutions will allow the City to secure financial assistance from the State Water Resources Control Board to fund the construction of the water supply Well No.33 necessary to enhance system reliability, protect public health, and ensure long term sustainability.

FISCAL IMPACT:

None.

ATTACHMENT:

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

Attachment ‘A’
RESOLUTION NO. 26-__

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN AUTHORIZING THE CITY

MANAGER TO APPLY FOR AND EXECUTE FINANCIAL ASSISTANCE AGREEMENTS WITH THE STATE WATER RESOURCES CONTROL BOARD FOR THE WATER SUPPLY WELL NO.33 PROJECT WHEREAS, the City of Kerman (the “Entity”) intends to secure financial assistance from the State Water Resources Control Board to fund the construction of the water supply Well No.33 necessary to enhance system reliability, protect public health, and ensure long term sustainability.

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

SECTION 1: The above refenced recital are true and correct and incorporated herein.

SECTION 2: 1. The City Manager (the “Authorized Representative”) or designee is hereby authorized and directed to sign and file, for and on behalf of the City, a Financial Assistance Application such as that attached as Exhibit ‘A’ for a financing agreement from the State Water Resources Control Board for the planning, design, and construction of Water Supply Well No.33 (Water Supply Well No. 33 Project).

2. The Authorized Representative, or his/her designee, is authorized to provide the assurances, certifications, and commitments required for the financial assistance application, including acceptance and execution of a financial assistance agreement with the State Water Resources Control Board and any amendments or changes thereto.

3. The Authorized Representative, or his/her designee, is designated to represent the City in carrying out the City’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws.

SECTION 3: This Resolution is effective upon adoption.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regularly scheduled meeting held on the 9
th day of September 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
52 Section 7, Item B.

The foregoing resolution is hereby approved.

Maria Pacheco
Mayor
ATTEST:

Dalia Santana-Zamudio
City Clerk
53 Section 7, Item B.

Financial Assistance Application Page 5 of 16 Financial Security Package (Construction) (Rev. 12/2019) Drinking Water State Revolving Fund

FINANCIAL SECURITY PACKAGE
(CONSTRUCTION)
Applicant (Entity) Legal Name:

Pledged Revenues And Fund(s) For The Project:

Project Title:

Contact Person: Phone:

1. Amount of Assistance Requested: $

2. Term Requested: 20-Year 30-Year 40-Year (If Eligible)

3. Other Project Funding Sources
Name and Type of
Funding Sources Amount Applied Approved Received
$
$
$

4. Current Year Median Household Income: $
5a. Current Year Estimated Population Served:
5b. Current Year Estimated Number of Residences:
5c. Current Year Estimated Number of Permanently Occupied Residences:
(Only required if applying for grant funding/principal forgiveness)

6. Active Service Connections Not Applicable
Service Connection Type Number of Service Connections
Average Monthly Billing
(Last 12 months)
Per Connection
Residential $
Commercial $
Industrial $
Other $
TOTAL $
Rate increase effective date for projected monthly service charges:

7. Projected Annual Operations and Maintenance Costs, Including amortized replacement costs (upon completion):
$
City of Kerman
Alfonso Manrique 559-288-9172
8,443,750

0.00 Water Supply Well No.33
59,799
17,481
670
80 8
145
5,006
4,895
143,000
Exhibit 'A'
54 Section 7, Item B.

Financial Assistance Application Page 6 of 16 Financial Security Package (Construction) (Rev. 12/2019) Drinking Water State Revolving Fund

8. Discussion of Material Events, Material Obligation Conditions, and Any Debt Limit Identify any current prior material events such as bankruptcy, defaults, litigation, grand jury findings, unscheduled draws on reserve funds, substitution of insurers or their failure to perform, unscheduled draws on credit enhancements, actions taken in anticipation of filing Chapter 9, rating changes, relevant conditions in material obligations, and any local debt limit.

9. Rate Study
Has a rate study been conducted for your system? Yes No If yes, please submit a complete copy of the Rate Study.

10. Debt Management Policy
Please provide a copy of your Debt Management Policy (If Applicable).

ATTACHMENTS (Check the box next to each item attached to your application.) F1 – AUDITED FINANCIAL STATEMENTS OR TAX RETURNS (3 Years) F2 – BUDGET PROJECTIONS (REVENUE/EXPENSE) (2 years – or more if needed) (See Sample in Application Instructions)
F3 – TAX QUESTIONNAIRE
F4 – REIMBURSEMENT RESOLUTION
F5a – AUTHORIZING RESOLUTION
F5b – CORPORATE RESOLUTION
F5c – OTHER ENTITY TYPE
F6 – RATE ADOPTION RESOLUTION, COPY OF RATES, AND PUBLIC NOTICE OF PROPOSITION 218 MEETING
F7 – SCHEDULE OF ALL MATERIAL DEBT OR NO DEBT LETTER
(See Application Instructions)
F8 – DEBT MANAGEMENT POLICY (If Applicable)
F9 – NEW SPECIAL TAX, ASSESSMENT DISTRICT, OR SERVICE CHARGE PROJECTIONS (If Applicable)
F10 – RELEVANT SERVICE, MANAGEMENT, OPERATING, OR JOINT POWERS AGREEMENTS (If Applicable)
F11 – SCHOOL DISTRICT CERTIFICATION OF INTERIM REPORT (If Applicable) 55 Section 7, Item B.

Financial Assistance Application
(Rev. 3/21/2025)

Attachment F3

STATE WATER RESOURCES CONTROL BOARD

STATE REVOLVING FUND PROGRAM
TAX QUESTIONNAIRE (Version April 2025)

LEGAL NAME OF APPLICANT
State Use Only:

Project No. DATE/TIME REC’D BY
SWRCB
Instructions: Answer all and provide all information and documents requested. Begin typing in the shaded area and the space will enlarge to accommodate the information that is typed. In lieu of typing in the shaded areas for any question, a separate page may be attached to this Tax Questionnaire or an electronic file in Word format may be attached.

Certain Definitions: As used in this Tax Questionnaire, "Project" means the facilities and/or capital improvements that you described in the Financial Assistance Application submitted to the State Water Board and constitutes those costs that will be funded by the State Water Board under the Financing Agreement (a template Financing Agreement can be found on the State Water Board’s website), “Governmental Entity” means a state, city, county, town, public school district, other special district or joint powers authority, and "Non-Governmental Entity" means any person, partnership, corporation or other organization that is not organized as a state, city, county, town, public school district, other special district or joint powers authority. The federal government constitutes a NonGovernmental Entity. A Section 501(c)(3) organization constitutes a Non-Governmental Entity.

1. Briefly describe the Project, its functions and its principal components.

2. Indicate by principal components your current estimates of the costs of the Project, as follows:
a. Construction costs.................................................................................................. $ b. Equipment costs..................................................................................................... $ c. Land Purchase........................................................................................................ $ d. Rehabilitation or renovation of facilities................................................................ $ e. Site preparation costs............................................................................................. $ f. Architectural/engineering, design and planning costs............................................ $ g. Engineering and administrative costs during construction ..................................... $ h. Surveys .................................................................................................................. $ i. Legal fees............................................................................................................... $ j. Financing costs....................................................................................................... $ k. Commitment fees and deposits .............................................................................. $ l. Other construction costs (please specify)............................................................... $ m. Other planning/design costs (please specify) ......................................................... $

3. Will any portion of the financing provided under the Financing Agreement be used to refinance other debt(s) (e.g., including any bonds, notes, leases or commercial paper) relating to the Project? Yes No Not Applicable

4. If you answered “yes” to Question #3, please state the amount of financing provided under the Financing Agreement that is expected to be used for refinancing purposes.
$
City of Kerman
56 Section 7, Item B.

Financial Assistance Application
(Rev. 3/21/2025)

5. If you answered “yes” to Question #3, please specify the date(s) on which the financing provided under the Financing Agreement will be used to redeem other debt(s) relating to the Project.

6. If you answered “yes” to Question #3, please provide the following information:
a. Name of the existing indebtedness to be refinanced:
b. Issue date of the existing indebtedness:
c. Par amount of the existing indebtedness:
d. Purpose(s) of the existing indebtedness:
e. Whether the existing indebtedness is immediately prepayable:
f. Whether the interest on the existing indebtedness is federally taxable or tax-exempt:

7. If you answered “yes” to Question #3, are any proceeds of the other debt(s) relating to the Project still unspent? Yes No Not Applicable
If yes, please identify the amounts and the funds or accounts in which such proceeds are on deposit.

8. If you answered “yes” to Question #3, was the other debt(s) to be refinanced with the financing provided under the Financing Agreement used to refinance other prior debt(s) relating to the Project? Yes No Not Applicable
If yes, please provide the name of the original indebtedness, the issue date of the original indebtedness, the par amount of the original indebtedness, the purpose(s) of the original indebtedness, and whether the interest on the original indebtedness was federally taxable or tax-exempt.

9. Will any portion of the financing provided under the Financing Agreement be used for new financing of the Project? Yes No Not Applicable

10. If you answered “yes” to Question #9, please provide the dates of expected commencement and completion of construction of the Project.

Expected Commencement Date of Project: ............................

Expected Completion Date of Project:....................................

11. If you answered “yes” to Question #9, please state the amount of the financing provided under the Financing Agreement that is expected to be used for new financing purposes. If you answered “no” to Question #9, skip to Question #18 below. $

12. If you answered “yes” to Question #9, please state the amount of Project costs to be newly financed under the Financing Agreement that are expected to be paid within the following periods of time:

Please respond to this question using the expected initiation date of construction.

Project costs to be spent within 6 months.............................................................................. $ Project costs to be spent within 12 months (cumulative)....................................................... $ Project costs to be spent within 18 months (cumulative)....................................................... $ Project costs to be spent within 24 months (cumulative)....................................................... $ Project costs to be spent within 30 months (cumulative)....................................................... $ Project costs to be spent within 36 months (cumulative)....................................................... $ Project costs to be spent beyond 36 months (cumulative) ..................................................... $ 8,443,750
57 Section 7, Item B.

Financial Assistance Application
(Rev. 3/21/2025)

13. If you answered “yes” to Question #9, have you paid any costs of the Project prior to the date hereof? Yes No Not Applicable
For each Project cost that has been previously paid, please provide an itemization of the following:
a. Amount of the payment ............................................................................................. b. Purpose of the payment.............................................................................................. c. Date of the Payment................................................................................................... d. Source of payment of such cost (e.g., revenue,
federal or state grants, other financing, internal loan)................................................

14. If you answered "yes" to Question #13, have you at any time adopted a resolution or other official action (e.g., a so-called “reimbursement resolution”) relating to your intent to finance the Project with financial assistance from the State Water Board or other indebtedness?
Yes No Not Applicable
If yes, please identify the date of such resolution or other document and attach a copy.

15. If you answered “yes” to Question #9, will any portion of the financing provided under the Financing Agreement be used to pay administrative or engineering expenses directly relating to the construction of the Project? Yes No Not Applicable
If yes, please state the amount expected to be so used and provide details as to its calculation (e.g., based on actual costs or a percentage of construction).

16. If you answered “yes” to Question #15, will any portion of the administrative or engineering expenses directly relating to the construction of the Project be incurred by the staff of the Applicant? Yes No Not Applicable
If yes, please state the amount expected to be so used and provide details as to its calculation (e.g., based on actual costs or a percentage of construction).

17. If you answered "yes" to Question #16, will the administrative or engineering expenses directly relating to the construction of the Project be tracked by an accounting system, such as a cost accounting system, that will allow them to be differentiated from other charges for other work done by the applicant’s staff? Yes No Not Applicable
If yes, please specify how charges will be tracked.

18. Does any Non-Governmental Entity own, or do you anticipate any Non-Governmental Entity owning, any portion of the Project at any time during the term of the financing?
Yes No
If yes, identify the Non-Governmental Entity and provide all available details with respect to its ownership interest. 58 Section 7, Item B.

Financial Assistance Application
(Rev. 3/21/2025)

19. Does any Non-Governmental Entity lease, or do you anticipate any Non-Governmental Entity leasing, any portion of the Project at any time during the term of the financing?
Yes No
If yes, identify the Non-Governmental Entity and provide all available details with respect to its lease interest.

20. Have you entered, or do you anticipate entering, into any inter-municipal contract or agreement(s) with any Governmental Entity with respect to the Project (or any portion of the Project) during the term of the financing? Yes No
If yes, please describe the purpose of each such agreement, and attach a copy of any existing or contemplated agreement.

21. Have you entered, or do you anticipate entering, into any contract or agreement with any Non-Governmental Entity contracting to operate, manage or provide any exclusive services with respect to the Project (or any portion of the Project) during the term of the financing?
Yes No
If yes, please identify the Non-Governmental Entity and explain the arrangement. If an operations, management or exclusive services contract currently exists, please attach a copy. Contracts that relate solely to services that are merely incidental to the primary use of the Project need not be listed. Examples of incidental services are contracts for janitorial services, office equipment repairs or billing services. If you are uncertain as to whether the contract is incidental or not, please describe the contract and the services provided thereunder.

22. Does the Project provide, or do you anticipate the Project providing, water or wastewater services to any NonGovernmental Entity other than on the basis of standard rates and charges which are generally applicable and uniformly applied and are adjusted from time to time by the Applicant? Yes No
If there are or will be any non-standard rates and charges, describe the rate structure, focusing on any special rate agreements or charges for specific entities. An example of a non-standard rate is an industrial user paying a flat fee in a system where the other users pay a rate based on usage.

23. Does any Non-Governmental Entity have, or do you anticipate any Non-Governmental Entity having, special priority rights or other preferential rights to use the Project or the services of the Project pursuant to any contractual or other arrangement?
Yes No
If yes, please identify the Non-Governmental Entity, and describe the special priority or preferential right(s).

24. Are the functions and services of the entire Project available, and do you expect the functions and services of the entire Project will be available for use by the general public on a first-come, first-served basis? Yes No
If no, please explain and describe the portion of the Project that is not, or will not, be available for use by the general public.

For example, municipal water and wastewater systems used for residential, commercial, governmental and business purposes are available for use by the general public; a specialized pollution control facility immediately adjacent to a private business that is the sole user of the facility is not available for use by the general public. 59 Section 7, Item B.

Financial Assistance Application
(Rev. 3/21/2025)

25. Have you entered, or do you anticipate entering, into a “take” or “take-or-pay” contract with any Non-Governmental Entity for use of any portion of the Project or the services of the Project? Yes No Not Applicable
If yes, please identify the Non-Governmental Entity, and describe the arrangement therewith. If a take or a take-or-pay contract currently exists, please attach a copy.

26. Will any Non-Governmental Entity guarantee or otherwise be directly obligated to repay the financial assistance provided under the Financing Agreement?
Yes No Not Applicable
If yes, please identify the Non-Governmental Entity, and describe the guarantee arrangement therewith.

27. Have you received, or do you expect to receive, any grant or other form of assistance for financing of any portion of the Project from the State of California, the federal government or any other entity or person? Yes No Not Applicable
If yes, please explain.

28. Will any portion of the financing projected under the Financing Agreement be used as a substitute for other funds which were otherwise to be used as a source of financing and which have been used or will be used to acquire, directly or indirectly, other investment property?
Yes No Not Applicable
If yes, please explain.

APPLICANT ACKNOWLEDGEMENT AND SIGNATURE
I hereby certify that I am an authorized representative of the Applicant, and that I am authorized by the Applicant to execute this Tax Questionnaire. I am charged with the responsibility to perform such acts as are necessary and proper for the financing, construction, acquisition and/or improvement of the Project, and am acting for and on behalf of the Applicant in executing this Tax Questionnaire. I certify that I am familiar with the Project and that all information contained herein is true, correct and complete to the best of my knowledge. I am not aware of any facts or circumstances that would cause me to question the accuracy or reasonableness of any information contained in these responses or attached documentation. I understand that the foregoing information and attached documentation will be relied upon by the State Water Board and their counsel, in providing financing with respect to the Project.

AUTHORIZED REPRESENTATIVE

SIGNATURE

PRINT NAME AND TITLE DATE
John Jansons, City Manager
60 Section 7, Item B.

Attachment ‘B’
RESOLUTION NO. 26-__

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DECLARING ITS OFFICIAL INTENT TO REIMBURSE EXPENDITURES FOR THE WATER SUPPLY WELL NO.33 PROJECT WHEREAS, the City of Kerman (the “City”) desires to finance the costs of constructing Well No.33 and improvements relating to its water system, including certain treatment facilities, pipelines and other infrastructure (the "Water Supply Well No. 33 Project"); and WHEREAS, the City intends to finance the construction and/or reconstruction of the Project or portions of the Project with money ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"); and
WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the Agency desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the Agency; and WHEREAS, the City has determined that that money to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Agency for the Expenditures from the proceeds of the Obligations.

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

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

SECTION 2: 1. The City hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds.

2. The reasonably expected maximum principal amount of the Project Funds is $8,443,750.00.

3. This resolution is being adopted no later than 60 days after the date on which the City will expend money for the construction portion of the Project costs to be reimbursed with Project Funds.

4. Each City expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.
61 Section 7, Item B.

5. To the best of our knowledge, the City is not aware of the previous adoption of official intents by the City that have been made as a matter of course for the purpose of reimbursing expenditure and for which taxexempt obligations have not been issued.

6. This resolution is adopted as official intent of the Agency in order to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs.

The foregoing resolution was adopted by the City Council of the City of Kerman at a regularly scheduled meeting held on the 9
th day of September 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby approved.

Maria Pacheco
Mayor
ATTEST:

Dalia Santana-Zamudio
City Clerk
62 Section 7, Item B.