Porterville City Council
June 6, 2023

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1. The State Water Board and the Recipient mutually promise, covenant, and agree to the terms, provisions, and conditions of this Agreement, including the following Exhibits, which are attached hereto or are incorporated by reference:
• Exhibit A – Scope of Work and Schedule
• Exhibit B – Specific Funding Provisions
• Exhibit C – GENERAL TERMS AND CONDITIONS 2019-NOV
• Exhibit D – Special Conditions

2. The following documents are also incorporated by reference:
• the Drinking Water System Permit No. 03-12-06P-004;
• the Davis-Bacon requirements found at:
https://www.waterboards.ca.gov/water_issues/programs/grants_loans/srf/docs/davisbacon/2020_ dwsrf_governmental_entities.pdf

3. Party Contacts during the term of this Agreement are:

State Water Board City of Porterville
Section: Division of Financial Assistance
Name: Pete Stamas, Project Manager Name: Monte Reyes, Mayor Address: 1001 I Street, 16th Floor Address: 291 North Main Street City, State,
Zip:

Sacramento, CA 95814 City, State, Zip: Porterville, CA 93257 Phone: (916) 552-9983 Phone: (559) 782-7499
Fax: Fax:

Email: [email protected] Email: [email protected] Each party may change its contact upon written notice to the other party. While Party Contacts are contacts for day-to-day communications regarding Project work, the Recipient must provide official communications and notices to the Division’s Deputy Director.

4. Conditions precedent to this Agreement are set forth as follows:
(a) The Recipient must deliver an opinion of general counsel satisfactory to the State Water Board’s counsel dated on or after the date that the Recipient signs this Agreement. (b) The Recipient must deliver to the Division a resolution authorizing this Agreement and identifying its authorized representative by title.
(c) The Recipient must deliver to the Division a resolution certifying that its decision-making body reviewed and considered the Mitigated Negative Declaration filed by the State Water Board for the Akin Water Company Water Supply Project together with the Mitigation Monitoring and Reporting Program and reached its own conclusions on whether and how to approve the Project, pursuant to Section 15050 (b) of the CEQA Guidelines.

5. The Recipient represents, warrants, and commits to the following as of the Eligible Work Start Date and continuing thereafter for the term of this Agreement, which shall be at least until the Records Retention End Date:
(a) The Recipient agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents.
(b) The execution and delivery of this Agreement, including all incorporated documents, has been duly authorized by the Recipient. Upon execution by both parties, this Agreement constitutes a valid and binding obligation of the Recipient, enforceable in accordance with its terms, except as such enforcement may be limited by law.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

3pg18xi20
(c) None of the transactions contemplated by this Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of Recipient. The Recipient is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement. The Recipient is able to pay its debts as they become due. The Recipient maintains sufficient insurance coverage considering the scope of this Agreement, including, for example but not necessarily limited to, general liability, automobile liability, workers compensation and employer liability, professional liability. (d) The Recipient is in compliance with all State Water Board funding agreements to which it is a party.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit A
EXHIBIT A – SCOPE OF WORK AND SCHEDULE
A.1. PROJECT PURPOSE AND DESCRIPTION.

The Project is for the benefit of the Recipient and has a Useful Life of at least 40 years. The funding under this Agreement shall be used to provide the residents of two small disadvantaged communities currently served by Akin Water Company (Akin WC) and Central Mutual Water Company (Central MWC) with a sustainable source of safe drinking water.

A.2. SCOPE OF WORK.

The Recipient agrees to do the following: consolidate with Akin WC and Central MWC. Recipient also agrees to construct a new production well, estimated to produce between 1,300 and 1,800 gallons per minute, to provide the needed source capacity for the consolidation of Akin WC, the consolidation of Central MWC, as well as satisfy the remainder of East Porterville residents’ capacity needs.

The Recipient agrees to do the following for the Akin WC service area: construct approximately 1,500 feet of 8-inch waterline to provide water service to each customer currently served by Akin WC; install approximately three new fire hydrants and twenty-six new service laterals and meters; and destroy Akin WC’s two existing wells.

The Recipient agrees to do the following for the Central MWC service area: construct approximately 1,400 feet of 6-inch waterline to provide water service to each customer currently served by Central MWC; install approximately four new fire hydrants and thirty-four new service laterals and meters; and destroy Central MWC’s existing well.

Upon Completion of Construction, the Recipient must expeditiously initiate Project operations.

A.3 SIGNAGE
The Recipient must place a professionally prepared sign at least four feet tall by eight feet wide made of ¾ inch thick exterior grade plywood or other approved material in a prominent location on the Project site and must maintain the sign in good condition for the duration of Project implementation. The sign may include another agency’s required information and must include, prominently displayed, the following disclosure statement and color logos (available from the Division):

“Funding for this project has been provided in full or in part under the Drinking Water State Revolving Fund, which may include capitalization funding from the United States Environmental Protection Agency through an agreement with the State Water Resources Control Board.” A.4 SCHEDULE.

Failure to provide items by the due dates indicated in the table below may constitute a material violation of this Agreement. The Project Manager may adjust the dates in the “Estimated Due Date” column of this table, but Critical Due Date adjustments will require an amendment to this Agreement. The Recipient City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit A
must complete and submit all work in time to be approved by the Division prior to the Project Completion Date. As applicable for specific submittals, the Recipient must plan adequate time to solicit, receive, and address comments prior to submitting the final submittal. The Recipient must submit the final Reimbursement Request prior to the Final Reimbursement Request Date set forth on the Cover Page.

ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE

ESTIMATED DUE
DATE
EXHIBIT A – SCOPE OF WORK
A. ADDITIONAL SUBMITTAL(S) TO DIVISION

1. Final Plans and Specifications September 1, 2021

2. Final Budget Approval Package February 1, 2022

3. Completion of Construction October 1, 2023
B. REPORTS

1. Progress Reports Quarterly

2. Final Inspection and Certification October 1, 2023

3. Project Completion Report December 1, 2023
4 As Needed Reports TBD
EXHIBIT B – REIMBURSEMENTS, BUDGET DETAIL, AND REPORTING PROVISIONS A. REIMBURSEMENTS

1. Reimbursement Requests Quarterly

2. Final Reimbursement Request April 1, 2024
The Recipient must award the prime construction contract and begin construction timely. The Recipient must deliver any request for extension of the Completion of Construction Date no less than 90 days prior to the Completion of Construction Date.

A.5 PROGRESS REPORTS.

The Recipient must provide a progress report to the Division each quarter, beginning no later than 90 days after execution of this Agreement. The Recipient must provide a progress report with each Reimbursement Request. Failure to provide a complete and accurate progress report may result in the withholding of Project Funds, as set forth in Exhibit B. A progress report must contain the following information:
1) A summary of progress to date including a description of progress since the last report, percent construction complete, percent contractor invoiced, and percent schedule elapsed;
2) A description of compliance with environmental requirements; 3) A listing of change orders including amount, description of work, and change in contract amount and schedule; and
4) Any problems encountered, proposed resolution, schedule for resolution, and status of previous problem resolutions.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit A
A.6 SPECIAL REPORTS.
(a) The Recipient must submit a Project Completion Report to the Division with a copy to the appropriate District Office on or before the due date established by the Division and the Recipient at the time of final project inspection. The Project Completion Report must include the following:
i. Description of the Project,
ii. Description of the water quality problem the Project sought to address, iii. Discussion of the Project’s likelihood of successfully addressing that water quality problem in the future, and
iv. Summary of compliance with applicable environmental conditions. (b) If the Recipient fails to submit a timely Project Completion Report, the State Water Board may stop processing pending or future applications for new financial assistance, withhold reimbursements under this Agreement or other agreements, and begin administrative proceedings.
(c) The Recipient must report Disadvantaged Business Enterprise (DBE) utilization to the Division on the DBE Utilization Report, State Water Board Form DBE UR334. The Recipient must submit such reports to the Division annually within ten (10) calendar days following October 1 until such time as the "Notice of Completion" is issued. The Recipient must comply with 40 CFR § 33.301 and require its contractors and subcontractors on the Project to comply.

A.7 FINAL PROJECT INSPECTION AND CERTIFICATION.

Upon completion of the Project, the Recipient must provide for a final inspection and must certify that the Project has been completed in accordance with this Agreement, any final plans and specifications submitted to the State Water Board, and any amendments or modifications thereto. If the Project involves the planning, investigation, evaluation, design, or other work requiring interpretation and proper application of engineering, or other professionals, the final inspection and certification must be conducted by a California Registered Civil Engineer or other appropriate California registered professional. The results of the final inspection and certification must be submitted to the Project Manager.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit B
EXHIBIT B – FUNDING AMOUNTS
B.1 ESTIMATED REASONABLE COST AND PROJECT FUNDS.

The estimated reasonable cost of the total Project is set forth on the Cover Page of this Agreement and is greater than or equal to the funding anticipated to be provided by the State Water Board under this Agreement. Subject to the terms of this Agreement, the State Water Board agrees to provide Project Funds not to exceed the amount of the Project Funding Amount set forth on the Cover Page of this Agreement.

B.2 RECIPIENT CONTRIBUTIONS.
(a) The loan component of this Agreement is forgiven. The estimated amount of principal that will be due to the State Water Board from the Recipient under this Agreement is Zero dollars and no cents ($0.00). (b) The Recipient must pay any and all costs connected with the Project including, without limitation, any and all Project Costs. If the Project Funds are not sufficient to pay the Project Costs in full, the Recipient must nonetheless complete the Project and pay that portion of the Project Costs in excess of available Project Funds, and shall not be entitled to any reimbursement therefor from the State Water Board. (c) If the Recipient recovers funds from any responsible parties, the Recipient shall immediately notify the Division. The amount of this Agreement may be reduced to reflect the recovered funds.

B.3 VERIFIABLE DATA.

Upon request by the Division, the Recipient must submit verifiable data to support deliverables specified in the Scope of Work. The Recipient’s failure to comply with this requirement may be construed as a material breach of this Agreement.

B.4 BUDGET COSTS
Budget costs are contained in the Summary Project Cost Table below:

LINE ITEM TOTAL ESTIMATED COST PROJECT FUNDING AMOUNT
Construction $3,194,720 $3,194,720
Pre-Purchased Material/Equipment $0 $0
Purchase of Land $0 $0
Contingency $638,944 $638,944
Allowances (Soft Costs) $954,000 $954,000
TOTAL $4,787,664 $4,787,664

The Division’s Final Budget Approval and related Form 259 and Form 260 will document a more detailed budget of eligible Project Costs and Project funding amounts.

The Recipient is prohibited from requesting disbursement amounts that represent Recipient’s mark-ups to costs invoiced or otherwise requested by consultants or contractors.

Reasonable indirect costs may be allowable upon approval by the Division.

B.5 LINE ITEM ADJUSTMENTS.

Upon written request by the Recipient, the Division may adjust the line items of the Summary Project Cost Table at the time of Division’s Final Budget Approval. Upon written request by the Recipient, the Division may also adjust the line items of the Summary Project Cost Table as well as the detailed budget at the time of Recipient’s submittal of its final claim. Any line item adjustments to the Summary Project Cost Table that are due to a change in scope of work will require an Agreement amendment. The sum of adjusted line items in both the Summary City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit B
Project Cost Table and the detailed budget must not exceed the Project Funding Amount. The Division may also propose budget adjustments.

Under no circumstances may the sum of line items in the budget approved through the Final Budget Approval process exceed the Project Funding Amount. Any increase in the Project Funding Amount will require an Agreement amendment.

B.6 REIMBURSEMENT PROCEDURE.
(a) Except as may be otherwise provided in this Agreement, reimbursements will be made as follows:

1. Upon execution and delivery of this Agreement by both parties, the Recipient may request immediate reimbursement of any eligible incurred costs as specified below through submission to the State Water Board of the Reimbursement Request Form 260 and Form 261, or any amendment thereto, duly completed and executed.

2. The Recipient must submit a Reimbursement Request for costs incurred prior to the date this Agreement is executed by the State Water Board no later than ninety (90) days after this Agreement is executed by the State Water Board. Late Reimbursement Requests may not be honored.

3. Additional Project Funds will be promptly disbursed to the Recipient upon receipt of Reimbursement Request Form 260 and Form 261, or any amendment thereto, duly completed and executed by the Recipient for incurred costs consistent with this Agreement, along with receipt of progress reports due under Exhibit A.

4. The Recipient must not request reimbursement for any Project Cost until such cost has been incurred and is currently due and payable by the Recipient, although the actual payment of such cost by the Recipient is not required as a condition of reimbursement. Supporting documentation (e.g., receipts) must be submitted with each Reimbursement Request. The amount requested for Recipient’s administration costs must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = total amount claimed). Reimbursement of Project Funds will be made only after receipt of a complete, adequately supported, properly documented, and accurately addressed Reimbursement Request. Upon request by the Division, supporting documents for professional and administrative services must include the employees’ names, classifications, labor rates, hours worked, and descriptions of the tasks performed.

Reimbursement Requests submitted without supporting documents may be wholly or partially withheld at the discretion of the Division.

5. The Recipient must spend Project Funds within 30 days of receipt. If the Recipient earns interest earned on Project Funds, it must report that interest immediately to the State Water Board. The State Water Board may deduct earned interest from future reimbursements.

6. The Recipient shall not request a reimbursement unless that Project Cost is allowable, reasonable, and allocable.

7. Notwithstanding any other provision of this Agreement, no reimbursement shall be required at any time or in any manner which is in violation of or in conflict with federal or state laws, policies, or regulations. (b) Notwithstanding any other provision of this Agreement, the Recipient agrees that the State Water Board may retain an amount equal to ten percent (10%) of the Project Funding Amount until Project Completion. Any retained amounts due to the Recipient will be promptly disbursed to the Recipient, without interest, upon Project Completion.
(c) Except as follows, construction costs and disbursements are not available until after the Division has approved the final budget form submitted by the Recipient. The Deputy Director of the Division may authorize the disbursement of up to ten percent (10%) of Project Funds for the reimbursement of eligible construction costs and pre-purchased materials prior to Division approval of the final budget form submitted by the Recipient. All other construction costs are not eligible for reimbursement until after this the Division has approved the final budget form submitted by the Recipient. Construction costs incurred prior to the Eligible Construction Start Date are not eligible for reimbursement.

B.7 REVERTING FUNDS AND DISENCUMBRANCE.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit B
In the event the Recipient does not submit Reimbursement Requests for all funds encumbered under this Agreement by the Final Reimbursement Request Date, any remaining funds revert to the State. The State Water Board may notify the Recipient that the project file is closed, and any remaining balance will be disencumbered and unavailable for further use under the Agreement.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit C
EXHIBIT C – GENERAL TERMS AND CONDITIONS 2019-NOV
GENERAL TERMS AND CONDITIONS 2019-NOV is incorporated by reference and is posted at https://www.waterboards.ca.gov/water_issues/programs/grants_loans/general_terms.html City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
EXHIBIT D – SPECIAL CONDITIONS

1. Notwithstanding Exhibit C, the following terms have no meaning for the purposes of this Agreement:
• Work Completion
• Work Completion Date

2. Each capitalized term used in this Agreement has the following meaning:
• "Allowance" means an amount based on a percentage of the accepted bid for an eligible project to help defray the planning, design, and construction engineering and administration costs of the Project. • "Authorized Representative" means the duly appointed representative of the Recipient as set forth in the certified original of the Recipient’s authorizing resolution that designates the authorized representative by title.
• "Completion of Construction" means the date, as determined by the Division after consultation with the Recipient, that the work of building and erection of the Project is substantially complete, and is established on the Cover Page of this Agreement.
• “District Office” means District Office of the Division of Drinking Water of the State Water Board. • “Division of Drinking Water” means the Division of Drinking Water of the State Water Board. • “Eligible Construction Start Date” means the date set forth on the Cover Page of this Agreement, establishing the date on or after which construction costs may be incurred and eligible for reimbursement hereunder.
• “Eligible Work Start Date” means the date set forth on the Cover Page of this Agreement, establishing the date on or after which any non-construction costs may be incurred and eligible for reimbursement hereunder.
• “Enterprise Fund” means the enterprise fund of the Recipient in which Revenues are deposited. • “Event of Default” means, in addition to the meanings set forth in Exhibit C, the occurrence of any of the following events:
a) A material adverse change in the condition of the Recipient, the Revenues, or the System, which the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement.
b) Failure to operate the System or the Project without the Division’s approval; • “Final Budget Approval” means the Division-approved final budget for the Project, as set forth in Exhibit B. • “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to the Project (i.e., costs that are not directly related to the Project). Examples of Indirect Costs include, but are not limited to: central service costs; general administration of the Recipient; non-project-specific accounting and personnel services performed within the Recipient organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-project-specific facilities; tuition and conference fees; generic overhead or markup; and taxes.
• "Initiation of Construction" means the date that notice to proceed with work is issued for the Project, or, if notice to proceed is not required, the date of commencement of building and erection of the Project. • “Net Revenues" means, for any Fiscal Year, all Revenues received by the Recipient less the Operations and Maintenance Costs for such Fiscal Year.
• "Operations and Maintenance Costs" means the reasonable and necessary costs paid or incurred by the Recipient for maintaining and operating the System, determined in accordance with GAAP, including all City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
reasonable expenses of management and repair and all other expenses necessary to maintain and preserve the System in good repair and working order, and including all reasonable and necessary administrative costs of the Recipient that are charged directly or apportioned to the operation of the System, such as salaries and wages of employees, overhead, taxes (if any), the cost of permits, licenses, and charges to operate the System and insurance premiums; but excluding, in all cases depreciation, replacement, and obsolescence charges or reserves therefor and amortization of intangibles. • “Reimbursement Request” means the Recipient’s request for Project Funds from the State Water Board as set forth in Exhibit B.
• "Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the Recipient from the ownership or operation of the System, determined in accordance with GAAP, including all rates, fees, and charges (including connection fees and charges) as received by the Recipient for the services of the System, and all other income and revenue howsoever derived by the Recipient from the ownership or operation of the System or arising from the System, including all income from the deposit or investment of any money in the Enterprise Fund or any rate stabilization fund of the Recipient or held on the Recipient’s behalf, and any refundable deposits made to establish credit, and advances or contributions in aid of construction.
• “System” means all drinking water collection, transport, treatment, storage, and delivery facilities, including land and easements thereof, owned by the City of Porterville, or its successor agency, and all other properties, structures, or works hereafter acquired and constructed by the Recipient and determined to be a part of the System, together with all additions, betterments, extensions, or improvements to such facilities, properties, structures, or works, or any part thereof hereafter acquired and constructed. • “Useful Life” means the economically useful life of the Project beginning at Project Completion and is set forth in Exhibit A.

3. Acknowledgements.

The Recipient must include the following acknowledgement in any document, written report, or brochure to be shared with the general public prepared in whole or in part pursuant to this Agreement:
“Funding for this project has been provided in full or in part under the Drinking Water State Revolving Fund, which may include capitalization funding from the United States Environmental Protection Agency through an agreement with the State Water Resources Control Board. The contents of this document do not necessarily reflect the views and policies of the foregoing, nor does mention of trade names or commercial products constitute endorsement or recommendation for use.”

4. Rates and Charges. The Recipient must, to the extent permitted by law, fix, prescribe and collect rates, fees and charges for the System during each Fiscal Year which are reasonable, fair, and nondiscriminatory and which will be sufficient to generate Revenues in the amounts necessary to cover Operations and Maintenance Costs, and must ensure that Net Revenues are in an amount necessary to meet its obligations under this Agreement. The Recipient may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but shall not reduce the rates, fees and charges then in effect unless the Net Revenues from such reduced rates, fees, and charges will at all times be sufficient to meet the requirements of this section.

5. [RESERVED]

6. [RESERVED].

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D

7. Environmental/Technical Special Conditions
Technical:

1. The Recipient shall submit its professional engineering services contract to the Division prior to disbursement of funds for costs incurred under such contract.

2. The Recipient shall not solicit bids, award a contract, or commence construction activities until final plans and specifications are approved by the Division of Drinking Water Tulare District Office Engineer and the Project Manager.

3. The Recipient must submit final consolidation agreements with Akin WC and Central MWC, in a form satisfactory to the Division, and receive written approval from the Project Manager to proceed before Project Funds may be disbursed for any Project Costs under the Agreement.

4. Upon completion of the Project the Recipient shall submit a water supply permit amendment request for review to the Division of Drinking Water Tulare District Office.

Environmental:

1. The documents identified below are incorporated by reference and the Recipient shall comply with the conditions and recommendations therein:
a. The Mitigation Monitoring and Reporting Program adopted by the State Water Board on June 16, 2016 for the Project. The Recipient shall implement all mitigation measures therein. b. The letter dated February 12, 2020, from Patricia Cole of the United States Fish and Wildlife Service, San Joaquin Valley Division to Douglas E. Eberhardt of the United States Environmental Protection Agency, including, but not limited to, the following:
i. Implement Avoidance and Minimization Measures and Best Management Practices prior to and during construction activities to minimize and avoid effects to the San Joaquin kit fox.
c. The Mitigation Monitoring and Reporting Program adopted by the City of Porterville on April 21, 2020 for the Central Mutual Water Company Consolidation Project. The Recipient shall implement all mitigation measures therein.

2. In the Recipient’s Quarterly Reports submitted pursuant to this Agreement, the Recipient shall include a discussion of the status of its compliance with environmental measures identified in this Exhibit D, with separate sections clearly labeled and titled, discussing the status of Recipient’s compliance.

3. In the Recipient’s Project Completion Report submitted pursuant to this Agreement, the Recipient shall include a discussion of its compliance with environmental measures identified in this Exhibit D, with separate sections clearly labeled and titled, discussing the status of Recipient’s compliance.

8. [RESERVED].

9. Appointment of Receiver/Custodian. Upon the filing of a suit or other commencement of judicial proceedings to enforce the rights of the State Water Board under this Agreement, the State Water Board may make application for the appointment of a receiver or custodian of the Revenues, pending such proceeding, with such power as the court making such appointment may confer.

10. [RESERVED].

11. Damages for Breach of Federal Conditions. In the event that any breach of any of the provisions of this Agreement by the Recipient results in the failure of Project Funds to be used pursuant to the provisions of this Agreement, or if such breach results in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government, the Recipient must immediately reimburse the State or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency thereof due to such breach.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D

12. [RESERVED].

13. Operation and Maintenance. The Recipient shall sufficiently and properly staff, operate, and maintain the facility and structures constructed or improved as part of the project throughout the term of this Agreement, consistent with the purposes of this Agreement. The Recipient assumes all operations and maintenance costs of the facilities and structures; the State Water Board shall not be liable for any cost of such maintenance, management or operation.

14. Insurance. The Recipient will procure and maintain or cause to be maintained insurance on the System and Project with responsible insurers, or as part of a reasonable system of self-insurance, in such amounts and against such risks (including damage to or destruction of the System or Project) as are usually covered in connection with systems similar to the System or Project. Such insurance may be maintained by a self-insurance plan so long as such plan provides for (i) the establishment by the Recipient of a separate segregated self-insurance fund in an amount determined (initially and on at least an annual basis) by an independent insurance consultant experienced in the field of risk management employing accepted actuarial techniques and (ii) the establishment and maintenance of a claims processing and risk management program. In the event of any damage to or destruction of the System or Project caused by the perils covered by such insurance, the net proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion of the System or Project. The Recipient must begin such reconstruction, repair or replacement as expeditiously as possible, and must pay out of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same must be completed and the System and Project must be free and clear of all claims and liens. Recipient agrees that for any policy of insurance concerning or covering the construction of the Project, it will cause, and will require its contractors and subcontractors to cause, a certificate of insurance to be issued showing the State Water Board, its officers, agents, employees, and servants as additional insured; and must provide the Division with a copy of all such certificates prior to the commencement of construction of the Project.

15. Notice Events. Upon the occurrence of any of the following events, the Recipient must notify the Division’s Deputy Director and Party Contacts by phone and email within the time specified below:
a. The Recipient must notify the Division within 24 hours by phone at (916) 327-9978 and by email to [email protected] of any discovery of any potential tribal cultural resource and/or archaeological or historical resource. Should a potential tribal cultural resource and/or archaeological or historical resource be discovered during construction or Project implementation, the Recipient must ensure that all work in the area of the find will cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the Division has determined what actions should be taken to protect and preserve the resource. The Recipient must implement appropriate actions as directed by the Division.
b. The Recipient must notify the Division promptly of the occurrence of any of the following events:
i. Bankruptcy, insolvency, receivership or similar event of the Recipient, or actions taken in anticipation of any of the foregoing;
ii. Change of ownership of the Project (no change of ownership may occur without written consent of the Division);
iii. Loss, theft, damage, or impairment to Project;
iv. Events of Default, except as otherwise set forth in this section; City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
v. A proceeding or action by a public entity to acquire the Project by power of eminent domain.
vi. Any litigation pending or threatened with respect to the Project or the Recipient’s technical, managerial or financial capacity or the Recipient’s continued existence; vii. Consideration of dissolution, or disincorporation; viii. Enforcement actions by or brought on behalf of the State Water Board or Regional Water Board.
ix. The discovery of a false statement of fact or representation made in this Agreement or in the application to the Division for this funding, or in any certification, report, or request for reimbursement made pursuant to this Agreement, by the Recipient, its employees, agents, or contractors;
x. Any substantial change in scope of the Project. The Recipient must undertake no substantial change in the scope of the Project until prompt written notice of the proposed change has been provided to the Division and the Division has given written approval for the change;
xi. Any circumstance, combination of circumstances, or condition, which is expected to or does delay Completion of Construction for a period of ninety (90) days or more; xii. Any Project monitoring, demonstration, or other implementation activities required in this Agreement;
xiii. Any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by state representatives with at least ten (10) working days’ notice to the Division; xiv. Any event requiring notice to the Division pursuant to any other provision of this Agreement.
xv. Completion of work on the Project.
xvi. The Recipient must promptly notify the Division and Party Contacts of cessation of all major construction work on the Project where such cessation of work is expected to or does extend for a period of thirty (30) days or more;
xvii. The Recipient must promptly notify the Division and Party Contacts of the discovery of any unexpected endangered or threatened species, as defined in the federal Endangered Species Act. Should a federally protected species be unexpectedly encountered during implementation of the Project, the Recipient agrees to promptly notify the Division. This notification is in addition to the Recipient’s obligations under the federal Endangered Species Act;
xviii. The Recipient must promptly notify the Division and Party Contacts of Completion of Construction, and Project Completion;
xix. The Recipient must promptly notify the Division and Party Contacts of the award of the prime construction contract for the Project; and the Recipient must promptly notify the Division and Party Contacts of Initiation of construction of the Project.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
xx. The occurrence of a material breach or event of default under any Recipient obligation that results in the acceleration of principal or interest or otherwise requires immediate prepayment, repurchase or redemption.
xxi. [RESERVED].

16. Continuous Use of Project; No Lease, Sale, Transfer of Ownership, or Disposal of Project. The Recipient agrees that, except as provided in this Agreement, it will not abandon, substantially discontinue use of, lease, sell, transfer ownership of, or dispose of all or a significant part or portion of the Project during the Useful Life of the Project without prior written approval of the Division. Such approval may be conditioned as determined to be appropriate by the Division, including a condition requiring repayment of all disbursed Project Funds or all or any portion of all remaining funds covered by this Agreement together with accrued interest and any penalty assessments that may be due.

17. State Cross-Cutters. Recipient represents that, as applicable, it complies and covenants to maintain compliance with the following for the term of the Agreement:
a) The California Environmental Quality Act (CEQA), as set forth in Public Resources Code 21000 et seq. and in the CEQA Guidelines at Title 14, Division 6, Chapter 3, Section 15000 et seq. b) Water Conservation requirements, including regulations in Division 3 of Title 23 of the California Code of Regulations.
c) Monthly Water Diversion Reporting requirements, including requirements set forth in Water Code section 5103.
d) Public Works Contractor Registration with Department of Industrial Relations requirements, including requirements set forth in Sections 1725.5 and 1771.1 of the Labor Code. e) Volumetric Pricing & Water Meters requirements, including the requirements of Water Code sections 526 and 527.
f) Urban Water Management Plan requirements, including the Urban Water Management Planning Act (Water Code, § 10610 et seq.).
g) Urban Water Demand Management requirements, including the requirements of Section 10608.56 of the Water Code.
h) Delta Plan Consistency Findings requirements, including the requirements of Water Code section 85225 and California Code of Regulations, title 23, section 5002. i) Agricultural Water Management Plan Consistency requirements, including the requirements of Water Code section 10852.
j) Charter City Project Labor Requirements, including the requirements of Labor Code section 1782 and Public Contract Code section 2503.
k) The Recipient agrees that it will, at all times, comply with and require its contractors and subcontractors to comply with directives or orders issued pursuant to Division 7 of the Water Code.

18. Financial Management Systems. The Recipient must comply with federal standards for financial management systems. The Recipient agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit preparation of reports required by the federal government and tracking of Project funds to a level of expenditure adequate to establish that such funds have not been City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
used in violation of federal or state law or the terms of this Agreement. To the extent applicable, the Recipient is bound by, and must comply with, the provisions and requirements of the federal Single Audit Act of 1984 and 2 CFR Part 200, subpart F, and updates or revisions, thereto.

19. Access and Inspection. In addition to the obligations set forth in section 2 of the General Terms and Conditions incorporated in Exhibit C of this Agreement, the Recipient must ensure that the United States Environmental Protection Agency, the Office of Inspector General, any member of Congress, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during the term of the Agreement.

20. Fraud, Waste, and Abuse. The Recipient shall prevent fraud, waste, and the abuse of Project Funds, and shall cooperate in any investigation of such activities that are suspected in connection with this Agreement. The Recipient understands that discovery of any evidence of misrepresentation or fraud related to reimbursement requests, invoices, proof of payment of invoices, or other supporting information, including but not limited to double or multiple billing for time, services, or any other eligible cost, may result in referral to the Attorney General’s Office or the applicable District Attorney’s Office for appropriate action. The Recipient further understands that any suspected occurrences of false claims, misrepresentation, fraud, forgery, theft or any other misuse of Project Funds may result in withholding of reimbursements and/or the termination of this Agreement requiring the immediate repayment of all funds disbursed hereunder.

21. Disputes. The Recipient must continue with the responsibilities under this Agreement during any dispute.

The Recipient may, in writing, appeal a staff decision within 30 days to the Deputy Director of the Division or designee, for a final Division decision. The Recipient may appeal a final Division decision to the State Water Board within 30 days. The Office of the Chief Counsel of the State Water Board will prepare a summary of the dispute and make recommendations relative to its final resolution, which will be provided to the State Water Board’s Executive Director and each State Water Board Member. Upon the motion of any State Water Board Member, the State Water Board will review and resolve the dispute in the manner determined by the State Water Board. Should the State Water Board determine not to review the final Division decision, this decision will represent a final agency action on the dispute. This provision does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the State Water Board, or any official or representative thereof, on any question of law.

This section relating to disputes does not establish an exclusive procedure for resolving claims within the meaning of Government Code sections 930 and 930.4.

22. Additional Representations and Warranties. The Recipient makes the following representations and warranties:
a. [RESERVED].
b. The Recipient has not made any untrue statement of a material fact in its application for this financial assistance, or omitted to state in its application, a material fact that makes the statements in its application not misleading.
c. The Recipient agrees to fulfill all assurances, declarations, representations, and commitments in its application, accompanying documents, and communications filed in support of its request for funding under this Agreement.
d. The execution, delivery, and performance by Recipient of this Agreement, including all incorporated documents, do not violate any provision of any law or regulation in effect as of the date set forth on the first page hereof, or result in any breach or default under any contract, obligation, indenture, or other instrument to which Recipient is a party or by which Recipient is bound as of the date set forth on the Cover Page.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
e. Except as set forth in this paragraph, there are, as of the date of execution of this Agreement by the Recipient, no pending or, to Recipient’s knowledge, threatened actions, claims, investigations, suits, or proceedings before any governmental authority, court, or administrative agency which materially affect the financial condition or operations of the Recipient, the Revenues, and/or the Project.
f. There are no proceedings, actions, or offers by a public entity to acquire by purchase or the power of eminent domain any of the real or personal property related to or necessary for the Project.
g. The Recipient is duly organized and existing and in good standing under the laws of the State of California. Recipient must at all times maintain its current legal existence and preserve and keep in full force and effect its legal rights and authority. Within the preceding ten years, the Recipient has not failed to demonstrate compliance with state or federal audit disallowances. h. Any financial statements or other financial documentation of Recipient previously delivered to the State Water Board as of the date(s) set forth in such financial statements or other financial documentation: (a) are materially complete and correct; (b) present fairly the financial condition of the Recipient; and (c) have been prepared in accordance with GAAP. Since the date(s) of such financial statements or other financial documentation, there has been no material adverse change in the financial condition of the Recipient, nor have any assets or properties reflected on such financial statements or other financial documentation been sold, transferred, assigned, mortgaged, pledged or encumbered, except as previously disclosed in writing by Recipient and approved in writing by the State Water Board.
i. The Recipient is current in its continuing disclosure obligations associated with its material debt, if any.
j. The Recipient has no conflicting or material obligations, except as set forth in this paragraph. k. The Recipient legally possesses all real property rights necessary for the purposes of this Agreement, not subject to third party revocation, which rights extend at least to the Records Retention End Date of this Agreement, except as set forth in this paragraph. l. The Recipient and its principals, to the best of the Recipient’s knowledge and belief, are not presently debarred, suspended, proposed for debarment, declared ineligible, or otherwise excluded from participation in any work overseen, directed, funded, or administered by the State Water Board program for which this grant funding is authorized; nor have they engaged or permitted the performance of services covered by this Agreement from parties that are debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which this grant funding is authorized.
m. The Recipient possesses all water rights necessary for this Project.

23. Federal SRF Requirements. The Recipient acknowledges, warrants compliance with, and covenants to continuing compliance with the following federal terms and conditions for the Useful Life of the Project:
a. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient shall not purchase “iron and steel products” produced outside of the United States on this Project. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
Recipient hereby certifies that all “iron and steel products” used in the Project were or will be produced in the United States. For purposes of this section, the term "iron and steel products" means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. “Steel” means an alloy that includes at least 50 percent iron, between .02 and 2 percent carbon, and may include other elements.
b. The Recipient must include in full the Wage Rate Requirements (Davis-Bacon) language incorporated by reference in Section 2 of this Agreement in all construction contracts and subcontracts.
c. The Recipient shall notify the State Water Board and the USEPA contact of public or media events publicizing the accomplishment of significant events related to this Project and provide the opportunity for attendance and participation by federal representatives with at least ten (10) working days’ notice.
d. The Recipient shall comply with applicable EPA general terms and conditions found at http://www.epa.gov/ogd.
e. No Recipient may receive funding under this Agreement unless it has provided its DUNS number to the State Water Board.
f. [RESERVED]
g. The Recipient represents and warrants that it and its principals are not excluded or disqualified from participating in this transaction as such terms are defined in Parts 180 and 1532 of Title 2 of the Code of Federal Regulations (2 CFR). If the Recipient is excluded after execution of this Agreement, the Recipient shall notify the Division within ten (10) days and shall inform the Division of the Recipient’s exclusion in any request for amendment of this Agreement. The Recipient shall comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR. Such compliance is a condition precedent to the State Water Board’s performance of its obligations under this Agreement. When entering into a covered transaction as defined in Parts 180 and 1532 of 2 CFR, the Recipient shall require the other party to the covered transaction to comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR.
h. To the extent applicable, the Recipient shall disclose to the State Water Board any potential conflict of interest consistent with USEPA’s Final Financial Assistance Conflict of Interest Policy at https://www.epa.gov/grants/epas-final-financial-assistance-conflict-interest-policy. A conflict of interest may result in disallowance of costs.
i. USEPA and the State Water Board have the right to reproduce, publish, use and authorize others to reproduce, publish and use copyrighted works or other data developed under this assistance agreement.
j. Where an invention is made with Project Funds, USEPA and the State Water Board retain the right to a worldwide, nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention owned by the Recipient. The Recipient must utilize the Interagency Edison extramural invention reporting system at http://iEdison.gov and shall notify the Division when an invention report, patent report, or utilization report is filed.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
k. The Recipient agrees that any reports, documents, publications or other materials developed for public distribution supported by this Agreement shall contain the Disclosure statement set forth in Exhibit A.
l. The Recipient acknowledges that it is encouraged to follow guidelines established under Section 508 of the Rehabilitation Act, codified at 36 CFR Part 1194, with respect to enabling individuals with disabilities to participate in its programs supported by this Project. m. The Recipient, its employees, contractors and subcontractors and their employees warrants that it will not engage in severe forms of trafficking in persons, procure a commercial sex act during the term of this Agreement, or use forced labor in the performance of this Agreement. The Recipient must include this provision in its contracts and subcontracts under this Agreement. The Recipient must inform the State Water Board immediately of any information regarding a violation of the foregoing. The Recipient understands that failure to comply with this provision may subject the State Water Board to loss of federal funds. The Recipient agrees to compensate the State Water Board for any such funds lost due to its failure to comply with this condition, or the failure of its contractors or subcontractors to comply with this condition. The State Water Board may unilaterally terminate this Agreement if the Recipient that is a private entity is determined to have violated the foregoing.
n. The Recipient certifies to the best of its knowledge and belief that:
i. No federal appropriated funds have been paid or will be paid, by or on behalf of the Recipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. ii. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with this Agreement, the Recipient shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions, and notify the State Water Board.
iii. The Recipient shall require this certification from all parties to any contract or agreement that the Recipient enters into and under which the Recipient incurs costs for which it seeks disbursements under this Agreement.
o. The Recipient must comply with the following federal non-discrimination requirements:
i. Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, and national origin, including limited English proficiency (LEP). ii. Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination against persons with disabilities.
iii. The Age Discrimination Act of 1975, which prohibits age discrimination. iv. Section 13 of the Federal Water Pollution Control Act Amendments of 1972, which prohibits discrimination on the basis of sex.
v. 40 CFR Part 7, as it relates to the foregoing.
vi. Executive Order 13798, including, to the greatest extent practicable and to the extent permitted by law, the requirement to respect and protect the freedom of persons and organizations to engage in political and religious speech vii. All applicable federal civil rights regulations, including statutory and national policy requirements (2 CFR section 200.300).

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
p. Executive Order No. 11246. The Recipient shall include in its contracts and subcontracts related to the Project the following provisions:
"During the performance of this contract, the contractor agrees as follows:"(a) The contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, or national origin. Such action shall include, but not be limited to the following:
employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.
"(b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin. "(c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or workers' representative of the contractor's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
"(d) The contractor will comply with all provisions of Executive Order No. 11246 of Sept. 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. "(e) The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
"(f) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations, or orders, this contract may be cancelled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of Sept 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. "(g) The contractor will include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of Sept. 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, That in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the contracting agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States."
City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
q. The Recipient agrees to comply with the requirements of USEPA’s Program for Utilization of Small, Minority and Women’s Business Enterprises as set forth in this Agreement. r. Procurement Prohibitions under Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans; 42 USC § 7606; 33 USC § 1368. Except where the purpose of this Agreement is to remedy the cause of the violation, the Recipient may not procure goods, services, or materials from suppliers excluded under the federal System for Award Management: http://www.sam.gov/ . s. Uniform Relocation and Real Property Acquisition Policies Act, Pub. L. 91-646, as amended; 42 USC §§4601-4655. The Recipient must comply with the Act’s implementing regulations at 49 CFR 24.101 through 24.105.
t. The Recipient agrees that if its network or information system is connected to USEPA networks to transfer data using systems other than the Environmental Information Exchange Network or USEPA’s Central Data Exchange, it will ensure that any connections are secure. u. All geospatial data created pursuant to this Agreement that is submitted to the State Water Board for use by USEPA or that is submitted directly to USEPA must be consistent with Federal Geographic Data Committee endorsed standards. Information on these standards may be found at www.fgdc.gov.
v. If the Recipient is a water system that serves 500 or fewer persons, the Recipient represents that it has considered publicly-owned wells as an alternative drinking water supply. w. The Recipient represents that it is not a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability; and it is not a corporation that was convicted of a felony criminal violation under a Federal law within the preceding 24 months. x. The Recipient agrees to immediately notify the Project Manager in writing about any allegation of research misconduct involving research activities that are supported in whole or in part with EPA funds under this Project, including fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results, or ordering, advising, or suggesting that subordinates engage in research misconduct.
y. The Recipient agrees to comply with, and require all contractors and subcontractors to comply with, EPA’s Scientific Integrity Policy, available at https://www.epa.gov/osa/policy-epa-scientificintegrity, when conducting, supervising, and communicating science and when using or applying the results of science. For purposes of this condition scientific activities include, but are not limited to, computer modelling, economic analysis, field sampling, laboratory experimentation, demonstrating new technology, statistical analysis, and writing a review article on a scientific issue.
z. The Recipient shall not suppress, alter, or otherwise impede the timely release of scientific findings or conclusions; intimidate or coerce scientists to alter scientific data, findings, or professional opinions or exert non-scientific influence on scientific advisory boards; knowingly misrepresent, exaggerate, or downplay areas of scientific uncertainty; or otherwise violate the EPA’s Scientific Integrity Policy. The Recipient must refrain from acts of research misconduct, including publication or reporting, as described in EPA’s Policy and Procedures for Addressing Research Misconduct, Section 9.C, and must ensure scientific findings are generated and City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

Exhibit D
disseminated in a timely and transparent manner, including scientific research performed by contractors and subcontractors.
aa. The Recipient agrees to comply with the Animal Welfare Act of 1966 (7 USC 2131-2156).

Recipient also agrees to abide by the “U.S. Government Principles for the Utilization and Care of Vertebrate Animals used in Testing, Research, and Training,” available at http://grants.nih.gov/grants/olaw/references/phspol.htm#USGovPrinciples. bb. The Recipient certifies that no Project Funds will be used on:
i. Video surveillance or telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities), telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities);
ii. Telecommunications or video surveillance services produced by such entities; iii. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country; or
iv. Other telecommunications or video surveillance services or equipment in violation of 2 CFR 200.216.

Item No. 19.

CITY COUNCIL AGENDA – JUNE 6, 2023
SUBJECT: Public Hearing to Consider Amendments to Series 200 of the Porterville Development Ordinance
SOURCE: Community Development
COMMENT: The PO (Professional Office) zone district exists to support development of offices and research and development, along with limited retail and support uses. Personal services, including such uses as salons, tailors, and self-service laundries, fall within the “service” aspect of business operation as opposed to the retail aspect. Currently, Development Ordinance Table 204.02 allows these types of activities, but only as an accessory or secondary use to a primary office use and sets a maximum floor area of 5,000 square feet for personal services.

Property owners and prospective businesspersons have expressed interest in personal service activities but have abandoned those interests due to the difficulty and impracticality of establishing a primary office use simply to facilitate operation of a secondary services use.

To promote personal service uses and reduce vacancy and underutilization of properties within the PO district, the draft Ordinance would amend Development Ordinance Sections 204.01 to clarify the intent of the PO zone district and PMC Section 204.02 to both remove the requirement for a primary office use on the site and remove the floor area cap.

Pursuant to State and local environmental regulations, the proposed modifications serve to provide greater clarity to uses as identified in the Porterville 2030 General Plan, and the proposed Ordinance is an implementation measure of the policies, goals, and objectives of the Plan. The Environmental Coordinator made a determination on the basis of substantial evidence that, since the amendment would not result in a new type of permitted use or in uses containing a greater floor area than already permissible, it can be shown with certainty that there is no possibility that the proposed text amendment could have a significant effect on the environment.

RECOMMENDATION: That the City Council:

1. Find that proposed draft Ordinance amendments serve to implement the policies, goals, and objectives of the General Plan and said amendments do not have the potential to have a significant effect on the environment; and

2. Introduces and waives the first reading of the draft Ordinance.

ATTACHMENTS: 1. Draft Ordinance
Item No. 19.

Appropriated/Funded:

Review By:

Department Director:

Jason Ridenour, Assistant City Manager
Final Approver: John Lollis, City Manager
ORDINANCE NO. __________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORTERVILLE AMENDING SECTIONS 204.01 AND 204.02 OF THE PORTERVILLE DEVELOPMENT

ORDINANCE REGARDING THE PO (PROFESSIONAL OFFICE) ZONE DISTRICT WHEREAS: On June 6, 2023 the City Council at its regularly scheduled meeting held a public hearing to consider amendments to the Porterville Development Ordinance; and WHEREAS: The purpose of the proposed amendments is to recognize the value and importance of and to accommodate personal services businesses, including but not limited to salons and barber shops, self-services laundries, seamstresses and tailors, and similar businesses by removing a barrier to their operation in the PO district, to wit, the requirement that those personal services only be operated as an accessory use to an established professional office use; and WHEREAS: Pursuant to State and local environmental regulations, the proposed modifications serve to provide greater clarity to uses as identified in the Porterville 2030 General Plan, and the proposed ordinance is an implementation measure of the policies, goals, and objectives of the Plan.

The Environmental Coordinator made a determination on the basis of substantial evidence that, since the amendment would not result in a new type of permitted use or in uses containing a greater floor area than already permissible, it can be shown with certainty that there is no possibility that the proposed text amendment could have a significant effect on the environment.

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Porterville as follows:

SECTION 1: The proposed text amendment is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

SECTION 2: Section 204.01, Purpose, of Chapter 21 of the Porterville Municipal Code is hereby amended as follows:

SECTION 204.01, Purpose
The specific purposes of the “Employment” Districts are to:

A. Provide appropriate areas of the city where employment uses can locate and operate without significant conflicts with other land uses.

B. Strengthen the city’s economic base and provide employment opportunities for residents of the city.

C. Ensure the provision of services and facilities needed to accommodate planned population densities.

Additional purposes of each “Employment” District:

PO Professional Office. To allow for areas of office complex development, including professional and medical offices, personal services, as well as research and development activities,. Ssmall restaurants, support services, and convenience retail. The maximum FAR is 0.50.

IP Industrial Park. To provide areas for a mix of light industrial, secondary office, bulk retail, and service uses. This district allows for uses such as, warehouse, personal storage (mini-storage), distribution centers, research and development, wholesale, and office space with limited customer access. This district also allows for other uses, such as commercial recreation, small-scale retail, and service uses serving local employees and visitors are permitted as secondary uses. The maximum FAR is 0.40.

IG General Industrial. To provide areas for businesses that have potential to create adverse visual, noise, or other impacts to adjoining public and residential properties. This district allows for uses such as, warehousing, manufacturing, food processing, distribution, with support commercial services and ancillary office space. No retail uses are allowed.

The maximum FAR is 0.60.

IA Airport Industrial. To provide areas for the Municipal Airport and for related businesses that have the potential to create adverse visual, noise, or other impacts to adjoining public and residential properties. Small-scale retail and service uses serving local employees and visitors are permitted as secondary uses. This designation allows for a maximum FAR of 0.60.

SECTION 3: Table 204.02, Land Use Regulations – Downtown Districts, of Section 204.02 of Chapter 21 of the Porterville Municipal Code is hereby amended as follows:

Use Classification PO IP IG IA Additional Regulations
Public and semi-public uses:

Colleges and trade schools,
public or private

C P - -
Correctional facility - P P -
Cultural institutions P - - -
Day care centers P P(1) - -
Elderly and long-term care P - - -
Instructional services P P - P
Residential care facilities,
general
C - - - Section 301.15, “Residential Care
Facilities, General”
Schools, public or private P - - -
Commercial uses:

Aircraft sales, services, and
storage
- - - P
Animal care, sales and
services:

See sub-classifications below
Kennels - M M -
Veterinary services - P P -
Automobile/vehicle sales and
services:

See sub-classifications below
Automobile/vehicle service
and repair, major
- P P - Section 301.04, “Automobile/Vehicle
Service And Repair”
Automobile/vehicle service
and repair, minor
- P P - Section 301.04, “Automobile/Vehicle
Service And Repair”
Automobile/vehicle washing - P P - Section 301.05, “Auto Service Stations And Car Washing”
Large vehicle and equipment
sales, service, and rental
- C P -
Service station - C C - Section 301.05, “Auto Service
Stations And Car Washing”
Towing and impound - C P - Section 300.09, “Outdoor Storage” Banks and financial
institutions:

See sub-classifications below
Banks and credit unions P P(1) P(1) P(1)
Check cashing businesses P - - -
Building materials and services - P P -
Business services P P(1) P(1) -
Cannabis dispensary - - - P Municipal Code chapter 15, article VII
Commercial entertainment and
recreation:

See sub-classifications below
Large-scale - C C C Section 301.02, “Alcoholic Beverage Sales”
Small scale - C - - Section 301.02, “Alcoholic Beverage Sales”
Eating, drinking, and smoking
establishments:

See sub-classifications below
Coffee shops/cafes P(2) P(1) P(1) P Section 300.08, “Outdoor Seating” Restaurants P(2) P(1) P(1) P Sections 300.08, “Outdoor Seating”; and 301.02, “Alcoholic Beverage
Sales”
Food and beverage retail sales P(2) P(1) P(1) - Section 301.02, “Alcoholic Beverage Sales”
Funeral parlors and mortuaries - P P -
Hotels and motels - C C -
Bed and breakfasts P(10) - - -
Light fleet based services - P P -
Maintenance and repair
services
- P P -
Medical facilities: See sub-classifications below
Hospital P - - -
Medical clinic P - - -
Professional/medical P - - -
Offices: See sub-classifications below
General offices P P P P
Walk-in clientele P - - -
Parking, public or private P(3) P P -
Personal services P(2) P(1) - -
Retail sales P(2) P(2) P(2) -
Salvage and wrecking: - C C C Section 300.09, “Outdoor Storage” Salvage and wrecking
conducted wholly within a
building
- P P P Section 300.09, “Outdoor Storage”
Sexually oriented business - P P - Section 301.17, “Sexually Oriented Businesses”
Wholesaling and distribution - P P P
Industrial uses:

Construction and material
yards
- P P - Section 300.09, “Outdoor Storage”
Handicraft/custom
manufacturing
- P P P
Industry, general: - P P P
Alcohol manufacture - C(4) C -
Hazardous waste management
facilities
- C(6) C -
Manufacture, processing, or
treatment of materials which
may be obnoxious, offensive or
hazardous to health and safety
of persons and property
- - C -
Industry, limited - P P P
Recycling facilities: See sub-classifications below
Recycling collection facility - - P - Section 301.14, “Recycling Facilities”
Recycling processing facility - - P - Section 301.14, “Recycling Facilities”
Warehousing and storage: See sub-classifications below
Chemical, mineral, and
explosives storage
- C C C
Indoor warehousing and
storage
- P P P
Personal storage - P P P Section 301.13, “Personal Storage Facilities”
Transportation, communication, and utilities uses:

Communication facilities: See sub-classifications below Antenna and transmission
towers, camouflage facilities
P(7) P(7) P(7) P(7) Section 301.20, “Telecommunication
Facilities”
Antenna and transmission
towers, non-camouflage
facilities
M(7) M(7) M(7) M(7) Section 301.20, “Telecommunication
Facilities”
Broadcasting facility - P P P Section 301.20, “Telecommunication Facilities”
Call center P(2) P P -
Freight/truck terminals and
warehouses
- P P P
Heliports - C C C
Transportation passenger
terminals
- P P P
Utilities, major: - P P P
Renewable energy facility C C C
Solid waste collection,
treatment, and disposal
- - P C
Utilities, minor P P P P
Agricultural and extractive uses:

Crop cultivation, commercial M P P M Section 301.06, “Crop Cultivation” Crop cultivation, noncommercial- P P -
Mining and quarrying - - C(6) -
Other applicable types:

Accessory uses and structures P P P P Section 301.01, “Accessory Uses And Structures”
Additional uses - - - P(9)
Caretaker unit - P(8) P(8) -
Nonconforming use Chapter 307, “Nonconforming Uses, Structures, And Lots” Temporary use Section 301.21, “Temporary Uses”
Notes:

Specific Limitations:
(1) Permitted only as an accessory use that supports industrial uses, business and office parks, and corporate offices.
(2) Permitted only as an accessory to a primary office and limited to establishments with a gross floor area less than 5,000 square feet in size.
(3) Limited to parking areas for exclusive use of occupants, employees and patrons of the uses, buildings, stores, and businesses located in that zone. (4) Alcohol manufacture must be located more than 500 feet from the nearest residential, or commercial zoning designation as shown on the Official Zoning Map. (5) On-site hazardous waste management facilities must be accessory and incidental to a primary use. (6) In areas designated as Mineral Resource Zones in the General Plan (7) Prohibited within 300 feet of any R district except as detailed in 301.20E. (8) For agricultural employees, when located on farms or ranches containing more than 10 acres. Such dwellings shall be a permanent structure.
(9) Additional uses may be allowed with City Council approval of a Conditional Use Permit. (10) Limited to no more than two rooms in a dwelling rented to not more than four persons. Meals may not be provided to more than four boarders.

SECTION 4: This ordinance shall be in full force and effect thirty (30) days from and after its publication and passage.

PASSED, APPROVED, AND ADOPTED this 20th day of June, 2023.

By: ___________________________
Martha A. Flores, Mayor
ATTEST:

John D. Lollis, City Clerk
By: _________________________________
Patrice Hildreth, Chief Deputy City Clerk
Item No. 20.

CITY COUNCIL AGENDA – JUNE 6, 2023
SUBJECT: Consideration of an Ordinance Approving a Development Agreement between the City of Porterville and Cannabis Express, Inc.

SOURCE: Community Development
COMMENT: At its meeting on November 1, 2022, in accordance with an approved Request for Proposals along with recommendations provided by the Cannabis Ad Hoc Committee, the City Council selected to begin negotiations of a development agreement with Bloom Farms. Bloom Farms is proposing a cannabis dispensary to be located at 200 North Main Street. Subsequent to the Council decision to direct staff to begin negotiations of a development agreement with Bloom Farms, the owner of Bloom Farms, Darin Garrett, notified staff that he had received a letter from another company that utilized the same name requesting that Mr. Garrett refrain from using the name Bloom Farms. Accordingly, Mr.

Garrett has changed the name of the proposed cannabis retail dispensary to Cannabis Express, Inc.

Porterville Municipal Code Chapter 15, Article VII outlines the local regulations for cannabis dispensaries. The project went before the Project Review Committee on February 8, 2023. The project site is zoned DR-N (Downtown Retail North of Olive Avenue), in which cannabis dispensaries are permitted subject to the aforementioned regulations. The project is located in the Downtown District, so any exterior changes to the facility must comply with the Downtown Design Guidelines.

The Cannabis Ad Hoc Committee conducted meetings with the applicant in negotiation of the draft development agreement. The draft development agreement includes provisions for term of operation, operational guidelines, community relations and employment. It has an initial term of fifteen (15) years with an option to extend the agreement for an additional five (5) years.

The operator is to comply with California cannabis laws and regulations and only transact business with other legally permitted persons and entities. The operator is required to coordinate and cooperate with the City and any other owners or operators of commercial cannabis dispensaries located within the City of Porterville in the establishment and implementation of a public outreach and education program.

The operator will also be required to coordinate and cooperate with the City and other operators of commercial cannabis facilities located within the City of Porterville in the Council’s establishment and implementation, and the owners’ funding of a community benefits program which could include such items as senior citizen programs, City beautification efforts, funding for enforcement Item No. 20.
against illegal cannabis operations, public safety, housing programs, economic development, infrastructure, capital improvements, including expansion and/or improvement to existing facilities or other physical improvements that provide a benefit to the community, support of holiday and special community events, and support of local public service, public safety, and special social and community organizations. The operator has agreed, as a business expense, to pay the City the yearly sum of $30,000.00 or one percent (1%) of operator’s annual gross receipts, whichever amount is greater, from the commercial operation on the premises. All projects under the community benefits program must be approved by the City and may also be implemented by the City. The designated Community Relations Liaison for Cannabis Express, Inc. is Darren Garrett. The community benefits program is in addition to the cannabis business tax as adopted by Ordinance No. 1875, and Porterville Municipal Code Chapter 22, Article VI, which requires every person engaged in a Commercial Cannabis Business in the City to pay an annual Commercial Cannabis Business tax at a rate established by Resolution of the Council, but no more than ten percent (10%) of annual gross receipts. Resolution No. 99-2020, adopted by the Council at its meeting on December 15, 2020, has currently set the rate at seven percent (7%) of annual gross receipts per fiscal year.

The operator has agreed to make a good faith effort to recruit, hire, and train city residents for employment by the operator and will work with local recruitment sources, including the Employment Connection, to identify qualified individuals who are city (or city area) residents, advertise for qualified city residents in trade papers and newspapers of general circulation in the area, and to recruit and employ city residents as a part of its workforce. The operator commits to a local annual hiring goal of fifty percent (50%) of total operational jobs for permanent and apprentice employees.

The operator has agreed to provide a historical/artistic feature as a component of its project, to be located at or near the project site. The artistic feature will be subject to review by the City Cannabis Ad Hoc Committee and the City's Arts Commission, and the approval of the Council prior to the commencement of work on the feature. Work on the feature must be commenced within two years of the opening of the business.

On April 17, 2023, the Environmental Coordinator made a preliminary determination that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15303 New Construction or Conversion of Small Structures, as the project is a conversion of an existing structure from one use to another in conjunction with minor changes to the facility.

RECOMMENDATION:

That the City Council:

1. Conduct a Public Hearing and consider public testimony;

2. Find the proposed project exempt from CEQA under CEQA Guidelines Section 15303; and
Item No. 20.

3. Approve the draft Ordinance; give first reading by title only, and order the Ordinance to print.

ATTACHMENTS: 1. Draft Ordinance

2. Draft Commercial Cannabis Dispensary Development
Agreement

3. Locator Map

4. Site, Floor and Elevation Plans

5. Draft Indemnification Agreement
Appropriated/Funded:

Review By:

Department Director:

Jason Ridenour, Assistant City Manager
Final Approver: John Lollis, City Manager
1 ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORTERVILLE

APPROVING A DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF PORTERVILLE AND CANNABIS EXPRESS, INC. RELATING TO THE

DEVELOPMENT OF A RETAIL CANNABIS DISPENSARY
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the California State Legislature adopted Government Code Sections 65864 et seq. (the “Development Agreement Statute”) which authorizes cities to enter in agreements for the development of real property with any person having a legal or equitable interest in such property in order to establish certain development rights in such property; and
WHEREAS, in accordance with the Development Agreement Statute, the City of Porterville (“City”) has enacted regulations to implement procedures for the processing and approval of development agreements; and
WHEREAS, Pursuant to Chapter 15, Article VII, Section 15-87, subsection C. of the Porterville Municipal Code, no approval for a Cannabis Business Regulatory Permit may be granted unless the City Council, prior to or concurrently with such approval, also approves a Development Agreement, setting forth the terms and conditions under which the commercial cannabis business will operate in addition to the requirements of Article VII of Chapter 15, all other local ordinances and regulations, State law, and such other requirements as may be promulgated by the City in order to protect and promote the public health, safety, and welfare; and WHEREAS, in accordance with Chapter 15, Article VII of the Porterville Municipal Code, the City of Porterville awarded, via a Request for Proposals process, an opportunity to Cannabis Express, Inc. (“Developer”) to negotiate a Development Agreement and apply for a Cannabis Business Regulatory Permit for the establishment of a Retail Cannabis Dispensary; and WHEREAS, the City and Developer have duly met, negotiated, and agreed upon the terms and conditions for said operation of the commercial cannabis business, to be operated at 200 North Main Street, Porterville, California;
WHEREAS, the Development Agreement will assure the City, its residents, and the Developer that the Development will proceed as proposed and that the public improvements and other amenities and funding obligations will be accomplished as proposed; and WHEREAS, pursuant to Government Code Section 65867 and the City’s Development Agreement regulations, the City Council on June 6, 2023, held a duly noticed public hearing concerning whether to adopt the Development Agreement, during which public hearing the Council received comments from City staff, the Developer, and members of the public. 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORTERVILLE HEREBY ORDAINS as follows:

SECTION 1. This Ordinance incorporates, and by this reference makes a part hereof, the Development Agreement attached hereto as Exhibit A, subject to the provisions of Section 5 hereof.

SECTION 2. This Ordinance is adopted under the authority of California Government Code Section 65854 et seq., and pursuant to the City’s Development Agreement regulations.

SECTION 3. In accordance with the City’s Development Agreement regulations, the City Council hereby finds and determines, as follows:
(a) The Development Agreement is consistent with the objectives, policies, general land uses, and programs specified in the General Plan, in that it establishes certain development rights, obligations, and conditions for the implementation of the subject property;
(b) The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the general plan designations that will apply to the subject property;
(c) The Development Agreement is in conformity with public convenience, general welfare, and good land use practice;
(d) The Development Agreement will not be detrimental to the public health, safety, and general welfare; and
(e) The Development Agreement will not adversely affect the order development of property or preservation of property values.

SECTION 4. The foregoing findings and determinations are based upon the following:
(a) The Recitals set forth in this Ordinance, which are deemed true and correct; (b) The City’s General Plan, and any applicable amendments thereto. (c) All City staff reports (and all other public reports and documents) prepared for the City Council, related to the Development Agreement, and other actions relating to the subject property;
(d) All documentary and oral evidence received at the public hearing or submitted to the City during the comment period relating to the Development Agreement, and other actions relating to the subject property; and
(e) All other matters of common knowledge to the City Council, including but not limited to the City’s fiscal and financial status, City general ordinances, policies and regulations.

SECTION 5. The City Council hereby approves the Development Agreement, attached hereto as Exhibit A, subject to such minor, conforming and clarifying changes 3 consistent with the terms thereof as may be approved by the City Manager, in consultation with the City Attorney prior to execution thereof, including completion of references and status of planning approvals, and completion and conformity of all exhibits thereto, as approved by the City Council.

SECTION 6. CEQA REVIEW. The City Council hereby finds that this ordinance is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) [there is no possibility the activity in question may have a significant affirmative effect on the environment]. In addition to the foregoing general exemption, the City Council further finds that the ordinance is categorically exempt from review under CEQA Guidelines section 15303 [conversion of an existing structure from one use to another in conjunction with minor changes to the facility]. The City Manager is hereby directed to ensure that a Notice of Exemption is filed pursuant to CEQA Guidelines Section 15062.

SECTION 7. Upon the effective date of this Ordinance as provided in Section 11 hereof, the Mayor and City Clerk are hereby authorized and directed to execute the Development Agreement on behalf of the City of Porterville.

SECTION 8. The City Manager is hereby authorized and directed to perform all acts authorized to be performed by the City Manager in the administration of the Development Agreement pursuant to the terms of the Agreement.

SECTION 9. SEVERABILITY. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases of this ordinance, or its application to any other person or circumstance. The City Council of the City of Porterville hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases hereof be declared invalid or unenforceable.

SECTION 10. CONSTRUCTION. The City Council intends this ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this ordinance shall be construed in light of that intent.

SECTION 11. EFFECTIVE DATE. The foregoing ordinance shall take effect thirty (30) days from the date of the passage and adoption. Prior to the expiration of fifteen (15) days from the enactment hereof a certified copy of this ordinance shall be posted in the office of the City Clerk pursuant to Government Code Section 36933(c)(1) and a summary shall be published once in the Porterville Recorder, a newspaper printed and published in the City of Porterville, State of California, together with the names of the Council members voting for and against the same.
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4 PASSED, APPROVED AND ADOPTED this _______day of June, 2023.

By:

Martha A. Flores, Mayor
ATTEST:

John D. Lollis, City Clerk
___________________________________
By: Patrice Hildreth, Chief Deputy City Clerk
1 RECORDING REQUESTED BY |
City of Porterville |
AND WHEN RECORDED MAIL TO: |
City of Porterville |
291 N. Main Street |
Porterville, CA 93257 |
Attention: City Manager |
=================================================================

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

COMMERCIAL CANNABIS DISPENSARY DEVELOPMENT

AGREEMENT BETWEEN THE CITY OF PORTERVILLE AND
CANNABIS EXPRESS, INC.

THIS DEVELOPMENT AGREEMENT (this “Agreement”) is made and entered into this day of June, 2023, (the “Execution Date”), by and between the CITY OF PORTERVILLE, a California municipal corporation (“City”) and CANNABIS EXPRESS, INC. ("Owner"). City and Owner are sometimes referenced together herein as the “Parties.” In instances when a provision hereof applies to each of the Parties individually, either may be referenced as a “Party.” The Parties hereby jointly render the following statement as to the background facts and circumstances underlying this Agreement:

RECITALS
WHEREAS, the State of California enacted California Government Code Sections 65864 et seq. (“Development Agreement Statutes”) to authorize municipalities to enter into development agreements with those having legal or equitable interests in real property to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development in connection with the development of real property within their jurisdiction; WHEREAS, the purpose of the Development Agreement Statutes is to authorize municipalities, in their discretion, to establish certain development rights in real property for a period of years regardless of intervening changes in land use regulations, to vest certain rights in the Owner, and to meet certain public purposes of the local government; WHEREAS, the City has adopted Municipal Code Article 609, establishing the procedures and requirements for the consideration of development agreements with the City;
WHEREAS, Owners currently hold legal or equitable interest in real property considered in this Agreement which has a development area approximately 3,850 square feet located at 200 North Main Street, City of Porterville, State of California (the “Site”). The Site includes Assessor’s Parcel Number: 253-182-001, and is more fully 2 described in Exhibit A and shown on the map in Exhibit B. Both exhibits being attached hereto and incorporated herein by this reference;
WHEREAS, presently, the owner and CEO of Cannabis Express, Inc., Darin Garrett, owns the site/real property for the purpose of commercial cannabis related activities, specifically the development and operation of a commercial cannabis dispensary. Such Commercial Cannabis facilities shall operate in accordance with all applicable provisions of Business and Professions Code §§26000-26231.2; California Health and Safety Code Safety Code §§ 11357-11362.9 and 11362.7- 11362.85; Revenue and Taxation Code §§ 34010-34021.5; Vehicle Code §§ 2429.7 and 23222; Water Code §§ 1831, 1847, and 13276; the City of Porterville Municipal Code as it applies to such facilities (collectively the “Applicable Cannabis Laws”), and all Resolutions and procedures adopted or authorized by the City in accordance with those laws and regulations. Prior to operating a commercial dispensary Owner shall be required to obtain a Commercial Cannabis Permit from the City, and all related permits and licenses prior to the operation of same, pursuant to Chapter 15, Article VII and Chapter 21, Article 609 of the Porterville Municipal Code.

WHEREAS, Owner has obtained or will obtain a California State License issued, pursuant to Applicable Cannabis Laws, to operate a commercial storefront dispensary at the Site. The definition of "Property Owner" hereunder shall mean and refer to the fee simple owner of the property. The definition of “Owner” hereunder shall mean and refer to any authorized tenant of the Site to the extent such party holds or is covered by a Commercial Cannabis Permit;
WHEREAS, Owner has applied to this City for a Commercial Cannabis Permit (hereinafter "CCP”) to conduct Commercial Cannabis Activities. No such activities are allowed or authorized without a Development Agreement, a Commercial Cannabis Permit, and all requirements pursuant to the above-referenced City regulations.

WHEREAS, Owner presently intends to develop and open a commercial storefront dispensary on the Site consistent with the Applicable Cannabis Laws and Project Approvals (known as the “Project”).

WHEREAS, the Project will consist of: one commercial building totaling approximately 3,850 square feet.

WHEREAS, in 2019, Ordinance Nos. 1853 and 1854 came into effect authorizing specified Commercial Cannabis Activities within the City of Porterville, in strict compliance with related State of California laws, regulations and policies, under specified conditions and provisions;
WHEREAS, all procedures of the California Environmental Quality Act (“CEQA”), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied; 3 WHEREAS, the City has given public notice of its intention to adopt this Agreement and has conducted public hearings thereon pursuant to California Government Code §65867. The City has found that the provisions of this Agreement and its purposes are consistent with the objectives, policies, general land uses and programs specified in City’s General Plan, zoning code and municipal ordinances; WHEREAS, the City, in entering into this Agreement, acknowledges that certain City obligations hereby assumed shall survive beyond the terms of the present Council members, that this Agreement will serve to bind City and future Councils to the obligations hereby undertaken, and that this Agreement shall limit the future exercise of certain governmental and proprietary powers of City. By approving this Agreement, the Council has elected to exercise certain governmental powers at the time of entering into this Agreement rather than defer its actions to some undetermined future date. The terms and conditions of this Agreement have undergone extensive review by City and the Council and have been found to be fair, just and reasonable. City has concluded that the pursuit of the Project will serve the best interests of its citizens and that the public health, safety and welfare are best served by entering into this obligation. Owner(s) has represented to City that it would not consider or engage in the Project absent City approving this Agreement;
WHEREAS, the City agrees that Owner’s land use entitlements for the Project shall vest for the term of this Agreement as described below; WHEREAS, in conjunction with the City’s applicable ordinances and resolutions, the Zoning Administrator of the City reviewed, considered and recommended environmental clearance and recommended approval of the execution of this Agreement to the City Council. The Zoning Administrator found the Project: consistent with the objectives, policies, general land uses and programs specified in the general plan; compatible with the uses authorized in the City’s zoning laws; in conformity with the public necessity, public convenience, general welfare and good land use practices; will not be detrimental to the health, safety and general welfare of the city; will not adversely affect the orderly development of property or the preservation of property values; and will have a positive fiscalimpact on the City;
WHEREAS, after conducting a duly noticed hearing on INSERT DATE, in conjunction with the City’s applicable ordinances and resolutions, and after independent review and consideration, the City Council approved the execution of this Agreement. The City Council found the Project: consistent with the objectives, policies, general land uses and programs specified in the general plan; compatible with the uses authorized in the City’s zoning laws; in conformity with good land use practices; will not be detrimental to the health, safety and general welfare of the City; and is in the best interest of the City of Porterville and its residents.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal 4 sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

1. Government Code and Municipal Code Required Elements • Description of Property. Land situated in the City of Porterville, County of Tulare, State of California; whose street address is 200 North Main Street, City of Porterville, State of California (the “Site”). The Site includes Assessor’s Parcel Number: 253-182-001.
• Owner and Other Person with Legal or Equitable Interest.

Owner: Darin Garrett
Nature of Interest: Owner
If Owner is not the fee simple owner of the Site, check box below:
[ X] Owner represents and warrants that the property owner has consented in writing to the execution and recordation of this Agreement against the Site. See attached Landlord Consent agreement, incorporated herein by this reference (Exhibit A).
• Permitted Uses. The subject property may be used for commercial storefront cannabis dispensary as presently authorized under City Chapter 15, Article VII of the Porterville Municipal Code, §§ 15-85 through 15-105 and Chapter 21, Section 301.23, and 609.01 through 609.11, and for any other use as authorized under applicable provisions of the Porterville Municipal Code. • Zoning. Owner shall guarantee that such activities outlined in Owner’s Commercial Cannabis Permit Application (“Application”) conducted pursuant to this Agreement and under the Commercial Cannabis Permit shall comply with the City’s municipal code, including the above-referenced zoning regulations and any and all development and construction requirements contained therein. Owner shall not conduct any business under this Agreement or under the Commercial Cannabis Permit without having obtained all necessary permits, licenses, and approvals from the City and State of California.
• Reservation or Dedication of Land for Public Purposes. If needed, sufficient roadway, sidewalk, and utility easements shall be reserved or dedicated to City for such purposes.

2. Term
This Agreement shall commence on the date the Ordinance approving this Agreement goes into effect (the “Effective Date”) and it shall end fifteen (15) years from the starting date, and it shall remain in full force and effect so long as the subject property has been developed and is used for a commercial cannabis 5 facility as authorized under City Ordinance Nos. 1853 and 1854; provided, however, that such use must be commenced and begin operating within two (2) years of the Effective Date, and said operations/use is not abandoned for a period of more than ninety (90) days. This Agreement shall be extended for up to 1 additional 5-year period following the expiration of the initial fifteen (15) year term upon the occurrence of all of the following:
(i) The Owner shall give written notice to the City no later than one hundred twenty (120) days before the expiration of the initial fifteen year term that the Owner desires to extend this Agreement for an additional 5-year period;
(ii) The Owner shows adequate evidence to the City that it has a legal and/or equitable interest in the Property and/or will have such interests for the duration of the extended term of the Agreement;
(iii) The Owner shall deposit all fees required by the City necessary for processing the extension request and drafting necessary documentation; (iv) The Owner shall be in compliance with all provisions of Ordinance Nos. 1853 and 1854, and all terms imposed by the City-issued Commercial Cannabis Permit; and
(v) The Owner shall not be in default of any provision of any agreement between City and Owner relative to the development of the Property or of any condition of approval imposed upon any entitlement granted by the City relative to the development of the Property for which Owner has been given a written notice to cure by the City and for which Owner has not cured or commenced to cure such default within thirty (30) days, if and as provided by such agreement or condition of approval.

3. General Business/Store and Offices – The facility will maintain hours of operation consistent with Section 15-87.L. of the Municipal Code, with generally a minimum of eight employees per shift. The parties may agree to a different number if warranted by the business volume.

4. Parking/Loading Access. The proposed project is located in Downtown Parking District 1 Zone A, which does not require parking spaces for businesses within it, if the building is three (3) floors or less. The project complies with the CALGreen Tier 1 by incorporating storm water pollution prevention measures, installing energy- and water-efficient equipment, and planting native and drought-tolerant landscaping at the front of theproperty.

5. Security: The project will secure the facility against unauthorized entry by installing security lights on the exterior of the building to illuminate the side areas and parking area, installing commercial-grade locks, installing an alarm and video 6 surveillance system, establishing procedures for identifying authorized persons, establish inventory controls, and install a secure surveillance vault to maintain the integrity of records. Further, the project shall have a separately secured, limited access area, where all persons must be at least 21 years of age and have a business reason for entering the area; non-employees with authorized access must be escorted, and an access log must be maintained. In addition, the applicant will engage a licensed security company to provide an operational security plan in compliance with applicable City Regulations and policies.

6. Owner’s Site and Floor Plans
• Owner’s site plan and floor plan for the facility are attached hereto as Exhibit B and incorporated into the Application. • A preliminary landscape plan shall be prepared and reviewed and approved by the City Manager, the Community Development Director, the Engineering and Project Management Director, and/or their respective designees.

A final landscape plan shall be prepared and submitted in conjunction with building and site improvement plans prior to issuance of building permits for construction activities.
• An exterior signage plan shall be prepared and reviewed and approved by the appropriate City staff in accordance with the procedures and requirements of the Porterville Municipal Code. Owner agrees that it will not use the words “Cannabis” or “Marijuana” (or any forms or derivatives of the words) in the business name signage.

7. Facility Operations
• Standard Operating Procedures. Owner is a lawful entity that will only transact business with other legally permitted persons and entities under the California Cannabis Laws. Prior to operating a dispensary, Owner shall be required to obtain a Commercial Cannabis Permit, and all requirements pursuant to said permit, from the City pursuant to City Ordinance Nos. 1853 and 1854.

Further, and notwithstanding anything to the contrary, Owner may operate such cannabis-related activities as permitted in accordance with California state laws and regulations, as may be amended, including without limitation, as long as such activity is not inconsistent with Ordinance Nos. 1853 and 1854, this Development Agreement, the City-issued Commercial Cannabis Permit, and the Porterville Municipal Code.

During the term of its CCP and the term of this Agreement, Owner shall lawfully operate in accordance with all state and local laws. Owner shall employ exemplary operating procedures to comply with state and local laws. Owner’s facility shall employ safety and security measures for the safety and security of its 7 employees, visitors, vendors, and neighboring communities and properties.

Owner shall fully comply with the minimum Operating Standards regulating the proposed Commercial Cannabis Activity as set forth in Chapter 15, Article 7, Sections 15-85 thorugh15-105 of the Porterville Municipal Code, and those required by Ordinance No. 1853.
• Security Plan. Owner shall secure approval of its proposed security plan by the City prior to operating, and has attached its draft plan as Exhibit C. The security plan shall include, at a minimum and as appropriate, provisions for video surveillance, perimeter fencing and/or security, protection of the building(s) from vehicle intrusion, cash handling procedures, internal accounting controls, product handling and storage procedures, and a professionally monitored alarm system.

Equipment and systems used for video surveillance and building alarms shall be approved by City. See Porterville Municipal Code Section 15-87, subsections (N) and (O), for minimum security requirements.

Video surveillance shall include, at a minimum, all site and facility entrances and access points, all spaces accessible by the public, all secured areas of the facility with restricted access, all interior spaces and rooms where cannabis products are handled, shipping and receiving areas, cash storage areas, and other areas necessary to protect the safety of employees and the public and to ensure cannabis products are received, handled, stored, and sold in compliance with applicable state and local laws and regulations. The video surveillance system shall be web-based with direct access provided to the City of Porterville Police Department upon request.

The security system shall also include sensors to detect entry and exit from all secure areas, panic buttons in appropriate locations, and a professionally monitored alarm system with glass breakage sensors and motion detectors.

Owner shall employ properly trained and licensed third-party security personnel to protect the welfare and safety of Owner and employees, and to ensure public safety to the neighboring community. Owner shall use security personnel during all hours of business operations. Security personnel may be armed so long as proper licensing and insurance requirements are followed and met by the thirdparty operator providing such security services.

Further, the project shall have a separately secured, limited access area, where all persons must be at least 21 years of age and have a business reason for entering the area; non-employees with authorized access must be escorted, and an access log must be maintained. The (nonlimited access) reception area shall be completely separated and secured from the dispensary operations, and shall be operated in conformity with all applicable laws and regulations, and by an employee at least 21 years of age, with concurrent monitoring by onsite security personnel.
8 • Fire Department Approval. Owner shall not operate any facility, and no permit, license, or other approval issued by City shall be valid unless and until the Porterville Fire Department has approved Owner’s site plan, floor plan, safety plan, and any other plans that require its approval.
• Possession of Firearms. Except for licensed and bonded security personnel, no person employed or contracted by Owner shall be in possession of any firearm while on the premises or location without having first obtained a license from the appropriate state or local agency authorizing the person to be in possession of such firearm. Every such person in possession of a firearm while on the premises or location must provide the City Manager and the Porterville Police Department, ten (10) days before bringing the firearm onto the premises, with thefollowing:
1) A copy of the license issued to the person by the appropriate state or local agency authorizing him or her to possess suchfirearm; 2) A copy of his or her law enforcement identification (if he or she is employed by a law enforcement agency);
3) A copy of his or her California driver’s license or California identification card; and
4) Any other information reasonably required by the Porterville Police Department to show that the individual is in compliance with the provisions of all laws regarding the possession and use of a firearm. • Identification Display. Each owner, manager, employee, and individual member engaged in the operation of the business shall at all times while engaged in the duties of his or her position wear in plain sight, on his or her person and at chest level, a valid identification badge, issued by Owner. • Employee Background Checks and Procedures for Inventory Control to Prevent Non-Medical Diversion of Medical Cannabis. Only employees who receive the required background clearance pursuant to Section 15-89 of the Porterville Municipal Code shall be permitted to enter Owner’s facility. Each employee will have to meet a criminal background investigation as required by the City, which at minimum shall include a LiveScan criminal history check, which City shall make a good faith effort to facilitate within a reasonable time following the issuance of a Commercial Cannabis Permit(s) or license(s) to Owner.

Owner shall take all necessary and reasonable steps to prevent the sale or distribution of any of its cannabis products to minors; prevent revenue from the sale or distribution of its cannabis and/or infused products from going to criminal enterprises, gangs and cartels; prevent the diversion of cannabis from California 9 to any other state; prevent state-authorized cannabis activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; prevent violence and the use of firearms in the sale of cannabis; discourage and educate against drugged driving and the exacerbation of other adverse public health consequences associated with cannabis use; disavow growing cannabis on public lands that creates attendant public safety and environmental dangers posed by such illegal uses; and discourage and educate against cannabis possession or use on federal property.
• Point of Sale Tracking System. Owner shall maintain an inventory control and reporting system that accurately documents the cannabis products. The inventory control and reporting system shall comply with the track and trace program required by California Cannabis Law and regulations issued thereunder.

Owner shall employ an electronic point of donation/sale system approved by the State of California for all point of donations/sales tracking from seed or inception to product distribution to other licensed commercial cannabis facilities. Such approved system shall track all commercial cannabis products, each edible, harvested flower, and/or manufactured concentrate, as well as gross sales (by weight and sale). Owner's point of sale system shall have the capacity to produce historical transactional data in accordance with City's requirements. • Record Keeping. Owner shall maintain records for all commercial cannabis and/or infused products. Owner shall comply with all record-keeping responsibilities that are set forth in Ordinance No. 1853, Section 15-87(O) of the Porterville Municipal Code, including complete and up-to-date records regarding the amount of commercial cannabis delivered and sold, and applicable State law. • Commercial cannabis sales shall not create offensive odors; create excessive dust, heat, noise, smoke, traffic, or other impacts that are disturbing to people of normal sensitivity residing or present on adjacent or nearby property or areas open to the public; or be hazardous due to use or storage of materials, processes, products, or wastes.

Owner shall store its commercial cannabis and/or commercial cannabis products in a locked safe room with T-card identification access for management only. The safe room shall be constructed of fire-rate walls with numerous cameras installed to view all entries and exits from the safe room, as well as all other activities performed within Owner’s facility. Owner will not conduct outdoor operations except as related to lawful delivery and transportation of commercial cannabis and infused products. Owner will not store commercial cannabis or related products in its delivery vehicle outside normal operating hours of the facility.

Any excess or contaminated product will be securely stored on-site until it is properly disposed. Disposal may include composting, incineration, land-fill disposal through the local waste management hauler, or other disposal 10 methodology in accordance with state and county health and safety codes and regulations.
• Description of Banking Plan. Owner shall seek to open a bank account under the name of Owner or its associated management company to provide transparency for funds received, operational costs, including payroll, tax payments to the state and federal governments. Should a bank account not be forthcoming, Owner shall implement other industry standard banking and/or other industry standard transactional mechanisms.
• Transportation and Delivery Plan. Owner shall comply with all state and local law regarding transportation and delivery, including the rules governing delivery service. Owner shall retain a list of names and cellular contact numbers for all employees engaged in transportation and/or delivery of commercial cannabis products and provide it to the applicable oversight authority, keeping the list current and up to date.

Owner will keep complete and up-to-date records documenting each delivery, including the amount/product(s) provided, the date and time provided, the name of the employee making the delivery, the name and address of the individual corporation to whom delivery is made, and the amount of the related sale/ monetary transaction.

8. Community Relations, Employment, and Wages
• Public Outreach and Education Program. The Owner shall coordinate and cooperate with City and any other Owners of commercial cannabis dispensaries located within City of Porterville in the establishment and implementation of appropriate public outreach and education programs. The public outreach and education programs shall be approved by City.
• Community Benefits Program. The Owner shall coordinate and cooperate with the City and other Owners of commercial cannabis facilities located within the City of Porterville in the City Council’s establishment and implementation, and the Owners’ funding of a community benefits program which could include such items as senior citizen programs, City beautification efforts, funding for enforcement against illegal cannabis operations, public safety, housing programs, economic development, infrastructure, capital improvements, including expansion and/or improvement to existing facilities or other physical improvements that provide a benefit to the community, support of holiday and special community events, and support of local public service, public safety, and special social and community organizations. This community benefits program may be implemented by the City. The City may invite public participation in the decision-making process for identifying and prioritizing community needs and benefits, and identifying appropriate projects to be funded by the entity implementing this community benefits program. All projects under the community 11 benefits program must be approved by the City.

Owner agrees, as a business expense, to pay the City the yearly sum of $30,000.00 or 1% of Owner’s annual gross receipts, whichever amount is greater, from the commercial operation on the Premises. Unless otherwise agreed to in writing by the parties the above amount shall be paid over the course of the calendar year on a quarterly basis, with payments due within 30 days of the end of each quarter. The first payment shall be due at within 30 days of the end of the first quarter for which the commercial operation at the Premises was operational and prorated to account for when during the quarter the opening occurred.
• Designation of Community Relations Liaison. At the time of this Agreement, Owner’s day-to-day operations managers, Darin Garrett and/or Maria Marrero, will be responsible for community inquiries and complaints and on-site management during normal business hours.
• Interface with City of Porterville Police / Inspections. Owner’s day-to- day operations manager, and/or the Owner’s Community Relations Liaison, Darin Garrett, will interface with the Porterville Police Department's assigned designee to ensure its operation complies with state and local laws and regulations. The City Manager, or designee, or the Porterville Police Department's assigned designee acting at the City Manager's request and per his specific and limiting instructions, shall have the right to enter all Premises from time to time unannounced during hours of operation for the purpose of making reasonable inspections to observe and enforce compliance with this Agreement and state and local laws and regulations, without the requirement of a search warrant, subpoena, or court order, and subject to appropriate cost recovery fees set forth in this Agreement, or adopted by the City. See, Ordinance No. 1853, as well as Porterville Municipal Code Section 15-87, 15-96.

Owner's Initials
• Local Recruitment, Hiring, and Training Programs. Owner is committed to making a good-faith effort to recruit, hire, and train City residents for employment by Owner. A good-faith effort means Owner shall take the following or similar actions to recruit and employ City residents: 1) Contact local recruitment sources, including the Employment Connection, to identify qualified individuals who are City (or City area) residents, 2) Advertise for qualified City residents in trade papers and newspapers of general circulation in the area, and 3) Develop a written plan to recruit and employ City residents as a part of the its workforce. The Owner commits to a local annual hiring goal of 50% of total operational jobs for permanent and apprentice employees. This goal shall apply horizontally, across all departments and managerial positions. The Owner shall not be penalized or deemed in default under this Agreement if it is unable to achieve such a goal. 12 "Local" is defined as within a 3-mile radius of the boundaries of the City’s boundaries. The Owner shall contact and work with a job referral agency (e.g. the Employment Connection) assigned by the City Manager to implement a local hiring policy for permanent and apprentice employees. The purpose of the hiring policy is to facilitate the training and employment of local and disadvantaged job applicants for jobs within the City’s jurisdiction, and 3-mile radius of City boundaries. Applicants for jobs shall not be disqualified from hiring solely on the basis of an arrest or conviction for a Cannabis-related crime that occurred prior to November 8, 2016, and could have been prosecuted as a misdemeanor or citation under current California law. The Owner shall report on compliance with the local hiring goals as part of its annual audit report.

9. Public Art Feature/Element. Owner agrees to provide a historical/artistic feature as a component of its project, located at or near the Property (for example, the completion of a mural located on the second story of the building along Putnam Avenue). The artistic feature will be subject to the review of the City Cannabis Ad Hoc Committee and City of Porterville Arts Commission, and the approval of the City Council, prior to the commencement of work on the feature. Work on the feature must be commenced within two years of the opening of the business.

10. Indemnification Agreement by each Cannabis Permittee Pursuant to Ordinance Nos.1853 and 1854, and including Porterville Municipal Code Section 15-87(T), to the fullest extent permitted by local, state and/or federal law, the City of Porterville shall not assume any liability whatsoever with respect to having issued a Commercial Cannabis Permit or executed a Development Agreement pursuant Ordinance No. 1853 and Chapter 609 of the Development Code, or otherwise approving the operation of any commercial cannabis business.

As a condition to the approval of any Commercial Cannabis Permit and to the execution and approval of a Development Agreement, the Owner shall be required to meet all the conditions enumerated in Porterville Municipal Code Sections 15- 85 through 15-105, before this Agreement may be executed, and before they can receive the Commercial Cannabis Permit. The City Manager shall require the Owner and Property Owner/each Commercial Cannabis Permittee to execute a separate Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the Commercial Cannabis Permit, the Commercial Cannabis Permittee's Commercial Cannabis Activities, and any action taken by the Cannabis Permittee, and/or arising out of Owner’s or Property Owner’s obligations under this Agreement. The Indemnification Agreement shall include the defense of the City and reimbursement of all fees, costs and expenses incurred by the City related to any action arising from this Agreement. Attached as Exhibit E, and incorporated herein by this reference, is true and correct copy of a fully executed Indemnification Agreement.

11. Fees, Costs, and Taxes
13 • Permit Fees. Owner agrees to pay all permit fees and charges authorized and referenced in Ordinance Nos. 1853 and 1854, all amounts adopted by City Council and as required by applicable laws and regulations, and any fees set forth in this Agreement. Permit application, processing, and renewal fees shall be due and payable at the time application is made or renewed. • Cannabis Business Tax. Owner shall comply with all provisions of Ordinance No. 1875, and Porterville Municipal Code Chapter 22, Article VI, which requires every person engaged in a Commercial Cannabis Business in the City to pay an annual Commercial Cannabis Business tax at a rate established by resolution of the City Council, but no more than 10% of annual gross receipts.

Resolution No. 99-2020, adopted by the City Council on December 15, 2020, has currently set the rate at 7% of annual gross receipts per fiscal year.

Copies of Tax Filings. Owner shall additionally provide the City with courtesy copies of each and every report Owner is required to provide to the County of Tulare or the State of California for sales, use, or other tax purposes at the time such filings are made.

12. Insurance
• Insurance. Owner shall require all persons doing work on the Project, including its contractors and subcontractors (collectively, “Owner” for purposes of this Article 6 only), to obtain and maintain insurance of the types and in the amounts described in this section and its subsections with carriers reasonably satisfactory to City.
• General Liability Insurance. Owner shall maintain commercial general liability insurance or equivalent form with a limit of not less than One Million Dollars ($1,000,000) per claim and One Million Dollars ($1,000,000) each occurrence. Such insurance shallalso:
1) 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.
2) Be primary with respect to any insurance of self-insurance programs covering City, its officials, employees, agents, and representatives. 3) Contain standard separation of insured provisions.
• Automotive Liability Insurance. Owner 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 for the vehicles Owner operates in connection with its cannabis business. Such insurance shall include coverage for 14 owned, hired, and non-owned automobiles. Such insurance shall also:
1) Name City, and work in good faith with the City and the insurers to name additional insureds as deemed reasonably necessary. “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; 2) Be primary with respect to any insurance or self-insurance programs covering City, its officials, employees, agents, and representatives; 3) Contain standard separation of insured provisions.
• Workers’ Compensation Insurance. Owner shall take out and maintain during the term of this Agreement, workers’ compensation insurance for all of Owner’s employees employed at or on the Project, and in the event any of the work is subcontracted, Owner 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 Owner. In case any class of employee engaged in work on the Project is not protected under any workers’ compensation law, Owner shall provide and shall cause each contractor and subcontractor to provide adequate insurance for the protection of employees not otherwise protected.

Owner hereby indemnifies City for any damage resulting from failure of Owner, 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) each accident shall be maintained.
• Other Insurance Requirements. Owner shall do all of the following:
1) Prior to taking any actions under this Agreement, furnish City with properly executed certificates of insurance that clearly evidenced all insurance required in this Article, including evidenced that such insurance will not be canceled, allowed to expire, or be materially reduced in coverage without thirty (30) days prior written notice to City. 2) Provide to City, upon request, and within seven (7) calendar days of said request, certified copies of endorsements and policies, and properly executed certificates of insurance evidencing the insurance required herein.
3) Replace or require the replacement of certificates, policies and endorsements for any insurance required herein expiring prior the termination of this Agreement.
15 4) 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.
5) 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.

13. Termination
• Termination Upon End of Term. 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 shall record a notice of such termination and this Agreement shall be of no further force or effect except as otherwise set forth in this Agreement.
• Termination for Default. This Agreement may be terminated upon the Owner’s default, in accordance with Section 16 below.
• Effect of Termination on Owner’s Obligations. Termination of this Agreement shall eliminate any further obligation of Owner to comply with this Agreement, or some portion thereof, if such termination relates to only part of the Site or Project. Termination of this Agreement, in whole or in part, shall not, however, eliminate the rights of Owner to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination. • Effect of Termination on City’s Obligations. Termination of this Agreement shall eliminate any further obligation of City to comply with this Agreement, or some portion thereof. Termination of this Agreement shall not, however, eliminate the rights of City to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination. • Survival After Termination. The rights and obligations of the Parties set forth 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.

14. Resources Efficiency
Owner shall endeavor to reduce its environmental impact when possible. The design of the facility shall include reasonable water and energy conservation measures in accordance with applicable State regulations.

15. Standard Conditions for Construction
16 During any on-site construction activities related to development of the project site and any buildings thereon, or renovation or remodeling of existing buildings, Owner shall comply with all state and local building and construction laws, regulations, and guidelines. The Project shall comply with the applicable parking standards established by the City for these particular cannabis activities.

16. Defaults and Remedies
• Remedies in general. It is acknowledged by the parties that City would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof, except as hereinafter expressly provided. Subject to extensions of time by mutual consent in writing, failure to delay by either party to perform any term or provision of this Agreement beyond a reasonable notice and cure period shall constitute a default and constitute grounds to terminate the Agreement and/or pursue available legal remedies. In the event of alleged default or breach of any terms or conditions of this Agreement, the party alleging such default or breach shall give the other party not less than thirty (30) day notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured during any such thirty (30) day period, the party charged shall not be considered in default for purposes of termination or institution of legal proceedings. Notwithstanding the foregoing to the contrary, if the alleged default is of such a nature that it cannot be cured within thirty (30) days, the alleged defaulting party shall not be deemed in default as long as such party commences to cure such default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion.

After notice and expiration of the thirty (30) day period, the other party to this Agreement, at its option, may terminate this Agreement and/or institute legal proceedings pursuant to this Agreement.

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement including but not limited to the termination of this Agreement, except that City shall not be liable in monetary damages, unless expressly provided for this Agreement, to Owner, to any mortgagee or lender, or to any successors in interest of Owner or mortgagee or lender, or to any other person, and Owner covenants on behalf of itself and all successors in interest to the Property or any portion thereof, not to sue for damages or claim any damages:
1) For any breach of this Agreement or for any cause of action which arises out of this Agreement; or
2) For the impairment or restriction of any right or interest conveyed or provided under, with, or pursuant to this Agreement, including, without limitation, any impairment or restriction which Owner characterizes as a 17 regulatory taking or inverse condemnation; or
3) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement.

Nothing contained herein shall modify or abridge Owner’s rights or remedies (including its rights for damages, if any) resulting from the exercise by City of its power of eminent domain. Nothing contained herein shall modify or abridge Owner’s rights or remedies (including its rights for damages, if any) resulting from bad faith intentional acts, the grossly negligent or malicious acts of City and its officials, officers, agents and employees. Nothing herein shall modify or abridge any defenses or immunities available to City and its employees pursuant to the Government Liability Act and all other applicable statutes and decisional law.

Except as set forth in the preceding paragraph relating to eminent domain, Owner’s remedies shall be limited to those set forth in this Section.

Notwithstanding anything to the contrary contained herein, City covenants as provided in Civil Code Section 3300 not to sue for or claim any consequential damages or, in the event all or a portion of the Property is not developed, for lost profits or revenues which would have accrued to City as a result of the development of the Property.
• Specific Performance. The parties acknowledge that money damages and remedies at law are inadequate, and specific performance and other nonmonetary relief are particularly appropriate remedies for the enforcement of this Agreement and should be available to all parties for the following reasons:
1) Except as provided in this Agreement, money damages are unavailable against City.
2) Due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, Owner may be foreclosed from other choices it may have had to use the Property or portions thereof. Owner has invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, and it is not possible to determine the sum of money which would adequately compensate Owner for such efforts; the parties acknowledge and agree that any injunctive relief may be ordered on an expedited, priority basis.
• Release. Except for those remedies set forth in this Agreement, Owner, for 18 itself, its successors and assignees, hereby releases City, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, based or asserted, pursuant to Article 1, Section 19 of the California Constitution, the Fifth Amendment of the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon City because it entered into this Agreement or because of the terms of this Agreement.

Owner acknowledges that it may have suffered, or may suffer, damages and other injuries that are unknown to it, or unknowable to it, at the time of its execution of this Agreement. Such fact notwithstanding, Owner agrees that the release provided in this Section shall apply to such unknown or unknowable claims and damages. Without limiting the generality of the foregoing, Owner acknowledges the provisions of California Civil Code Section 1542, which provide:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” Owner hereby waives, to the maximum legal extent, the provisions of California Civil Code Section 1542 and all other statutes and judicial decisions of similar effect.

Owners’ Initials
• Termination of Agreement for Default of City. Owner may terminate this Agreement in the event of a default by City in the performance of a material term of this Agreement and only after providing written notice to City of default setting forth the nature of the default and the actions, if any, required by City to cure such default and, where the default can be cured, City has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. Notwithstanding anything to the contrary, in the event that Owner deem it is necessary and/or advisable to cease operations in Porterville, then Owner may terminate this Agreement, and such termination shall be effective upon the date of written notice to the City.
• Attorneys’ Fees and Costs. In any action or proceeding between City and Owner brought to interpret or enforce this Agreement, or which in any way arises out of the existence of this Agreement or is based upon any term or provision contained herein, the “prevailing party” in such action or proceeding shall be entitled to recover from the non-prevailing party, in addition to all other relief to 19 which the prevailing party may be entitled pursuant to this Agreement, the prevailing party’s reasonable attorneys’ fees and litigation costs, in an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section include those incurred during any appeal from an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding.
• Owner Default. No building permit shall be issued or building permit application accepted for any structure on the Property after Owner is determined by City to be in default of the terms and conditions of this Agreement until such default thereafter is cured by Owner or is waived by City. If City terminates this Agreement because of Owner’s default, then City shall retain any and all benefits, including money or land received by City hereunder.

17. Third Party Litigation
• General Plan Litigation. City has determined that this Agreement is consistent with its General Plan. Owner has reviewed the General Plan and concurs with City’s determination.

City shall have no liability under this Agreement or otherwise for any failure of City to perform under this Agreement, or for the inability of Owner to develop the Property as contemplated by the Agreement, which failure to perform or inability to develop is as the result of a judicial determination that the General Plan, or portions thereof, are invalid or inadequate or not in compliance with law, or that this Agreement or any of City’s actions in adopting it were invalid, inadequate, or not in compliance with the law.
• Hold Harmless Agreement. To the fullest extent permitted by law, Owner hereby agrees to, and shall hold City, its elective and appointive boards, commissions, officers, agents, attorney's, contractors, consultants and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Owner or Owner’s contractors, subcontractors, agents, or employees’ operations under this Agreement, whether such operations be by Owner, or by any of Owner’s contractors, subcontractors, agents, or employees operations under this Agreement, whether such operations be by Owner, or by any of Owner’s contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for Owner or any of Owner’s contractors or subcontractors. Owner agrees to and shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid operations. • Indemnification. To the fullest extent permitted by law, Owner shall defend, 20 indemnify, and hold harmless City and its elective and appointive boards, commissions, officers, agents, attorney's, contractors, consultants and employees against and from any and all liabilities, demands, claims, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and reasonable attorneys’ fees), which any or all of them may suffer, incur, be responsible for or pay out as a result of or in connection with any challenge to the legality, validity or adequacy of any of the following: (i) this Agreement and the concurrent and subsequent permits, licenses and entitlements approved for the Project or Property; (ii) the environmental impact report, mitigated negative declaration or negative declaration, as the case may be, prepared in connection with the development of the Property; (iii) any claims based on or alleging inverse condemnation by any person or entity with an interest in the Property; and (iv) the proceedings undertaken in connection with the adoption or approval of any of the above. In the event of any legal or equitable action or other proceeding instituted by any third party (including a governmental entity or official) challenging the validity of any provision of this Agreement or any portion thereof as set forth herein, the parties shall mutually cooperate with each other in defense of said action or proceeding. Notwithstanding the above, City, at is sole option, may tender the complete defense of any third-party challenge as described herein. In the event City elects to contract with special counsel to provide for such a defense, City shall meet and confer with Owner regarding the selection of counsel, and Owner shall pay all costs related to retention of such counsel. This Indemnification is provided in addition to that set forth in Section 7. • Environmental Contamination. To the fullest extent permitted by law, Owner shall indemnify and hold City, its elective and appointive boards, commissions, officers, agents, attorney's, contractors, consultants and employees free and harmless from any liability, based or asserted, upon any act or omission of Owner, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors, excepting and acts or omissions of City as successor to any portions of the Property dedicated or transferred to City by Owner, for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and Owner shall defend, at its expense, including attorneys’ fees, City, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. City may in its discretion participate in the defense of any such claim, action or proceeding. This Indemnification is provided in addition to that set forth in Section 7.

The provisions of this Section do not apply to environmental conditions that predate Owner’s ownership or control of the Property or applicable portion; provided, however, that the foregoing limitation shall not operate to bar, limit or modify any of Owner’s statutory or equitable obligations as an owner or seller of the Property.
21 • City to Approve Counsel. With respect to this Section, City reserves the right to approve the attorney(s) which Owner selects, hires or otherwise engages to defend City hereunder, which approval shall not be unreasonably withheld. • Accept Reasonable Good Faith Settlement. With respect to this Section, City shall not reject any reasonable good faith settlement. If City does reject a reasonable, good faith settlement that is acceptable to Owner, Owner may enter into a settlement of the action, as it relates to Owner, and City shall thereafter defend such action (including appeals) at its own cost and be solely responsible for any judgment rendered in connection with such action. This Section applies exclusively to settlements pertaining to monetary damages or damages which are remedial by the payment of monetary compensation. Owner and City expressly agree that this Section does not apply to any settlement that requires an exercise of City’s police powers, limits City’s exercise of its police powers, or affects the conduct of City’s municipal operations.
• Survival. The provisions of this Section inclusive, shall survive the termination or expiration of the Agreement.

18. California Environmental Quality Act
Owner shall pay all fees and reimburse City for any and all costs incurred by City related to project review under the California Environmental Quality Act (CEQA), Public Resources Code, §§21000-21189.3, and the Guidelines for California Environmental Quality Act, California Code of Regulations, Title 14, §§15000-15387. If reasonably requested by City, Owner shall conduct and pay for any required CEQA reviews and analyses. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 – Existing Facilities. This exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section15301.

19. Rules, Regulations, and Official Policies
Except as otherwise provided in this Agreement, the rules, regulations, and official policies of City governing permitted uses of the land, governing density, and governing the design, improvements, and construction standards and specifications applicable to the development of the Project subject of this Agreement, shall be those rules, regulations, and official policies of City in force at the time of the execution of this Agreement. This Agreement does not prevent City, in subsequent actions applicable to the property, from applying new rules, regulations, and policies which do not conflict with those rules, regulations, and policies applicable to the property as set forth herein, nor does this Agreement prevent City from denying or conditionally approving any subsequent development project application based on such existing or new rules, regulations, or policies.

20. Commercial Cannabis Permit Conditions of Approval
22 Owner shall comply with all conditions of approval of the City-issued Commercial Cannabis Permit.

21. Periodic Reviews
This Agreement shall be subject to annual review. Owner shall demonstrate good faith compliance with the terms of this Agreement. If, as a result of such periodic review, City finds and determines, based on substantial evidence, that Owner, or successor in interest thereto, has not complied in good faith with the terms or conditions of this Agreement, City may terminate or modify this Agreement (except no modification shall increase Owner’s liability nor reduce Owner’s rights), provided that City shall first provide Owner notice of its intent to terminate, with a detailed explanation as to why, and provide Owner the reasonable right to cure the same.
• Periodic Review. City Council shall review this Agreement annually, on or before each anniversary of the Effective Date, in order to ascertain Owner’s good faith compliance with this Agreement. During the periodic review Owner shall be required to demonstrate good faith compliance with the terms of the Agreement, through submitting an annual monitoring report, records, or equivalent written materials to the Community Development Department. The Department will schedule a hearing on the periodic review of the Development Agreement on or following the anniversary of the Effective Date, but Owner has no obligation to compel such hearing, and no implication will be made to Owner’s detriment if a hearing is not in fact held. Owner shall document any request for an extension of the term due to delays beyond the control of Owner (see Section 25, “Force Majeure”).
• Conditional Use Permit. For all intents and purposes, the Commercial Cannabis Permit to be issued under this Agreement shall be treated as if it were a Conditional Use Permit issued to Owner for the establishment and operation of its business. The operation of the business at all times shall be required to comply with the terms of this Agreement.
• Special Review. City Council may order a special review of compliance with this Agreement at any time. The Community Development Director or his or her designee shall conduct such special review. During a special review, Owner shall be required to demonstrate good faith compliance with the terms of the Agreement. The burden of proof on this issue shall be on Owner. • Review Hearing. At the time and place set for the review hearing, Owner shall be given an opportunity to be heard. If City Council finds, based upon substantial evidence, that Owner has not complied in good faith with the terms or conditions of this Agreement, City Council may terminate this Agreement notwithstanding any other provision of this Agreement to the contrary, or modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of City. The decision of City Council shall be final, subject 23 only to judicial review pursuant to Code of Civil Procedure Section 1094.5. • Certificate of Agreement Compliance. If, after a periodic or special review, Owner is found to be in compliance with this Agreement, and if Owner requests it, City shall issue a Certificate of Agreement Compliance (“Certificate”) to Owner stating that after the most recent periodic or special review, and based upon the information known or made known to the Planning Director and City Council, that (i) this Agreement remains in effect and (ii) Owner is not in default.

City shall not be bound by a Certificate if a default existed at the time of the periodic or special review, but was concealed from or otherwise not known to the Planning Director and City Council, regardless of whether the Certificate is relied upon by assignees or other transferees or Owner.
• Failure to Conduct Review. City’s failure to conduct a periodic review of this Agreement shall not constitute a breach of thisAgreement.

22. Assignment
Assignment by Owner. Owner shall not transfer, delegate, sublet or assign its interest, rights, duties, and obligations under this Agreement, unless and except for as specifically authorized in this Section. Any assignment, delegation, or subletting inconsistent with the terms and conditions of this Agreement shall be null and void.

Limited Assignment Authorization. During the term of this Agreement or the legal extension of this Agreement as authorized in Section 2 above, and solely in the event of Darin Garrett’s death, or his complete and permanent physical or mental incapacity, this Agreement and its interests, rights, duties and obligations shall be solely assignable to Jacob Forrester Garrett, provided that Jacob Forrester Garrett holds an authorized position with Cannabis Express, Inc., and is eligible under, and has complied with (and continues to comply with) all applicable laws, regulations and license transfer requirements related to the operation of the business.

23. Operating Commercial Cannabis Facility
Any party to this Agreement, shall not operate a commercial cannabis facility authorized under the municipal code unless it is the holder of a valid applicable State Cannabis License and a Commercial Cannabis Permit issued by City in accordance with the procedures and requirements of Chapter 15, Article VII of the Porterville Municipal Code.

24. Notice
Any notice or communication required hereunder between City and Owner 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. If given by registered or certified mail, 24 such notice or communication shall be deemed to have been given and received on the first to occur of (i) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, or (ii) 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 their addresses set forth below:

If to City: City of Porterville
291 North Main St.

Porterville, CA 93257
Attention: City Manager
and City Attorney, Porterville
McCormick, Kabot & Lew
4010 S. Demaree Street
Visalia, CA 93277
If to Owner: Cannabis Express, Inc.
c/o Darin A. Garrett, CEO
200 Main Street
Porterville, CA 93257

25. Miscellaneous Provisions
• Amendment or Cancellation. This Agreement may be amended, or canceled in whole or in part, only by the written mutual consent of the parties to this Agreement or their successors in interest.
• Waiver. Waiver by City of any one or more of the terms or conditions of this Agreement shall not be construed as waiver of any other term or condition under this Agreement.
• Enforcement/Reserved Powers. Unless amended or canceled pursuant hereto, this Agreement shall be enforceable by any party hereto, or successor in interest thereto, notwithstanding any subsequent change in any applicable general or specific plan, zoning, subdivision or building regulation, or municipal code amendment adopted by City that conflicts with the terms of this Agreement.

However, this Agreement is subject to the City's "Reserved Powers." For 25 purposes of this Agreement, "Reserved Powers" means the rights and authority excepted from this Agreement's restrictions on the City's police powers and which are instead reserved to the City. The Reserved Powers include the powers to enact regulations or take future discretionary actions after the Effective Date of this Agreement that: (1) are necessary to protect the public health and safety, and are generally applicable on a City-wide basis (except in the event of natural disasters as found by the City Council such as floods, earthquakes and similar acts of God); (2) are amendments to California Marijuana Laws or California Uniform Codes, as adopted by the City of Porterville, and/or the Porterville Municipal Code, as applicable, regarding the construction, engineering and design standards for private and public improvements to be constructed on the Site; (3) are necessary to comply with state or federal laws and regulations; or (4) involve sign and parking ordinances and guidelines, changes to the City’s zoning laws, Specific Plan or the City's General Plan, whether adopted previous or subsequent to the Effective Date of this Agreement).

If any City ordinance, rule or regulation or addition to the Porterville Municipal Code is enacted or imposed by a citizen-sponsored initiative or referendum after the Effective Date that would conflict with this Agreement or an associated Commercial Cannabis Permit, business license or other authorizations and City approvals, or reduce development rights or assurances provided to the Owner in this Agreement, then such changes, additions or deletions to the Porterville Municipal Code shall not be applied to the Site or Project; provided, however, the parties acknowledge that the City's approval of this Agreement is a legislative action subject to referendum. The parties shall cooperate with each other and 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 and to the fullest extent permitted by state or federal law.

Notwithstanding anything to the contrary in this Agreement, site improvements contemplated by this Agreement shall be completed pursuant to the City’s development standards and design guidelines. • Joint and Several Liability. Cannabis Express Inc. shall be jointly and severally liable for any amount due under this Agreement, and any breach of this Agreement of failure to pay by one Party shall also constitute a breach of this Agreement by the other Party.
• Severability. If any part of this Agreement is found to conflict with applicable state laws or regulations, such part shall be inoperative, null, and void insofar as it conflicts with said laws or regulations, or modified or suspended as may be necessary to comply with such state laws or regulations, but the remainder of this Agreement shall continue to be in full force and effect. • Counterparts. This Agreement may be executed in one or more 26 counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual, facsimile, or electronic signature.
• Jurisdiction. The law governing this Agreement shall be that of the State of California. The parties agree that this Agreement is entered into and to be performed in Tulare County, California.
• Disclaimer. Despite California’s commercial cannabis laws and the terms and conditions of this Agreement, or any Commercial Cannabis Permit issued pertaining to Owner or the property specified herein, California commercial cannabis possessors or business operators may still be subject to arrest by state or federal officers and prosecuted under state or federal law. The Federal Controlled Substances Act, 21 USC § 801, prohibits the manufacture, distribution, and possession of cannabis without any exemptions for medical use. • Force Majeure. If delays are caused by unforeseen events beyond the control of Owner, such delays will entitle Owner to an extension of time as provided in this section. Such unforeseen events (“Force Majeure”) shall mean war, insurrection, acts of God, local, state or national emergencies, strikes and other labor difficulties beyond the party’s control, or any default by City hereunder, which Force Majeure event substantially interferes with the development, construction or operation of the Project.
• 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 Site, 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 Site, and all rights and interests of such person in the Site shall be subject to the terms, requirements, and provisions of this Agreement. • Binding Effect of Agreement. The Parties agree that the Recitals above are true and correct and intend to be bound by same. Except as otherwise provided, the burdens of this Agreement are binding upon, and the benefits of this Agreement inure to, all authorized successors-in-interest of the Parties and constitute covenants which run with the Site. In order to provide constructive notice thereof, the City Clerk will record this Agreement with the Tulare County Recorder within the period required by Government Code Section 65868.5. • Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this 27 Agreement. The only relationship between the City and the Owner is that of a government entity regulating the development of private property and the owner of such property.
• Changes to Project. The parties acknowledge that changes to the Project or Development Plans and related approvals may be appropriate and mutually desirable to carry out the intent and purpose of this Agreement. This Agreement shall not prevent the City from applying, with the consent or at the request of the Owner, Subsequent Land Use Regulations or Subsequent Development Approvals that do not directly conflict with the Project, Site or Development Plan authorized under this Agreement. The granting of one such change or request shall not obligate the City to grant other similar changes or requests. As used herein, “Subsequent Development Approvals” include, without limitation, all excavation, grading, building, construction, demolition, encroachment or street improvement permits, occupancy certificates, utility connection authorizations, or other non-discretionary permits or approvals necessary, convenient or appropriate for the Project. As used herein, “Subsequent Land Use Regulations” means ordinances, resolutions and codes adopted or approved by the City after the Effective Date of this Agreement governing the development and use of the land, including general plan amendments, zone changes, variances or conditional use permits affecting the permitted use of the land including density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions of reservation or Dedication of land for public purposes, and the design, improvement and construction and initial occupancy standards and specifications applicable to the Development of theProperty. • Conflicting Federal or State Rules. In the event that any conflicting federal or state laws or regulations, enacted after the Effective Date, prevent or preclude compliance with one or more provisions of this Agreement or require changes in plans, maps or permits approved by the City, this Agreement shall remain in full force and effect as to those provisions not affected; and (i) Notice of Conflict. Either party, upon learning of any such matter, will provide the other party with written notice thereof and provide a copy of any such law, regulation or policy together with a statement of how any such matter conflicts with the provisions of this Agreement; and
(ii) Modification Conferences. The parties shall, within thirty (30) days of the notice referenced to in the preceding subsection, meet and confer in good faith and attempt to modify this Agreement to bring it into compliance with any such federal or state law or regulation.
(iii) City Council Hearings. In the event the City believes that an amendment to this Agreement is necessary due to the effect of any federal or state law or regulation, the proposed amendment shall be scheduled for hearing before the City Council. The City Council shall determine the exact 28 nature of the amendment necessitated by such federal or state law or regulation. Owner shall have the right to offer oral and written testimony at the hearing. Any modification ordered by the City Council pursuant to such hearing is subject to judicial review in accordance with California law. (iv) City Cooperation. The City shall cooperate with Owner in securing any City permits, licenses or other authorizations that may be required as a result of any amendment resulting from actions initiated by the City. As required by this Agreement, Owner shall be responsible to pay all applicable fees in connection with securing of such permits, licenses or other authorizations.

Effective Date. “Effective Date” means the date on which all of the following are true: (i) thirty (30) days have elapsed since the second reading of the Ordinance adopting and approving this Development Agreement and (ii) all Exhibits to this Agreement are finalized, executed and notarized by all affected parties (if applicable) and attached hereto; provided, however, that if these conditions have not been fully satisfied by the Owner the Effective Date may not thereafter occur and this Agreement may not thereafter becomeeffective.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

CITY OF PORTERVILLE OWNER
CANNABIS EXPRESS, Inc.

Martha A. Flores Name: Darin A. Garrett
Mayor Title: Chief Executive Officer
APPROVED AS TO FORM:

Julia Lew
City Attorney
APPROVED AS TO FORM:
______________________________
_ Attorney for Owner
29 APPROVED AS TO FORM:
_______________________________
Attorney for Property Owner

CITY OF PORTERVILLE INDEMNIFICATION AGREEMENT

CANNABIS BUSINESS DEVELOPMENT AGREEMENT

AND OPERATING PERMIT
Pursuant to Ordinance Nos. 1853 and 1854, and including Porterville Municipal Code Section 15-87(T), to the fullest extent permitted by local, state, and/or federal law, the Owner(s) as specified in the Development Agreement between the City of Porterville and Owner(s) hereby agrees to hold harmless, indemnify and defend the City of Porterville, its officers, employees, agents, volunteers, and attorneys (hereinafter “City Indemnittees”):

1. From any claims, actions, proceedings, liabilities, or losses (hereinafter collectively referred to as “Claims”) brought against the City Indemnittees:
a. To attack, set aside, void or annul any action or decision by City Staff, City Council or any other City Indemnitee related to the Project or Property. b. To attack, set aside, void or annual any action taken to provide related environmental clearance under the California Environmental Quality Act (CEQA) by City Indemnitees.

The indemnification includes but is not limited to damages, fees, and/or costs awarded against the City, if any, and costs of suit, reasonable attorney’s fees, and other costs, liabilities, expenses incurred in connections with such claims or proceedings whether incurred by the Owner(s), the City, and/or the parties initiating or bringing such Claim or proceeding.

2. From any Claims and liabilities related to the Commercial Cannabis Permit, the Permittee’s commercial cannabis activities, any action taken by the Permittee, and/or arising out of the Owner’s (or Owners’) obligations under the Development Agreement executed between the City and Owner(s).

To the fullest extent permitted by law, Owner(s) agrees to hold harmless, indemnify, and defend the City Indemnitees from and against ANY and ALL Claims as set forth in Sections 1 and 2 above, regardless of any fault of City Indemnitees. If, due to the particular Claim, complete indemnification is not permitted by law, Owner(s) agree to hold harmless, indemnify and defend the City Indemnitees from and against all Claims, EXCEPT for such loss or damage arising from the sole negligence or willful misconduct of the City.

In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from the conditions are set forth above, Owner(s) shall provide a defense to the City Indemnitees, or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal counsels’ fees, incurred in defense of such Claims.

The indemnification and any defense obligations to the City, as set forth herein, shall continue and extend beyond the term of the Agreement and/or Permit, and shall remain in full force and effect through all stages of litigation including appeals of any lower court judgments rendered in the proceeding.

OWNER(S)
_______ _______________________________
Date Owner Signature
_______ _______________________________
Date Owner Signature
________
____________________________
Print Name
____________________________
Print Name
Approved as to form:
____________________________
Owner’s Attorney

CITY OF PORTERVILLE
__________________________
Martha A. Flores, Mayor Date
Item No. 21.

CITY COUNCIL AGENDA – JUNE 6, 2023
SUBJECT: Consideration of Annexation 489 - East River Avenue and Plano Street SOURCE: Community Development
BACKGROUND: On October 20, 2020, the Project Review Committee reviewed PRC 2020- 039, a request for the annexation of approximately 0.62± acres in the general area of the southeast corner of River Avenue and Plano Street. No new development, Zone Change or General Plan Amendment is being proposed or requested.

COMMENT: The proposed annexation area contains three parcels (APNs 261-015-013, 261-015-015, 261-015-016) near the southeast corner of E. River Avenue and Plano Street, in which the applicant is requesting an annexation into the City in order to connect to water and City services. The subject area is developed with a commercial use and the water main needed to serve the parcel is pre-existing.

ANALYSIS: Resolution No. 19-2016, adopted by the City Council on April 19, 2016, established the procedures for properties not located within the city limits of the City of Porterville to request to connect to the City's water utility.

The adopted policy and procedures include the procedures for extraterritorial service agreements and annexation as mechanisms to provide City water to properties outside of city limits. The parcels being considered for annexation are adjacent to the city limit line at Plano Street and River Avenue, have a pre-zoning and General Plan Designation of General and Service Commercial (CG), with the most recent use being a previously established commercial use that would be permitted in the CG zone district.

An extraterritorial services agreement is not applicable in this situation as the subject property doesn’t meet the conditions of being a previously developed single family residential parcel under 24,999 square feet or a school developed by a State-funded school district. Additionally, City Council Resolution No. 19-2016 precludes commercial properties outside the city limits to request extraterritorial services; instead, such properties must request annexation in order for services to be provided. As such, applicants cannot request for extraterritorial service and only course of action is to request annexation into the corporate limits of the city.

Annexation of the proposed area follows the guiding policies of the 2030 Item No. 21.

General Plan Land Use Element. Specifically, LU-G-1 “promote a sustainable, balanced land use pattern that responds to existing needs and future needs of the City”. The annexation also following guiding policy LU-G-14 “Ensure availability of land and buildings to accommodate new industries and the expansion of existing businesses while accounting for market factors.”

ENVIRONMENTAL
REVIEW:

The project is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15319, Annexation of Existing Facilities and Lots for Exempt Facilities.

RECOMMENDATION: That the City Council:
1) Find that the proposed project is exempt from CEQA under CEQA Guidelines Section 15319; and
2) Adopt the draft Resolution requesting that Tulare LAFCO initiate proceedings for annexation.

ATTACHMENTS: 1. Draft Resolution

2. Locator Map

3. Zoning Map

4. Annexation Map
Appropriated/Funded:

Review By:

Department Director:

Jason Ridenour, Assistant City Manager
Final Approver: John Lollis, City Manager
RESOLUTION NO. _-2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTERVILLE

REQUESTING THAT THE LOCAL AGENCY FORMATION COMMISSION TAKES PROCEEDINGS FOR ANNEXATION 489
WHEREAS, the City of Porterville desires to initiate proceedings pursuant to the CorteseKnox-Hertzberg Local Government Reorganization Act of 2000, Division 3, commencing with Section 56000 of the California Government Code, for Annexation 489; and WHEREAS, the territory proposed to be annexed to the city totals approximately ±35 acres, is substantially developed, surrounded, and is inhabited, and a description of the external boundary of the territory is set forth in Exhibit A attached hereto and by this reference incorporated herein; and
WHEREAS: the Site is currently within the unincorporated area of Tulare County, abutting the city limits of the City of Porterville, and within the City’s sphere of influence; and WHEREAS: on May 27, 2023, a notice was published in The Porterville Recorder setting the date, time, and place of a public hearing for January 17, 2023 and similar notices were sent to owners of property within 300 feet of the Site and posted at City Hall and the City’s website announcing the same; and
WHEREAS: at a regular meeting on June 6, 2023, the Porterville City Council did conduct a public hearing to consider the Project; and
WHEREAS, this proposal is made pursuant to Sections 56654 and 56375.3 of the California Government Code, inasmuch as

1. the subject territory does not exceed 150 acres in area

2. the territory is substantially developed or developing

3. the territory is not prime agricultural land as defined by Section 56064

4. the territory will benefit from the change of organization and properties within the territory will receive benefits in the form of utilities and services from the City of Porterville; and
WHEREAS, the reasons for this proposal are as follows:

1. To efficiently provide government services in a manner consistent with the City’s Annexation and Municipal Services Objectives, Policies, and Procedures (Resolutions 74-2014, 75-2014, and 19-2016). In light of the City’s and LAFCo’s policies, any property within a qualified island is required to annex prior to provision of water.

2. To ensure the provision of services and facilities needed to accommodate planned population densities in the project area. By annexing previously developed county islands, the City of Porterville will have a more proactive role in monitoring changes to urbanized land use in these areas and will be able to anticipate and coordinate development as areas experience infill development or modification to land uses.

WHEREAS, on 05/03/2023 the Environmental Coordinator made a determination that under CEQA
WHEREAS, the conditions of the proposed annexation are limited to compliance with the Porterville Municipal Code and Porterville General Plan.

NOW, THEREFORE, BE IT RESOLVED, this Resolution Application is hereby adopted an approved by the City Council of the City of Porterville. The Local Agency Formation Commission of Tulare County is hereby requested to take proceedings for the annexation as illustrated in Exhibit A, according to the terms and conditions stated above, and in the manner provided for by the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, and the detachment of the same area from County Service Area #1.

PASSED, APPROVED, AND ADOPTED this 6th day of June, 2023.

By: _______________________
Martha A. Flores, Mayor
ATTEST:

John D. Lollis, City Clerk
By: _________________________________
Patrice Hildreth, Chief Deputy City Clerk

CARRILLO
PL

SPRINGVILLE
CT

MIRANDA ST

TULE CT
RIO
VISTA
AVE

HOWARD ST

PRESIDIO
AVE

PARK PL

CARMELLA ST

LARSON ST

MOUNTAIN

VIEW AVE

ESTHER ST

CORNELL ST

CHASE AVE

LOCUST AVE

SUCCESS DR

VANDALIA AVE

RIVER AVE

CORONA DR

PARK ST

POPLAR AVE
|ÿ190

ORANGE AVE

DATE AVE

PLANO ST
Locator Map
PRC 2020-039/Closed Session
ANX of 482 S Plano
Frmr. Gray's Air
Conditioning
Date Printed: 7/2/2021 by the Community Development Department 1 in = 500 feet
City Limits
Project Location
AC (Agricultural/Conservation)
DRM-2 (Medium
Density
Residential)
REC (Commercial
Recreation)
RM-2 (Medium
Density
Residential)
RR (Rural
Residential)
RS-2 (Low
Density
Residential)
CG (General
and Service
Commercial)
CR (Retail
Centers)
CN (Neighborhood
Commercial)
RS-1 (Very
Low Density
Residential)
WALLA
CE
S
T
C
O
R
NELL
S
T

SPRINGVILLE CT
ALAMO

CT TULE CT

DATEAVE

RIVER AVE
CA
M
ELLIA
S
T
LA
R
S
ON S
T

RIO VISTAAVE

PRESIDIO AVE
PA
R
K
S
T

RIVER AVE
PLA
N
O
S
T
ANX of 482 S Plano
Frmr. Gray's Air
Conditioning
ZONING
PRC 2020-039
Date Printed: 011/3/2020 by the Community Development Department ±
Legend
Vicinity
Parcels
1 in = 400 ft
City Zoning
C
A
S
A
S
DEL
RIO
ALAMO

CT TULE CT

DATEAVE

RIVER AVE
R
OI BO
N
TI O
S
T
CA
M
ELLIA
S
T
LA
R
S
ON S
T

RIO VISTAAVE
PA
R
K
S
T

PRESIDIO AVE

DATEAVE

RIVER AVE
PLA
N
O
S
T
M-1
C-2
R-A-M
AE-20 C-3-SR
County Zoning

Item No. 22.

CITY COUNCIL AGENDA – JUNE 6, 2023
SUBJECT: Bid Results - Villa Street Reconstruction Project SOURCE: Engineering and Project Management
COMMENT: On May 2, 2023, staff received five bids for the Villa Street Reconstruction Project between Olive Avenue and Henderson Avenue (excluding the Porter Slough Bridge crossing). The proposed project will consist of the removal and replacement of the existing asphalt and base and the installation of access compliant curb ramps. The existing water pipes, storm drain pipes, and sanitary pipes are to be removed and replaced, and purple pipe is to be installed along the stretch of road in order to prepare for the future use of reclaimed water throughout the city. This project also includes the installation of conduit for a fiber optic line, and the installation of video detection at the intersections of Villa Street and Olive Avenue, Villa Street and Putnam Avenue, and Villa Street and Morton Avenue.

The bids are as follows:

Contractor Bid Amount
Dawson-Mauldin, LLC
Selma, CA
$10,087,972.40*
Teichert Construction
Roseville, CA
$11,220,156
Todd Companies
Visalia, CA
$12,796,269**
Granite Construction Company
Fresno, CA
$13,240,929
American Paving Co
Fresno, CA
$14,089,550.80
*Bid total discrepancy; contractor agreed to honor line item totals. **Bid total discrepancy The Engineer's estimate of probable cost for construction is $7,815,108.28. The lowest responsive bid is 29.08% above the Engineer's estimate. An additional $1,008,797 is necessary for construction contingency (10%). It is anticipated that $1,008,797 is required for construction management, quality control and inspection services (10%) for a total estimated project cost of $12,105,566.40.

It is City Council's policy to reject all bids when the bid exceeds ten percent (10%) of the Engineer's Estimate. Although the possibility exists that the City will receive favorable bids if re-advertised, there are no guarantees that the City will receive less costly bids, and will likely necessitate a change in scope of the design of the project and/or an increase in the budget appropriation. The current Item No. 22.
construction market, and the large number of repair projects in this area and throughout the State due to recent flooding, is leading to increased construction costs with equipment needs exceeding the inventory in the State. With all five bids received coming in significantly higher than the Engineer's Estimate, staff believes this is an indicator of what could truly be expected should Council elect to re-advertise the project. It is also likely that the heavy equipment needed to complete this project may not be available if rebid.

Funding for this project includes up to $4,200,045.94 in Measure I funds, Road Maintenance Rehabilitation Account (SB1)/Special Gas Tax Funds in the amount of $1,300,000, Water Replacement Funds in the amount of $3,534,504, and $1,000,000 in Sewer Revolving Funds. An additional appropriation of $2,071,016.46 of Measure R Local funds is necessary to fully fund the project.

RECOMMENDATION: That the City Council:

1. Reject all bids, and direct the Engineering and Project Management Director to re-advertise the project;
OR

2. Award the Villa Street Reconstruction Project to DawsonMauldin, LLC in the amount of $10,087,972.40;

3. Authorize progress payments up to ninety-five percent (95%) of the contract amount;

4. Authorize a ten percent (10%) contingency to cover unforeseen costs;

5. Authorize an additional ten percent (10%) for construction management, construction surveying, quality control and inspection services; and

6. Authorize an appropriation of $2,071,016.46 in Measure R Local Funds to fully fund the project.

ATTACHMENTS: 1. Locator Map
Appropriated/Funded:

Review By:

Department Director:

Javier Sanchez, Engineering & Project Management Director Final Approver: John Lollis, City Manager

PORTER SLOUGH

PORTER SLOUGH
VINE AVE.HOWLAND ST.

DEVON AVE. KESSING ST. G ST. H STREET KESSING ST.

WILLOW AVE.

CHERRY AVE.

PUTNAM AVE.

THURMAN AVE. CLEVELAND AVE.

HARRISON AVE. E STREET G STREET F STREETLINDLEY DR. OHIO STREET CLEVELAND AVE.

THURMAN AVE.

GARDEN
PLACE OLIVE TERRACECOTTAGE AVE. SINARLE PL. GARDEN ST.

OAK AVE. CARMELITA AVE.

PUTNAM AVE.

CLEVELAND AVE. CONLEY ST. PEARSON AVE.

TOMAH AVE.

SUNNYSIDE AVE. E STREET
RUMO RANCHO AVE. KESSING PLACE PALM PLACE EL GRANITO AVE.

FAIRHAVEN LN. EL GRANITO AVE. HAWAII AVE. LIHU AVE. PALM AVE.

GREEN ACRES DR.

ALICE ST. CARMELITA WAY ARLENE ST. CHESS TERRACE MEMORY LN.

FAIRHAVEN AVE.

PHILLIPS CIRCLE JOHNSON CIRCLE COTTAGE ST. VILLAGE GREEN ST.

OAKMONT AVE.

DEXTER AVE.

BELLEVIEW AVE.

KANAI AVE.

GRAND AVE. VILLA ST.

BELLEVIEW AVE.

KANAI AVE. WISCONSIN ST.

McCOMB AVE. JAYE ST. JAYE ST. INDIANA ST. INDIA
OLIVE AVE. OLIVE AVE.

MORTON AVE.

HENDERSON AVE. G STREET
AIN ST.

GRAND AVE.

CITY OF PORTERVILLE

ENGINEERING DIVISION
291 NORTH MAIN STREET
PORTERVILLE, CA. 93257
(559) 782-7462
N
O R T
H

PROJECT
LIMITS

PROJECT
LIMITS
Item No. 23.

CITY COUNCIL AGENDA – JUNE 6, 2023
SUBJECT: Consider Approval of Payment for Parts and Rental of Specialized Equipment to Repair the Flag Pole in the Grocery Outlet/Dollar Tree Center Shopping Mall SOURCE: City Manager's Office
COMMENT:

During Other Matters at its meeting on May 16, 2023, the City Council approved Council Member Meister's request to consider payment for the parts and rental of specialized equipment to repair the flag pole in the Grocery Outlet/Dollar Tree shopping mall as a Scheduled Matter at its meeting on June 6, 2023.

The annual recognition of national Flag Day on June 14th has a rich and storied tradition in the Porterville community, marked by a patriotic ceremony with the lowering of the previous year's American flag and the raising of a new flag on the large flag pole near the corner of Olive Avenue and D Street. The Smith family began the tradition of the lowering and the raising of the flag in 1982 when Smith's Market was the anchor of the retail center, and the tradition has carried on into its 42nd year at what is today the Grocery Outlet/Dollar Tree Center shopping mall, which is also home of the City's temporary library facility.

During the Flag Day Ceremony on June 14, 2021, the rigging for the flag pole broke, and the flag could not be lowered. City crews and equipment were able to remove the flag later that week, and a local contractor (Elevated Energy and Construction) was called to repair the flag pole. The local contractor donated the labor to repair the pole, however, costs were incurred for the parts and the rental of specialized equipment to repair the pole given its significant height.

The repair of the flag pole was made in time for the 2022 Flag Day Ceremony, however, the Flag Day Committee has apparently not yet paid the local contractor for the outstanding invoice from 2022.

As the Council will recall, at its meeting on May 2, 2023, a Flag Day Committee representative spoke in Oral Communications, seeking the City's assistance in ensuring the annual Flag Day Ceremony continues.

RECOMMENDATION: That the City Council:

1. Consider approval for payment of the invoice from Elevated Energy and Construction for $2,562.75 for the parts and rental of specialized equipment to repair the flag pole in the Grocery Outlet/Dollar Tree Center shopping mall; and

2. If approved, that payment be made to Elevated Energy and Item No. 23.

Construction from the City's "Special Purposes" Reserve Fund by adoption of the draft Resolution.

ATTACHMENTS: 1. Elevated Energy and Construction Invoice

2. Draft Resolution

3. Municipal Code Chapter 2, Article VI, 2-31: Reserve and Designated Funds
Appropriated/Funded:

Review By:

Department Director:

John Lollis, City Manager
Final Approver: John Lollis, City Manager

RESOLUTION NO. ___-2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTERVILLE

AUTHORIZING THE APPROPRIATION OF FUNDS FROM THE
CITY COUNCIL’S SPECIAL PURPOSES RESERVE FUND

TO PAY FOR THE PARTS AND SPECIALIZED EQUIPMENT RENTAL

TO REPAIR THE FLAG DAY CEREMONY POLE

WHEREAS: The City of Porterville Municipal Code Section 2-31.6, established the Special Purposes Reserve Fund for the purpose of providing funds to support onetime city special events, projects, and/or purposes that support the community; and WHEREAS: The annual Flag Day Ceremony has been held in the Porterville community on June 14th for the past forty-one (41) years in recognition of national Flag Day; and
WHEREAS: The Flag Day Committee does not have the fiscal resources to pay for the parts and rental of specialized equipment that was necessary to repair the traditional flag pole used to commemorate the community’s Flag Day.

NOW, THEREFORE, BE IT RESOLVED:

1. That the City Council of the City of Porterville makes a finding that the Flag Day Ceremony in annual recognition of national Flag Day is a benefit to the community, and is within the intent and purpose of the Special Purposes Reserve Fund; and

2. That the City Council of the City of Porterville does hereby approve and authorize the expenditure of $2,562.75 to Elevated Energy and Construction from the Special Purposes Reserve Fund in support of the Flag Day Ceremony and Flag Day Committee.

PASSED, APPROVED AND ADOPTED this 6th day of June, 2023. ____________________________________
Martha A. Flores, Mayor
ATTEST:

John D. Lollis, City Clerk
By: __________________________________
Patrice Hildreth, Chief Deputy City Clerk
2-31: RESERVE AND DESIGNATED FUNDS:
2-31.1: "BUDGET STABILIZATION" RESERVE FUND:

It shall be the policy of the city of Porterville to establish reserve funds that shall be used for the purpose to mitigate, should it occur, onetime annual budget revenue shortfalls (actual revenues less than projected revenues) due to changes in the economic environment and/or actions by the county/state/federal government that have a material effect on the city's revenues; and/or expenditures that will result in future efficiencies and/or budgetary savings. The "budget stabilization" reserve fund shall be maintained at a minimum of fifteen percent (15%) of general fund annual budgeted operating expenditures (excluding onetime expenditures), and may only be appropriated by formal city council action with not less than four-fifths ( 4/5) of those voting in agreement. If
the city council takes action due to making a finding(s) of material effects as stated above, it shall include findings of material effects as further specified in section 2-31.7 of this article. Should the fund's balance fall below ten percent (10%) of annual budgeted operating expenditures, then a plan will be established to replenish the fund to the required level within three (3) fiscal years. An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to fifteen percent (15%) of the budgeted general fund expenditures for fiscal 2011-2012. (Ord. 1787, 4-3-2012) 2-31.2: "CATASTROPHIC/EMERGENCY" RESERVE FUND:

It shall be the policy of the city of Porterville to establish reserve funds that shall be used for the purpose to mitigate costs associated with unforeseen emergencies, including natural disasters or catastrophic events.

Should unforeseen and unavoidable events occur that require the expenditure of city resources beyond those provided for in the annual budget, formal city council action with not less than four-fifths ( 4/5) of those voting in
agreement, is required of a budget amendment confirming the nature of the emergency and authorizing the appropriation of reserve funds. The "catastrophic/emergency" reserve fund shall be maintained at a minimum of ten percent (10%) of general fund annual budgeted operating expenditures (less onetime expenditures). Should the fund's balance fall below ten percent (10%) of annual budgeted operating expenditures, then a plan will be established to replenish the fund to the required level within five (5) fiscal years. An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to ten percent (10%) of the budgeted general fund expenditures for fiscal 2011-2012. (Ord. 1787, 4-3-2012) 2-31.3: "FACILITY DEFERRED MAINTENANCE/EQUIPMENT REPLACEMENT" DESIGNATED FUND:

It shall be the policy of the city of Porterville to establish designated funds that shall be used for the exclusive purpose of providing funds to support onetime city facility deferred maintenance and/or equipment replacement costs (excluding vehicles), such as, but not limited to, HVAC units, roofing, parking lot overlays, painting, plumbing, electrical, and doors/windows. The city council, by means of a resolution, may add, modify, or delete specific deferred maintenance or equipment replacement categories. The "facility deferred maintenance/equipment replacement" designated fund shall have no minimum balance, but shall accumulate funds until appropriated by formal city council action. The fund shall receive an allocation of one-third ( 1/3) of
audited general fund unassigned fund balance (actual revenues more than actual expenditures). An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to one-third (
1/3) of the current unallocated reserve balance as of the date of adoption hereof after the funding of the budget stabilization reserve fund, the catastrophic/emergency reserve fund, and the initial funding of the special purpose reserve fund, have been deducted from the initial unallocated reserve fund balance. (Ord. 1787, 4-3-2012)
2-31.4: "CAPITAL CONSTRUCTION/IMPROVEMENT" DESIGNATED FUND:

It shall be the policy of the city of Porterville to establish designated funds that shall be used for the exclusive purpose of providing funds to support new capital construction and/or improvement projects as identified in the city's ten (10) year capital improvement plan. The "capital construction/improvement" designated fund shall have no minimum balance, but shall accumulate funds until appropriated by formal city council action. The fund shall receive an allocation of one-third (
1/3) of audited general fund unassigned fund balance (actual revenues more than actual expenditures). An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to one-third ( 1/3) of the current unallocated reserve balance
as of the date of adoption hereof after the funding of the budget stabilization reserve fund, the catastrophic/emergency reserve fund, and the initial funding of the special purpose reserve fund, have been deducted from the initial unallocated reserve fund balance. (Ord. 1787, 4-3-2012) 2-31.5: "INFRASTRUCTURE DEFERRED MAINTENANCE/IMPROVEMENT" DESIGNATED FUND:

It shall be the policy of the city of Porterville to establish designated funds that shall be used for the exclusive purpose of providing funds to support onetime city infrastructure deferred maintenance and/or improvement costs, such as, but not limited to, streets/alleys, bridges, sewer, water, storm drain, and curb/gutter/sidewalk.

The city council, by means of a resolution, may add, modify, or delete specific infrastructure deferred maintenance/improvement categories. The "infrastructure deferred maintenance/improvement" designated fund shall have no minimum balance, but shall accumulate funds until appropriated by formal city council action. The fund shall receive an allocation of one- third (
1/3) of audited general fund unassigned fund balance (actual revenues more than actual expenditures). An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to one-third ( 1/3) of the current unallocated
reserve balance as of the date of adoption hereof after the funding of the budget stabilization reserve fund, the catastrophic/emergency reserve fund, and the initial funding of the special purpose reserve fund, have been deducted from the initial unallocated reserve fund balance. (Ord. 1787, 4-3-2012) 2-31.6: "SPECIAL PURPOSES" RESERVE FUND:

It shall be the policy of the city of Porterville to establish reserve funds as a line item of the annual city council budget that shall be used for the purpose of providing funds to support onetime city special events, projects, and/or purposes that benefit the community. The "special purposes" reserve fund shall be maintained at a minimum of one hundred thousand dollars ($100,000.00), and may only be appropriated by formal city council action with four-fifths (
4/5) of those voting in agreement. Should the fund's balance fall below one hundred thousand dollars ($100,000.00) in a fiscal year, then the general fund will replenish the fund to the minimum required level at the beginning of the following fiscal year. An initial balance in the amount of one hundred thousand dollars ($100,000.00) shall be appropriated from the current unallocated reserve as of the date of adoption hereof. (Ord. 1787, 4-3-2012)
2-31.7: "FORMAL CITY COUNCIL ACTION" FOR APPROPRIATIONS:

For the purposes of sections 2-31.1 through 2-31.6 of this article, formal city council action shall require adoption of a resolution. Said resolution shall contain the basis for a finding (or findings) of materiality if required by any provision in this article. Additionally, said resolution shall include finding(s) that the appropriation is within the intent and purpose of the designated and reserve funds including, where appropriate, one or more findings that the purpose of the appropriation is within the defined purpose of the designated and reserve funds whether or not explicitly stated in this article. (Ord. 1787, 4-3-2012) Item No. 24.

CITY COUNCIL AGENDA – JUNE 6, 2023
SUBJECT: Consideration of Proposed Fiscal Year 2023-2024 Budget Process and Setting of Date for Public Hearing
SOURCE: City Manager's Office
COMMENT: Consistent with the City Charter, the City Manager must submit for the City Council’s consideration a proposed Budget for the 2023-2024 Fiscal Year.

Section 51 of the City Charter provides that the City Manager shall provide not later than thirty (30) days before the end of the City’s fiscal year, an estimate of expenditures and revenues of the City Departments for the ensuing year. The City Charter provides that “after duly considering the estimate and making such corrections or modifications thereto as shall seem advisable to it, the Council shall by resolution adopt a general budget and such resolution shall operate as an appropriation of funds to the amounts and for the purposes set forth in the budget so adopted.” All spending authority from the current 2022-2023 Fiscal Year budget expires after June 30, 2023. Therefore, a new budget must be adopted which allows payroll to be paid and routine expenditures to be incurred effective July 1, 2023. The Charter is not specific as to the duration of the adoption, thus accordingly, consistent with past Council discussion, the Council may authorize a budget adoption period less than the full fiscal year.

Given the challenges encountered by staff this past March during the historic flood event that significantly interrupted the budget development process, staff recommended that the Council consider adopting a continuance of the 2022- 2023 fiscal year budget for the first quarter of the 2023-2024 fiscal year (July - September), with the objective of formally adopting a refined 2023-2024 fiscal year budget prior to October 1, 2023. At its meeting on April 4, 2023, the Council acted to continue with the currently approved 2022-2023 fiscal year budget, and defer the adoption of the new 2023-2024 fiscal year budget until October 1, 2023. Staff is planning to present the preliminary 2023-2024 fiscal year budget to the Council at its meeting on September 5, 2023, and schedule a Public Hearing for the meeting of September 19, 2023, to consider adoption by the Council.

At its Special Meeting on May 23, 2023 in review and determination of its Priority Projects for the 2023-2024 Fiscal Year, the Council affirmed its twelve (12) Priority Projects, providing additional direction in several regards:

1. Interim and New Library Facilities: Continue pursuit of grants and other funding opportunities, including Assemblyman Mathis proposed State appropriation of $15 million; Consider Captain Figueroa and Firefighter Jones Memorial Statue at the new Library entrance.

Item No. 24.

2. Street Improvements: Consider signal installation at Olive Avenue and Redwood Street as part of the Olive Avenue Bridge Widening and Gateway Project.

3. Tertiary Treatment: Continue pursuit of grant funding opportunities.

4. Community Recreation Center: Continue pursuit of grants and other funding opportunities.

5. New Animal Shelter Facility: Continue pursuit of grants and other funding opportunities.

6. Serious Accident Review Team (SART) Recommendations: None

7. Sports Complex Completion/Adult Baseball Field: Continue pursuit of grants and other funding opportunities.

8. Henry Street Park: None

9. Skate Park Shade Structure and Lighting: Consider installation of security nodes along Veteans Park Trail.

10. State Routes 65 and 190 Community Welcome Signs: None

11. Westwood Bridge Widening (Tule River): None

12. American Rescue Plan Act (ARPA) Funding: Appropriate estimated $2 million in unallocated ARPA funds to improvements at the Navigation Center and homeless support services.

The Council provided additional direction to consider concrete and lighting improvements to the Zalud Park Trail system, as well as the development of a second City swimming pool complex and/or the installation of splash pads at City parks as designated community cooling centers.

RECOMMENDATION: That the City Council:

1. Consider the proposed Fiscal Year 2023-2024 Budget process, providing direction on any modification; and

2. Schedule a Public Hearing for June 20, 2023.

ATTACHMENTS:

Appropriated/Funded:

Review By:

Department Director:

Item No. 24.

John Lollis, City Manager
Final Approver: John Lollis, City Manager
Item No. 25.

CITY COUNCIL AGENDA – JUNE 6, 2023
SUBJECT: Status and Review of Declaration of Local Flood Emergency SOURCE: City Manager's Office
COMMENT: On March 13, 2023, Mayor Martha A. Flores in conjunction with the Acting City Manager Patrice Hildreth declared the existence of a local emergency within the City of Porterville. Said Declaration was made pursuant to Chapter 9 of the Porterville Municipal Code, and in response to the increasing threat to life and property in the city caused by a series of storm systems striking California and in particular the Porterville area, impacting Success Lake and significantly increasing flows of the Tule River. Pursuant to the California Emergency Services Act (California Government Code 8558 et seq.), emergency declarations must be ratified by the governing body within seven days of being declared. At its Special Meeting on March 17, 2023, the City Council acted to ratify the Declaration of Local Emergency. The Act also requires that the emergency declaration be renewed every sixty (60) days to remain in effect, which at its meeting on May 16, 2023, the Council reviewed and acted to renew the emergency declaration.

On March 10, 2023, due to the volume of water added to Success Lake from significant storm activity, Tulare County Sheriff Mike Bourdreaux issued an Evacuation Warning for both the north and south sides of the Tule River, and the Tulare County Office of Emergency Services (TCOES) established a Temporary Evacuation Point (TEP) and Emergency Shelter in the gymnasium at Porterville College.

On March 15, 2023, due to the water level of Success Lake rising to the point of running over the spillway of the Richard L. Schafer Dam, Sheriff Boudreaux issued a Mandatory Evacuation Order for the residences, businesses and structures between Schafer Dam and Road 284, east of the city of Porterville.

On March 18, 2023, due to water levels dropping on the Tule River, Sheriff Boudreaux reduced the Mandatory Evacuation Order back to an Evacuation Warning.

On March 15, 2023, due to rising flood waters, Sheriff Boudreaux issued a Mandatory Evacuation Order for the area between Olive Avenue (Avenue 152) to Avenue 144 and the Friant-Kern Canal and the Tule River and Westwood Street, west of the city of Porterville. On March 25, 2023, Sheriff Boudreaux reduced the Mandatory Evacuation Order back to an Evacuation Warning.

On March 15, 2023, due to rising water levels of the Tule River, City Public Works Department staff took extraordinary measures to protect the Item No. 25.
neighborhood north of River Springs Drive, avoiding potentially catastrophic flooding of the area.

On March 16, 2023, due to the historic water levels and flows of the Tule River causing erosion to the river banks, Police Chief Jake Castellow issued a Mandatory Evacuation Order for eight residences along Rio Vista Avenue, providing information on the TEP and Emergency Shelter established at Porterville College. City Public Works Department staff took extraordinary measures over the next several days to mitigate and protect the river banks from affecting the residences. On March 24, 2023, Chief Castellow reduced the Mandatory Evacuation Order of the eight residences back to an Evacuation Warning.

On March 19, 2023, due to continued erosion of the banks of the Tule River and the performance of immediate necessary mitigation efforts by Public Works Department personnel, Chief Castellow issued a Mandatory Evacuation Order for both the north and south banks of the Tule River within City limits (not including permanent structures with a designated address), and provided information on the TEP and Emergency Shelter established at Porterville College. The Public Works Department continues to work diligently in shoring the banks of the Tule River.

To accommodate upcoming ceremonies and events in the gymnasium at Porterville College, the TEP and Emergency Shelter at the College closed at noon on April 11, 2023, and thirty (30) individuals were successfully transitioned to the new TEP at the Porterville Army National Guard Armory. A Special Meeting of the Council was scheduled for April 14, 2023, to consider a draft License agreement for the City's temporary use of the State facility. The American Red Cross continued to provide shelter services at the TEP, but transitioned out on May 5, 2023. With the authority granted to the City Attorney and City Manager at its meeting on April 18, 2023, the City and County drafted a Memorandum of Understanding in an effort to continue TEP shelter services until May 5, 2023, while the Mandatory Evacuation Order remained in place along the banks of the Tule River in city limits. On April 14, 2023, the County transmitted a letter to the California Governor's Office of Emergency Services (Cal OES), requesting continued financial support for the Armory TEP, which the County reported that Cal OES did not approve.

Given the lack of continued financial support by Cal OES, the County notified the City that it would discontinue its support of the Armory TEP at noon on May 5, 2023, and American Red Cross would vacate the facility as well, leaving the City alone to determine the function of the Armory TEP after noon on May 5th. The significant threat of local emergency continued to exist with the estimated over three hundred percent (300%) of normal snow pack in the Sierra Nevada mountains and the potential for a warm storm or heat wave this Spring to again inundate the Tule River, described as a "loaded locomotive at the top of the hill." Given the forecasts of potential widespread flooding damage to west Tulare County and significant portions of Kings County later this Spring and early Summer, Red Cross representatives strongly believe they Item No. 25.
will be returning to the Armory TEP and other Tulare County locations (e.g.

Porterville Developmental Center) to assist those displaced from homes due to flooding. Until such time that Cal OES makes the determination that emergency conditions again exist in Tulare County, the Council was left to determine if local emergency conditions existed to continue operating the Armory TEP, which expenditures would not be reimbursable given the lack of approval by Cal OES.

Given the continued mandatory evacuation order along the Tule River in city limits and the legal implications of the Martin v. Boise federal 9th Circuit Court of Appeals decision (2018), and the announced departure of the American Red Cross and County support at noon on May 5, 2023, City staff developed an operational plan for the Armory TEP, cognizant of the lack of federal and State reimbursement of costs. As of April 27, 2023, eighteen (18) individuals were receiving shelter services at the Armory TEP, with most individuals only at the facility in the evening. Given the limited daytime TEP population, and daily meal services provided at the nearby Porterville Welcome Center, staff recommended to limit the Armory TEP hours from 7:00 P.M. to 7:00 A.M. daily, providing temporary staffing of two individuals (including a security guard). Temporary staffing had been quoted at $25 per hour, for a daily expense of $600 (or $18,000 per month). At its meeting on May 2, 2023, the Council authorized the continued operation of the Armory TEP for a 12-hour operational period over the evenings, and also directed that the Armory restrooms and shower facilities be used by the individuals at the TEP, which although not ADA-compliant, are not required for non-reimbursable shelter activities while under a Declaration of Local Emergency. The contract for the on-site mobile shower and portable restroom facilities that are ADA-compliant expired on May 11, 2023, which the rental cost was approximately $18,000 per month. However, the City Attorney recommended maintaining a single ADAportable restroom at the facility. Beginning at noon on May 5, 2023, the City assumed administrative and financial responsibility for the Armory, which has established operational hours of 8:00 P.M. to 8:00 A.M. and averaged up to twenty (20) individuals each evening (please see attached daily census).

On May 4, 2023, the City received an updated draft License agreement for the use of the Armory, proposing a 1-year lease for exclusive use by the City effective May 5, 2023, through May 4, 2024. The draft agreement proposes no fee for the use of the facility, but that the City assume responsibility for the facility's utilities. On Monday, May 8th, the last remaining Army personnel left the facility, with the City now having complete exclusive use of the facility. At its meeting on May 16, 2023, the Council approved the updated draft License agreement for the 1-year exclusive use of the Armory.

On March 31, 2023, Governor Newsom issued Executive Order N-6-23 to support Tulare Lake Basin flood response, which streamlines State preparation, response and recovery actions and supports local flood response efforts and assist in preparing communities for the impacts of snowmelt runoff in the months ahead.

Item No. 25.

On April 3, 2023, President Biden granted a Major Disaster Declaration for the State of California, triggering the release of Federal funds to help individuals and communities recover from Severe Winter Storms, Straight-line Winds, Flooding, Landslides and Mudslides that occurred February 21, 2023, and continuing. Monterey and Tulare counties were designated in the Major Disaster Declaration for both Individual and Public Assistance, as well as Hazard Mitigation.

On May 17, 2023, Governor Newsom issued Executive Order N-7-23 to support Tulare Lake Basin flood response, which extends flood diversion and groundwater recharge flexibilities implemented for the Tulare Lake Basin, including Kern River floodwater to be allowed into the California Aqueduct.

At its meeting on April 4, 2023, the Council approved Resolution No. 15-2023, which authorized the appropriation of funds from the Catastrophic/Emergency Reserve Fund for the costs associated with the response to the local emergency including personnel, equipment, services and other necessary expenditures. At its meeting on April 18, 2023, the Council approved two emergency expenditures that exceeded $5,000 in their acquisition, which included additional Water Rescue Equipment for the Fire Department ($6,417.70) and the 30-day rental of two mobile shower/restroom units ($13,151) for the Armory TEP due to the facility's restrooms and showers not being compliant with the Americans with Disabilities Act (ADA). At its meeting on May 2, 2023, the Council approved two additional emergency expenditures that exceeded $5,000 in their acquisition, which included a trailer-mounted 6" dewatering and sewage pump ($77,396.67), and local trucking services of riprap material ($5,436.00), both for the Public Works Department.

In support of two private personnel providing nightly security at the Armory as it continues to function as a temporary evacuation point and shelter, City staff has secured TopKnotch Security, Inc. as the security services provider.

TopKnotch has provided an agreement for security services for approximately $18,000 per month (2 personnel at $25/hour for 12 hours per day for 30 days per month).

RECOMMENDATION: That the City Council:

1. Receive the report of status and review of the Declaration of Local Emergency and determine the need exists to continue said Declaration; and

2. Approve the agreement with TopKnotch Security, Inc. to provide nightly security at the Porterville Army National Guard Armory for $18,000 per month.

ATTACHMENTS: 1. Declaration of Local Emergency - March 13, 2023

2. Resolution No. 11-2023

3. Rio Vista Avenue Mandatory Evacuation Order - March 16, 2023

4. Tule River Banks Mandatory Evacuation Order - March 19, 2023
Item No. 25.

5. Governor Newsom Executive Order N-6-23

6. Governor Newsom Executive Order N-7-23

7. Federal Disaster Declaration Fact Sheet - April 3, 2023

8. License to Use State Military Property - April 14, 2023

9. City and County Memorandum of Understanding for
Shelter Support

10. County of Tulare CalOES Shelter Support Request Letter - April 14, 2023

11. Armory Temporary Evacuation Point and Shelter - Daily Census

12. License to Use State Military Property - May 16, 2023

13. Resolution No. 15-2023

14. Rescue Source & Rescue 3 Invoice: Water Rescue
Equipment

15. Royal Restrooms Invoice: Mobile Shower-Restroom Units

16. Rain for Rent Pump Invoice

17. Mike Clark Trucking Invoice

18. TopKnotch Security, Inc. Agreement

19. Municipal Code Chapter 9 - Civil Defense and Disaster

20. California Government Code 8558
Appropriated/Funded:

Review By:

Department Director:

John Lollis, City Manager
Final Approver: John Lollis, City Manager

Police Department
350 North "D" Street
Porterville, CA 93257
(559) 782-7400/FAX (559) 784-1070
www.PortervillePolice.com
Porterville Police Department Mission Statement
Jake Castellow
Chief of Police
The members of the Porterville Police Department are committed to the safety and security of the community while providing quality service with excellence, honesty and integrity.

Police Department
350 North "D" Street
Porterville, CA 93257
(559) 782-7400/FAX (559) 784-1070
www.PortervillePolice.com
Porterville Police Department Mission Statement
Jake Castellow
Chief of Police
The members of the Porterville Police Department are committed to the safety and security of the community while providing quality service with excellence, honesty and integrity.

EXECUTIVE DEPARTMENT

STATE OF CALIFORNIA
EXECUTIVE ORDER N-6-23
WHEREAS on March 1, 2023, March 8, 2023, March 12, 2023, March 14, 2023, and March 28, 2023, I proclaimed a State of Emergency to exist in 47 counties, cumulatively, as a result of a series of ongoing winter storms that initially struck California beginning in late February and continue to significantly impact the counties identified in my Proclamations; and WHEREAS the State has experienced over a dozen atmospheric rivers since December 2022, resulting in compounding and cumulative impacts across California, including what are expected to be record amounts of snow in the Sierra Nevada, in particular in the southern Sierra, and current and forecasted precipitation are expected to add to historic snowpack levels already composed of several million acre-feet of snow water content; and WHEREAS reservoirs into which the Sierra snowpack runoff would flow are already impacted by runoff, which is expected to greatly exceed available storage capacity in the reservoirs in and around the Tulare Lake Basin and the San Joaquin River Basin, and much of the ground in the area has reached saturation due to the series of ongoing winter storms; and WHEREAS the Tulare Lake Basin is the terminal point for the Kings, Kaweah, Tule, and Kern Rivers, and several smaller streams, meaning that water from additional expected rains and Sierra snowpack runoff that cannot be stored in reservoirs or absorbed into the ground will flow into the basin; and WHEREAS recent storms have already caused flooding in the Tulare Lake Basin, leading to emergency rescues and evacuation orders in Allensworth, Alpaugh, and other communities in Tulare and Kings Counties, and leading to dozens of levee breaks and local agencies directing strategic cuts to canals and levees to prevent further flooding of communities; and WHEREAS runoff from the snowpack caused by the winter storms could result in flood conditions in the Tulare Lake Basin resembling those last experienced in the historic floods of 1969 and 1983, following historic snowpacks in those years; and
WHEREAS local flood control districts and other local governments generally have flood control responsibility in the Tulare Lake Basin, but state agencies such as the California Department of Forestry and Fire Protection (CAL FIRE), the California Department of Water Resources, and the Governor’s Office of Emergency Services are actively engaged in supporting this local effort, and state agencies will continue to provide technical advice and other resources and support as needed, with a particular priority on protecting the lives and health of local communities; and
WHEREAS stretches of the San Joaquin River have been or are at flood stage this spring, river stages are expected to stay high throughout the spring as snowpack melts, and multiple levee repairs are underway on the lower San Joaquin River; and
WHEREAS the Tulare Lake Basin is hydrologically connected to the San Joaquin River Basin and that connection has the potential to exacerbate the flood risk in the San Joaquin River Basin, and so further emergency response efforts may become necessary in the San Joaquin River Basin as well; and WHEREAS heavy accumulation of snowfall on the roof of Bear Valley Elementary School, located in Alpine County, currently renders instructional space unsafe for use; and
WHEREAS frequent flooding and flood evacuation orders have resulted in school closures and low student attendance in Pajaro Middle School, Hall District Elementary School and Ohlone Elementary, located in Pajaro Valley Unified School District in Santa Cruz County; and
WHEREAS it is critical that displaced students are back in school facilities as quickly as possible to ensure continuity in education; and WHEREAS the State of California and local governments, in collaboration with the Federal government, continue sustained efforts to respond to and mitigate the effects of these storms; and
WHEREAS on March 9, 2023, I requested a Presidential Emergency Declaration related to these late winter storms, which was expeditiously approved by President Joseph R. Biden, Jr.; and
WHEREAS on March 15, 2023, I requested the addition of 9 counties to the existing Presidential Emergency Declaration related to these late winter storms, which was expeditiously approved by the President; and
WHEREAS on March 28, 2023, I also requested the President issue a Major Disaster Declaration related to these late winter storms for counties that met the validated damage threshold; and
WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this order would prevent, hinder, or delay the mitigation of the effects of these ongoing winter storms.

NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:

IT IS HEREBY ORDERED THAT:

1. All provisions contained in the above-referenced Proclamations of a State of Emergency shall remain in full force and effect.

2. To protect health, safety, and the environment, and to reduce the risks of local catastrophic flooding in the Tulare Lake Basin, Chapter 6 (commencing with section 1600) of Division 2 of the Fish and Game Code, and regulations adopted pursuant to that Chapter, are suspended for activities that meet all of the requirements in Paragraph

3. 3. The suspension created by Paragraph 2 shall apply to floodwater diversion, debris removal, and levee repair and breech in the Tulare Lake Basin, on the condition that the actions cease when the flood conditions have abated to the point there is no longer flooding outside of defined streambeds and levees. Additionally, the suspension created by Paragraph 2 shall apply to floodwater diversion only if all of the following additional conditions are met:
a. The diversion of floodwater from the Tulare Lake Basin or rivers or streams flooding the Tulare Lake Basin must occur between March 31, 2023, and August 1, 2023, for flood management purposes.
b. For diversions directly from rivers or streams, a local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice that flows downstream of the point of diversion are at imminent risk of flooding and inundation of land, roads, or structures.
c. For diversion of floodwaters in the Tulare Lake Basin (that is, waters no longer contained within a defined streambed or levee), a local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice that areas from which the floodwaters are diverted are either at imminent risk of flooding or already flooded, with potential or existing inundation of land, roads, or structures. d. Any water diverted is not diverted to and will not be applied to any area that has not been in active irrigated agricultural cultivation within the past three years, including grazing lands, annual grasslands, and natural habitats. This limitation does not apply to facilities already constructed for the purposes of groundwater recharge or managed wetlands.

4. In addition to the mandatory conditions set forth in Paragraph 3, any person conducting planned levee breaches or controlled inundation to prevent further catastrophic flooding pursuant to the suspension created by Paragraph 2 should take care, wherever feasible, to protect above-ground infrastructure and drinking water and wastewater infrastructure such as drinking water well field sites, wastewater discharge ponds, and other water resources that are necessary for the protection of human health and the recovery of impacted communities.

5. For purposes of conducting emergency flood preparation and response activities, for any (a) actions taken by state agencies, (b) actions taken by a local agency where the Secretary of the Natural Resources Agency concurs that local action is required, and (c) permits necessary to carry out actions under (a) and (b), Public Resources Code, Division 13 (commencing with Section 21000) and regulations adopted pursuant to that Division, are suspended to the extent necessary to address flood impacts in the Tulare Lake Basin.

6. To support adequate state staffing for all state agencies and departments with an assigned response and/or recovery role related to flooding in the Tulare Lake Basin, consistent with applicable federal law, work hour limitations for retired annuitants, permanent and intermittent personnel, and state management and senior supervisors are suspended. Furthermore, reinstatement and work hour limitations in Government Code sections 21220, 21224(a), and 7522.56(b), (d), (f), and (g), and the time limitations in Government Code section 19888.1 and California Code of Regulations, title 2, sections 300-303 are suspended. All other restrictions must be adhered to for retired annuitants. The Director of the California Department of Human Resources must be notified of any individual employed in state government pursuant to these suspensions. The suspension of statutes identified in this Paragraph shall also apply to local governments, as applicable, to ensure adequate staffing to appropriately respond to the flooding in the Tulare Lake Basin. Local governmental agencies shall notify the California Public Employees' Retirement System of any individual employed by an agency pursuant to this Paragraph.

7. The limitation for the period of employment for State Personnel Board emergency appointments, as provided in Government Code section 19888.1, is suspended for positions required for emergency response and/or recovery operations related to flooding in the Tulare Lake Basin.

The requirements and period of employment for such appointments will be determined by the Office of Emergency Services but shall not extend beyond the termination date of the State of Emergency.

8. To the extent the Alpine County Office of Education and Alpine County Unified School District are required to use temporary facilities such as the Alpine County Public Library due to extraordinary snowpack on the roof of Bear Valley Elementary School, rendering instructional space unsafe, the requirements of Education Code sections 17280, et seq., 17365, et seq., and Government Code sections 4453 and 14963 are suspended with respect to those temporary facilities. The requirements of the California Building Code (codified in Title 24 of the California Code of Regulations), as adopted and enforced by the local building and fire agencies with jurisdiction over the area, shall apply to these temporary facilities.

9. To the extent the Alpine County Office of Education and Alpine County Unified School District are required to temporarily use buildings, as defined in the California Building Code (California Code of Regulations, Title 24, Part 2, Chapter 2, section 202), such as the Alpine County Public Library due to extraordinary snowpack on the roof of the Bear Valley Elementary School, rendering instructional space unsafe, local planning and zoning regulations shall be suspended to allow immediate occupancy of such buildings for use as public school facilities. In addition, the requirements of the California Building Code, as adopted and enforced by the local building and fire agencies with jurisdiction over the area, shall apply, except that the requirements relating to Change of Use or Occupancy Classification in the California Building Code (California Code of Regulations, Title 24, Part 2, Chapter 1, section 111) shall not trigger immediate code upgrades, and a Certificate of Occupancy shall not be withheld for such immediate and temporary use of the facilities as a public school, as long as such facilities met building code requirements at the time of their construction, are accessible to individuals with disabilities, and are judged safe for use by the local building official.

10.Education Code section 60641(a) requiring that all pupils be administered academic assessments in mathematics, English language arts, and science, as provided for in Education Code section 60640, is suspended for the 2022-2023 school year for Pajaro Middle School, Hall District Elementary School and Ohlone Elementary School of the Pajaro Valley Unified School District, if a federal waiver is approved by the United States Department of Education.

I FURTHER DIRECT that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order.

This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.

IN WITNESS WHEREOF I have
hereunto set my hand and caused
the Great Seal of the State of
California to be affixed this 31st day
of March 2023.
________________________________

GAVIN NEWSOM
Governor of California
ATTEST:
________________________________
SHIRLEY N. WEBER, Ph.D.

Secretary of State

EXECUTIVE DEPARTMENT

STATE OF CALIFORNIA
EXECUTIVE ORDER N-7-23
WHEREAS on March 1, March 8, March 12, March 14, March 28, April 20, and May 15, 2023, I proclaimed a State of Emergency to exist in 52 counties, cumulatively, as a result of a series of winter storms that initially struck California beginning in late February and continue to significantly impact the counties identified in my Proclamations; and
WHEREAS on March 31, 2023, I issued Executive Order N-6-23 to further bolster the emergency response to this Late Winter Storms event, particularly in the Tulare Lake Basin that continues to be plagued by historic flooding; and WHEREAS on April 21, May 10, July 8, and October 19, 2021, I proclaimed States of Emergency to exist due to drought conditions; and WHEREAS on March 10, 2023, I issued Executive Order N-4-23 to address evolving drought conditions due to the winter storms and to mitigate flooding by facilitating groundwater recharge; and
WHEREAS due to the complexity of the impacts from over a dozen Atmospheric River events since December 2022, including the accumulation of a record snowpack in the Sierra Nevada that is likely to yield record snowmelt runoff, especially in the Tulare Lake Basin, I previously issued Executive Orders identified herein to respond to and recover from the winter storms, and those orders now require updating in-light of the most recent runoff conditions and the State’s more robust and recent modeling of likely flood impacts; and WHEREAS the Tulare Lake Basin includes portions of Fresno, Kings, Tulare, and Kern counties and is the terminal point for the Kaweah, Tule, and Kern Rivers as well as a portion of the Kings River and several smaller streams, meaning that water from Sierra snowpack runoff that cannot be stored in reservoirs or absorbed into the ground will flow into the basin; and
WHEREAS the Tulare Lake Basin is hydrologically connected to the San Joaquin River Basin via the James Bypass and Fresno Slough and that connection has the potential to exacerbate the flood risk in the San Joaquin River Basin, and so further emergency response efforts may become necessary in the San Joaquin River Basin; and
WHEREAS stretches of the San Joaquin River, Chowchilla and Eastside Bypasses, San Joaquin River mainstem and tributaries (Fresno River, Chowchilla River, Merced River, Stanislaus River, and Tuolumne River, hereafter, San Joaquin River Tributaries), and Fresno Slough/James Bypass have been or are at flood stage this spring, river stages are expected to stay high or increase throughout the spring and summer as snowpack melts, and multiple levee repairs are underway on the lower San Joaquin River; and
WHEREAS the Kern River – California Aqueduct Intertie exists to move floodwaters safely from the Kern River into the California Aqueduct, and the Kern River Watermaster on May 10, 2023, requested the use of the Intertie to prevent Kern River floodwater from exacerbating flooding in the Tulare Lake Basin, and state agencies have begun actions to safely enable the diversion of these flood flows; and
WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this Order would prevent, hinder, or delay the mitigation of the effects of these ongoing winter storms.

NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:

IT IS HEREBY ORDERED THAT:

1. All provisions contained in the above-referenced Proclamations of a State of Emergency and Executive Orders shall remain in full force and effect except as modified in this Order.

2. Paragraph 2 of Executive Order N-6-23 is withdrawn and replaced by the following:

To protect health, safety, and the environment, and to reduce the risks of local catastrophic flooding in the Tulare Lake or San Joaquin River Basins, the following are suspended for activities that meet the requirements in Paragraph 3.
a. Chapter 6 (commencing with section 1600) of Division 2 of the Fish and Game Code, and regulations adopted pursuant to that Chapter; and
b. Division 13 (commencing with Section 21000) of the Public Resources Code, and regulations adopted pursuant to that division.

3. Paragraph 3 of Executive Order N-6-23 is withdrawn and replaced by the following, except that any diversion in the Tulare Lake Basin that is operational as of June 1, 2023, may continue to operate under Paragraph 3 of Executive Order N-6-23 until August 31, 2023:

The suspensions created by Paragraph 2 shall apply to floodwater diversion, floating vegetation and debris removal, and levee repair and breach, in the Tulare Lake or San Joaquin River Basins, on the condition that the actions cease when the flood conditions have abated to the point there is no longer a risk of, or existing, flooding causing inundation of land, roads, or structures at or downstream of the point of diversion.

4. Additionally, the suspensions created by Paragraph 2 shall apply to floodwater diversion only if all the following additional conditions are met:
a. Any diversion of floodwaters directly from the (i) Tulare Lake Basin or rivers or streams or bypasses flooding the Tulare Lake Basin or (ii) the San Joaquin River or San Joaquin River tributaries (including Fresno Slough and James Bypass) or San Joaquin River bypasses must occur between March 31, 2023, and August 31, 2023, for flood management purposes.
b. With respect to diversions of floodwaters directly from rivers or streams or bypasses, a local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice, that flows downstream of the point of diversion are at imminent risk of flooding and inundation of land, roads, or structures.
c. With respect to diversions of floodwaters that are no longer contained within a defined streambed or levee, a local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice that areas from which the floodwaters are diverted are either at imminent risk of flooding or already flooded, with potential or existing inundation of land, roads, or structures, or are on lands inundated as a result of actions within subparagraph (a). d. Any floodwater diverted is not diverted to and will not be applied to:
i. Any barn, ponds, or lands to which manure or waste from an animal facility that generates waste from the feeding and housing of animals for more than 45 days per year in a confined area that is not vegetated are applied;
ii. Any agricultural field where pesticide or fertilizer application has occurred in the prior 30 days or in the period prohibited by applicable law, whichever is longer; iii. Any area that could cause damage to critical levees, infrastructure, wastewater and drinking water systems,
drinking water wells or drinking water supplies, or
exacerbate the threat of flood and other health and
safety concerns; or
iv. Any area that has not been in active irrigated agricultural cultivation within the past three years including grazing lands, annual grasslands, and natural habitats. This
limitation does not apply to facilities already constructed for the purposes of groundwater recharge or managed
wetlands.
e. With respect to diversions of floodwaters from waters tributary to the Sacramento and San Joaquin River Delta as defined in Water Code section 12220 (Delta), water rights holders are not making releases of stored water or reoperating facilities to provide flow for the purposes of meeting water quality control plan or endangered species requirements in the Delta at the time of the diversion.
f. With respect to diversions of floodwaters directly from the San Joaquin River or San Joaquin River Tributaries, the diversion uses:
i. either existing diversion infrastructure or temporary pumps; ii. no new permanent infrastructure or permanent
construction; and
iii. simple screens installed on temporary pump intakes to minimize the impacts of diversion to salmon and other
aquatic life.

5. Paragraph 4 of Executive Order N-6-23 is withdrawn and replaced by the following:

In addition to the mandatory conditions set forth in Paragraph 3, any person conducting planned levee breaches or controlled inundation to prevent further catastrophic flooding pursuant to the suspensions created by Paragraph 2 should, wherever feasible, protect aboveground infrastructure and water sources that are necessary for the protection of human health and the recovery of impacted communities.

6. Paragraph 5 of Executive Order N-6-23 is withdrawn and replaced by the following:

For purposes of conducting emergency flood preparation and response activities beyond those provided for in Paragraphs 2 and 3, for any (a) actions taken by state agencies, (b) actions taken by a local agency where the Secretary of the Natural Resources Agency concurs that local action is required, and (c) permits necessary to carry out actions under (a) and (b), Public Resources Code, Division 13 (commencing with Section 21000) and regulations adopted pursuant to that Division, are suspended to the extent necessary to address flood impacts in the Tulare Lake or San Joaquin River Basins.

7. Paragraph 6 of Executive Order N-6-23 is withdrawn and replaced by the following:

To support adequate state staffing for all state agencies and departments with an assigned response and/or recovery role related to flooding in the Tulare Lake or San Joaquin River Basins, consistent with applicable federal law, work hour limitations for retired annuitants, permanent and intermittent personnel, and state management and senior supervisors are suspended. Furthermore, reinstatement and work hour limitations in Government Code sections 21220, 21224(a), and 7522.56(b), (d), (f), and (g), and the time limitations in Government Code section 19888.1 and California Code of Regulations, title 2, sections 300-303 are suspended. All other restrictions must be adhered to for retired annuitants. The Director of the California Department of Human Resources must be notified of any individual employed in state government pursuant to these suspensions. The suspension of statutes identified in this Paragraph shall also apply to local governments, as applicable, to ensure adequate staffing to appropriately respond to the flooding in the Tulare Lake Basin. Local governmental agencies shall notify the California Public Employees' Retirement System of any individual employed by an agency pursuant to this Paragraph.

8. Paragraph 6 of Executive Order N-6-23 is withdrawn and replaced by the following:

The limitation for the period of employment for State Personnel Board emergency appointments, as provided in Government Code section 19888.1, is suspended for positions required for emergency response and/or recovery operations related to flooding in the Tulare Lake or San Joaquin River Basins. The requirements and period of employment for such appointments will be determined by the Office of Emergency Services, but shall not extend beyond the termination date of the State of Emergency.

9. Paragraph 3 of Executive Order N-4-23 is withdrawn and replaced by the following, except that any diversion that is operational as of June 1, 2023, may continue to operate under Paragraph 3 of Executive Order N-4-23 until August 31, 2023:

The suspensions created by Paragraph 2 of Executive Order N-4-23 shall apply to diversions of floodwaters as to which all the following conditions are met:
a. Diversions of floodwaters directly from rivers, streams, or bypasses must occur between March 10, 2023, and August 31, 2023, for flood management and associated groundwater recharge.
b. Diversions of floodwaters no longer contained within a defined streambed must prevent imminent risk of flooding or relieve flooding pressure from land, roads, or structures, already inundated, including as a result of actions within subparagraph (a).
c. A local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice, that waters at or downstream of the point of diversion are at imminent risk of flooding and inundation of land, roads, or structures.
d. The diversions cease when the flood conditions have abated to the point there is no longer a risk of, or existing, flooding causing inundation of land, roads, or structures at or downstream of the point of diversion.
e. Any floodwater diverted is not diverted to and will not be applied to:
i. Any barn, ponds, or lands, to which manure or waste from an animal facility that generates waste from the feeding and housing of animals for more than 45 days per year in a confined area that is not vegetated are applied;
ii. Any agricultural field where pesticides or fertilizer application has occurred in the prior 30 days or in the period prohibited by applicable law, whichever is longer; iii. Any area that could cause damage to critical levees, infrastructure, wastewater and drinking water systems,
drinking water wells or drinking water supplies, or
exacerbate the threat of flood and other health and
safety concerns; or
iv. Any area that has not been in active irrigated agricultural cultivation within the past three years, including grazing lands, annual grasslands, and natural habitats. This
limitation does not apply to facilities already constructed for the purpose of groundwater recharge or managed
wetlands.
f. With respect to diversions of floodwaters from waters tributary to the Sacramento and San Joaquin River Delta (Delta) as defined in Water Code section 12220 (Delta), water rights holders are not making releases of stored water or reoperating facilities to provide flow for the purposes of meeting water quality control plan or endangered species supporting regulatory requirements in the Delta at the time of the diversion.
g. The diversion uses:
i. Either existing diversion infrastructure or temporary pumps; ii. Existing groundwater recharge locations, where available; iii. No new permanent infrastructure or permanent
construction; and
iv. Simple screens installed on temporary pump intakes to minimize the impacts of diversion to salmon and other
aquatic life.
h. The person or entity availing itself of suspensions created by Paragraph 2 of Executive Order N-4-23 files a preliminary report with the Water Board and any applicable Groundwater
Sustainability Agency (GSA) or GSAs for the basin, no later than 14 days after initially commencing diversion of flood flows for groundwater recharge, and a final report with the Water Board and any applicable GSA or GSAs for the basin no later than September 15, 2023. The preliminary and final reports required by this subparagraph shall:
i. Identify the person or entity utilizing the suspensions created by Paragraph 2 of Executive Order N-4-23;
ii. Identify the triggering condition from subparagraph (c) of this paragraph;
iii. Provide the GPS coordinates for the point of diversion, a map identifying the approximate area inundated by the
flood flows, and the corresponding assessor parcel
number(s);
iv. Identify the time when diversions of floodwaters to groundwater recharge commenced, and for final reports,
when diversions ceased; and
v. Provide an estimate, as of the report's date, of the amount of floodwaters diverted utilizing the suspensions created by Paragraph 2 of Executive Order N-4-23.

The Water Board shall post on its internet website all reports received pursuant to this subparagraph.

10. To mitigate the effects of the Late Winter Storms, including by reducing the risks of local catastrophic flooding in the Tulare Lake Basin, Part 2 (commencing with section 1200) of division 2 of the Water Code, exclusive of section 1225, and regulations adopted pursuant to that part, are suspended for diversions of flood flows into the Kern Intertie and ultimately into the California Aqueduct until August 31, 2023, such that applications and permits for water rights shall not be required for such diversions, nor shall such diversions create new water rights or modify existing water rights, to the extent applications or permits would have been required or water rights would have been affected absent this suspension.

11. The Department of Water Resources and State Water Resources Control Board shall (i) communicate to water systems and others any additional information or actions necessary for those systems and others to monitor and be prepared for the addition of Kern River floodwater in the California Aqueduct, and (ii) collaborate on longterm actions that align water rights and flood response, including actions that maximize in-basin groundwater recharge.

I FURTHER DIRECT that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order.

This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.

IN WITNESS WHEREOF I have
hereunto set my hand and caused
the Great Seal of the State of
California to be affixed this 17th day
of May 2023.
_________________________

GAVIN NEWSOM
Governor of California
ATTEST:
_____________________________
SHIRLEY WEBER, PH.D
Secretary of State

Matter No. 2023359
Office of Emergency Services
5957 South Mooney Boulevard, Visalia, California 93277
(559) 624-7495 Telephone (559) 737-4692 Facsimile
April 14, 2023
Ms. Nancy Ward
Director, Governor’s Office of Emergency Services
3650 Schriever Avenue
Mather, CA 95655
Dear Director Ward,
Tulare County appreciates the Office of Emergency Services’ tireless work to support the response to and recovery from DR-4699 in our County and the surrounding region.

Specifically, your negotiation of an ongoing incident period and the expeditious approval of individual assistance programs have been particularly valuable to the affected communities as we continue to recover from storm damages, repair distressed and weakened waterways, and prepare for the impending historic snowmelt runoff.

As current snow moisture content in local watersheds is estimated at over 300% of the historical average, total inflows to local reservoirs through April and July are expected to exceed three times the reservoir capacity. Local reservoir and waterway operators continue to aggressively release water at or near full capacity to make space for the anticipated inflows and prevent a return to spillway flows, while balancing needs of downstream operators to conduct emergency repairs. As a result, a number of homes, agricultural properties, and public spaces remain inundated with floodwater, and more homes may be affected because of the new snowmelt conditions. Specifically, we anticipate similar or worse conditions as a result of the snowmelt.

Tulare County is concerned that current sheltering for individuals affected by inundation and/or evacuation orders, including previously displaced individuals who remain under an evacuation order, may be limited in duration, especially during the current intervening period between storm and snowmelt-induced flooding incidents within the disaster.

Tulare County has entered into an agreement with the City of Porterville to maintain the last remaining emergency evacuation shelter site in the County. The California Department of Social Services and Volunteer Emergency Services Team have pledged support to provide staff and services for only two weeks at this shelter. Forty Tulare County residents who have been displaced due to flood activities are staying at this site. Because the support from CDSS and VEST is limited, the County is concerned that it may not be able to continually fund and staff the ongoing shelter projects. Our concern is the ongoing financial and logistical burden to the County and the incorporated cities therein.

As we are sure that you are aware, emergency protective measures, flood control activities, and damage assessments are being conducted because of the flood conditions in Tulare County. These efforts go hand-in-hand with ensuring that County residents are safe, Office of Emergency Services
5957 South Mooney Boulevard, Visalia, California 93277
(559) 624-7495 Telephone (559) 737-4692 Facsimile
fed, and warm. The State’s cooperation in keeping funding and support from the Department of Social Services and VEST beyond the initial two weeks available for emergency sheltering of Tulare County Residents is vital. Your support in ensuring ongoing funding and logistical support for these critical emergency protective measures is greatly appreciated.

Sincerely,
Andrew Lockman
Office of Emergency Services Manager
Porterville Army National Guard Armory
Temporary Evacuation Point and Shelter
Daily Census
Date: Adults: Youth: Dogs:

Friday, May 5, 2023 12 0 1
Saturday, May 6, 2023 10 0 0
Sunday, May 7, 2023 10 0 0
Monday, May 8, 2023 15 0 1
Tuesday, May 9, 2023 12 0 0
Wednesday, May 10, 2023 8 0 0
Thursday, May 11, 2023 9 0 0
Friday, May 12, 2023 9 0 0
Saturday, May 13, 2023 7 0 0
Sunday, May 14, 2023 6 0 0
Monday, May 15, 2023 13 0 0
Tuesday, May 16, 2023 11 3 4
Wednesday, May 17, 2023 11 3 4
Thursday, May 18, 2023 16 3 4
Friday, May 19, 2023 11 0 3
Saturday, May 20, 2023 14 0 5
Sunday, May 21, 2023 12 0 4
Monday, May 22, 2023 14 0 3
Tuesday, May 23, 2023 14 5 3
Wednesday, May 24, 2023 16 3 3
Thursday, May 25, 2023 13 1 6
Friday, May 26, 2023 18 4 3
Saturday, May 27, 2023 16 5 5
Date: Adults: Youth: Dogs:

Sunday, May 28, 2023 16 1 3
Monday, May 29, 2023 18 1 3
Tuesday, May 30, 2023 19 1 6
Wednesday, May 31, 2023 17 1 3

Calwen Inc. dba Rescue Source & Rescue 3
P.O. Box 1050
Wilton, CA 95693
Phone: 916-687-6556
Fax: 916-687-6717
Email: [email protected]
Calwen Inc. dba Rescue Source &
Rescue 3 Intl
Invoice
Order # Date
131282 03/20/2023

PORTERVILLE FIRE DEPARTMENT
40 W CLEVELAND
PORTERVILLE, CA 93257
Phone: 559-782-7526
Email: [email protected] Contact: JANIE RODRIGUEZ PO Number: 23-22733
Bill To: Ship To:

PORTERVILLE FIRE DEPARTMENT
40 W CLEVELAND
PORTERVILLE, CA 93257
Customer: PORTERVILLE FIRE DEPARTMENT
Sales Rep Payment Terms FOB Point Carrier Ship Service Date Scheduled MELISSA NET 30 Origin UPS Next Day Air 03/20/2023
Item
# Type Number Description Unit Price
Qty
Ordered Total Price
1 Kit KT2210 PFD TYPE V PACKAGE $250.00 20 ea $ 5,000.00 2 Sale PF4026R NRS 2022 RAPID RESCUER RED $0.00 20 ea $ 0.00 3 Sale KN2556OR NRS PILOT KNIFE ORANGE $0.00 20 ea $ 0.00 4 Sale WH7905 WHISTLE-RESCUE 3 LOGO WITH COIL $0.00 20 ea $ 0.00 5 Sale HL7050HVL/XL RQ3 STORM PRO HELMET HI VIS

LARGE/XLARGE
$32.00 20 ea $ 640.00
6 Shipping Freight Freight Out $256.00 1 ea $ 256.00
7 Sale Tax Expense Tax Expense $521.70 1 ea $ 521.70
Total:

Subtotal:

Sales Tax:
$6,417.70
$0.00
$6,417.70
March 20, 2023 10:55:08 AM PDT Page 1 of 1
Thank you for your order.

If you have any questions please call 800-457-3728
or e-mail [email protected].

Rain For Rent
Bakersfield
4001 State Rd
Bakersfield CA 93308
United States
661-399-1724
24/7 Emergency 800-742-7246
www.rainforrent.com
Your sales person

JESSE PINTOR
REMIT PAYMENTS TO:

RAIN FOR RENT
FILE 52541
LOS ANGELES, CA 90074-2541
INVOICE Rain for Rent
3/30/2023 23-22734
112354

CITY OF PORTERVILLE

PAYMENT
DUE
PO or JOB#
1854595 4/29/2023

PLEASE PAY

ADDRESS

ADDRESS
NAME
CUSTOMER #

CUSTOMER
CONTRACT # 1169502

CITY OF PORTERVILLE

NAME CITY OF PORTERVILLE
SHIPPED TO JOBSITE:
291 N MAIN ST
PORTERVILLE CA 93257
INVOICE# INVOICE DATE
Corporation Yard
555 N Prospect St
Porterville CA 93257
$77,396.67

PHONE PHONE
Notes:

Requested by: Michael Knight
PO Number: 23-22734
QTY UOM DESCRIPTION PRODUCT # STATUS DATE
OUT
BILLED
THRU

DAYS PRICE AMOUNT TAXABLE
BILLED

1.00 EA Pump BA150E D285 Tlr Mt Diesel 0.00 $65,685.06 Y Eng Hatz 4H50TIC
1022734 SALES $65,685.06

1.00 EA Shipping/Handling 0.00 $5,158.57 Y
Freight
M240 SERVICES $5,158.57
TOTAL RENTALS:

TOTAL SALES:

TOTAL SERVICES:

SUBTOTAL:
$65,685.06
$5,158.57
$70,843.63
$0.00
TOTAL OTHER: $0.00
TAX: $6,553.04
FOR PROPER CREDIT, PLEASE INCLUDE INVOICE NUMBER ON YOUR PAYMENT.

PAST DUE AMOUNTS ARE SUBJECT TO A SERVICE CHARGE OF 1.50% CUSTOMER, (RENTEE OR BUYER as context requires), shall be deemed to accept all terms, conditions and provisions hereof upon execution of this agreement; ordering; or delivery of equipment to customer, whichever comes first.

SIGNATURE: _____________________________ DATE: ___________________ TOTAL: $77,396.67
PAYMENT TERMS: NET 30
Printed Date: 3/30/2023 Page 1 of 1

AG
5/5/23
X*
*Payment to be issued upon completion of a City of Porterville Business License Application AG
AG 5/5/23
5/5/23

State of California

GOVERNMENT CODE
Section 8558
8558. Three conditions or degrees of emergency are established by this chapter:
(a)  “State of war emergency” means the condition that exists immediately, with or without a proclamation thereof by the Governor, whenever this state or nation is attacked by an enemy of the United States, or upon receipt by the state of a warning from the federal government indicating that an enemy attack is probable or imminent. (b)  “State of emergency” means the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, electromagnetic pulse attack, plant or animal infestation or disease, the Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or other conditions, other than conditions resulting from a labor controversy or conditions causing a “state of war emergency,” which, by reason of their magnitude, are or are likely to be beyond the control of the services, personnel, equipment, and facilities of any single county, city and county, or city and require the combined forces of a mutual aid region or regions to combat, or with respect to regulated energy utilities, a sudden and severe energy shortage requires extraordinary measures beyond the authority vested in the Public Utilities Commission.
(c)  (1)  “Local emergency” means the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of a county, city and county, or city, caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, deenergization event, electromagnetic pulse attack, plant or animal infestation or disease, the Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or other conditions, other than conditions resulting from a labor controversy, which are or are likely to be beyond the control of the services, personnel, equipment, and facilities of that political subdivision and require the combined forces of other political subdivisions to combat, or with respect to regulated energy utilities, a sudden and severe energy shortage or deenergization event that requires extraordinary measures beyond the authority vested in the Public Utilities Commission. (2)  A local emergency proclaimed as the result of a deenergization event does not trigger the electric utility obligations set forth in Public Utilities Commission Decision 19-07-015 or its successor decisions as related to deenergization events. A local emergency proclaimed as the result of a deenergization event does not alter the electric utilities’ Public Utilities Commission-approved cost-recovery mechanisms for their own costs associated with deenergization events.
(Amended by Stats. 2022, Ch. 537, Sec. 1. (SB 468) Effective January 1, 2023.)