Patterson City Council
October 6, 2026

CITY OF PATTERSON
City Council Regular Meeting Agenda
October 06, 2026, 07:00 PM
City Council Chambers
1 Plaza, Patterson, CA 95363

PUBLIC MEETING GUIDELINES
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In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (209) 895-8012.  Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102-35.104 ADA Title II]
The City Council agenda and supporting public documents are available for viewing in City Hall, Administration Department, 1 Plaza, 2nd Floor, Patterson, California, during normal business hours.

The City Council agenda and supporting public documents are also available online on the City website www.pattersonca.gov or please call or email the City Clerk at (209) 895-8012 or [email protected]. If you wish to be notified of future City Council Meetings, please visit our website www.pattersonca.gov and go to “City Council Agendas”.

Call to Order
Pledge of Allegiance
Statements of Conflict
Presentation
Del Puerto Healthcare Campus (Karin Freese, Chief Executive Officer) Items from the Public
Any Member of the audience who wishes to address the Council on a matter not listed on the agenda may do so by raising your hand and stepping to the podium. If you are joining the meeting through Zoom, please use the 'Raise Hand' feature. If you are calling in by phone, you may press *9 when the Mayor announces the item. Council will take no action other than referring the item to staff for study and analysis and may place the item on a future agenda (Resolution No. 92-25).

In order that all interested parties have an opportunity to speak, any person addressing the Council will be limited to a maximum of three (3) minutes unless the Mayor grants a longer period of time (Resolution No. 2025-11).

Please State Your name and City for the Record.

Consent Calendar
All items are approved by a single action. Any item may be removed from the Consent Calendar for separate discussion upon request from a member of the Public, Staff and/or Councilmember.

Motion to Waive Readings – All Reading of Ordinances and Resolutions, Except by Title are hereby waived.

Approve the Closed Session, Regular Meeting, and Special Meeting Minutes of September 1, 2026, September 2, 2026 and September 15, 2026.

1. 2.

3. 4.

4.1 5.

6. 6.1

6.2

Approve Street Closure on S. Del Puerto Ave. from Plaza Circle to S. El Circulo Ave. for Patterson Night market event on Friday, October 23,2026.

Approve Street Closure on N. Del Puerto Ave., N. 3rd St., N. Salado Ave., W. Las Palmas Ave., S. Del Puerto Ave., S. 3rd St., S. Salado Ave.,and Plaza Circle Approval of a Professional Services Agreement with 65th North Group for the City Attorney Services Feasibility Study.

Approve Resolution No. 2026-59 Accepting the Public Improvements for the Salado Creek Trail Phase I Project as complete; Authorizing the City Clerk to file the Notice of Completion and commence the One-Year Warranty period.

Approve Resolution No. 2026-60 Accepting the Public Improvements for the 2026 Slurry Seal Project as completed; Authorizing the City Clerk to file the Notice of Completion and commence the One –Year Warranty Period.

Approve Resolution No. 2026-61 Accepting the Public Improvements for the Sunset Court Improvements Project as complete: Authorizing the City Clerk to file the Notice of Completion and commence the One-Year Warranty.

Presentation/Action Item
Valley Improvement Project Community Mural Funding Request Staff Report: Program Manager Ferriera
Council: Provide direction regarding a request from Valley Improvement Project (VIP) for $10,000 in city funding for a community mural and select one of the following options:

Allocate $10,000 in city funding to VIP for the development and installation of a community mural.

1. Direct that the proposed VIP mural be completed within the city’s existing $20,000 mural allocation.

2. 3. Take no action and provide no additional city funding for the proposed VIP mural.

Centennial Park Project Update and Design Direction

6.3 6.4

6.5 6.6

6.7 6.8

7. 7.1

7.2

Staff Report: Director of Engineering Services Rodriguez Council: Provide direction on the proposed park elements, and authorize community engagement activities to inform final design decisions.

Public Hearing
Approve First Reading and Introduction of Ordinance No. 891 reading by Title Only, Waiving Further Reading, an ordinance of the City Council of the City of Patterson approving the Amended and Restated Development Agreement Between the City of Patterson and Central Valley-Sierra Associates and South Cord Management LLC for Catalyst Cannabis Dispensary.

Staff Report:  Deputy City Attorney Pritchard
Mayor: Open/Close Item to Public Hearing
Council: Motion to Approve First Reading and Introduction of Ordinance No. 891 reading by Title Only, Waiving Further Reading, an ordinance of the City Council of the City of Patterson approving the Amended and Restated Development Agreement Between the City of Patterson and Central Valley-Sierra Associates and South Cord Management LLC for Catalyst Cannabis Dispensary.

City Staff Reports
Adopt Resolution No. 2026-62 establishing the Data Center Community Advisory Committee; select the committee structure and appointment options described in this report; appoint two Councilmembers to the Committee or direct that those appointments return on a future agenda; and authorize the City Clerk to recruit applicants for the public-member seats.

Staff Report:  Deputy City Attorney Pritchard
Council: Motion to  Adopt a Resolution No. 2026-62 establishing the Data Center Community Advisory Committee; select the committee structure and appointment options described in this report; appoint two Councilmembers to the Committee or direct that those appointments return on a future agenda; and authorize the City Clerk to recruit applicants for the public-member seats.

City Council Items

8. 8.1

9. 9.1

10.

Councilmember Hernandez

10.1.A Stanislaus Homeless Alliance (Councilmember Mora alternate)

10.1.B Stanislaus County Hazerdous Waste Advisory Committee (Councilmember Mora alternate)
Councilmember Jack

10.2.1 San Joaquin Valley Air Pollution Control District (Mayor Pro Tem Roque alternate)
Councilmember Mora

10.3.A Workforce Development Board (Mayor Pro Tem Roque alternate) Mayor Pro Tem Roque

10.4.A (EDAC) Stanislaus County Economic Development Action Committee Mayor Clauzel

10.5.A Stanislaus County Mayor's Meeting

10.5.B StanCOG (Mayor Pro Tem Roque alternate)

10.5.C League of California Cities (Mayor Pro Tem Roque alternate) Other Matters
Adjournment

DECLARATION OF POSTING
I, Aracely, Alegre, City Clerk of the City of Patterson, California do hereby declare that the foregoing notice was posted on the Bulletin Board at City Hall, 1 Plaza, Patterson, California on October 1, 2026.

The Agenda is also posted for public view on the Bulletin Boards of the Patterson Branch Library, 46 N. Salado Avenue, Patterson, and the City of Patterson City Web Site www.pattersonca.gov Dated this October 1, 2026
/s/ Aracely Alegre, CMC

10.1 10.2

10.3 10.4

10.5 11.

12.

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Aracely Alegre, City Clerk
MEETING DATE: October 6, 2026
ITEM: 4.1
SUBJECT : Del Puerto Healthcare Campus (Karin Freese, Chief Executive Officer)

RECOMMENDATION
This Item is Informational. No action needed.

PATTERSON

HEALTHCARE
CAMPUS
Master plan update and City
coordination
Del Puerto Health Care District
City Council presentation • October 6, 2026
AB 2282: Governor vetoed the proposed emergency care unit DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 2
September 27, 2026
The bill would have authorized one 24-hour rural emergency stabilization care unit in Patterson, operated with a publicly owned hospital.

Governor’s stated concern
A freestanding unit would lack the infrastructure of a general acute care hospital.

Evaluation and transfer could add risk and delay for patients with life-threatening conditions.

The veto does not change District’s Phase 1 campus work or long-term hospital planning.

Assemblymember Juan Alanis: the access problem remains
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 3
His office’s response to the veto
Safeguards The bill included public notices, EMS triage protocols, transfer agreements, and direct transport to a hospital when clinically indicated.

Access Alanis argued that the veto leaves West Side residents with a 25 to 30 minute trip to hospital emergency care.

Next step His office said he intends to reintroduce the proposal next year and continue working with the District and local partners.
“Our commitment to Patterson doesn’t end with this bill.” The long-term campus vision
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 4
A connected campus
Healthcare facilities
Senior care and housing
Mixed-use housing and
retail
Public spaces and
connections
Illustrative master plan. Later
facilities depend on separate
planning, financing, and approvals.

The master plan is now a City review project
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 6
Progress to date
01 District submitted the master plan in
April 2026
02 Phase 1 design and civil planning are
advancing
03 City and District teams are working
through technical comments
04 Planning Commission and Council
review follow the applicable City process
Phase 1: two facilities and the site to serve them
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 5
Ambulance and
Administration Center
Combined Clinic
Ambulance operations and
District administration
Primary care and community
mental health services
The complete Phase 1 scope also includes grading, utilities, stormwater, access, parking, and other site work needed to open both buildings.

Ninth Street water line: the sequence
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 7
1 The campus plan established its
projected water demand.
2 City testing found the existing 8-inch line
insufficient.
3 The City incorporated a 10-inch line into
the Ninth Street rebuilding design.
4 The parties will address additional cost
responsibility in master plan review.

Coordinating the pipe work with road reconstruction avoids reopening the new street for this need.

Stormwater: a plan that needs updating
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 8
2018 plan
The stormwater plan called for retention on land
the City and school district purchased in 2018.

Both actions were approved at the same meeting.

Current challenge
Centennial Park design expanded. The park can
no longer hold the planned runoff from the triangle
between Sperry, Ward, and Ninth.

Joint solution
The District and City are evaluating onsite
stormwater management and the plan changes it
requires.

How infrastructure costs are resolved
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 9
Design requirements first. Cost allocation follows through review.

Technical finding What capacity or stormwater solution is needed? Project scope What work belongs in the City project and on the District parcel? Cost review What added costs arise, and how should the parties allocate them? Written outcome Document each party’s responsibility through the applicable approval and agreement process.

No cost split has been agreed.

The District and City will document the outcome through the appropriate process.

A clear division of work helps both agencies
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 10
District
Defines healthcare program and phases
Secures financing and delivery partners
Designs, builds, and operates District facilities
City
Reviews land use and development plans
Determines public infrastructure requirements
Coordinates City approvals and improvements
Shared work: document the technical decisions and negotiate responsibility in the open approval process.

The path from planning to opening
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 11
2026
Master plan review and
Phase 1 design
2027
Construction partner
selected and final
building plans submitted
CEQA completed
2028 target
Construction start
May 2030
Phase 1 Completed
Dates are planning targets. City approvals, design, financing, procurement, and grant requirements affect the sequence.

Building the Future of Local Healthcare Together
DEL PUERTO HEALTH CARE DISTRICT • OCTOBER 6, 2026 12
A transparent path to the next decisions
1 Confirm the remaining technical findings and studies
2 Document infrastructure options and added costs
3 Maintain a shared schedule for staff review and public decisions 4 Bring unresolved policy and cost issues through the proper process Planning ahead on infrastructure is responsible coordination. Cost responsibility remains under review.

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Aracely Alegre, City Clerk

MEETING
DATE:

October 6, 2026
ITEM: 6.2
SUBJECT : Approve the Closed Session, Regular Meeting, and Special Meeting Minutes of September 1, 2026, September 2, 2026 and September 15, 2026.

RECOMMENDATION
Motion to Approve the Closed Session, Regular Meeting and Special Meeting Minutes of September 1, 2026,September 2, 2026 and September 15, 2026

Present:

Councilmember Roque
Councilmember Mora
Councilmember Jack
Mayor Clauzel

CITY OF PATTERSON
City Council Special Closed Session Minutes
September 01, 2026

Absent:

Councilmember Hernandez
City Staff:

City Manager Ulloa
Assistant City Manager Willett
Deputy City Attorney Pritchard

1. Call to Order
The special (closed session) meeting of the City Council of Patterson was called to order in the City of Patterson, Council Chambers at 6:00 p.m. by Mayor Clauzel.

The City Council will adjourn to Closed Session to address the following:

1.1 Liability Claims (Gov. Code, §54956.95) Claimant: (Bonnie Meyers - Claim# FR104036) Agency claimant against: City of Patterson

1.2 Public Employment (Gov. Code, § 54957) Title: Public Works Director

2. Statements of Conflict
None.

3. Items from the Public
None.

4. Adjourn to Closed Session
At 6:01 p.m. there being no items from the public, the Patterson City Council adjourned to Closed Session.

5. Report from Closed Session (if any)
At 7:00 p.m. Mayor Clauzel reported the following actions from closed session:
• Item 1.1 – Liability Claim, Claimant Bonnie Myers (Claim No. Frank Robert 104036):

The Council voted 4-0-1 to reject the claim.
• Item 1.2 – Public Employment, Government Code §54957, Title: Public Works Director:

Direction was given to staff.

6. Adjournment
There being no further business, the special (closed session) meeting of the City Council of the City of Patterson of September 1, 2026 was adjourned at 7:00 p.m.

Approved by the Patterson City Council on (date pending).

Present:

Councilmember Roque
Councilmember Mora
Councilmember Jack
Mayor Clauzel

Absent:

Councilmember Hernandez
City Staff:

CITY OF PATTERSON
City Council Regular Meeting Minutes
September 01, 2026
City Manager Ulloa
Assistant City Manager Willett
Deputy City Attorney Pritchard
Acting Recreation & Community Services Director Hernandez Finance Director Williams
Fire Chief Hakola
Police Chief Casey
Acting Public Works Director Guluarte
Associate Planner Rodriguez
IT Manager Marty
Water Resources Manager Encinas
Acting Human Resources Director Callum
Community Development Director Stice
City Clerk Alegre

1. Call to Order
The regular meeting of the City Council of the City of Patterson of September 1, 2026 was called to order in the City of Patterson at 7:02 p.m. by Mayor Clauzel.

2. Pledge of Allegiance

3. Statements of Conflict
None.

4. Proclamation

4.1 Proclamation - Child Cancer Awareness Month September 2026 (Mayor Clauzel) Mayor Clauzel read and presented a proclamation designating September 2026 as Childhood Cancer Awareness Month in the City of Patterson. Members of the Patterson Childhood Cancer Awareness Committee and Roberto's Smile were present to receive the proclamation.

A moment of silence was observed.

5. Items from the Public
Kat Ritchie, Patterson - requested that City Manager Fernando briefly explain the structure of city government to attending high school students present as part of a government class.

City Manager Ulloa provided an overview of the city manager's role, departmental structure, and key functions. City Attorney also spoke to the importance of government transparency and public participation under the Brown Act.

Marco Ahumada, (Economic Strategic Commission Member), Patterson - reported on initiatives under discussion at the Economic Strategic Commission, including: an updated Patterson Market and Gap Analysis, the Facade Improvement Program status, the future of the city-owned old Sheriff's building, and the use of development impact fees for downtown revitalization. He also announced an upcoming mini-documentary about Blue's Cafe on September 12 and a forthcoming special events application for a Patterson Night Market.

Yolanda Magana, Patterson - announced the first Patterson "Broomsticks and Bubbly" event on Saturday, October 24 from 6:00–10:00 PM, a 21-and-over downtown business showcase event.

Tickets were reported to be on sale.

Alyssa, Patterson - addressed concerns regarding the conduct of Councilmember Hernandez toward members of the public on social media, citing the Council's own handbook standards for civility and respectful conduct. She also raised concerns about the ongoing censure process involving Mayor Clauzel, including questions of conflict of interest.

Sheryll Lex, Patterson - sought clarification from the City Attorney regarding the censure of Mayor Clauzel. The City Attorney confirmed that the investigation did not involve criminal allegations and that removal from office is not within the scope of the process, as only the electorate may remove elected council members. Ms. Lex expressed personal support for Mayor Clauzel and noted concern about the procedural conflict of interest involved in the censure vote.

Kandace Weyhrauch, Patterson - commended the new City Attorney, expressed concern over the delayed public statement regarding the censure process, and spoke to the importance of believing victims in misconduct investigations. She offered her experience regarding recall procedures.

Christiana, Patterson (Invest in Me) - spoke on behalf of Invest in Me, a local nonprofit, announcing the 8th Annual Mental Wellness Summit on Saturday, September 12 from 9:00 AM–1:00 PM at the Hammon Senior Center in observance of Suicide Prevention Month. She noted that Stanislaus County ranks among the top counties in California for suicide rates.

Guadalupe Gavina - expressed gratitude to Councilmember Hernandez, Councilmember Roque, and the Sheriff's Department for their assistance in locating her missing 14-year-old daughter, Natalie Perez Gavina, who has autism and was found safe in Modesto after going missing on August 29.

Councilmember Roque acknowledged the family's situation and thanked Councilmember Hernandez, Chief Hill, and all deputies involved.

6. Consent Calendar
At 7:42 p.m. Mayor Clauzel opened the item to public comments. There were no comments.

Motion to approve Consent Calendar Items 6.1 through 6.3 was made by Councilmember Mora and seconded by Councilmember Jack. The motion carried 4-0-1.

6.1 Motion to Waive Readings – All Reading of Ordinances and Resolutions, Except by Title are hereby waived.

6.2 Approve Resolution No. 2026-55 Accepting the Public Improvements for the Safavieh BTS Shell Improvements Project as complete with the exception of the Rogers Road Frontage Improvements; Authorizing the City Clerk to File the Notice of Completion and commence the One-Year Warranty.

6.3 Approve Resolution No. 2026-56 approving the Fiscal Year 2025-2026 Stanislaus HOME Consortium and Stanislaus Urban County Consortium Consolidated Annual Performance and Evaluation Report (CAPER).

7. City Staff Reports

7.1 Approve & Authorize the City Manager to Award a Task Order with Woodard & Curran, Inc. For Preliminary Engineering Services Associated with the City's Hexavalent Chromium Treatment Project in an Amount Not to Exceed $99,990, Under the City's Existing Professional Services Agreement (PSA).

Acting Public Works Director Guluarte introduced the item. Water Resources Manager Encinas presented a detailed overview of the project.

Councilmember Jack and Councilmember Mora both expressed support for the project's importance to public health.

Council Member Mora and Council Member Roque raised the concept of an independent peer review of the feasibility study.

City Manager Fernando confirmed staff could pursue a peer review as a separate action without delaying the current task order. Water Resources Manager Encinas clarified that quality assurance and quality control (QA/QC) is incorporated into the current contract through senior technical staff review within the same firm.

At 8:01p.m. Mayor Clauzel opened the item to public comment.

Public comments were received from Kat Ritchie (in person), Kandace Weyhrauch (Zoom), and Mercedes Carter (Zoom), all generally supportive of the project while expressing concern over the timeline and advocating for an independent peer review. Kandace Weyhrauch and Mercedes Carter emphasized the potential public health implications of chromium 6, particularly given the childhood cancer awareness context of the evening.

Motion to approve and authorize the City Manager to award a Task Order with Woodard & Curran, Inc. for Preliminary Engineering Services associated with the City's Hexavalent Chromium Treatment Project in an amount not to exceed $99,990 under the City's existing Professional Services Agreement was made by Councilmember Jack and seconded by Councilmember Mora. The motion carried 4-0-

1. Staff was additionally directed to return with a separate action regarding an independent peer review of the feasibility study.

8. City Council Items

8.1 Councilmember Hernandez

8.1.A Stanislaus Homeless Alliance (Councilmember Mora alternante)

8.1.B Stanislaus County Hazerdous Waste Advisory Committee (Councilmember Mora alternate)

8.2 Councilmember Jack

8.2.A San Joaquin Valley Air Pollution Control District (Mayor Pro Tem Roque alternate) Nothing to report.

8.3 Councilmember Mora

8.3.A Workforce Development Board (Mayor Pro Tem Roque alternate) Nothing to report.

8.4 Mayor Pro Tem Roque

8.4.A (EDAC) Stanislaus County Economic Development Action Committee Nothing to report.

8.5 Mayor Clauzel

8.5.A Stanislaus County Mayor's Meeting

8.5.B StanCOG (Mayor Pro Tem Roque alternate)

8.5.C League of California Cities (Mayor Pro Tem Roque alternate) Mayor Clausell reported the next Stanislaus County Mayor's Meeting is scheduled for September 9.

9. Other Matters
Councilmember Roque addressed questions raised by members of the public regarding the Parks, Recreation & Beautification Commission’s involvement in the Centennial Park design, the current phase and status of the Centennial Park project, and the recording of commission meetings. He also requested a follow-up meeting with staff to discuss ADA ramp improvements in District D.

Mayor Clauzel delivered a prepared statement regarding the ongoing censure process. He noted that as of the meeting date, he had received no written or verbal communication regarding the next procedural steps following the council's public announcement of the censure. He stated he had been denied access to all report findings and documentation, had been denied legal representation throughout the investigation, and had not been afforded standard procedural safeguards.

Mayor Clauzel confirmed that he fully cooperated with the investigator, did not deny any material facts, and accepted responsibility where warranted. He called for a review of the process to ensure fairness and neutrality in future investigations of this nature.

City Attorney responded, acknowledging the sensitivity of the matter due to its hybrid nature involving both a council censure process and personnel issues, which are subject to confidentiality requirements. The City Attorney confirmed that the process is still in early stages and that the public will be involved to the extent possible going forward.

Councilmember Jack urged the community to allow the process to proceed, affirming that all due process must be followed and that the community should be kept informed of next steps in a timely manner.

10. Adjournment
There being no further business, the regular meeting of the City Council of the City of Patterson of September 1, 2026 was adjourned at 8:21 p.m.

Approved by the Patterson City Council on (date pending).

CITY OF PATTERSON
City Council Special Closed Session Minutes
September 02, 2026

Present:

Councilmember Roque
Councilmember Hernandez
Councilmember Mora
Councilmember Jack

Absent:

Mayor Clauzel
City Staff:

City Manager Ulloa
Deputy City Attorney White

1. Call to Order
The special (closed) session meeting of the City Council of the City of Patterson was called to order in the City of Patterson, Council Chambers at 6:12 p.m. by Mayor Pro Tem Roque.

The City Council will adjourn to Closed Session to address the following:

1.1 Conference with Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to Gov. Code, § 54956.9(d)(2): Two (2) potential matters.

2. Statements of Conflict
None.

3. Items from the Public
Sheryll Lex, Patterson - addressed the City Council regarding the operation of the microphones in the Council Chambers.

4. Adjourn to Closed Session
At 6:14 p.m. there being no further items from the public, the Patterson City Council adjourned to Closed Session.

5. Report from Closed Session (if any)
At 7:24 p.m. Deputy City Attorney White reported that the City Council had not concluded its consideration of the Closed Session items and that there was no reportable action at that time. The City Council would return to Closed Session following the Special Meeting.

6. Adjournment
There being no further business, the meeting of the City Council of the City of Patterson of September 2, 2026 was recessed to open session at 7:25 p.m.

Approved by the Patterson City Council on (date pending).

Present:

Councilmember Roque
Councilmember Hernandez
Councilmember Mora
Councilmember Jack

Absent:

Mayor Clauzel
City Staff:

City Manager Ulloa
Deputy City Attorney White
IT Manager Marty
City Clerk Alegre

CITY OF PATTERSON
City Council Special Meeting Minutes
September 02, 2026

1. Call to Order
The regular meeting of the City Council of the City of Patterson of September 2, 2026 was called to order in the City of Patterson at 7:27 p.m. by Mayor Pro Tem Roque.

2. Pledge of Allegiance

3. Statements of Conflict
None.

4. Items from the Public
Sheryll Lex - Asked for clarification regarding the censure process, including whether the Council had previously decided to move forward with censure, whether the action being considered that evening restarted or altered the process, whether the allegations involved criminal activity, and whether the process could result in the Mayor's removal from office.

Deputy City Attorney explained the process.

Mark Dizon - Expressed concerns regarding communication and transparency surrounding the censure process and the amount of information provided to the community. He questioned Councilmember Jack's previous recusal, Councilmember Hernandez's participation in the process while running for Mayor, and the timing and availability of information concerning the matter. He encouraged the City to improve communication and ensure information is accessible to the entire community.

Kandace Weyhrauch - Commented in support of taking the allegations and findings of the independent investigation seriously. The speaker discussed personal experiences with Mayor Clauzel, expressed support for individuals who raised allegations, and encouraged the decisionmaking bodies to consider the investigative findings. The speaker also questioned statements made by Mayor Clauzel regarding the amount of information he had received concerning the investigation.

Alyssa Homen - Expressed concerns regarding Councilmember Hernandez's participation in the censure process while she is a candidate for Mayor against Mayor Clauzel. She distinguished between a legal conflict of interest and the appearance of impartiality, citing provisions of the Councilmember Handbook concerning independence, fairness, and avoiding the appearance of impropriety. She requested that the Council consider a more neutral process or that Councilmember Hernandez not participate in the committee.

Councilmember Jack provided a comment regarding the reasons for her recusals.

Councilmember Hernandez asked legal to explain the timeline.

Angela Bodas - Expressed concerns regarding transparency and the City's communication with the public regarding the censure process. She questioned why, given the length of the investigation, a clearer explanation of the process and timeline had not previously been provided. She encouraged the City to clearly communicate the procedural steps, possible outcomes, and timeline to the community before proceeding further.

Mercedes Carter - Acknowledged the complexity of the matter and expressed appreciation for the City's efforts to conduct due diligence and follow the appropriate investigative process. She recognized the need to protect employee information and follow established procedures and suggested that the Council consider whether future amendments to the Councilmember Handbook could provide greater clarity regarding participation and conflicts in similar proceedings.

5. City Staff Reports

5.1 Discussion and Action regarding appointment of the Censure Rules Committee members.

Deputy City Attorney White reviewed his report.

At 8:07 p.m. Mayor Pro Tem Roque opened the item to public comments. There were no comments.

ACTION: Motion to appoint Councilmember Mora, Councilmember Hernandez, and Mayor Pro Tem Roque to the Censure Rules Committee to consider the written censure request regarding Mayor Clauzel was made by Councilmember Mora and seconded by Mayor Pro Tem Roque. Them motion carried 4-1-0.

Council Member Mora: Aye | Council Member Jack: Aye | Council Member Hernandez: Aye | Mayor Pro Tem: Aye

6. Adjournment
At 8:08 p.m. the City Council adjourn to closed session.

At 9:41 p.m. Mayor Pro Tem Roque reported the following:

First potential matter: No reportable action.

Second potential matter: By a vote of 3–0–1 (Council Members Mora and Hernandez and Mayor Pro Tem in favor; Council Member Jack abstaining), the City Council authorized the limited release of the independent investigation report to Mayor Clausell. The report was prepared by a third-party investigator and concerns allegations raised by employees and council members against Mayor Clausell, including claims of intimidation and excessive involvement in city operational matters.

The City Council further directed that the City Manager and City Attorney's office coordinate with Mayor Clausell so that he may view, but not copy, the report in person.

There being no further business, the meeting of the City Council of the City of Patterson of September 2, 2026 was adjourned at 9:43 p.m.

Approved by the Patterson City Council on (date pending).

CITY OF PATTERSON
City Council Special Closed Session Minutes
September 15, 2026

Present:

Councilmember Roque
Councilmember Hernandez
Councilmember Mora
Councilmember Jack
Mayor Clauzel

Absent:

City Staff:

City Manager Ulloa
Deputy City Attorney Pritchard

1. Call to Order
The special (closed) session meeting of the City Council of the City of Patterson was called to order in the City of Patterson, Council Chambers at 6:00 p.m. by Mayor Clauzel.

1.1 Public Employee Appointment (Gov. Code, § 54957) Title: Director of Public Works

1.2 Public Employee Appointment (Gov. Code, § 54957) Title: Assistant City Manager

1.3 Conference with Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to Gov. Code, § 54956.9(d)(1): One (1) potential matter

2. Statements of Conflict
None.

3. Items from the Public
None.

4. Adjourn to Closed Session
At 6:02 p.m. there being no items from the public, the Patterson City Council adjourned to Closed Session.

Mayor Clauzel left the meeting at 6:03 p.m. and did not return.

5. Report from Closed Session (if any)
At 7:14 p.m. Mayor Pro Tem Roque announced that there is no reportable action.

6. Adjournment
There being no further business, the special (Closed Session) meeting of the City Council of the City of Patterson of September 15, 2026 was adjourned at 7:14 p.m.

Approved by the Patterson City Council on (date pending).

Present:

Councilmember Roque
Councilmember Hernandez
Councilmember Mora
Councilmember Jack

Absent:

Mayor Clauzel
City Staff:

CITY OF PATTERSON
City Council Regular Meeting Minutes
September 15, 2026
City Manager Ulloa
Assistant City Manager Willett
City Attorney Pritchard
Finance Director Williams
Acting Recreation & Community Services Director Hernandez Fire Chief Hakola
Deputy Director of Public Works Barrera
IT Manager Marty
Police Chief Casey
Director of Engineering Rodriguez
City Clerk Alegre

1. Call to Order
The regular meeting of the City Council of the City of Patterson of September 15, 2026 was called to order in the City of Patterson at 7:15 p.m. by Mayor Pro Tem Roque.

2. Pledge of Allegiance

3. Statements of Conflict

None.

4. Proclamation

4.1 Proclamation-World Suicide Prevention Month (Mayor Clauzel) Mayor Pro Tem Roque presented the proclamation to Lindsay Neal and Shivaugn Alves.

5. Items from the Public
Danielle Morgart, representing the Office of Assemblymember Juan Alanis, provided a legislative update regarding bills authored by Assemblymember Alanis.

Tim Benefield, representing the Patterson Irrigator and Westside Community Action Network, announced that the newspaper would publish a special page in recognition of Suicide Prevention Month allowing community members to memorialize loved ones lost to suicide.

Amy Petrali, representing AFSCME Local 10, expressed concerns on behalf of represented City employees regarding alleged interactions between employees and an elected official. She requested that the City move the pending censure process forward and emphasized professional boundaries between elected officials and City employees.

Dominic Farinha commented regarding public trust, the Council-Manager form of government, appropriate boundaries between elected officials and staff, and accountability in public office.

Lila Ayala, Patterson High School student and ASB Activities Coordinator, requested Council consideration regarding fees associated with the Patterson High School Homecoming Parade and spoke regarding the parade's importance to students and the community.

Yolanda Magana, provided updates regarding the Broomsticks and Bubbling event, the Christmas Festival, and community events.

Kat Ritchie expressed concerns regarding treatment of City employees and boundaries between elected officials and City staff. City Manager Ulloa responded that Councilmembers should not direct staff and stated his preference that communications involving staff be directed through the City Manager's Office.

Councilmember Hernandez temporarily stepped away from the dais at 7:36 p.m. and returned at 7:40 p.m.

Martha Flemming expressed concerns regarding accessibility and roadway conditions for persons using wheelchairs and power chairs and also raised concerns regarding water quality.

Kandace Weyharuch, participating remotely, expressed concerns regarding the treatment of City employees and requested that the Council continue the censure process.

The City Attorney provided an update regarding the censure process and stated that staff intended to complete the process during the month, with a Rules Committee meeting being scheduled before the matter returned publicly to the Council.

Councilmember Hernandez thanked City employees and members of the public who spoke and commented on the importance of accountability, transparency, and respectful treatment of employees.

6. Consent Calendar
Items 6.2, 6.4, and 6.6 were removed from the Consent Calendar for separate discussion. At 7:53 p.m. public comment period was opened. There being no public comment on the remaining Consent Calendar items, the Council considered Items 6.1, 6.3, and 6.5.

Motion to approve Consent Calendar Items 6.1 6.3, and 6.5 was made by Councilmember Jack and seconded by Councilmember Hernandez. The motion carried 4-0.

ACTION: The City Council approved Consent Calendar Items 6.1, 6.3, and 6.5.

6.2 Approve the Closed Session, Regular Meeting, and Special Meeting Minutes of August 10, 2026, August 13, 2026, August 18, 2026, August 21, 2026.

Kat Ritchie raised concerns about a combined infrastructure project, the 9th Street Improvements and Area 6B Water Main Replacement, appearing in the minutes, questioning whether City Council had formally authorized the consolidation of the two projects and whether a public presentation had been made prior to the item being placed on the Consent Calendar.

The City Attorney clarified that the minutes are a record of actions taken at prior meetings and that no specific error in the minutes had been identified. The City Attorney further noted that concerns regarding the project authorization process should be addressed separately, and that staff could be directed to provide a clarification. Mayor Pro Tem Roque requested that staff schedule a meeting to address the matter. Councilmember Mora confirmed approval of the minutes was appropriate, contingent on follow-up on the substantive concern.

Motion to approve Consent Calendar Item 6.2 was made by Councilmember Jack and seconded by Councilmember Mora. The motion carried 4-0.

ACTION: The City Council approved Consent Calendar Item 6.2

6.4 Approve City Commission Reports for the Month of August 2026 (Parks, Recreation & Beautification Commission and Senior Commission)
Councilmember Hernandez requested that the process for monthly reporting by the Parks, Recreation and Beautification Commission and Senior Commission be reviewed at a future Council meeting.

Motion to approve Consent Calendar Item 6.4 was made by Councilmember Hernandez and seconded by Councilmember Mora. The motion carried 4-0.

ACTION: The City Council approved Consent Calendar Item 6.4

6.6 Approve Street Closures of W. Las Palmas Ave, 7th Street and Plaza Circle for Patterson High School Homecoming Parade, Downtown on Friday, October 16, 2026 Councilmember Mora pulled the item to discuss the fees associated with the Patterson High School Homecoming Parade and opportunities for greater collaboration between the City and Patterson Joint Unified School District. Staff explained that the charges reflected the City's adopted costrecovery practices and actual costs, including staff labor and administrative costs.

Council expressed support for preserving the longstanding community tradition while also maintaining an equitable process for City costs and fee waivers. The City Attorney advised that Council could approve the requested road closure as presented while directing staff to work with the School District regarding possible coordination, fee reduction, waiver, or reimbursement.

Patterson High School students and members of the public spoke in support of the Homecoming Parade and requested that the City consider reducing or waiving the associated fees, emphasizing the parade's longstanding community-wide benefit.

Staff also advised that a broader sponsorship and fee-waiver policy was being developed for future Council consideration.

Motion to approve Consent Calendar Item 6.6 as presented, with direction to staff to immediately explore a collaborative fee arrangement with the Patterson Unified School District, was made by Councilmember Mora and seconded by Councilmember Jack. The motion carried 4-0.

ACTION: The City Council approved Consent Calendar Item 6.6

6.1 Motion to Waive Readings – All Reading of Ordinances and Resolutions, Except by Title are hereby waived.

6.2 Approve the Closed Session, Regular Meeting, and Special Meeting Minutes of August 10, 2026, August 13, 2026, August 18, 2026, August 21, 2026.

6.3 Approve City Department Reports for the Month of August 2026 (Engineering, Finance, Fire, Public Works, and Recreation and Community Services).

6.4 Approve City Commission Reports for the Month of August 2026 (Parks, Recreation and Beautification Commission and Senior Commission).

6.5 Approve Street Closure on 9th St between W. Las Palmas Ave. and Ward Ave. for the Walk for Childhood Cancer Awareness & Support event on Saturday, September 19, 2026.

6.6 Approve Street Closures on W. Las Palmas Ave, 7th Street and Plaza Circle for Patterson High School Homecoming Parade, Downtown on Friday, October 16, 2026.

7. Presentation/Action

7.1 Approve the Fire Department Organizational Realignment of Eliminating the Fire Prevention Inspector Position, Authorizing the Addition of One Assistant Fire Chief, Incorporating a Community Risk Reduction Division, and Approving the Assistant Fire Chief Job Description and Salary Range, and Revised Job Descriptions for Fire Marshal, Fire Administrative Manager, Code Enforcement Supervisor, Code Enforcement I and II, and Graffiti Abatement Technician, which includes a Title Change.

Fire Chief Hakola reviewed his his report and presentation.

Council discussed staffing, funding, code enforcement operations, graffiti abatement, proactive enforcement, and future fire inspection needs.

At 8:49 p.m. Item 7.1 was opened for public comment.

Public comment was received in support of the realignment, with community members raising questions regarding the placement of code enforcement under the Fire Department, vehicle abatement practices, and the proactive versus complaint-driven nature of code enforcement. Fire Chief Hakola and Police Chief Hill's representative affirmed close interagency collaboration. No council objections were raised.

At 9:05 p.m. public comment was closed.

Motion to approve the Fire Department Organizational Realignment, including elimination of the Fire Prevention Inspector position, creation of one Assistant Fire Chief position, formation of the Community Risk Reduction Division, and approval of all associated revised job descriptions and salary ranges was made by Councilmember Jack and seconded by Councilmember Hernandez. The motion carried 4-0.

7.2 Discussion and direction regarding the data center study and possible action regarding public participation in the study process.

Community Development Director Stice and the City Attorney's office presented an overview of the City's current regulatory posture on data centers and the scope of work undertaken since the moratorium was adopted.

Community Development Director Bryan Stice and the City Attorney presented an overview of the City’s current data center regulations and study efforts under the moratorium. Staff reported that Patterson currently permits data centers by right in industrial districts with limited standards, while comparable California regulations remain limited. Six key study areas were identified: water and wastewater, energy and infrastructure, public safety, environmental and health, land use and design, and community and fiscal effects.

The City Attorney advised that any future regulatory approach or ban must be supported by legally sufficient studies. Staff also noted that outside parties have expressed interest in submitting data center applications, though the moratorium currently bars them.

Council and public comment generally opposed data centers and supported strong public involvement. The Council favored an intensive public participation process, including a Citizen Advisory Committee and public workshops, and directed the staff to return with options for the committee’s structure, composition, and eligibility.

Direction was given to staff; no formal motion was required.

8. Public Hearing

8.1 Receive Update Regarding Proposed Liens for Unpaid Mistletoe Abatement and Determine that No further Action is Required.

Finance Director Williams reported that both property owners subject to proposed liens for unpaid mistletoe abatement costs had paid their outstanding balances in full since the public hearing notice was published. No further action was required.

At 10:35 p.m. Item 8.1 was opened for public comment. No public comment was received.

The Council received the update and took no further action.

9. City Council Items

9.1 Councilmember Hernandez

9.1.A Stanislaus Homeless Alliance (Councilmember Mora alternate)

9.1 B Stanislaus County Hazerdous Waste Advisory Committee (Councilmember Mora alternate)
No updates.

9.2 Councilmember Jack

9.2.A San Joaquin Valley Air Pollution Control District (Mayor Pro Tem Roque alternate) No updates.

9.3 Councilmember Mora

9.3.A Workforce Development Board (Mayor Pro Tem Roque alternate) No updates.

9.4 Mayor Pro Tem Roque

9.4.A (EDAC) Stanislaus County Economic Development Action Committee No updates.

9.5 Mayor Clauzel

10. Other Matters
Mayor Pro Tem Roque thanked those in attendance for their patience during the meeting and announced an upcoming community movie night in District D, on Ashwood Lane, from 5:00 p.m. to 10:00 p.m. He thanked City staff, community members, and Councilmembers who assisted with the event.

11. Adjournment
There being no further business, the regular meeting of the City Council of the City of Patterson of September 15, 2026 was adjourned at 10:38 p.m.

Approved by the Patterson City Council on (date pending).

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Diana Hernandez, Acting Director of Recreation & Community Services

MEETING
DATE:

October 6, 2026
ITEM: 6.3
SUBJECT : Approve Street Closure on S. Del Puerto Ave. from Plaza Circle to S. El Circulo Ave. for Patterson Night market event on Friday, October 23, 2026.

RECOMMENDATION
Motion to approve street closure on S. Del Puerto Ave. from Plaza Circle to S. El Circulo Ave. for Patterson Night Market event on Friday, October 23, 2026.

BACKGROUND
The applicants Danny Aguayo and Marco Ahumada from Destination Events, are requesting approval for a street closure to host a Night Market in Downtown Patterson. The request is closure of S. Del Puerto Ave. from Plaza Circle to S. El Circulo Ave. Mr. Aguayo has organized a variety of market- style events throughout the Central Valley and beyond, most recently he helped organize the Night Market in Tracy. The applicants are collaborating to bring a similar concept to Patterson while creating something specifically tailored to our community.

Their goal is to create a family – friendly evening that brings together local food, vintage and collectible vendors, small businesses, makers, artists, and live entertainment.

The request is as follows:

Event Date: Friday, October 23, 2026
Set up time: 1:00pm - 4:00pm
Event Time: 4:00pm -10:00pm
Dismantle: 10:00pm - 12:00am
Street Closure:

S. Del Puerto Ave. from Plaza Circle to S. El Circulo Ave.

Please refer to the attached maps.

ANALYSIS
The Event Coordinator has complied with submitting the following information:
 Special Event Application Fee – Paid
 Site Street Closure Event Maps
 Event Insurance – Pending
 Private Security Requirement - Pending
 Public Works Fees - Pending

PUBLIC WORKS FEES
Item Type Quantity
Price per
item Total
Encroachment Permit 1 198 198
City Staff Regular Call-Out (Labor Overtime) Rate of $253/hour x 4 hours 4 253 1012
Deposit Per Barricade 1 38 38
Barricades Delivery & Pick-up Charge 1 91 91
Charge Per Barricade 10 3 30
1/2 Ton Pick-up Trucks 2 15 30
Portable Waste Disposal Fee (8 Waste Totes) 1 85 85
Subtotal 1484
15% Public Works Administration Fee: 222.60
Total $1,706.60

FISCAL IMPACT
Special Event Application Fee + Late Fee 100.000.5476 $165 Public Works Encroachment Fee 100.000.5170 $198
City Staff Regular Call-Out (Labor Overtime) 100.000.5796 $1,012 Barricade Charge, Deposit, Delivery & Pick-up 100.000.5795 $189 & 1/2 Ton Pick-up Trucks
Portable Waste Disposable Fee (8 Waste Totes) 605.000.5331 $85 15% Public Works Administration Fee 100.000.5300 $222.60 Grand Total: $1,871.60

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Diana Hernandez, Acting Director of Recreation & Community Services

MEETING
DATE:

October 6, 2026
ITEM: 6.4
SUBJECT : Approve Street Closure on N. Del Puerto Ave., N. 3rd St., N. Salado Ave., W. Las Palmas Ave., S. Del Puerto Ave., S. 3rd St., S. Salado Ave.,and Plaza Circle

RECOMMENDATION
Motion to approve street closures for N. Del Puerto Ave., N. 3rd St., N. Salado Ave., W. Las Palmas Ave., S. Del Puerto Ave., S. 3rd St., S. Salado Ave. and Plaza Circle for Autumn in the Park community event on Saturday, November 7, 2026.

BACKGROUND
The Recreation & Community Services Department is requesting approval for street closures for Autumn in the Park community event on Saturday, November 7, 2026. This festival will highlight a variety of seasonal themes, including fall, Halloween, Dia de los Muertos, and the harvest season. Street closure will be handled by Public Works staff.

The request is as follows:

Event Date: Saturday, November 7, 2026
Set up time: 9:00am - 2:00pm
Event Time: 2:00pm -7:00pm
Dismantle: 7:00pm - 10:00pm
Street Closure:

From BMO Parking Lot on N. Del Puerto Ave. to Plaza Circle From BMO Parking Lot on N. 3rd St. to Plaza Circle
From the alley on N. Salado Ave. to Plaza Circle
From the alley on W. Las Palmas Ave. to Plaza Circle
From the alley on S. Del Puerto to Plaza Circle
From the alley on S. 3rd St. to Plaza Circle
From the alley on S. Salado Ave. to Plaza Circle
W. Las Palmas Ave. from N. 2nd St/HWY 33 to Plaza Circle Plaza Circle
Pleas refer to the attached site map.

ANALYSIS
Community Event – Supervisor has complied with providing the following information:
 Special Event Application
 Street Closure Site Map

FISCAL IMPACT
This event was included in the FY 26/27 budget in Recreation Special Events accounts.

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Johanna Ferriera, Program Manager

MEETING
DATE:

October 6, 2026
ITEM: 6.5
SUBJECT : Approval of a Professional Services Agreement with 65th North Group for the City Attorney Services Feasibility Study.

RECOMMENDATION
Motion to Approve a Professional Services Agreement with 65th North Group in an amount not to exceed $49,800 to conduct a City Attorney Services Feasibility Study and authorize the City Manager to execute the agreement.

BACKGROUND
The City currently contracts for City Attorney services. In 2026, the City Council directed staff to further evaluate alternative approaches for the delivery of legal services and authorized the issuance of a Request for Proposals (RFP) for an independent City Attorney Services Feasibility Study.

The purpose of the study is to provide the City Council with an independent and objective evaluation of potential legal service delivery models. The RFP requested an analysis of the City's current contracted legal services model, potential in-house staffing models, hybrid service delivery options, operational and organizational impacts, risk management considerations, and long-term financial implications.

The RFP was publicly posted on the City's website. In addition to the public posting, staff directly distributed the RFP to 10 organizations identified as providing services relevant to this type of study. Proposals were due June 30, 2026, and the City received four proposals in response to the solicitation.

Proposals were evaluated based on the criteria established in the RFP, including understanding of the project, relevant experience and qualifications, understanding of municipal legal service delivery, project approach and methodology, project team, cost, and references and past performance
On August 18, 2026, the City Council received an update regarding the RFP process and appointed Council Members Mora and Jack to participate in the consultant interview panel. All four firms were initally invited to participate in consultant interviews. Prior to the scheduled interviews, one firm withdrew from futher consideration. Interviews with the remaining three firms were conducted on September 9, 2026.

Following the proposal evaluation and interview process, 65th North Group was identified as the preferred consultant. Staff then completed reference checks, which were satisfactory.

ANALYSIS
Staff recommends approval of a Professional Services Agreement with 65th North Group to complete the City Attorney Feasibility Study for a fixed, all-inclusive fee of $49,800. 65th North Group specializes in operational, organizational, staffing, financial, and servicedelivery studies for public agencies. The firm's proposal includes experience conducting organizational and operational studies for local governments, including recent work involving the Marin County District Attorney's Office, as well as work for a number of other California public agencies. David Ross, President and CEO of 65th North Group, will serve as the project manager and remain directly involved throughout the engagement.

Under the proposed scope of work, 65th North Group will evaluate the City's contract, in-house, and hybrid legal service delivery models using a common framework that considers costs, responsiveness and access, specialized expertise, organizational capacity, and implementation risk. The consultant will independently validate and build upon the preliminary research already completed by City staff.

The study will include review of the City's existing legal services structure and expenditures; onsite stakeholder interviews; benchmarking of comparable California agencies; development of fully burdened financial models; evaluation of operational, organizational, and risk considerations; and development of recommendations and implementation considerations. The financial analysis will include first-year start-up costs, recurring annual costs, and a five-year comparison of the contract, in-house, and hybrid alternatives.

The final deliverables will include a draft and final feasibility study, financial comparison models, presentation materials, and an in-person presentation to the City Council. If continuation of contracted legal services is recommended, the study will also identify potential improvements to the City's existing service delivery model. If an in-house or hybrid model is recommended, the study will identify implementation and transition considerations. 65th North Group anticipates completing the study within approximately four months following notice to proceed.

FISCAL IMPACT
65th North Group has proposed a fixed, all-inclusive fee of $49,800 to complete the City Attorney Services Feasibility Study. The fee includes all project expenses, including travel, lodging, mileage, printing, and the final in-person City Council presentation.

The City included $75,000 in the FY 2026/27 budget for completion of the feasibility study. The proposed agreement is within the amount budgeted for this purpose.

ATTACHMENTS
Professional Services Agreement - 65th North Group

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

PROFESSIONAL SERVICES AGREEMENT

CITY OF PATTERSON
AND
65TH NORTH GROUP
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this ___ day of ___________ 2026, (the “Effective Date”) by and between the City of Patterson, a California municipal corporation (“City”), and 65th North Group (“Consultant”). City and Consultant may herein be referred to individually as a “Party” and collectively as the “Parties”.

There are no other parties to this Agreement.

RECITALS
A. City has determined to retain Consultant for professional services as needed for the City Attorney Services Feasibility Study (the “Project”).

B. Consultant has submitted a proposal to City that includes a scope of proposed consultant services, attached hereto and described more fully in Exhibit A (“Services”).

C. Consultant represents that it is qualified, willing, and able to provide the Services to City, and that it will perform Services related to the Project according to the rate schedule attached hereto and described more fully in Exhibit B (the “Rates”); for a total amount not to exceed Forty-nine Thousand Eight Hundred Dollars ($49,800.00), subject to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the promises and covenants set forth below, the Parties agree as follows:

AGREEMENT

1. Description of Work.
(a) Services. Consultant shall provide all labor, equipment, materials and supplies required to properly, adequately, and completely perform the Services described in Exhibit A, subject to the terms and conditions set forth herein. Consultant shall determine the method, details and means of doing the work or rendering the Services, however, Consultant shall not receive compensation for the performance of any services unless they are included in Exhibit A, or the Parties otherwise agree in writing.
(b) Modification of Services. The City Manager or his designee may authorize extra or changed work. Failure of Consultant to secure written authorization for extra or changed work shall constitute a waiver of any and all right to an adjustment in the Rates, and Consultant shall be entitled to no compensation whatsoever for the performance of such work. Consultant

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

further waives any and all right or remedy by way of restitution or quantum meruit for any and all extra work performed without such express and prior written authorization of the City Manager.

2. Compensation. City’s total compensation to Consultant shall not exceed Forty-nine Thousand Eight Hundred Dollars ($49,800.00) unless Parties mutually agree otherwise in writing. City shall pay Consultant according to the fee schedule set forth in the Rates, as full remuneration for performance of the Services described in Exhibit A. Payments shall not exceed those specified in the Rates unless approved by City in writing. Consultant agrees to maintain a log of time spent in connection with performing the Services. On a monthly basis, Consultant shall provide City, in reasonable and understandable detail, a description of the Services rendered pursuant to the Services and in accordance with the Rates (“Invoice”). If the work is satisfactorily completed, City shall pay Consultant by the last business day of each month according to the fee schedule set forth in the Rates. If City disputes any portion of any invoice, City shall pay the undisputed portion within the time stated above, and at the same time advise Consultant in writing of the disputed portion.

3. Term. This Agreement shall become effective on the Effective Date and will continue in effect for a duration of twelve (12) months unless terminated earlier as provided below (the “Term”).
(a) Termination. Either party may terminate this Agreement prior to the expiration of the Term, without cause or reason, by notifying the other. Upon receipt of such notice, Consultant shall immediately cease performing the Services. If this Agreement is terminated prior to the expiration of the term:
i. If City terminates this Agreement before Consultant commences any Services hereunder, City shall not be obligated to make any payment to Consultant. If City terminates this Agreement after Consultant has commenced performance under this Agreement, City shall pay Consultant the reasonable value of the Services rendered by Consultant pursuant to this Agreement prior to termination of this Agreement. City shall not in any manner be liable for Consultant’s actual or projected lost profits had Consultant completed the Services. Consultant shall furnish to City such financial information that, in the judgment of the City Manager, is necessary to determine the reasonable value of the Services rendered by Consultant prior to termination.
ii. Except as provided in this Agreement, in no event shall City be liable for costs incurred by or on behalf of Consultant after the date of the notice of termination. (b) Termination for Cause. Notwithstanding the provision above, this Agreement may be terminated by City for cause based on the loss or suspension of any licenses, permits, or registrations required for the continued provision of the Services, or Consultant’s malfeasance.

Termination of the Agreement for cause as set forth in this Section shall relieve City from compensating Consultant.

4. Ownership of Work and Property of City. Any and all work, artwork, copy, posters, billboards, photographs, diagrams, surveys, source codes, professional or technical information or data, notes, letters, emails or any original works of authorship created by Consultant or its subcontractors in

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

connection with Services performed under this Agreement (“Products”) shall be work for hire as defined under Title 17 of the United States Code, and all copyrights in such works are the property of City. In the event it is ever determined that any Product created by Consultant or its subcontractors, or subcontractors under this Agreement, are not works for hire under U.S. law, Consultant hereby assigns all copyrights to such Products to the City.

The following will be considered and will remain the property of City:
(a) Documents. All reports, drawings, graphics, working papers and Confidential Information furnished by City in connection with the Services (“Documents”).

Nothing herein shall be interpreted as prohibiting or limiting City’s right to assign all or some of City’s interests in the Documents.
(b) Data. All data collected by Consultant and produced in connection with the Services, which are final work products including, but not limited to, drawings, plans, specifications, models, flow diagrams, visual aids, calculations, and other materials (“Data”). This provision expressly excludes Consultant’s working notes and drafts, which shall be owned by Consultant, not City. Nothing herein shall be interpreted as prohibiting or limiting City’s right to assign all or some of City’s interests in the Data it owns. (c) Data Reuse. City shall not be limited in any way in its use or reuse of the documents, data, and materials or any part of them at any time for purposes of the project covered under this Agreement, or another project. Notwithstanding the foregoing, Consultant shall not be liable for claims, liabilities, or losses arising out of the or connected with the modifications or misuse by City of machine-readable information and data provided by Consultant under this Agreement. Further, Consultant is not liable for claims, liabilities, or losses arising out of or connected with any use by City of the project documentation on other projects. Consultant shall be responsible and liable for its documents, data, and materials pursuant to the terms of this Agreement, only with respect to the condition of the documents, data, and materials at the time they are provided to the City upon completion, suspension, abandonment, or termination.

Consultant shall not be responsible or liable for any revisions to the documents, data, and materials made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.
(d) Delivery of Documents and Data. Consultant agrees, at its expense and in a timely manner, to return to City all Products, Documents, and Data upon the conclusion of the Term or in the event of Termination.

5. Duties of City. In order to permit Consultant to render the Services required hereunder, City shall, at its expense and in a timely manner: (i) provide such information as Consultant may reasonably require to undertake or perform the Services; (ii) promptly review any and all documents and materials submitted to City by Consultant in order to avoid unreasonable delays in Consultant’s performance of the Services; and (iii) promptly notify Consultant of any fault or defect in the performance of Consultant’s Services hereunder.

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

6. Representations of Consultant. City relies upon the following representations by Consultant in entering into this Agreement:
(a) Qualifications. Consultant represents that it is qualified to perform the Services and that it possesses the necessary licenses, permits and registrations required to perform the Services or will obtain such licenses or permits prior to the time such licenses or permits are required. Consultant represents and warrants to City that Consultant shall, at Consultant’s sole cost and expense, keep in effect or obtain at all times during the Term of this Agreement, any licenses, permits, and registrations that are legally required for Consultant to practice Consultant's profession at the time the Services are rendered.
(b) Consultant Performance. Consultant represents that all Services under this Agreement shall be performed in a professional manner and shall conform to the customs and standards of practice observed on similar, successfully completed projects by specialists in the Services to be provided. Consultant shall adhere to accepted professional standards as set forth by relevant professional associations and shall perform all Services required under this Agreement in a manner consistent with generally accepted professional customs, procedures, and standards for such Services. Consultant shall ensure compliance with all applicable federal, state, and local laws, ordinances, regulations, and permits, including but not limited to federal, state, and county safety and health regulations. All work or products completed by Consultant shall be completed using the best practices available for the profession. Consultant agrees that, if a Service is not so performed in the discretion of the City, in addition to all of its obligations under this Agreement and at law, Consultant shall re-perform or replace unsatisfactory Service at no additional expense to City.

7. Independent Contractor; Subcontracting. Consultant will employ, at its own expense, all personnel reasonably necessary to perform the Services. All acts of Consultant, its agents, officers, employees, and all others acting on behalf of Consultant relating to this Agreement will be performed as independent contractors. Consultant, its agents, and employees will represent and conduct themselves as independent contractors and not as employees of City. Consultant has no authority to bind or incur any obligation on behalf of City. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement, to bind City to any obligation whatsoever. Consultant is authorized to subcontract polling work, with a firm of Consultants choosing under this Agreement, but is prohibited from subcontracting any other part of this Agreement unless such subcontracting is expressly approved by City in writing.

8. Insurance. Consultant and all of Consultant’s contractors and subcontractors shall obtain and maintain insurance of the types and in the amounts described in this paragraph and its subparagraphs with carriers reasonably satisfactory to City. (a) General Liability Insurance. Consultant shall maintain occurrence version commercial general liability insurance or an equivalent form with a limit of not less than Two Million Dollars ($2,000,000) per claim and Two Million Dollars ($2,000,000) for each occurrence.

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

(b) Workers’ Compensation Insurance. Consultant shall carry workers’ compensation insurance as required by the State of California under the Labor Code. Consultant shall also carry employer’s liability insurance in the amount of One Million Dollars ($1,000,000.00) per accident, with a One Million Dollar ($1,000,000.00) policy limit for bodily injury by disease, and a One Million Dollar ($1,000,000.00) limit for each employee’s bodily injury by disease.
(c) Automobile Liability. Consultant shall maintain automobile liability insurance with coverage for any vehicle, including those owned, leased, rented, or borrowed. The limit amount for this insurance shall be no less than $1,000,000 per occurrence, combined single limit for bodily injury and property damage.
(d) Errors and Omissions Liability. Consultant shall carry errors and omissions liability insurance in the amount of no less than One Million Dollars ($1,000,000.00) per claim or greater if appropriate for the Consultant's profession. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, elected and appointed councils, commissions, directors, officers, employees, agents, and representatives (“City’s Agents”); or the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claims administration and defense expenses.

If the Professional Liability (Errors and Omissions) insurance policy is written on a claims-made form:
• The retroactive date must be shown and must be before the effective date of the Agreement or the commencement of work by Consultant.
• Insurance must be maintained, and evidence of insurance must be provided for at least a three (3) year discovery period.
• If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a retroactive date prior to the effective date of the Agreement or the commencement of work by CONSULTANT, CONSULTANT must purchase “extended reporting” coverage for a minimum of three (3) years after completion of the Agreement work or termination of the Agreement, whichever occurs first. • A copy of the claims reporting requirements must be submitted to CITY for review. • These requirements shall survive expiration or termination of the Agreement. (e) Waiver of Subrogation. With the exception of errors and omissions liability insurance, Consultant hereby agrees to waive subrogation which any insurer of Consultant may acquire from Consultant by virtue of the payment of any loss. The general liability policy and workers' compensation policy shall be endorsed to contain a waiver of subrogation in favor of City for all work performed by Consultant, its agents, employees, independent contractors, and subcontractors. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation.
(f) Other Insurance Requirements. Promptly upon execution of this Agreement and prior to commencement of any work, Consultant shall provide City with certificates of insurance evidencing that all insurance and endorsements required by this Agreement have been

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

obtained and are in full force and effect. Approval of the insurance by City shall not relieve or decrease any liability of Consultant. In addition, in the event any change is made in the insurance carrier, policies, or nature of coverage required under this Agreement, Consultant shall notify City prior to making such changes. With the exception of the workers’ compensation and errors and omissions liability insurance, all of the insurance policies required in this Agreement shall:
i. Provide that the policy will not be cancelled, allowed to expire, or materially reduced in coverage without at least thirty (30) days’ prior written notice to City of such cancellation, expiration, or reduction, and each policy shall be endorsed to state such; ii. Name City, and City’s Agents as additional insured with respect to liability arising out of Services, work, or operations performed by or on behalf of Consultant; iii. Cover products and completed operations of Consultant, premises owned, occupied, or used by the Consultant, or automobiles owned, leased, or hired or borrowed by the Consultant; contain no special limitation on the scope of protection afforded to City; iv. Be primary with respect to any insurance or self-insurance programs covering City or City’s Agents and any insurance or self-insurance maintained by City or City’s Agents shall be in excess of Consultant’s insurance and shall not contribute to it; v. Contain standard separation of insured provisions; and vi. State that any failure to comply with reporting or other provisions of the policy including breaches or warranties shall not affect the coverage provided to City. (g) Material Breach. If Consultant, for any reason, fails to maintain insurance coverage that is required pursuant to this Agreement, such failure shall be deemed a material breach of this Agreement. City, at its sole option, may terminate this Agreement and obtain damages from Consultant resulting from said breach. Alternatively, City may purchase such required insurance coverage, and without further notice to Consultant, City may deduct from sums due to Consultant any premium costs advanced by City for such insurance. These remedies shall be in addition to any other remedies available to City.

9. Indemnification. To the fullest extent permitted by law (including, without limitation, California Civil Code sections 2782 and 2782.8), Consultant agrees to defend with legal counsel reasonably acceptable to City, indemnify and hold harmless City, its officers, agents, and employees from any and all claims, demands, costs, obligations, loss, or liability of every kind, nature and description that arise out of, pertain to or relate to acts or omissions of Consultant, or any direct or indirect subcontractor, employee, contractor, representative or agent of Consultant, or anyone that Consultant controls (collectively “Liabilities)”. Such obligations to defend, hold harmless and indemnify City and City’s Agents shall not apply to the extent that such Liabilities are caused in whole by the sole negligence, active negligence, or willful misconduct of City or City’s Agents, but shall apply to all other Liabilities. With respect to third-party claims against Consultant, Consultant waives any and all rights of any type of express or implied indemnity against City and City’s Agents. Consultant will reimburse City for any expenditure, including

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

reasonable attorney fees, incurred by City in defending against claims that arise out of, pertain to, or relate to acts or omissions of Consultant, or any direct or indirect subcontractor, employee, contractor, representative or agent of Consultant, or anyone that Consultant controls. Consultant’s obligation to indemnify and hold City, its officers, agents, and employees harmless is not terminated by any requirement in this Agreement for Consultant to procure and maintain a policy of insurance.

10. Consequential Damages. Notwithstanding any other provision of this Agreement, in no event shall City or Consultant be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect or incidental damages, including, but not limited to, lost profits or revenue, arising out of or in connection with this Agreement or the Services performed in connection with this Agreement.

11. Litigation. In the event that either Party brings an action under this Agreement for the breach or enforcement hereof or must incur any collection expenses for any amounts due hereunder the prevailing Party in such action shall be entitled to its costs including reasonable attorney’s fees, whether or not such action is prosecuted to judgment.

12. Notices. Any notice or communication required hereunder between City or Consultant must be in writing and may be given either personally, by registered or certified mail (return receipt requested), or by Federal Express, UPS or other similar couriers providing overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the Party to whom it is addressed.

Notices given by registered or certified mail shall be deemed to have been given and received on the first to occur of (a) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, (b) on the date delivered as shown on a receipt issued by the courier, or (c) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered as shown on a receipt issued by the courier.

Any Party hereto may at any time, by giving ten (10) days' written notice to the other Party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the Parties at the addresses in this paragraph set forth below:

If to City: City of Patterson
1 Plaza, PO Box 667
Patterson, CA 95363
Attn: City Clerk
With courtesy copies to: City of Patterson
1 Plaza, PO Box 667
Patterson, CA 95363
Attn: City Manager
And to: White Brenner LLP
1414 K Street, 3rd Floor
Sacramento, California 95814
Attn: Douglas L. White, Esq.

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

If to Consultant: 65th North Group
2831 St. Rose Parkway
Henderson, NV 89052
Attn: David Ross

13. Confidentiality. Consultant understands and agrees that, in the performance of Services under this Agreement or in contemplation thereof, Consultant may have access to private or confidential information that may be owned or controlled by City and that such information may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to City (“Confidential Information”).

Consultant shall not, either during or after the Term, disclose to any third party any Confidential Information without the prior written consent of City. If City gives Consultant written authorization to make any such disclosure, Consultant shall do so only within the limits and to the extent of that authorization. Consultant may be directed or advised by the City’s Counsel on various matters relating to the performance of the Services on the Project or on other matters pertaining to the Project and, in such event, Consultant agrees that it will treat all communications between itself, its employees and its subcontractors as being communications which are within the attorney-client privilege.

Notwithstanding the foregoing, Consultant may disclose Confidential Information required to be disclosed under law, provided that, prior to disclosure, Consultant shall first give notice to City and make a reasonable effort to obtain a protective order requiring that City’s Confidential Information not be disclosed. This exception is limited to the extent disclosure is required under law.

14. General Provisions.
(a) Recitals. The recitals set forth above are true and correct and are hereby incorporated into and made part of this Agreement by this reference. In the event of any inconsistency between the Recitals and Sections 1 through 14 of this Agreement, Sections 1 through 14 shall prevail.
(b) Modification. No alteration, amendment, modification, or Termination of this Agreement shall be valid unless made in writing and executed by all of the Parties to this Agreement.
(c) Waiver. No covenant, term, or condition or the breach thereof shall be deemed waived, except by written consent of the Party against whom the waiver is claimed, and any waiver of the breach of any covenant, term, or condition shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant, term, or condition. (d) Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

such entities, persons, states or firms and that all former requirements necessary or required by the state or federal law in order to enter into the Agreement have been fully complied with. (e) Assignment. No Party shall assign, transfer, or otherwise dispose of this Agreement in whole or in part to any individual, firm, or corporation without the prior written consent of the other Party. Subject to the foregoing provisions, this Agreement shall be binding upon, and inure to the benefit of, the respective successors and assigns of the Parties. (f) Drafting and Ambiguities. Each Party acknowledges that it has reviewed, or has been provided the opportunity to review, this Agreement with its own legal counsel, and has freely entered into this Agreement. Any rule of construction that ambiguities are to be resolved against the drafting party does not apply in interpreting this Agreement. (g) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of California.
(h) Venue. Venue for any legal proceedings shall be in the Superior Court of California for the County of Stanislaus.
(i) Severability. If any term, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, the remainder of this Agreement shall remain in effect. (j) Counterparts. This Agreement may be executed simultaneously and in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.
(k) Audit. City shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify Consultant’s charges to City under this Agreement.
(l) Entire Agreement. This Agreement, together with its specific references, attachments and exhibits, constitutes the entire agreement of the Parties with respect to the subject matters hereof, and supersedes any and all prior negotiations, understandings and agreements with respect hereto, whether oral or written.
(m) Mandatory and Permissive. “Shall” and “will” and “agrees” are mandatory. “May” and “can” are permissive.
(n) Headings. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.
(o) Necessary Acts and Further Assurances. The Parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Agreement.

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

(p) Time is of the Essence. Time is of the essence in this Agreement for each covenant and term of a condition herein.

IN WITNESS WHEREOF, the Parties have executed this Agreement, which shall be effective as of the above-referenced Effective Date.

CITY:

CITY OF PATTERSON, a California municipal
corporation
By:

Fernando Ulloa, City Manager
Date:

CONSULTANT:
a LLC S corp.

By:

Name:

Date:

Approved as to Form:

Christina Pritchard, City Attorney
Attest:

Aracely Alegre
City Clerk
David Ross, President & CEO
September 16, 2026
65th North Group LLC

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65th North Group

EXHIBIT “A”

SCOPE OF SERVICES
City of Patterson - City Attorney Services Feasibility Study 65th North Group Page 3
We have reviewed the City’s RFP and Addendum No. 1. Our work plan addresses every component of the requested scope: review of existing contracts and expenditures; California benchmarking; compensation and staffing models; start-up and ongoing cost analysis; operational and workflow assessment; stakeholder engagement; risk-management considerations; evaluation of contract, in-house, and hybrid models; recommendations; draft and final reports; financial comparison models; and up to two presentations.

We will treat the City’s preliminary research as an important starting point, validate it independently, and build on it rather than duplicate it unnecessarily. The result will be a clear, defensible set of options for the City’s consideration.

Decision Framework
We will compare each legal-services model using a common decision framework. This makes the underlying tradeoffs visible and helps the City distinguish between costs, capabilities, risks, and desired service outcomes.

Decision Area Contract Model In-House Model Hybrid Model Cost structure Retainer, hourly, matterbased, and specialty-counsel costs
Fully burdened payroll,
benefits, systems, support,
and specialty counsel
Internal core cost plus
targeted external
specialty/legal overflow
support
Responsiveness
and access
Depends on contract design,
assigned attorney availability,
and escalation protocols
Direct access and closer dayto-day integration with
departments
Direct internal access for
core work with defined
external escalation paths
Specialized
expertise
Potentially broad external
bench, depending on contract
structure
Requires outside counsel for
specialized matters and
conflicts
Balances internal institutional
knowledge with continued
specialized outside counsel
Organizational
capacity
Requires clear internal
liaison, issue-routing, and
contract oversight
Requires recruiting,
supervision, administrative
support, technology, and
management structure
Requires deliberate allocation
of work, roles, billing controls,
and performance measures
Implementation
risk
Potentially lower transition
risk if improving an existing
arrangement
Highest start-up and
transition requirements
Moderate transition
requirements with flexibility to
phase internal capacity
City of Patterson - City Attorney Services Feasibility Study 65th North Group Page 4
Approach That Separates Our Team
Approach What It Means for the City
We examine the full service
model
We will consider cost, service expectations, accessibility, specialized expertise, workflow, risk, and implementation - not only the price of each option.

We differentiate core and
specialty work
We will identify legal work that may be reasonably performed in house and work that is better maintained with specialty counsel or conflict counsel.

We work on site when it adds
value
We will conduct the principal stakeholder interviews in Patterson so that the assessment reflects operational context and lived experience, not only documents and virtual discussions.

We deliver practical options Each recommendation will include implementation steps, sequencing, key decisions, operational prerequisites, and estimated financial impact.

We stay personally involved and
flexible
As a family-owned firm, our President & CEO and Senior Vice President remain engaged, accessible, and willing to adjust meeting formats and work methods to fit the City’s needs while preserving a rigorous decision-ready analysis.

Task 1: Project Initiation and Existing Conditions Review We will begin with a kickoff meeting with City leadership and the designated project manager to confirm the scope, decisions the City needs to make, communication protocols, interview participants, requested reports, and schedule. We will then issue a focused data request that minimizes staff burden while providing the documentation necessary to evaluate legal-services costs, workload, service expectations, and capacity.

Our review will examine the current legal services structure; existing contracts and amendments; invoices and expenditures; the City’s preliminary research and salary benchmarking; matters handled internally versus by outside counsel; use of specialty counsel; Council and staff support expectations; and relevant policies, procedures, or communication protocols. We will identify information gaps early and confirm the baseline with City staff before comparing alternatives.

Why This Matters: A reliable existing-conditions baseline prevents the City from comparing dissimilar costs or overlooking functions that would still require outside counsel under an in-house model.

Deliverables
¨ Kickoff meeting agenda and summary
¨ Confirmed project schedule and communication plan
¨ Focused data request list
¨ Existing conditions summary and validated baseline assumptions City of Patterson - City Attorney Services Feasibility Study 65th North Group Page 5
Task 2: On-Site Stakeholder Interviews and Operational Assessment We will schedule one on-site visit to Patterson to conduct the principal stakeholder interviews. We will interview as many stakeholders as needed to ensure a thorough analysis. Potential participants may include the City Manager, Finance Director, department directors, riskmanagement personnel, staff who regularly coordinate with counsel, and others identified by the City. We will work with the City to establish the final list.

In-person interviews are generally more effective than virtual interviews for a study that will inform a significant governance and organizational decision. They provide a fuller discussion of responsiveness, accessibility, escalation practices, communication quality, workflow, public records support, development-related needs, risk issues, and the practical impact of legal service delivery on departments. We will use virtual meetings for follow-up discussions or where a participant’s availability makes that appropriate.

We will summarize themes and operational findings without attributing comments to individual participants, except when a specific attribution is appropriate and agreed upon. We will not request or include privileged communications, legal advice, or confidential litigation strategy in our analysis.

Why This Matters: The decision cannot be made from invoices and salary schedules alone. Stakeholder input shows how the current model functions in practice, where staff experience friction or delay, and what service standards are most important to the City.

Deliverables
¨ Interview plan and schedule
¨ Stakeholder interviews, principally completed on-site in Patterson ¨ Operational and workflow themes summary
¨ Service expectations and responsiveness findings
Task 3: Comparative and Benchmark Analysis
We will develop a comparator group of California cities and agencies with relevant similarities in population, service responsibilities, governance structure, development activity, organizational complexity, budget profile, and legal-service needs. The City’s preliminary comparator research will inform our selection, and we will confirm the final comparator group with City leadership.

The benchmarking process will compare the legal service delivery model used by each comparator, staffing structure, use of external counsel, estimated expenditures, service responsibilities, response practices, specialty counsel arrangements, administrative support, technology and research tools, and other factors that meaningfully affect cost and operational performance. We will supplement public information with direct outreach where practical and appropriate.

City of Patterson - City Attorney Services Feasibility Study 65th North Group Page 6
Why This Matters: A well-designed California comparator group provides context without treating another city’s structure as a one-size-fits-all answer. The value of benchmarking is in understanding why a model works in a particular operating environment and whether those conditions exist in Patterson.

Deliverables
¨ Confirmed comparator-city/agency list and selection rationale ¨ Comparative data request and research summary
¨ Side-by-side benchmark tables and charts
¨ Narrative analysis of applicable practices and service models Task 4: Financial and Compensation Analysis
We will develop fully burdened financial models for the contract, in-house, and hybrid alternatives.

The models will identify first-year start-up costs, recurring annual costs, and a five-year planning view under reasonable growth and escalation assumptions. We will clearly identify which inputs are directly supported by City information, which are benchmark-based, and which are planning assumptions requiring City confirmation.

Potential in-house and hybrid models will consider a range of staffing scenarios, including an inhouse City Attorney; assistant/deputy attorney capacity where warranted; paralegal/legal administrative support; and the internal City management structure necessary to support the function. The analysis will include salary, benefits, payroll taxes, retirement/other benefits where applicable, recruitment and onboarding, professional memberships, continuing education, legal research subscriptions, case/matter management, document management and technology needs, workstations, administrative support, insurance/risk considerations, and anticipated continuing specialty-counsel costs.

We will separately evaluate legal work typically retained by outside counsel, even when a city has in-house attorneys, including litigation, labor and employment, land use and development, environmental matters, public finance/bond counsel, conflicts, and highly specialized matters.

This distinction is essential to avoiding an unrealistic assumption that internal staffing would eliminate all external legal costs.

Why This Matters: A decision-ready financial comparison must capture total cost of service, not merely attorney salary or the current contract amount. The City will see both one-time transition needs and long-term operating implications for each model.

Deliverables
¨ Fully burdened in-house and hybrid staffing/compensation models ¨ Current contract cost baseline and projected cost model City of Patterson - City Attorney Services Feasibility Study 65th North Group Page 7
¨ Start-up, recurring, and specialty-counsel cost analysis ¨ Five-year financial comparison model with transparent assumptions Task 5: Service Model Development, Risk Assessment, and Recommendations We will evaluate multiple service-delivery scenarios and score them against the City’s priorities.

The analysis will assess the expected advantages, disadvantages, costs, risks, transition requirements, staffing needs, and governance implications of each option. We will identify the conditions necessary for a successful in-house or hybrid model and the safeguards needed for the City to retain or improve a contract model.

If continuation of contract legal services is the preferred option, we will recommend concrete improvements to the existing model. These may include clearer scope expectations, designated points of contact, response-time standards, regular status reporting, workload and matter tracking, special-counsel thresholds, billing transparency, performance expectations, communication protocols, annual review requirements, and governance/oversight mechanisms.

If an in-house or hybrid model is preferred, we will identify a phased implementation pathway that addresses recruitment, salary, and classification decisions; staffing sequence; technology; records and matter management; transition of open matters; contract wind-down; specialty counsel procurement; internal reporting relationships; and performance measures.

Why This Matters: The City will receive more than a recommendation. It will receive a practical pathway for implementing the preferred model or strengthening the current arrangement, with clear decisions, dependencies, and transition considerations.

Deliverables
¨ Three-model service delivery evaluation
¨ Risk, capacity, and implementation considerations
¨ Recommended service model and supporting rationale
¨ Implementation roadmap or contract-improvement framework Task 6: Draft Report, Final Report, and Presentations
We will prepare a comprehensive draft feasibility study report that presents the methodology, existing conditions, stakeholder themes, benchmarking results, financial models, scenario analysis, recommendations, and implementation considerations. We will meet with City leadership to validate accuracy and intent, incorporate appropriate feedback, and produce a final report with clear graphics, tables, and decision-ready summaries.

We will provide a virtual or in-person leadership presentation as requested, and we will complete the final City Council presentation in person.

City of Patterson - City Attorney Services Feasibility Study 65th North Group Page 8
Why This Matters: Clear presentation materials and an in-person Council discussion ensure the analysis is understandable to decision-makers and can be used directly to support a transparent public decision.

Deliverables
¨ Draft feasibility-study report
¨ Final feasibility-study report
¨ Financial comparison models in a usable spreadsheet format ¨ Presentation materials
¨ Presentations, including one final in-person City Council presentation Assumptions, Limitations, and Alternative Approach
This study is a feasibility assessment of management, operations, organization, and finance. We will not provide legal advice, legal opinions, or legal-sufficiency determinations, nor will we replace the role of the City Attorney or other licensed counsel. We will rely on City-provided records and publicly available information, validate key assumptions where practical, and clearly identify information limitations that affect the analysis. The City will need to provide the documents, information, and stakeholder access reasonably necessary for us to complete the agreed scope. We will provide a focused data request immediately after kickoff.

We recommend the on-site interview approach described above because it will yield a more robust assessment. The City may choose to conduct some follow-up meetings virtually, and we will accommodate that preference without changing the fixed fee. We do not propose a public survey as the primary engagement method because this assignment concerns internal legal service delivery, confidential operational considerations, and management expectations. If the City requests a limited-staff questionnaire to supplement interviews, we can include it in the base scope.

City of Patterson - City Attorney Services Feasibility Study 65th North Group Page 9
Proposed Project Schedule
We propose a four-month work plan beginning immediately after notice to proceed. The principal stakeholder interviews will take place on-site in Patterson during the first month, and the final City Council presentation will be delivered in person during the fourth month. The sequence keeps the operating, benchmarking, and financial analyses coordinated while allowing time to validate findings and incorporate City feedback.

Project Schedule Month 1 Month 2 Month 3 Month 4
Phase 1: Existing Conditions and On-Site Stakeholder Assessment (Tasks 1-2) Kickoff, focused data request, contract/expenditure
review, on-site stakeholder interviews, and
workflow/service assessment.

Phase 2: California Comparative and Benchmark Analysis (Task 3) Comparator research, data collection, and side-by-side
benchmark analysis.

Phase 3: Financial and Service-Model Analysis (Tasks 4-5) Fully burdened cost models, contract/in-house/hybrid
scenarios, risk review, recommendations, and
implementation considerations.

Phase 4: Draft, Final Report, and Presentations (Task 6) Draft report, City review, final report, presentation
materials, and final in-person City Council presentation.

PROFESSIONAL SERVICES AGREEMENT
City of Patterson and 65
th North Group

EXHIBIT B

COMPENSATION
City of Patterson - City Attorney Services Feasibility Study 65th North Group Page 13
Based on the full scope of work, the standard value of this engagement is $68,500. We are offering the City of Patterson a 27.3% discount of $18,700, resulting in a fixed, all-inclusive fee of $49,800. We want the City to use those cost savings to advance its own priorities.

Phase / Work Component
Project
Manager
Senior
VP Senior
Analyst
Research
& Data
Analyst
Total
Hours
Standard
Task Value
Phase 1: Existing Conditions and On-Site Stakeholder Assessment (Tasks 1-2) Kickoff, document review, on-site
interviews, workflow/service
assessment, and findings synthesis.
32 24 26 24 106 $20,590
Phase 2: California Comparative and Benchmark Analysis (Task 3) California comparator research, data
collection, and side-by-side analysis. 12 12 24 26 74 $13,110 Phase 3: Financial and Service-Model Analysis (Tasks 4-5) Fully burdened models, start-up and
recurring costs, specialty counsel
assumptions, service-model
scenarios, and implementation
roadmap.
37 31 44 30 142 $27,200
Phase 4: Draft, Final Report, and Presentations (Task 6) Draft and final report, presentation
materials, City review, and final inperson City presentation.16 6 6 10 38 $7,600 Total Hours 97 73 100 90 360 $68,500
Hourly Rate $250 $200 $175 $135
Standard Project Fee $68,500
City of Patterson Discount (27.3%) ($18,700)
Fixed, All-Inclusive Project Total $49,800
We will not charge the City for reimbursable expenses as this fee is all-inclusive. We believe it’s the right thing to do.

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Tiffany Rodriguez, Director of Engineering Services

MEETING
DATE:

October 6, 2026
ITEM: 6.6
SUBJECT : Approve Resolution No. 2026-59 Accepting the Public Improvements for the Salado Creek Trail Phase I Project as complete; Authorizing the City Clerk to file the Notice of Completion and commence the One-Year Warranty period.

RECOMMENDATION
Motion to Approve Resolution No. 2026-59 Accepting the Public Improvements for the Salado Creek Trail Phase I Project as complete; Authorizing the City Clerk to file the Notice of Completion and commence the One-Year Warranty period.

BACKGROUND
The City was originally awarded $1,808,145.00 from the State of California Natural Resources Agency (CNRA) for the construction of a new bike path along Salado Creek. Due to higher-thananticipated construction costs, the project experienced delays and was subsequently divided into phases. The City later secured an additional $242,117 in funding from CNRA, increasing the total CNRA funding award to $2,050,262.

Phase I generally consisted of construction of approximately 1,300 linear feet of asphalt concrete bicycle and pedestrian trail along American Eagle Avenue between Calvinson Parkway and Sperry Avenue. The existing concrete culvert beneath Sperry Avenue was modified to create a bicycle and pedestrian undercrossing, with masonry and concrete retaining walls constructed along the approaches to the undercrossing. The project also included the planting of 273 trees along the trail corridor and installation of the associated irrigation system to support the new landscaping.

Additional improvements included trail and undercrossing lighting, a new storm drain pump station, guardrail, signing and striping, and associated storm drain, concrete, electrical, and site improvements.

The project provides a dedicated bicycle and pedestrian connection along Salado Creek, improving connectivity between the residential areas near Calvinson Parkway and the Sperry Avenue corridor.

ANALYSIS
The City received a request from the Contractor, Sinclair General Engineering Construction, Inc for the Salado Creek Trail Phase I Project to be placed on the City Council agenda for acceptance of the Public Improvements associated with this project. City staff and the City's construction inspection representatives have performed inspections of the Public Improvements associated with the project and have determined that the project is ready for acceptance and recommends that the City Council accept the Salado Creek Trail Phase I Project as complete.

The City has collected the Warranty Bond for the Public Improvements from the Contractor. A notice of completion and resolution have been prepared and are attached for Council’s approval.

Once the project is accepted by the City Council as complete, the One-Year Warranty Period will begin, and the Notice of Completion will be recorded.

FISCAL IMPACT
There is no budget impact associated with this item. Final total project costs were within the allocated budget.

ATTACHMENTS
Resolution No. 2026-59
Notice of Completion
RESOLUTION NO. 2026-59

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON, ACCEPTING THE SALADO CREEK TRAIL PHASE I PROJECT AS COMPLETE;

AUTHORIZING STAFF TO FILE THE NOTICE OF COMPLETION AND

COMMENCE THE ONE-YEAR WARRANTY PERIOD
WHEREAS, the Contractor, “Sinclair General Engineering Construction, Inc.” has completed all the work for the Salado Creek Trail Phase I Project along American Eagle Avenue from Calvinson Parkway to Sperry Avenue in accordance with the contract requirements and plans and specifications; and
WHEREAS, the City received a request from the Contractor, Sinclair General Engineering Construction, Inc for the Salado Creek Trail Phase I Project to be placed on the City Council agenda for acceptance of the Public Improvements installed for this project; and WHEREAS, City staff and the City's construction inspection representatives have performed the necessary inspections on all the public improvements and certify that the Contractor has met the contract requirements; the City has received the Warranty Bond and recommended that the project be accepted as complete;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Patterson that it hereby accepts the project as complete, directs the City Clerk of the City of Patterson to file the Notice of Completion and release the Final Retention Payment for the Salado Creek Trail Phase I Project and commence the Warranty Period.

The foregoing resolution was passed by the City Council at a regular meeting held on the 6th day of October 2026, by _______________, who moved its adoption, which was duly seconded by ____________, and the resolution adopted by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:

___________________________
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
_____________________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 6th day of October 2026, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
______________________________________
City Clerk of the City of Patterson
Recording Requested By:

CITY OF PATTERSON
When Recorded Mail To:

City Clerk’s Office
City of Patterson
P.O. Box 667
Patterson, CA 95363
SPACE ABOVE THIS LINE FOR RECORDER’S USE

CITY OF PATTERSON

NOTICE OF COMPLETION
(Resolution Attached)
Notice is hereby given that:

1. The undersigned is a representative of the owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the owner is the City of Patterson.

3. The full address of the owner is 1 Plaza, Patterson, CA 95363.

4. The nature of the title of the owner is In Fee.

5. The work of improvement on the property hereinafter described was completed on October 6, 2026.

6. The name of the contractor for such work of improvement was Sinclair General Engineering Construction, Inc.

7. The nature of the work of improvement included construction of approximately 1,300-LF of asphalt concrete bicycle and pedestrian trail, electrical, storm drain, irrigation and landscaping improvements.

8. The property on which said work of improvement was completed is in the City of Patterson, County of Stanislaus, State of California, and is described as follows: Salado Creek Trail Phase I Project.

9. The street address of said property is _located along American Eagle Avenue from Calvinson Parkway to Sperry Avenue, Patterson, California 95363.

I, Tiffany Rodriguez, declare under penalty of perjury, under the laws of the State of California that the foregoing is true and correct.

Signing on behalf of City of Patterson
Dated: ____________ By
Tiffany Rodriguez, City Engineer
VERIFICATION:

I, Tiffany Rodriguez , the undersigned, declare under penalty, under the laws of the State of California that I am the owner, or agent to the owner, of the interest or estate in the property described in the above notice; that I have read the notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Executed on ________________________, at Patterson, California. (date)
Signing on behalf of City of Patterson
Tiffany Rodriguez, City Engineer, City of Patterson

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Tiffany Rodriguez, Director of Engineering Services

MEETING
DATE:

October 6, 2026.

ITEM: 6.7
SUBJECT : Approve Resolution No. 2026-60 Accepting the Public Improvements for the 2026 Slurry Seal Project as completed; Authorizing the City Clerk to file the Notice of Completion and commence the One –Year Warranty Period.

RECOMMENDATION
Motion to Approve Resolution No. 2026-60 Accepting the Public Improvements for the 2026 Slurry Seal Project as complete; Authorizing the City Clerk to file the Notice of Completion and commence the One-Year Warranty Period.

BACKGROUND
The project consisted of removing existing traffic striping and markings, crack sealing, applying Type II Slurry Seal, and restoring traffic striping and markings for approximately 120,00.00 Sq.

Yds. on various streets within the City of Patterson.

The use of slurry seal is a cost-effective pavement preservation treatment that helps extend the useful life of existing streets and reduces the need for more costly rehabilitation in the future.

ANALYSIS
The City received a request from the Contractor, American Pavement Systems, Inc., for the 2026 Slurry Seal Project to be placed on the City Council agenda for acceptance of the Public Improvements installed for this project. The City Engineer(s) and Department of Public Works staff have performed the necessary inspections on all the public improvements and certify that the Contractor has met the contract requirements and plan specifications of the Public Improvements.

The City has collected the Warranty Bond for the Public Improvements from the Contractor. A notice of completion and resolution have been prepared and are attached for Council’s approval.

Once the project is accepted by the City Council as complete, the One-Year Warranty Period will begin, and the Notice of Completion will be recorded.

FISCAL IMPACT
There is no budget impact associated with this item.

ATTACHMENTS
Resolution No. 2026-60
Notice of Completion

RESOLUTION NO. 2026-60

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON, ACCEPTING THE 2026 SLURRY SEAL PROJECT AS COMPLETE; AUTHORIZING STAFF TO FILE THE NOTICE OF COMPLETION AND COMMENCE THE ONEYEAR WARRANTY PERIOD WHEREAS, the Contractor, “American Pavement Systems, Inc.” has completed all the work for the 2026 Slurry Seal Project located within various streets in the City of Patterson in accordance with the contract requirements and plans and specifications; and WHEREAS, the City received a request from the Contractor, American Pavement Systems, Inc., for the 2026 Slurry Seal Project to be placed on the City Council agenda for acceptance of the Public Improvements installed for this project; and WHEREAS, the City Engineer(s) and Department of Public Works staff have performed the necessary inspections on all the public improvements and certify that the Contractor has met the contract requirements and plan specifications of the Public Improvements; the City has received the Warranty Bond and recommended that the project be accepted as complete; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Patterson that it hereby accepts the project as complete, directs the City Clerk of the City of Patterson to file the Notice of Completion and release the Final Retention Payment for the 2026 Slurry Seal Project and commence the Warranty Period.

The foregoing resolution was passed by the City Council at a regular meeting held on the 6th day of October 2026, by _______________, who moved its adoption, which was duly seconded by _________________, and the resolution adopted by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:

___________________________
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
___________________________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 6th day of October 2026, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
______________________________________
City Clerk of the City of Patterson
Recording Requested By:

CITY OF PATTERSON
When Recorded Mail To:

City Clerk’s Office
City of Patterson
P.O. Box 667
Patterson, CA 95363
SPACE ABOVE THIS LINE FOR RECORDER’S USE

CITY OF PATTERSON

NOTICE OF COMPLETION
(Resolution Attached)
Notice is hereby given that:

1. The undersigned is a representative of the owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the owner is the City of Patterson.

3. The full address of the owner is 1 Plaza, Patterson, CA 95363.

4. The nature of the title of the owner is In Fee.

5. A work of improvement on the property hereinafter described was completed on October 6, 2026.

6. The name of the contractor, for such work of improvements was American Pavement Systems, Inc.

7. The nature of the work of improvement was for the 2026 Slurry Seal Project.

8. The property on which said work of improvement was completed is in the city of Patterson, County of Stanislaus, State of California, and is described as follows: removal and replacement of traffic striping an markings, crack sealing and applying a Type II Slurry Seal.

9. The street address of said property is _in various locations within the City of Patterson, CA 95363.

I, Tiffany Rodriguez, declare under penalty of perjury, under the laws of the State of California that the foregoing is true and correct.

Signing on behalf of City of Patterson
Dated: ____________ By
Tiffany Rodriguez, City Engineer
VERIFICATION:

I, Tiffany Rodriguez , the undersigned, declare under penalty, under the laws of the State of California that I am the owner, or agent to the owner, of the interest or estate in the property described in the above notice; that I have read the notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Executed on ________________________, at Patterson, California. (date)
Signing on behalf of City of Patterson
Tiffany Rodriguez, City Engineer, City of Patterson

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Tiffany Rodriguez, Director of Engineering Services

MEETING
DATE:

October 6, 2026
ITEM: 6.8
SUBJECT : Approve Resolution No. 2026-61 Accepting the Public Improvements for the Sunset Court Improvements Project as complete: Authorizing the City Clerk to file the Notice of Completion and commence the One-Year Warranty.

RECOMMENDATION
Motion to Approve Resolution No. 2026-61 Accepting the Public Improvements for the Sunset Court Improvements Project as complete; Authorizing the City Clerk to file the Notice of Completion and commence the One-Year Warranty.

BACKGROUND
The Sunset Court Improvements Project is located along Sunset Court and intersects with Ward Avenue in the City of Patterson. The project consisted of construction of roadway improvements along Sunset Court in the City of Patterson. The work included installation of 175 linear feet of water main, valves, water services, fire hydrants, and related appurtenances. The project also included construction of one sewer manhole and connection of the existing sanitary sewer to the new manhole. Street improvements included removal and replacement of curb and gutter, sidewalk with subgrade, and one ADA curb ramp, valley gutter, aggregate base, hot mix asphalt concrete, and thermoplastic striping, markings, and markers. This project is an ongoing effort to maintain and improve roadway safety within the City of Patterson. All construction work was done within the City of Patterson right-of-way.

ANALYSIS
The City received a request from the Contractor, Platinum General Engineering, LLC for the Sunset Court Improvements Project to be placed on the City Council agenda for acceptance of the public improvements installed for this project. City staff have performed the necessary inspections on all the public improvements and certify that the Contractor has met the contract requirements.

The City has collected the Warranty Bond for the public improvements from the Contractor. A notice of completion and resolution have been prepared and are attached for Council’s approval.

Once the project is accepted by the City Council as complete, the One-Year Warranty Period will begin, and the Notice of Completion will be recorded.

FISCAL IMPACT
There is no budget impact associated with this item.

ATTACHMENTS
Resolution No. 2026-61
Notice of Completion
RESOLUTION NO. 2026-61

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON, ACCEPTING SUNSET COURT IMPROVEMENTS PROJECT AS COMPLETE;

AUTHORIZING STAFF TO FILE THE NOTICE OF COMPLETION AND

COMMENCE THE ONE-YEAR WARRANTY PERIOD
WHEREAS, the Contractor, “Platinum General Engineering, LLC.” has completed all the work for the Sunset Court Improvements Project along Sunset Court that intersects with Ward Avenue in accordance with the contract requirements and plans and specifications; and WHEREAS, the City received a request from the Contractor, Platinum General Engineering, LLC for the Sunset Court Improvements Project to be placed on the City Council agenda for acceptance of the public improvements installed for this project; and WHEREAS, the City Engineer(s) and Department of Public Works staff have performed the necessary inspections on all the public improvements and certify that the Contractor has met the contract requirements; the City has received the Warranty Bond and recommended that the project be accepted as complete;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Patterson that it hereby accepts the project as complete, directs the City Clerk of the City of Patterson to file the Notice of Completion and release the Final Retention Payment for the Sunset Court Improvements Project and commence the Warranty Period.

The foregoing resolution was passed by the City Council at a regular meeting held on the 6th day of October 2026, by _______________, who moved its adoption, which was duly seconded by _______________, and the resolution adopted by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:

___________________________
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
___________________________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 6th day of October 2026, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
______________________________________
City Clerk of the City of Patterson
Recording Requested By:

CITY OF PATTERSON
When Recorded Mail To:

City Clerk’s Office
City of Patterson
P.O. Box 667
Patterson, CA 95363
SPACE ABOVE THIS LINE FOR RECORDER’S USE

CITY OF PATTERSON

NOTICE OF COMPLETION
(Resolution Attached)
Notice is hereby given that:

1. The undersigned is a representative of the owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the owner is the City of Patterson.

3. The full address of the owner is 1 Plaza, Patterson, CA 95363.

4. The nature of the title of the owner is In Fee.

5. A work of improvement on the property hereinafter described was completed on October 6, 2026.

6. The name of the contractor, for such work of improvements was Platinum General Engineering, LLC.

7. The nature of the work of improvement was for the Sunset Court Project.

8. The property on which said work of improvement was completed is in the city of Patterson, County of Stanislaus, State of California, and is described as follows: removal and replacement of curb and gutter, sidewalk, construction of an ADA curb ramp, thermoplastic striping, markings, and markers and installation of a water main, valves, and water services.

9. The street address of said property is _located along Sunset Court in the City of Patterson, CA 95363.

I, Tiffany Rodriguez, declare under penalty of perjury, under the laws of the State of California that the foregoing is true and correct.

Signing on behalf of City of Patterson
Dated: ____________ By
Tiffany Rodriguez, City Engineer
VERIFICATION:

I, Tiffany Rodriguez , the undersigned, declare under penalty, under the laws of the State of California that I am the owner, or agent to the owner, of the interest or estate in the property described in the above notice; that I have read the notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Executed on ________________________, at Patterson, California. (date)
Signing on behalf of City of Patterson
Tiffany Rodriguez, City Engineer, City of Patterson

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Johanna Ferriera,Program Manager

MEETING
DATE:

October 6, 2026
ITEM: 7.1
SUBJECT : Valley Improvement Project Community Mural Funding Request

RECOMMENDATION
Provide direction regarding a request from Valley Improvement Project (VIP) for $10,000 in city funding for a community mural and select one of the following options:

1. Allocate $10,000 in city funding to VIP for the development and installation of a community mural.
2 Direct that the proposed VIP mural be completed within the city’s existing $20,000 mural allocation.

3. Take no action and provide no additional city funding for the proposed VIP mural.

BACKGROUND
The City Council has previously supported community mural projects as a means of enhancing public spaces and highlighting Patterson’s history, culture, and community identity.

In 2024, the City Council allocated $20,000 in American Rescue Plan Act (ARPA) funding for community mural projects. The city subsequently entered into an agreement with Love Patterson for the use of those funds for two community murals. To date, no funds have been disbursed under the agreement.

Valley Improvement Project (VIP) has approached the city requesting $10,000 in funding for a community mural in downtown Patterson. VIP’s proposed project is intended to create a community-driven mural highlighting Patterson’s history, culture, agricultural heritage, and community identity while providing opportunities for participation by local adult and student artists.

ANALYSIS
VIP proposes using $10,000 in city funding, supplemented by additional donations, to commission a lead artist and complete a community mural in downtown Patterson. The proposal includes a community engagement process, participation by local adult and student artists, development of a mural design for city review, and installation of the mural at an approved location.

According to the proposal, VIP and WeCAN would conduct a community listening session and provide an online opportunity for residents to submit ideas regarding potential themes and imagery. A lead artist would then work with VIP to incorporate community input into a proposed design. VIP also proposes recruiting up to five local adult and student artists to participate in the project under the direction of the lead artist.

The proposed mural would focus on elements of Patterson’s history and community identity, including the city’s agricultural heritage, cultural diversity, and development over time. The final design would be submitted to the city for review and approval prior to installation.

Before proceeding with installation, VIP would need to identify an appropriate location and obtain authorization from the property owner. Any agreement for city funding would establish requirements related to use of funds, property owner authorization and site control, city approval of the final design, project completion, financial reporting, mural maintenance, and the period of time the mural would be required to remain in place.

The City Council has three primary options regarding VIP’s request.

Option 1: Allocate an additional $10,000 to VIP
Under this option, the city would allocate an additional $10,000 to VIP for the development and installation of a community mural. This funding would be separate from the City’s existing $20,000 mural allocation.

VIP would be responsible for identifying an appropriate location, obtaining property owner authorization, completing the proposed community engagement and artist selection process, and submitting the final mural design for city approval.

Under this option, the city’s total funding allocated for community mural projects would increase from $20,000 to $30,000.

If Council selects this option, staff would return to City Council with a Memorandum of Understanding between the City and VIP and any necessary budget appropriation for consideration and approval.

Option 2: Complete the VIP mural within the existing $20,000 mural allocation Under this option, Council would direct that the proposed VIP mural be completed within the city’s existing $20,000 mural allocation rather than allocating an additional $10,000 for the project.

The city’s existing $20,000 mural allocation is currently subject to an agreement with Love Patterson for two community murals. No funds have been disbursed under that agreement to date. Implementation of this option would therefore be subject to the terms and expiration of the existing agreement and any amendments or subsequent agreements necessary to carry out Council’s direction.

Under this option, the city’s total mural funding allocation would remain at $20,000.

Option 3: Take no action
Under this option, the city would not provide funding for the proposed VIP mural and would make no changes to the city’s existing $20,000 mural allocation or agreement.

FISCAL IMPACT
Option 1 would result in an additional city funding allocation, increasing the City’s total mural funding allocation from $20,000 to $30,000. If selected, staff will return to council with the necessary budget appropriation.

Options 2 and 3 would have no additional fiscal impact.

ATTACHMENTS
VIP Community Mural Overview
VIP Community Mural Community Outreach Form
VIP Community Mural Lead Artist Application

VALLEY IMPROVEMENT

PROJECT
October 10, 2026
Community Mural Funding Request
Funding Request
$10,000
Requested from VIP
• Community-driven mural in
downtown Patterson.
• Focus on Patterson history,
culture, agricultural heritage,
and community identity.
• Local adult and student artist
participation
• City review and approval of the
final design.

Existing Allocation = $20,000
• ARPA funding allocated in 2024 for 2 community murals • The city entered into an agreement with Love Patterson for the development of the 2 community murals
Mural Funding Context
Allocate an additional $10,000
Total city mural allocation increases to $30,000
City Council Direction
1 2 Use the existing $20,000 allocation
VIP mural would be completed within the existing mural funding, subject to the current agreement and any necessary changes
3 Take no action
No funding for the VIP mural and no change to the existing $20,000 allocation. *If Option 1 is selected, staff would return with an MOU and any necessary budget appropriation. *
Patterson Mural Project Overview
Valley Improvement Projects (VIP), Westside Community Action Network (WeCAN), CopaCali.

To: The City of Patterson, California
Location: US Bank

1. 13 Plaza Circle (wall facing W Las Palmas Avenue)
Target Wall: (see above)
Proposed Budget: $10,000 with additional donations

1. Executive Summary
Patterson’s downtown serves as the “heart” of our city, and is well-traveled by many locals and visitors alike, yet it currently features bland facades that do not reflect the vibrant, rich culture of our town. This proposal outlines a plan to transform a large highly-visible plain wall into an inspirational and monumental community mural.

By leveraging a $10,000 budget, this project will commission a lead artist, via an open application and interview process, to design and execute a public work of art through direct collaboration and mentorship of five local volunteer adult and student assistant artists using the feedback that is collected from the community online feedback form and two listening sessions (English and Spanish). This initiative will beautify a downtown aching for color, foster community pride and well-being, while honoring Patterson’s past and our futures’ potential.

2. Project Objectives
● Revitalize Downtown: Transform a prominent downtown region with a welcoming, visually appealing colorful landmark.
● Cultivate Community Pride: Engender a sense of ownership and connection, building positive mental-health among residents by involving them directly in the creative process.
● Honor Local Culture & History: Celebrate Patterson’s legacy and cultural heritage through meaningful visual storytelling.
● Mentorship & Artistic Development: Provide a platform for local student and adult artists to gain hands-on experience working alongside a professional muralist.

3. Site and Property Details
● Location:
○ 13 Plaza Circle (wall facing W Las Palmas Avenue)
● Property Status & Site Control: Upon the city's preliminary approval of this proposal, the project organizers will transition this verbal agreement into a formal, legally binding easement/property-use contract, ensuring the mural remains preserved for an agreed-upon duration and meets any other criteria.
○ US Bank, Patterson Branch Management and Corportate have approved this location

4. Community-Driven Process
To ensure the mural authentically reflects Patterson, the design process will be highly collaborative:
● Phase 1: Public Input
○ Lead Artist: The lead artist will be chosen through an “Artist Call” where any local-regional experienced muralist may apply with the online application.The stearing committee will interview and select the muralist using a rubric. ○ Community Feedback: Feedback will be collected in a variety of ways. ■ Online Input Form: Community members will provide their input with a Google Form that includes various multiple-choice and open-ended questions, including the opportunity to provide images of inspirational artwork. (English and Spanish)
■ In-Person Listening Sessions (2): Two listening sessions will be held where the lead artist, along with the steering committee will host and gather feedback. (Translation provided)
■ Feedback and ideas not used directly with this mural will be saved for future reference for additional mural opportunities.
● Phase 2: Local Artist Integration: The lead artist, along with the steering committee, will recruit and select up to five local adult and student artist assistants. ● Phase 3: Design Development: Incorporating community feedback, the artist will draft a design concept to be reviewed by the City, the property owners, and steering committee.
● Phase 4: Collaborative Execution: The lead artist will outline the design on the wall, directing local student and adult apprentices in painting sections of the mural. This collective effort maximizes budget efficiency while building local creative capacity.

This project will incorporate a variety of groups and individuals throughout the process, such as:

Promotoras, Invest In Me, PHS Art Class (Mr. Tomesagovich), Rotary and others in different parts of the process.

5. Budget Breakthrough ($10,000)
The $10,000 budget will be strictly managed to cover all facets of production, safety, and compensation. Additional funds will be raised to supplement the project.

6. Impact on Patterson’s Downtown
Patterson is a city defined by its roots, its growth, its resilience, and its deep connection to the land and people that built it. Originally designed around a distinct, historic circular plaza, our downtown has long served as the heart of the community. However, as our city rapidly expands and welcomes new generations of residents, our public spaces need to evolve, too. Currently, our downtown faces a noticeable lack of public art—leaving our rich identity hidden behind blank brick and concrete.

The installation of a downtown mural is not just an aesthetic upgrade; it is a vital catalyst for revitalization. Public art has the unique power to transform empty walls into community anchors, turning standard walkways into vibrant cultural destinations. By investing in this mural, we are breathing new life into Patterson’s core, driving foot traffic to our beloved local businesses, and creating a welcoming environment that residents can feel proud of.

This artwork will serve as a visual bridge connecting our past, present, and future Art has the power to tell our story, activate our streets, and bring people together. By supporting this downtown mural, we are not just painting a wall—we are cultivating a more inclusive, beautiful, and economically vibrant Patterson. Together, let’s turn our downtown into a living gallery that honors where we come from and celebrates where we are going.

7. Next Steps & Timeline
Approximate Timeline Linked Here

1. City Approval: Update MOU approved by Parks and Recreation.

2. Legal Formalization: Finalize the written, legally binding agreement with the property owner.

3. Call for Artists & Selection: Steering committee to issue a Request for Proposals (RFP) for the lead artist (whom they will choose) and open applications for local student/adult assistants.

4. Community Engagement: Activate online feedback forms. Conduct public input workshops.

5. Design Approval: Present the final ROUGH sketch to the City and property owner for sign-off.

6. Mural Production: Prep the wall, paint, and apply a protective topcoat

7. Ribbon Cutting / Unveiling: A community celebration to honor the history of the site, the artists involved, and any contributing individuals and organizations.

Conclusion: The Downtown Patterson Mural Project is more than a coat of paint—it is an investment in our identity and quality of life. By transforming a plain wall, we are bringing life to our past and creating positive energy for our future.

1. 2.

3. 4.

Check all that apply.

Live / vivir
Work / trabajar
School / escuela
Visit / visitar
Other / otro
Patterson Mural Community Outreach
Help us shape the design for our upcoming mural in Downtown Patterson! Your input ensures this public artwork reflects the unique spirit, history, and people of our community, inspiring life through art - creating something beautiful for all to enjoy. ¡Ayúdanos a dar forma al diseño de nuestro próximo mural en el centro de Patterson! Tu opinión garantiza que esta obra de arte pública refleje el espíritu, la historia y las personas únicas de nuestra comunidad, inspirando vida a través del arte - creando algo hermoso para que todos lo disfruten.
* Indicates required question
First Name / Nombre de pila *
Last Name / Apellido *
Email *
Patterson is where I / Patterson es donde yo *
9/29/26, 8:36 AM Patterson Mural Community Outreach
https://docs.google.com/forms/d/1Tb3RfoiUPrvQGQzthq8eoecIv8PrIRDUJpYMnTI1FRA/edit 1/7

5. 6.

Other:

Check all that apply.
welcoming acogedor
historic histórico
vibrant vibrante
positive positivo
What makes our community special or unique to you? (local history, landmark places, natural landscapes, cultural traditions, notable figures) ¿Qué hace que nuestra comunidad sea especial o única para ti? (historia local, lugares emblemáticos, paisajes naturales, tradiciones culturales, figuras destacadas)
*
What overall mood or feeling should the mural evoke when someone walks or drives past it? (welcoming, historic, vibrant, reflective, energetic) choose all that apply
¿Qué estado de ánimo o sensación general debería evocar el mural cuando alguien camina o conduce junto a él? (acogedor, histórico, vibrante, reflexivo, enérgico) elige todas las opciones que correspondan
*
9/29/26, 8:36 AM Patterson Mural Community Outreach
https://docs.google.com/forms/d/1Tb3RfoiUPrvQGQzthq8eoecIv8PrIRDUJpYMnTI1FRA/edit 2/7

7. Check all that apply.
local flora and fauna / flora y fauna locales
key historical landmarks or buildings / lugares emblemáticos o edificios históricos clave cultural heritage and diverse traditions / patrimonio cultural y tradiciones diversas community history and agriculture/business / historia de la comunidad y agricultura/negocios
youth and future generations / juventud y futuras generaciones

8. Check all that apply.
warm and earthy tones
bright and bold colors
classic black and white
modern graphic design

9. Files submitted:

What specific subjects or elements would you like to see included in the artwork? ¿Qué temas o elementos específicos te gustaría ver incluidos en la obra de arte? *
What color palette or visual style do you feel best fits the location? (e.g., warm and earthy tones, bright and bold colors, classic black-and-white / historic, modern graphic design)
¿Qué paleta de colores o estilo visual crees que encaja mejor con el lugar? (p. ej., tonos cálidos y terrosos, colores brillantes y llamativos, clásico en blanco y negro / histórico, diseño gráfico moderno)
*
Do you have photos, artwork, or examples of other murals that inspire you? Upload any images or mockups you would like the design team to consider for reference. ¿Tienes fotos, obras de arte o ejemplos de otros murales que te inspiren? Sube cualquier imagen o maqueta que quieras que el equipo de diseño considere como referencia.
9/29/26, 8:36 AM Patterson Mural Community Outreach
https://docs.google.com/forms/d/1Tb3RfoiUPrvQGQzthq8eoecIv8PrIRDUJpYMnTI1FRA/edit 3/7

10. 11.

If you uploaded an image above, briefly describe what specific part of the image you like (e.g., the color scheme, the style of the figures, a specific symbol).

Si subiste una imagen arriba, describe brevemente qué parte específica de la imagen te gusta (p. ej., la combinación de colores, el estilo de las figuras, un símbolo específico).

Use this space to share any other thoughts on the mural you may have.

Utiliza este espacio para compartir cualquier otro comentario que puedas tener sobre el mural.
9/29/26, 8:36 AM Patterson Mural Community Outreach
https://docs.google.com/forms/d/1Tb3RfoiUPrvQGQzthq8eoecIv8PrIRDUJpYMnTI1FRA/edit 4/7

12. Mark only one oval.

Yes
No
Maybe
Zoom
Assistant Artist
Complete this section only if you are interested in applying to be a non-paid assistant artist.

This is an opportunity for volunteerism for those with different experience levels. Ages 16+ and must have reliable transportation to downtown.

13. 14.

15. Files submitted:

Will you be attending the in-person community mural outreach event to share your thoughts and learn more about the project (TBD)?
¿Asistirás al evento presencial de divulgación comunitaria sobre el mural para compartir tus opiniones y conocer más sobre el proyecto (por determinar)? *
Transportation & Availability: Do you have reliable transportation to and from the downtown site?
Physical Capability: Are you comfortable standing for extended periods, working outdoors in various weather conditions, or working on ladders if needed? Portfolio / Work Examples: What type of art do you enjoy creating most (e.g., sketching, digital design, canvas, graffiti, craft)? Note: Attach 2–3 photos of any recent work or sketches.
9/29/26, 8:36 AM Patterson Mural Community Outreach
https://docs.google.com/forms/d/1Tb3RfoiUPrvQGQzthq8eoecIv8PrIRDUJpYMnTI1FRA/edit 5/7

16. 17.

18. 19.

This content is neither created nor endorsed by Google.

Openness to Coaching: An apprenticeship involves learning new techniques and executing someone else's primary design. How do you feel about taking direction and adjusting your work based on feedback from the lead artists? Collaborative Spirit: Have you worked on a group project before (artistic or otherwise)? How do you divide tasks and handle working alongside peers? Interest in the Project: Why do you want to participate in this specific mural project? What does public art in our community mean to you? Personal Goals: What specific skills (e.g., paint mixing, wall prep, grid transfers, large-scale brushwork) are you hoping to learn or improve during this apprenticeship?
Forms
9/29/26, 8:36 AM Patterson Mural Community Outreach
https://docs.google.com/forms/d/1Tb3RfoiUPrvQGQzthq8eoecIv8PrIRDUJpYMnTI1FRA/edit 6/7

1. 2.

3. 4.

5. Patterson Mural Lead Artist Application
The Downtown Patterson Mural Project is seeking an experienced, vision-driven Lead Artist to design and execute a transformative public artwork in the heart of our community. This landmark project aims to bring inspiration and hope to our community with a beautiful display, while fostering artistic mentorship and community engagement.

As the Lead Artist, you will lead with the steering committee the creative process from initial concept through final completion. Responsibilities include incorporating local feedback gathered during a community listening session and online feedback forms, guiding and mentoring assistant artists/apprentices on-site, and managing project logistics, budget, materials, and timelines. We welcome artists with strong technical experience in large-scale exterior murals, a collaborative spirit, and a passion for community-centered public art. * Indicates required question
First Name *
Last Name *
Email *
Phone Number *
Social Media Handles
9/29/26, 8:37 AM Patterson Mural Lead Artist Application https://docs.google.com/forms/d/1oznJFVspUqY7QFSJOmq-glta2djlbX2Qb8Fq-h1IrYc/edit 1/5

6. 7.

8. 9.

What is your connection to or familiarity with Patterson? (local resident, work in the area, completed past projects nearby, or personal ties); how would your understanding of Patterson’s community, culture, or history inform your approach to this mural project?
*
Have you managed and completed large-scale outdoor public murals from concept through final sealing? Briefly explain your experience with wall preparation, equipment, and weatherproofing.
*
Do you have experience training, managing, or mentoring assistant artists or apprentices on project sites?
*
Describe a time you encountered budget constraints or unexpected site delays during a project. How did you adapt to deliver the project on schedule? *
9/29/26, 8:37 AM Patterson Mural Lead Artist Application https://docs.google.com/forms/d/1oznJFVspUqY7QFSJOmq-glta2djlbX2Qb8Fq-h1IrYc/edit 2/5

10. 11.

12. 13.

Have you created and managed itemized budgets for public art projects? (e.g., equipment rental, high-grade exterior paint, surface prep, artist stipend). *
How do you handle feedback and collaboration when working with municipal committees, community organizers, and local stakeholders? *
Provide an example of how you incorporated community input or historical/cultural themes into a final artwork design.
*
Please list up to 3 completed mural projects you have led. Include the location, approximate dimensions, year completed, and client or sponsoring organization. *
9/29/26, 8:37 AM Patterson Mural Lead Artist Application https://docs.google.com/forms/d/1oznJFVspUqY7QFSJOmq-glta2djlbX2Qb8Fq-h1IrYc/edit 3/5

14. Files submitted:

15. Mark only one oval.

Yes
No
This content is neither created nor endorsed by Google.

Include 2-5 images from the mural projects you described above. * Are you available to attend the in-person Community Listening Session on October TBH PM to gather input from local residents?
*
Forms
9/29/26, 8:37 AM Patterson Mural Lead Artist Application https://docs.google.com/forms/d/1oznJFVspUqY7QFSJOmq-glta2djlbX2Qb8Fq-h1IrYc/edit 4/5

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Tiffany Rodriguez, Director of Engineering Services

MEETING
DATE:

October 6, 2026
ITEM: 7.2
SUBJECT : Centennial Park Project Update and Design Direction

RECOMMENDATION
Receive a presentation regarding the Centennial Park Project, provide direction on the proposed park elements, and authorize community engagement activities to inform final design decisions.

BACKGROUND
Centennial Park has been planned as part of the City’s broader vision for the development of the civic area along West Las Palmas Avenue. The currently undeveloped site is intended to provide outdoor recreation opportunities, community-serving amenities, and gathering spaces.

To advance the development of Centennial Park, at the March 21, 2023 City Council meeting, City Staff was directed to issue a Request for Proposals (RFP) for the Centennial Park Conceptual Design, Final Design, and Community Center Preliminary Design. The RFP was advertised, and the contract was subsequently awarded to the Melton Design Group, Inc. (MDG) at the November 7, 2023 City Council meeting.

The project kickoff meeting was held in December 2023. As an initial step in the design process, City Staff and MDG reviewed the previously completed master plan and community input received during the prior workshop. Based on this review, MDG developed conceptual plan options with various park layouts.

The conceptual plan options were presented to City Council in May 2024, at which time Council provided valuable input for development of the final conceptual master plan. The final conceptual master plan that was approved by City Council at the December 2024 meeting was a collaboration of various layouts.

ANALYSIS
Following City Council’s approval of the conceptual master plan in December 2024, staff and MDG have continued to advance the project toward final design. Due to the anticipated construction costs, the project has been divided into multiple phases.

Phase 1A includes construction of the parking lot off 9th Street, four pickleball courts, two dualuse courts, and two tennis courts. Phase 1B will include the design and construction of the remaining park improvements, and Phase 2 will include the building.

As part of the ongoing design process, a special meeting was held with the Parks, Recreation, and Beautification Commission (PRBC) on September 22, 2026, to review specific park elements and receive recommendations for City Council consideration.

Funding has not yet been secured for construction of the park improvements. Staff continues to pursue grant opportunities to support implementation of the project. To date, the City has applied for the following grants; however, neither application was awarded funding:
• Proposition 68 Statewide Parks Program - $5,853,167 December 2019 • Urban Greening Grant - $5,000,000 June 2026
The City is seeking other grant funding opportunities and is currently working on a Statewide Park Grant Program.

Requesting City Council Action
As the project moves through final design, several park elements require additional direction before the plans can be finalized. At the September 22, 2026 PRBC meeting, commissioners reviewed these elements and provided recommendations for City Council consideration. Based on the Commission’s recommendations and staff’s review, staff is seeking City Council direction on certain design elements and authorization to obtain additional community input on others.

Park Elements

1. Pickleball and Tennis Courts
a. Multiuse Courts
i. Add basketball and striping
ii. Add futsal and striping
➢ Staff Recommendation: Include futsal as part of the recreation building programming. The basketball court is planned to be constructed as part of Phase 1B.

2. Court Fencing
a. The current design includes 8-foot perimeter fencing around the courts. Taller fencing, including 12-foot fencing, is used at some tennis and multiuse court facilities to provide additional ball containment.
➢ Staff Recommendation: Consider a 12-foot perimeter fence as a bid alternate for City Council consideration during the construction award process

3. Spray Ground Location
a. Request for Spray ground adjacent to playground
➢ Staff recommendation: Current layout to remain
Community Input

1. Playground
a. Staff recommends developing two playground concept options based on PRBC feedback for community voting and preference selection.

2. Spray Ground
a. Staff recommends developing two spray ground concept options based on PRBC feedback for community voting and preference selection.

3. Inclusive Fitness Elements
a. Gather community input regarding the inclusion and placement of fitness elements along the walking path.

4. Mural type
a. Gather community input on the preferred mural type, theme, and interactive art opportunities.

ATTACHMENTS
Power Point Presentation

CENTENNIAL PARK
UPDATE
October 6, 2026
Project Contributors
Project
Manager
City of Patterson
Tiffany Rodriguez, PE
City Engineer
Project
Designer
Melton Design Group
Greg Melton, PLA
Connor Melton, PE
Civil
Engineer
North Star
Engineering
Christian Grajeda, PE
Electrical
Engineer
Refik Electrical
Engineering
Steffan Kifer, PE
Presenters
Tiffany Rodriguez, PE Connor Melton, PE Greg Melton, PLA Agenda Overview
01 Design Process Timeline
02 03
04 Current Phase 1A Status
Phase 1B & 2 Vision
Park Element Recommendations
05 Funding
06 Project Timeline and Next Steps Moving Forward
07 Requesting City Council Action
Design Process Timeline To Date
01 Conceptual
Master Plan
Approved by City Council
December 3, 2024
Project Milestones to Date
• Feb. 2023: Scope Approved
• Mar. 2023: RFP Authorized
• Nov. 2023: Consultant
Selected
• May 2024: 3 Concepts
Reviewed
• Nov. 2024: Final Plan Received
• Dec. 2024: Council Meeting
• Flip tennis courts
• Rec center expansion
• Address stormwater retention
• Soundproof courts
• Court location
• Minimize space for hidden
gathering spaces
• Rental facilities
• Spray ground relocation
• Interpretive panels
Current Phase 1A Status
02 • Site Elements
• Construction
Existing
PAC
9th
Street
Site Elements
• Park entrance with sign • Utility infrastructure for
future phasing
• Shaded parking lot and
trash enclosure
• Electric vehicle
infrastructure
• Restroom/Storage area • Lighted pickleball/tennis
courts
• Shaded picnic area • Park planting • Open space drainage detention basins
• Drainage control per city
standard; 10-year 24-hour
storm, gravity discharge
Phase 1A
Construction
Construction Documents
 Master planning of total site
 Grant funding
 Maintain site outside proposed
area
Preliminary Phase 1A Estimate
• $5 - $7 million
Phase 1B & 2 Vision
03 • Phase Elements
• Estimate
Phase 1B: • Whole Site Buildout • Supporting Open Space • Future Amenities: • Stage • Restroom/Pumphouse Building
• Central Fountain • Interactive Spray Ground • Playground • Basketball Court • Picnic • Additional Parking • Centennial Interpretive Panels Phase 1B & 2 Preliminary
Estimate: • 3-5-year range • Total cost = $40
-$50 Million
9th Street
Existing
PAC
Phase 2 Recreation
Building • Café (Indoor/Outdoor seating) • Recreation Center with Gym Park Element Recommendations
04 • Parks Recreation & Beautification Commission
• Community Input
Parks, Recreation & Beautification Commission and
Community Input
Pickleball and Tennis Courts
• Recommendations from the PRBC
o Traditional blue court surface with green perimeter accents o Chain link fence verses Omega fencing and Sonic Guard was discussed, Omega Black fencing was preferred due to
safety features with the Sonic Guard
o Safety push bars/handles at all court gates
• PRBC Discussion Items
o Multiuse Courts
 Add Basketball
 Add Futsal Striping
o Court Access & Operations
 Hours under review
 Staff coordinating with Gustine and Newman
 Item to return to PRBC with recommendations to City Council for Approval o Current design includes 8-foot perimeter fencing.
 Consider a 12-foot fence as a bid alternate for Council review during construction award Play Structure
o Recommendations from the PRBC
o Nature castle, Spanish style with neutral colors
o Wide slides
o Inclusive playground that supports accessibility
for children of all abilities
o Provide a variety of swing options:
 Saucer
 Baby buckets
 ADA accessible swing
o Accessible Spinners and seesaws
o Interactive play elements
o Rubberized cushioned surfacing as the playground fall-protection material. o Concerns were raised regarding the temperature of the rubberized surfacing material; however, it was determined that this is not a significant concern.
o Long-term durability and maintenance requirements of the surfacing. Staff noted that the City's existing splash pad has not experienced notable issues, supporting confidence in the material's performance.

Parks, Recreation & Beautification Commission and
Community Input
Spray Ground
• Recommendations from the PRBC
o Spray ground to serve all age groups, including a designated quiet area o Ample shade structures throughout the spray ground
o Large tipping bucket feature along with a variety of spray elements o Tables and seating areas for families, caregivers, and spectators • Discussion Items
o Request for Spray ground adjacent to playground
 Staff recommends current layout to remain
Fitness Elements
• PRBC Discussion Items
o Placement and expected use of inclusive fitness elements to be placed along the path
o Shade structures and trees throughout the fitness area o City staff recommends including this element in the community survey Parks, Recreation & Beautification Commission and
Community Input
Community and Art Engagement
• Recommendations from the PRBC
o Mural preferred; should celebrate Patterson’s history, culture, and community
o Interactive community-focused art elements
o City staff recommends including this element in the
community survey to gather public input on preferred
themes, art styles, and interactive features
Parks, Recreation & Beautification Commission and
Community Input
Potential Community Outreach Meetings

1. Community Workshop
• PRBC October Meeting

2. Floating Pumpkin Patch
• October 17: Patterson Aquatic Center

3. Autumn in the Park
• November 7: Downtown Patterson

4. Glow-in-the-Dark Pickleball Tournament • November 14 & December 12: Walnut Grove Gym

5. Breakfast with Santa
• December 12: Hammon Senior Center

6. Parks, Recreation, and Beautification
Commission Presentation
• TBD

7. 2 Additional Community Outreach Opportunities
• Local volunteer organizations
Funding
05 Funding Efforts
$5,853,167
December 2019
$5,000,000
June 2026
$5,000,000
December 2026
Project Timeline and Next Steps Moving
Forward
06 Future Project Timeline
Community Outreach &
Recommendations from
PRBC
• Interpretive Panels
• Building Programming
• Entry Plaza at Ward & 9th
• Trees
Pickleball & Tennis Court
Access & Hours of
Operation
• Follow-up with Gustine &
Newman
Sept. 2026
• Residential outreach
• PRBC special meeting
Fall 2026
• Phase 1A bid-ready
• Grant applications
Early 2027: Phase 1B & 2 design programming
Fall 2027: Phase 1B & 2 bid-ready
Ongoing
• Community outreach
• Stakeholder coordination
TBD: Construction (contingent on funding)
Next Steps
Requesting City Council Action
07 Requesting
City Council
Action

1. Pickleball and Tennis Courts
• Multiuse Courts
• Add basketball and striping
• Add futsal and striping
 Staff Recommendation: Include futsal as part of the
recreation building programming. The basketball court
is planned to be constructed as part of Phase 1B.

2. Court Fencing
• The current design includes 8-foot perimeter fencing around the courts.
 Staff Recommendation: Consider a 12-foot perimeter
fence as a bid alternate for City Council consideration during the construction award process

3. Spray Ground Location
• Request for Spray ground adjacent to playground
 Staff recommends current layout to remain
Approval for the following park
elements:

Requesting
City Council
Action

1. Playground
• Staff recommends developing two playground concept
options based on PRBC feedback for community voting and preference selection

2. Spray Ground
• Staff recommends developing two spray ground concept
options based on PRBC feedback for community voting and preference selection

3. Inclusive Fitness Elements
• Gather community input regarding the inclusion and
placement of fitness elements along the walking path

4. Mural type
• Gather community input on the preferred mural type, theme, and interactive art opportunities
Approval for a Community Survey for
the following park elements :

Questions

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Christina M. Pritchard, Deputy City Attorney

MEETING
DATE:

October 6, 2026
ITEM: 8.1
SUBJECT : Approve First Reading and Introduction of Ordinance No. 891 reading by Title Only, Waiving Further Reading, an ordinance of the City Council of the City of Patterson approving the Amended and Restated Development Agreement Between the City of Patterson and Central Valley-Sierra Associates and South Cord Management LLC for Catalyst Cannabis Dispensary.

RECOMMENDATION
Motion to Approve First Reading and Introduction of Ordinance No. 891 reading by Title Only, Waiving Further Reading, an ordinance of the City Council of the City of Patterson approving the Amended and Restated Development Agreement Between the City of Patterson and Central Valley-Sierra Associates and South Cord Management LLC for Catalyst Cannabis Dispensary.

BACKGROUND
As detailed below, the City of Patterson (“City”), Central Valley-Sierra Associates (“CVSA”) and South Cord Management LLC (“South Cord”) have engaged in protracted discussions regarding CVSA’s operation of a cannabis dispensary in the City. These discussions eventually resulted in CVSA suing the City over disagreements for the operation of Catalyst Cannabis Dispensary. The present item, together with a companion item to consider approval of a settlement agreement among the City, CVSA, and South Cord, is intended to resolve that litigation.

Following consideration and recommendations from the Planning Commission (“Planning Commission”), on December 5, 2017, the City Council adopted Ordinance No. 812 approving a development agreement (the “Original Development Agreement”) for the operation of a cannabis dispensary business located at 100 West Las Palmas Avenue, Suite H, Patterson CA 95363, Assessor’s Parcel Number 131-003-015 (the “Site”). On December 21, 2017, the Planning Commission voted to adopt Resolution 2017-14, approving Conditional Use Permit No. 17-21 (the “CUP”), associated with CVSA’s application for a cannabis dispensary (the “Project”) to be located at the Site.

Section 4.2 of the Original Development Agreement required CVSA to pay to the City certain amounts to offset the impacts to City infrastructure, services, and neighborhoods, commensurate with the private benefits conferred on CVSA (the “Public Benefit Amount”), pursuant to the terms stated in Section 4.2 of the Original Development Agreement.

Between 2018 and 2022, CVSA did not comply with Section 4.2 of the Original Development Agreement’s requirement to make the Public Benefit Amount payments (the “Delinquent Public Benefit Amount”) by the agreed-upon terms, resulting in a default of the Original Development Agreement, pursuant to Sections 4.3 and 8.1(a). Discussions ensued between CVSA and the City in an attempt to resolve the Delinquent Public Benefit Amount. The parties were unable to reach an agreement before the Original Development Agreement expired by its own terms on January 4, 2022.

On or around January 2023, CVSA engaged a new company Catalyst Cannabis Company, owned by South Cord Management LLC to assist with operation and management of the Project. The City and South Cord engaged in further discussions regarding the Delinquent Public Benefit Amount or extension of the Original Development Agreement but again were unable to reach a resolution.

On July 13, 2023, the Planning Commission passed Resolution 2023-07 revoking the CUP for failure to comply with conditions of approval and Resolution 2023-06 recommending the City Council adopt an ordinance confirming the termination of the Original Development Agreement.

On July 14, 2023, CVSA timely appealed both resolutions of the Planning Commission.

On August 15, 2023, the City Council held a public hearing on CVSA’s appeal of the Planning Commission resolutions and a public hearing on the first reading of an Ordinance to confirm the termination of the Original Development Agreement. Both items were continued to the September 19, 2023, City Council meeting. During the September 19, 2023, meeting, the City Council resolved to deny CVSA’s appeal, approved the Planning Commission’s decision to revoke the CUP, and gave first reading of Ordinance 870 to confirm termination of the Original Development Agreement.

On September 20, 2023, CVSA filed a Verified Petition for Writ of Mandamus and Complaint in the Superior Court, Stanislaus County, titled Central Valley – Sierra Associates v. City of Patterson, Case No. CV-23-005444, against the City challenging the City’s revocation of CVSA’s CUP and the legality of the Public Benefit Amount payments (the “Action”).

In the Action, CVSA applied to the court for a preliminary injunction and the City filed a motion seeking to compel binding arbitration of the Action. The court granted both motions on the terms and conditions set forth in the respective orders issued thereon, including ordering CVSA to post a bond with the court in the amount of $100,000. Due to the preliminary injunction, the City could not perform the second reading of the ordinance terminating the development agreement.

However, the Original Development Agreement had already expired by its own terms.

DISCUSSION
The City, CVSA and South Cord now desire to settle and resolve the claims asserted in the Action pursuant to a settlement agreement (the “Settlement Agreement”). The City Council is considering approval of the Settlement Agreement as an agenda item during this meeting.

For the City to fulfill its obligation under the Settlement Agreement and resolve the claims asserted in the Action, it must approve an amended and restated development agreement with CVSA and South Cord for the operation of Catalyst Cannabis Dispensary (the “Development Agreement”).

A. Settlement Agreement
The Major elements of the Settlement Agreement are summarized below:
• CVSA shall pay the City Eighty Thousand Dollars ($80,000) as full compensation for the Delinquent Public Benefit Amount under the Original Development Agreement. • CVSA or South Cord shall pay the past due taxes from the date the court issued the preliminary injunction until the effective date of the Development Agreement. Payments of past due taxes shall be calculated at seven percent (7%) of gross receipts from retail operations of Catalyst Cannabis Dispensary for each month of that period. • CVSA and South Cord shall not to challenge the City’s Cannabis Business Tax ordinance in its current form.
• The City, CVSA, and South Cord shall execute an amended and restated development agreement for the Catalyst Cannabis Dispensary contemporaneously with the execution of the Settlement Agreement.

B. Terms of the Development Agreement
On September 10 2026, following a public hearing, the Planning Commission passed Resolution No. 2026-05 recommending that the City Council adopt an Ordinance to approve the Development Agreement. The Development Agreement is similar to the most recent development agreements executed for cannabis businesses in the City. The primary distinction is that this Development Agreement is integral to the global settlement of the Action, as its execution is mandated by the Settlement Agreement.

Although the City Council retains discretion to recommend modifications to the Development Agreement, the Council should be aware that any changes would require further negotiations between the City, CVSA and South Cord. The current version of the Development Agreement has been reviewed and agreed upon by all parties.

The major elements of the Development Agreement are summarized below:
• Term of the Agreement is ten (10) years.
• Developers will operate under a Type 10 Retailer license and will continue to operate the cannabis dispensary in substantially the same manner as they have been operating. • Developers may seek a Cannabis Event Organizer License with the State. • Developers must maintain their CUP.
• Developers agree to pay the City Eighty Thousand Dollars ($80,000.00) for the delinquent public benefit amount due prior to the effective date of the Development Agreement. • In lieu of a public benefit fee, the Project will be subject to the City’s Cannabis Business Tax which is currently set at seven percent (7%) of gross receipts from retail operations each month. Any Changes to this rate made by resolution of the City Council will apply to the Development Agreement.
• Development Agreement will automatically expire if Developers become six months in arrears on any payments required by the agreement.

FISCAL IMPACT
The Settlement Agreement and subsequent Development Agreement represent the culmination of significant administrative and legal costs for the City. Approval of this ordinance will continue the process necessary to allow the City to begin receiving monthly payments from the Developers for their cannabis operations, providing revenue to offset the expenses incurred through the Action and its settlement.

ATTACHMENTS

1. Planning Commission Resolution No. 2026-05

2. City Council Ordinance No. 891
EXHIBIT A: Amended and Restated Development Agreement
1 PLANNING COMMISSION RESOLUTION NO. 2026-05

RESOLUTION OF THE CITY OF PATTERSON PLANNING COMMISSION

RECOMMENDING THE CITY OF PATTERSON CITY COUNCIL ADOPT AN

ORDINANCE TO APPROVE AN AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PATTERSON AND CENTRAL VALLEYSIERRA ASSOCIATES AND SOUTH CORD MANAGEMENT LLC FOR THE

CATALYST CANNABIS DISPENSARY
WHEREAS, 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; and WHEREAS, pursuant to Chapter 6.56 of the Patterson Municipal Code, all cannabis businesses operating in the City are required to enter into a development agreement with the City; and
WHEREAS, on December 5, 2017, the City adopted Ordinance No. 812 approving a development agreement (the “Original Development Agreement”) between the City of Patterson (the “City”) and Central Valley–Sierra Associates (“CVSA”) for the operation of a cannabis dispensary business located at 100 West Las Palmas Avenue, Suite H, Patterson CA 95363, Assessor’s Parcel Number 131-003-018 (the “Project”); and WHEREAS, the Original Development Agreement required CVSA to pay to the City certain amounts to offset the impacts to City infrastructure, services, and neighborhoods, commensurate with the private benefits conferred on CVSA (the “Public Benefit Amount”), pursuant to the terms stated in Section 4.2 of the Original Development Agreement; and WHEREAS, between 2018 and 2022, CVSA did not comply with the requirements of the Original Development Agreement to make required Public Benefit Amount payments (the “Delinquent Public Benefit Amount”) by the agreed-upon terms, resulting in a default of the Original Development Agreement, pursuant to Sections 4.3 and 8.1(a) of that agreement; and WHEREAS, the Original Development Agreement expired by its own terms on January 4, 2022; and
WHEREAS, on or around January 2023, CVSA engaged a new company, Catalyst Cannabis Company, owned by South Cord Management LLC (“South Cord”) to assist with operation and management of the Project; and
WHEREAS, on July 13, 2023, the Planning Commission passed Resolution 2023-07 revoking the CUP for failure to comply with conditions of approval and Resolution 2023-06 recommending the City Council adopt an ordinance confirming the termination of the Original 2 4908-9071-1140, v. 9
Development Agreement. On July 14, 2023, CVSA timely appealed both Planning Commission resolutions; and
WHEREAS, on September 19, 2023, the City Council denied CVSA’s appeal of the Planning Commission resolutions, confirmed the Planning Commission’s decision to revoke the CUP, and gave first reading of Ordinance 870 to confirm termination of the Original Development Agreement; and
WHEREAS, on September 20, 2023, CVSA filed a Verified Petition for Writ of Mandamus and Complaint in the Superior Court, Stanislaus County, titled Central Valley – Sierra Associates v. City of Patterson, Case No. CV-23-005444, against the City challenging the City’s revocation of CVSA’s CUP and the legality of the Public Benefit Amount payments (the “Action”); and
WHEREAS, due to the Action, the City was not able to complete the second reading of the Ordinance to terminate the Original Development Agreement; however, the Original Development Agreement has expired by its own terms; and WHEREAS, the City and CVSA have negotiated a settlement of the Action through execution of a settlement agreement between the City, CVSA, and South Cord (the “Settlement Agreement”); and
WHEREAS, as part of the Settlement Agreement, the City, CVSA, and South Cord have negotiated an amended and restated development agreement for Catalyst Cannabis Dispensary (the “Development Agreement”); and
WHEREAS, the Development Agreement allows CVSA and South Cord to continue to operate the Catalyst Cannabis Dispensary in substantially the same manner as they have been operating, except that in lieu of the Public Benefit Amount, the project will be subject to the City’s Cannabis Business Tax; and
WHEREAS, CVSA’s existing operation will not change in conjunction with this Development Agreement. Approval of the Development Agreement is exempt from CEQA under the Existing Facilities exemption (CEQA Guidelines, § 15301) and the common sense exemption (CEQA Guidelines, § 15061, subd. (b)(3)), because it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment; and WHEREAS, City staff recommends that the Planning Commission make the following findings for recommendation of the Development Agreement:

1. The Development Agreement is consistent with the objectives, policies, general land uses, and programs specified in the City’s General Plan. The Development Agreement allows for development and operation of the Project consistent with the existing General Plan designation and policies (Heavy Industrial).
3 4908-9071-1140, v. 9

2. The Development Agreement is consistent with the zoning for the Property. The Development Agreement would allow for development and operation of the Project consistent with current zoning district applied to the Property (Heavy Industrial).

3. The Development Agreement will provide for the orderly development of the Property; will preserve surrounding property values; conforms to the public convenience and good land use practices; will not be detrimental to the health, safety, and general welfare of persons residing in the immediate area nor detrimental to the general welfare of the residents of the City as a whole; and will be compatible with surrounding land uses.

4. The Development Agreement provides sufficient benefit to the City to justify entering into the Development Agreement, which includes receipt of City fees and infrastructure and public benefit contributions from the Developer.

5. The Development Agreement contains an adequate legal description of the Property and is in all other respects consistent with the provisions of Government Code sections 65864 through 65869.5 (the Development Agreement Statute).

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Patterson hereby finds and determines that the Recitals set forth above are true and correct, are supported by substantial evidence in the record, and are incorporated herein by reference as findings of the Planning Commission.

BE IT FURTHER RESOLVED that the Planning Commission finds that approval of the Development Agreement is exempt under CEQA Guidelines section 15301 (Existing Facilities).

BE IT FURTHER RESOLVED that the Planning Commission hereby recommends that the City Council adopt Ordinance No. ___, Approving the Development Agreement By and Between the City of Patterson and Central Valley-Sierra Associates and South Cord Management LLC.

The foregoing resolution was introduced at a regular meeting of the Planning Commission of the City of Patterson, held on the 10th day of September, 2026, by Vice Chairperson Bendix, who moved its adoption, which motion was duly seconded by Commissioner Sidhu, and the resolution adopted by the following vote:

AYES: Chairperson West, Vice Chairperson Bendix, Commissioner Sidhu, Commissioner Apland
NOES: None
EXCUSED: Commissioner Alexander
APPROVED:
____________________________
Ron West, Chairperson,
City of Patterson Planning Commission
4 4908-9071-1140, v. 9
ATTEST:
_______________________________
Lisa Ochoa, Secretary
City of Patterson Planning Commission
1 ORDINANCE NO. 891

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PATTERSON

APPROVING THE AMENDED AND RESTATED DEVELOPMENT AGREEMENT

BETWEEN THE CITY OF PATTERSON AND CENTRAL VALLEY-SIERRA

ASSOCIATES AND SOUTH CORD MANAGEMENT LLC FOR THE CATALYST

CANNABIS DISPENSARY
WHEREAS, 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 individuals with an interest in real property to enter into a development agreement that establishes certain development rights in real property; and WHEREAS, pursuant to Chapter 6.56 of the Patterson Municipal Code, all cannabis businesses operating in the City are required to enter into a development agreement with the City; and
WHEREAS, on December 5, 2017, the City adopted Ordinance No. 812 approving the Development Agreement (the “Original Development Agreement”) between the City of Patterson (the “City”) and Central Valley–Sierra Associates (“CVSA”) for the operation of a cannabis dispensary business located at 100 West Las Palmas Avenue, Suite H, Patterson CA 95363, Assessor’s Parcel Number 131-003-018 (the “Project”); and WHEREAS, Section 4.2 of the Original Development Agreement required CVSA to pay to the City certain amounts to offset the impacts to City infrastructure, services, and neighborhoods, commensurate with the private benefits conferred on CVSA (the “Public Benefit Amount”); and
WHEREAS, between 2018 and 2022, CVSA did not meet its obligation under Section 4.2 of the Original Development Agreement to pay the City the required Public Benefit Amount payments (the “Delinquent Public Benefit Amount”) by the agreed-upon terms, resulting in a default of the Original Development Agreement, pursuant to Section 4.3 and 8.1(a) of that agreement; and
WHEREAS, the Original Development Agreement expired by its own terms on January 4, 2022; and
WHEREAS, On or around January 2023, CVSA engaged a new company, Catalyst Cannabis Company, owned by South Cord Management LLC (“South Cord”) to assist with operation and management of the Project; and
WHEREAS, On July 13, 2023, the Planning Commission passed Resolution 2023-07 revoking the CUP for failure to comply with conditions of approval and Resolution 2023-06 recommending the City Council adopt an ordinance confirming the termination of the Original 2 Development Agreement. On July 14, 2023, CVSA timely appealed both Planning Commission resolutions; and
WHEREAS, on September 19, 2023, the City Council denied CVSA’s appeal of the Planning Commission resolutions, adopted a resolution to revoke the CUP contingent on termination of the Original Development Agreement, and gave first reading of Ordinance 870 to confirm termination of the Original Development Agreement; and WHEREAS, on September 20, 2023, CVSA filed a Verified Petition for Writ of Mandamus and Complaint in the Superior Court, Stanislaus County, titled Central Valley – Sierra Associates v. City of Patterson, Case No. CV-23-005444, against the City challenging the City’s revocation of CVSA’s CUP and the legality of the Public Benefit Amount payments (the “Action”); and
WHEREAS, due to the Action, the City was not able to complete the second reading of the Ordinance to terminate the Original Development Agreement; however, the Original Development Agreement has expired by its own terms; and WHEREAS, the City and CVSA have negotiated a settlement of the Action through execution of a settlement agreement between the City, CVSA, and South Cord (the “Settlement Agreement”); and
WHEREAS, as part of the Settlement Agreement, the City, CVSA, and South Cord have negotiated an amended and restated development agreement for Catalyst Cannabis Dispensary (the “Development Agreement”); and
WHEREAS, the Development Agreement allows CVSA and South Cord to continue to operate the Catalyst Cannabis Dispensary in substantially the same manner as they have been operating, except that in lieu of the Public Benefit Fee, the project will be subject to the City’s Cannabis Business Tax; and
WHEREAS, CVSA’s existing operation will not change in conjunction with this Development Agreement. Approval of the Development Agreement is exempt from CEQA under the Existing Facilities exemption (CEQA Guidelines, § 15301) and the common sense exemption (CEQA Guidelines, § 15061, subd. (b)(3)), because it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment; and WHEREAS, on September 10, 2026, following a public hearing, the Planning Commission passed Resolution No. 2026-05 recommending that the City Council adopt an Ordinance to approve the Development Agreement; and
WHEREAS, the City Council, based on its independent review and analysis of City staff’s recommendations, oral and written testimony, and the record as a whole, finds after due study, deliberation, and public hearing, and based on its independent judgment, that the following circumstances exist:
3 1. The Development Agreement is consistent with the objectives, policies, general land uses, and programs specified in the City’s General Plan. The Development Agreement allows for development and operation of the Project consistent with the existing General Plan designation and policies (Heavy Industrial).

2. The Development Agreement is consistent with the zoning for the Property. The Development Agreement would allow for development and operation of the Project consistent with current zoning district applied to the Property (Heavy Industrial).

3. The Development Agreement will provide for the orderly development of the Property; will preserve surrounding property values; conforms to the public convenience and good land use practices; will not be detrimental to the health, safety, and general welfare of persons residing in the immediate area nor detrimental to the general welfare of the residents of the City as a whole; and will be compatible with surrounding land uses.

4. The Development Agreement provides sufficient benefit to the City to justify entering into the Development Agreement, which includes receipt of City fees and infrastructure and public benefit contributions from the Developer.

5. The Development Agreement contains an adequate legal description of the Property and is in all other respects consistent with the provisions of Government Code sections 65864 through 65869.5 (the Development Agreement Statute).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PATTERSON ORDAINS AS FOLLOWS:

SECTION 1. Recitals. The City Council hereby finds and determines that the foregoing Recitals, which are incorporated herein by reference and made part of this Ordinance, are true and correct.

SECTION 2. Annual Review. The City Manager or his or her designee shall review the Development Agreement for compliance with its terms and conditions not less than once every twelve (12) months from the effective date of the Development Agreement.

SECTION 3. Approval of Development Agreement. The City Council hereby approves and authorizes the City Manager to execute the Development Agreement attached and incorporated hereto as Exhibit A, subject to final revisions as required and approved by the City Attorney. Upon execution, the City Clerk shall cause the Development Agreement to be recorded in the Official Records of Stanislaus County promptly after this Ordinance is legally effective (thirty (30) days after the second reading of this Ordinance).

SECTION 4. Effective Date. This Ordinance shall take effect thirty (30) days after its passage by the City Council and following the affirmative vote of a majority of the members of the City Council. Within fifteen (15) days of its adoption, a summary of the Ordinance shall be published in a newspaper of general circulation in the City of Patterson, State of California, which summary shall include the names of those Councilmembers voting for and against the Ordinance.

A certified copy of the full text of such adopted Ordinance shall be on file in the office of the City Clerk.
4 The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Patterson held on the 6th day of October 2026, by __________, who moved its introduction, which motion being duly seconded by _______________. Said Ordinance was given a second reading at a regular meeting of the City Council held on the 20th day of October 2026, and after such reading, ____________ moved its adoption, seconded by ________________, and said Ordinance was thereupon adopted by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:
_____________________________
Michael Clauzel,
Mayor of the City of Patterson
ATTEST:
_____________________________
Aracely Alegre,
City Clerk of the City of Patterson
1 4909-7736-2578, v. 1

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL
TO:

City of Patterson
P.O. Box 667
1 Plaza
Patterson, CA 95363
Attention: City Clerk

SPACE ABOVE THIS LINE FOR RECORDER'S USE
Recording Fee Exempt per Government Code §6103
APN:

AMENDED AND RESTATED DEVELOPMENT AGREEMENT
THIS AMENDED AND RESTATED DEVELOPMENT AGREEMENT (“Agreement”) is made and entered into this ______________________, 2026, by and between the CITY OF PATTERSON, a municipal corporation of the State of California (“City”), and EAGLE VALLEY INVESTMENTS INC., a California corporation (“Owner”) and CENTRAL VALLEY -- SIERRA ASSOCIATES, a California corporation, and SOUTH CORD MANAGEMENT LLC, a California limited liability company (collectively, “Tenant”).

Owner and Tenant are referred to herein collectively as “Developer.” City, Owner, or Tenant may be referred to herein individually as a “Party” or collectively as the “Parties.” There are no other parties to this Agreement.

RECITALS
A. On October 9, 2015, Governor Jerry Brown signed three bills into law (Assembly Bill 266, Assembly Bill 243, and Senate Bill 643) which are collectively referred to as the Medical Cannabis Regulation and Safety Act (“MCRSA”). MCRSA establishes a statewide regulatory system for the cultivation, processing, transportation, testing, manufacturing, and distribution of medical marijuana to qualified patients and their primary caregivers.

B. On November 8, 2016, California voters enacted Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act, also known as the Adult Use of Marijuana Act (“AUMA”), which establishes a comprehensive system to legalize, control, and regulate the cultivation, processing, manufacture, distribution, testing, and sale of nonmedical cannabis, including cannabis products, for use by adults 21 years and older, and to tax the growth and retail sale of cannabis for nonmedical use.

C. On June 27, 2017, Governor Jerry Brown signed into law the Medicinal and AdultUse Cannabis Regulation and Safety Act (“MAUCRSA”), which creates a single regulatory scheme for both medicinal and adult-use cannabis businesses.

MAUCRSA retains the provisions in MCRSA and AUMA that granted local jurisdictions control over whether businesses engaged in Commercial Cannabis 2 4909-7736-2578, v. 1
Activity, as defined in Section 1.4 of this Agreement, may operate in a particular jurisdiction.

D. On November 7, 2017, the City of Patterson City Council adopted Ordinance No. 806 to revise Patterson Municipal Code 6.56 to establish a Cannabis Business Program to regulate all cannabis businesses within the City, as may be updated from time to time.

E. Pursuant to Chapter 6.56 of the Patterson Municipal Code, all cannabis businesses operating within City must enter into a Development Agreement with City.

F. Developer proposes to improve, develop, and use real property located in the City of Patterson to operate a cannabis dispensary, in strict accordance with California Cannabis Laws, as defined in Section 1.4, and the Municipal Code of the City of Patterson, as each may be amended from time to time (the “Project”).

G. 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 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.

H. Consistent with the requirements of the Development Agreement Statute, City adopted Patterson Municipal Code Chapter 18.20 et seq. (“City Development Agreement Ordinance”), authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City.

I. Government Code section 65865 requires that an applicant for a development agreement hold a legal or equitable interest in the real property that is the subject of the development agreement.

J. Owner is the fee title owner to the property located at 100 West Las Palmas Avenue, Suite H, Patterson, California (APN 131-003-012) (the “Property”), as more particularly described in the legal description attached hereto as Exhibit A.

K. Tenant has leased the Property from Owner for the purpose of operating a Cannabis Dispensary. Owner is aware of, and agrees to, Tenant operating the Project at the Property.

L. On December 5, 2017, Developer and City first entered into a Development Agreement prior to the Project commencing operation. There was a dispute as to the obligations established by the original Development Agreement and this Agreement is being entered into as part of the settlement of that dispute. This Agreement shall supersede and take the place of the original Development Agreement, which shall no longer have any force or effect. 3 4909-7736-2578, v. 1
M. On __________, 2026, the Planning Commission recommended the City Council adopt an ordinance to approve this Agreement.

N. On ____________, 2026, the City Council reviewed, considered, adopted, and entered into this Agreement pursuant to Ordinance No. _____.

O. City and Developer desire to enter into this Agreement to (i) facilitate the orderly development of the Property; (ii) create a physical environment that is consistent with and complements City’s goals and visions; (iii) protect natural resources from adverse impacts; (iv) improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals of the General Plan; (v) reduce the economic risk of development of the Property to both City and Developer; (vi) establish public benefits that will be provided to City through operation of the Project; and (vii) resolve a lawsuit filed by Developer against the City regarding this project.

P. This Agreement is entered into pursuant to the Development Agreement Statute and the Patterson Municipal Code. The Parties intend through this Agreement to allow Developer to develop and operate the Project in accordance with the terms of this Agreement.

Q. The City Council has determined that this Agreement is consistent with City’s General Plan and have conducted all necessary proceedings in accordance with the Patterson Municipal Code for the approval of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

AGREEMENT
ARTICLE 1

GENERAL PROVISIONS
Section 1.1. Findings. City hereby finds and determines that entering into this Agreement furthers the public health, safety, and general welfare and is consistent with City’s General Plan, including all text and maps in the General Plan.

Section 1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into and made a part of this Agreement. In the event of any inconsistency between the Recitals and the provisions of this Agreement, the provisions shall prevail.

Section 1.3. Exhibits. The following “Exhibits” are attached hereto and incorporated into this Agreement:
4 4909-7736-2578, v. 1
Designation Description
Exhibit A Legal Description of the Property
Exhibit B Notice of Non-Performance Penalty
Exhibit C Indemnification Agreement
Exhibit D Development Agreement Ordinance
Exhibit E Settlement Agreement
Section 1.4. Definitions. In this Agreement, unless the context otherwise requires, the terms below have the following meaning:
(a) “Adult-use cannabis” means a product containing cannabis, including, but not limited to, concentrates and extractions, intended for use by adults 21 years of age or older in California pursuant to the California Cannabis Laws. (b) “Agreement” means this Development Agreement, inclusive of all Exhibits attached hereto and all amendments hereto.
(c) “AUMA” means the Adult Use of Marijuana Act (Proposition 64) approved by California voters on November 8, 2016.
(d) “Authorized Licenses” has the meaning set forth in Section 2.3. (e) “California Cannabis Laws” includes AUMA, MAUCRSA, CUA (as defined below), the Medical Marijuana Program Act of 2004 codified as Health and Safety Code sections 11362.7 through 11362.85, and any other applicable laws that may be enacted or approved.
(f) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. Cannabis and the term “marijuana” may be used interchangeably.
5 4909-7736-2578, v. 1
(g) “Cannabis Business Program” means the cannabis business program established and authorized by Patterson Municipal Code Chapter 6.56. (h) “Cannabis Business Tax” means tax on every person engaged in a cannabis business as contemplated in Patterson Municipal Code Chapter 5.14, as may be amended from time to time.
(i) “Cannabis product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
(j) “CEQA” means the California Environmental Quality Act, as set forth in Division 13 (Commencing with Section 21000) of the California Public Resources Code, and the CEQA Guidelines, as set forth in Title 14 (Commencing with Section 15000) of the California Code of Regulations.
(k) “City” means the City of Patterson, a municipal corporation having general police powers.
(l) “Commercial Cannabis Activity” includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of cannabis or a cannabis product that requires a state license pursuant to MAUCRSA.
(m) “Conditional Use Permit” means a conditional use permit issued by City pursuant to Patterson Municipal Code.
(n) “CUA” means the Compassionate Use Act (Proposition 215) approved by California voters on November 5, 1996.
(o) "Gross Receipts from Operations" means the total amounts actually received or receivable from operation of the Project from whatever source derived, including but not limited to: amounts derived from sales, services, dealings in tangible personal property, interest, rent, royalties, licensing fees, other fees, commissions, or other remunerations however designated. Included in "gross receipts" shall be all receipts, cash, credits, and property of any kind or nature, without any deduction therefrom of costs, losses or other expenses whatsoever. The following exceptions shall be excluded therefrom:

1. Cash discounts allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price shall be included as "gross receipts";

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
6 4909-7736-2578, v. 1

4. Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as is refunded either in cash or by credit;

5. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded.

The intent of this definition is to ensure that in calculating the payment required under Section 4.2, all sales of cannabis products through the Project are captured. This definition shall therefore be given the broadest possible interpretation consistent with this intent.
(p) “Marijuana” has the same meaning as cannabis and those terms may be used interchangeably.
(q) “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act, codified as Business and Professions Code section 26000 et seq., as may be amended from time to time.
(r) “Settlement Agreement” means the agreement entered into between the City and CVSA on ___________, 2026 that resolved the Verified Petition for Writ of Mandamus and Complaint in Superior Court, Stanislaus County, titled Central Valley – Sierra Associates v. City of Patterson, Case No. CV-23-005444. (s) “State Licensing Authority” means the state agency responsible for the issuance, renewal, or reinstatement of a state cannabis license, or the state agency authorized to take disciplinary action against a business licensed under the California Cannabis Laws.
(t) “State Cannabis Retail Regulations” means the regulations related to the retail sale of cannabis issued by the Bureau in accordance with Chapter 7 (commencing with Section 26070) of Division 10 of the Business and Professions Code, which may be amended from time to time.
(u) “State Cannabis Regulations” means the regulations promulgated by the State Licensing Authority pursuant to the California Cannabis Laws. (v) “Subsequent City Approvals” has the meaning set forth in Section 3.1.

Section 1.5. Project is a Private Undertaking. The Parties agree that the Project is a private development and that City has no interest therein, except as authorized in the exercise of its governmental functions. City shall not for any purpose be considered an agent of Developer or the Project.

Section 1.6. Effective Date of Agreement. This Agreement shall become effective upon the date that the ordinance approving this Agreement becomes effective (the “Effective Date”).
7 4909-7736-2578, v. 1
Section 1.7. Term. The term of this Agreement shall be ten (10) years from the Effective Date, unless terminated or extended earlier, as set forth in this Agreement (the “Initial Term”). After the Initial Term, the City Manager shall perform a review of Developer’s performance under this Agreement to verify that Developer is in compliance with this Agreement, the California Cannabis Laws, the Conditional Use Permit, and all applicable Subsequent City Approvals. If the City Manager determines Developer is in compliance with the Agreement, the California Cannabis Laws, the Conditional Use Permit, and applicable Subsequent City Approvals, the City Manager in his or her sole discretion may extend the term of this Agreement in increments of six (6) months (individually, a “Conditionally Extended Term”, or collectively, the “Conditionally Extended Terms”), for a maximum of four (4) Conditionally Extended Terms. Collectively, the Initial Term and the Conditionally Extended Terms, if granted, shall not exceed twelve (12) years, unless otherwise extended pursuant to the terms of this Agreement. The Initial Term and any Conditionally Extended Terms shall collectively be referred to as the “Term”. Any extension of this Agreement beyond the Term shall be subject to approval by the City Council. The City Manager’s review of the Agreement for purposes of this Section 1.7 shall be a Minor Amendment, as defined in Section 1.9, of this Agreement. The City Manager in his or her sole discretion may decide that any extension beyond the Initial Term shall be subject to the approval of City Council.
(a) Government Tolling or Termination. City may provide written notice to Developer to cease all Commercial Cannabis Activity, upon which Developer shall immediately comply, if City is required, directed, or believes, in its sole and absolute discretion, it must temporarily halt or terminate Commercial Cannabis Activity within the City to comply with federal or state law. If City temporarily halts this Agreement to comply with federal or state law, this Agreement shall be tolled for no longer than one (1) calendar year. This Agreement shall automatically terminate, without recourse by any Party, if tolled for more than one (1) calendar year to comply with federal or state law. (b) Developer Tolling or Termination. Developer may not temporarily halt or terminate this Agreement for any purpose without causing a default of this Agreement, except as otherwise allowed by this Agreement or by mutual agreement of the Parties. (c) Developer Termination. Developer may provide written notice to City of intent to cease all Commercial Cannabis Activity, if Developer is required or directed, it must temporarily halt or terminate Commercial Cannabis Activity. In such an event, Developer obligations under this Development Agreement shall terminate as of the date that Developer has completed all of its obligations under Article 4 of this Agreement. Any resumption of Commercial Cannabis Activity shall be subject to approval by the City Manager.

Section 1.8. Priority of Enactment. In the event of a conflict between the various land use documents referenced in this Agreement, the Parties agree that the following sequence of approvals establishes the relative priority of the approvals, each approval superior to the approvals listed thereafter: (a) General Plan, (b) this Agreement, (c) Conditional Use Permit, (d) Indemnification Agreement, and (e) Subsequent City Approvals.
8 4909-7736-2578, v. 1
Section 1.9. Amendment of Agreement. This Agreement shall be amended only by mutual consent of the Parties. All amendments shall be in writing. The City Council hereby expressly authorizes the City Manager to approve a minor amendment to this Agreement, upon notification of the City Council (“Minor Amendment”). A major amendment to this Agreement shall be approved by the City Council (“Major Amendment”). The City Manager shall, on behalf of City, have sole discretion for City to determine if an amendment is a Minor Amendment or a Major Amendment, except that any change in the majority ownership of Developer’s business shall be deemed a Major Amendment.

Nothing in this Agreement shall be construed as requiring a noticed public hearing, unless required by law.

Section 1.10. Recordation of Development Agreement. The City Clerk shall cause a copy of this Agreement to be recorded against the title of the Property promptly after the Ordinance approving this Agreement becomes effective.

Section 1.11. Funding Agreement for Processing Costs. Developer recognizes that City incurs actual fees and expenses that are related to the preparation, processing, and administration of this Agreement and the Project, including recording fees, publishing fees, City staff time, and consultant and attorney fees and costs (collectively, “Processing Costs”). Developer shall maintain a funding agreement for Processing Costs at all times during the time that the Project is operational.
(a) Apportionment of Processing Costs. Developer shall deposit with City such funds necessary to pay for all Processing Costs within thirty (30) days. The failure to timely pay any such amounts requested by City shall be considered a material default of this Agreement and City may terminate this Agreement. (b) Accounting. Developer may request, and City shall issue within a reasonable time not to exceed thirty (30) days, an accounting and written acknowledgement of Processing Costs paid to City.

Section 1.12 Review of Agreement. The City will review this Agreement at least once every twelve (12) months, at which time Developer shall demonstrate good-faith compliance with the terms of this Agreement. If, as a result of that review, the City finds and determines on the basis of substantial evidence that Developer has not complied in good faith with the terms and conditions of this Agreement, the City may terminate or modify this Agreement.

ARTICLE 2

DEVELOPMENT OF PROPERTY
Section 2.1. Vested Right of Developer. During the Term, in developing the Project described herein, Developer is assured that the development rights, obligation terms, and conditions specified in this Agreement, including, without limitation, the terms, conditions, and limitations set forth in the Exhibits, are fully vested in Developer and may not be modified or terminated by City except as set forth in this Agreement or with Developer’s written consent.
9 4909-7736-2578, v. 1
Section 2.2. Vested Right to Develop. In accordance with Section 2.1, Developer shall have the vested right to develop and use the Project consistent with this Agreement, the Conditional Use Permit, and Subsequent City Approvals.

Section 2.3. Permitted Uses and Development Standards. Developer shall be authorized to develop, construct, and use the Property for Commercial Cannabis Activity consistent with the following license types (the “Authorized Licenses”):

Type 10 Retailer

(a) State License Required. Developer shall be permitted to use the Property consistent with the Authorized Licenses for the Term of this Agreement. Developer is required to maintain the Authorized Licenses from the State of California. If Developer’s Authorized Licenses are revoked or suspended, Developer shall immediately cease Commercial Cannabis Activity on the Property and this Agreement shall terminate immediately. Developer shall also, within thirty (30) days of receiving notice from the State Licensing Authority, notify City of the State Licensing Authority’s, revocation or suspension of any Authorized License.
(b) Cannabis Event Organizer. Developer may seek a Cannabis Event Organizer license with the State Licensing Authority for the purpose of conducting and carrying out temporary cannabis events at the Property, subject to all applicable California Cannabis Laws, including but not limited to the applicable cannabis regulations issued by the State Licensing Authority, which may be amended from time to time (Cal. Code Regs., tit. 4, §§ 15600 - 15604.), and subject to any and all applicable event permit requirements imposed by the City. Developer may not conduct any events at the Property, or within City limits, that include any on-Property cannabis consumption.

Section 2.4. Major Amendment to Permitted Uses. Developer may request to add to the Authorized License one or more additional license types once that license is applied for or obtained from the appropriate State Licensing Authority (the “Additional Licenses”).

Section 2.5. Conditional Use Permit. Developer shall obtain and maintain a Conditional Use Permit and any applicable Subsequent City Approvals to continue operating a Commercial Cannabis Activity on the Property. Developer shall be required to comply with all conditions of approval of the Conditional Use Permit. If Developer’s Conditional Use Permit is revoked by the City, Developer shall immediately cease Commercial Cannabis Activity on the Property and this Agreement shall terminate immediately. Developer shall be required to comply with all provisions of the Patterson Municipal Code and any City rules and administrative guidelines associated with implementation of the Cannabis Business Program. Nothing in this Agreement shall be construed as limiting the ability of City to amend the Patterson Municipal Code or issue rules or administrative guidelines associated with implementation of the Cannabis Business Program or Developer’s obligation to strictly comply with the same. 10 4909-7736-2578, v. 1
Section 2.6. Subsequent Entitlements, Approvals, and Permits. Successful implementation of the Project may require Developer to obtain additional approvals and permits from City and other local and state agencies. City shall comply with CEQA in the administration of all Subsequent City Approvals. In acting upon any Subsequent City Approvals, City’s exercise of discretion and permit authority shall conform to this Agreement. Notwithstanding the foregoing, in the course of taking action on the Subsequent City Approvals, City will exercise discretion in adopting mitigation measures as part of the Conditional Use Permit. The exercise of this discretion is not prohibited or limited in any way by this Agreement. Nothing in this Agreement shall preclude the evaluation of impacts or consideration of mitigation measures or alternatives, as required by CEQA.
(a) Contemplated City Rules and Guidelines. City anticipates that it may issue additional rules and administrative guidelines associated with implementation of the Cannabis Business Program. City may establish requirements that are identical to or place a higher standard of care as existing provisions of the California Cannabis Laws, State Cannabis Regulations, or any amendments thereto. City reserves the right to adopt additional categories of rules or guidelines that are not listed in this section as part of the Cannabis Business Program. Developer will be required to comply with any and all administrative guidelines adopted by City that govern or pertain to the Project. Should new administrative guidelines conflict with this Agreement, the terms of this Agreement shall prevail.

Section 2.7. Initiatives and Referenda. If any City ordinance, rule or regulation, or addition to the Patterson Municipal Code is enacted or imposed by a citizen-sponsored initiative or referendum after the Effective Date that would conflict with this Agreement, an associated Conditional Use Permit, Subsequent City Approvals, or reduce the development rights or assurances provided to Developer in this Agreement, such Patterson Municipal Code changes shall not be applied to the Property or Project; provided, however, the Parties acknowledge that City’s approval of this Agreement is a legislative action subject to referendum. City shall cooperate with Developer and shall undertake such reasonable actions as may be appropriate to ensure this Agreement remains in full force and effect and is implemented in accordance with its terms to the fullest extent permitted by state or federal law.

Section 2.8. Regulation by Other Government Entities. Developer acknowledges that City does not have authority or jurisdiction over any other government entities’ ability to grant governmental approvals or permits or to impose a moratorium or other limitations that may negatively affect the Project or the ability of City to issue a permit to Developer or comply with the terms of this Agreement. Any moratorium imposed by another government entity, including the State Licensing Authority, on City shall not cause City to be in breach of this Agreement.

Section 2.9. Developer’s Right to Rebuild. Developer may renovate portions of the Project any time within the Term of this Agreement consistent with the Patterson Municipal Code. Any such renovation or rebuild shall be subject to all design, building code, and other requirements imposed on the Project by this Agreement. 11 4909-7736-2578, v. 1
Section 2.10. Changes Mandated by Federal or State Law. The Project shall be subject to subsequently enacted state or federal laws or regulations that may preempt the Patterson Municipal Code, or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement or local rules or guidelines associated with the Cannabis Business Pilot Program. As provided in Section 65869.5 of the Development Agreement Statute, in the event state or federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement, such provisions shall be modified or suspended as may be necessary to comply with such state or federal laws or regulations. Upon discovery of a subsequently enacted federal or state law meeting the requirements of this Section, City or Developer shall provide the other Party with written notice of the state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Patterson Municipal Code or this Agreement. Promptly thereafter, City and Developer shall meet and confer in good faith in a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulation provided City shall not be obligated to agree to any modification materially increasing its obligations or materially adversely affecting its rights and benefits hereunder. In such discussions, City and Developer will attempt to preserve the terms of this Agreement and the rights of Developer derived from this Agreement to the maximum feasible extent while resolving the conflict. If City, in its judgment, determines it necessary to modify this Agreement to address such conflict, City shall have the right and responsibility to do so, and shall not have any liability to Developer for doing so or be considered in breach or default of this Agreement. City also agrees to process, in accordance with the provisions of this Agreement, Developer’s proposed changes to the Project that are necessary to comply with such federal or state law and that such proposed changes shall be conclusively deemed to be consistent with this Agreement without further need for any amendment to this Agreement.

Section 2.11. Health and Safety Emergencies. In the event that any future public health and safety emergencies arise with respect to the development contemplated by this Agreement, City agrees that it shall attempt, if reasonably possible as determined by City in its discretion, to address such emergency in a way that does not have a material adverse impact on the Project. If City determines, in its discretion, that it is not reasonably possible to so address such health and safety emergency in a way that does not have a material adverse impact on the Project, City may select an option which, in its discretion, minimizes, so far as reasonably possible, the impact on development and use of the Project in accordance with this Agreement, while still addressing such health and safety emergency in a manner acceptable to City.

ARTICLE 3

ENTITLEMENT AND PERMIT PROCESSING, INSPECTIONS
Section 3.1. Subsequent City Approvals. City shall permit the development, construction, and conditionally permitted use contemplated in this Agreement. City agrees to timely grant, pursuant to the terms of this Agreement, the Patterson Municipal Code, and any Subsequent City Approvals reasonably necessary to complete the goals, objectives, policies, standards, and plans described in this Agreement. The Subsequent City Approvals shall include any applications, permits, and approvals required to complete 12 4909-7736-2578, v. 1
the improvements necessary to develop the Project, in general accordance with this Agreement (“Subsequent City Approvals”). Nothing herein shall require City to provide Developer with Subsequent City Approvals prior to, or without complying with, all of the requirements in this Agreement, the Patterson Municipal Code, and any applicable state law.

Section 3.2. Timely Processing. City shall use its reasonable best efforts to process and approve, within a reasonable time, any Subsequent City Approvals or environmental review requested by Developer during the Term of this Agreement.

Section 3.3. Cooperation Between City and Developer. Consistent with the terms set forth herein, City agrees to cooperate with Developer, on a timely basis, in securing all permits or licenses that may be required by City or any other government entity with permitting or licensing jurisdiction over the Project.

Section 3.4. Further Consistent Discretionary Actions. The exercise of City's authority and independent judgment is recognized under this Agreement, and nothing in this Agreement shall be interpreted as limiting City’s discretion or obligation to hold legally required public hearings. Except as otherwise set forth herein, such discretion and action taken by City shall, however, be consistent with the terms of this Agreement and not prevent, hinder or compromise development or use of the Project as contemplated by the Parties in this Agreement.

ARTICLE 4

PUBLIC BENEFIT, PROCESSING, AND OVERSIGHT
Section 4.1. Processing Fees and Charges. Developer shall pay to City those processing, inspection, plan checking, and monitoring fees and charges required by City which are in force and effect at the time those fees and charges are incurred (including any post-Effective Date increases in such fees and charges) for processing applications and requests for building permits, inspections, other permits, approvals and actions, and monitoring compliance with any permits issued or approvals granted or the performance of any conditions (each a “Ministerial Fee” and collectively, the “Ministerial Fees”).

Section 4.2. Public Benefit.
(a) Public Benefit Requirement. The Parties acknowledge and agree that this Agreement confers substantial private benefits upon Developer that will place burden upon City infrastructure, services, and neighborhoods. Accordingly, the Parties intend to provide consideration to City to offset these impacts that commensurate with the private benefits conferred upon Developer. Developer’s consideration to the City consist of the Adjusted Public Benefit payment as defined in this section, payment of the City’s Cannabis Business Tax, and payment of past taxes owed by the Developer to the City. (b) Outstanding Public Benefit Payment. Developer hereby agrees to pay to City a fixed sum of Eighty Thousand Dollars ($80,000.00) to offset the entire outstanding Public Benefit amount due and owed to City arising before the Effective Date 13 4909-7736-2578, v. 1
(“Adjusted Public Benefit”). Payment shall be due to City pursuant to the Settlement Agreement.

Section 4.3. Project Subject to Citywide Cannabis Business Tax. (a) Cannabis Business Tax. The Project shall be subject to the City’s Cannabis Business Tax as applicable to the monthly Gross Receipts generated by the Project. As of the effective date of this agreement, the Cannabis Business Tax rate is 7% of Gross Receipts from retail operations each month (pursuant to City Council Resolution No. 2021-44). The Cannabis Business Tax rate is subject to change by decision of the City Council. Developer shall pay the Cannabis Business Tax rate as determined by the City Council. Changes to the Cannabis Business Tax rate will become effective on the first day of the month following any final decision by the City Council approving a change to the Cannabis Business Tax rate.
(b) Cannabis Business Tax Payment. As of the Effective Date, the Developer’s payment of the City’s Cannabis Business Tax shall be due and payable to City on the first business day of each month going forward. (c) Method of Payment. On the due date for the Cannabis Business Tax, Developer shall submit both the payment of the Cannabis Business Tax as well as a completed Cannabis Business Tax Form to the City.
(d) Tax Obligation Upon Termination. Upon termination of this Agreement Developer will be subject to the tax rate for retail cannabis businesses set by the City Council. Termination of this agreement shall not be construed as relieving Developer from the City’s Cannabis Business Tax.
(e) Filing of Tax Statement. 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 Project during the applicable time period. Developer shall provide a copy of such statement to City upon request by City.
(f) Tax Does Not Authorize Illegal Business. The payment of the cannabis business tax shall not be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner.

Section 4.4. Payment of Past Taxes. For the time period of February 8, 2024 through the Effective Date of this Agreement, Developer shall pay City past due taxes on cannabis operations pursuant to the promissory note as provided by the Settlement Agreement.

Section 4.5. Reporting. Developer shall provide City with copies of any reports provided to a State Licensing Authority within forty-five (45) days of that submission.

Any failure or refusal of Developer to provide any statement or report to City, the State Taxing Authority, or any other State Licensing Authority as required within the time required, or to pay such sums due hereunder when the same are due and payable in 14 4909-7736-2578, v. 1
accordance with the provisions of this Agreement, may constitute full and sufficient grounds for the termination of this agreement.

Section 4.6. Records. Developer shall keep records of all Commercial Cannabis Activity in accordance with Chapter 16 (commencing with Section 26160) of Division 10 of the Business and Professions Code and the applicable State Cannabis Regulations.

All records required by this Section shall be maintained and made available for City’s examination and duplication (physical or electronic) at the Property or at an alternate facility as approved in writing by the City Manager or his or her designee. Developer further agrees to provide a copy of the lease between Owner and Tenant, at City’s request.

Section 4.7. Penalty. Developer acknowledges that to ensure proper compliance with the terms of this Agreement and any applicable laws, City must engage in costly compliance review, inspections, and, if necessary, enforcement actions to protect the health, safety, and welfare of its residents. Penalty and interest provisions are necessary to assist City in compliance review and enforcement actions. If Developer fails to make any payment when due as required by this Agreement, City may impose a “NonPerformance Penalty.” A Non-Performance Penalty of one percent (1%) shall be applied to all past due payments. City shall deliver to Developer a “Notice of Non-Performance Penalty,” attached hereto as Exhibit B. Payment of the Non-Performance Penalty shall be in a single installment due on or before a date fifteen (15) days following delivery of the Notice of Non-Performance Penalty.

Section 4.8. Interest on Unpaid Non-Performance Penalty. If Developer fails to pay the Non-Performance Penalty after City has delivered the Notice of Non-Performance Penalty, then, in addition to the principal amount of the Non-Performance Penalty, Developer shall pay City interest at the rate of eighteen percent (18%) per annum, computed on the principal amount of the Non-Performance Penalty, from a date fifteen (15) days following delivery of the Notice of Non-Performance Penalty.

Section 4.9. Termination for Non-Payment: If Developer becomes six months in arrears on any payment as required by this Agreement, including, but not limited to, the City’s Cannabis Business Tax or the payment on the Promissory Note for Past Taxes, this Agreement shall terminate. Developer may appeal the termination to the City Council.

Section 4.10. No Payment Challenge. Developer agrees that they shall not challenge, contest, or seek to invalidate any payments as required by this Agreement including, but not limited to, the Adjusted Public Benefit Payment, the Cannabis Business Tax or the payment of past taxes.

Section 4.11. Taxes by Other Public Agencies. Developer and the Project shall be subject to any and all taxes, assessments, or similar charges or fees of general applicability enacted by the federal government, state government, or County of Stanislaus, including any tax applicable to an area greater than the City limits to which City may be a party (i.e., county tax sharing agreement). 15 4909-7736-2578, v. 1
ARTICLE 5

INSURANCE AND INDEMNITY
Section 5.1. Insurance. Developer shall require all persons doing work on the Project, including its contractors and subcontractors (collectively, “Developer” for purposes of this Article 5 only), to obtain and maintain insurance of the types and in the amounts described in this Article with carriers reasonably satisfactory to City. (a) General Liability Insurance. Developer shall maintain commercial general liability insurance or equivalent form with a limit of not less than Two Million Dollars ($2,000,000) (or as otherwise approved, in writing, by City) per claim and Two Million Dollars ($2,000,000) each occurrence. Such insurance shall also:
(i) Name City, its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives as “Additional Insureds” by endorsement with respect to performance of this Agreement. The coverage shall contain no special limitations on the scope of its protection afforded to the above-listed additional insured.
(ii) Be primary with respect to any insurance or self-insurance programs covering City, its officials, employees, agents, and representatives. (iii) Contain standard separation of insured provisions. (b) Automotive Liability Insurance. If the Developer owns or operates any vehicles that are made part of the Project, Developer shall maintain business automobile liability insurance or equivalent form with a limit of not less than One Million Dollars ($1,000,000) for each accident. Such insurance shall include coverage for owned, hired, and non-owned automobiles. Such insurance shall also:
(i) Name City, its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives as Additional Insureds by endorsement with respect to performance of this Agreement. The coverage shall contain no special limitations on the scope of its protection afforded to the above-listed Additional Insureds. (ii) Be primary with respect to any insurance or self-insurance programs covering City, its officials, employees, agents, and representatives. (iii) Contain standard separation of insured provisions. (c) Workers’ Compensation Insurance. Developer shall take out and maintain during the Term of this Agreement, workers’ compensation insurance for all of Developer’s employees employed at or on the Project and, should any of the work be subcontracted, Developer shall require any general contractor or subcontractor similarly to provide workers’ compensation insurance for such contractor’s or subcontractor’s employees, unless such employees are covered by the protection afforded by Developer.

In case any class of employee engaged in work on the Project is not protected under any workers’ compensation law, Developer shall provide and shall cause each contractor and 16 4909-7736-2578, v. 1
subcontractor to provide adequate insurance for the protection of employees not otherwise protected. Developer hereby indemnifies City for any damage resulting from failure of Developer, its agents, employees, contractors, or subcontractors to take out or maintain such insurance. Workers’ compensation insurance with statutory limits and employer’s liability insurance with limits of not less than One Million Dollars ($1,000,000) for each accident shall be maintained by Developer.

Section 5.2. Other Insurance Requirements. Developer shall do all of the following:
(a) Prior to taking any actions under this Agreement, furnish City with properly executed certificates of insurance that clearly evidence all insurance required in this Article, including evidence that such insurance will not be canceled, allowed to expire, or materially reduced in coverage without thirty (30) days prior written notice to City. (b) Provide to City, upon request, and within seven (7) days of said request, certified copies of endorsements and policies, and properly executed certificates of insurance evidencing the insurance required herein.
(c) Replace or require the replacement of certificates, policies, and endorsements for any insurance required herein expiring prior to the termination of this Agreement.
(d) Maintain all insurance required herein from the Effective Date of this Agreement to the earlier of the expiration of the Term or the mutual written termination of this Agreement.
(e) Place all insurance required herein with insurers licensed to do business in California with a current Best’s Key Rating Guide reasonably acceptable to City.

Section 5.3. Indemnity. To the fullest extent permitted by law, Developer shall indemnify and hold harmless City and its agents, elected and appointed officials, officers, employees, consultants, and volunteers (collectively, “City’s Agents”) from any and all liability arising out of a claim, action, or proceeding against City, or City’s Agents, to attack, set aside, void, or annul an approval concerning the Project, this Agreement, any applicable Conditional Use Permit, or Subsequent City Approvals. Developer shall acknowledge its indemnification obligations by execution of the form included as Exhibit C attached hereto (“Indemnification Agreement”). Pursuant to Section 5.4, Developer shall also defend City and City’s Agents from any and all liability arising out of a claim, action, or proceeding against City, or City’s Agents, to attack, set aside, void, or annul an approval concerning the Project, this Agreement, any applicable Conditional Use Permit, or Subsequent City Approvals.

Section 5.4. Failure to Indemnify and Defend.
(a) Failure to Indemnify; Waiver. Failure by Developer to indemnify City, when required by this Agreement and the Indemnification Agreement, shall constitute a material breach of this Agreement and of any applicable Conditional Use Permit and Subsequent City Approvals, which shall entitle City to all remedies available under law, 17 4909-7736-2578, v. 1
including, but not limited to, specific performance and damages. Failure to indemnify shall constitute grounds upon which City may rescind its approval of any applicable Conditional Use Permit. Developer’s failure to indemnify City shall be a waiver by Developer of any right to proceed with the Project, or any portion thereof, and a waiver of Developer’s right to file a claim, action or proceeding against City or City’s Agents based on City’s rescission or revocation of any Conditional Use Permit, Subsequent City Approvals, or City’s failure to defend any claim, action, or proceeding based on Developer’s failure to indemnify City.
(b) Failure to Defend; Waiver. Developer shall have the option to defend City and City’s Agents from any and all liability arising out of a claim, action, or proceeding against City, or City’s Agents, to attack, set aside, void, or annul an approval concerning the Project, this Agreement, any applicable Conditional Use Permit, or Subsequent City Approvals. Developer’s failure to defend City or City’s Agents shall be a waiver by Developer of any right to proceed with the Project, or any portion thereof, and a waiver of Developer’s right to file a claim, action or proceeding against City or City’s Agents based on City’s rescission or revocation of any Conditional Use Permit, Subsequent City Approvals, or City’s failure to defend any claim, action, or proceeding based on Developer’s failure to defend City.

Section 5.5. Waiver of Damages. Notwithstanding anything to the contrary in this Agreement, the City would not have entered into this Agreement if it was exposed to liability from the Developer for any indirect, incidental, consequential, or special damages and therefore, Developer hereby waives any and all claims for indirect, incidental, consequential, or special damages against the City arising out of or relating to this Agreement. Developer further acknowledges that under the Development Agreement Statute, land use approvals (including development agreements) must be approved by the City Council and that, under law, the City Council's discretion to vote in any particular way may not be constrained by contract. Developer therefore waives all claims for damages against City in the event that this Agreement or any Project approval is: (1) not approved by the City Council or (2) is approved by the City Council, but with new changes, amendments, conditions, or deletions to which Developer is opposed. Developer further acknowledges that, as an instrument which must be approved by ordinance, a development agreement is subject to referendum; and that, under law, the City Council's discretion to avoid a referendum by rescinding its approval of the underlying ordinance may not be constrained by contract, and Developer waives all claims for damages against City in this regard.

ARTICLE 6

MORTGAGEE PROTECTION
This Agreement, once executed and recorded, shall be superior and senior to any lien placed upon the Property or any portion thereof following recording of this Agreement, including the lien of any deed of trust or mortgage (“Mortgage”). Notwithstanding the foregoing, no breach hereof shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value. This Agreement shall immediately be deemed in default and immediately terminate upon the foreclosure or transfer of any interest in the Property or Project, whether by operation of law or any other method of interest change 18 4909-7736-2578, v. 1
or transfer, unless the City Manager has authorized such change or transfer in advance, in writing. City agrees to not unreasonably withhold its authorization.

ARTICLE 7

DEFAULT
Section 7.1. Default. Failure or unreasonable delay by either Party to perform any term or condition of this Agreement shall constitute a default. In the event of default, the Party alleging such default or breach shall give the other Party not less than thirty (30) days’ notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured. During any such 30-day period, the Party charged shall not be considered in default for purposes of termination of this Agreement or institution of legal proceedings. After notice and expiration of the 30-day period, if such default has not been cured or cure is not being diligently pursued in the manner set forth in the notice, the charging Party may at its option: (i) terminate this Agreement, in which event neither Party shall have any further rights against or liability to the other with respect to this Agreement, or (ii) institute legal or equitable action to cure or remedy any default.

Section 7.2. Annual Review. City shall, at least every twelve (12) months during the Term of this Agreement, review the extent of good faith, substantial compliance of Developer and City with the terms of this Agreement. Such periodic review by City shall be limited in scope to compliance with the terms of this Agreement pursuant to California Government Code section 65865.1. City shall deposit in the mail or fax to Developer a copy of all staff reports and, to the extent practical, related exhibits concerning this Agreement or the Project’s performance, at least seven (7) days prior to such periodic review. Developer shall be entitled to appeal a determination of City or the City Manager to the City Council. Any appeal must be filed within ten (10) days of the decision of City or the City Manager, respectively. Developer shall be permitted an opportunity to be heard orally or in writing regarding its performance under this Agreement before City, the City Manager, or the City Council, as applicable. The reasonable cost for City's annual review of this Agreement shall be paid by Developer, not to exceed the actual costs incurred by City in connection with the review.

Section 7.3. Estoppel Certificates.
(a) City shall, with at least twenty (20) days prior written notice, execute, acknowledge, and deliver to Developer, Developer’s lender, potential investors, or assignees an Estoppel Certificate in writing which certifies that this Agreement is in full force and effect, that there are no breaches or defaults under the Agreement, and that the Agreement has not been modified or terminated and is enforceable in accordance with its terms and conditions.
(b) At Developer’s option, City’s failure to deliver such Estoppel Certificate within the stated time period shall be conclusive evidence that the Agreement is in full force and effect, that there are no uncured breaches or defaults in Developer’s performance of the Agreement or violation of any City ordinances, regulations, and 19 4909-7736-2578, v. 1
policies regulating the use and development of the Property or the Project subject to this Agreement.

Section 7.4. Cumulative Remedies of Parties. In addition to any other rights or remedies, City or Developer may institute legal or equitable proceedings to cure, correct, or remedy any default, enforce any covenant, or enjoin any threatened or attempted violation of the provisions of this Agreement.

Section 7.5. Forced Delay, Extension of Times of Performance. Delays in performance, by either Party, shall not be deemed a default if such delays or defaults are due to war, insurrection, strikes, walkouts, riots, floods, earthquakes, fires, casualties, acts of God, governmental restrictions imposed where mandated by governmental entities other than City, enactment of conflicting state or federal laws or regulations, new or supplementary environmental regulations enacted by the state or federal government, litigation, or other force majeure events. An extension of time for such cause shall be in effect for the period of forced delay or longer, as may be mutually agreed upon.

Section 7.6. Appeals. Developer may appeal any adverse decision or action of City pursuant to Patterson Municipal Code Chapter 1.36.

ARTICLE 8

TERMINATION
Section 8.1. Termination. This Agreement shall terminate upon the expiration of the Term, unless it is terminated earlier pursuant to the terms of this Agreement. Upon termination of this Agreement, City agrees to provide Developer with a release or such other document as may be required to remove this Agreement as an encumbrance on the title of the Property.

Section 8.2. Effect of Termination. Termination of this Agreement shall eliminate any further obligation of any Party to comply with this Agreement, or some portion thereof (if such termination relates to only part of the Property or Project). Termination of this Agreement, in whole or in part, shall not, however, eliminate the rights of either Party to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination. Any existing Conditional Use Permit may be terminated as provided by the terms of the permit or applicable law.

Section 8.3. Survival After Termination. Any right or obligation of the Parties in this Agreement which, by its express terms or nature and context is intended to survive termination of this Agreement, will survive any such termination.

ARTICLE 9

OTHER GENERAL PROVISIONS
Section 9.1. Assignment and Assumption. Developer shall not have the right to sell, assign, or transfer all or any part of its rights, title, and interests in all or a portion of the Project, subject to or a part of this Agreement, to any person, firm, corporation, or entity during the Term of this Agreement without the advance written consent of the City 20 4909-7736-2578, v. 1
Manager, which shall not be unreasonably withheld or delayed. This assignment prohibition applies to the corporate and business entities of Developer that are a Party to this Agreement. Any assignment or transfer prohibited by this Agreement will be considered an immediate breach of this Agreement and City may elect to immediately terminate this Agreement. If the City Manager approves an assignment or transfer of any interest detailed in this Section 9.1, City and Developer shall execute an “Assignment and Assumption Agreement” to be recorded on the title to the Property.

Section 9.2. Covenants Running with the Land. This Agreement is an instrument affecting title to the real property described in Exhibit A attached hereto. All terms, covenants, and conditions contained herein shall run with the land and be binding on all parties having or acquiring any legal title or interest in the lands described in Exhibit A or any part thereof. Developer shall provide any successors to any part of the Property with a copy of this Agreement. The failure of Developer to provide a copy of this Agreement to any successor to any part of the Property shall in no way affect the rights of City to require performance of the obligations under this Agreement.

Section 9.3. Notices. Any and all notices or other communications related to this Agreement shall be in writing and shall be deemed received when: (a) personally delivered to the Party to whom they are directed; or (b) the earlier of actual receipt or five (5) days following delivery by registered or certified U.S. mail (return receipt requested); or (c) if given by Federal Express or similar courier, on the date delivered, as shown on a receipt issued by the courier; or (d) delivered by email, based on the date shown on the sent email (provided that in the event of default or a Non-Performance Penalty, such notice shall also be provided by one of the other methods specified herein). Either Party may change its address information by giving ten (10) days advance written notice of such change to the other Party. Notices and communications will be addressed to the Parties as follows:

If to City: City of Patterson
1 Plaza
Patterson, California 95363
Attention: City Manager
Email: [email protected]
and White Brenner LLP
1608 T Street
Sacramento, California 95811
Attention: Nubia Goldstein, Esq.

Email: [email protected]
If to Owner: Eagle Valley Investments Inc.
515 Keystone Blvd.

Patterson, CA 95363
If to Tenant: Central Valley – Sierra Associates
100 West Las Palmas Avenue, Suite H
21 4909-7736-2578, v. 1
Patterson, CA 95363
Attn: Sadie Schut
Email:
and South Cord Management LLC
401 Pine Avenue
Long Beach, CA 90802
Attn:

Email:

Section 9.4. Governing Law and Binding Arbitration. The validity, interpretation, and performance of this Agreement shall be controlled by and construed pursuant to the laws of the State of California. Any dispute, claim, or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation, or validity thereof, including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by binding arbitration in Sacramento, California, before one arbitrator.

The arbitration shall proceed pursuant to the Comprehensive Arbitration Rules and Procedures of the Judicial Arbitration and Mediation Services (“JAMS”). Judgment on the award may be entered in any court having jurisdiction thereof.

Section 9.5. Invalidity of Agreement / Severability. If this Agreement in its entirety is determined by an arbitrator or court of competent jurisdiction to be invalid or unenforceable, this Agreement shall automatically terminate as of the date of final entry of judgment. If any term or provision of this Agreement shall be determined by an arbitrator or court of competent jurisdiction to be invalid and unenforceable, or if any term or provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, any provisions that are not invalid or unenforceable shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement. The Parties expressly agree that each Party is strictly prohibited from failing to perform any and all obligations under this Agreement on the basis that this Agreement is invalid, unenforceable, or illegal. By entering into this Agreement, each Party disclaims any right to tender an affirmative defense in any arbitration or court of competent jurisdiction, that performance under this Agreement is not required because the Agreement is invalid, unenforceable, or illegal.

Section 9.6. Cumulative Remedies. In addition to any other rights or remedies, City and Developer may institute legal or equitable proceedings to cure, correct, or remedy any default, to specifically enforce any covenant or agreement herein, or to enjoin any threatened or attempted violation of the provisions of this Agreement. The prevailing party in any such action shall be entitled to reasonable attorneys’ fees and costs.

Notwithstanding the foregoing or any other provision of this Agreement, in the event of City default under this Agreement, Developer agrees that Developer may not seek, and shall forever waive any right to, monetary damages against City, but excluding therefrom the right to recover any fees or charges paid by Developer in excess of those permitted hereunder.
22 4909-7736-2578, v. 1
Section 9.7. Constructive Notice and Acceptance. Every person who, after the Effective Date and recording of this Agreement, owns or acquires any right, title, or interest to any portion of the Property is and shall be conclusively deemed to have consented and agreed to every provision contained herein, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Property, and all rights and interests of such person in the Property shall be subject to the terms, requirements, and provisions of this Agreement.

Section 9.8. Statute of Limitations and Laches. City and Developer agree that each Party will undergo a change in position in detrimental reliance upon this Agreement from the time of its execution and subsequently. The Parties agree that section 65009(c)(1)(D) of the California Government Code, which provides for a ninety (90) day statute of limitations to challenge the adoption of this Agreement, is applicable to this Agreement.

In addition, any person who may challenge the validity of this Agreement is hereby put on notice that, should the legality or validity of this Agreement be challenged by any third party in litigation, which is filed and served more than ninety (90) days after the execution of this Agreement, City and Developer shall each assert the affirmative defense of laches with respect to such challenge, in addition to all other available defenses. This Section in no way limits the right of a Party, claiming that the other Party breached the terms of this Agreement, to bring a claim against the other Party within the four (4) year statute of limitations set forth in Section 337 of the California Civil Code.

Section 9.9. Joint and Several Liability. Developer shall be jointly and severally liable for any amount due under this Agreement, and any breach of this Agreement or failure to pay by one Party shall also constitute a breach of this Agreement by the other Party.

Developer agree that City may impose a lien and seek foreclosure on any parcel of the Property due to any default by Developer.

Section 9.10. Change in State Regulations. In no event shall Developer operate the Project in violation of this Agreement, or State Cannabis Regulations, as may be amended from time to time.

Section 9.11. Standard Terms and Conditions.
(a) Venue. Venue for all legal proceedings shall be the JAMS Resolution Center in Sacramento, California.
(b) Waiver. A waiver by any Party of any breach of any term, covenant, or condition herein contained or a waiver of any right or remedy of such Party available hereunder, at law or in equity, shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition herein contained or of any continued or subsequent right to the same right or remedy. No Party shall be deemed to have made any such waiver unless it is in writing and signed by the Party so waiving. 23 4909-7736-2578, v. 1
(c) Completeness of Instrument. This Agreement, together with its specific references, attachments, and Exhibits, constitutes all of the agreements, understandings, representations, conditions, warranties, and covenants made by and between the Parties hereto. Unless set forth herein, no Party to this Agreement shall be liable for any representations made, express or implied.
(d) Supersedes Prior Agreement. It is the intention of the Parties hereto that this Agreement shall supersede any prior agreements, discussions, commitments, or representations, written, electronic, or oral, between the Parties hereto with respect to the Property and the Project.
(e) Captions. The captions of this Agreement are for convenience and reference only and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Agreement.
(f) Number and Gender. In this Agreement, the neuter gender includes the feminine and masculine, and the singular includes the plural, and the word “person” includes corporations, partnerships, firms, or associations, wherever the context requires. (g) Mandatory and Permissive. “Shall” and “will” and “agrees” are mandatory. “May” or “can” are permissive.
(h) Counterparts. This Agreement may be executed simultaneously and in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.
(i) Other Documents. The Parties agree that they shall cooperate in good faith to accomplish the objectives of this Agreement and, to that end, agree to execute and deliver such other instruments or documents as may be necessary and convenient to fulfill the purposes and intentions of this Agreement. (j) Time is of the Essence. Time is of the essence in this Agreement in each covenant, term, and condition herein.
(k) Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states, or firms and that all former requirements necessary or required by state or federal law in order to enter into this Agreement had been fully complied with. Further, by entering into this Agreement, no Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.
(l) Document Preparation. This Agreement will not be construed against the Party preparing it, but will be construed as if prepared by all Parties. 24 4909-7736-2578, v. 1
(m) Advice of Legal Counsel. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered into this Agreement.
(n) Attorney’s Fees and Costs. If any action at law or in equity, including action for declaratory relief, is brought to enforce or interpret provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorney's fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled. (o) Calculation of Time Periods. All time referenced in this Agreement shall be calendar days, unless the last day falls on a legal holiday, Saturday, or Sunday, in which case the last day shall be the next business day.

IN WITNESS WHEREOF, this Agreement has been entered into by and between Developer and City as of the Effective Date of the Agreement, as defined above. “CITY”
Date: , 2026

CITY OF PATTERSON, CA
a California Municipal Corporation
By: __________________________
Fernando Ulloa
City Manager
Attest:

By: ___________________________
Aracely Alegre
City Clerk
Approved as to Form:

By: _________________________
Nubia Goldstein
City Attorney
“OWNER”
Date: , 2026
EAGLE VALLEY INVESTMENTS INC.,
a California Corporation
By: _________________________
Its: _________________________
“TENANT”
Date: , 2026
CENTRAL VALLEY – SIERRA ASSOCIATES,
a California corporation
By:

Sadie A. Schut,
President/Secretary/Chief Financial Officer
25 4909-7736-2578, v. 1
Date: , 2026
SOUTH CORD MANAGEMENT LLC, a
California limited liability company
By:

Its: _________________________
4909-7736-2578, v. 1
California All-Purpose Acknowledgment
State of California )
)
County of )
On , before me , a Notary
Public, personally appeared who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

Witness my hand and official seal.

(Signature)
(Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 4909-7736-2578, v. 1

EXHIBIT A
Legal Description of Property

4909-7736-2578, v. 1

EXHIBIT B
Notice of Non-Performance Penalty

DATE: _________________, 20___
PARTIES: CITY OF PATTERSON, a California municipal corporation P.O. Box 667
1 Plaza
Patterson, California 95363
______________________________
______________________________
______________________________
______________________________
THIS NOTICE OF NON-PERFORMANCE PENALTY (“Penalty Notice”) is being executed by the City of Patterson, a California municipal corporation (“City”), with reference to the following.

A. By Instrument No. _____________, which was recorded in the Official Records of Stanislaus County, California on ________________, 20___, City recorded a development agreement between City and _____________________ dated ______________, 20__ (the “Development Agreement”), relating to the development and operation of a cannabis dispensary.

B. Pursuant to Sections 4.2, 4.3, and 4.4 of the Development Agreement, Developer is obligated to make certain payments to City, including the Adjusted Public Benefit, the City's Cannabis Business Tax, and payments on the Promissory Note for past due taxes.

C. On ________, 20__, a payment in the amount of $__ was due to City by Developer under Section ____ of the Development Agreement. City did not receive payment.

D. Pursuant to Section 4.7 of the Development Agreement, if Developer fails to make payment when it is due, City may impose a penalty of one percent (1%) of the total of the past due amounts (“Penalty”). As of ____________, 20__, the past due amount equals $_________.

The Penalty owed by Developer equals $____________ (“Penalty Amount”).

E. Pursuant to Section 4.7 of the Development Agreement, Developer shall make payment of the Penalty Amount in a single installment due within fifteen (15) days of delivery of this Penalty Notice (“Penalty Due Date”).

F. Pursuant to Section 4.8 of the Development Agreement, if Developer fails to pay the Penalty Amount before the Penalty Due Date, then in addition to the Penalty Amount 4909-7736-2578, v. 1
specified in subdivision (D), Developer shall pay City interest on the Penalty Amount, at the rate of eighteen percent (18%) per annum (“Penalty Interest Payment”), computed from the Penalty Due Date specified in subdivision (E). As of ____________, 20__, the Penalty Interest Payment amount equals $_________.

G. Nothing contained herein shall constitute a waiver of City’s future claims for any payments due under the Development Agreement, the Penalty, or interest on the Penalty.

NOW, THEREFORE, City hereby provides Developer the Penalty Notice required by Section 4.7 of the Development Agreement. This Penalty Notice shall be effective upon notice pursuant to Section 9.3 of the Development Agreement.

CITY OF PATTERSON,
a California municipal corporation
By:
____________________, City Manager

4909-7736-2578, v. 1

EXHIBIT C
Indemnification Obligations of Developer

1. Indemnification for Project Approvals. To the fullest extent permitted by law, Developer shall indemnify, and hold harmless City and its agents, elected and appointed officials, officers, employees, and volunteers (collectively, “City’s Agents”) from any and all liability arising out of a claim, action, or proceeding against the City, or City’s Agents, to attack, set aside, void, or annul, any approval concerning the Project by reason of the action or inaction of City or City’s Agents. Developer’s duty to indemnify and hold harmless shall not extend to any claim, action or proceeding arising from the gross negligence or willful misconduct of City, or City’s Agents.

Developer’s obligations under this Agreement to indemnify City shall apply to any claim, lawsuit or challenge against City brought against the Project, specifically including, but not limited to, any legal challenge based on the California Environmental Quality Act, codified in California Public Resources Code section 21000 et seq.; actions or proceedings brought to challenge the validity of environmental documents prepared in conjunction with the approval of the Project; the Development Agreement; or the requirements of any other federal, state, or local laws, including, but not limited to, general plan, specific plan, and zoning requirements.

2. Tender of Defense. Upon receiving notice of a claim, Developer shall assume the defense of the claim, action, or proceeding through the prompt payment of all attorneys’ fees and costs, incurred in good faith and in the exercise of reasonable discretion, of City’s counsel in defending such an action. City shall have the absolute and sole authority to control the litigation and make litigation decisions, including, but not limited to, selecting counsel to defend City and settlement or other disposition of the matter.

3. Deposit for Costs. Developer shall make a refundable deposit to the City within thirty (30) days of written notification from the City (“Cost Deposit”), to cover the estimated fees and costs associated with the City’s defense of any claim, action or proceeding. Developer shall make any and all additional payments to City to replenish the Cost Deposit within thirty (30) days of written notice from City.

4. Failure to Indemnify; Waiver. Failure to indemnify City, when required by this Agreement, shall constitute a material breach of this Agreement, which shall entitle City to all remedies available under law including, but not limited to, specific performance and damages.

Failure to indemnify shall constitute grounds upon which City may rescind any approval concerning the Project. Developer’s failure to indemnify City shall be a waiver by Developer of any right to proceed with the Project, or any portion thereof, and a waiver of Developer’s right to file a claim, action or proceeding against City or City’s Agents based on City’s rescission or revocation of the Project, or City’s failure to defend any claim, action or proceeding based on Developer’s failure to indemnify City.
4909-7736-2578, v. 1

5. Satisfaction of Judgment. With respect to any claims, demands, acts, causes of action, damages, costs, expenses, settlements, losses or liabilities which Developer has indemnified City against, Developer shall pay and satisfy any judgment, award, settlement or decree that may be rendered or agreed against City and City’s Agents arising out of any final, nonappealable judicial or administrative action.

6. Payment of Costs and Fees. Developer’s obligations under this Agreement to defend and indemnify City shall include, but are not be limited to, payment of all court costs and attorneys’ fees, all litigation-related costs, all costs of any judgments or awards against City, or all settlement costs which arise out of City’s processing or approval of the Project.

7. Continuing Obligation. Developer shall be and remain personally obligated to all of the terms of this Agreement, notwithstanding any attempt to assign, delegate or otherwise transfer all or any of the rights or obligations of this Agreement, and notwithstanding a change in or transfer of ownership of the real property upon which the Project is located (or any interest therein). However, Developer may be released from such indemnification obligations if Developer obtains City’s written consent to such release, which consent shall not be unreasonably withheld.

EXECUTED AND ACKNOWLEDGED BY:

CENTRAL VALLEY – SIERRA ASSOCIATES,
a California corporation
By:

Print:

Its: _____________________________
Date: _______________
SOUTH CORD MANAGEMENT LLC, a California limited liability company By:

Print:

Its: _____________________________
Date: _______________

4909-7736-2578, v. 1

EXHIBIT D
Development Agreement Ordinance
4909-7736-2578, v. 1

EXHIBIT E
Settlement Agreement

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Christina M. Pritchard, Deputy City Attorney

MEETING
DATE:

October 6, 2026
ITEM: 9.1
SUBJECT : Adopt a Resolution No. 2026-62 establishing the Data Center Community Advisory Committee; select the committee structure and appointment options described in this report; appoint two Councilmembers to the Committee or direct that those appointments return on a future agenda; and authorize the City Clerk to recruit applicants for the public-member seats

RECOMMENDATION
Motion to Adopt Resolution No. 2026-62 establishing the Data Center Community Advisory Committee; select the committee structure and appointment options described in this report; appoint two Councilmembers to the Committee or direct that those appointments return on a future agenda; and authorize the City Clerk to recruit applicants for the public-member seats.

BACKGROUND
On July 16, 2026, the City Council adopted Urgency Ordinance No. 889, establishing a temporary moratorium on approval of data center land uses. The moratorium allows the City to evaluate potential impacts and develop appropriate local regulations. Staff and legal counsel have reviewed existing City regulations, approaches used by other jurisdictions, infrastructure and utility capacity, environmental and public-health considerations, public-safety needs, landuse options, and potential development and design standards.

The study topics include water and wastewater demand, energy and infrastructure capacity, fire protection and emergency response, air emissions and noise, hazardous materials, land-use compatibility, community design, and fiscal and community effects. Following a public presentation and discussion regarding public participation, the City Council selected a community advisory committee that includes two Councilmembers and directed staff to return with the actions needed to form and administer the Committee.

The proposed Committee would provide a structured public forum, receive technical information, review potential regulatory approaches, and make recommendations to the Planning Commission and City Council. The Committee would be advisory only and would have no authority to approve regulations, direct staff, authorize expenditures, or act on any individual development application.

Because the City Council will formally create a multimember committee that includes Councilmembers and members of the public, the Committee will be a legislative body subject to the Ralph M. Brown Act. The attached resolution establishes the Committee’s purpose, membership, appointment process, operating rules, staff support, and sunset date.

DISCUSSION
A. Committee Purpose and Scope
The Committee’s charge should remain tied to the current data center study and the preparation of potential City regulations. A defined charge will keep the Committee’s work manageable and provide a clear point at which its work concludes.
• Receive presentations and background materials from City staff, legal counsel, consultants, utilities, service providers, and other invited subject-matter resources. • Provide a public forum for discussion of potential data center impacts and regulatory responses.
• Review proposed policy concepts, development standards, design standards, and review procedures prepared by staff.
• Identify areas of agreement and disagreement and provide written recommendations to the Planning Commission and City Council.
• Complete its recommendations within the schedule established by the City Council and the City Manager.

The Committee would not review or negotiate any specific development proposal, make commitments on behalf of the City, direct City employees or consultants, retain professional services, expend City funds, or exercise any final decision-making authority.

B. Committee Structure Options
The Council should select the following organizational terms as part of the motion. The attached resolution reflects the recommendations shown below, but may be revised during Council consideration.

Issue Recommendation Alternative Options
Committee size
Seven voting members: two
Councilmembers and five public
members.

Five members (2 + 3) or nine
members (2 + 7).

Public-member eligibility
Limit all public seats to City
residents; or create designated
subject-area seats.

Applicant must reside, own property,
own a business, or work within the
City. Council considers balanced
perspectives and relevant experience.

Appointment method
Council appoints all public members
by majority vote after an open
application period.

Each Councilmember nominates one
public member, subject to Council
confirmation; or Mayor nominates
members for Council confirmation.

Meeting schedule
One regular evening meeting each
month, with special meetings when
necessary.

Twice-monthly meetings; or special
meetings only.

Duration
Committee sunsets upon final
Council action on comprehensive
data center regulations or June 30,
2027, whichever occurs first, unless
extended by Council.

Sunset only upon final Council
action; or select another fixed date.

C. Membership and Appointments
Councilmembers. The Committee may include two Councilmembers appointed by the City Council. The City Council may make those appointments when it forms the Committee or may direct staff to return with the appointments at the same meeting at which the public members are selected. The two Councilmembers have the same voting rights as the public members.

Public Members. Under the recommended structure, the City Clerk would conduct an application period of at least 20 days. Recruitment would occur through the City website, social media, community mailing lists, and other available outreach channels. The application should request relevant experience, interests, availability, and disclosure of financial or professional relationships that may bear on the Committee’s work. The Council would make all appointments in open session.

Vacancies and Removal. Members would serve at the pleasure of the City Council. The City Council may remove a member for any reason by majority vote. A public-member vacancy would be filled by Council appointment. Unscheduled vacancies are subject to the notice and waiting-period requirements of Government Code section 54974.

Legal Support. Because the Committee must complete its work within the remaining term of the data center moratorium, staff recommends that the City Attorney or a designee attend Committee meetings. Legal participation will allow the Committee to receive immediate guidance regarding the legal limits of potential recommendations, resolve procedural and legal questions as they arise, and reduce delays that could otherwise result from postponing discussion until a later meeting. Legal counsel may also review proposed recommendations before the Committee forwards them to the Planning Commission and City Council.

D. Organization and Meetings
Recommended Protocol:
• At its first meeting, the Committee will elect a Chair and Vice Chair from among its members and adopt a regular meeting calendar consistent with the Council’s resolution. • A majority of the appointed voting members constitutes a quorum. Committee recommendations require an affirmative vote of a majority of the members present, unless the Council establishes a different voting rule.
• Members receive no compensation. Reimbursement is available only when authorized in advance and permitted by City policy.
• The Committee may not create subcommittees without prior Council authorization. Any authorized subcommittee must operate consistently with the Brown Act and the terms of the Council’s authorization.
• The City Manager will designate a staff liaison. Community Development will coordinate the work program, with support from the City Clerk, City Attorney, Public Works, utilities, public safety, and other departments as needed.
• Staff will prepare agendas and minutes, maintain Committee records, coordinate presentations and materials, and provide reasonable administrative support within available resources. The Committee may request information through the staff liaison but may not independently assign work to City staff or consultants. • The City Attorney may advise the Committee regarding the scope of its authority, applicable open-meeting and public-records requirements, land-use and environmental law, conflicts of interest, and other legal parameters relevant to the Committee’s work. The City Attorney may also review proposed recommendations and respond to legal questions during meetings to facilitate timely development of recommendations within the term of the City’s data center moratorium.
• Committee members shall preserve records relating to City business.

E. Ralph M. Brown Act
Government Code section 54952, subdivision (b), applies the Brown Act to a commission, committee, board, or other body created by formal action of a legislative body, whether permanent or temporary and whether decision-making or advisory. The exception for a temporary advisory committee composed solely of less than a quorum of the Council does not apply because this Committee will include members of the public. Committee meetings must therefore be open and public, with agendas and public-comment opportunities provided as required by law. Regularmeeting agendas require at least 72 hours’ notice, and special meetings generally require at least 24 hours’ notice. (Gov. Code, §§ 54954.2, 54954.3, 54956.)

FISCAL IMPACT
Formation and operation of the Committee will require staff time for recruitment, agenda preparation, meeting attendance, minutes, public-records administration, technical presentations, and legal support. Evening meetings may also result in overtime or other personnel costs. Existing consultants may assist within their authorized scopes and budgets. The proposed action does not authorize a new consultant contract or additional appropriation. Staff will return to the Council if the Committee’s work program requires funding beyond existing appropriations.

The anticipated fiscal impact also includes City Attorney time for meeting attendance, agenda and materials review, responses to Committee questions, and review of proposed recommendations

ENVIRONMENTAL REVIEW
Formation of an advisory committee is an organizational and administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment and is therefore not a project under the California Environmental Quality Act. Any later regulatory action recommended through this process will receive the environmental review required at that time.

ALTERNATIVES

1. Adopt the resolution with different selections from the organizational options in this report.

2. Direct staff to return with revisions to the Committee’s charge, membership, appointment process, schedule, or sunset provision.

3. Form the Committee but defer Councilmember appointments or public-member recruitment to a later meeting.

4. Decline to form the Committee and direct staff to use another public-engagement process.

ATTACHMENTS
Resolution No. 2026-62
RESOLUTION NO. 2026-62

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON

ESTABLISHING THE DATA CENTER COMMUNITY ADVISORY COMMITTEE WHEREAS, on July 16, 2026, the City Council adopted Urgency Ordinance No. 889 establishing a temporary moratorium on the approval of data center land uses within the City; and WHEREAS, the City is studying potential effects of data center development on water and wastewater service, energy and public infrastructure, fire and emergency response, air quality, noise, hazardous materials, land use, community design, and fiscal and community conditions; and WHEREAS, the City Council desires additional public participation through a temporary advisory committee that includes two members of the City Council and members of the public; and WHEREAS, the Committee will provide advice and recommendations but will not exercise final decision-making authority; and
WHEREAS, because the Committee is created by formal action of the City Council, it is a legislative body subject to the Ralph M. Brown Act pursuant to Government Code section 54952, subdivision (b); and
WHEREAS, establishment of the Committee is an organizational and administrative activity that is not a project for purposes of the California Environmental Quality Act.

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

Section 1. Establishment and Name
The City Council hereby establishes the Data Center Community Advisory Committee, referred to in this Resolution as the Committee.

Section 2. Purpose
The Committee shall serve as a temporary advisory body to provide a public forum, receive information, review potential regulatory approaches, and make recommendations concerning the City’s data center study and potential data center regulations.

Section 3. Scope of Work
(a) Receive presentations and written materials from City staff, legal counsel, consultants, utilities, service providers, and invited subject-matter resources. (b) Receive and consider public comment concerning data center impacts and potential regulatory responses.
(c) Review policy concepts, development standards, design standards, and review procedures prepared by City staff.
(d) Identify areas of agreement and disagreement and transmit written recommendations to the Planning Commission and City Council within the City’s data center study schedule.

Section 4. Limits on Authority
The Committee is advisory only. It shall not approve regulations, review or negotiate a specific development proposal, bind the City, direct City staff or consultants, retain professional services, authorize expenditures, create a subcommittee without prior Council approval, or exercise any final decision-making authority.

Section 5. Membership
The Committee shall consist of seven voting members: two City Councilmembers appointed by the City Council and five public members appointed by the City Council.

A public member must be at least 18 years of age and a resident of the City of Patterson. In making appointments, the Council shall seek a range of community perspectives and experience relevant to the Committee’s work.

Section 6. Appointment Terms, Vacancies, and Removal
Councilmember appointments shall continue until replaced by the City Council or until the Committee terminates. Public members shall serve at the pleasure of the City Council until the Committee terminates. The City Council may remove any member for any reason by majority vote.

Vacancies shall be filled by Council appointment in compliance with applicable law. Three consecutive unexcused absences may be treated as a resignation after notice to the member and confirmation by the City Council.

Section 7. Officers and Voting
At its first meeting, the Committee shall elect a Chair and Vice Chair from among its members. A majority of the appointed voting members constitutes a quorum. Each member has one vote. A recommendation or other action requires an affirmative vote of a majority of the members present when a quorum exists.

Section 8. Meetings and Brown Act Compliance
The Committee shall conduct one regular meeting each month at a City facility accessible to the public, on a date and time established at its first meeting and reflected in its adopted regular meeting calendar. The Chair may request a special meeting when necessary, subject to staff availability and applicable notice requirements.

All meetings shall comply with the Brown Act and other applicable law, including agenda, notice, access, public-comment, teleconference, and records requirements. The Committee shall follow City meeting procedures and any rules adopted by the City Council that apply to City boards, commissions, and committees.

Section 9. Staff Support and Records
The City Manager shall designate a staff liaison. City staff shall prepare agendas and minutes, maintain Committee records, coordinate presentations and materials, and provide reasonable administrative support within available resources. The Committee may request information through the staff liaison but may not independently assign work to City staff or consultants. Committee members shall preserve records relating to City business and use City-provided communication methods when available.

The City Attorney, or the City Attorney’s designee, is authorized and requested to attend each regular meeting of the Committee and any special meeting at which legal issues may reasonably arise. The City Attorney may advise the Committee regarding the scope of its authority, applicable open-meeting and public-records requirements, land-use and environmental law, conflicts of interest, and other legal parameters relevant to the Committee’s work. The City Attorney may also review proposed recommendations and respond to legal questions during meetings to facilitate timely development of recommendations within the term of the City’s data center moratorium.

The City Attorney represents the City and does not represent Committee members individually. The Committee may not waive any privilege held by the City or direct the City Attorney to undertake work outside the Committee’s authorized scope. Committee members shall preserve records relating to City business.

Section 10. Compensation and Expenses
Members shall serve without compensation. Expenses may be reimbursed only when authorized in advance and permitted by City policy.

Section 11. Duration
The Committee shall terminate upon final City Council action on comprehensive data center regulations or on June 30, 2027, whichever occurs first, unless the City Council extends the Committee by subsequent action.

Section 12. Implementation
The City Manager, City Clerk, and City Attorney are authorized to take all administrative actions reasonably necessary to implement this Resolution, including recruitment of applicants, preparation of applications and notices, scheduling of meetings, and preparation of Committee procedures consistent with this Resolution.

The foregoing resolution was introduced at a regular meeting of the City Council of the City of Patterson held on the 6th of October 2026 by _________________, who moved its adoption, which motion was duly seconded by __________________, and the resolution adopted by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:
__________________________
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
______________________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 6th day of October 2026, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
______________________________________
City Clerk of the City of Patterson