McFarland City Council
December 14, 2023

Sanitation Rate Study
Appendices
A-4 Existing and Proposed Customer
Rates

CITY OF MCFARLAND, CA Schedule A-4

EXISTING AND PROJECTED SANITATION RATES
Garbage Phased-In Rates
Existing Projected
Line Group 2023 2024 2025 2026 2027 2028
Monthly Garbage Rates
Residential (Cans)
1 1x per week $ 25.76 $ 28.88 27.27 $ 30.58 $ 32.37 $ 34.28 $ 2 2x per week $ 51.52 $ 55.72 53.58 $ 57.94 $ 60.25 $ 62.66 $ 3 3x per week $ 77.28 $ 82.52 79.86 $ 85.27 $ 88.11 $ 91.04 $ 4 4x per week $ 103.04 $ 109.31 106.13 $ 112.59 $ 115.96 $ 119.44 $ 5 5x per week $ 128.80 $ 136.09 132.40 $ 139.89 $ 143.80 $ 147.81 $ 6 Senior Citizen (Cans) $ 24.62 $ 27.59 26.06 $ 29.21 $ 30.93 $ 32.74 $ 7 Business (Cans) $ 25.76 $ 28.88 27.27 $ 30.58 $ 32.37 $ 34.28 $ Business 1.5 CY (Bins)
8 1x per week $ 73.80 $ 78.98 76.35 $ 81.71 $ 84.53 $ 87.45 $ 9 2x per week $ 114.18 $ 119.60 116.86 $ 122.41 $ 125.28 $ 128.22 $ 10 3x per week $ 156.81 $ 161.57 159.17 $ 164.00 $ 166.47 $ 168.98 $ 11 4x per week $ 201.92 $ 205.02 203.46 $ 206.59 $ 208.17 $ 209.76 $ 12 5x per week $ -
Business 2.0 CY (Bins)
13 1x per week $ 102.63 $ 108.93 105.73 $ 112.23 $ 115.62 $ 119.12 $ 14 2x per week $ 158.56 $ 165.23 161.86 $ 168.66 $ 172.17 $ 175.75 $ 15 3x per week $ 217.73 $ 222.36 220.03 $ 224.70 $ 227.08 $ 229.48 $ 16 4x per week $ 280.36 $ 283.79 282.07 $ 285.51 $ 287.25 $ 289.00 $ 17 5x per week $ -
Business 2.5 CY (Bins)
18 1x per week $ 112.89 $ 119.60 116.20 $ 123.11 $ 126.71 $ 130.43 $ 19 2x per week $ 174.41 $ 181.52 177.93 $ 185.18 $ 188.92 $ 192.73 $ 20 3x per week $ 239.50 $ 245.58 242.52 $ 248.68 $ 251.82 $ 255.00 $ 21 4x per week $ 308.42 $ 311.96 310.19 $ 313.75 $ 315.54 $ 317.35 $ 22 5x per week $ -

CITY OF MCFARLAND, CA Schedule A-4

EXISTING AND PROJECTED SANITATION RATES
Garbage Phased-In Rates
Existing Projected
Line Group 2023 2024 2025 2026 2027 2028
Business 3.0 CY (Bins)
23 1x per week $ 133.39 $ 140.93 137.11 $ 144.87 $ 148.91 $ 153.06 $ 24 2x per week $ 206.09 $ 214.08 210.05 $ 218.20 $ 222.39 $ 226.66 $ 25 3x per week $ 283.07 $ 289.84 286.43 $ 293.28 $ 296.76 $ 300.29 $ 26 4x per week $ 364.48 $ 368.22 366.34 $ 370.10 $ 371.99 $ 373.89 $ 27 5x per week $ -
Business 4.0 CY (Bins)
28 1x per week $ 152.02 $ 160.33 156.12 $ 164.65 $ 169.10 $ 173.66 $ 29 2x per week $ 234.76 $ 243.56 239.12 $ 248.08 $ 252.68 $ 257.37 $ 30 3x per week $ 322.60 $ 330.00 326.28 $ 333.76 $ 337.56 $ 341.41 $ 31 4x per week $ 415.36 $ 419.31 417.33 $ 421.30 $ 423.30 $ 425.31 $ 32 5x per week $ -

CITY OF MCFARLAND, CA Schedule A-4

EXISTING AND PROJECTED SANITATION RATES
Recycling Phased-In Rates
Existing Projected
Line Group 2023 2024 2025 2026 2027 2028
Monthly Recycling Rates
Residential & City Approved Commercial Small Business (Cans) 1 64-GALLON CART $ 2.99 $ 4.71 3.75 $ 5.92 $ 7.43 $ 9.33 $ 2 96-GALLON CART $ 6.44 $ 8.62 7.45 $ 9.98 $ 11.54 $ 13.36 $ 3 MF 64 Multi-family 96-GALLON CART $ 2.99 $ 4.71 3.75 $ 5.92 $ 7.43 $ 9.33 $ 4 M - MISC (FIXED) RECYCLING CHARGE CANS $ 6.44 $ 8.62 7.45 $ 9.98 $ 11.54 $ 13.36 $ Commercial 1.5 CY (Bins)
5 1x per week $ 35.07 $ 39.29 37.12 $ 41.58 $ 44.01 $ 46.58 $ 6 2x per week $ 52.60 $ 57.92 55.19 $ 60.77 $ 63.77 $ 66.91 $ 7 3x per week $ 70.12 $ 76.52 73.25 $ 79.94 $ 83.51 $ 87.24 $ 8 4x per week $ 87.65 $ 95.14 91.32 $ 99.12 $ 103.27 $ 107.59 $ 9 5x per week $ 105.18 $ 113.74 109.38 $ 118.29 $ 123.01 $ 127.92 $ 10 6x per week $ 122.70 $ 132.34 127.43 $ 137.45 $ 142.75 $ 148.25 $ Commercial 2.0 CY (Bins)
11 1x per week $ 48.69 $ 53.76 51.16 $ 56.49 $ 59.36 $ 62.38 $ 12 2x per week $ 73.02 $ 79.60 76.24 $ 83.12 $ 86.78 $ 90.61 $ 13 3x per week $ 87.19 $ 94.65 90.84 $ 98.61 $ 102.75 $ 107.05 $ 14 4x per week $ 108.98 $ 117.78 113.30 $ 122.44 $ 127.29 $ 132.33 $ 15 5x per week $ 130.77 $ 140.91 135.75 $ 146.27 $ 151.84 $ 157.62 $ 16 6x per week $ 152.57 $ 164.05 158.21 $ 170.11 $ 176.40 $ 182.91 $ Commercial 3.0 CY (Bins)
17 1x per week $ 63.29 $ 69.27 66.21 $ 72.47 $ 75.82 $ 79.32 $ 18 2x per week $ 94.92 $ 102.86 98.81 $ 107.07 $ 111.46 $ 116.02 $ 19 3x per week $ 126.58 $ 136.46 131.43 $ 141.69 $ 147.12 $ 152.75 $ 20 4x per week $ 158.23 $ 170.06 164.04 $ 176.30 $ 182.77 $ 189.47 $ 21 5x per week $ 189.89 $ 203.66 196.65 $ 210.91 $ 218.42 $ 226.20 $ 22 6x per week $ 221.54 $ 237.25 229.26 $ 245.52 $ 254.08 $ 262.94 $ Commercial 4.0 CY (Bins)
23 1x per week $ 72.11 $ 78.64 75.30 $ 82.12 $ 85.76 $ 89.55 $ 24 2x per week $ 108.18 $ 116.93 112.47 $ 121.57 $ 126.39 $ 131.40 $ 25 3x per week $ 144.25 $ 155.22 149.63 $ 161.01 $ 167.02 $ 173.25 $ 26 4x per week $ 180.32 $ 193.50 186.79 $ 200.45 $ 207.65 $ 215.10 $ 27 5x per week $ 216.38 $ 231.78 223.95 $ 239.88 $ 248.27 $ 256.95 $ 28 6x per week $ 252.45 $ 270.06 261.11 $ 279.32 $ 288.89 $ 298.80 $

CITY OF MCFARLAND, CA Schedule A-4

EXISTING AND PROJECTED SANITATION RATES
Recycling Phased-In Rates
Existing Projected
Line Group 2023 2024 2025 2026 2027 2028
Commercial 6.0 CY (Bins)
29 1x per week $ 114.24 $ 123.36 118.71 $ 128.20 $ 133.22 $ 138.43 $ 30 2x per week $ 154.04 $ 165.61 159.72 $ 171.71 $ 178.05 $ 184.61 $ 31 3x per week $ 193.84 $ 207.85 200.72 $ 215.23 $ 222.87 $ 230.79 $ 32 4x per week $ 233.63 $ 250.08 241.72 $ 258.74 $ 267.70 $ 276.96 $ 33 5x per week $ 273.43 $ 292.32 282.72 $ 302.25 $ 312.52 $ 323.14 $ 34 6x per week $ 313.23 $ 334.56 323.72 $ 345.77 $ 357.35 $ 369.31 $ Commercial 8.0 CY (Bins)
35 1x per week $ 165.83 $ 178.12 171.87 $ 184.61 $ 191.33 $ 198.29 $ 36 2x per week $ 217.64 $ 233.11 225.24 $ 241.25 $ 249.68 $ 258.40 $ 37 3x per week $ 269.01 $ 287.63 278.16 $ 297.42 $ 307.54 $ 318.01 $ 38 4x per week $ 320.60 $ 342.38 331.31 $ 353.82 $ 365.65 $ 377.86 $ 39 5x per week $ 372.19 $ 397.14 384.46 $ 410.23 $ 423.75 $ 437.72 $ 40 6x per week $ 423.77 $ 451.88 437.60 $ 466.62 $ 481.84 $ 497.57 $

CITY OF MCFARLAND, CA Schedule A-4

EXISTING AND PROJECTED SANITATION RATES
Organics Phased-In Rates
Existing Projected
Line Group 2023 2024 2025 2026 2027 2028
Monthly Organics Rates
48 Gal Cart
1 1x per week $ 55.68 $ 61.19 58.37 $ 64.15 $ 67.25 $ 70.50 $ 2 2x per week $ 111.36 $ 120.31 115.75 $ 125.05 $ 129.98 $ 135.10 $ 3 3x per week $ 167.04 $ 179.41 173.12 $ 185.94 $ 192.70 $ 199.71 $ 4 4x per week $ 222.72 $ 238.51 230.48 $ 246.82 $ 255.42 $ 264.31 $ 5 5x per week $ 278.40 $ 297.60 287.84 $ 307.70 $ 318.13 $ 328.92 $ 64 Gal Cart
6 1x per week $ 58.74 $ 64.44 61.52 $ 67.50 $ 70.69 $ 74.05 $ 7 2x per week $ 117.48 $ 126.81 122.05 $ 131.74 $ 136.87 $ 142.20 $ 8 3x per week $ 176.22 $ 189.15 182.57 $ 195.97 $ 203.03 $ 210.35 $ 9 4x per week $ 234.96 $ 251.50 243.09 $ 260.19 $ 269.19 $ 278.51 $ 10 5x per week $ 293.70 $ 313.84 303.60 $ 324.42 $ 335.35 $ 346.66 $

1.0 Cubic Yard
11 1x per week $ 174.57 $ 187.40 180.87 $ 194.17 $ 201.18 $ 208.44 $ 12 2x per week $ 349.14 $ 372.67 360.72 $ 385.03 $ 397.80 $ 410.98 $ 13 3x per week $ 523.71 $ 557.94 540.55 $ 575.89 $ 594.41 $ 613.53 $ 14 4x per week $ 698.28 $ 743.21 720.39 $ 766.74 $ 791.03 $ 816.08 $ 15 5x per week $ 872.85 $ 928.47 900.23 $ 957.60 $ 987.64 $ 1,018.62 $

Sanitation Rate Study
Appendices
A-5 Estimated Contract Costs

CITY OF MCFARLAND, CA Schedule A-5

PROJECTED CONTRACT COSTS

GARBAGE
Estimated Projected
Line Group 2023 2024 2025 2026 2027 2028
Contract Costs-Garbage
Summary
1 Garbage-0.55 YD BIN (CANS) $ 970,938.01 886,438 $ 1,013,747.73 $ 1,073,703.36 $ 1,137,120.18 $ 1,204,194.42 $ 2 1.50 YD BIN (CANS) $ 816.84 752 $ 845.43 $ 887.70 $ 932.09 $ 978.69 $ 3 2.00 YD BIN (CANS) $ 8,599.50 7,921 $ 8,900.48 $ 9,345.51 $ 9,812.78 $ 10,303.42 $ 4 2.50 YD BIN (CANS) $ 3,741.84 3,447 $ 3,872.80 $ 4,066.44 $ 4,269.77 $ 4,483.26 $ 5 3.00 YD BIN (CANS) $ 192,249.20 177,080 $ 198,977.92 $ 208,926.82 $ 219,373.16 $ 230,341.82 $ 6 4.00 YD BIN (CANS) $ 22,677.84 20,888 $ 23,471.56 $ 24,645.14 $ 25,877.40 $ 27,171.27 $ 7 Senior Citizens (CANS) $ 4,011.39 3,695 $ 4,151.79 $ 4,359.38 $ 4,577.35 $ 4,806.21 $ 8 Total Contract Costs-Garbage $ 1,203,034.62 1,100,219 $ 1,253,967.73 $ 1,325,934.35 $ 1,401,962.72 $ 1,482,279.09 $ Garbage-0.55 YD BIN (CANS)
9 1x per week $ 775,942 706,837 $ 811,927 $ 861,792 $ 914,613 $ 970,562 $ 10 2x per week $ 116,271 107,093 $ 120,340 $ 126,357 $ 132,675 $ 139,309 $ 11 3x per week $ 33,261 30,635 $ 34,425 $ 36,146 $ 37,953 $ 39,851 $ 12 4x per week $ 31,843 29,326 $ 32,957 $ 34,605 $ 36,335 $ 38,152 $ 13 5x per week $ 13,622 12,547 $ 14,099 $ 14,803 $ 15,544 $ 16,321 $

1.50 YD BIN (CANS)
14 1x per week $ 817 752 $ 845 $ 888 $ 932 $ 979 $
15 2x per week $ - - $ - $ - $ - $ - $
16 3x per week $ - - $ - $ - $ - $ - $
17 4x per week $ - - $ - $ - $ - $ - $
18 5x per week $ 0 - - $ - $ - $ - $

2.00 YD BIN (CANS)
19 1x per week $ 8,600 7,921 $ 8,900 $ 9,346 $ 9,813 $ 10,303 $ 20 2x per week $ - - $ - $ - $ - $ - $
21 3x per week $ - - $ - $ - $ - $ - $
22 4x per week $ - - $ - $ - $ - $ - $
23 5x per week $ - - $ - $ - $ - $ - $

CITY OF MCFARLAND, CA Schedule A-5

PROJECTED CONTRACT COSTS

GARBAGE
Estimated Projected
Line Group 2023 2024 2025 2026 2027 2028

2.50 YD BIN (CANS)
24 1x per week $ 3,742 3,447 $ 3,873 $ 4,066 $ 4,270 $ 4,483 $ 25 2x per week $ - - $ - $ - $ - $ - $
26 3x per week $ - - $ - $ - $ - $ - $
27 4x per week $ - - $ - $ - $ - $ - $
28 5x per week $ - - $ - $ - $ - $ - $

3.00 YD BIN (CANS)
29 1x per week $ 52,203 48,084 $ 54,030 $ 56,731 $ 59,568 $ 62,546 $ 30 2x per week $ 66,334 61,099 $ 68,655 $ 72,088 $ 75,692 $ 79,477 $ 31 3x per week $ 73,713 67,896 $ 76,293 $ 80,108 $ 84,113 $ 88,319 $ 32 4x per week $ - - $ - $ - $ - $ - $
33 5x per week $ - - $ - $ - $ - $ - $

4.00 YD BIN (CANS)
34 1x per week $ 5,041 4,643 $ 5,217 $ 5,478 $ 5,752 $ 6,039 $ 35 2x per week $ 7,556 6,960 $ 7,821 $ 8,212 $ 8,622 $ 9,053 $ 36 3x per week $ 10,081 9,285 $ 10,434 $ 10,956 $ 11,503 $ 12,079 $ 37 4x per week $ - - $ - $ - $ - $ - $
38 5x per week $ - - $ - $ - $ - $ - $
Senior Citizens (CANS)
39 1x per week $ 4,011 3,695 $ 4,152 $ 4,359 $ 4,577 $ 4,806 $ 40 2x per week $ - - $ - $ - $ - $ - $
41 3x per week $ - - $ - $ - $ - $ - $
42 4x per week $ - - $ - $ - $ - $ - $
43 5x per week $ - - $ - $ - $ - $ - $
44 Total Contract Costs-Garbage $ 1,203,034.62 1,100,219 $ 1,253,967.73 $ 1,325,934.35 $ 1,401,962.72 $ 1,482,279.09 $

CITY OF MCFARLAND, CA Schedule A-5

PROJECTED CONTRACT COSTS

RECYCLING
Estimated Projected
Line Group 2023 2024 2025 2026 2027 2028
Rervenues-Recycling
Summary
1 Residential & City Approved Commercial Small
Business (Cans) $ 115,871 109,385 $ 122,733 $ 129,990 $ 137,667 $ 145,786 $ 2 Commercial 1.5 CY (Bins) $ 402 383 $ 422 $ 443 $ 465 $ 488 $ 3 Commercial 2.0 CY (Bins) $ 2,231 2,124 $ 2,342 $ 2,459 $ 2,582 $ 2,711 $ 4 Commercial 3.0 CY (Bins) $ 17,397 16,569 $ 18,267 $ 19,180 $ 20,139 $ 21,146 $ 5 Commercial 4.0 CY (Bins) $ 2,891 2,753 $ 3,035 $ 3,187 $ 3,347 $ 3,514 $ 6 Commercial 6.0 CY (Bins) $ 6,184 5,889 $ 6,493 $ 6,818 $ 7,158 $ 7,516 $ 7 Commercial 8.0 CY (Bins) $ - - $ - $ - $ - $ - $
8 Total Rervenues-Recycling $ 144,976 137,104 $ 153,292 $ 162,078 $ 171,359 $ 181,163 $ Residential & City Approved Commercial Small
Business (Cans)
9 64-GALLON CART $ 92,581 87,204 $ 98,278 $ 104,313 $ 110,706 $ 117,477 $ 10 96-GALLON CART $ 2,506 2,387 $ 2,631 $ 2,763 $ 2,901 $ 3,046 $ 11 MF 64 Multi-family 96-GALLON CART $ 14,371 13,687 $ 15,090 $ 15,844 $ 16,636 $ 17,468 $ 12 M - MISC (FIXED) RECYCLING CHARGE CANS $ 6,413 6,107 $ 6,733 $ 7,070 $ 7,424 $ 7,795 $ Commercial 1.5 CY (Bins)
13 1x per week $ 402 383 $ 422 $ 443 $ 465 $ 488 $
14 2x per week $ - - $ - $ - $ - $ - $
15 3x per week $ - - $ - $ - $ - $ - $
16 4x per week $ - - $ - $ - $ - $ - $
17 5x per week $ - - $ - $ - $ - $ - $
18 6x per week $ - - $ - $ - $ - $ - $
Commercial 2.0 CY (Bins)
19 1x per week $ 2,231 2,124 $ 2,342 $ 2,459 $ 2,582 $ 2,711 $ 20 2x per week $ - - $ - $ - $ - $ - $
21 3x per week $ - - $ - $ - $ - $ - $
22 4x per week $ - - $ - $ - $ - $ - $
23 5x per week $ - - $ - $ - $ - $ - $
24 6x per week $ - - $ - $ - $ - $ - $

CITY OF MCFARLAND, CA Schedule A-5

PROJECTED CONTRACT COSTS

RECYCLING
Estimated Projected
Line Group 2023 2024 2025 2026 2027 2028
Commercial 3.0 CY (Bins)
25 1x per week $ 10,148 9,665 $ 10,656 $ 11,188 $ 11,748 $ 12,335 $ 26 2x per week $ 4,349 4,142 $ 4,566 $ 4,795 $ 5,035 $ 5,286 $ 27 3x per week $ 2,900 2,762 $ 3,045 $ 3,197 $ 3,357 $ 3,525 $ 28 4x per week $ - - $ - $ - $ - $ - $
29 5x per week $ - - $ - $ - $ - $ - $
30 6x per week $ - - $ - $ - $ - $ - $
Commercial 4.0 CY (Bins)
31 1x per week $ 1,652 1,573 $ 1,734 $ 1,821 $ 1,912 $ 2,008 $ 32 2x per week $ 1,239 1,180 $ 1,301 $ 1,366 $ 1,434 $ 1,506 $ 33 3x per week $ - - $ - $ - $ - $ - $
34 4x per week $ - - $ - $ - $ - $ - $
35 5x per week $ - - $ - $ - $ - $ - $
36 6x per week $ - - $ - $ - $ - $ - $
Commercial 6.0 CY (Bins)
37 1x per week $ 2,508 2,389 $ 2,633 $ 2,765 $ 2,903 $ 3,048 $ 38 2x per week $ 3,676 3,501 $ 3,860 $ 4,053 $ 4,255 $ 4,468 $ 39 3x per week $ - - $ - $ - $ - $ - $
40 4x per week $ - - $ - $ - $ - $ - $
41 5x per week $ - - $ - $ - $ - $ - $
42 6x per week $ - - $ - $ - $ - $ - $
Commercial 8.0 CY (Bins)
43 1x per week $ - - $ - $ - $ - $ - $
44 2x per week $ - - $ - $ - $ - $ - $
45 3x per week $ - - $ - $ - $ - $ - $
46 4x per week $ - - $ - $ - $ - $ - $
47 5x per week $ - - $ - $ - $ - $ - $
48 6x per week $ - - $ - $ - $ - $ - $
49 Total Rervenues-Recycling $ 144,976 137,104 $ 153,292 $ 162,078 $ 171,359 $ 181,163 $

CITY OF MCFARLAND, CA Schedule A-5

PROJECTED CONTRACT COSTS

ORGANICS
Estimated Projected
Line Group 2023 2024 2025 2026 2027 2028
Summary
1 48 Gal Cart $ 16,583 15,793 $ 17,412 $ 18,283 $ 19,197 $ 20,157 $ 2 64 Gal Cart $ 673 641 $ 706 $ 742 $ 779 $ 818 $
3 1.0 Cubic Yard $ - - $ - $ - $ - $ - $
4 Total Contract Costs-Organics $ 17,256 16,434 $ 18,119 $ 19,025 $ 19,976 $ 20,975 $ 48 Gal Cart
5 1x per week $ 8,929 8,504 $ 9,376 $ 9,845 $ 10,337 $ 10,854 $ 6 2x per week $ 2,551 2,430 $ 2,679 $ 2,813 $ 2,953 $ 3,101 $ 7 3x per week $ 1,913 1,822 $ 2,009 $ 2,110 $ 2,215 $ 2,326 $ 8 4x per week $ - - $ - $ - $ - $ - $
9 5x per week $ 3,189 3,037 $ 3,349 $ 3,516 $ 3,692 $ 3,876 $ 64 Gal Cart
10 1x per week $ 673 641 $ 706 $ 742 $ 779 $ 818 $
11 2x per week $ - - $ - $ - $ - $ - $
12 3x per week $ - - $ - $ - $ - $ - $
13 4x per week $ - - $ - $ - $ - $ - $
14 5x per week $ - - $ - $ - $ - $ - $

1.0 Cubic Yard
15 1x per week $ - - $ - $ - $ - $ - $
16 2x per week $ - - $ - $ - $ - $ - $
17 3x per week $ - - $ - $ - $ - $ - $
18 4x per week $ - - $ - $ - $ - $ - $
19 5x per week $ - - $ - $ - $ - $ - $
20 Total Contract Costs-Organics $ 17,256 16,434 $ 18,119 $ 19,025 $ 19,976 $ 20,975 $

Sanitation Rate Study
Appendices
A-6 Projected Administrative Fee

CITY OF MCFARLAND, CA Schedule A-6

PROJECTED ADMINISTRATIVE FEES

SANITATION FUND
Line Projected for Fiscal Year Ending June 30
No. Description 2024 2025 2026 2027 2028
1 Contract Costs 1,365,266$ 1,425,379$ 1,507,037$ 1,593,297$ 1,684,416$ 2 Other Expenses 519,552$ 499,951$ 510,610$ 521,536$ 532,735$ 3 Total Revenue Requirements 1,884,818$ 1,925,329$ 2,017,647$ 2,114,833$ 2,217,151$ Less Non-Rate Revenues:
4 Interest Income -$ (1,287)$ (1,751)$ (2,291)$ (3,138)$ 5 Rent Income -$ -$ -$ -$ -$
6 Connection Fees -$ -$ -$ -$ -$
7 Local Transportation Funding -$ -$ -$ -$ -$
8 Grants -$ -$ -$ -$ -$
9 Other non-operating revenues (expenses) -$ -$ -$ -$ -$ 10 Gate Fees (52,741)$ (52,741)$ (52,741)$ (52,741)$ (52,741)$ 11 Administration Fee (26,398)$ (27,058)$ (27,734)$ (28,428)$ (29,138)$ 12 Net Revenue Requirements 1,805,679$ 1,844,243$ 1,935,420$ 2,031,374$ 2,132,133$ Calculation of Administrative Fee
13 Other Revenue Requirements 440,413$ 418,865$ 428,384$ 438,076$ 447,717$ 14 Total Customers 6,012 6,092 6,172 6,252 6,332
15 Administrative Fee 6.10$ 5.73$ 5.78$ 5.84$ 5.89$
Rate Revenues Under Proposed Rates
16 Garbage 1,378,262$ 1,454,429$ 1,535,325$ 1,621,253$ 1,712,537$ 17 Recycling 184,764$ 225,838$ 277,380$ 342,138$ 423,582$ 18 Organics 18,854$ 19,665$ 20,512$ 21,395$ 22,318$
19 Total Rate Revenues Under Proposed Rates 1,581,880$ 1,699,932$ 1,833,217$ 1,984,786$ 2,158,436$ 20 Revenues over/(under) Revenue Requirements (223,799)$ (144,311)$ (102,203)$ (46,587)$ 26,303$ 9/29/2023
McFarland Sanitation Model 09.27.23
Revenue Requirements
Pge 1 of 1

Sanitation Rate Study
Appendices
A-7 Projected Operating Results

CITY OF MCFARLAND, CA Schedule A-7
PROJECTED OPERATING RESULTS [1]

SANITATION FUND
Rate Scenario - Phased-In Rates
Budgeted Projected for Fiscal Year Ending June 30
2024 2025 2026 2027 2028
Operating revenues
1 Charges for Services $ 1,779,731 1,661,019 $ 1,913,692 $ 2,065,955 $ 2,240,316 $ 2 Other Revenue - - - - -
3 Total Operating revenues $ 1,779,731 1,661,019 $ 1,913,692 $ 2,065,955 $ 2,240,316 $ Operating Expenses
4 Salaries and Employee Benefits $ 303,400 296,000 $ 310,985 $ 318,760 $ 326,729 $ 5 Services and Supplies 1,548,348 1,515,237 1,633,081 1,722,492 1,816,841 6 Utilities - - - - -
7 Franchise Fees - - - - -
8 Depreciation - - - - -
9 Total Operating Expenses $ 1,851,748 1,811,237 $ 1,944,066 $ 2,041,252 $ 2,143,570 $ 10 Operating Income (Loss) $ (72,018) (150,218) $ (30,373) $ 24,703 $ 96,746 $ Non-operating Revenues (Expenses)
11 Interest Income $ 1,287 856 $ 1,751 $ 2,291 $ 3,138 $ 12 Rent Income - - - - -
13 Connection Fees - - - - -
14 Local Transportation Funding - - - - -
15 Grants - - - - -
16 Other non-operating revenues (expenses) - - - - -
17 Total Non-operating Revenues (Expenses) $ 1,287 856 $ 1,751 $ 2,291 $ 3,138 $ 18 Income (Loss) Before Transfers and Special Items (14 $ (70,730) 9,363) $ (28,622) $ 26,994 $ 99,884 $ 19 Capital Contributions - - - - -
Transfers
20 Transfers In 169,000 248,000 131,000 80,000 38,000
21 Transfers Out (73,581) (73,581) (73,581) (73,581) (73,581) 22 Net Results of Operations $ 24,689 25,056 $ 28,797 $ 33,413 $ 64,303 $

FUND BALANCE CALCULATION

SANITATION FUND
23 Beginning Fund Balance $ 25,056 - $ 49,745 $ 78,542 $ 111,954 $ 24 Deposit/(Withdrawal) from Operations 24,689 25,056 28,797 33,413 64,303 25 Capital Projects Funded with Cash - - - - -
26 Ending Fund Balance $ 49,745 25,056 $ 78,542 $ 111,954 $ 176,257 $ 27 Targeted Fund Balance $ 50,733 24,811 $ 79,893 $ 111,849 $ 176,184 $ 28 Variance $ (988) 245 $ (1,352) $ 105 $ 73 $
29 Days Cash on Hand 10 5 15 20 30
30 Targeted Days Cash on Hand 10 5 15 20 30
Line Description
9/29/2023
McFarland Sanitation Model 09.27.23
Sanitation Proforma

27368 Via Industria, Suite 200
Temecula, CA 92590
800.755.6864 | Fax: 888.326.6864
www.willdan.com

City of McFarland
City Council Meeting

STAFF REPORT
Agenda Item No. 11.

Section: PUBLIC HEARINGS
Meeting Date: December 14,
2023
TO: Honorable Mayor and Council Members
FROM: Kenny Williams, City Manager
Paul Saldaña , Community Development Director
SUBJECT: Approval of Resolution No. 2023-156 A Resolution of the City Council of the City of McFarland resolving its intention to initiate procedures for establishing and implementing district-based elections.

SUMMARY:

On November 30, 2023, the City Council adopted Resolution 2023-141 declaring its intention to transition from at-large to by-district elections and authorization an appropriation to engage a demographer to assist in the development of the mapping process.

Staff has engaged National Demographics Corporation (NDC) to assist in the distracting process. NDC has conducted over 450 local government districting and/or redistricting projects, including 215 such projects in the 2021/2022 post-Census redistricting cycle alone.

NDC performed the districting work for over 85% of the nearly 200 California cities that moved from at-large to by-district elections since the 2001 passage of the California Voting Rights Act.

NDC and City staff have developed a schedule that will provide for consideration of district maps within the 90 day process and provide for the required five (5) public hearings, beginning with this first public hearing tonight. Staff along with the consultants will receive feedback into the process and scheduling. Likewise, now that the schedule is finalized it is recommended that the Council amend Resolution 2023-141 therein adopting the proposed schedule.

FINANCIAL IMPACT:

None.

RECOMMENDATION:

City Council conduct public hearing number 1 for the distracting process and adopt Resolution 2023-156 restatring the resolution of intent and adopting a public hearing schedule.

ATTACHMENTS:

1. Attachment A

RESOLUTION NO. 2023-156

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND RESOLVING

ITS INTENTION TO INITIATE PROCEDURES FOR ESTABLISHING AND

IMPLEMENTING DISTRICT BASED ELECTIONS
WHEREAS, the City of McFarland, is a California municipal corporation, duly organized under the constitution and the laws of the State of California;
WHEREAS, four members of the McFarland City Council are currently elected in at-large elections, in which each City Council member is elected by registered voters of the entire City, with the mayor being separately elected by registered voters of the entire City, pursuant to California Government Code sections 34871 and 34900 et seq.;
WHEREAS, Government Code section 34886 authorizes any city to change to a district based system with an elective mayor without the need to put such a change to the voters; WHEREAS, the City Council has determined that it is in the best interest of the City to move from its current at-large elections system to a by-district elections system for members of the City Council in furtherance of the purposes of the California Voting Rights Act; WHEREAS, the City intends to transition from an at-large system to a by-district system in accordance with the procedural rules outlined in Government Code section 34886 and Elections Code section 10010;
WHEREAS, at-large electoral systems like the one currently used by the District are subject to challenge under the California Voting Rights Act, Elections Code sections 14025-14032 (“CVRA”); in contrast, by-trustee area elections are not subject to challenge under the CVRA; and WHEREAS, CVRA litigation is very costly to defend; and
WHEREAS, a successful plaintiff under the CVRA will typically be entitled to reasonable attorneys’ fees, creating great financial risk to any jurisdiction sued; jurisdictions sued under the CVRA have been forced to pay high attorneys' fee claims to plaintiffs' counsel, as well as paying their own attorneys; and
WHEREAS, the City does not wish to risk costly litigation; and WHEREAS, adoption of this resolution is not based on an admission by the City that a court would find its election system violates the CVRA. Rather, the public interest may be better served by voluntarily transitioning to district-based elections for a number of reasons, including the uncertainty of any potential litigation and the extraordinary costs of such a lawsuit even if the City were to prevail; and WHEREAS, the probability of success defending a CVRA claim on the merits is uncertain without guidance from the California Supreme Court. This is due to the absence of clear objective standards on how a plaintiff is supposed to prove a case and how a city is to defend it. There is very little precedent regarding the CVRA’s application, including the elements of a violation and how they are applied to cities; and
WHEREAS, the City’s policy is to uphold the federal and California constitutions and to take any steps necessary to ensure equal protection under the law and the right to vote; and WHEREAS, the City will retain and begin working with a demographer to assist the City in establishing maps for district based elections; and
WHEREAS, before drawing a draft map of the proposed boundaries of the districts, the City will hold at least two public hearings over no more than 30 days, at which time the public is invited to provide input regarding the composition of the districts; and WHEREAS, the City will then publish and make available for release at least one draft map of the new electoral districting, including the potential sequence of elections shown; WHEREAS, once the draft map has been publicized for at least seven days, the City will hold at least two additional public hearings, over no more than 45 days, at which time the public is invited to provide

input regarding the content of the draft map and the proposed sequence of elections prior to the public hearing at which the City Council adopts a map; and
WHEREAS, if a draft map is revised at or following a public hearing, the revised map will be published and made available to the public at least seven days before the City chooses to adopt it; and WHEREAS, in determining the final sequence of staggered district elections, the City Council will give special consideration to the purposes of the CVRA, and will consider the preferences expressed by the members of the districts; and
WHEREAS, the City Council now wishes to adopt criteria to guide the establishment of electoral districts consistent with legal requirements including reasonable equal population and Section 2 of the federal Voting Rights Act of 1965, as well as other concerns and considerations important to the City; and
WHEREAS, the City of McFarland determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines”), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:

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

2. The City Council hereby resolves, pursuant to Elections Code section 10010, its intention to adopt a by-district election system by ordinance as authorized by California Government Code section 34886.

3. The City Council resolves to retain a qualified demographer, hold at least five public hearings, and publish at least one draft map and staggering sequence.

4. The City’s demographer, acting under the supervision of the City Manager or designee, is hereby authorized to direct and formulate one or more electoral district scenarios for review by the public and the City Council at two or more public hearings, in accordance with the City’s proposed timeline.

5. Working with the demographer, City staff is directed to publicize relevant maps, information, notices, agendas, and other materials regarding by-district elections and to establish a means of communication to answer questions from the public.

6. The City will complete the process prescribed by Elections Code section 10010 within 90 days of passage of this Resolution. Exhibit A to this Resolution is the City’s initial schedule, subject to change as necessary.

7. The City Manager or designee is authorized to take all other necessary actions to give effect to this Resolution, including entering into an agreement with demographer.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on

December 14, 2023 by the following vote:

Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez

CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Francisca Alvarado, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein. _____________________________
Francisca Alvarado, City Clerk

EXHIBIT "A"

DRAFT TIMELINE
Date Event Comment
November 30, 2023
Regular City Council
Meeting
City Council adopts
Resolution declaring its
intention to transition from atlarge to by-district elections and holds first public hearing.

December 14, 2023
Regular City Council
Meeting
First Public Hearing Before maps are drafted
Elections Code 10010(a)(1)
January 11, 2024
Regular City Council
Meeting
Second Public Hearing Before maps are drafted
Must occur within 30 days of first
public hearing.

Elections Code 10010(a)(1)
January 15, 2024 Initial Public Map submission
deadline
Last day for public to submit maps
for consideration at the Jan. 25
hearing
January 18, 2024 Post draft maps with
sequence of elections
Draft maps must be posted for at
least 7 days before the third public
hearing.

January 25, 2024
Regular City Council
Meeting
Third Public Hearing Regarding content of draft maps and sequence of elections.

Elections Code 10010(a)(2)
January 29, 2024 Final Public Map submission
deadline
Last day for public to submit maps
for consideration at the Feb. 8
hearing
February 1, 2024 Post any new or amended
maps with sequence of
elections
Draft maps must be posted at least 7
days before fourth public hearing
February 8, 2024
Regular City Council
Meeting
Fourth public hearing:
• Select Map.
• Council introduces
ordinance establishing
district elections, including
district boundaries and
election sequence
Regarding content of draft maps and
sequence of elections.

Fourth public hearing must be within
45 days of third public hearing.

Elections Code 10010(a)(2)
February 22, 2024
Regular City Council
Meeting
2 nd reading of Ordinance Ordinance adopted
Feb. 28, 2024 90 days after adoption of
resolution of intent
See Elections Code section 10010.
2024-2026 Transition to district elections
in respective districts

City of McFarland
City Council Meeting

STAFF REPORT
Agenda Item No. 12.

Section: PUBLIC HEARINGS
Meeting Date: December 14,
2023
TO: Honorable Mayor and Council Members
FROM: Kenny Williams, City Manager
Paul Saldaña , Community Development Director
SUBJECT: Approval of Ordinance No. 13-2023 Establishing a Development Agreement with OTC McFarland LLC and the City of McFarland.

SUMMARY:

On February 23, 2023 the City Council adopted Ordinance No 02-2023 which added Chapter

19.04 to provide for and regulate commercial cannabis businesses within the City of McFarland. The regulations and supplemental application were made available to interested parties to apply for a Commercial Cannabis Business Permit (“Permit”). Additionally, the City Council modified Chapter 19.04 to allow for commercial cannabis business operations within a C-2 zone subject to a Development Agreement.

OTC McFarland LLC (“OTC”) submitted an application pursuant to Chapter 19.04 with a request for a Permit for a commercial cannabis business to be located at 981 Frontage Avenue. The property is owned by Guadalupe Garcia Diaz who signed the appropriate agreement indicating that OTC had authority to submit the permit. Staff reviewed the application provided by the OTC and upon determine that it was complete, forwarded the application to the Cannabis Committee. Concurrently, the City began negotiations with OTC regarding the development agreement and reached agreement on the framework for the agreement, the draft of which is attached. The agreement provides for the following:
• Provides for a 10 year term commencing on the effective date of the agreement. • Provides for permitted use of the commercial cannabis operation in a C-2 zone and subjects the conditions of the approval to the measures outlined in Chapter 19.04 and the specific measures outlined in the Commercial Cannabis Permit which will be issued upon the effective date of the agreement.
• Provides for a combined cannabis tax and exaction equivalent to 15% of gross receipts each month from operations.
• Establishes a public benefit fund equal to 1% of gross receipts from operations. • Sets in place the standards for inspection to ensure compliance with the City’s regulations and conditions for which the development agreement may be terminated and the permit revoked, concurrent with Chapter 19.04.

Upon consideration of the ordinance approving the agreement, the additional actions by Council to be completed at second reading will be the approval and issuance of the Commercial Cannabis Business Permit and approval of the Indemnification Agreement

between the City and OTC. Following the approvals, it is expected that OTC will file for a building permit for site improvements and commence operation in Spring 2024.

City staff has determined that the project is exempt from CEQA pursuant to Sections 15061(b)(3) and 15301 (Existing Facilities) of the CEQA guidelines. A notice of exemption will be filed upon final reading of the ordinance.

FINANCIAL IMPACT:
$2.25 million is anticipated annually to the City’s General fund from the operation of the business at full build out.
$150,000 is anticipated as the annual amount to support local nonprofits, community events and activities.

RECOMMENDATION:

City Council conduct a public hearing and introduce Ordinance No. 1-2023 adopting an unmodified Ordinance approving a Development Agreement between the City of McFarland, OTC McFarland LLC and Guaadalupe F. Garcia Diaz for the development of a commercial cannabis business at 981 Frontage Road.

ATTACHMENTS:

1. McFarland DA_Final Version 2.0

ORDINANCE NO. 13-2023

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

MCFARLAND, CALIFORNIA, APPROVING ADOPTING AN

UNCODIFIED ORDINANCE, APPROVING A DEVELOPMENT

AGREEMENT BETWEEN THE CITY OF MCFARLAND AND OTC
MCFARLAND, LLC AND GUADALUPE F. GARCIA DIAZ FOR THE

DEVELOPMENT OF A COMMERCIAL CANNABIS BUSINESS AT
981 FRONTAGE ROAD, MCFARLAND CA
Section 1. Recitals
WHEREAS, Sections 65864-65869.5 of the California Government Code authorize the City of McFarland (“City”) to enter into development agreements and requires the planning agency of the City to find the proposed development agreement to be consistent with the policies and programs of the General Plan and any applicable specific plan, which the Planning Commission has done; and WHEREAS, Government Code section 65865 authorizes the City to enter into development agreements with any person having a legal or equitable interest in real property; and WHEREAS, OTC McFarland LLC (“Developer”) has filed the a commercial cannabis permit application with the City for development of 981 Frontage Road, in McFarland , California, APN: 201- 031-03-00-0, (“Property”) for the development of commercial cannabis business under Chapter 19.04 of the McFarland Municipal Code (the “Project”); and
WHEREAS, the City performed a preliminary environmental assessment pursuant to the requirements of the California Environmental Quality Act (California Public Resources Code section 21000, et seq.) and the Guidelines thereunder (14 California Code of Regulations section 15000, et seq.) (collectively, “CEQA”), and determined the Project Approvals were subject to exemptions pursuant to CEQA Guidelines Section 15061(b)(3) and 15301 (Existing Facilities); and WHEREAS, On December 12, 2023 at a duly noticed public meeting and after due review and consideration of (i) the report of City staff on the Project Applications, (ii) all other evidence heard and submitted at the public hearing, and (iii) all other appropriate documentation and circumstances, the Planning Commission of the City adopted resolutions recommending that the City Council: (1) adopt the exemption pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301(Existing Facilities) in compliance with CEQA; and (3) approve this Development Agreement WHEREAS, On December 14, 2023, at a duly noticed public meeting and after introduction of the ordinance due review and consideration of (i) the report of City staff on the Project Applications, (ii) the recommendations of the Planning Commission, (iii) all other evidence heard and submitted at the duly noticed public hearing conducted and closed, and (iv) all other appropriate documentation and circumstances.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MCFARLAND DOES ORDAIN AS FOLLOWS:

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

2. The City Council adopts the exemption pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301(Existing Facilities) in compliance with CEQA and adopt any attendant findings required by CEQA;

3. The City Council approves the Development Agreement by and between The City Of McFarland and OTC McFarland LLC and Guadalupe F. Garcia Diaz as an uncodified ordinance attached hereto as Exhibit “A,”

3. Direct the Mayor or the City Manager or his/her designee to finalize and execute this Agreement on behalf of the City.

4. This Ordinance shall take effect and be in full force and effect from and after thirty (30) calendar days after its final passage and adoption.

INTRODUCED, at a regular meeting of the City Council of the City of McFarland, California on 12/14/2023, by the following vote:

PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on by the following vote:

Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez
______________________________
Francisca Alvarado, City Clerk
I hereby certify that the foregoing Ordinance was duly and regularly adopted by the City Council of the City of McFarland by a regular meeting thereof held on December 14, 2023.

ATTEST:
________________________________
Saul Ayon, Mayor
APPROVED AS TO FORM:

_______________________________
Francisca Alvarado, City Clerk

1 DEVELOPMENT AGREEMENT

SPACE ABOVE THIS LINE FOR

RECORDER'S USE
Recording Fee Exempt per Government
Code §6103

DEVELOPMENT

AGREEMENT
by and between
The City of McFarland,
a California municipal corporation
and
OTC McFarland LLC,
a California limited liability company
and
Guadalupe F. Garcia Diaz

2 DEVELOPMENT AGREEMENT

DEVELOPMENT

AGREEMENT
THIS DEVELOPMENT AGREEMENT (the “Development Agreement”) is made and entered into this day of , 2023 (the “Record Date”), by and among the City of McFarland, a municipal corporation organized and existing under the laws of the State of California (the “City”) on one hand, and OTC Mc Farland LLC, a California limited liability company, (“Developer”) and Guadalupe F. Garcia Diaz (“Owner” or “Landlord”) on the other hand. The Parties to this Development Agreement may be referred to hereinafter individually as a “Party” or jointly as the “Parties.”

RECITALS
A) In 1996, the California Legislature approved Proposition 215, also known as the Compassionate Use Act (“CUA”), which was codified under Health and Safety Code section 11262.5 et sec., and was intended to enable persons in need of medical marijuana for specified medical purposes, such as cancer, anorexia, AIDS, chronic pain, glaucoma and arthritis, to obtain and use marijuana under limited circumstances and where recommended by a physician. The CUA provides that “nothing in this section shall be construed or supersede legislation prohibiting persons from engaging in conduct that endangers others, or to condone the diversion of marijuana for non-medical purposes.” B) In 2004, the California Legislature enacted the Medical Marijuana Program Act Health & Safety Code, § 11362.7 et seq.) (“MMP”), which clarified the scope of the CUA, created a state-approved voluntary medical marijuana identification card program, and authorized cities to adopt and enforce rules and regulations consistent with the MMP.

Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties and cities to “[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective” and to enforce such ordinances civilly and criminally.

C) In September 2015, the California State Legislature enacted, and Governor Brown signed into law three bills – Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 –which together comprise the Medical Marijuana Regulation and Safety Act (the “MMRSA”). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis.

D) The MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the MCRSA”), under Senate Bill 837 in June 2016, which also made included substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees.

E) On November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act AUMA”) was approved California voters as Proposition 64 and became effective on November 9, 2016, pursuant to the California Constitution (Cal. Const., art. II,

3 DEVELOPMENT AGREEMENT
§ 10(a).). Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal cultivation of up to six (6) cannabis plants.

F) AUMA also created a state regulatory and licensing system governing the commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing of nonmedical cannabis products.

G) On June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill 94. Senate Bill 94 combined elements of the MCRSA and AUMA to establish a streamlined singular regulatory and licensing structure for both medical and nonmedical cannabis activities. The new consolidated provisions under Senate Bill 94 is now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) to be governed by the California Bureau of Cannabis Control. MAUCRSA refers to medical cannabis as “medicinal cannabis” and nonmedical/recreational cannabis as “adult-use cannabis.”
H) On September 16, 2017, Governor Brown signed Assembly Bill 133 into law, which provided cleanup and substantive changes to MAUCRSA, including the removal of the requirement that licensed premises remain “separate and distinct” for each license type.

I) MAUCRSA grants local jurisdictions discretion over whether businesses engaged in commercial cannabis activity may operate in a particular jurisdiction and, if authorized, where within such jurisdiction.

J) On February 23, 2023, the City Council approved Ordinance No. 0002-2023 amending the McFarland Municipal Code (“MMC”) to add Chapter 19.04 to: (i) allow commercial cannabis businesses to operate within the City; (ii) require all cannabis businesses in the City to have a State license and a City cannabis business permit; (iii) establish procedures for the review and issuance of a cannabis business permits; and (iv) establish regulations related to such commercial cannabis business activities.

K) The MMC allows persons to engage in a permissible “Cannabis Business” upon the City’s issuance of a “Cannabis Business Permit,” which requires City approval of a Cannabis Permit, a development agreement if the business will operate within a C-2 zone, and other applicable approvals.

L) Developer is the owner of the Property (or) Developer affirms that it has an equitable interest in the real Property located at: 981 Frontage Road, in the City of McFarland, County of Kern, State of California, Assessor’s Parcel Number 201-031-03-00- 0 (“Property”), evidenced in a writing which is attached hereto and incorporated herein as Exhibit A for the purpose of carrying out the Project,
M) The Property is more particularly described in the legal description attached hereto as Exhibit B and the combined Property Plan and Floor Plan is attached hereto as Exhibit C.

N) Developer proposes to improve, develop, and use the Property for a Cannabis

4 DEVELOPMENT AGREEMENT
Business (as defined below), in accordance with California Cannabis Laws (as defined below) and the MMC, as each may be amended from time to time (the “Project”).

O) To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the California Legislature adopted Government Code section 65864 et seq. (the “Development Agreement Statute”), which authorizes the City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property that is subject to a development agreement application.

P) Consistent with the requirements of the Development Agreement Statute, the City adopted MMC, Chapter 19.04.200 (“Development Agreement Ordinance”) authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City.

Q) MMC, Sections 19.04.110, 19.04.190 and 19.04.200 requires submittal of an application along with information and supporting data as requested by the Director of Community Development for consideration of any development agreement for a Project located within C-2 zoning. Developer has satisfied this requirement. The following application(s) have been filed by the Developer with the City for the Property for the development of commercial cannabis related uses (the “Project”):
1) An application for this Development Agreement (the “DA Application”).
2) An application for a site development permit filed by the Developer (the “Site Development Application”) for architectural treatment, drainage, site aesthetics, and similar development within the Project Area (as more particularly described in the Site Plan Application). 3) An application filed by the Developer (the “Commercial Cannabis Permit Application”) for a Commercial Cannabis Permit, as required by Chapter 19.04 of the McFarland Municipal Code, for cannabis uses in the Project Area (as more particularly described in the Commercial Cannabis Permit application).

The Site Development Application and the Commercial Cannabis Permit Application are hereinafter sometimes collectively referred to as the “Project Applications”. Approval of the Project Applications is hereinafter sometimes collectively referred to as the “Project Approvals.”
R) All required fees and costs have been paid for the filing, and the City’s processing of, the Project Applications except for the payment of the City Preparation Costs (as hereinafter defined) which will be paid within thirty (30) days of the Effective Date (as hereinafter defined) of this Agreement.

5 DEVELOPMENT AGREEMENT
S) Subsequent to the filing of the Project Applications, the City performed a preliminary environmental assessment pursuant to the requirements of the California Environmental Quality Act (California Public Resources Code section 21000, et seq.) and the Guidelines thereunder (14 California Code of Regulations section 15000, et seq.) (collectively, “CEQA”), and determined the Project Approvals were subject to exemptions pursuant to CEQA Guidelines Section 15061(b)(3) and 15301 (Existing Facilities).

T) Developer filed the DA Application for approval of this Agreement in order to: (1) vest the land use and zoning policies established in the Existing City Requirements (as hereinafter defined) as of the Adoption Date (as hereinafter defined) of this Agreement for the duration of the Term (as hereinafter defined) with respect to the Project Area and the Project; and (2) memorialize certain other agreements made between the City and Developer with respect to the Project Area and the Project.

U) The City has determined that this Agreement furthers the public health, safety and general welfare, and that the provisions of this Agreement are consistent with the goals and policies of the currently adopted McFarland General Plan. For the reasons recited herein, the City and Developer have determined that the Project is a development for which this Agreement is appropriate. This Agreement will eliminate uncertainty regarding Project Approvals and certain subsequent development approvals which could discourage and deter Developer from making the long-term commitments necessary to fully develop the property, thereby encouraging planning for, investment in, and commitment to use and develop the Project Area. Continued use and development of the Project Area is anticipated to, in turn, provide the following substantial benefits and contribute to the provision of needed infrastructure for area growth, thereby achieving the goals and purposes for which the Development Agreement Laws were enacted: (1) Provide for the development of unused land; (2) Provide increased tax revenues for the City; (3) Provide for jobs and economic development in the City; and (4) Provide infrastructure improvements that can be utilized by regional users and future users. It is based upon these benefits to the City that the City is agreeable to proceeding with the proposed Project Applications and Project Approvals.

V) The City has further determined that the provisions of this Agreement, including the uses and activities authorized herein, are compatible with the uses authorized in, and the regulations prescribed for, the zoning district and area in which the Property is located, and will not adversely affect the orderly development of property or the preservation of property values in the City.

W) The City has further determined that this Agreement, will provide for or result in contributions, services, or facilities that benefit the community and provides for payment by the Developer of all costs associated with preparing and entering into this Agreement as stated this Agreement.

X) The City has further determined that this Agreement provides reasonable remedies for violation of its terms, as stated in Section 10 hereof.

Y) The City, by electing to enter into contractual agreements such as this one,

6 DEVELOPMENT AGREEMENT
acknowledges that the obligations of the City shall survive beyond the term or terms of the present City Council members, that such action will serve to bind the City and future City Councils to the obligations thereby undertaken, and this Development Agreement shall limit the future exercise of certain governmental and proprietary powers of the City. By approving this Development Agreement, the City Council has elected to exercise certain governmental powers at the time of entering into this Development Agreement, rather than deferring its actions to some undetermined future date. The terms and conditions of this Development Agreement have been found to be fair, just, and reasonable, and the City has concluded that the pursuit of this Development will serve the best interests of its citizens and the public health, safety, and welfare will be best served by entering into this obligation. The City acknowledges that Developer would not consider or engage in the Development without the assurances of development entitlements that this Development Agreement is designed to provide.

Z) On December 12, 2023, at a duly noticed public meeting and after due review and consideration of (i) the report of City staff on the Project Applications, (ii) all other evidence heard and submitted at the public hearing, and (iii) all other appropriate documentation and circumstances, the Planning Commission of the City adopted resolutions recommending that the City Council: (1) adopt the exemption pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301(Existing Facilities) in compliance with CEQA; and (2) approve this Development Agreement.

AA) On December 14, 2023, at a duly noticed public meeting and after introduction of the ordinance due review and consideration of (i) the report of City staff on the Project Applications, (ii) the recommendations of the Planning Commission, (iii) all other evidence heard and submitted at the duly noticed public hearing conducted and closed, and (iv) all other appropriate documentation and circumstances, the City Council adopted an ordinance to: (a) adopt the exemption pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301(Existing Facilities) in compliance with CEQA and adopt any attendant findings required by CEQA; (b) to effectuate the approval of this Agreement, upon making the findings required by section 19.04.200 of the McFarland Municipal Code; and (c) direct the Mayor or the City Manager or his/her designee to finalize and execute this Agreement on behalf of the City (collectively, the “City Council Ordinance”).

BB) This Development Agreement will promote and encourage the development of the Property by providing Developer with a greater degree of certainty of the Developer’s ability to expeditiously and economically complete the development effort, and the Parties agree that the consideration to be received by the City pursuant to this Development Agreement and the rights secured to the Developer hereunder constitute sufficient consideration to support the covenants and agreements of the City and Developer. By entering into this Development Agreement, the City desires to allow the Development pursuant to the Development Agreement utilizing the land-use ordinances, rules, regulations and policies applicable on the Effective Date, as defined in Section 3 of this Development Agreement and, pursuant to this Development Agreement, to vest in Developer and Owner, to the fullest extent possible under the law, all development entitlements required as of the Effective Date by the City in order to complete the Development.

7 DEVELOPMENT AGREEMENT

AGREEMENT
NOW, THEREFORE, with reference to the above Recitals, which are incorporated herein by reference, and in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, the Parties do hereby agree as follows:

1. Interests of Developer.

1.1 Recordation. This Agreement shall be recorded in the Official Records of the County of Kern County, and the City and Developer shall execute any documents reasonably required by the other to effectuate such recordation. This Agreement must be recorded with the Kern County Recorder prior to commencement of any commercial cannabis use on the Property, regardless of the existence of any conditional use permit, site plan, entitlement, City-issued commercial cannabis permit or State-issued license for cannabis operations at the Property or in the Property Area.

1.2 Recordation of Agreement. Within ten (10) calendar days following mutual execution of this Agreement by the City and Developer, the City shall cause this Agreement to be recorded in the official records of Kern County, California (the “Official Records”) with respect to the Property. Following the recordation of this Agreement in the Official Records, the City shall deliver to Developer a confirmed copy of this Agreement evidencing the recording information.

1.3 Binding Covenants. The Developer represents: (1) it has a legal right of possession to the Property and/or equitable interest in the Project Area; (2) it has provided proof of such interest to the satisfaction of the City Manager; (3) it has provided proof of the authority of any agent or representative to act for the Developer in connection with this Agreement to the satisfaction of the City Manager; and (4) all other persons holding legal title in the Project Area are bound by this Agreement. It is intended and determined that the provisions of this Agreement shall constitute covenants which shall run with the land in the Project Area, and the burdens and benefits hereof shall bind an inure to all successors in interest to the Parties.

2. Term of Agreement.

2.1 Definitions. For purposes of this Agreement, the following shall have the meanings set forth below:
“Adoption Date” means the date on which the City Council adopted the ordinance approving this Agreement and authorizing the City Manager to execute this Agreement on behalf of the City.
“Effective Date” means Term Commencement Date, which shall be thirty (30) days after the Adoption Date.

8 DEVELOPMENT AGREEMENT
“Laws” means the Constitution and laws of the State, the Constitution of the United States, and any codes, statutes, regulations, or executive mandates thereunder, and any court decision, State or federal, thereunder, provided that, any codes, statutes, regulations, or executive mandates under federal law that render cannabis illegal shall be excluded from this definition.
“State” means the State of California.
“Terminate” means the expiration of the Term of this Agreement, whether by the passage of time or by any earlier occurrence pursuant to any provision of this Agreement. The term “Terminate” includes any grammatical variant thereof, including “Termination” or “Terminated”.

2.2 Term. The term of this Agreement (the “Term”) shall commence on the Effective Date and shall continue for a period of ten (10) years following the Effective Date. The Term of this Agreement shall be extended for another five (5) years upon the mutual written agreement of Developer and the City, provided that, City shall not withhold its approval to extend the Term if Developer is in material compliance of this Agreement (collectively, “Renewal Term”). Any Term or Renewal Term shall be extended for any events pursuant to Section 12.1 and during the pendency of legal action, if any, challenging the Project Approvals, the adoption of an environmental finding or document for the Project pursuant to CEQA, or any legal action challenging or contesting the adoption of this Agreement. Any extension based upon an event described in this Section 2.2 shall be granted pursuant to the procedures set forth in Section 12. If any federal codes, statutes, regulations, or executive mandates are enacted or decreed after the Effective Date that render this Agreement economically unfeasible for Developer, then Developer and City agree to discuss in good faith an amendment to this Agreement to render this Agreement economically reasonable for Developer. Notwithstanding the foregoing, Developer shall be required to comply with the permit requirements of McFarland Municipal Code 19.04 et seq.

2.3 Termination. This Agreement shall terminate upon the occurrence of any of the following events:

2.3.1 The expiration of the Term;

2.3.2 The Developer no longer has a possessory, legal or other equitable interest in the Property;

2.3.3 The Developer has ceased all operations related to the Project on the Property for a period of one (1) year or more, unless Developer has received written consent by the city for such cessation;

2.3.4 Mutual written consent of the Parties;

2.3.5 The failure of the Developer to commence construction

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operation of the Project on the Property within the nine (9) months following the Effective Date of this Agreement;

2.3.6 Following the Term Commencement Date, the failure to have a valid Cannabis Business Permit for the Project;

2.3.7 Following the Term Commencement Date, the failure to have a valid State Cannabis Permit for the Project;

2.3.8 Unauthorized assignment of interest of the Project or the Property;

2.3.9 A breach of this Agreement, after proper notice provided, and the failure of the Developer to cure.

2.4 Effect of Termination. Upon any Termination of this Agreement, each Party shall retain any and all of the respective benefits that it received as of the date of Termination under or in connection with this Agreement. Termination of this Agreement shall not: (a) alter, impair or otherwise affect any City Permits for the Project that were issued by the City prior to the date of Termination; or (b) prevent, impair or delay Developer from (i) commencing, performing or completing the construction of any buildings or improvements in the Project or (ii) obtaining any certificates of occupancy or similar approvals from the City for the use and occupancy of completed buildings or improvements in the Project, that were authorized pursuant to City Permits for such construction issued by the City prior to the date of Termination. Nothing herein shall preclude the City, in its discretion, from taking any action authorized by Laws or Existing City Requirements to prevent, stop or correct any violation of Laws or Existing City Requirements occurring before, during or after construction of the buildings and improvements in the Project by Developer.

3. Development of the Project.

3.1 For purposes of this Agreement, the following shall have the meanings set forth below:
“Applicable Rules” collectively means: (a) the terms and conditions of the Project Approvals; (b) the terms and conditions of this Agreement; and (c) the Existing City Requirements.
“City Agency” means any office, board, commission, department, division or agency of the City.
“City Manager” means the City Manager of the City of McFarland, or designee.
“City Permits” collectively means any and all permits or approvals

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that are required under the City Requirements in order to develop, use and operate the Project, other than: (a) the Plan Amendments; (b) the Zoning Amendments; (c) the Project Approvals (except for a commercial cannabis permit); and (d) Future Discretionary Approvals (as hereinafter defined) that the Developer may elect to obtain from the City pursuant to Section 3.4. “City Permits” specifically include, without limitation, commercial cannabis permits, building permits and Technical City Permits. “City Requirements” collectively means all of the following which are in effect from time to time: (a) the McFarland Municipal Code; and (b) all rules, regulations and official plans and policies, including the 2040 McFarland General Plan and any applicable Specific Plan, of the City governing development, subdivision and zoning that are applicable to the Project Area. The City Requirements may include, without limitation, requirements governing building height, maximum floor area, permitted and conditionally permitted uses, floor area ratios, maximum lot coverage, building setbacks and setbacks, parking, signage, landscaping, Exactions (as hereinafter defined) and dedications, growth management, environmental consideration, grading, construction, security measures, odor control and other items.
“Developer Approved Changes” means those amendments, revisions or additions to the City Requirements adopted or enacted after the Adoption Date that: (a) Developer elects, in its sole discretion, to have applied to the development and occupancy of the Project and the Project Area during the Term of this Agreement; and (b) the City Manager approves such application, which approval shall not be unreasonably withheld. “Existing City Requirements” means the City Requirements that are in effect as of the Adoption Date of this Agreement.
“Permitted Rules Revisions” collectively means the following: (a) any Minor Changes to this Agreement that are proposed by Developer and approved by the City in accordance with Section 3.3; (b) any commercial cannabis activity regulations enacted by the City Manager; (c) any Future Discretionary Approvals that are applied for by Developer and approved by the City pursuant to Section 3.4; (d) any Authorized Code Revisions under Section 3.5 that are uniformly applied on a City-wide basis; and (e) written amendments to this Agreement that are mutually executed by City and Developer pursuant to Section 15.2. “Technical City Permits” collectively means any of the following technical permits issued by the City or any City Agency in connection with any building or improvement in the Project: (a) demolition, excavation and grading permits; (b) foundation permits; (c) permits for the installation of underground lines and facilities for utilities, including without limitation, water, sewer, storm drain and dry utilities (electrical, gas, phone and cable); (d) any encroachment permits; and (e) any street improvement permits, including without limitation, permits for street lighting and traffic signals. “Technical City Permits” specifically excludes building permits from the City or any City Agency for the construction of particular buildings or improvements in the Project.

3.2 Development Approval. The following elements of the Project are

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hereby approved:

3.2.1 Permitted Uses of the Property. The Parties agree that the Developer’s Project and use of the Property are currently permitted by the City and State of California. Notwithstanding any other terms and conditions contained herein, this Development Agreement is subject to the right of the City to: (i) take appropriate action to abate any public nuisance, excluding the Developer’s Project and use at the Property, which is the retail sale of cannabis; (ii) to enforce all laws that do not conflict with Existing Development Regulations, as defined hereinafter; (iii) to enforce compliance with the conditions of approval expressed in any Cannabis Business Permit/ (“CBP”) issued by the City with respect to the Project (and notwithstanding anything to the contrary contained herein or in the McFarland Municipal Code); (iv) to enforce the obligations and requirements of this Development Agreement; and (v) to exercise the police powers of the City in order to safeguard the health, safety, and wellbeing of the public, excluding the Developer’s Project and use at the Property, which is the retail sale of cannabis.

3.2.2 Nothing in this Development Agreement shall be construed to prohibit uses other than the Project on the Property, provided such other uses are in conformity with: (i) the provisions of this Development Agreement; and (ii) the ordinances, regulations and standards of the City as they may from time to time be amended. The vested rights granted to Developer under this Development Agreement apply only to the Project and the use of the Project approved herein.

3.2.3 Development Standards. The City agrees to allow
Development of the Project in accordance with the Existing Development Regulations as defined in Section 5 of this Development Agreement and any CBP. The purpose of this provision is to limit changes to the City’s development standards as of the Effective Date.

3.3 Applicable Rules.

3.3.1 Except for the Permitted Rules Revisions and any Developer Approved Changes, Developer shall have the right to develop and occupy the Project during the Term in accordance with the Applicable Rules. In the event of any conflict between the provisions in this Agreement, the Project Approvals and the Existing City Requirements, such conflict shall be resolved in the following order of priority: (a) first, the requirements of Chapter 19.04 of the McFarland Municipal Code; (b) then, commercial cannabis activity regulations enacted by the City Manager; (c) then, this Agreement; (d) then, the Project Approvals; and (e) finally, any other Existing City Requirements.

3.3.2 Except for the Permitted Rules Revisions and any Developer Approved Changes, no amendment to, revision of, or addition to any of the City Requirements that is adopted or enacted after the Effective Date shall (i) be effective or enforceable by the City with respect to the Project or the Project Area or (ii) modify or impair the rights of Developer under this Agreement during the Term without the Developer’s written approval, whether such amendment, revision or addition is adopted or approved by:
(a) the City Council; (b) any City Agency; or (c) by the people of the City through

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referendum or initiative measure.

3.4 Minor Changes.

3.4.1 The Parties acknowledge that further planning and development of the Project may demonstrate that refinements and changes are appropriate with respect to the details and performance of the Parties under this Agreement. The Parties desire that Developer retain a certain degree of flexibility with respect to the details of the development of the Project and with respect to those items covered in general terms under this Agreement. If and when Developer finds that Minor Changes (as hereinafter defined) are necessary or appropriate, then upon written request by Developer, the Parties shall, unless otherwise required by federal, state or local ordinance and/or regulation, effectuate such changes or adjustments through administrative amendments executed by the Developer and the City Manager or his or her designee, which, after execution, shall be attached hereto as addenda and become a part hereof, and may be further changed and amended from time to time as necessary, with approval by the City Manager and the Developer.

3.4.2 The term “Minor Changes” collectively means: (a) minor deviations to the Project Approvals, including, the addition of cannabis permits, that are permitted under the Existing City Requirements and are reasonably approved by the City Manager; (b) a reduction in the parking ratio requirements for the Project consistent with the McFarland Municipal Code, provided that (i) the reduction does not exceed ten percent (10%) of the Code requirement, and (ii) the reduction is approved by the City Manager, which approval shall not be unreasonably withheld or denied; or (c) such other changes, modifications or adjustments to the Project Approvals, which the City Manager determines are consistent with the overall intent of the Project Approvals and which do not materially alter the overall nature, scope, or design of the Project, and which are consistent with the requirements of Chapter 19.04 of the McFarland Municipal Code and any commercial cannabis activity regulations enacted by the City Manager.

3.4.3 In effecting any Minor Changes, the City shall cooperate with the Developer, provided that the permitted uses are not modified from those in the Project Approvals and any changes are in accordance with the Existing City Requirements. Minor Changes shall not be deemed to be an amendment to this Agreement under California Government Code Section 65868 but are ministerial clarifications and adjustments, and unless otherwise required by law, no such administrative amendments shall require prior notice or hearing by the Planning Commission and City Council. Any amendment or change requiring an environmental impact report, or a supplement thereto, pursuant to CEQA shall not be considered a Minor Change, but shall be considered a substantive amendment which shall be reviewed and approved by the Planning Commission or the City Council as determined by the applicable provisions of the McFarland Municipal Code relating to the hearing and approval procedures for the specific Project Approval.

3.5 Future Discretionary Approvals. Nothing in this Agreement is intended, should be construed or shall operate to preclude or otherwise impair the rights of Developer from applying to the City during the Term of this Agreement for any of the

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following new approvals with respect to any proposed buildings and improvements in the Project (collectively, the “Future Discretionary Approvals”): (a) any new variance or conditional use permit that is required under the Existing City Requirements; (b) any subsequent Cannabis Business Permit/Commercial Cannabis Permit; and (c) any other approval (i) which is not otherwise addressed or set forth in this Agreement and (ii) which the Existing City Requirements mandate must be reviewed and approved by the Planning Commission or City Council. The City shall process, review and approve or disapprove any application for a Future Discretionary Approval filed by Developer in accordance with the City Requirements then in effect. The approval by the City of an application by Developer for a Future Discretionary Approval shall not require an amendment of this Agreement.

3.6 Authorized Code Revisions. This Agreement shall not prevent the City from applying to the Project the following rules, regulations and policies adopted or enacted after the Adoption Date, if uniformly applied on a City-wide basis (collectively, the “Authorized Code Revisions”):

3.6.1 Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure, provided that such changes in procedural regulations do not have the effect of materially interfering with the substantive benefits conferred to Developer by this Agreement.

3.6.2 Regulations which are not in conflict with this Agreement and which would not, alone or in the aggregate, cause development of the Project by Developer to be materially different, more burdensome, time consuming or expensive.

3.6.3 Regulations which are necessary to avoid serious threats to the public health and safety, provided that, to the maximum extent possible, such regulations shall be construed and applied in a manner to preserve the substantive benefits conferred to Developer by this Agreement.

3.6.4 Mandatory regulations of the State and the United States of America applicable to the Project, provided that, to the maximum extent if possible, such regulations shall be construed and applied in a manner to preserve to the Developer the substantive benefits conferred to Developer by this Agreement.

3.6.5 City Requirements imposing life safety, fire protection, mechanical, electrical and/or building integrity requirements with respect to the design and construction of buildings and improvements, including the then current applicable building codes.

3.6.6 Any commercial cannabis activity regulations enacted by the City Manager which are in compliance with the mandatory requirements of the McFarland Municipal Code.

3.7 Timing of Development. The actual timing and order of the

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development of any particular building(s), and/or site improvements within the Project shall be determined by Developer, in its sole discretion, based upon the then projected needs and resources of Developer, as long as all requirements set forth in this Agreement and the Project Approvals related to each designated building or buildings are satisfied by Developer.

3.8 No Obligation to Develop. Nothing in this Agreement is intended, should be construed nor shall require Developer to proceed with the construction of any improvements in the Project Area. The decision to proceed or to forbear or delay in proceeding with the implementation or construction of the Project or any buildings or improvements on the Project Area shall be in the sole discretion of Developer and the failure of Developer to proceed with construction of the Project or any such buildings or improvements on the Project Area shall not: (a) give rise to any rights of the City to terminate this Agreement; or (b) constitute an Event of Default (as hereinafter defined) or give rise to any liability, claim for damages or cause of action against Developer.

3.9 Hold on Certificate of Occupancy. Except as otherwise provided in Section 6.2.3, the City reserves the right to place a hold on the issuance of any required Certificate of Occupancy for a building in the Project in the event the Existing City Requirements or Conditions of Approval with respect to that building and any site improvements have not been substantially completed by Developer.

4. City Permits.

4.1 Review and Processing of City Permits. Except as otherwise expressly provided in this Agreement, all City Permits required for the construction, development and operation of the Project and any buildings and improvements therein which comply with the requirements of the Applicable Rules: (a) shall be issued by the City Manager or the director of the other applicable City Agency having responsibility for the issuance of such City Permits, such as the City Manager for commercial cannabis permits; (b) shall not require the approval of the Planning Commission, City Council or any other City board or commission; and (c) shall not require a public hearing.

4.2 Building Permits. It is understood by the Parties to this Development Agreement that, pursuant to the City’s Building Code, building permit applications and issued building permits do not remain valid for the term of this Development Agreement, but only for the term set by the Building Code. Accordingly, the Developer shall have the right to file new building permit applications for the Development or any portion thereof where such previously approved building permit applications or issued building permits have expired, provided no Certificate of Occupancy has been issued with respect to the relevant portion of the Project. Any such new building permit applications filed for the Development shall be reviewed in accordance with this Development Agreement. However, any alternations or modifications to the Project or any separate portion thereof, which occur during the Term, but after the Project is completed and issued its initial Certificate of Occupancy, will be subject to whatever building codes and standards as are in effect at the time of application for building permits, as well as the fees then in effect.

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5. Developer’s Obligations Regarding Property.

5.1 Operate Project. Developer is obligated, after the Effective Date, to operate the Project as provided herein and in the Commercial Cannabis License, and a failure to do so is inconsistent with the City’s Goals and shall be a breach of this Development Agreement.

5.2 Permitted Uses and Development Standards. Developer shall be authorized to develop, construct, and use the Site for Commercial Cannabis Activity consistent with the following license type (the "Authorized License"): Type 10 – Store Front Retail Dispensary.

Pursuant to this Agreement, Developer shall be permitted to use the Property consistent with the Authorized License for the Term of this Agreement and during the time Developer is applying for the Authorized License with the applicable State Licensing Authority.

Developer shall begin operations of the Cannabis Business Project under the Authorized License within nine (9) months of the adoption of the operative ordinance approving this Agreement, unless Developer is prevented from doing so due to any event or circumstance set forth in Section 12 of this Agreement. Notwithstanding the foregoing, Developer is required to apply for and obtain the Authorized License from the State of California. If the State Licensing Authority does not grant the Authorized License to Developer, Developer shall immediately cease Commercial Cannabis Activity and any other operations on the respective site. Developer shall also, within thirty (30) days of receiving notice from the State Licensing Authority, notify City of the State Licensing Authority's denial or rejection of the Authorized License. In this situation, this Agreement shall terminate immediately. The Parties intend for this Agreement and the Conditional Use Permit to serve as the definitive and controlling documents for all subsequent actions, discretionary or ministerial, relating to development of the Site and the Cannabis Business Project.

5.3 Components of Project. Developer leases the Property and has developed and is legally operating the Project. However, various component businesses located on the Property may be owned by other entities to operate various other Businesses, including those related to the Project (the “Tenants”). The following will apply with respect to the Tenants and their relationship to Developer:

5.3.1 Any Tenant, as well as Developer, will be responsible for obtaining and maintaining any required license with respect to the nature of its business as required by state law and the ordinances of the City (“Licensing” or “Licenses”).

5.3.2 Developer may lease portions of the Property to Tenants, which may operate one or more Businesses on the Property, including those related to the Project. All of the provisions of this Development Agreement pertain to Developer as an operator of a Business and apply equally to the Tenants if those Tenants operate a Business related to the Project, even if Developer is ultimately not an operator of the Project, and to Developer in its business role as the sublessor of the Property and/or the Project. Developer covenants that all Tenants conducting Businesses associated with the Project on the Property

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will be businesses subject to Licensing directly with the City in order to come under the purview of this Development Agreement and must comply with all City zoning and permit requirements. Developer covenants and agrees to include an express acknowledgement and assumption of each Tenant’s respective obligations under this Development Agreement in a lease of any portion of the Project or Property to any Tenant conducting a Business specifically associated with the Project. Notwithstanding the foregoing, it is understood and agreed that portions of the Property may be leased to other businesses not associated with or involved in the Project as the leasing market may require, and that such businesses are not subject to this Development Agreement or the payment of Additional Revenues. Nothing in this paragraph is meant to modify the City’s authority to regulate land use, enforce regulations, or otherwise regulate or provide any land use entitlement.

6. Exactions and City Development Fees.

6.1 Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below:
“City Application Fees” means fees levied or assessed by the City and any City Agency to review and process applications for City Permits. “City Development Fees” means any and all fees and assessments, other than City Application Fees, charged or required by the City or any City Agency as a condition of, or in connection with, the Project Approvals or any City Permits: (a) to defray, offset or otherwise cover the cost of public services, improvements or facilities; or (b) that are imposed for a public purpose.
“Exaction” means any exactions or mitigation measures, other than the payment of City Development Fees and City Application Fees, that are imposed by the City or any City Agency, as a condition of, or in connection with, the Project Approvals. “Exactions” includes, without limitation: (a) a requirement for the dedication of any portion of the Project Area to the City or any City Agency; (b) an obligation for the construction of any on-site or off-site improvements, including any Off-Site Improvements; (c) an obligation to provide services; or (d) the requirement to dedicate any easements, rights or privileges with respect to the Project or any portion thereof to the City or any City Agency.

6.2 Exactions.

6.2.1 All of the Exactions that Developer shall be required to perform or caused to be performed in connection with the development, construction, use and occupancy of the Project, during the term of the Agreement (collectively, the “Required Exactions”), and the timing requirements for the performance of such Required Exactions, are set forth in this Agreement. The Required Exactions include the following:

6.2.1.1 The Parties acknowledge and agree that this
Agreement, and the Cannabis Business Project, confers substantial private benefits upon Developer that will place burdens upon City infrastructure, services, and neighborhoods.

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Accordingly, the Parties intend to provide consideration to City to offset these impacts that commensurate with the private benefits conferred on Developer. Thus, Developer shall tender payment to the City as follows:

Effective Date Amount Due
Within ten (10) days following each
month of operation, following the
commencement of Commercial
Cannabis Activity
15% of Gross Receipts from
Operations each month.

Within ten (10) days following the
end of each quarter of operation,
following the commencement of
Commercial Cannabis Activity
A list of contributions made to
community organizations, which are
recommended by the Cannabis
Committee and approved by Council,
equaling 1% of Gross Receipts from
Operations

6.2.1.2 Developer shall pay the City a monthly amount,
to be determined at all times based on the tax structure promulgated in MMC 3.30.050. The first payment shall be due on the first month following the commencement of Commercial Cannabis Activity. The monthly amount shall be determined based on gross receipts.

Developer shall file an applicable statement that complies with the California State Board of Equalization, California Department of Tax and Fee Administration, or either's successor agency (the “State Taxing Authority”) for sales tax purposes showing the true and correct amount of Gross Receipts from Operations of the Cannabis Business Project during the applicable time period. Developer shall provide a copy of such statement to City upon request by City. Upon request of the City, Developer shall allow City staff to independently verify the Developer’s gross receipts, provided that, such verification shall be supervised by Developer and such verification shall be consistent with California law. In addition to any other remedies, failure to permit City staff to verify Developer’s gross receipts shall be grounds for the City to terminate this Agreement.

6.2.1.3 Developer shall pay to the City an amount of
seven thousand five hundred dollars ($7,500 USD) to be utilized on for the City’s costs to process the Developer’s application(s) relating to its proposed commercial cannabis business.

Should the restricted funds be exhausted prior to the City completing its processing of the application(s), Developer shall pay an additional amount to the City sufficient to process the application(s). The restricted funds shall be paid in full by Developer on or before 90 days after approval of this Agreement. Any excess payment from the Developer shall be returned by the City within thirty (30) calendar days after all processing costs have been satisfied. City shall provide Developer with an itemized accounting for City’s costs on a monthly basis.

6.2.1.4 Developer shall pay Required Exactions and
fees set forth in Exhibit “D.” In addition, the Required Exactions include, without limitation,

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all Conditions of Approval imposed by the City, to fully mitigate potential adverse impacts resulting from, and reasonably related to, the development of the Project. In the event that the federal government legalizes cannabis and Developer’s regulatory costs increase, City and Developer agree to negotiate in good faith an adjustment to the Required Exactions and fees set forth in Exhibit “D”.

6.2.2 Except for the Required Exactions and fees listed in this Agreement, no Exaction shall be imposed by the City or any City Agency during the Term of this Agreement in connection with: (a) the development, construction, use or occupancy of the Project; or (b) any applications filed for any City Permit for the development, construction, use or occupancy of the Project or any portion thereof.

6.3 City Development Fees.

6.3.1 All of the City Development Fees that Developer shall be required to pay to the City and all City Agencies in connection with the development, construction, use and occupancy of the Project (collectively, the “Required Development Fees”), and the timing requirements for the payment of such Required Development Fees, if any, shall be agreed upon by the Parties after Developer submits an application for a building permt.

6.3.2 Notwithstanding the provisions of Section 6.3.1, Developer shall be responsible for paying: (a) any fees that Developer is obligated to directly pay to any Federal, State, County or local agency (other than any City Agency) under applicable Federal, State, County or local law; and (b) any fees the City is legally required to collect for other State or Federal agencies pursuant to (i) State or Federal law, or (ii) any City agreement or City ordinance that the City is legally mandated or required to adopt or enter into to comply with State or Federal law or a judgment of a court of law, but only to the extent necessary to satisfy such compliance.

6.3.3 Except for the Required Development Fees listed on Exhibit “G” to this Agreement, or other fees identified in this Agreement, and any fees for a required building inspection or other required process for occupancy to be charged at the then current rate charged by the City to other developers, no City Development Fees shall be imposed by the City or any City Agency during the Term of this Agreement in connection with: (a) the development, construction, use or occupancy of the Project; or (b) any application filed for any City Permit for the development, construction, use or occupancy of the Project. After the Term of this Agreement, development and use of the Property shall comply with all laws, regulations, enactments (including taxes), ordinances, then currently in effect.

6.4 City Application Fees. Developer shall pay to the City the City Application Fees chargeable in accordance with the City’s Fee Schedule that is in effect at the time the relevant application for a City Permit is made; provided that such City Application Fees are uniformly imposed by the City and any City Agency at similar stages of project development on all similar applications for development in the City.

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7. Actions by City.

7.1 Other Governmental Permits. The City agrees to cooperate with Developer in Developer’s endeavors to obtain permits and approvals as may be required from other governmental or quasi-governmental agencies having jurisdiction over the Project Area or portions thereof (such as, for example, but not by way of limitation, public utilities or utility districts and agencies having jurisdiction over transportation facilities and air quality issues) so long as the cooperation by the City will not require the City to exercise legislative action or incur any cost, liability or expense without adequate indemnity against or right of reimbursement therefore from Developer.

7.2 Cooperation in Dealing with Legal Challenge. If any action or other proceeding is instituted by a third party or parties, other governmental entity or official challenging the validity of any provision of this Agreement (collectively, a “Third Party Action”), the Parties shall cooperate in the defense of the Third-Party Action to the maximum extent reasonably possible under the circumstances unless otherwise required by law.

7.3 Indemnification.

7.3.1 Third-Party Actions. To the furthest extent allowed by law, Developer shall indemnify, hold harmless and defend City and each of its officers, officials, employees, consultants, attorneys, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, damages and costs (including reasonable attorneys’ fees, litigation expenses and administrative record preparation costs) arising from, resulting from, or in connection with any Third-Party Action (as hereinafter defined). The term “Third-Party Action” collectively means any legal action or other proceeding instituted by (i) a third party or parties or (ii) a governmental body, agency or official other than the City or a City Agency, that: (a) challenges or contests any or all of this Agreement, the Project Applications and Approvals, and the Project Approvals; or (b) claims or alleges a violation of CEQA or another law by the City Council; or (c) challenges or contests the grant, issuance or approval by the City of any or all of this Agreement, the Project Applications and Approvals, and the Project Approvals. Developer’s obligations under this Section 7.3.1 shall apply regardless of whether City or any of its officers, officials, employees, agents or volunteers are actively or passively negligent, but shall not apply to any loss, liability, fines, penalties forfeitures, costs or damages caused solely by the active negligence or willful misconduct of the City or any of its officers, officials, employees, consultants, attorneys, agents or volunteers. The provisions of this Section 7.3.1 shall survive the termination of this Agreement.

7.3.2 Additional Claims. To the fullest extent permitted by law, Developer shall indemnify, hold harmless and defend the City and each of its officers, officials, employees, consultants, attorneys, agents and volunteers (“City Indemnitees”) from any and all loss, liability, fines, penalties, forfeitures, costs and damages, including but not limited to personal injury, death at any time, and property damage, and including further reasonable attorneys’ fees, litigation and legal expenses incurred by the City Indemnitees or

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held to be the liability of the City Indemnitees (including plaintiff’s or petitioner’s reasonable attorney’s fees if awarded, in connection with the City Indemnitee’s defense of its actions in any proceeding) (collectively, “Losses”) incurred by any City Indemnitees from any and all claims, demands and actions in law or equity (collectively, a “Claim”), whether in contract, tort or strict liability, resulting from, arising or alleged to have arisen directly or indirectly out of performance or in any way connected with: (i) the making of this Agreement; (ii) the performance of this Agreement; (iii) the issuance of the CUP, permits, licenses, or other entitlements related to commercial cannabis operations; or (iv) the City’s granting, issuing or approving use of this Agreement. If any portion of a claim, demand or action in law gives rise to indemnification under this Agreement, Developer shall be responsible for indemnifying, holding harmless or defending the City consistent with the Indemnity Agreement between Developer and the City which shall be incorporated by reference herein.

Developer’s indemnification obligations under the proceeding portions of this paragraph shall apply regardless of whether the City Indemnitees are negligent, but shall not apply to any Losses caused solely by the gross negligence or willful misconduct of any City Indemnitees.

In addition, Developer shall indemnify, hold harmless and defend the City Indemnitees from any and all federal enforcement action(s) arising from (i) the execution of this Agreement, (ii) the issuance of the CUP, permits, licenses, or other entitlements, and/or (iii) any other entitlements or approvals by the City to operate the Developer’s commercial cannabis business. Further, Developer shall indemnify, hold harmless and defend the City Indemnitees from any and all violation(s) of federal, state and/or local law by Developer, its officers, officials, employees, agents, subcontractors, independent contractors and volunteers.

If Developer should subcontract all or any portion of the work to be performed under this Agreement, Developer shall require each subcontractor to indemnify, hold harmless and defend the City Indemnitees in accordance with the terms of the two prior paragraphs of this Section. Notwithstanding the preceding sentence, any subcontractor who is a “design professional” as defined in Section 2782.8 of the California Civil Code shall, in lieu of indemnity requirements set forth in the two prior paragraphs of this Section, be required to indemnify, hold harmless and defend the City Indemnitees to the fullest extent allowed by law, from any and all Claims and Losses that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of the design professional, its principals, officers, employees, agents or volunteers in the performance of this Agreement.

7.3.3 Damage Claims. The nature and extent of Developer’s obligations to indemnify, defend and hold harmless the City with regard to events or circumstances not addressed in Section 7.3.1 and 7.3.2 shall be governed by this Section 7.3.3. To the furthest extent allowed by law, Developer shall indemnify, hold harmless and defend City and each of its officers, officials, employees, consultants, attorneys, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Developer or any other person, and from any and all claims, demands and actions in law or equity (including reasonable attorneys’ fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of performance

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of this Agreement or the performance of any or all work to be done by Developer or its contractors, agents, successors and assigns pursuant to this Agreement (including, but not limited to design, construction and/or ongoing operation and maintenance of any required Off-Site Improvements unless and until such Off-Site Improvements are dedicated to and officially accepted by the City). Developer’s obligations under the preceding sentence shall apply regardless of whether City or any of its officers, officials, employees, consultants, attorneys, agents, or volunteers are passively negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused by the active or sole negligence, or the willful misconduct, of City or any of its officers, officials, employees, consultants, attorneys, agents or volunteers.

If Developer should subcontract all or any portion of the services to be performed under this Agreement, Developer shall require each subcontractor to indemnify, hold harmless and defend City and each of its officers, officials, employees, consultants, attorneys, agents and volunteers in accordance with the terms of the preceding paragraph. The Developer further agrees that the use for any purpose and by any person of any and all of the streets and improvements required under this Agreement, shall be at the sole and exclusive risk of the Developer, at all times prior to final acceptance by the City of the completed street and other improvements, unless any loss, liability, fines, penalties, forfeitures, costs or damages arising from said use were caused by the active or sole negligence, or the willful misconduct, of the City or any of its officers, officials, employees, consultants, attorneys, agents or authorized volunteers.

Notwithstanding the preceding paragraph, to the extent that Subcontractor is a “design professional” as defined in section 2782.8 of the California Civil Code and performing work hereunder as a “design professional” shall, in lieu of the preceding paragraph, be required to indemnify, hold harmless and defend City and each of its officers, officials, employees, consultants, attorneys, agents and volunteers to the furthest extent allowed by law, from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in Agreement, tort or strict liability, including but not limited to personal injury, death at any time and property damage), and from any and all claims, demands and actions in law or equity (including reasonable attorneys’ fees and litigation expenses) that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of the design professional, its principals, officers, employees, consultants, attorneys, agents or volunteers in the performance of this Agreement.

This Section 7.3 shall survive termination or expiration of this Agreement.

Initials Developer: Owner/Landlord:

7.4 Insurance. Except for any Off-Site Improvements constructed pursuant to the terms of this Agreement (in which case insurance for the Off-Site Improvements shall be required through the date of the City’s final formal acceptance of Off-Site Improvements

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constructed), from the Effective Date of this Agreement and at all times herein (the “Insurance Period”), Developer shall obtain and pay for and maintain in full force and effect all policies of comprehensive commercial general liability insurance described in this section with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than “B+ VII” in Best’s Insurance Rating Guide. The following policies of insurance are required:

7.4.1 Commercial General Liability. Insurance which shall be at least as broad as the most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01 and shall include insurance for bodily injury, property damage and personal injury with coverage for premises and operations (including the use of owned and non-owned equipment), products and completed operations, contractual liability (including indemnity obligations under this Agreement),with limits of liability of not less than $2,000,000.00 per occurrence for bodily injury and property damage, $1,000,000.00 per occurrence for personal injury, $2,000,000.00 general aggregate and $2,000,000.00 aggregate for products and completed operations.

7.4.2 Commercial Automobile Liability. Prior to, and as a condition of, any Delivery Operations, Insurance which shall be at least as broad as the most current version of Insurance Services Office (ISO) Business Auto Coverage Form CA 00 01 and shall include coverage for all owned, hired, and non-owned automobiles or other licensed vehicles (Code 1 B Any Auto), with combined single limits of liability of not less than $2,000,000.00 per accident for bodily injury and property damage.

7.4.3 Workers’ Compensation. Insurance as required under the California Labor Code.

7.4.4 Employers’ Liability. With minimum limits of liability of not less than $1,000,000.00 each employee incident, $1,000,000.00 policy limit.

In the event Developer purchases an Umbrella or Excess insurance policy(ies) to meet the “Minimum Limits of Insurance,” this insurance policy(ies) shall “follow form” and afford no less coverage than the primary insurance policy(ies).

Developer shall be responsible for payment of any deductibles contained in any insurance policies required hereunder and Developer shall also be responsible for payment of any selfinsured retentions.

The above-described policies of insurance shall be endorsed to provide an unrestricted thirty (30) calendar day written notice in favor of City of policy cancellation of coverage, except for the Workers’ Compensation policy which shall provide a ten (10) calendar day written notice of such cancellation of coverage. In the event any policies are due to expire during the Term of this Agreement, Developer shall provide a new certificate evidencing renewal of such policy not less than fifteen (15) calendar days prior to the expiration date of the expiring policy(ies). Upon issuance by the insurer, broker, or agent of a notice of cancellation in coverage, Developer shall file with City a new certificate and all applicable endorsements

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for such policy(ies).

The General Liability and Automobile Liability insurance policies shall be written on an occurrence form and shall name City, its officers, officials, agents, employees, consultants, attorneys, and volunteers as an additional insured. Such policy(ies) of insurance shall be endorsed so Developer’s insurance shall be primary and no contribution shall be required of City. Any Workers’ Compensation insurance policy shall contain a waiver of subrogation as to City, its officers, officials, agents, employees, consultants, attorneys, and volunteers.

Developer shall have furnished City with the certificate(s) and applicable endorsements for all required insurance prior to start of construction of any phase of development. Developer shall furnish City with copies of the actual policies upon the request of City’s City Manager at any time during the life of the Agreement or any extension, and this requirement shall survive termination or expiration of this Agreement.

If at any time during the Insurance Period, Developer fails to maintain the required insurance in full force and effect, the City Engineer, or his/her designee, may order that the Developer, or its contractors or subcontractors, immediately discontinue any further work under this Agreement and take all necessary actions to secure the work site to insure that public health and safety is protected until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City. The insurance requirements set forth in this Section 7.4 are material terms of this Agreement.

If Developer should hire a general contractor to provide all or any portion of the services or work to be performed under this Agreement, Developer shall require the general contractor to provide insurance protection in favor of City, its officers, officials, employees, consultants, attorneys, volunteers and agents in accordance with the terms of each of the preceding paragraphs, except that the general contractor’s certificates and endorsements shall be on file with Developer and City prior to the commencement of any work by the general contractor.

If the general contractor should subcontract all or a portion of the services or work to be performed under this Agreement to one or more subcontractors, Developer shall require the general contractor to require each subcontractor to provide insurance protection in favor of City, its officers, officials, employees, consultants, attorneys, volunteers and agents in accordance with the terms of each of the preceding paragraphs, except that each subcontractor shall be required to pay for and maintain Commercial General Liability insurance with limits of liability of not less than $1,000,000.00 per occurrence for bodily injury and property damage, $1,000,000.00 per occurrence for personal injury, $2,000,000.00 aggregate for products and completed operations and $2,000,000.00 general aggregate and Commercial Automobile Liability insurance with limits of liability of not less than less than $1,000,000.00 per accident for bodily injury and property damage.

Subcontractors’ certificates and endorsements shall be on file with the general contractor, Developer and City prior to the commencement of any work by the subcontractor.

Developer’s failure to comply with these requirements shall constitute an “Event of Default” as that term is defined in Section 10.1.

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8. Benefits

8.1 Benefits to the City. The City has extensively reviewed the terms and conditions of this Agreement and, in particular, has specifically considered and approved the impact and benefits of the Project upon the regional welfare. The terms and conditions of this Agreement have been found by the City to be fair, just, and reasonable, and to provide appropriate benefits to the City. This Agreement and the development of the Project will serve the best interests, and the public health, safety, and welfare of the residents and invitees, of the City and the general public. This Agreement will help provide effective and efficient development of any Off-Site Improvements and other Required Exactions in the vicinity of the Project Area; help maximize effective utilization of resources within the City; increase City tax revenues; and provide other substantial public benefits to the City and its residents by achieving the goals and purposes of the Development Agreement Laws, the McFarland Municipal Code and the 2040 McFarland General Plan (as may have been amended).

8.2 Benefits to the Developer. The Developer has expended and will continue to expend substantial amounts of time and money on the planning and development of the Project. In addition, the Developer may expend substantial amounts of time and money for the construction of Off-Site Improvements, if required, and other Required Exactions and for the payment of the Required Development Fees in connection with the Project. The Developer would not make such expenditures except in reliance upon this Agreement. The benefit to the Developer under this Agreement consists of the assurance that the City will preserve the rights of Developer to develop the Project Area as planned and as set forth in the Project Approvals and this Agreement.

9. Annual Review of Compliance.

9.1 Annual Review. City and Developer shall annually review this Agreement, and all actions taken pursuant to the terms of this Agreement with respect to the Project in accordance with the provisions of California Government Code section 65865.1 and this Section 9. The Parties recognize that this Agreement and the Project Approvals and City Permits referenced herein contain extensive requirements and that evidence of each and every requirement would be a wasteful exercise of the Parties’ resources. Accordingly, Developer shall be deemed to have satisfied its duty of demonstration if it presents evidence satisfactory to the City of its good faith compliance, as that term is used in Government Code, section 65865.1, with the material provisions of this Agreement.

9.2 Developer Report. Not later than the first anniversary date of the Effective Date, and not later than each anniversary date of the Effective Date thereafter during the Term, Developer shall apply for annual review of this Agreement. Developer shall submit with such application a report to the City Manager describing Developer’s good faith compliance with the terms of this Agreement during the preceding year (the “Developer Report”). The Developer Report shall include a statement that the report is submitted to City pursuant to the requirements of California Government Code section 65865.1. Additionally,

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as part of the Developer Report, Developer shall include a statement and evidence in support thereof that Developer has complied with the annual permit requirements of McFarland Municipal Code 19.04.060.

9.3 Finding of Compliance. Within thirty (30) days after Developer submits the Developer Report under Section 9.2, the City Manager shall review Developer’s submission to ascertain whether Developer has demonstrated good faith compliance with the material terms of this Agreement. If the City Manager finds and determines that Developer has in good faith complied with the material terms of this Agreement, or does not determine otherwise within thirty (30) days after delivery of the Developer Report, the annual review shall be deemed concluded. If the City Manager initially determines that the Developer Report is inadequate in any respect, he or she shall provide written notice to that effect to Developer, and Developer may supply such additional information or evidence as may be necessary to demonstrate good faith compliance with the material terms of this Agreement.

If the City Manager concludes that Developer has not demonstrated good faith compliance with the material terms of this Agreement, he or she shall so notify Developer prior to the expiration of the thirty (30) day period herein specified and prepare a staff report to the City Council with respect to the conclusions of the City Manager and the contentions of Developer with respect thereto (the “Staff Report”).

9.4 Hearing Before City Council to Determine Compliance. Should City Manager determine that Developer has not demonstrated good faith compliance with the material terms of this Agreement, City Manager shall submit a Staff Report to the City Council. Thereafter, City Council shall conduct a noticed public hearing to determine the good faith compliance by Developer with the material terms of this Agreement. At least sixty (60) days prior to such hearing, the City Manager shall provide to the City Council, Developer, and to all other interested Persons requesting the same, copies of the Staff Report and other information concerning Developer’s good faith compliance with the material terms of this Agreement and the conclusions and recommendations of the City Manager. At such public hearing, Developer and any other interested Person shall be entitled to submit evidence, orally or in writing, and address all the issues raised in the Staff Report on, or with respect or germane to, the issue of Developer’s good faith compliance with the material terms of this Agreement. If, after receipt of any written or oral response of Developer, and after considering all of the evidence at such public hearing, the City Council finds and determines, on the basis of substantial evidence, that Developer has not complied in good faith with the material terms of this Agreement, then the City Council shall specify to Developer the respects in which Developer has failed to comply, and shall also specify a reasonable time for Developer to meet the terms of compliance, which time shall be not less than thirty (30) days after the date of the City Council’s determination, and shall be reasonably related to the time adequate to bring Developer’s performance into good faith compliance with the material terms of this Agreement. If the areas of noncompliance specified by the City Council are not corrected within the time limits prescribed by the City Council hereunder, subject to Force Majeure pursuant to Section 12.1, then the City Council may by subsequent noticed public hearing extend the time for compliance for such period as the City Council may determine (with conditions, if the City Council deems appropriate), Terminate or modify this Agreement, or take such other actions as may be specified in the Development Agreement

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Laws. Any notice to Developer of a determination of noncompliance by Developer hereunder, or of a failure by Developer to perfect the areas of noncompliance hereunder, shall specify in reasonable detail the grounds therefor and all facts demonstrating such noncompliance or failure, so that Developer may address the issues raised in the notice of noncompliance or failure on a point-by- point basis in any hearing held by the City Council hereunder.

9.5 Meet and Confer Process. If either the City Manager or the City Council makes a determination that Developer has not demonstrated good faith substantial compliance with the material terms of this Agreement, the City Manager and/or designated City Council representatives may initiate a meet and confer process with Developer pursuant to which the Parties shall meet and confer in order to determine a resolution acceptable to both Parties of the basis upon which the City Manager or City Council has determined that Developer has not demonstrated good faith substantial compliance with the material terms of this Agreement. If, as a result of such meet and confer process, the Parties agree on a resolution on the basis related to the determination that Developer has not demonstrated good faith substantial compliance with the material terms of this Agreement, the results and recommendations of the meet and confer process shall be presented to the City Council for review and consideration at its next regularly scheduled public meeting, including consideration of such amendments to this Agreement as may be necessary or appropriate to effectuate the resolution achieved through such meet and confer process. Developer shall be deemed to be in good faith substantial compliance with the material terms of this Agreement, only upon City Council acceptance of the results and recommendations of the meet and confer process.

9.6 Certificate of Compliance. If the City Manager (or the City Council, if applicable) finds good faith substantial compliance by Developer with the material terms of this Agreement, the City Manager shall issue a certificate of compliance within ten (10) days thereafter, certifying Developer’s good faith compliance with the material terms of this Agreement through the period of the applicable annual review. Such certificate of compliance shall be in recordable form and shall contain such information as may be necessary in order to impart constructive record notice of the finding of good faith compliance hereunder. Developer shall have the right to record the certificate of compliance in the Official Records.

9.7 Effect of City Council Finding of Noncompliance; Rights of Developer. If the City Council determines that Developer has not substantially complied in good faith with the material terms of this Agreement pursuant to Section 9.4 and takes any of the actions specified in Section 9.4 with respect to such determination of noncompliance, Developer shall have the right to contest any such determination of noncompliance by the City Council pursuant to a legal action filed in accordance with Section 16.5.

9.8 City Costs. Developer shall reimburse the City for all of the City’s reasonable costs, (including but not limited to, staff time, reasonable attorneys’ fees, and administrative costs) incurred in connection with Sections 9.1 through 9.8 of this Agreement.

Pursuant to this section, Developer shall remit a deposit of Two Thousand Dollars

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($2,000.00) to the City at the time of submission of the required Developer Report. If the deposit is insufficient to reimburse the City, the City may submit an invoice to Developer, who shall render payment to the City within thirty (30) days of receiving an invoice from the City for its costs. Any excess monies deposited by Developer to the City pursuant to this Section 9.8 shall be returned to Developer by the City within thirty (30) days after issuance of the certificate of compliance or completion of any of the actions set forth in Section 9.7 of this Agreement.

10. Events Of Default; Remedies; Estoppel Certificates.

10.1 Events of Default.

10.1.1 The failure by a Party to perform any material term or provision of this Agreement (including but not limited to the failure of a Party to approve a matter or take an action within the applicable time periods governing such performance under this Agreement) shall, subject to the provisions of this Agreement, constitute an “Event of Default”, if: (a) such defaulting Party does not cure such failure within thirty (30) days following delivery of a Notice (as hereinafter defined) of default from the other Party (“Notice of Default”), where such failure is of a nature that can be cured within such thirty (30) day period; or (b) where such failure is not of a nature which can be cured within such thirty (30) day period, the defaulting Party does not within such thirty (30) day period commence substantial efforts to cure such failure, or thereafter does not within a reasonable time prosecute to completion with diligence and continuity the curing of such failure. Any Notice of Default given hereunder shall specify in reasonable detail the nature of the failures in performance by the defaulting Party and the manner in which such failures of performance may be satisfactorily cured in accordance with the terms and conditions of this Agreement.

10.1.2 Any Notice of Default to the defaulting Party pursuant to Section 10.1.1 shall satisfy the requirements of Section 15 of this Agreement and shall include a provision in at least fourteen face bold type substantially as follows: “YOU HAVE

FAILED TIMELY TO PERFORM OR RENDER AN APPROVAL OR TAKE AN ACTION REQUIRED UNDER THE DEVELOPMENT AGREEMENT: [SPECIFY IN DETAIL]. YOUR FAILURE TO COMMENCE TIMELY PERFORMANCE AND

COMPLETE SUCH PERFORMANCE AS REQUIRED UNDER THE AGREEMENT OR RENDER SUCH APPROVAL TO TAKE SUCH ACTION WITHIN THIRTY (30) DAYS

AFTER THE DATE OF THIS NOTICE SHALL ENTITLE THE UNDERSIGNED TO

TAKE ANY ACTION OR EXERCISE ANY RIGHT OR REMEDY TO WHICH IT IS

ENTITLED UNDER THE AGREEMENT AS A RESULT OF THE FOREGOING CIRCUMSTANCES.”

10.2 Remedies. Upon the occurrence of an Event of Default, each Party shall have the right, in addition to all other rights and remedies available under this Agreement, to: (a) bring any proceeding in the nature of specific performance, injunctive relief or mandamus; and/or (b) bring any action at law or in equity as may be permitted by laws of the State of California or this Agreement. In no event shall either Party be entitled to damages against the other Party based on the other Party’s Breach, except for recovery by

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the City of accrued but unpaid Exactions as defined in this Agreement.

10.3 Waiver; Remedies Cumulative. Failure by a Party to insist upon the strict or timely performance of any of the provisions of this Agreement by the other Party, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such Party’s right to demand strict compliance by such other Party in the future.

No waiver by a Party of any failure of performance, including an Event of Default, shall be effective or binding upon such Party unless made in writing by such Party, and no such waiver shall be implied from any omission by a Party to take any action with respect to such failure. No express written waiver shall affect any other action or inaction, or cover any other period of time, other than any action or inaction and/or period of time specified in such express waiver. One or more written waivers under any provision of this Agreement shall not be deemed to be a waiver of any subsequent action or inaction. Nothing in this Agreement shall limit or waive any other right or remedy available to a Party to seek injunctive relief or other expedited judicial and/or administrative relief to prevent irreparable harm.

10.4 Estoppel Certificate. Either Party may, at any time, and from time to time, deliver written notice to the other Party requesting such other Party to certify in writing:
(a) that this Agreement is in full force and effect and a binding obligation of the Parties; (b) that this Agreement has not been amended or modified either orally or in writing, and if so amended, identifying the amendments; (c) to the knowledge of such other Party, that neither Party has committed an Event of Default under this Agreement, or if an Event of Default has to such other Party’s knowledge occurred, to describe the nature of any such Event of Default; and (d) such other certifications that may be reasonably requested by the other Party or a mortgagee. A Party receiving a request hereunder shall execute and return such certificate within twenty (20) days following the receipt thereof, and if a Party fails so to do within such twenty (20) day period, the information in the requesting Party’s notice shall conclusively be deemed true and correct in all respects. The City Manager, as to the City, shall execute certificates requested by Developer hereunder. Each Party acknowledges that a certificate hereunder may be relied upon by Transferees (as hereinafter defined) and mortgagees. No Party shall, however, be liable to the requesting Party, or other Person requesting or receiving a certificate hereunder, on account of any information therein contained, notwithstanding the omission for any reason to disclose correct and/or relevant information, but such Party shall be estopped with respect to the requesting Party, or such third Person, from asserting any right or obligation, or utilizing any defense, which contravenes or is contrary to any such information.

11. Transfers.

11.1 Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below:
“Affiliate” means any Person directly or indirectly Controlling, Controlled by or under Common Control with Developer and/or Property Owner. “Control” means the ownership (direct or indirect) by one Person of

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an interest in the profits and capital and the right to manage and control the day to day affairs of another Person. The term “Control” includes any grammatical variation thereof, including “Controlled” and “Controlling”.
“Common Control” means that two Persons are both controlled by the same other Person.
”Person” means an individual, partnership, firm, association, corporation, trust, governmental agency, administrative tribunal or other form of business or legal entity.
“Transfer” means the sale, assignment, or other transfer by Developer of this Agreement, or any right, duty or obligation of Developer under this Agreement, including by foreclosure, trustee sale, or deed in lieu of foreclosure, under a mortgage, but excluding: (a) a dedication of any portion of the Project Area to the City or another governmental agency; (b) a mortgage; (c) ground leases, leases, subleases, licenses and operating agreements entered into by Developer with tenants or occupants of the Project for occupancy of space in any buildings or improvements (together with any appurtenant tenant rights and controls customarily included in such leases or subleases) in the Project, and any assignment or transfer of any such ground lease, lease, sublease, license or operating agreement by either party thereto; (d) any sale of a building pad and surrounding area in the Project Area to a future retail or restaurant occupant (or its affiliated entity) for the intended purpose of the development and occupancy of a building or improvement thereon; and (e) any collateral assignment of this Agreement to a mortgagee. “Transferee” means the Person to whom a Transfer is effected.

11.2 Conditions Precedent to Developer Right to Transfer. Except as otherwise provided in this Section 11, Developer shall only have the right to effect a Transfer subject to and upon fulfillment of the following conditions precedent:

11.2.1 No Event of Default by Developer shall be outstanding and uncured as of the effective date of the proposed Transfer, unless the City Council has received adequate assurances satisfactory to the City Council that such Event of Default shall be cured in a timely manner either by Developer or the Transferee under the Transfer.

11.2.2 Prior to the effective date of the proposed Transfer, Developer or the proposed Transferee has delivered to the City an executed and acknowledged assignment and assumption agreement (the “Assumption Agreement”) in recordable form.

Such Assumption Agreement shall include provisions regarding: (a) the rights and interest proposed to be Transferred to the proposed Transferee; (b) the obligations of Developer under this Agreement that the proposed Transferee will assume; and (c) the proposed Transferee’s acknowledgment that such Transferee has reviewed and agrees to be bound by this Agreement. The Assumption Agreement shall also include the name, form of entity, and address of the proposed Transferee, and shall provide that the Transferee assumes the obligations of Developer in connection with the proposed Transfer. The Assumption

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Agreement shall be recorded in the Official Records concurrently with the consummation of the Transfer.

11.2.3 Prior to the effective date of the proposed Transfer, City consents in writing to the Transfer. City’s consent shall not be unreasonably withheld or denied. Factors the City may consider in determining whether to consent to the transfer include the financial capacity of the proposed Transferee to comply with all of the terms of the Agreement and the history, if any, of compliance of Transferee, its principals, officers or owners with the provisions of federal or state law, the McFarland Municipal Code or agreements with the City relating to development projects within the City of McFarland, and whether the Transferee has sought, qualified for, and obtained a commercial cannabis permit as required by Chapter 19.04 of the McFarland Municipal Code.

11.3 Transfer to Affiliate. Notwithstanding the provisions of Section 11.2, Developer shall have the right to Transfer all of its rights, duties and obligations under this Agreement to an Affiliate of Developer. Such Affiliate shall become a Transferee upon: (a) the acquisition by such Affiliate of the affected interest of Developer under this Agreement; (b) delivery to the City of an Assumption Agreement executed by the Affiliate pursuant to which the Affiliate assumes, from and after the date such Affiliate so acquires its interest, the applicable rights, duties and obligations of Developer under this Agreement and (c) delivery to the City of documents and other evidence establishing the Affiliate’s financial capacity to meet all of its duties and obligations under this Agreement. By virtue of its demonstrated status as an Affiliate of Developer and recognizing that Transfers to Affiliates will facilitate Developer’s ability to develop the Project consistent with this Agreement, the City hereby consents to any Transfer to an Affiliate in accordance with this Section and no further consent of the City shall be required for any Transfer by Developer to an Affiliate.

11.4 Mortgagee as Transferee. No mortgage (including the execution and delivery thereof to the mortgagee) shall constitute a Transfer. A mortgagee shall be a Transferee only upon: (a) the acquisition by such mortgagee of the affected interest of Developer encumbered by such mortgagee’s mortgage; and (b) delivery to the City of an Assumption Agreement executed by the mortgagee pursuant to which the mortgagee assumes, from and after the date such mortgagee so acquires its interest, the applicable rights, duties and obligations of Developer under this Agreement. No further consent of the City shall be required for any such Transfer to a mortgagee.

11.5 Effect of Transfer. A Transferee shall become a Party to this Agreement only with respect to the interest transferred to it under the Transfer and then only to the extent set forth in the Assumption Agreement delivered under Sections 11.2.2, 11.3 and 11.4. When and if Developer Transfers all of its rights, duties and obligations under this Agreement in accordance with Section 11.2, 11.3 or 11.4, Developer shall be released from any and all obligations accruing after the date of the Transfer under this Agreement. If Developer effectuates a Transfer as to only some but not all of its rights, duties and obligations under this Agreement, Developer shall be released only from its obligations accruing after the date of the Transfer which the Transferee assumes in the Assumption Agreement.

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11.6 No Transfer of Commercial Cannabis Permit. Notwithstanding any other provision of this Agreement, a commercial cannabis permit shall not be subject to the transfer process, and prior to any transfer Transferee must seek, qualify for, and obtain a commercial cannabis permit as required by Chapter 19.04 of the McFarland Municipal Code.

12. Enforced Delay; Extension of Time of Performance; Excused Performance.

12.1 Except as otherwise provided by specific provisions of this Development Agreement, performance by either Party hereunder shall not be deemed to be in default where delays or defaults are due to:

12.1.1 Force Majeure. In addition to specific provisions of this Agreement, performance by any Party hereunder shall not be deemed to be in default where delays or failures to perform are due to pandemics, war, insurrection, strikes, walk-outs, riots, floods, earthquakes, civil unrest, the discovery and remediation of hazardous waste or significant geologic, hydrologic, archaeologic or paleontologic problems on the Project Area, fires, casualties, acts of God, shortages of labor or material, governmental restrictions imposed or mandated by governmental agencies or entities other than the City, enactment of conflicting state or federal statutes or regulations, judicial decisions, litigation not commenced by a Party to this Agreement claiming the enforced delay, or any other basis for excused performance which is not within the reasonable control of the Party to be excused.

Causes for delay as set forth above are collectively referred to as “Force Majeure.”

12.1.1.1 Notice of Force Majeure. If Notice (as hereinafter defined) of such delay or impossibility of performance is provided to a Party within thirty (30) days after the commencement of such delay or condition of impossibility, an extension of time for such cause shall not be unreasonably denied by such Party. The extension shall be for the period of the enforced delay, or longer as may be mutually agreed upon by the applicable Parties in writing. Any performance rendered impossible shall be excused in writing by the Party so notified.

12.1.2 Development Factors. Inability to secure necessary labor, materials or tools, strikes, lockouts, other labor disputes, or delays of any contractor, subcontractor, or supplier.

12.1.3 Extensions. An extension of time in writing for any of the causes set forth in this Section 12 above shall be granted for the period of the enforced delay if of a known duration, or longer as mutually agreed upon, or for a reasonable time as determined by the City if the parties cannot agree, which period shall commence to run from the time of commencement of cause.

13. Project Approvals Independent. Except to the extent otherwise recognized by CEQA, all City Permits which may be granted pursuant to this Agreement, and all Project Approvals which have been issued or granted by the City with respect to the Project Area and the Project, constitute independent actions and approvals by the City. If any provision

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of this Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid or unenforceable, or if this Agreement is Terminated for any reason, then such invalidity, unenforceability or Termination of this Agreement, or any part hereof, shall not affect the validity or effectiveness of any such City Permits or the Project Approvals. In such cases, such City Permits and Project Approvals will remain in effect pursuant to their own terms, provisions, and conditions of approval. As such, the City may place conditions of approval on all City Permits which may be granted pursuant to this Agreement, and Project Approvals which have been issued or granted by the City with respect to the Project Area and the Project, so long as such conditions are consistent with the terms of this Agreement.

14. Notices

14.1 Form of Notices; Addresses. All notices and other communications (the “Notices”) required or permitted to be given by any Party to another Party pursuant to this Agreement shall be properly given only if the Notice is: (a) made in writing (whether or not so stated elsewhere in this Agreement); (b) given by one of the methods prescribed in Section 14.2; and (c) sent to the Party (to which it is addressed at the address set forth below (with a copy to the appropriate entity as indicated below) or at such other address as such Party (or the addressee required to be sent a copy) may hereafter specify by at least five (5) calendar days’ prior to written notice being sent:

If to City: City of McFarland
Attn: City Manager
401 W. Kern Ave
McFarland, CA 93250
Facsimile: (661) 854-0817
And to: Hodges Law Group
Attn: Nathan M. Hodges
1925 G Street
Bakersfield, CA 93301
If to Developer: OTC McFarland, LLC
Attn: Norman Yousif
771 Jamacha Road, 358
El Cajon, CA 92019
And to: Maddocks Law, P.C.

Attn: Sean Maddocks
23 Corporate Plaza Dr., #150
Newport Beach, CA 92660
If to Landlord: Guadalupe F. Garcia Diaz
641 Drake Avenue
Fullerton, CA 93832

33 DEVELOPMENT AGREEMENT

14.2 Methods of Delivery. Notices may be either: (a) delivered by hand; or (b) delivered by a nationally recognized overnight courier which maintains evidence of receipt. Notices shall be effective two on the date of personal delivery, or two (2) days after date of mailing.

15. General Provisions.

15.1 City’s Reservation of Authority. The Parties acknowledge and agree that the intent of the Parties is that this Agreement be construed in a manner that protects the vested rights granted to Developer herein. Except for the limitations on the exercise by the City of its police power which are provided in this Agreement or which are construed in accordance with the immediately preceding sentence, the Parties further acknowledge and agree that: (a) the City reserves all of its police power and/or statutory or other legal powers or responsibilities; (b) the City reserves all of its authority to enact additional regulations, whether enacted by the City Council or the City Manager, relating to commercial cannabis business activities; and (c) this Agreement shall not be construed to limit the authority or obligation of the City to hold necessary public hearings, to limit the discretion of the City or any of its officers or officials with regard to rules, regulations, ordinances, laws, and entitlement of use which require the exercise of discretion by the City or any of its officers or officials. This Agreement shall not be construed to limit the obligations of the City to comply with CEQA or any other federal or state law.

15.2 Amendment or Cancellation. Subject to meeting the notice and hearing requirements of section 65867 of the California Government Code, this Agreement may be amended from time to time, or canceled in whole or in part, by mutual written consent of the City and Developer, or their respective successors in interest in accordance with the provisions of section 65868 of the California Government Code.

15.3 Successor and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties, and any subsequent owners of all or any portion of the Project Area and their respective successors and assigns. Any successors in interest to the City shall be subject to the provisions set forth in sections 65865.4 and 65868.5 of the California Government Code.

15.4 Interpretation and Governing State Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objective and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, both Parties having been represented by counsel in the negotiation and preparation hereof. All legal actions brought to enforce the terms of this Agreement shall be brought and heard solely in the Superior Court of the State of California, County of Kern.

15.5 No Third-Party Beneficiaries. This Agreement is made and entered

34 DEVELOPMENT AGREEMENT
into for the sole protection and benefit of the Parties and their successors and assigns. No other Person shall have any right of action based upon any provision of this Agreement.

15.6 Future Acquisitions. In the event that Developer or an affiliate of Developer acquires or obtains a legal or equitable interest in any portion of the Project Area other than the Project Area (the “After Acquired Land”) during the Term of this Agreement, the City and Developer shall engage in good faith negotiations for a development agreement between the City and Developer pursuant to the Development Agreement Laws for the development of a portion of the Project on the After Acquired Land.

15.7 Attorneys’ Fees. If either Party commences any action for the interpretation, enforcement, termination, cancellation or rescission hereof, or for specific performance of the breach hereof, the prevailing party shall be entitled to its reasonable attorneys’ fees and litigation expenses and costs, and any judgment, order or decree rendered in such action, suit or proceeding shall include an award thereof. Attorneys’ fees under this Section shall include attorneys' fees on any appeal and any post-judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement.

15.8 Limitation of Legal Acts. Except as provided in Section 15.7, in no event shall the City, or its officers, agents or employees, be liable in damages for any breach or violation of this Agreement, it being expressly understood and agreed that the Developer's sole legal remedy for a breach or violation of this Agreement by the City shall be a legal action in mandamus, specific performance or other injunctive or declaratory relief to enforce the provisions of this Agreement, provided that, City’s limitation of liability in this Section

15.8 shall not apply to any gross negligence and/or willful misconduct caused by City on Developer’s premises.

15.9 Validation. If so requested in writing by the Developer, the City agrees to initiate appropriate procedure under California Code of plans Procedure section 860 et seq., in order to validate this Agreement, and the obligations thereunder. Any validation undertaken at the request of the Developer shall be at the sole cost of the Developer.

15.10 Successor Statutes Incorporated. All references to a statute or ordinance, shall incorporate any, or all, successor statute or ordinance enacted to govern the activity now governed by the statute or ordinance, noted herein to the extent, however, that incorporation of such successor statute or ordinance does not adversely affect the benefits and protections granted to the Developer under this Agreement.

15.11 Incorporation of Attachments. All recitals and attachments to this Agreement, including all exhibits referenced herein, and all subparts thereto, are incorporated herein by this reference.

15.12 Negation of Partnership. The Parties specifically acknowledge that the Project is a private development, that neither Party is acting as the agent of the other in

35 DEVELOPMENT AGREEMENT
any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. None of the terms or provisions of this Agreement shall be deemed to create a partnership between or among the Parties in the businesses of Developer, the affairs of the City, or otherwise, or cause them to be considered joint venturers or members of any joint enterprise. This Agreement is not intended and shall not be construed to create any third-party beneficiary rights in any Person who is not a Party or a Transferee; and nothing in this Agreement shall limit or waive any rights Developer may have or acquire against any third Person with respect to the terms, covenants or conditions of this Agreement.

15.13 Not A Public Dedication. Except for Required Exactions specifically set forth in this Agreement and then only when made to the extent so required, nothing herein contained shall be deemed to be a gift or dedication of the Project Area or any buildings or improvements constructed in the Project, to the general public, for the general public, or for any public use or purpose whatsoever, it being the intention and understanding of the Parties that this Agreement be strictly limited to and for the purposes herein expressed for the development of the Project Area as private property.

15.14 No Consideration to any Third Party. Each of the Parties warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this Section, shall not include persons to whom fees are paid for professional services if rendered by attorneys, financial or other consultants, accountants, engineers, architects and the like when such fees are considered necessary by the Party. For the purposes of this paragraph, third parties shall include any elected official, officer, employee, or agent of the City. This warranty includes each Party’s assurance that it has not employed any licensed real estate broker or salesperson, or other person, licensed or unlicensed, to whom a commission or other form of compensation is due.

15.15 Independent Legal Advice/Interpretation of Agreement. Each Party represents and warrants the following; it has carefully read this Development Agreement, and in signing this Development Agreement, and agreeing to be bound by the same, it has received independent legal advice from legal counsel as to the matters set forth in this Development Agreement, or has knowingly chosen not to consult legal counsel as to the matters set forth in this Development Agreement, and it has freely signed this Development Agreement and agreed to be bound by it without any reliance upon any agreement, promise, statement or representation by or on behalf of the other Party, or its officers, agents, employees, or attorneys, except as specifically set forth in this Development Agreement, and without duress or coercion, whether economic or otherwise. This Development Agreement shall be interpreted as though prepared jointly and severally by both of the Parties.

15.16 Entire Agreement. This Development Agreement and the Exhibits therein contain the entire agreement between the Parties, and is intended by the Parties to completely state the Development Agreement in full. Any agreement or representation respecting the matters dealt with herein or the duties of any Party in relation thereto, not expressly set forth in this Development Agreement, is null and void. Any amendment hereto

36 DEVELOPMENT AGREEMENT
is not valid unless signed by both parties.

15.17 Severability. Invalidation of any of the provisions contained in this Agreement, or of the application thereof to any Person, by judgment or court order, shall in no way affect any of the other provisions hereof or the application thereof to any other Person or circumstance and the same shall remain in full force and effect, unless enforcement of this Agreement as so invalidated would be unreasonable or grossly inequitable under all the circumstances or would frustrate the purposes of this Agreement.

15.18 Headings. Titles or headings of sections, paragraphs or provisions of this Development Agreement are provided as an aid and are to be considered part of the Agreement itself.

15.19 Counterparts. This Agreement may be executed in two or more identical counterparts, each of which shall be deemed to be an original and each of which shall be deemed to be one and the same instrument when each Party signs each such counterpart.

15.20 Additional Documents. The Parties each agree to execute any additional forms, notices, applications, or other documents that are reasonably necessary to carry out the intent of this Development Agreement.

15.21 Days. Unless otherwise specified in this Agreement, the term “days” means calendar days.

SIGNATURES ARE ON THE FOLLOWING PAGE

37 DEVELOPMENT AGREEMENT

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement.

Dated: , 2023 OWNER/LANDLORD:

Guadalupe F. Garcia Diaz
By:

Guadalupe F. Garcia Diaz
Dated: , 2023 DEVELOPER:

OTC McFarland, LLC
By:

Norman Yousif, Manager & CEO
Dated: , 2023 DEVELOPER:

OTC McFarland, LLC
By:

Norman Yousif, Manager & CEO
Dated: , 2023 CITY OF MCFARLAND
By:

Saul Ayon, Mayor
APPROVED AS TO FORM:

By:

Nathan Hodges, City Attorney
ATTEST:

By:

Francisca Alvarado, City Clerk

EXHIBIT A

EXHIBIT B

EXHIBIT C

EXHIBIT D
Effective Date Amount Due
Within ten (10) days following each
month of operation, following the
commencement of Commercial
Cannabis Activity
15% of Gross Receipts from
Operations each month.

Within ten (10) days following the
end of each quarter of operation,
following the commencement of
Commercial Cannabis Activity
A list of contributions made to
community organizations, which are
recommended by the Cannabis
Committee and approved by Council,
equaling 1% of Gross Receipts from
Operations

City of McFarland
City Council Meeting

STAFF REPORT
Agenda Item No. 13.

Section: ADMINISTRATIVE
AGENDA
Meeting Date: December 14,
2023
TO: Honorable Mayor and Council Members
FROM: Kenny Williams, City Manager
Paul Saldaña , Community Development Director
SUBJECT: Approval of Resolution No. 2023-150 A Resolution of the City Council of the City of McFarland, California, Approving the Position of Development Services Manager in the Community Development Department.

SUMMARY:

On September 14, 2023, the City Council adopted resolution 2023-108 appropriating funds and authorizing the creation of the Community Development Technician and Grants Manger position to the Community Development Department. The transition of the Grant Administrator in Training to the Community Development Technician was completed. The Grants Manager position recruitment began immediately after the position was authorized and did not yield a strong pool of candidates at the caliber and experience expected for the position. Likewise, the Building Inspector/Code Enforcement Officer position has been vacant and an ongoing recruitment has yielded limited candidates. Building inspection and plan check services have been provided through contracts with Interwest Consulting and CSG Consulting.

In the interim time that the vacancies and recruitment have occurred, the Community Development Director has assumed additional responsibilities in grant procurement, project management and intergovernmental relations. This has provided the opportunity to evaluate the staffing plan in light of the lack of qualified candidates for Grants Manager position, particularly since it is a narrow scope and responsibility that requires a strong background and ability to work independently in seeking and managing grants. Consequently, staff has looked for opportunities to better position the City for success and utilize staffing in a more efficient manner commensurate with their skill sets.

Staff is recommending the creation of Development Service Manager within the Community Development Department. The job description (attached) would place this position at a management level with direct supervision of building, planning and code enforcement staff. It is expected that the individual hired for this position will be experienced to also provide services in planning, plan check, building and code enforcement. The manager would manage work flow and assignments and ensure that development services are applicable managed in an efficient manner. They will be able to pick up a lot of the day-to-day work that either the Director currently provides or is provided by outside consulting.

The Director will oversee grant administration, economic development and lead out major development initiatives, as well as other major city priorities and projects. It is anticipated that as projects increase a Management Analyst position will be added to provide technical support

for the Department. This position will be considered during budget deliberations.

FINANCIAL IMPACT:

The City Council previously increased the Department budget on September 14, 2023.

Additional costs will be absorbed in the current budget due to cost savings from vacant position savings and a decrease in outside consulting costs.

RECOMMENDATION:

Staff recommends City Council Report, discuss, and possibly approve Resolution No. 2023- 150 approving the creation of Development Services Manager in the Community Development Department.

ATTACHMENTS:

1. Development Services Manager Job Description

RESOLUTION NO. 2023-150

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND

AUTHORIZING THE ESTABLISHMENT OF THE DEVELOPMENT SERVICES MANAGER

POSITION IN THE COMMUNITY DEVELOPMENT DEPARTMENT
WHEREAS, the Community Development Department of the City of McFarland has identified a growing need for additional managerial expertise to handle development services projects; and WHEREAS, the City has reviewed the functions and responsibilities of the Community Development Department, finding the creation of the Development Services Manager position is imperative for the effective functioning of the City's building and planning functions; and WHEREAS, the Community Development Department and Human Resources Department have conducted a compensation review and has proposed a new salary range for the Development Services Manager position , classified at Range 48 with pay rates of $40.04 to $52.25 per hour.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:

1. The foregoing recitals are true and correct and incorporated herein as if set forth in full.

2. The City Council hereby authorizes the establishment of the Development Services Manager position within the Community Development Department.

3. The City Council approves the salary range for the Development Services Manager position, classified as Range 48, with pay rates of $40.04 to 51.25 per hour.

4. The City Clerk shall certify to the passage and adoption of this resolution.

5. This resolution shall take effect immediately upon its passage.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on December 14, 2023 by the following vote:

Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez

CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Francisca Alvarado, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein. _____________________________
Francisca Alvarado, City Clerk

CITY OF MCFARLAND
Development Services Manager
Salary Range: $40.04 - $ 51.25 (Exempt)
$ 3,202.97 - $4,100.04 (Bi-Weekly)
POSITION SUMMARY: The Development Services Manager plays a pivotal role within our organization, overseeing and coordinating various aspects of our development projects. This position requires a highly organized, detail-oriented, and results-driven individual who can effectively manage teams, budgets, timelines, and resources to ensure the successful execution of our development initiatives.

As the Development Services Manager, you will be responsible for driving the growth and success of our projects while maintaining a commitment to quality, compliance, and client satisfaction.

Job Duties:

Important responsibilities and duties may include, but are not limited to, the following:
• Assume management responsibility for all planning, building, and code enforcement services and activities.
• Manage and participate in the development and implementation of goals, objectives, policies, and priorities of assigned planning and community development programs and functions.
• Continuously monitor and evaluate the efficiency and effectiveness of service delivery methods and procedures; assess and monitor workload, administrative and support systems, and internal reporting relationships; identify opportunities for improvement and review with Community Development Director; implement improvements. • Select, train, motivate, and evaluate assigned staff; provide or coordinate staff training; work with employees to correct deficiencies; implement discipline and termination procedures.
• Serve as Acting Community Development Director in the Director’s absence when designated.
• Plan, direct, coordinate, and review the work plan for assigned planning functions; meet with staff to identify and resolve problems; assign work activities, projects, and programs; monitor workflow; review and evaluate work products, methods, and procedures.
• Manage and participate in the development and administration of the Community Development Department’s annual budget; direct the forecast of additional funds needed for staffing, equipment, materials, and supplies; direct the monitoring of and approve expenditures; direct and implement adjustments as necessary.

• Serve as a liaison with other City departments, divisions, and outside agencies; negotiate and resolve significant and controversial issues.
• Provide responsible staff assistance to the Community Development Director and the Planning Commission as necessary; prepare and present staff reports and other related correspondence.
• Assist in the administration of contracts with engineers, planners, building and safety services and consultants in support of assigned activities and programs; evaluate quality of products and approve contractor payments.
• Prepare and present complex planning-related reports for the City’s Planning Commission, and City Council regarding Department findings and recommendations. • Review, assign, and process development permit applications including those for new subdivisions, lot line adjustments, variance, land-use permits, and zoning amendments. • Interpret and apply land-use, environmental, subdivision, and general planning laws and regulations to ensure compliance with City development projects and municipal code amendments.
• Interpret and enforce the building codes adopted by the City as well as other City codes related to property development and building construction. • Issue building permits, construction trades permits, fire sprinkler, fire alarm, life safety permits, and other similar permits as assigned.
• Administer plan review and field inspection industry contacts. • Perform inspections and construction plan review, as needed. • Conduct a variety of organizational studies, investigations, and operational studies; recommend modifications to assigned planning programs, policies, and procedures as appropriate.
• Establish and maintain customer service standards.
• Ensure that customers receive timely assistance and accurate information. • Receive complaints and resolve difficult issues and situations with customers. • Investigate various citizen inquiries concerning building and safety violations. • Provide timely response to complaints and take necessary steps to resolve issues and code related violations.
• Provide information, professional advice, and assistance for individuals, departments, groups, or the general public on planning, building and development construction issues. • Gain cooperation regarding complaints and code violation issues through discussion and negotiation.
• Perform other duties as assigned.

MINIMUM QUALIFICATIONS
• Operational characteristics, services, and activities of urban planning programs. • Organizational and management practices as applied to the analysis and evaluation of programs, policies, and operational needs.

• Modern and complex principles and practices of urban planning and community development program development and administration.
• Urban planning theory, principles, and practices and their application to a wide variety of community development activities.
• Contract service planning, bidding, negotiation, administration, and performance evaluation.
• Research methods and sources of information related to urban growth and development. • Research developments, current literature, and trends relating to municipal planning and community development program administration.
• Principles and practices of municipal budget preparation and control. • Principles of supervision, training, and performance evaluation. • Pertinent Federal, State, and local laws, codes, and regulations. • English usage, spelling, grammar, and punctuation.
• Business letter writing and technical report preparation.

Ability to:
• Manage, direct, and coordinate the work of Professional, Technical, and Clerical staff. • Select, supervise, train, and evaluate staff.
• Provide administrative and professional leadership and direction for assigned • planning division.
• Recommend and implement goals, objectives, and practices for providing effective and efficient community development and urban planning services. • Prepare and administer large and complex budgets.
• Prepare clear and concise administrative and technical reports. • Analyze problems; identify alternative solutions; project consequences of proposed actions; implement recommendations in support of goals. • Research, analyze, and evaluate new service delivery methods, procedures, and techniques.
• Interpret and apply Federal, State, and local policies, procedures, laws, and regulations. • Perform responsible and difficult work involving the use of independent judgment and personal initiative.
• Understand the organization and operation of the City and of outside agencies as necessary to assume assigned responsibilities.
• Interpret and apply administrative and departmental policies and procedures. • Communicate clearly and concisely, both orally and in writing. • Establish and maintain effective working relationships.

Experience and Training:

Any combination of experience and training that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:

Four years of increasingly responsible professional urban planning and/or building inspection experience including at least one year of supervisory responsibility.

Equivalent to a Bachelor’s degree from an accredited college or university with major coursework in planning, public or business administration, or a related field.

Master’s degree in public administration or business administration preferred Licenses:

Possession of, or ability to obtain, a valid California Driver's License.

COMPENSATION AND BENEFITS:

The City of McFarland offers an excellent benefits package including:
o Comprehensive City paid medical, dental, and vision benefits for the employee and dependents o Life insurance equal to 1-year base salary with a minimum of $50,000 o Retirement: Deferred Compensation 401(k) -The City of McFarland contributes an additional 10% of an employee's pay each pay period into a 401K plan, at no cost to the employee. The City is not a PERS (Public Employees Retirement System) Agency o Supplemental life insurance (Optional)
o Deferred Compensation 457 Plan (Optional)
o Section 125 plan participation’
o 1 Personal Day
o 12 Days' Vacation/ 12 Days’ Sick pay accrued annually o 12 Days Holiday Pay
o Monday through Friday 8 am to 5 pm (We are pleased to offer a 9/80 work schedule as an option to our team members, upon meeting job performance expectations.) APPLICATION: To apply, please complete and application online at www.mcfarlandcity.org. Resumes will not be accepted in lieu of a City employment application. To be considered for this position, please submit complete employment application and resume.

EQUAL OPPORTUNITY EMPLOYER: The City of McFarland is an Equal Opportunity Employer. In accordance with the Americans with Disabilities Act of 1990 (ADA), requests for special accommodations during any stage of the examination process should be made in advance to the Human Resources Department.

City of McFarland
City Council Meeting

STAFF REPORT
Agenda Item No. 14.

Section: ADMINISTRATIVE
AGENDA
Meeting Date: December 14,
2023
TO: Honorable Mayor and Council Members
FROM: Kenny Williams, City Manager
Diego Viramontes, Finance Director
SUBJECT: Approval of Resolution No. 2023-152 A Resolution of the City Council of the City of McFarland, California, Approving the Appropriation of Funds for the Executime Electronic Time & Attendance Project.

SUMMARY:

This report seeks approval for the appropriation of $15,000 from the General Fund's Management Information Systems division. This funding is crucial for the successful implementation of the Executime electronic Time & Attendance project, a Tyler Technologies product. Executime integrates seamlessly with our ERP Pro 10 accounting and payroll software.

Background:

Initiated in April 2021, the Executime project initially received an investment of approximately $40,000 for upgraded server costs, Tyler Technologies programming/implementation costs, and miscellaneous expenses. However, due to departmental turnover and instability, the project stalled. We are now re-engaging with a planned implementation date of 7/1/2024. The current server, however, no longer meets necessary standards.

Benefits of Executime Implementation:
• Efficiency: Executime's electronic timekeeping system will significantly reduce the inefficiencies of our current paper-based timesheets.
• Accuracy: It will minimize errors inherent in manual time recording, improving payroll accuracy.
• Integration: The system will integrate seamlessly with our existing accounting and payroll software, enhancing our financial management capabilities.

FINANCIAL IMPACT:

The total request of $15,000 encompasses the following items:

1. Server Upgrades: Necessary upgrades to our server system are estimated at $4,565.78,

2. Time Clock Replacements: To replace three analog time clocks with touch screen, barcode-enabled clocks compatible with Executime, we estimate a cost of $7,244.

3. Contingencies and Installation Costs: An additional $3,190.22 is requested to cover any unforeseen expenses and installation costs.

RECOMMENDATION:

Given the significant benefits of transitioning to an electronic timekeeping system and the urgency to update our current infrastructure, we recommend the City Council to Discuss and Approve Resolution No. 2023-152 A Resolution of the City Council of the City of McFarland, California, Approving the Appropriation of Funds for the Executime Electronic Time & Attendance Project. This approval would appropriate $15,000 from the Management Information Systems division of the General Fund. This will enable us to move forward with the Executime project, aligning with our commitment to efficient and accurate financial management.

ATTACHMENTS:

1. Quote for Server Upgrades

2. Quote for Time Clock Replacements

RESOLUTION NO. 2023-152

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND, CALIFORNIA,

APPROVING THE APPROPRIATION OF FUNDS FOR THE EXECUTIME ELECTRONIC

TIME & ATTENDANCE PROJECT
WHEREAS, the City Council has already approved and passed a budget for the fiscal year 2023/24; and
WHEREAS, the City Council recognizes the Executime electronic Time & Attendance was not included in the approved budget; and
WHEREAS, the City of McFarland has recognized the need to improve the efficiency and accuracy of its timekeeping and payroll systems; and
WHEREAS, the Executime electronic Time & Attendance project, a product of Tyler Technologies, was initiated in April 2021 with an initial investment of approximately $40,000 covering server upgrades, programming/implementation costs, and miscellaneous expenses; and WHEREAS, due to unforeseen turnover and instability within the Finance Department, the Executime project has faced delays, necessitating a re-engagement with a projected implementation date of July 1, 2024; and
WHEREAS, it has been determined that the current server system no longer meets the necessary standards for the Executime software, thereby requiring an upgrade; and WHEREAS, the transition from analog to modern, touch screen, barcode-enabled time clocks is essential for the integration and optimal functioning of the Executime system; and WHEREAS, the Finance Director has submitted a Staff Report requesting the appropriation of an additional $15,000 from the General Fund's Management Information Systems division to cover software upgrades, time clock replacements, contingencies, and installation costs; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:

1. The foregoing recitals are true and correct and incorporated herein as if set forth in full.

2. The City Council hereby approves the appropriation of $15,000 from the Management Information Systems division of the General Fund for the Executime electronic Time & Attendance project.

3. The Finance Department is tasked with the oversight and implementation of the Executime

project, ensuring its completion by the projected date of July 1, 2024.

4. The City Clerk shall certify to the passage and adoption of this resolution.

5. This resolution is effective immediately.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on December 14, 2023 by the following vote:

Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez

CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Francisca Alvarado, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein. _____________________________
Francisca Alvarado, City Clerk

T
American Office Solutions LLC
Estimate
Prepared for: Diego Viramontes
City of McFarland City Hall
401 West Kern Avenue
McFarland, CA 93250
United States
Prepared by:

American Office Solutions LLC
819 18th Street, Bakersfield, CA 93301
Date Prepared:
11/28/2023
Corporate Headquarters 819 18th Street, Bakersfield, CA 93301 (661) 869-1001 P www.aoffs.com

1 of 3
11/28/2023
Diego Viramontes
City of McFarland City Hall
401 West Kern Avenue
McFarland, CA 93250
United States
Dear Diego:

Here is the quote you requested.

Upon review, if you would like us to modify any of the contents of this estimate please feel free to contact me and I will address your requests.

Best Regards,
American Office Solutions LLC
[email protected]

2 of 3
American Office Solutions LLC Estimate
Solution Summary

QTY DESCRIPTION UNIT PRICE TOTAL PRICE
1 PowerEdge R250 $4,217.81 $4,217.81
SUBTOTAL $4,217.81

SALES TAX
$347.97
TOTAL (ONE TIME) $4,565.78

YEARLY LICENSE
$0.00
To place order please Sign and Date
IMPORTANT NOTE: All equipment is subject to withdrawal or modification and a possible 10% increase due to availability and the ongoing chip shortage effecting IT equipment. The final pricing and configuration may need to be adjusted to include items such as: additional products, licenses, professional services, shipping, or taxes. Drive Time to and from site will be billed additionally. If project is delayed on behalf of the client, progress billing will go into effect.

City of McFarland City Hall
City of McFarland City Hall
401 West Kern Avenue McFarland, CA 93250
United States
_______________________________________
Signature
_______________________________________ ___________________ Printed Name/Title Date Proprietary & Confidential Page 3 of 3
American Office Solutions LLC

3 of 3
2023-441875-T1N2W5 CONFIDENTIAL Page 1
Sales Quotation For:

City of McFarland
401 W Kern Ave
Mc Farland CA 93250-1352
Diego Viramontes
+1 (661) 586-3970
[email protected]
Quoted BY Robin Reeves
Quote Expiration 6/2/24
Quote Name Touchscreen 7 Timeclocks
Third Party Software & Hardware
Description Quantity Unit Price
Extended
Price Annual
Tyler One
Time & Attendance powered by ExecuTime
Touchscreen 7 : Barcode Reader 3 $ 2,195 $ 6,585 $ 659
TOTAL: $ 6,585 $ 659

2023-441875-T1N2W5 CONFIDENTIAL Page 2
Summary One Time Fees Recurring Fees
Total Third Party Hardware, Software, Services $ 6,585 $ 659 Total Tyler Services
Summary Total $ 6,585 $ 659
Contract Total $ 7,244

2023-441875-T1N2W5 CONFIDENTIAL Page 3
Comments
Client agrees that items in this sales quotation are, upon Client's signature or approval of same, hereby added to the existing agreement ("Agreement") between the parties and subject to its terms. Additionally, payment for said items, as applicable but subject to any listed assumptions herein, shall conform to the following terms, subject to payment terms in an agreement, amendment, or similar document in which this sales quotation is included:
• License fees for Tyler and third-party software are invoiced upon the earlier of (i) delivery of the license key or (ii) when Tyler makes such software available accessible. • Fees for hardware are invoiced upon delivery.
• Fees for year one of hardware maintenance are invoiced upon delivery of the hardware. • Annual Maintenance and Support fees, SaaS fees, Hosting fees, and Subscription fees are first payable when Tyler makes the software accessible to the Client (for Maintenance) or on the first day of the month following the date this quotation was signed (for SaaS, Hosting, and Subscription), and any such fees are prorated to align with the applicable term under the agreement, with renewals invoiced annually thereafter in accord with the Agreement.

Fees for services included in this sales quotation shall be invoiced as indicated below. • Implementation and other professional services fees shall be invoiced as delivered. • Fixed-fee Business Process Consulting services shall be invoiced 50% upon delivery of the Best Practice Recommendations, by module, and 50% upon delivery of custom desktop procedures, by module.
• Fixed-fee conversions are invoiced 50% upon initial delivery of the converted data, by conversion option, and 50% upon Client acceptance to load the converted data into Live/Production environment, by conversion option. Where conversions are quoted as estimated, Tyler will invoice Client the actual services delivered on a time and materials basis. • Except as otherwise provided, other fixed price services are invoiced upon complete delivery of the service. For the avoidance of doubt, where "Project Planning Services" are provided, payment shall be invoiced upon delivery of the Implementation Planning document. Dedicated Project Management services, if any, will be invoiced monthly in arrears, beginning on the first day of the month immediately following initiation of project planning. • If Client has purchased any change management services, those services will be invoiced in accordance with the Agreement. • Notwithstanding anything to the contrary stated above, the following payment terms shall apply to fees specifically for migrations: Tyler will invoice Client 50% of any Migration Services Fees listed above upon Client approval of the product suite migration schedule. The remaining 50%, by line item, will be billed upon the go-live of the applicable product suite. Tyler will invoice Client for any Project Management Fees listed above upon the go-live of the first product suite. Annual SaaS Fees will be invoiced upon availability of the hosted environment.

Any SaaS or hosted solutions added to an agreement containing Client-hosted Tyler solutions are subject to Tyler’s SaaS Services terms found here: https://www.tylertech.com/terms/tyler-saasservices.

Unless otherwise indicated in the contract or amendment thereto, pricing for optional items will be held For six (6) months from the Quote date or the Effective Date of the Contract, whichever is later.

Customer Approval: Date:

Print Name: P.O.#:

City of McFarland
City Council Meeting

STAFF REPORT
Agenda Item No. 15.

Section: ADMINISTRATIVE
AGENDA
Meeting Date: December 14,
2023
TO: Honorable Mayor and Council Members
FROM: Kenny Williams, City Manager
Adam Cabrera , Assistant Public Works Director
SUBJECT: Approval of Resolution No. 2023-153 A Resolution of the City Council of the City of McFarland Approving Funds from the City’s General Fund to Construct a Block Wall at City Hall.

SUMMARY:

City staff has identified a potential liability issue at the driveway exit onto fourth street from city hall. This driveway exit places pedestrians directly in the path of city vehicles exiting the city hall yard onto fourth street. Because police vehicles use this exit when responding to emergencies, they are often traveling at a higher rate of speed, which increases the hazard.

Although staff has made efforts to curtail the pedestrian traffic by placing barricades, pedestrian traffic continues to use fourth street as a walkway.

In addition to the hazard, the city has been involved in an ongoing expansion project at the same location, which is now reflecting negatively on the city. Currently, the city has temporary barricades blocking fourth street and an empty lot directly east of city hall. The barricades and the empty lot both reflect negatively on the city.

To eliminate the hazard and provide a more professional image, staff would like to construct a masonry block wall at the north end of the vacant lot adjacent and to the east of City Hall. The purpose of the block wall is to eliminate hazards and improve the professional image of the city. Additionally, the block wall will provide security and privacy around this vacant lot, which will be utilized to expand the parking lot to City Hall. Eventually, this project will include the relocation of the existing automatic gate on fourth Street to just north of the alley between Harlow Ave. and W. Kern Street. The excavation, grading and construction of the block wall is beyond the capabilities of the City Staff.

City staff sought three bids for the project. However, only two were responsive. The city determined the lowest bid was $25,000.

It shall be noted that the portion of fourth Street, north of the alley, was previously vacated and closed for public use per Resolution 2015-0248, as shown on Lot Merger 19-01. See attached site map.

FINANCIAL IMPACT:

At this time, the impact to the general fund is $25,000.

RECOMMENDATION:

Staff recommends the City Council approve Resolution No. 2023-153 approving funds from the general fund for the block wall project and authorizing the construction phase of the City Hall Block Wall.

ATTACHMENTS:

1. Estimate- Raul Martinez

2. Estimate- Aldana's Conctruction, Inc

RESOLUTION NO. 2023-153

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING FUNDS FROM THE CITY’S GENERAL FUND TO CONSTRUCT A BLOCK WALL AT CITY HALL.

WHEREAS, the City Council has already approved and passed a budget for the fiscal year 2023/24; and
WHEREAS, the City Council recognizes that the construction of the block wall was not approved in the 2023/24 budget; and
WHEREAS, the City Council desires to construct a masonry block wall around the vacant lot adjacent and to the east of City Hall; and
WHEREAS, the City Council desires to have the block wall built to eliminate the hazard and improve the professional image of the city; and
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:
1) The foregoing recitals are true and correct and incorporated herein as if set forth in full. 2) The City Council Authorizes the construction of the City Hall Block Wall project. 3) The City Council authorizes the allocation of funds in the amount of $25,000.00 for the construction of the block wall.
4) The City Council authorizes the City Manager or his designee to take all action necessary, including the approval of and execution of documents necessary to complete the construction of the City Hall Block Wall project.
5) The City Clerk shall certify the passage and adoption of this resolution. 6) This resolution is effective immediately.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on December 14, 2023 by the following vote:

Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez

CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Francisca Alvarado, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein. _____________________________
Francisca Alvarado, City Clerk

ESTIMATE
Prepared For
City Of McFarland
McFarlan
McFarland, California 93250
(661) 869-5106
Raul Martinez
10000 Greenacres Dr
Bakersfield, Ca 93312
Phone: (602) 718-7092
Email: [email protected]
Estimate # 44
Date 11/14/2023
Description Total
Block Wall $25,000.00
Labor and Materials
150 lineal foots blocks 8x8x16 regular Grey color
completely filled with concrete
Rebars
Footing bi City specifications
Clean up after job finish
Subtotal $25,000.00
Total $25,000.00

By signing this document, the customer agrees to the services and conditions outlined in this document.

Aldana’s Construction Inc.

Home improvement, Remodeling & construction
Residential & Commercial.

Ca. Lic. 1070022
9530 Hageman Rd. B394. Bakersfield, CA.
661-833-6033

Kitchen & bathroom remodeling, additions, drywall, texture, Wallpaper Removal, Interior & exterior painting, acoustic ceiling Removal, Ceramic tile, laminate floors & more
Fast, clean, reliable affordable
Proposal
Submitted to: City of McFarland (Adam Cabrera) Date: 11/22/2023.

Address: 401 W. Kern Avenue. McFarland, CA 93250 Tel: 661-792-3091 We hereby propose to furnish all materials (unless otherwise specified) and necessary equipment and perform all labor necessary to complete the following work:

Installation of 142 linear feet of block wall (8 x 8 x 16, grey smooth sides). By 8 feet high, layout of 4, ½ inch rebars at footing, and 2 more distributed at 3 feet intervals horizontally, and a ½ rebar vertically every 2 feet and filling each cell containing the rebar with concrete. $60,296.00 if customer prefers the whole wall filled with concrete $64,296.00 All material is guaranteed to be as specified, and the above work to be performed in accordance with the drawings and specifications submitted for the above work and completed in a workmanlike manner.

Deposit $1,000.00 or 10 % whichever, is the lesser. $ 1,000.00 Mobilization cost (to acquire all materials) $ 0.00.
1 st progress payment after footing is done $10,000.00. 2 nd progress payment after __________is done $
3 rd progress payment after __________ are complete. $
Final payment at completion of work $ balance of the amount depending on filling of wall option.

Any alteration or deviation from the above specifications involving extra cost of material and or labor will be executed upon written orders for the same and will become an extra charge over the sum mentioned in this contract. All agreements must be in writing.

Contractors are required by law to be Licensed and regulated by the Contractor’s State License Board. Any questions concerning a Contractor may be referred to the registrar of the Board whose address is:

Contractor’s State License Board
3132 Bradshaw Rd.

Sacramento, Ca. 95820
NOTE: This proposal is valid for 7 days
If accepted, work will begin (approximately) on________________ and will be substantially completed (approximately) in ____days, or by ________

ACCEPTANCE
You are hereby authorized to furnish all material and labor required to complete the work mentioned in the above proposal, for which agree to pay the amount mentioned in said proposal, and according to terms thereof.

ACCEPTED __________________ NAME ________________________________ DATE: _______________ CONTRACTOR ______________________________________________________ DATE _______________ ----------------------------------------------------------------------------------------------------------------------------------------- 3 DAY RIGHT TO CANCEL
NOTICE OF CANCELLATION DATE________
You may cancel this transaction, without any penalty or obligation, within three days from the above date. If you cancel, any property trade in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be cancelled.

If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.

If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation.

If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.

To cancel this transaction, call or text contractor at 661-833-6033 to let him know, or deliver a signed and dated copy of this cancellation notice, or any other written notice, at 9530 Hageman Rd. Suite B 394 Bakersfield CA. 93312 or not later than midnight of, ________ I hereby cancel this transaction ________________________ Date ________________ _______ Contractor explain and provided a copy of 3 days right to cancel (Initials)

City of McFarland
City Council Meeting

STAFF REPORT
Agenda Item No. 16.

Section: ADMINISTRATIVE
AGENDA
Meeting Date: December 14,
2023
TO: Honorable Mayor and Council Members
FROM: Kenny Williams, City Manager
Nathan Hodges, City Attorney / Legal
SUBJECT: Approval of Resolution No. 2023-158 A Resolution of the City Council of the City of McFarland adopting the procedural rules for the conduct of City Council Meetings.

SUMMARY:

The City Council has never adopted formal written Procedural Rules for the Conduct of City Council Meetings, such as procedural rules, sometimes also referred to as “Bylaws”. When in place, these rules assist the council with the processes of council meetings and help provide guidance regarding appropriate behavior and the expectations of their duties.

This structure will assist the council in ensuring the appropriate representation of the interests of their constituents as well as providing guidance for proposing, passing and ratifying ordinance, managing budgets, establishing administrative, budgetary and taxation polices and creating the vision for the city’s future.

These rules are an important part of safeguarding the ethical obligations of the city council and ensuring the integrity of its members when exercising their official duties.

FINANCIAL IMPACT:

There will be no cost to the city for the implementation of these procedures.

RECOMMENDATION:

Staff recommends City Council Discuss, and Possible Approve Resolution No. 2023-158 A Resolution of the City Council of the City of McFarland adopting the procedural rules for the conduct of City Council Meetings.

ATTACHMENTS:

1. Council-Rules-of-Procedure

RESOLUTION NO. 2023-158

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND ADOPTING

THE PROCEDURAL RULES FOR THE CONDUCT OF CITY COUNCIL MEETINGS WHEREAS, the City Council has never adopted formal written Procedural Rules for the Conduct of City Council Meetings (“Procedural Rules,” and sometimes also referred to as “Bylaws”); and
WHEREAS, the City Council now desires to promulgate and clarify its Procedural Rules, and consolidate all Procedural Rules into a single resolution.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland hereby finds and determines as follows:

1. The City Council of the City of McFarland hereby adopts the Procedural Rules for the Conduct of City Council Meetings, attached as Exhibit “A” and incorporated herein by reference.

2. All prior versions of Procedural Rules, whether written or oral, are superseded.

3. The City Council finds that this resolution is in the best interests of the City of McFarland.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on December 14, 2023 by the following vote:

Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez

CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:

_____________________________
Francisca Alvarado, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein. _____________________________
Francisca Alvarado, City Clerk

“Exhibit A”

Council Rules of Procedure
Resolution No. 2023-158
Adopted on December 14, 2023
401 W. Kern Avenue. McFarland, CA 93250.

City Clerk: [email protected]
Phone: 661-792-3091

City of McFarland Council Rules of Procedure

Chapter 1 – Authority/Administration
A. General Authorities and Applicability

1. These Council Rules of Procedure (“Rules”) apply when not in conflict with the Constitution, laws of the State of California, including the Ralph M. Brown Act (Government Code, § 54950 et seq) (“Brown Act”), of the McFarland Municipal Code. Until such time as they are amended or new rules are adopted by resolution, these Rules govern the order and conduct of business of the city council legislative bodies that meet concurrently with the council, council committees, and councilestablished boards, commissions, and committees (collectively, “legislative bodies”).

2. These rules are applicable to council-established boards, commissions, and committees, as well as to the persons sitting on those boards, commissions, and committees. Those council-established boards, commissions, and committees that are authorized to adopt rules of procedure shall adopt rules that are consistent with these Rules and may not be in conflict with the McFarland Municipal Code, the Constitution, or laws of the State of California.

B. General Administration

1. The council shall review and revise these Rules at least annually, or as needed.

2. During council discussions, deliberations, and proceedings, the presiding officer has the primary responsibility to ensure that the council, staff, and members of the public adhere to these Rules.

3. Any member who thinks the Rules are being violated may make a “point of order” to call for the presiding officer to enforce the Rules.

C. Amendment
Any rule may be adopted, altered, amended, or repealed by resolution at any time by a majority vote of the council, provided that at least 120 hour notice of such proposed rule change is given to the councilmembers.

D. Suspension

1. Any rule may be temporarily suspended by a majority vote of all councilmembers present.

City of McFarland Council Rules of Procedure

E. Rosenberg’s Rules of Order
To the extent these Rules do not address an issue of parliamentary procedure for legislative body meetings, Rosenberg’s Rules of Order: Simple Parliamentary Procedures for the 21st Century shall apply.

City of McFarland Council Rules of Procedure

Chapter 2 – Duties
A. Duties of Members and Staff

1. Members and city staff shall conduct the business of the City of McFarland:
a. Recognize that stewardship of the public interest is of primary concern; b. Work for the common good of the people of McFarland; and c. Assuring fair and equal treatment of all persons, claims, and transactions coming before the council, council committees, and council-established boards, commissions, and committees.

B. Duties of Mayor and Vice Mayor

1. The Mayor is:
a. The presiding officer of the City and of all meetings of the council; b. The official head of the City for performance of duties lawfully delegated to the Mayor by the Council, the laws of the State of California, or the McFarland Municipal Code;
c. Referred to as “chair” or “chairperson” when acting as presiding officer of legislative body meetings other than the council;
d. Considered a member of the council;
e. Entitled to make and second motions on matters before the council and vote on actions, but possesses no veto power over actions of the council; f. The primary, but not the only, person responsible for interpreting the policies, programs, and needs of city government to the people; and for informing the people of any major change in policies or programs; and g. Empowered, but not exclusively empowered, to make recommendations to the council on all policies and programs that require council decisions; and to perform such other duties as prescribed by the Council, the laws of the State of California, or the McFarland Municipal Code.

2. The vice mayor and mayor pro tempore shall be elected annually from among the members of the council, other than the mayor, by a majority vote at the council’s first meeting in January.
a. In the absence of the mayor from the city or a council meeting, the vice mayor shall possess all powers of the office of the mayor and be subject to all prescribed duties for that office.
b. In the absence of the mayor and vice mayor from the city or a council meeting, the mayor pro tem shall possess all powers of the office of the mayor.

City of McFarland Council Rules of Procedure

Chapter 3 – Conduct of Members
A. Norms and Expectations

1. Members shall:
a. Put constituents first at all times;
b. Treat each other, staff, and members of the public with dignity, courtesy, and respect;
c. Value all opinions, be tolerant of new and different ideas, and encourage creativity and innovation;
d. Follow through on commitments and be accountable to each other; e. Clarify when items are discussed in confidence and maintain appropriate confidentiality;
f. Be attentive to others, limiting interruptions and distractions; g. Encourage dissent in debate while being mindful not to prolong discourse or block consensus;
h. Be candid with each other about ideas and feelings, and resolve conflicts directly; i. Keep comments clear, concise, and on-topic to maximize opportunities for all to express themselves;
j. Continuously strive to improve how members work as a team; k. Place clear and realistic demands on staff resources and time when requesting action;
l. Start and end meetings on time, work from an agenda, and be present, attentive, and prepared;
m. Present problems in a way that promotes discussion and resolution; and n. Continually work to build trust in each other.

B. General Conduct

1. Members shall:
a. Treat each other and everyone with courtesy and refrain from inappropriate behavior and derogatory comments;
b. Be fair, impartial, and unbiased when voting on quasi-judicial actions;

City of McFarland Council Rules of Procedure

c. Wait to be acknowledged by the presiding officer before speaking; d. Move to require the presiding officer to enforce these Rules, and the presiding officer shall do so upon an affirmative vote of a majority of the members present; e. Preserve order and decorum during the meeting;
f. Not delay or interrupt the proceedings or the peace of the council, nor disturb any member while speaking, by conversation or otherwise, nor disobey the orders of the council, or the presiding officer, except as otherwise herein provided;
g. Abide by the Confidential Information Policy prohibiting disclosure of confidential communications and authorizing public censure for failure to comply with the policy;
h. Support the laws established by the council; and
i. Abide by these Rules in conducting the business of the City of McFarland.

C. Conduct with Members

1. Members shall:
a. Value each other’s time;
b. Attempt to build consensus on an item through an opportunity for dialogue; but when this is not possible, the majority vote shall prevail, and the majority shall show respect for the opinion of the minority;
c. Have the right to dissent from, protest, or comment upon any action of the council;
d. Respect each other’s opportunity to speak and, if necessary, agree to disagree; e. Avoid offensive negative comments and practice civility and decorum during discussions and debate; and
f. Assist the presiding officer’s exercise of the affirmative duty to maintain order.

D. Conduct with City Manager and Staff

1. Members of the city council shall:
a. Speak to the city manager directly on issues and concerns; b. Direct the city manager to implement council’s policy decisions through the administrative functions of the city;

City of McFarland Council Rules of Procedure

c. Treat staff professionally and refrain from publicly criticizing individual employees;
d. Avoid involvement in personnel issues except during council closed sessions regarding council-appointed staff, including but not limited to the city attorney, city clerk, city manager, finance director, or chief of police; e. Discuss directly with the city attorney, city clerk, city manager, finance director, or chief of police as appropriate, any displeasure with a department or staff; and f. Request answers to questions on council agenda items from the city attorney, city clerk, city manager, finance director, or chief of police, or department directors prior to the meeting whenever possible.

2. General Direction
a. Council requests that deal with policy issues and council requests that may be construed as direction must be directed to the city manager, except for general inquiries or questions, in which case the council may go to the department directors or key staff in the City Manager's Office. Members may also deal directly with the city attorney, city clerk, finance director, chief of police, or other staff appointed by the council.

E. Conduct with the Public

1. Members shall:
a. Make the public feel welcome;
b. Be impartial, respectful, and without prejudice toward the public; c. Listen courteously and attentively to public comment; d. Not argue back and forth with members of the public; and e. Make no promises to the public on behalf of the legislative body.

F. Conduct with Other Agencies

1. Members shall:
a. Project a positive image of the city when dealing with other agencies; b. Show tolerance and respect for other agencies’ opinions and issues and, if necessary, agree to disagree;

City of McFarland Council Rules of Procedure

c. Represent official policies or positions of the council when designated as delegates of a legislative body;
d. Explicitly state when their opinions and positions do not represent the legislative body when representing their individual opinions and positions, and not allow the inference that they do (see also Rule 13.A.1.c); and
e. Have the ability to lobby or discuss issues that have been adopted by legislative bodies or are standing policies of the legislative bodies with other legislators, government officials, applicants, or other interested persons.

G. Conduct with Boards and Commissions

1. Councilmembers shall:
a. Treat all members of boards, commissions, and committees with appreciation and respect; and
b. Refrain from participation at board, commission, and committee meetings with the purpose of influencing the outcome of those meetings.

H. Conduct with the Media

1. Members shall not discuss – or go "off the record" with the media to discuss – confidential or privileged information pertaining to closed sessions, or attorneyclient privileged or attorney work product communications, including personnel, litigation, or real property negotiations.

2. Providing non-confidential, non-privileged background information is acceptable.

I. Ethical Conduct

1. Members shall conduct themselves in accordance with the following policies, including but not limited to:
a. Members shall comply with a citywide nepotism policy adopted or approved by city council resolution.
b. Members shall comply with the citywide whistleblower protection policy adopted or approved by city council resolution.
c. Members shall receive ethics training material, as required by Assembly Bill 1234 within 30 days of taking office and at least every two years. d. Members shall receive sexual harassment training material, as required by Assembly Bills 1825 and 1661 within 30 days of taking office and at least every two years.

City of McFarland Council Rules of Procedure

e. Members shall follow the Political Reform Act and Fair Political Practices Commission regulations.
f. Members shall conduct themselves in accordance with such policies and training.

City of McFarland Council Rules of Procedure

Chapter 4 – Conduct of City Staff
A. General Conduct

1. Staff shall:
a. Prepare well-written staff reports and provide accompanying documents on all agenda items in accordance with the agenda format and preparation schedule; b. Be available for questions from members in accordance with the Brown Act prior to and during meetings;
c. Respond to questions from the public during meetings only when requested to do so by members or the city manager;
d. Refrain from arguing with the public or members; and e. Switch electronic equipment such as cellular telephones to silent or off mode during council meetings.

2. Staff shall remain objective on issues and not be advocates for issues unless so directed by the legislative body.

3. To the extent permitted by the Brown Act, the city manager and staff shall, as soon as possible, inform the mayor and members representing the districts affected of controversial, significant-impact issues that are coming before the legislative body.

4. The city manager shall advise management staff of potentially political or controversial issues coming before the legislative body and direct staff to be present and appropriately prepared.

City of McFarland Council Rules of Procedure

Chapter 5 – Conduct of the Public
A. General Conduct

1. Decorum.
a. Members of the public attending council meetings shall observe the same rules and decorum applicable to the members and staff as noted in chapters 3 and 4 of these Rules.
b. No person shall engage in conduct that is intended to or is likely to provoke violent or riotous behavior, nor shall any person engage in conduct that disturbs the orderly conduct of the council meeting. Examples of disorderly conduct include:
(i) Feet-stamping.
(ii) Whistling or other abrupt noises.
(iii) Yelling or shouting or interrupting a speaker who is addressing the council.
(iv) Organized silent demonstrations and other demonstrations intended to disturb the progress of the meeting.
(v) Physically threatening conduct.
(vi) Verbal threats.
(vii) Banging, slamming, or throwing objects.
(viii) Interfering with other attendees’ ability to participate or address the council.
(ix) Entering areas of the chamber not intended for the public. (x) Incitement to commit unlawful or disturbing acts or disrupt proceedings.
(xi) Refusing to abide speaker time limits and leave the podium when directed.
(xii) Placing physical objects in a manner that creates a disturbance or disrupts proceedings.
(xiii) Interjection when not at the podium.
(xiv) Refusing to heed the presiding officer’s call for order.

City of McFarland Council Rules of Procedure

(xv) Approaching the podium or dais without permission of the presiding officer.
(xvi) Signs may not be mounted to any solid item that would facilitate holding or waving and may not impede the view of other attendees. c. Enforcement. In addition to the presiding officer, the sergeant-at-arms shall have primary responsibility for enforcing council meeting decorum. Additionally, any member may at any time call for a point of order, to request the timely enforcement of these rules of decorum.
(i) The presiding officer shall request that a person who is breaching the rules of decorum cease the conduct. If the person does not cease the conduct immediately, the presiding officer may order the person to leave the council meeting or order the sergeant-at-arms to remove the person.
(ii) The sergeant-at-arms shall assist in enforcing the rules of decorum, including removing disorderly persons upon order of the presiding officer or decorum officer.

2. Lobbyists shall identify themselves and the client(s), business, or organization they represent before speaking to the council.

3. Members of the public wishing to provide documents to the council shall comply with Rule 7.D.

B. Addressing the City Council

1. Purpose of public comment. During regular meetings, the city provides opportunities for the public to address the council as a whole in order to listen to the public’s opinions regarding agendized items and unagendized matters within the subject matter jurisdiction of the city. At all other (special) meetings, public comment is limited to agendized items.
a. Public comments should not be addressed to individual members nor to city officials, but rather to the council as a whole regarding city business. b. While members of the public may speak their opinions on city business, personal attacks on members and city officials, use of swear words, and signs or displays of disrespect for individuals are discouraged as they impede good communication with the council.

City of McFarland Council Rules of Procedure

c. Consistent with the Brown Act, the public comment periods on the agenda are not intended to be “question and answer” periods or conversations with the council and city officials. The limited circumstances under which members may respond to public comments are set out in Rule 8.D.2.
d. The presiding officer may stop a member of the public whose comments are not confined to the agendized item being heard. During the public comment portion of the agenda, the presiding officer may stop a member of the public whose comments are not within the subject matter jurisdiction of the city.

2. Speaker time limits. In the interest of facilitating the council’s conduct of the city’s business, the following time limits apply to members of the public (speakers) who wish to address the council during the meeting.
a. Matters not on the agenda: two minutes per speaker.
b. Consent calendar items. The consent calendar is considered a single item and speakers are therefore subject to the two-minute time limit for the entire consent calendar. Consent calendar items can be pulled at a member’s request and will be considered individually, with up to two minutes of public comment per speaker.
c. Discussion calendar items: two minutes per speaker.
d. Time limits per meeting. In addition to the above time limits per item, the total amount of time any one speaker may address the legislative body at a meeting is eight minutes.
(i) Each speaker shall limit their remarks to the specified time allotment. (ii) The presiding officer shall consistently utilize the timing system, which provides speakers with notice of their remaining time to complete their comments.
(iii) In the further interest of time, speakers may be asked to limit their comments to new materials and not repeat what a prior speaker said.

Organized groups may choose a single spokesperson who may speak for the group, but with no increase in time.
(iv) Speakers shall not concede any part of their allotted time to another speaker.
(v) The presiding officer may further limit, or expand, the time allotted for public comments per speaker or in total for the orderly conduct of the meeting; such limits shall be fairly applied.
(vi) A Total of 15 minutes will be allotted for any one subject.

2. Speaker slips. Members of the public in chambers wishing to speak to the legislative body must submit to the city clerk a completed speaker’s slip indicating the agenda

City of McFarland Council Rules of Procedure

item or matters not on the agenda item that they wish to address before the item is called. After the first speaker concludes, no speaker slips will be accepted in chambers.

C. Electronic Devices

1. Members of the public shall turn their electronic devices that are capable of emitting sound – including cellular telephones, personal data devices, digital tablets, laptop computers, etc. – to the off- or silent-mode during council meetings.

2. Cameras. Cameras and recording equipment may be used during council meetings only if:
a. the devices are silent during use; and
b. the devices are used in a manner and at locations that do not impede walkways or others views of the meeting or disrupt the conduct of the meeting. c. Continual lighting may not be used with video recording. d. Flash photography is not allowed.

D. Location of Speaker

1. Members of the public shall not approach the dais without the express consent of the presiding officer or city clerk.

2. Members of the public wishing to address the legislative body must approach the podium when recognized by the presiding officer or city clerk and speak only from the podium.

City of McFarland Council Rules of Procedure

Chapter 6 – Meeting Types and Schedules
A. Regular Meetings

1. The city council shall hold regular meetings and provide the time, place, and manner of holding its meetings by annual resolution. A majority of regular council meetings must be held after 6:00 p.m. All meetings of the council must be open to the public, except as permitted by state law.

2. The council shall generally meet on the Second and Fourth Thursday of each month at 6:00 p.m. in the Veterans Community Center, 103 W Sherwood Avenue, McFarland, CA 93250, except as otherwise provided in the annually adopted meeting schedule or as otherwise revised by the council.

3. City boards, commissions, and committees shall hold regular meetings and provide the time, place, and manner of holding its meetings. All meetings of the city’s legislative bodies must be open to the public, except as permitted by state law. The city council shall annually adopt a meeting schedule for all legislative bodies.

B. Adjourned Meetings
As permitted by law, the legislative body may adjourn any regular, adjourned regular, special, or adjourned special meeting to a time and place specified in the motion of adjournment.

C. Special Meetings

1. The mayor or a majority of the members of the City Council may direct the city clerk to call a special meeting by providing notice 24 hours in advance of the meeting to the mayor, to all members, and to all media outlets and persons having requested in writing notification of such meetings pursuant to state law.

2. Whenever practicable, special meetings must take place in the council chamber and be recorded for viewing later.

D. City Council Emergency Meetings

1. In the case of an emergency situation involving matters upon which prompt action is necessary due to the disruption or threatened disruption of public facilities or services, the City Council may hold an emergency meeting without complying with either the 72-hour (regular meeting) or 24-hour (special meeting) notice and posting requirements but shall otherwise comply with the Brown Act procedures generally stated below.

2. Each local newspaper of general circulation and radio or television station that has requested notice of emergency meetings pursuant to the Brown Act shall be notified by the City Clerk, or designee thereof, at least one hour prior to the emergency

City of McFarland Council Rules of Procedure

meeting, or in the case of a dire emergency, at or near the time that the presiding officer or designee notifies the members of the emergency meeting.

3. This notice shall be given by telephone call or text message to the numbers provided in the most recent request for notification.

4. In the event that telephone services are not functioning, the notice requirements of this section are deemed waived, and the legislative body, or designee of the legislative body, shall notify those newspapers, radio stations, or television stations of the emergency meeting, the purpose of the meeting, and any action taken at the meeting as soon after the meeting as possible.

5. During an emergency meeting, the legislative body may meet in closed session pursuant to the Brown Act if agreed to by a two-thirds vote of the members present, being not less than five votes of the council.

6. All special meeting requirements in the Brown Act are applicable to an emergency meeting, except for the 24-hour notice and posting requirement.

7. The minutes of an emergency meeting; a list of persons who the presiding officer of the legislative body, or designee of the council, notified or attempted to notify; a copy of the roll call vote; and any actions taken at the meeting, shall be posted for a minimum of ten days in a public place as soon after the meeting as possible.

E. Closed Sessions

1. Closed sessions generally shall be special meetings held immediately after regular meetings.

2. In accordance with the Brown Act, the public may speak regarding any closed session item prior to the closed session.

3. All closed session information, verbal or written, is privileged and confidential and shall not be shared with any person not at the closed session. Any member sharing information in violation of this rule may be subject to censure by the council consistent with the council’s confidentiality policy then in effect.

4. The city attorney shall report out in public session any reportable actions that were taken by council and the vote on such actions in accordance with the Brown Act.

F. Public Hearings

1. The city clerk shall set council hearing dates and notify the council via the preliminary draft agenda on all matters that require a notice and public hearing before the council, such as matters received from the planning division and appeals to the council.

2. Public hearings will not be withdrawn or continued without the full knowledge and concurrence of the councilmembers.

City of McFarland Council Rules of Procedure

3. The council may refuse to grant a continuance of any hearing unless there is a valid legal reason why the hearing must be continued.

4. Continuances.
a. Any person (applicant, appellant, or designated representative) scheduled for a public hearing before the legislative body:
(i) May obtain one continuance for a period not to exceed the second regular meeting after the original scheduled hearing date, as a matter of right, without personally appearing on the scheduled hearing date, provided a written request for the continuance must be delivered to the city clerk by noon on the day prior to the scheduled public hearing. Any person who has once obtained a continuance by any procedure may not obtain a subsequent continuance under this Rule

6.F.4.a(i).
(ii) Who wants to obtain a continuance of the hearing beyond the second regular meeting after the original scheduled hearing date, or who has not notified the city clerk as provided in Rule 6.F.4.a(i), may obtain a continuance only by appearing before the legislative body at the time the original hearing is scheduled and requesting a continuance. This continuance is not a matter of right and will not be granted unless the legislative body is satisfied that good cause exists for the continuance and that a substantial number of people will not be inconvenienced by such continuance.
(iii) Who has once obtained a continuance of a hearing either by notice to the city clerk under Rule 6.F.4.a(i) or by personal appearance under Rule 6.F.4.a(ii) may obtain a further continuance only by appearing before the legislative body at the scheduled hearing and satisfying the legislative body that extraordinary circumstances exist that would justify this second continuance.
(iv) Who has twice obtained a continuance of a hearing may obtain an additional continuance only by appearing before the legislative body at the scheduled hearing and satisfying the legislative body that a miscarriage of justice would result from the refusal of the legislative body to grant a continuance.
b. City staff may obtain a continuance based on the need of the originating department or on behalf of a member. Department staff may request, via the city clerk, as many continuances as needed to complete and ready the project or appeal for the hearing process; however, staff may not serve as a requestor on behalf of an applicant or appellant.

City of McFarland Council Rules of Procedure

c. Any organized group of residents or neighborhood associations not recognized as an applicant or appellant may contact their councilmember and request a continuance as needed to complete and ready the project or appeal for the hearing process. The member, in their sole discretion, may request the legislative body approve the continuance for good cause. d. At the meeting when the hearing is scheduled, but before the hearing starts, any member may request the council approve a continuance.
e. Disputes regarding the length of a continuance will be decided by the council at the scheduled hearing if city staff or the city clerk cannot obtain mutual agreement between the parties beforehand.

G. Teleconference Meetings
a. Members of the City Council may participate via a teleconference platform only in accordance with the Brown Act.

H. Televised Meetings – Intentionally Omitted

City of McFarland Council Rules of Procedure

Chapter 7 – Meeting Agendas
A. Requirements for Agenda Item Submission

1. The city manager and city clerk shall develop the agenda for council meetings in consultation with the mayor and/or vice mayor.

2. Department directors, subject to the discretion of the city manager, may submit staff reports or descriptions of oral reports to the city clerk for placement on the agenda.

3. Outside agencies and advisory bodies, and city boards, committees and commissions may submit agenda items in accordance with the following:
a. Items must be sponsored for agenda placement by the mayor, councilmembers, charter officers, or department staff; and
a. All agenda items must be submitted at least five (5) days prior to the scheduled meeting.

4. Prior to an agenda item being brought to the city council, it should be brought to any relevant city board, committee, or commission and the staff report should include the board, committee, or commission recommendation.

B. Declaration of Policy

1. No ordinance, resolution, motion, or item of business may be introduced or acted upon at a meeting of a legislative body of the city without it appearing on a duly noticed and posted agenda in accordance with the Brown Act. Exceptions to this rule are limited to those provided by state law.

2. No ordinance, resolution, motion, or item of business will be considered that:
a. Does not affect the conduct of the business of the City of McFarland or its powers or duties as a municipal corporation, or
b. Supports or disapproves of any legislation or action:
(i) Of the State of California;
(ii) Of the President or Congress of the United States; or (iii) Before any officer or agency of the state or nation, unless the proposed legislation or action, if adopted, will affect the conduct of the municipal business or the powers or duties of the City of McFarland or its officers or employees.
c. Rule 7.B.2 may be invoked only before public comment or council deliberation on the matter and by five affirmative votes on the question: “Shall the council consider this matter?”
C. Procedures for Submission of Reports

City of McFarland Council Rules of Procedure

1. A written staff report should be prepared and submitted in accordance with the agenda review procedure and reviewed by the relevant departments including but not limited to finance, city manager, and city attorney.

2. Continued items do not require a new report if there are no changes other than the agenda date. If there is any other change, a new report meeting all applicable requirements must be submitted.

3. Staff reports should include sufficient information for members of the council and the public to understand the action being considered including any board, commission, or committee recommendation, and the appropriate legislative history.

D. Written Communications from the City and the Public

1. The city clerk shall manage communications to members regarding meeting topics to ensure compliance with the Brown Act.
a. Except for records exempt from disclosure under the California Public Records Act (Government Code, § 54957.5, subd. (b)) and otherwise by law, agendas and any other writings distributed to all or a majority of the members of a legislative body for discussion or consideration at a public meeting are disclosable to the public and shall be made available upon request without delay. b. Materials distributed to the members during the meeting shall be available for viewing by the public during the meeting if the materials were prepared by the city or a member, or at the conclusion of the meeting if prepared by another person (Government Code, § 54957.5, subd. (b)).

2. Interested parties or their authorized representatives may address the council by written communications regarding agenda items.
a. Written communications received by the city clerk will be delivered to members as soon as possible or at the city council meeting if related to an item on that meeting agenda. However, written communications will not be considered by the council unless such communications are accompanied by a verbal public comment.
b. Documents (20 copies recommended) that members of the public submit to the legislative body at the meeting shall be given directly to the city clerk for distribution and shall not be given directly to the members. The documents will be made available to the public.

E. Preparation of the Agenda Packet

1. No later than 120 hours prior to each regularly scheduled meeting, the city clerk shall finalize the agenda packet for final review by City staff and the City Attorney.

2. Agenda Packet Contents.
a. The agenda packet will include the agenda, the staff reports, draft resolutions and

City of McFarland Council Rules of Procedure

ordinances, contracts, and other attachments. Items approved by Department Directors, the City Manager and the City Attorney will be delivered and published to the city’s website upon receipt by the city clerk. No item is required to be considered by the legislative body if the applicable written material is not delivered to the members before the meeting and made available to the public at the same time.
b. Corrections or supplements to a staff report or other written materials already included in the agenda packet may be delivered separately. c. All agreements on the agenda must be available for review by the council and the public prior to the meeting, or at the meeting location during the meeting, unless determined otherwise by the city attorney.
d. Unless waived by a two-thirds vote of council, all city labor agreements and all agreements greater than $1,000,000 must be posted on the city’s website and be made available to the public at least ten days prior to council action.

F. Distribution of the Packet

1. The city clerk shall distribute the agenda packet to the members and post it to the website no later than 72 hours prior to a regularly scheduled meeting.

G. Posting of Agenda

1. The city clerk shall post the agenda of each regular meeting of the legislative body at least 72 hours in advance of the meeting in a location that is freely accessible to members of the public, as required by the Brown Act.

2. The city clerk shall maintain an affidavit indicating the location, date, and time of posting each agenda.

3. If technical difficulties occur, the agenda and reports will be published on the city’s website as soon as those difficulties are resolved.

H. Failure to Meet Agenda Deadlines

1. The city clerk shall not, without the concurrence of the city manager and city attorney, accept any agenda item or revised agenda item after the deadlines established and noted in these Rules.

2. Any agenda items or revised agenda items submitted after the established deadlines will be reviewed by relevant departments as identified by the agenda workflow approval process.

I. Exceptions to the Agenda Requirement

1. Matters not included on the published agenda may be discussed and acted upon by the legislative body only in the following situations:
a. at a meeting during which a majority of the members determine in open session that the matter in question constitutes an “emergency" (Government Code, §

City of McFarland Council Rules of Procedure

54956.5); or
b. upon a determination by a majority of the members that:
(i) There is a need to take immediate action; and
(ii) The need for action came to the attention of the city after the agenda had been posted.

J. Order of Business and Types of Agenda Items
The order of business should be carried out as listed on the agenda in the order as set out below; however, the presiding officer may reorder the items at the meeting, unless members object. Members may request items be reordered by motion.

1. Call to Order

2. Roll Call

3. Invocation

4. Pledge of Allegiance

5. Approve Agenda as to Form

6. Featured Pet

7. Presentations, Introductions and Awards: The presentation and receipt of ceremonial resolutions and celebrations not requiring formal legislative body action.

8. Public Comments – Matters Not on the Agenda: oral communications from the audience regarding matters not on the agenda but within the subject matter jurisdiction of the city.

9. Departmental Reports – Reports from City Department Directors, as needed

10. Consent Agenda: considered one item, consisting of matters routine in nature and not likely to be subject to debate or inquiry by the members or the public; typically adopted in one motion.

11. Public Hearings: duly noticed hearings as mandated by local, state, or federal law, providing an opportunity for public review and comment of a proposed action by the council.

12. Administrative Calendar: non-routine items requiring an oral presentation and discussion before action is taken.

13. Committee/Special District Meeting Reports: Council Updates on committee and special district meetings.

14. Council Statements and Reports:
a. Brief oral or written reports summarizing meeting or conference attendance at city expense, as required by Assembly Bill 1234 (Government Code, § 53232.3);

City of McFarland Council Rules of Procedure

b. Requests for the city manager or staff to report on various issues; c. Requests to place items on a future council meeting agenda; d. Requests to refer preparation or review of non-binding resolutions or ordinances to the Law and Legislation Committee; and
e. Reports on district and citywide activities or news.

15. Closed Session: confidential discussions with the legislative body as permitted by the Brown Act.

16. Adjournment
K. Ordinances and Non-Binding Resolutions

1. Ordinance and non-binding resolution preparation must be referred to the City Attorney before coming to council, as described in Rule 13.

2. Ordinances on the agenda may be passed for publication or adopted in accordance with the procedures set by California Law.

3. Ordinance changes during the review and adoption process. a. The text of an ordinance as approved by the City Attorney, receiving the necessary votes to bring the matter to council under Rule 13, must be the text that is included in the published agenda as pass-for-publication. b. If an ordinance is brought to council under Rule 13, the text of the ordinance brought to council must be the same text as was submitted to the City Attorney.
c. The text of an ordinance passed for publication must be the text that is included in the published agenda for the meeting at which the adoption of the ordinance is discussed.
d. Notwithstanding subsections a, b, and c, typographical and clerical errors may be corrected at any time during the ordinance review and adoption process. e. If a member intends to make a substantive (i.e., anything not typographical or clerical) change to an ordinance after it is included in a published agenda, at or before the time the ordinance adoption item is called on the agenda, the member shall distribute sufficient written copies of the proposed change so that all other members, the charter officers, relevant city staff, and the public audience have copies.
f. If the legislative body’s motion to adopt a resolution or ordinance includes a change to the resolution or ordinance text from that published in the agenda, prior to the vote the city clerk shall repeat verbatim the proposed change or otherwise indicate the change is reflected in the circulated written copy of the change.

City of McFarland Council Rules of Procedure

g. Ordinances bypassing the pass-for-publication requirement are subject to this Rule 7.K.3, as applicable.

City of McFarland Council Rules of Procedure

Chapter 8 – Conduct of Meeting
A. Call to Order – Presiding Officer

1. The mayor, or in the mayor’s absence the vice mayor, shall take the chair at the hour appointed for the meeting and shall immediately call the meeting of the council to order.

2. In the absence of the mayor and vice mayor, the mayor pro tem shall preside over the meeting.

3. Upon the arrival of the mayor, the vice mayor shall immediately relinquish the chair at the conclusion of the business then before the council.

4. For council standing committees the chair shall call to order and preside over the meeting. In the absence of the chair, the vice chair shall perform the duties and obligations of the chair.

5. For all other city established legislative bodies the chair shall call to order and preside over the meeting. In the absence of the chair, the vice chair shall perform the duties and obligations of the chair. In the absence of chair and vice chair, the city clerk shall call the meeting to order, and a temporary chairperson shall be elected from among the members present. Upon arrival of the chair or vice chair, the temporary chairperson shall relinquish the position upon conclusion of the item then before the legislative body.

B. Roll Call/Attendance

1. A majority of the members of the council then in office constitutes a quorum.

2. A majority of members of the council established legislative body constitutes a quorum.

3. Before the legislative body proceeds with the business before it, the city clerk shall note the members present for the minutes. The late arrival and early departure of members will be entered into the action minutes.

4. A councilmember is considered present at a meeting if the member is either physically in the council chamber or is participating in the meeting through teleconference in accordance with the Brown Act. Meeting attendance of the mayor or councilmembers through teleconference is permitted only in extraordinary circumstances.

5. Members must be physically present at the council chamber dais or teleconference location to vote. Proxy or absentee voting is not permitted.

City of McFarland Council Rules of Procedure

C. Order of Discussion
The order of business must be carried out as listed on the agenda as set out above; however, the presiding officer may reorder the items at the meeting, unless members object. Members may request items be reordered by motion.

1. Consent calendar items removed for discussion
a. Members, the city manager, or other charter officers may request that any matter be removed from the consent calendar and a separate vote taken. b. All matters remaining on the consent calendar shall be approved by a single action, such single action to have the legal effect of individual action on each matter.
c. If consent calendar items are removed, they shall be discussed immediately after adoption of the balance of the consent calendar.

2. Public Hearings.
a. The order of public hearings will generally be as follows:
(i) Open the public hearing.
(ii) Member report of ex parte communications.
(iii) Staff comments, information, and reports, followed by member questions.
(iv) Proponent, if applicable, speaks, followed by member questions. (v) Opponent, if applicable, speaks, followed by member questions. (vi) If the public hearing is on an appeal that does not require council de novo review, then the appellant (opponent) speaks before the applicant (proponent) in accordance with the allotted time. (vii) Public comments.
(viii) If the public hearing is a de novo review appeal, the applicant speaks in rebuttal, but if not a de novo review appeal, the appellant speaks in rebuttal.
(ix) Closure of public comment period.
(x) Further member discussion.
(xi) Motion to close public hearing and take action.

City of McFarland Council Rules of Procedure

b. The presiding officer may direct speakers to avoid repetition in order to permit maximum information to be provided the legislative body within the time allotted for the hearing.
c. The appellant and applicant shall be allocated sufficient time to address the legislative body. However, reasonable time limits on persons addressing the legislative body, including applicants, proponents, and opponents may be imposed if necessary for the orderly conduct of the hearing and the limits are fairly applied.

3. Administrative Agenda.
a. The order of discussion after introduction of an item will generally be as follows:
(i) Staff comments, information, and reports, followed by questions from the members.
(ii) Public comments and information, followed by questions from the members.
(iii) Member discussion, motion, and action.
b. Once the item is placed before the council for discussion, motion, or action, no member of staff or the public is allowed to address the council without the consent of the mayor or members.

4. Public Comment for matters not on the agenda will be held at the beginning of each regular meeting.

D. Public Comment for Matters Not on the Agenda

1. As required by the Brown Act, a portion of each council meeting agenda will provide an opportunity for members of the public to address the council on any agendized item, including closed session and consent calendar items. Regular meeting agendas also will provide for public comment on any non-agendized matter that is within the subject matter jurisdiction of the city.

2. In response to public comment on non-agendized items, the members may individually:
a. briefly respond to statements made or questions posed by members of the public;
b. ask questions for clarification;
c. provide a reference to staff or other resources for factual information or response;
d. request staff to report to the council at a subsequent meeting; and e. request staff to place a matter of business on a future agenda as needed.

City of McFarland Council Rules of Procedure

E. Quorum Call

1. During the course of the meeting, should the presiding officer note a quorum is lacking, the presiding officer shall call this fact to the attention of the city clerk.

2. The presiding officer then shall issue a quorum call. If a quorum has not been restored within two minutes of a quorum call, the presiding officer may declare a recess for a reasonable period of time in order to reestablish a quorum.

3. If no quorum is reestablished within a reasonable time, the presiding officer shall adjourn the meeting.

4. Continuation of a meeting extending past 9:30 p.m. requires a majority vote of the members present.

F. Obtaining the Floor

1. Any member wishing to speak must first obtain the floor by being recognized by the presiding officer. The presiding officer shall recognize any member who seeks the floor when appropriately entitled to do so.

2. With the concurrence of the presiding officer, a member holding the floor may address a question to another member and that member may respond while the floor is still held by the member asking the question. A member may opt not to answer a question while another member has the floor.

G. Motions

1. Rosenberg’s Rules of Order: Simple Parliamentary Procedures for the 21st Century governs the management of motions.

H. Voting

1. Requirements for Action.
a. Unless a higher vote is required by the city code, or otherwise by law, the affirmative votes of at least a majority of those members present:
(i) For the council to take action on an item of business; (ii) To pass any ordinance, resolution, or motion; or
(iii) To make or approve any order for the payment of money requiring council approval.
b. Any ordinance declared by the council to be necessary as an emergency measure and containing a statement of the facts constituting such emergency may be introduced and adopted at the same meeting if passed by at least four affirmative votes.

City of McFarland Council Rules of Procedure

2. Voting Disqualification.
a. A member shall not vote upon a matter if the member is disqualified from voting on that matter due to a conflict of interest. Nor shall any member vote on a quasijudicial matter if the member is biased regarding that matter. b. A member shall openly state an abstention due to a conflict of interest or bias. c. A member who is abstaining due to a financial conflict of interest shall publicly identify the financial interest in detail sufficient to be understood by the public, except that disclosure of the exact street address of a residence is not required. d. As to any other conflict of interest, the member's determination may be accompanied by an oral or written disclosure of the conflict of interest. e. A member who is disqualified by a conflict of interest in any matter shall not remain on the dais during the discussion and shall not vote on that matter.

However, the member may remain on the dais for Consent Calendar items if the member states the abstention from the vote due to the described conflict of interest before the Consent Calendar is voted on in one motion.

City of McFarland Council Rules of Procedure

Chapter 9 – Council Vacancies
A. Procedures

1. Absence from five consecutive regular meetings of the council, unless excused by resolution of the council, operates to vacate the seat of the mayor or councilmember so absent.

2. A vacancy in the office of councilmember or mayor may be filled by special election called by the council or may be filled by appointment. The city clerk shall take the necessary actions to accomplish the special election or recruitment and appointment of candidates as provided by council Resolution.

City of McFarland Council Rules of Procedure

Chapter 10 - Facilities
A. Meeting Locations

1. Whenever practical, legislative body meetings shall be held at the McFarland Veterans Community Center, located at 103 W Sherwood Avenue, McFarland, CA 93250.

B. Meeting Capacity

1. Council chamber attendance is limited to the posted seating capacity. The city manager shall appropriately regulate entrance to the council chamber when the council chamber capacity is likely to be exceeded. When legislative bodies are in session, members of the public shall not remain standing in the seating area or aisles of the council chamber. Sitting on the floor is not permitted. The sergeant-at-arms shall enforce this chapter.

2. In compliance with the Americans with Disabilities Act, meeting locations are accessible to the public. If a member of the public needs special assistance, a disability-related modification or accommodation, agenda materials in an alternative format, or auxiliary aids to participate in this meeting, they should contact the Office of the City Clerk at 661-792-3091 or [email protected] as soon as possible. Providing at least 72 hours' notice will help ensure that reasonable arrangements can be made.

City of McFarland Council Rules of Procedure

Chapter 11 - City Council Committees and Regional Organizations A. General

1. The mayor shall make all appointments to council standing committees, subject to the approval of the council. The mayor shall make all appointments to council ad hoc committees.

2. A standing committee is a permanent committee of the council established to consider subjects of a particular class, with regularly scheduled meeting dates and times.

3. An ad hoc committee is a temporary committee of the council established for a special purpose and of limited duration.

4. Standing and ad hoc committees have fact-finding, informative, and recommendatory powers only, and such other powers delegated by the council.

5. The council intends that council committees, to the extent possible, conduct a full hearing on any matter referred to that committee before the committee refers the matter back to the council.

6. The city clerk shall maintain and keep on file a list of the standing committees, ad hoc committees, regional organizations, and joint powers agencies to which councilmembers are appointed.

B. Council Standing Committees

1. General Guidelines
a. Standing committee appointments shall be made by the mayor at the beginning of each calendar year or as necessary.
b. Standing committees shall meet at the city hall complex. c. Standing committees are subject to the Brown Act. Standing committee agendas shall be prepared, posted, and distributed in accordance with the Brown, stating the time and place of the meeting and the subject matters to be discussed. d. A councilmember who is not a member of the standing committee may attend a standing committee meeting, provided the member attends only as an observer, does not testify or otherwise participate in any discussion, and sits amongst the public.
e. Except as provided in subsection f, all items on a standing committee’s agenda must first be referred to the committee by the council for review, with a recommendation returned to the council within 120 days, subject to the exceptions set forth below or as otherwise modified by the council.

City of McFarland Council Rules of Procedure

f. With approval of the city clerk, city manager, or committee chair, an item may be sent directly to a standing committee without council referral. If a matter is so referred to a standing committee, the committee agenda must note that fact on the face of the agenda and the committee chair shall notify the council. Such referrals are not required to be forwarded to the council unless council action is recommended by the standing committee.
g. The city clerk shall assist the committee chair with the operation of the committee.

C. Council Ad Hoc Committees

1. Establishment.
a. The mayor or a majority of the council may request the creation of an ad hoc committee.
b. The city manager or a department director, together with the city attorney, shall work with the appropriate supporting department(s) and determine the scope and approximate duration the ad hoc committee.
c. The department director shall submit a request to the mayor, with a copy to the city clerk, requesting the creation of and appointment of two members to an ad hoc committee.

2. Scheduling Ad Hoc Committee Meetings.
a. Once an ad hoc committee has been established, a meeting calendar will be established and adopted by the ad hoc committee.
b. A councilmember who is not a member of the ad hoc committee may attend an ad hoc committee meeting, provided the member attends only as an observer, does not testify or otherwise participate in any discussion, and sits amongst the public.

3. Dissolution.
a. Once an ad hoc committee has completed its task, the supporting department shall submit a report to the mayor, with a copy to the city clerk, stating completion of the ad hoc committee tasks and request the dissolution of the ad hoc committee.
b. An ad hoc committee is automatically dissolved one year after its first meeting, unless it is dissolved earlier under Rule 12.C.3.a.

City of McFarland Council Rules of Procedure

c. The city clerk will provide a periodic report to council announcing the dissolution of ad hoc committees.

D. Regional Organizations
The mayor shall appoint council representatives to regional organizations and joint powers agencies listed in the documents maintained by the city clerk. Appointments shall be made at the beginning of each calendar year or as necessary.

City of McFarland Council Rules of Procedure

Chapter 12 – Councilmember Proposal Requests
A. General

1. This chapter outlines the process for councilmembers to propose an idea for council action. It modulates the agenda requests of individual councilmembers by referring those requests to the relevant city council committee for review, as appropriate, and in so doing provides clear guidance to the council appointees that their work demands are serving the council as a whole. It also ensures councilmember requests are duly tracked and assigned, thus promoting transparency and accountability.

B. Procedures

1. Councilmember proposal requests must be submitted in writing to the city clerk.

The proposal must include a brief summary and background, identify the applicable strategic plan/priority, estimate any budget adjustment or impact, and include additional information sufficient for committee deliberation.

2. The mayor, in consultation with the city manager, city attorney, and city clerk, shall review all requests and may assign each proposal to a committee based on committee jurisdiction, unless an exception applies.
a. Exceptions:
i. Urgent matter that requires quick council action;
ii. A matter related to a pending council matter;
iii. A matter that on its face falls fully outside the jurisdiction of the City;
iv. A matter within the City Manager’s executive function that does not need council authorization; or
v. A matter that should receive a city-established board, commission, or committee input before going to a city council standing committee.

City of McFarland Council Rules of Procedure

Chapter 14 – City Advisory Bodies
A. Vacancies and Appointments

1. When any vacancy occurs on a board, commission, or committee (advisory body) the city clerk shall announce that vacancy pursuant to the standard outreach procedures. The city clerk’s office maintains the board and commission files and performs all clerical and administrative support tasks related to the application process.

2. At the close of the application period, all applications received for the vacancy are referred by the city clerk to the appropriate nominating body or person for review and recommendation.

3. If the recommending body is a councilmember, following review, the member shall send the board and commission recommendation(s) to the city clerk who will forward to the mayor for review.

4. After reviewing the submitted recommendation(s), the mayor shall make the appointment to fill the vacancy at the next council meeting. Concurrence in an appointment for a seat on a city board, commission or committee shall be by vote of the city council, if necessary.
a. If the council does not approve the appointment, then the mayor shall make another appointment, and at the soonest regular meeting following the meeting at which the subsequent appointment was made, the council shall vote whether to confirm the new appointment.
b. This procedure shall be followed until an appointment has been approved by the council. No request by a member to delay the appointment or approval will be allowed unless approved by a majority vote of the council.

5. At the direction of the council, all vacancies, application periods, and close of application periods for boards and commissions shall be monitored and maintained by the city clerk.

City of McFarland Council Rules of Procedure

6. In making nominations and appointments to city boards and commissions, the mayor, and members should consider persons of various ethnicities, ages, genders, education, and occupational experience as reflected in the general population of the city; and should, as appropriate for the vacancy, consider persons from all districts of the city.

B. Requests for Future Agenda Items

1. Members may submit items under the purview of the advisory body for inclusion on a future agenda by orally making the request under Council Statements and Reports. a. The department staff shall add a member’s requests to a chronologically-ordered log that contains all pending requests, i.e., those not having been heard as an agenda item or not otherwise having been removed from the log.

C. Advisory Body Reports

1. Advisory body recommendations and reports to the city council shall follow the procedure set forth in this Rule 17.C.

2. Annual report preparation.
a. Each advisory body shall provide an annual report for review by the City Council.
b. The annual report shall be provided in a format established by the city clerk and should include highlights and accomplishments from the prior year’s work; proposed projects, priorities, and recommendations for the upcoming year. c. The city clerk shall manage an advisory body annual report calendar so that city staff can gather input to prepare a proposed report to the advisory body in a timely manner.
d. Each advisory body must approve its annual report before presentation to the City Council. When presenting proposed reports to advisory bodies, staff should include information on the feasibility of any recommendations therein.

3. Review by City Council.
a. Annual reports approved by advisory bodies shall be placed on a City Council meeting agenda.
b. The city clerk shall act as a liaison and collaborate with city staff to collect any additional information that may be helpful to the council’s evaluation of advisory body annual reports.
c. The City Council shall review advisory body annual reports and give staff direction on those reports’ stated projects, priorities, and recommendations.

4. Other recommendations. If an advisory body has recommendations outside the annual review process, the city clerk shall coordinate with the advisory body to have

City of McFarland Council Rules of Procedure

those recommendations brought before the City Council, which may consider and act on those recommendations in the same way it does advisory body annual reports.

Chapter 14 – Censure Procedures for the McFarland City Council A. It shall be a violation of this section for any Council member to violate any general law or regulation, and any, rule, law, ordinance or resolution of the City of McFarland. It shall also be a violation of this section for any sitting Council member to violate an administrative policy of the City which has been adopted following a vote of the City Council on the matter and which by its terms is expressly made applicable to the City Council.

B. Any violation of the foregoing paragraph by a Council member may be punished through the administration of a public censure of the member by the City Council. Such censure may be in addition to any other punishment applicable to the violation.

C. When evaluating a request for defense made by the censured member in litigation arising from the censured conduct, the record of the censure shall be considered by the City Council. Such record shall not be determinative. Failure of the City Council to censure the conduct of a Council member does not constitute waiver of the Council’s right to refuse to defend the Council member in an action.

D. The charged Council member shall be given notice and an opportunity to be heard as follows:
a. Only a sitting Council member may initiate proceedings for censure. b. Proceedings shall be commenced by providing a written statement of charges to the Clerk by the Council member initiating the charge. The statement of charges shall contain, at a minimum, the designation of the specific rule, law regulation, etc. which the Council member is claimed to have violated and a statement of the date, place and time at which the violation occurred. The statement shall further contain a description of the conduct of the Council member which is alleged to constitute the violation. The Clerk shall deliver the statement of charges to all other Council members. The statement of charges shall be delivered to the charged Council member at least ten (10) days prior to the meeting at which the censure motion is proposed to be brought. Initiation shall not require the prior approval of the City Council.
c. Within seven (7) days after delivery of the statement of charges, the charged Council member may deliver a written response to all other members of the City Council unless the charged Council member chooses to defer to response to the hearing.

E. The motion for censure shall be agendized and considered at the first regular meeting occurring ten (10) days following the delivery of the statement of changes to the Clerk and charged Council member. The hearing may not be continued except upon the absence from the meeting of a Council member other than the Council member bringing the charge or the Council member who is the subject of the charge.

City of McFarland Council Rules of Procedure

a. The hearing shall be conducted in an open session by the Mayor unless the Mayor is being charged, in which case the Mayor Pro Tern or some other Council member shall conduct the proceedings.
b. The hearing shall generally proceed by a reading of the charges by the charging Council member. The charging Council member may present witnesses; the charged Council member may answer in rebuttal; members of the public may speak in favor or opposed to the charge; and the remaining Council members may speak to the charges.in that order. c. Passage of the motion for censure shall require a majority vote of the members of the City Council. The voting members shall not go into closed session for deliberation.

F. If the motion for censure does not pass the proceedings shall be at an end. If the motion for censure passes, such motion shall become a part of the public record, a copy of which shall be made available upon demand to any member of the public and notice of same shall be placed in the administrative file of the Council member.

G. Proclamations. Any two Council members may place a proclamation item on the Agenda.

Proclamations will be considered for approval on the Consent calendar by the City Council, with any presentation following immediately thereafter, unless otherwise pulled for earlier consideration bv the Presiding Officer or a majority of the City Council. If a majority of the Council votes in favor of the proclamation, it shall be deemed to be a proclamation of the City Council acting as a body.

H. Use of Letterhead. Members of the City Council may use official City letterhead to correspond with other public officials and with consultants, as well as letters of recognition, congratulations, support or similar sorts of correspondence to the extent allowed under California law. Any such correspondence shall state that the views expressed therein are personal and not the position of the City unless the City Council has officially adopted such position. Additionally, the letterhead shall also note the Office from which it is being sent, such as “From the Office of Councilmember “From the Office of the Mayor Pro Tem” or “From the Office of the Mayor." No commission or Sub-Legisiative Body may take a position officially representing the City unless authorized to do so by the City Council.

I. Interpretation. References in these Procedural Rules for the Conduct of City Council Meetings to '‘Council members" shall include the Mayor and Mayor Pro Tem.

City of McFarland Council Rules of Procedure

Chapter 18 – Annual Review of City Council Appointive Officers A. Purposes

1. The city council is committed to performing regular annual reviews of its appointive officers, which include the following positions: city attorney, city clerk, city manager, finance director, and chief of police. These positions report directly to the city council.

2. Clear communication and performance metrics are at the core of the work of the council and the city. To evaluate council appointive officers on a consistent basis, the City Council will assume the role and responsibility of developing and leading annual performance metrics and evaluations.

B. Procedures

1. The city clerk shall coordinate and schedule appointive officer annual reviews.

2. The city council shall meet in closed session to conduct a performance evaluation of an appointive officer. The council may appoint one or more of its members to be the point of contact with the appointive officer and the Human Resources Department for the negotiation of any compensation adjustments.

3. Final approval of compensation adjustments, by resolution or contract, shall be made at an open meeting of the city council.

City of McFarland Council Rules of Procedure

Glossary
et seq
et seq means “and the following one or ones”.

Ex Parte Communications
An ex parte communication is a written or oral communication between a decisionmaker and an interested person concerning any issue in a formal proceeding, other than procedural matters that does not occur in a public forum established in the proceeding or on the record of the proceeding.

Members shall disclose the substance of all ex parte communications at the beginning of a public hearing for any item brought before the legislative body for hearing, consideration, or action.

Non-Binding Resolution
A non-binding resolution is a resolution in which the council declares its position and opinions on an issue, policy, or other matter that the council lacks legal authority to establish or regulate, but that the council determines is of such importance that the council should make the symbolic gesture of adopting a resolution declarative of council’s position.

Presiding Officer
The Presiding Officer is the person who presides over a meeting and is charged with maintaining order and decorum, recognizing members to speak, and interpreting the rules, practices, and precedents. In the city council the presiding officer is the Mayor. In advisory bodies established by the city council the presiding officer is the Chair. In the absence of Mayor or Chair, the Vice Mayor or Vice Chair shall preside.

Quasi-judicial
Quasi-judicial action means any council action that implicates constitutionally protected property or liberty interests, such as issuance or denial of discretionary land use permits, subdivision maps, business licenses, and other similar action in which a property interest is at stake and the council is charged with applying legal standards to a specific factual situation.

Sergeant-at-Arms
The sergeant-at-arms is the principal law enforcement official of the legislative body and is charged with maintaining security within the chamber (meeting location) and surrounding areas. The sergeant-at-arms also enforces protocol and ensures public decorum is followed as noted in the body’s rules of procedure.

Teleconference
A meeting conducted among participants in different locations via telecommunications equipment such as telephones, computers, or other devices.