Agenda packet — Sanger City Council, August 6, 2026 (part 1 of 3)

Available for Review 72 Hours Prior to
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Agenda
Sanger City Council (AMENDED) Regular Meeting
Thursday, August 6, 2026
6:00 PM
Council Chamber
1700 7TH Street, Sanger, California 93657
The City Council meetings are open to the public. The meeting may also be viewed and accessed remotely at https://us02web.zoom.us/j/84398649274. If you are attending remotely and wish to comment on a specific item, please electronically raise your hand. Speakers will then be unmuted for the item. Members of the public may provide comments on agenda items in person or through Zoom.

Meeting ID: 843 9864 9274 Teleconference Phone Number: +1 301 715 8592 Written comments may also be submitted by email at [email protected] or by mail addressed to the City Clerk, Sanger City Hall, 1700 7th Street, Sanger, CA 93657, and received by 12:00 p.m. before the meeting. Please identify the Agenda item(s) addressed by the comments. A recording of the meeting will be posted at https://www.ci.sanger.ca.us/129/Agendas-Minutes as soon as practicable following the conclusion of the meeting. An electronic copy of this agenda and any associated staff reports and materials may be found at: https://www.ci.sanger.ca.us/129/Agendas-Minutes.

Please silence or turn off cell phones and electronic devices while the meeting is in session.

Levine Act Disclosure. Pursuant to the Levine Act (Govt Code Section 84308), any party to a permit, license, contract, or other entitlement before the City Council is required to disclose on the record any contribution, including aggregated contributions, of more than $500 made by the party or the party’s agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well.

The disclosure should be made when the agenda item is called and must include the name of the party, participant, or agent, and any other person making the contribution, the name of the recipient, the amount of the contribution, and the date the contribution was made. Council Members are also required to make such disclosures and recuse themselves.

Conflicts of Interest. Council Members are required to disclose conflicts of interests and recuse themselves.

Prior to action by the Council on any item on this agenda, the public may comment on that item.

A. Call to Order
B. Opening Ceremonies

1. Invocation

2. Flag Salute

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3. Roll Call
C. Agenda Approval, Additions and/or Deletions
D. Presentations

1. Honoring the Retirement of Todd Wilson
E. Public Forum
This portion of the meeting is reserved for members of the public who wish to address the Council on any matter not listed on the agenda and within the subject matter jurisdiction of the City Council. Each speaker is limited to three minutes. Speakers shall address all comments to the Mayor and the Council as a body and not to any particular Council Member or member of the staff. Speakers are asked, but not required, to state their name and address. The Council is prohibited by law from taking action on items not on the agenda.

F. Consent Calendar
Matters listed under the consent calendar are considered routine and will be enacted by one motion and one vote. There will be no separate discussion of these items. If discussion is desired, a member of the audience or a Council Member may request an item be removed from the Consent Calendar and it will be considered separately.

1. Minutes of Regular Council Meeting and Special Council Meeting held on July 16, 2026.

Recommendation: That the City Council approve.

2. Resolution Authorizing the City Manager to Execute the Joint Powers Agreement with the County of Fresno for Participation in the Urban County Program (CDBG, HOME, and ESG Entitlement Funding for Federal Grant Years 2027, 2028, and 2029).

Recommendation: That the City Council adopt Resolution 2026-66, authorizing the City Manager to execute a Joint Powers Agreement with the County of Fresno for participation in the Urban County Program for the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) Entitlement Programs for Federal Grant Years 2027–2029.

3. Purchase of RC Mowers R-52
Recommendations: That council approve the purchase of one (1) RC Mowers R-52 remote-operated slope mower; and authorize the City Manager to sign the purchase documents on behalf of the City.

4. Purchase of Two Work Vehicles for Public Works Department Recommendation: That City Council authorizes the City Purchasing Agent to purchase two (2) new work trucks for the Public Works Department not to exceed $130,000 for the total purchase.

5. Purchase of Unmanned Aerial Systems (Drones)
Recommendation: That the City Council review and approve the use of Measure S and successor Measure R funds for the proposed technology initiative, as approved by the Citizens Oversight Committee on July 7, 2026, and authorize a sole source purchase with Pacific General, Inc. for the acquisition of unmanned aircraft systems (drones). (Resolution 2026-67)

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6. Contract Award - 2026 Street Sealing Project
Recommendation: That the City Council:

1. Award the contract for the project for the Base Bid only to Pavement Coatings Co., 2150 Bell Avenue, Suite 125, Sacramento, CA 95838, in the amount of $589,465.35, as lowest responsive and responsible bidder; and

2. Approve a construction contingency for change orders in the amount of $59,000 (10%) for this project; and

3. Authorize the City Manager to sign contract documents on behalf of the City.

7. Second Reading and Adoption of an Ordinance Repealing and Replacing Sections 2- 156 through 2-160 of Division 4 (Planning Commission) of Article IV, Chapter 2 of the City Code.

Recommendation: That the council conduct the second reading, by title only, and adopt an Ordinance of the City Council of the City of Sanger repealing and replacing Sections 2-156 through 2-160 of Division 4 (Planning Commission) of Article IV, Chapter 2 of the City Code. (Ordinance 2026-04)

8. Second Reading and Adoption of Ordinance 2026-99, Adding Article VII to Chapter 58 of the Sanger Municipal Code Regarding Mobile Food Vendors, Open Air, and Sidewalk Vending Operations.

Recommendation: That the council conduct the second reading, by title only, and adopt Ordinance 2026-05, an Ordinance of the City Council of the City of Sanger adding Article VII to Chapter 58 of the Sanger Municipal Code to formally legalize, regulate, and promote the operation of mobile food vendors, alongside other openair and sidewalk vending activities.

G. Department Reports

1. Fiscal Year 2024 Annual Audit Financial Report and Single Audit.

Recommendation: That the City Council receive and file the Annual Audit Financial Reports and Single Audit for Fiscal Year 2024 as prepared by CPA firm, Ryan P. Jolley, Certified Public Accountants.

H. Public Hearing

1. Resolution Levying Annual Assessments for Sanger Landscaping and Lighting Maintenance District No. 1
Recommendation: That the City Council:

1. Conduct a public hearing regarding the annual assessment of the Sanger Landscaping and Lighting Maintenance District No. 1;

2. Approve the attached Resolution, Confirming Diagram and Assessment for the Annual Levy of Assessments for Sanger Landscaping and Lighting Maintenance District No. 1 for FY 2026-27;

3. Direct the City Clerk to record this resolution with the Fresno County Office of the Auditor-Controller. (Resolution 2026-69)

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2. Resolution Levying Annual Assessments for Sanger Landscaping and Lighting Maintenance District No. 2
Recommendation: That the City Council:

1. Conduct a public hearing regarding the annual assessment of the Sanger Landscaping and Lighting Maintenance District No. 2;

2. Approve the attached Resolution, Confirming Diagram and Assessment for the Annual Levy of Assessments for Sanger Landscaping and Lighting Maintenance District No. 2 for FY 2026-27;

3. Direct the City Clerk to record this resolution with the Fresno County Office of the Auditor-Controller. (Resolution 2026-70)

3. Adoption of a Resolution Calling and Giving Notice of a General Municipal Election to be Held on November 3, 2026, for the Submission to the Qualified Voters of a Proposed Ordinance Amending Article V of Chapter 66 of the Sanger Municipal Code to Increase the Transient Occupancy Tax (TOT) from 4% to 12%, and Requesting Consolidation with the Statewide General Election Recommendation: That the City Council adopt Resolution No. 2026-72, calling and giving notice of a General Municipal Election on November 3, 2026, for submitting a ballot measure to increase the Transient Occupancy Tax (TOT) rate to 12%, requesting consolidation with the statewide general election, and directing related election actions.

4. Introduction and First Reading of an Ordinance Amending and Restating Article V of Chapter 66 of the Sanger Municipal Code to Increase the Transient Occupancy Tax (TOT) Rate from 4% to 12%, Expressly Apply the Tax to Short-Term Rentals, and Implement Facilitator Reporting and Collection Requirements.

Recommendation: That the City Council introduce and give a first reading, by title only, and waive further reading thereof, to Ordinance No. 2026-06 amending and restating Article V of Chapter 66 of the Sanger Municipal Code to increase the Transient Occupancy Tax rate from 4% to 12%, subject to voter approval at the November 3, 2026 election.

I. City Manager/Staff Communication
J. Reports and Matters Initiated by City Council Members This portion of the meeting is reserved for the Mayor and Council Members (i) to make brief reports on boards, committees, and other public agencies, and at public events, (ii) to initiate new matters and to request updates, and to initiate new agenda items. Under this section, the Council may take action only on any items specifically agendized and which meet other requirements for K. Adjournment
I certify under the penalty of perjury, under the laws of the State of California that the foregoing agenda was posted in accordance with the applicable legal requirements. Dated this

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________________________________
Lina Martinez, City Clerk
ADA Compliance and Reasonable Accommodations Policy. The Council has adopted a Reasonable Accommodation Policy which is available on the City website at or upon request by emailing the City Clerk. The Policy provides a procedure for receiving and resolving requests for accommodation to participate in this meeting. If you need assistance in order to attend this Council meeting or require auxiliary aids or services, e.g., hearing aids or signing services to make a presentation to the Council, please email the City Clerk or call by phone at (559) 876- 6300 extension 1350 so such aids or services can be arranged. Accommodations should be requested as early as possible as additional time may be required in order to provide the requested accommodation.

Notice of Availability of Agenda Documents. Writings related to the agenda are available at Sanger City Hall, 1700 7th Street, Sanger, CA 93657 and are posted on the City website.

Writings provided to a majority of the City Council within 72 hours of the meeting regarding any item on this agenda will be made available for public inspection at the City Clerk’s Office located at Sanger City Hall, 1700 7th Street, Sanger, CA 93567 and will be posted on the City website.

Machine Translation Disclaimer: Pursuant to California Government Code section 54953.4(b)(2), this may be translated into languages other than English with such translation generated using an automated translation service. Any translation is provided as a convenience to the public. It may not be an exact or complete translation of the original English version. In the event of any discrepancy or conflict, the English version shall control.

The City of Sanger is not responsible for the accuracy or content of automated translations.

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Minutes for City Council Special Meeting
Thursday, July 16, 2026
5:30 PM
Council Chamber
1700 7TH Street, Sanger, California 93657
A. Call to Order
The City Council called its Special Meeting to order at 05:33 PM B. Roll Call

Present: Mayor Frank Gonzalez, Council Member michael montelongo, Council Member Dolores Melendez

Absent: Mayor Pro Tem Daniel Martinez, Council Member Esmeralda Hurtado Arrival: Mayor Pro Tem Martinez arrived at 5:35 p.m.

C. Approval of Agenda
The Council, by motion of Council Member Montelongo, approved the agenda as posted.

The motion was seconded by Council Member Melendez and approved by the following vote:

Ayes: GONZALEZ, MONTELONGO, MELENDEZ
Noes: NONE
Abstain: NONE

Absent: MARTINEZ, HURTADO
D. Public Forum
None
E. Closed Session
The Council adjourned to Closed Session at 5:36 pm.

The Council reconvened the Special Meeting at 6:18 pm

1. Pursuant to Government Code Section 54957.6

CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Shelline Bennett, Lead Negotiator, Amanda Champion, HR Manager. Employee Organizations: Sanger General Employees Organization, Sanger Middle Management Organization, Sanger Police Officers Association, Sanger Firefighters Association, Stationary Engineers Local 39,

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Unrepresented/Confidential Employees and Executive Employees

2. Conference with Legal Counsel – Anticipated Litigation Deciding whether to initiate litigation pursuant to Government Code Section 54956.9(d)(4).

Number of Cases: One case (City of Sanger v. DG Construction, Inc.)

3. Liability Claims
Claimant: DG Construction Inc.

Agency claimed against: City of Sanger

4. Conference with Legal Counsel – Anticipated Litigation Deciding whether to initiate litigation pursuant to Government Code Section 54956.9(d)(4)
Number of Cases: One case (2404 Webster Street, Sanger, CA 93657.) F. City Attorney Report From Closed Session
Reportable Action:

Item E-3: Claim was denied on Lack of Merit.

Item E-4: Litigation was authorized in order to enforce the clean-up project and the appointment of the receiver is appropriate.

G. Adjournment
Being no further business, the Council adjourned their meeting at 06:18 PM ATTEST:
__________________________________
Lina Martinez, City Clerk

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Minutes for City Council Regular Meeting
Thursday, July 16, 2026
6:00 PM
Council Chamber
1700 7TH Street, Sanger, California 93657
A. Call to Order
The City Council called its meeting to order at 06:18 PM B. Opening Ceremonies

1. Invocation
The invocation was offered by Pastor Paul Canaday from Grace Community Church.

2. Flag Salute
The flag salute was led by Mayor Frank Gonzalez.

3. Roll Call

Present: Mayor Frank Gonzalez, Mayor Pro Tem Daniel Martinez, Council Member Michael Montelongo, Council Member Dolores Melendez

Absent: Council Member Esmeralda Hurtado
C. Agenda Approval, Additions and/or Deletions
The Council, by motion of Council Member Melendez, approved the agenda as posted.

The motion was seconded by Council Member Montelongo and approved by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO
D. Public Forum
Seventeen members of the public spoke
E. Consent Calendar
The Council, by motion of Council Member Montelongo, approved all Consent Calendar

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items. The motion was seconded by Council Member Melendez and carried by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO

1. APPROVED-Minutes of Regular Council Meeting and Special Council Meeting held on June 18, 2026 and Special Council Meeting held on June 29, 2026 and July 6, 2026.

2. APPROVED-Payroll for the month of June, including Direct Deposit Nos. 70158 through 70439, Payroll Check Nos. 60977 through 61058, and Benefit Check Nos. 2226 through 2233.

3. APPROVED-Warrants, including Check Nos. 97478 through 97708, for the month of June 2026.

4. APPROVED-Police Department Report for June 2026

5. APPROVED-Fire Department Report for June 2026

6. APPROVED-Job Descriptions for Police Commander and Kennel Technician and Assigning a Salary Band to the Kennel Technician Classification-(Resolution No. 2026-57)

7. APPROVED-Uniform and Supplies Agreement with Cintas Corporation No. 2 F. Department Reports

1. APPROVED-Adoption of a Technology Disruption Policy as Required by Senate Bill 707 (SB 707). (Resolution No. 2026-58)
Public Comment
None
The Council, by motion of Mayor Pro Tem Martinez, approved item F-1. The motion was seconded by Council Member Melendez and by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO

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G. Public Hearing

1. APPROVED-Sanger Master Fee Update Final Report. (Resolution No 2026-59) Opened at 7:21 pm and closed at 8:04 pm
Public Comment
Two members of the public spoke
The Council, by motion of Mayor Pro Tem Martinez, approved item G-1. The motion was seconded by Council Member Melendez and by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO

2. APPROVED-Ordinance Updating the Structure of the Planning Commission Opened at 8:14 pm and closed at 8:21 pm
Public Comment
One member of the public spoke
The Council, by motion of Council Member Melendez, approved item G-2. The motion was seconded by Mayor pro tem Martinez and by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO

3. APPROVED-Ordinance Adding Article VII to Chapter 58 of the Sanger Municipal Code Regarding Mobile Food Vendors, Open Air, and Sidewalk Vending Operations Opened at 8:22 pm and closed at 8:26 pm
Public Comment
None

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The Council, by motion of Council Member Montelongo, approved item G-3. The motion was seconded by Mayor pro tem Martinez and by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO

4. APPROVED-Confirmation of Intent to Pursue Increase to Transient Occupancy Tax (TOT) and Submitting Ballot Measure to Voters for the November 3, 2026, General Election
Opened at 8:27 pm and closed at 8:35 pm
Public Comment
None
The Council, by motion of Mayor Pro Tem Martinez, approved item G-4. The motion was seconded by Council Member Melendez and by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO

5. APPROVED-Initiation of Proceedings for the Annexation of Property into Community Facilities District 2005-1, Annexation No. 7, Tract 6431, Phase 2A (Resolution No. 2026-61 and Resolution No. 2026-62)
Opened at 8:35 pm and closed at 8:39 pm
Public Comment
None
The Council, by motion of Council Member Montelongo, approved item G-5. The motion was seconded by Mayor Pro Tem Martinez and by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO

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6. APPROVED-Initiating Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for the Annexation of Property into Sanger Landscaping and Lighting Maintenance District No. 2, Area 1, to Review the Improvements and Assessments for Fiscal Year 2026-2027, and to Set a Public Hearing. (Resolution No. 2026-63) Opened at 8:41 pm and closed at 8:42 pm
Public Comment
None
The Council, by motion of Mayor Pro Tem Martinez, approved item G-6. The motion was seconded by Council Member Montelongo and by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO

7. APPROVED-Initiation of Proceedings for the Annexation of Property into Community Facilities District 2005-1, Annexation No. 8, Tract 6531, Serenade II. (Resolution No. 2026-64)
Opened at 8:43 pm and closed at 8:44 pm
Public Comment
None
The Council, by motion of Council Member Montelongo, approved item G-7. The motion was seconded by Mayor Pro Tem Martinez and by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO

8. APPROVED-Initiating Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for the Annexation of Property into Sanger Landscaping and Lighting Maintenance District No. 2, Area 1, Tract 6531. (Resolution No. 2026-65) Opened at 8:46 pm and closed at 8:47 pm
Public Comment
None

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The Council, by motion of Mayor Pro Tem Martinez, approved item G-8. The motion was seconded by Council Member Melendez and by the following vote:

AYES: GONZALEZ, MARTINEZ, MONTELONGO, MELENDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: HURTADO
H. City Manager/Staff Communication
Updates by Parks & Recreation Director-Doug Bolton.

Updates by City Manager-Nathan Olson
I. Reports and Matters Initiated by City Council Members Updates by Mayor Pro Tem Martinez, Council Member Montelongo, Council Member Melendez and Mayor Frank Gonzalez.

J. Adjournment
Being no further business, the Council adjourned their meeting at 09:09 PM ATTEST:
__________________________________
Lina Martinez, City Clerk

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For the Meeting of: August 6, 2026
Agenda Item No.: F.2.

City of Sanger
Report to the City Council
To: City Council
From: Joshua Goggins, Community Development Director
Subject: Resolution Authorizing the City Manager to Execute the Joint Powers Agreement with the County of Fresno for Participation in the Urban County Program (CDBG, HOME, and ESG Entitlement Funding for Federal Grant Years 2027, 2028, and 2029).

Conflict of Interest:

None known.

Recommendation:

That the City Council adopt Resolution 2026-66, authorizing the City Manager to execute a Joint Powers Agreement with the County of Fresno for participation in the Urban County Program for the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) Entitlement Programs for Federal Grant Years 2027–2029.

Executive Summary/Background:

The County of Fresno serves as the urban county entitlement grantee for federal Community Development Block Grant, HOME, and Emergency Solutions Grants funds administered by the U.S. Department of Housing and Urban Development. Non-entitlement cities within Fresno County, excluding the self-entitled cities of Fresno and Clovis, may join the Urban County Program to pool resources and implement housing rehabilitation, public infrastructure improvements, public services, and homeless assistance activities on a regional basis.

The proposed Joint Powers Agreement establishes a term covering Federal Fiscal Years 2027, 2028, and 2029, spanning Program Years July 1, 2027, through June 30, 2030, with legal terms extending until all funds are fully expended, closed out in federal reporting systems, and audited.

In strict compliance with federal regulations, parties cannot withdraw from or terminate the agreement during the three-year qualification period. However, this commitment is strictly

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limited to the specified program years and does not bind the City regarding future participation for Federal Grant Year 2030 and beyond.

Community Development Block Grant funds allocated to participating cities are distributed via a formula mirroring federal Formula A methodology, which balances population, poverty metrics, and overcrowded housing units. HOME and Emergency Solutions Grants funds are administered regionally by the County in coordination with the Fresno Madera Continuum of Care to maximize impact. Additionally, participation in the Urban County structure ensures that Sanger Permanent Local Housing Allocation funds continue to be efficiently administered through the County framework, while the City agrees to adhere to federal civil rights laws, affirmatively further fair housing, maintain required anti-displacement and excessive force policies, and collaborate on local Housing Element compliance.

Reason for Recommendation:

Authorizing this agreement is critical for maintaining Sanger ongoing access to vital federal and state housing and community development resources without interruption. Failing to execute the Joint Powers Agreement prior to deadlines would forfeit the City annual Community Development Block Grant formula allocations, cut off regional HOME and Emergency Solutions Grants program benefits, and disrupt the administration of Sanger Permanent Local Housing Allocation funds. By executing this document, the City secures its continued partnership within the Urban County framework, ensuring that federal funds continue to flow toward local infrastructure improvements, public services, and affordable housing opportunities for lowincome residents.

Fiscal Impact:

Participation in the Urban County Program involves no direct financial cost or cash match from the City General Fund. Instead, it entitles the City of Sanger to receive annual formula-based Community Development Block Grant allocations and gives the City access to regional HOME and Emergency Solutions Grants program funds for eligible community development, housing rehabilitation, and public service projects.

Alternatives:

An alternative is denial of authorization in that, the City Council could decline to sign the agreement. This would result in the City losing its entitlement status under the Urban County Program, forfeiting upcoming Community Development Block Grant, HOME, and Emergency Solutions Grants funding allocations for Federal Fiscal Years 2027 through 2029, and forcing Sanger to administer its own housing programs independently. This is not recommended as it would severely impact the City community development budget and administrative capacity. An additional alternative is for the City Council to request agreement modifications. More specifically, the City Council could request specific changes to be made to certain facets of the agreement, however, this is a standardized multi-jurisdictional cooperation agreement, and substantive unilateral changes would violate federal qualification requirements and jeopardize the entire Urban County structure.

Actions Following Approval:

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Upon City Council authorization, staff will return the signed Joint Powers Agreement and resolution to the County office by August 7 so the County can process a walk-on update for the Board of Supervisors agenda on August 11.

Attachments:

1. RESO_2026-66

2. JPA 27-30__

3. CDBG Funding Distribution

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RESOLUTION NO. 2026-66

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER

AUTHORIZING THE CITY MANAGER TO EXECUTE THE JOINT POWERS

AGREEMENT WITH THE COUNTY OF FRESNO FOR PARTICIPATION IN

THE URBAN COUNTY PROGRAM FOR COMMUNITY DEVELOPMENT

BLOCK GRANT, HOME INVESTMENT PARTNERSHIPS, AND EMERGENCY

SOLUTIONS GRANTS ENTITLEMENT FUNDING FOR FEDERAL GRANT
YEARS 2027, 2028, AND 2029
WHEREAS, the County of Fresno and the City of Sanger desire to engage in cooperative housing and community development activities as authorized under the Housing and Community Development Act of 1974, as amended; and
WHEREAS, the U.S. Department of Housing and Urban Development requires participating units of local government to enter into a cooperation agreement, executed as a Joint Powers Agreement under California Government Code Section 6500, to qualify as part of an Urban County entitlement area for Federal Grant Years 2027, 2028, and 2029; and WHEREAS, participation in the Urban County Program ensures the City of Sanger receives continued annual formula allocations of Community Development Block Grant funds, access to HOME Investment Partnerships and Emergency Solutions Grants funding, and continued administrative support for the State Permanent Local Housing Allocation program; and WHEREAS, the City Council has reviewed the proposed Joint Powers Agreement, including Exhibit A regarding the record of participating and non-participating cities and Exhibit B regarding funding distribution, and finds that participation in the Urban County Program is in the best economic and community interest of the City of Sanger; and WHEREAS, the City Council finds that executing said Agreement is necessary to promote orderly community development, assist low-income residents, and address local housing and infrastructure needs.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sanger that the City Manager is hereby authorized to execute the Joint Powers Agreement between the County of Fresno and Participating Cities for the Urban County Program for Community Development Block Grant, HOME, and Emergency Solutions Grants Entitlement Funding for Federal Grant Years 2027, 2028, and 2029, in a form substantially similar to that presented to the City Council, and is further authorized to sign necessary related program documents and certifications required by the County of Fresno and the U.S. Department of Housing and Urban Development.

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* * * * * * * * * * * * * * * *
The foregoing was considered by the City Council of the City of Sanger at a regular meeting of said Council held on the 6th day of August 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:

___________________________ ___________________________ Lina Martinez, City Clerk Frank Gonzales, Mayor
City of Sanger City of Sanger

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28 JOINT POWERS AGREEMENT
COUNTY OF FRESNO’s URBAN COUNTY PROGRAM for COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS (HOME), and

EMERGENCY SOLUTIONS GRANTS (ESG) ENTITLEMENT FUNDING
FOR FEDERAL GRANT YEARS 2027, 2028, and 2029
THIS JOINT POWERS AGREEMENT (the “Agreement”) is executed this _____ day of August, 2026, by and between the COUNTY OF FRESNO, a political subdivision of the State of California, (“COUNTY”), and each city listed under “Participating Cites” in Exhibit A “Record of Participating and Non-Participating Cities,” attached hereto and by this reference incorporated herein (collectively hereinafter referred to as “CITY” or “CITIES”). References in this Agreement to party or parties shall be understood to refer to COUNTY and CITIES unless otherwise specified. It is further understood that any references to "units of local government” shall refer to the CITIES. Collectively, the Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Solutions Grants (ESG) entitlement programs funded by the U.S. Department of Housing and Urban Development (HUD) shall be known as the URBAN COUNTY PROGRAM.

WITNESSETH
WHEREAS, the COUNTY and the CITIES desire to engage in housing and community development activities as authorized under the Housing and Community Development Act of 1974, as amended, and hereafter referred to as the ACT; WHEREAS, the ACT requires that certain cooperative agreements be entered into between the COUNTY and the CITIES for a period of three years in order to implement the provisions and terms of said ACT;
WHEREAS, the person designated by title in Exhibit A is authorized to execute this Agreement on the city’s behalf; and
WHEREAS, the Chairman of the Board is authorized to execute this Agreement on the County’s behalf; and

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28 WHEREAS, the COUNTY and the CITIES are public agencies under the provisions of Section 6500 of the Government Code of the State of California (GC), and each is authorized by law to enter into Joint Powers Agreements; and
WHEREAS, HUD uses the term “Cooperation Agreement” for cooperative agreements between Urban Counties, such as the COUNTY, and non-entitlement cities, which include all incorporated cities within the County of Fresno except for the City of Fresno and the City of Clovis; and
WHEREAS, any reference within the Agreement to Joint Powers Agreement as defined by the State of California shall be equivalent to the term “Cooperation Agreement” as defined by HUD in its CPD Notice 26-08, titled “Instructions for Urban County Qualification for Participation in the Community Development Block Grant (CDBG) Program;” and WHEREAS, the COUNTY and the CITIES are individually authorized by law to engage in housing and community development activities funded by CDBG, HOME, and ESG; WHEREAS, the COUNTY and the CITIES are each individually obligated by GC Section 65583(c) to undertake the actions identified in their respective Housing Elements of their General Plan; and
WHEREAS, the State of California has tied the CDBG Urban County structure as it existed in 2017 to urban county designation for its Permanent Local Housing Allocation (PLHA) program; and whereby the PLHA allocations for the cities of Fowler, Kerman, Kingsburg, Mendota, Reedley, Sanger, and Selma are automatically administered by the COUNTY, but all other cities must administer their own by default; and
WHEREAS, the CITIES are electing to participate in this Joint Powers Agreement; and WHEREAS, the COUNTY and the CITIES find and determine that it is in the best interest of the residents of the unincorporated area of the COUNTY and of the CITIES that housing and community development activities be performed jointly in accordance with the provisions of this Agreement in that HUD recommends the expenditure of funds for such purpose on a regional basis; and
WHEREAS, the COUNTY requalified for entitlement status as an urban county to

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28 administer and implement the CDBG, HOME, and ESG programs for housing and community development activities and homeless services on behalf of the CITIES in accordance with the provisions of the ACT, the laws of the State of California, and the terms and conditions hereinafter provided.

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

I. TERM
The term of this Agreement shall commence on July 1, 2027, and shall terminate only after all funding from Federal Fiscal Years 2027, 2028, and 2029 have been fully expended and audited, which is anticipated to be on or after June 30, 2043. This Agreement covers the following Federal Fiscal Years and the following Program Years:

Federal Fiscal Years Program Years
October 1, 2026 to September 30, 2027 July 1, 2027 to June 30, 2028 October 1, 2027 to September 30, 2028 July 1, 2028 to June 30, 2029 October 1, 2028 to September 30, 2029 July 1, 2029 to June 30, 2030 Notwithstanding the foregoing, this Agreement shall remain in effect until the CDBG, HOME, and ESG funds and program income received with respect to activities carried out during the three-year qualification period are expended and the funded activities completed, funding is drawn down from the Federal government, the projects are closed out in IDIS or a successor system, grant closeouts have occurred, and any audits have been initiated and resolved.

II. NO ABILITY TO WITHDRAW OR TERMINATE
No parties to this Agreement may withdraw from, be released from, or terminate this Agreement for Federal grant years 2027, 2028, and 2029 during the three-year program period or while the Agreement remains in effect.

Although this Agreement remains in effect for a lengthy duration, it is specific to the three Federal grant years identified above and shall not impact the CITIES’ ability to make a free decision whether or not to participate in the Urban County program for Federal grant year 2030.

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28 All parties to this Agreement shall be participants in the preparation of the COUNTY's next five-year Consolidated Plan, all Annual Action Plans, and all Consolidated Annual Performance and Evaluation Reports.

III. COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
A. The parties to this Agreement, pursuant to the requirements of the ACT, agree to take all actions necessary to ensure compliance with the urban county's certification under Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, and that the grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 and the implementing regulations at 24 CFR part 1, the Fair Housing Act and the implementing regulations at 24 CFR part 100, and will comply with the obligation to affirmatively further fair housing. The parties to this Agreement will also comply with Section 109 of Title I of the Housing and Community Development Act of 1974 and the implementing regulations at 24 CFR part 6, which incorporates Section 504 of the Rehabilitation Act of 1973 and the implementing regulations at 24 CFR part 8, Title II of the Americans with Disabilities Act and the implementing regulations at 28 CFR part 35, the Age Discrimination Act of 1975 and the implementing regulation at 24 CFR part 146, Section 3 of the Housing and Urban Development Act of 1968, National Environmental Policy Act of 1969, Executive Order 11988, 24 CFR 570 pertaining to the CDBG program regulations, and to comply with other applicable laws and regulations. The parties agree that CDBG, HOME, and ESG funding shall in no event be used for activities in, or in support of, any CITY that impedes the COUNTY’s actions to comply (or ensure compliance) with the COUNTY’s fair housing certification and duty to affirmatively further fair housing.

B. The parties to this Agreement acknowledge that the COUNTY and CITIES may not sell, trade, or otherwise transfer all or any portion of their CDBG funds to another metropolitan city, urban county, unit of general local government, Indian tribe, or insular area that directly or indirectly receives CDBG funds, in exchange for any other funds, credits or non-Federal considerations, but must use these funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended.

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28 C. The parties to this Agreement, pursuant to the requirements of the ACT, agree to cooperate to undertake, or assist in undertaking essential community development and housing assistance activities, community renewal, and lower-income housing assistance activities.

D. The parties to this Agreement may not take any action to obstruct the implementation of the approved Consolidated Plan or any Action Plan.

E. The parties to this Agreement understand the COUNTY is prohibited from funding activities in, or in support of, any CITY that does not affirmatively further fair housing within its own jurisdiction or that impedes the COUNTY's actions to comply with its fair housing certification.

F. The Parties agree to adopt amendment(s) to this Agreement as may be required by HUD to meet any new Urban County Qualification requirement(s), when applicable.

If an amendment is required by HUD and the parties to this Agreement fail to execute a timely Amendment, HUD may require the Urban County to submit a new Agreement.

IV. RESPONSIBILITIES OF THE COUNTY
A. The COUNTY is responsible for program administration and implementation; determining needs; setting goals; preparing and submitting a five-year Consolidated Plan, Annual Action Plan, annual Consolidated Annual Performance and Evaluation Reports, and all required assurances or certifications to HUD; and has the final authority for approving CDBG, HOME, and ESG program activities and priorities.

B. The COUNTY is responsible for overseeing and administering the implementation of the URBAN COUNTY PROGRAM in the unincorporated areas of the County.

C. The COUNTY shall be responsible for monitoring and reporting to HUD the use of any program income generated from activities funded by this Agreement.

D. The COUNTY is responsible for notifying non-participating CITIES annually of their ability to join the URBAN COUNTY PROGRAM.

E. The COUNTY shall make available to each CITY any special funding

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28 allocations that may be based on the CITIES’ participation with the COUNTY in the CDBG program. These programs may include, but shall not be limited to, special allocations of CDBG or HOME funds that exceed the annual entitlements provided through this Agreement during the term of this Agreement.

F. The COUNTY shall notify each CITY when it makes a reservation of COUNTY-administered CDBG, HOME, or ESG within the CITY’s jurisdiction, to facilitate coordination of inspections, reports, and any assurances to state and federal funders of affordable housing.

V. RESPONSIBILITIES OF THE CITIES
A. Pursuant to the ACT, by signing this Agreement, each CITY affirms that it has adopted and is enforcing:

1. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations.

2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction.

B. It is understood and agreed that pursuant to the ACT, each participating CITY:

1. May not apply for grants from appropriations under the State CDBG program for fiscal years during the period in which it participates in the URBAN COUNTY PROGRAM;

2. May receive a formula allocation under the HOME program only through the URBAN COUNTY PROGRAM. Thus, even if the URBAN COUNTY PROGRAM does not receive a HOME formula allocation, the participating unit of local government cannot form a HOME consortium with other local governments. (Note: This does not preclude the COUNTY or a unit of government participating with the URBAN COUNTY PROGRAM from applying to the State for HOME funds if the State allows); and

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28 3. May receive a formula allocation under the ESG program only through the URBAN COUNTY PROGRAM. This does not preclude the COUNTY or a unit of general local government participating with the URBAN COUNTY PROGRAM from applying to the State for ESG funds if the State allows.

C. Each CITY must follow all applicable requirements within the URBAN COUNTY PROGRAM’s Citizen Participation Plan. Citizen participation and the Local Public Meeting Process requirements must be met prior to the CITY submitting to the COUNTY any application for CDBG funding for a new project.

D. Each CITY must maintain records that demonstrate compliance with fair housing, accessibility, and civil rights objectives. These records shall be provided to the COUNTY upon request.

E. The CITIES do not have the power to veto or otherwise restrict, obstruct implementation, or withhold support to the community development and housing assistance activities referred to in the Consolidated Plan and Annual Action Plan, for any program year covered by this Agreement and/or such additional time as may be required for the expenditure of funds granted to the COUNTY for such period.

F. Shall provide to developers proposing an affordable housing development project seeking State tax credits a completed California Tax Credit Allocation Committee (CTCAC) Local Reviewing Agency Evaluation Form after first discussing with the COUNTY any responses (or lack thereof) to questions concerning the use of CDBG, HOME, or ESG; and, after completion of the form, provide a courtesy copy to the County. This coordination of response is needed to ensure the accuracy of information provided by the CITY to CTCAC.

G. Shall collaborate with the COUNTY on matters of the Housing Element, substandard housing code enforcement, and ensuring housing for low-income households remains decent, safe, and sanitary. Collaboration includes promotion of rehabilitation program, inspections of affordable housing, referral of suspected low-income households living in substandard housing to the County’s rehabilitation program, if any such program is in

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28 operation.

H. Shall collaborate and share information with the COUNTY on land use applications, entitlement applications, and building inspections for projects which are utilizing COUNTY-administered CDBG, HOME, or ESG funding. This includes ensuring enforcement of applicable regulations governing the use of specific funding sources prior to issuing a building permit.

I. Shall consider in subsequent years whether to add a portion of CITYallocated CDBG funds to support owner-occupied housing rehabilitation activities carried out by the COUNTY.

J. Nothing herein shall be construed as limiting, in any manner, the powers of any of the respective parties to initiate and complete a local activity within their respective jurisdiction with their own funds.

VI. ALLOCATION OF HOME FUNDING
A. The COUNTY agrees to make HOME funds available for eligible activities (including housing development and multifamily housing preservation) within the jurisdiction of the unincorporated area of the COUNTY and the CITIES through its Department of Public Works and Planning Community Development Division.

B. HOME funds will be provided pursuant to the terms of the COUNTY’s annual Notice of Funding Opportunity, consistent with the 2025-29 Consolidated Plan, and the County’s Citizen Participation Plan.

C. The authority to approve HOME funds for eligible housing developers, entities, and agencies for eligible activities shall rest with the COUNTY’s Board of Supervisors.

D. CITIES participating in the URBAN COUNTY PROGRAM do not receive individual allocations of HOME funds.

VII. ALLOCATION OF CDBG FUNDING FOR HOUSING ACTIVITIES
A. The COUNTY agrees to make CDBG funds available for eligible housing activities (including low-income owner-occupied housing rehabilitation within the jurisdiction of the unincorporated area of the COUNTY and the CITIES through its Department of Public

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28 Works and Planning Community Development Division.

B. CITIES will be invited to designate a portion of their CDBG funding for owner-occupied housing rehabilitation efforts administered by the County.

C. The COUNTY may, but bears no obligation to, utilize COUNTYadministered CDBG funds for the benefit of low-income owners residing in CITIES.

VIII. COORDINATION OF INSPECTIONS AND REPORTS FOR STATE HOUSING FUNDS
A. The parties acknowledge that coordination on State funding for affordable housing (such as the Permanent Local Housing Allocation) is not material to the federal Urban County requirements or HUD obligations. However, as an independent mutual benefit of this Agreement, the COUNTY agrees to inform CITY when it reserves funding it administers for an affordable housing project within CITY limits; and the CITY agrees to facilitate coordination of inspections, reports, and assurances for affordable housing projects funded by the COUNTY within the CITY’s jurisdiction.

IX. ALLOCATION OF ESG FUNDING
B. The COUNTY shall administer an ESG program for homeless services and other eligible activities through its Department of Social Services in partnership with the Fresno-Madera Continuum of Care (FMCOC).

C. In accordance with applicable Federal law supporting services based on recipients’ relative needs, the COUNTY may use its ESG funds for the residents of the entire COUNTY. To the extent possible, the COUNTY shall prioritize ESG services for residents of the CITIES and unincorporated areas of the COUNTY, though service points may be centrally located (i.e. within the City of Fresno) and outside the URBAN COUNTY PROGRAM jurisdiction.

D. As the COUNTY and FMCOC align priorities and leverage funding by jointly coordinating homeless services, CITIES participating in the URBAN COUNTY PROGRAM do not receive individual allocations of ESG funds.

X. ALLOCATION OF CDBG FUNDING TO CITIES

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28 A. The allocation of new incoming Federal funds for annual expenditures on CDBG activities shall be made in accordance with Exhibit B “CDBG Funding Distribution.” This distribution follows the mathematical methodology used by HUD in its Formula A calculations described in the HUD publication, “CDBG Formula Targeting to Community Development Need” (February 1, 2005) and which is currently accessible for viewing at the weblink:
https://www.huduser.gov/portal/publications/commdevl/cdbgAssess.html.

B. It is understood and agreed that any proposed CDBG expenditure is subject to the condition that a different distribution of funds may occur at the COUNTY’s discretion when made necessary to comply with the ACT, including but not limited to expenditure requirements.

C. If a CITY’s CDBG funds are advanced to one or more other participating CITIES in order to accelerate expenditures, including but not limited to meet requirements for timeliness of expenditures, the CITY advancing funds shall be reimbursed by the recipient of those funds with the recipient’s next program year allocation(s).

D. Any CDBG funds remaining available to any CITY and not allocated during the term of this Agreement to an activity upon which substantial progress is being made, will no longer be available to that CITY should that CITY not enter into the next succeeding Joint Powers Agreement. Such CDBG funds shall be distributed to the COUNTY and the thenparticipating CITIES of that Joint Powers Agreement, based upon the formula established by the ACT.

XI. CITIES AS SUBRECIPIENTS OF CDBG FUNDS
A. Each CITY, pursuant to 24 CFR 570.501(b), is considered a subrecipient of CDBG funds, and is subject to the requirements for subrecipients. Before disbursing CDBG funds to a subrecipient, the COUNTY shall prepare a written Agreement in accordance with Federal regulations (as described in 24 CFR 570.503), and execute such Agreement with the subrecipient. The Agreement shall remain in effect during any period that the subrecipient has use of CDBG funds, including program income.

XII. CDBG PROGRAM ACTIVITIES

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28 A. Each CITY agrees to develop and complete eligible program activities in a timely manner so that the URBAN COUNTY PROGRAM will comply with Federal expenditure requirements. Time is of the essence in completing these activities.

B. Each CITY agrees to submit application(s) for eligible CDBG activities no later than July 31st prior to the start of each program year. Should a CITY not submit an application for an eligible activity by the July 31st date, and/or make substantial progress toward completion of an eligible activity during the program year in which the funds are allocated, upon mutual agreement by the staff of all the parties, the COUNTY shall redistribute funds to other participating CITIES with an eligible activity ready to commence.

C. Each CITY in formulating its annual application to expend CITY-allocated CDBG funds shall conduct at least one annual public meeting to provide its residents an opportunity to participate in the recommendation of activities for the CDBG program. Such meetings shall be conducted whenever a participating CITY intends to seek approval for an activity to be funded with CDBG funds. If a CITY intends to continue with a multi-year activity that was approved as a multi-year activity during a prior year, then this public meeting requirement may be waived. Each of the participating CITIES shall provide reasonable notice to its residents of said meetings and shall make efforts to disseminate information to the public concerning a particular activity.

D. If a CITY, due to unforeseen and uncontrollable circumstances, cannot comply with the time schedule within an executed project agreement, the schedule for the activity may be extended by the COUNTY. If an extension is granted, the CITY shall take all appropriate measures to ensure the adjusted timeline is met.

E. Determination regarding substantial progress towards goals and spending shall be made by the COUNTY in its sole discretion.

XIII. CITY REIMBURSEMENT OF CDBG FUNDS DUE TO AUDIT FINDING OR

CANCELLATION
A. If a CITY does not comply with subrecipient requirements and is required to repay funds received as a result of a Federal audit finding, the CITY shall repay CDBG funds

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28 used for the project back to HUD. The source of the repaid funds shall be in accordance with HUD guidelines.

B. If a CITY, for any reason, cancels a program activity without completion, fails to perform to the terms of their subrecipient agreement, or the project fails to meet a national CDBG objective, the CITY shall reimburse to the COUNTY the amount of all CDBG funds provided to the CITY for the activity. The reimbursed amount of funds shall be credited back to the CITY’s allocation of CDBG funds.

XIV. CDBG PROGRAM INCOME
A. CDBG Program Income shall not be factored into the CDBG Allocation formula; however, consistent with the ACT, the COUNTY may retain 20% of all CITY-generated program income received for COUNTY’s administrative purposes.

B. The reporting obligation of the CITIES pursuant to the ACT shall include the following (as may be amended by HUD from time to time):

1. A participating CITY must inform the COUNTY when any program income is generated by the expenditure of CDBG funds.

2. In the event of close-out of the CDBG program or a change in status of a participating CITY, each participating CITY must inform the COUNTY of any CDBG generated program income received, regardless of whether the income was received before or after the close-out or change in status.

3. Any program income generated by a CITY CDBG-funded activity must be paid to the COUNTY. The COUNTY shall credit the amount to that CITY’S CDBG allocation in August of the fiscal year following when program income was accrued for use on subsequent CITY CDBG-eligible activities in accordance with Federal requirements; provided that the CITY is participating in the URBAN COUNTY PROGRAM at the time the program income is generated.

4. If the CITY is not participating in the URBAN COUNTY PROGRAM at the time the program income is generated, the COUNTY is not obligated to credit the amount to that CITY’S CDBG allocation for use on subsequent CITY CDBG-eligible

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28 activities should that CITY return to the URBAN COUNTY PROGRAM.

5. CDBG program income will be made available to a CITY either upon receipt by the COUNTY, or not later than the subsequent program year.

XV. REAL PROPERTY ACQUIRED OR IMPROVED WITH CDBG FUNDS
A. The following requirements shall continue in effect for five years after the Project is completed in HUD’s Integrated Disbursement and Information System (IDIS):

1. Each participating CITY must obtain prior written approval from the COUNTY before making any modification or change in the use of any real property improved, in whole or in part, using CDBG funds in excess of $25,000.

2. The CITY shall provide affected citizens with notice of, and opportunity to comment on, any proposed change to the use of real property improved with CDBG funds.

3. If any real property improved with CDBG funds is sold and/or is utilized by the CITY for a use which does not qualify under the CDBG requirements, the CITY shall reimburse the COUNTY in an amount equal to the current fair market value for the property, less any proportional share thereof attributable to expenditures of non-CDBG funds.

B. It is therefore understood and agreed that pursuant to the ACT:

1. In the event the CDBG program is closed-out, or there is a change in status of the cooperation agreement between the COUNTY and participating CITY, the requirements of this Section shall remain in effect for activities funded with CDBG funds, unless action is taken by the Federal government to relieve the COUNTY and the participating CITIES of these obligations.

2. If a CITY is required to repay the COUNTY for reasons described in this Section of the Agreement, the COUNTY shall make the repaid funds available to that CITY for eligible CDBG activities in accordance with Federal requirements; provided that the CITY is participating in the URBAN COUNTY PROGRAM at the time of the reimbursement.

XVI. RESIDENTIAL REAL PROPERTY ACQUIRED OR IMPROVED WITH CDBG

OR HOME FUNDS

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28 The following requirements shall continue in effect for the duration of the applicable CDBG or HOME Period of Affordability for properties that were acquired or improved with CDBG or HOME funds:

1. The COUNTY may provide—and shall upon request—each CITY with a list of improved properties in the HOME or CDBG Period of Affordability.

2. Each CITY shall provide the COUNTY, upon the COUNTY’s request, with an annual report of code enforcement reports, if any such reports exist, on assisted or improved properties within the CITY’s jurisdiction.

3. The COUNTY and each CITY may mutually identify an alternative method of sharing information in lieu of the methods described above.

XVII. HOLD HARMLESS
Each party to this Agreement shall indemnify, defend and hold harmless the other parties, their officers, agents, employees and representatives, from any and all loss, liability, costs, expenses and damage to persons or property, and from any and all claims, demands and actions in law or equity (including attorney's fees and legal expenses) arising or alleged to have arisen directly from the wrongful act caused by its respective activities pursuant to this Agreement.

XVIII. ASSIGNMENT OF AGREEMENT
This Agreement shall be binding upon the parties hereto and their successors and assigns.

XIX. SIGNED IN COUNTERPARTS
It is understood that there may be a number of duplicate originals of this Agreement, and the signature of any representative member on any one Agreement shall be deemed applicable to all such duplicated originals. Additionally, this Agreement may be executed in any number of counterparts, each of which shall be deemed an original. The parties agree that the County may assemble together in the original agreement to be provided to the COUNTY’s Board of Supervisors for signature, one original signature page from each city, to form a total original to be signed by the COUNTY’s Board of Supervisors.

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28 XX. ELECTRONIC SIGNATURES
The parties agree that this Agreement may be executed by electronic signature as provided in this section.

A. An “electronic signature” means any symbol or process intended by an individual signing this Agreement to represent their signature, including but not limited to (1) a digital signature; (2) a faxed version of an original handwritten signature; or (3) an electronically scanned and transmitted (for example by PDF document) version of an original handwritten signature.

B. Each electronic signature affixed or attached to this Agreement (1) is deemed equivalent to a valid original handwritten signature of the person signing this Agreement for all purposes, including but not limited to evidentiary proof in any administrative or judicial proceeding, and (2) has the same force and effect as the valid original handwritten signature of that person.

C. The provisions of this section satisfy the requirements of Civil Code section 1633.5, subdivision (b), in the Uniform Electronic Transaction Act (Civil Code, Division 3, Part 2, Title 2.5, beginning with section 1633.1).

D. Each party using a digital signature represents that it has undertaken and satisfied the requirements of Government Code section 16.5, subdivision (a), paragraphs (1) through (5), and agrees that each other party may rely upon that representation.

E. This Agreement is not conditioned upon the parties conducting the transactions under it by electronic means and any party may sign this Agreement with an original handwritten signature.

XXI. AUTHORIZED SIGNATURES
A. Each CITY represents and warrants to the COUNTY that:

1. The CITY is duly authorized and empowered to sign and perform its obligations under this Agreement.

2. The individual signing this Agreement on behalf of the CITY is duly authorized to do so and his or her signature on this Agreement legally binds the CITY to

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28 the terms of this Agreement.

XXII. ENTIRE AGREEMENT
This Agreement, Exhibit A, and Exhibit B constitute the entire agreement between the CITIES and the COUNTY with respect to the subject matter hereof, and supersedes all previous negotiations, proposals, commitments, writings, advertisements, publications, and understandings of any nature whatsoever unless expressly included in this Agreement. ///
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28 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written.

COUNTY OF FRESNO
_________________________________
Garry Bredefeld, Chairman of the
Board of Supervisors of the
County of Fresno
Date: ___________________________
ATTEST:

Bernice E. Seidel
Clerk of the Board of Supervisors
County of Fresno, State of California
By:______________________________
Deputy
FUND NO: 0001
SUBCLASS NO: 10000
ORG NO: 7205
ACCOUNT NO: 7885
SW:JK:___
G:\7205ComDev\~Agendas-Agreements\2026\0714 JPA for CDBG, HOME, ESG\Draft JPA 27-30 - Redline.docx 6/08/2026

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28 I HEREBY CERTIFY that the terms and provisions of this Agreement are fully authorized under the laws of the State of California, all local laws, and that this Agreement provides full legal authority for the COUNTY to undertake, or assist in undertaking, essential community development and housing assistance activities in the cities participating in this Agreement.

DOUGLAS T. SLOAN, COUNTY COUNSEL
By: __________________________
Deputy

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28 JOINT POWERS AGREEMENT
COUNTY OF FRESNO’s URBAN COUNTY PROGRAM for COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS (HOME), and

EMERGENCY SOLUTIONS GRANTS (ESG) ENTITLEMENT FUNDING
FOR JULY 1, 2027, TO JUNE 30, 2043

CITY OF SANGER
By_____________________________
ATTEST:
______________________________
City Clerk, City of Sanger

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EMERGENCY SOLUTIONS GRANTS (ESG) ENTITLEMENT FUNDING
FOR JULY 1, 2027, TO JUNE 30, 2043

CITY OF SANGER
By_____________________________
ATTEST:
______________________________
City Clerk, City of Sanger
APPROVED AS TO LEGAL FORM:
______________________________
City Attorney

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CDBG Funding Distribution

1. DEFINITIONS & METHODOLOGY, ORDERED BY FLOW OF CALCULATIONS a. CDBG Grant from HUD for the Upcoming Program Year: For each Program Year, the CDBG Grant from the U.S. Department of Housing and Urban Development (HUD) for the upcoming program year shall be the most recently released CDBG allocation amount for “Fresno County” for CDBG. The release of the allocation amount generally occurs in the spring preceding the start of the Program Year, but may occur earlier or later.
b. Participating Cities: For each of the three (3) Program Years the participating cities shall include those identified as such on Exhibit A of this Agreement, as may be amended annually. Cities wishing to be included in the URBAN COUNTY PROGRAM for a future Program Year must join prior to the dates referenced in Exhibit A, as the participating cities must be known prior to the HUD announcement of funding allocations that occur (usually) in the spring prior to the start of the Program Year.
c. Non-Participating Cities: Non-Participating Cities shall include those identified as such on Exhibit A of this Agreement. Their data will be included for illustrative purposes but their metrics shall not be included in any percentages used to calculate the Program Year Allocations. The NonParticipating Cities contribution to Formula Percentage shall be 0.00%. d. Unincorporated Areas: The Unincorporated Areas of the County of Fresno shall consist of metrics for the County of Fresno, less the metrics for the Participating Cities listed on Exhibit A, less the metrics for the Non-Participating Cities listed on Exhibit A. e. Most Recently Available Dataset: Shall mean the official dataset most recently released and available on Census.gov. The date data was retrieved for calculations along with the year of the dataset shall be provided with all calculated tables used to announce Program Year Allocations.

It is anticipated Program Year 2024-25 will use the 2022 dataset released in December 2023. f. Population: The data used to identify the county/city population shall be based on the most recently available dataset comprised of the U.S. Census’ American Community Survey (ACS), 5- Year Estimates Detailed Tables, “Total Population” (referenced quickly as B01003) for the Total Estimate values.
g. % of Population: The formula to obtain the % of Population is as follows:

Population
of Participating City or Unincorporated Areas
Sum of All Populations
of Participating Cities & Unincorporated Areas

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Page 2 of 3 ends

h. People in Poverty: The data used to identify the number of county/city people living in poverty shall be based on the most recently available dataset comprised of the U.S. Census’ American Community Survey (ACS), 5-Year Estimates Detailed Tables, “Poverty Status in the Past 12 Months by Age” (referenced quickly as B17020) for the Income in the past 12 months below poverty level values.
i. % of People in Poverty: The formula to obtain the % of People in Poverty is as follows:

People in Poverty
in Participating City or Unincorporated Areas
Sum of All People in Poverty
in Participating Cities & Unincorporated Areas
j. Overcrowded Units: The data used to identify the number of housing units in the county/city that are overcrowded shall be based on the most recently available dataset comprised of the U.S. Census’ American Community Survey (ACS), 5-Year Estimates Detailed Tables, “Tenure by Occupants per Room” (referenced quickly as B25014) Total Estimate values less each of the four (4) following metrics:
i. Owner occupied 0.50 or less occupants per room,
ii. Owner occupied 0.51 to 1.00 occupants per room,
iii. Renter occupied 0.50 or less occupants per room,
iv. Renter occupied 0.51 to 1.00 occupants per room.
k. % of Overcrowded Units: The formula to obtain the % of Overcrowded Units is as follows:

Overcrowded Units
in Participating City or Unincorporated Areas
Sum of All Overcrowded Units
in Participating Cities & Unincorporated Areas
l. CDBG Formula %: The formula to obtain the percentage utilizes the HUD “Formula A” methodology and places double weight on % of People in Poverty. The methodology to average the percentages is consistent with guidance published by HUD in 2005 and is a deliberate balancing of the three key metrics driving the CDBG allocation. The resulting ratio shall be rounded to four (4) decimal points when expressed as a decimal (whole number with two (2) decimal places if expressed as a percentage). For any given Participating City or the Unincorporated Areas the CDBG Formula % shall be:
% of Population +
% of People in Poverty +
% of People in Poverty +
% of Overcrowded Units
4

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Page 3 of 3 ends

m. Set-Aside for Program Administration: The set-aside for program administration shall not exceed 20% of the CDBG Grant from HUD for the Upcoming Program Year. This funding is used as a program administration budget by the County’s Department of Public Works and Planning’s Community Development Division to support the costs of CDBG activities for the URBAN COUNTY PROGRAM as well as HOME-funded activities.
n. Public & Social Services Programs: These funds, if any, shall be used to support CDBG-eligible public and social services activities consistent with the most recently completed Consolidated Plan or Action Plan. The maximum amount shall not exceed 15% of the CDBG Grant from HUD for the Upcoming Program Year and will be funded solely with the Unincorporated Area’s allocation. Public & Social Services Programs will be developed by the Community Development Division, vetted through the County’s Citizen Participation Plan, and if involving reimbursement of funds to a non-County entity, approved and authorized by the County’s Board of Supervisors.

By written mutual agreement, the Department of Public Works and Planning may transfer planning and administration of these funds to a more appropriate County Department. o. CDBG to Allocate to Cities and Unincorporated Areas: The formula to obtain the amount of CDBG to allocate to cities and Unincorporated Areas shall be:

CDBG Grant from HUD for the Upcoming Program Year –
Set-Aside for Program Administration
p. Program Year Allocations: The Program Year Allocations for each City and the Unincorporated Areas shall be determined by:

CDBG to Allocate to Cities and Unincorporated Areas x
CDBG Formula %
The resulting numbers shall be truncated to the nearest whole dollar. If the sum of the Program Year Allocations does not add to the CDBG Grant from HUD for the Upcoming Program Year exactly, the variance (expected to be less than a thousand dollars) shall be eliminated by modifying the funding for the Unincorporated Areas.

The Program Year Allocation does not include any CDBG Program Income accrued, nor admin for Program Income, nor any borrowed/loaned CDBG amounts.

Actual amounts available to participating cities for projects will be the Program Year Allocation combined with city-specific CDBG Program Income, adjusted for borrowed/loaned amounts and admin costs.

The County’s Department of Public Works and Planning’s Community Development Division shall maintain records to support available amounts in accordance with the Terms of this Agreement.

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For the Meeting of: August 6, 2026
Agenda Item No.: F.3.

City of Sanger
Report to the City Council
To: City Council
From: Shaffer Fluetsch, Management Analyst
Subject: Purchase of RC Mowers R-52
Recommendations: That council approve the purchase of one (1) RC Mowers R-52 remote-operated slope mower; and authorize the City Manager to sign the purchase documents on behalf of the City.

Conflict of Interest:

None known.

Recommendation:

Staff recommends that the City Council:

1. Approve the purchase of one (1) RC Mowers R-52 remote-operated slope mower; and Authorize the City Manager to sign the purchase documents on behalf of the City.

Executive Summary/Background:

Staff requests that the City Council approve the purchase of the RC Mowers R-52 mower from Cal-Line. The purchase of an RC Mowers R-52 mower is a strategic investment that will be utilized to enhance operational efficiency among the different divisions in Public Works. Having a more modern and capable mower that can maneuver through difficult and hard-to-reach terrain will greatly improve efficiency and safety.

Staff researched this model via spec sheets, videos, and having the vendor, Cal-Line, come out to provide an onsite demo to all staff who could attend. Upon viewing the demo and allowing our staff to use the remote to guide the mower, it was evident that it is simple to operate and easy to maintain. After engaging with Cal-Line and the positive feedback we received from staff, it is recommended that the R-52 model has the best value for the City and our team.

The remote-operated robotic mower will mainly be used to maintain hillsides, steep-incline areas, and a number of city-owned property, storm and water recharge basins, and wastewater treatment ponds. It will be able to move up and down steep areas that current equipment, such as our tractor, cannot safely maneuver through. In these steep areas, we've employed a group of employees to use mowing edgers to cut down the vegetation. This takes a considerable amount of time and manual effort when operating in this manner. This mower will be able to get to areas

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that are dangerous and labor-intensive for staff to do manually. It removes the risk of human injury while being able to knock down large brush and weeds. Being able to save time utilizing this mower will be cost-effective and free up staff to move onto other jobs; it can essentially achieve the output of a full crew at a fraction of the labor. Another benefit of procuring this machine is that it will aid in fire prevention as it cuts down dense and dry foliage.

The RC Mowers R-52 has the ability to climb on a 50 degree slope utilizing the heavy-duty tracks and low center-of-gravity. It has the ability remote connect from 1000 ft, allowing staff to stand in safer areas and possibly with less exposure to the elements. It can cut brush that is up to

1.5 inches in diameter and comes with a remote control tilt/drop auto-shutdown so that when it detects movement or falls, it will automatically shut off to prevent accidents. It has an intuitive joystick control that allows it to move forward, reverse, and spin. It comes with an integrated camera system to allow the operator to have real-time visibility for safer and smarter navigation.

There is also a remote emergency stop which will instantly shut down the mower from the controller. A full training will be provided by the consultant upon delivery.

Staff obtained the pricing utilizing Sourcewell purchasing and is based upon the Cooperative Purchasing Agreement – Contract #112624-EMB. Sanger City Code Section 2-207 (a) the purchase of supplies, equipment or services through cooperative agreements. Cooperative purchasing is “Procurement conducted by, or on behalf of, one or more Public Procurement Units” as defined by the American Bar Association Model Procurement Code for State and Local Governments. Sourcewell's analysts streamline the procurement process by developing RFPs and IFBs for national, competitive solicitations that meet or exceed local requirements. Sourcewell’s cooperative contract purchasing leverages the national purchasing power of more than 50,000 government and education agencies while also streamlining the required purchasing process.

There is no negotiating the prices with the vendors as Sourcewell has already established pricing through a thorough RFP process.

Reason for Recommendation:

Currently, the city is relying on a tractor that can't fully reach all the areas that need mowing and a team of employees to manually cut down the rest. By investing in a remote-operated robotic mower, we can have increased efficiency in operations which will result in a much more costeffective approach.

Fiscal Impact:

The cost for the mower is $80,099.82. The FY 2026-2027 budget has existing appropriations in the Water (611-070-401-7230) and Wastewater (621-070-401-7230) to be split evenly for the purchase of the mower.

Alternatives:

Do not approve the purchase. Staff will continue to manually cut down grass in difficult conditions requiring more time and effort to complete the job.

Actions Following Approval:

Once approved, the City Manager will fully execute the purchase order on behalf of the city. The

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expected time of delivery for the RC-52 mower will be within 3 business days of purchase order receipt.

Attachments:

1. ATT 1 Memo Co-operative Cal-Lines 2026.7.13 RC Mowers R52 mower

2. ATT 2 RC Mowers R-52 Mower quote

3. ATT 3 RC Mower R-52 Spec-Sheet

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MEMORANDUM

PUBLIC WORKS DEPARTMENT
ESPERANZA ROSALES – PUBLIC WORKS DIRECTOR
Date: July 13, 2026
To: Esperanza Rosales, Public Works Director
From: Shaffer Fluetsch, Public Works Management Analyst Subject: Co-operative agreement through Cal-Line Equipment for purchase of RC Mowers R-52 remote-operated robotic mower
Please let this memo serve as justification for utilizing pricing from Sourcewell, Contract #112624-EMB ( https://files.sourcewell.org/public/Shared%20Documents/Solicitations/11065/00007177/Contract%20Document s/Embankscape%20Contract%20112624.pdf) for the City of Sanger to purchase the RC Mowers R-52 remoteoperated robotic mower from Cal-Line.

Sourcewell provides the City (Sourcewell Account #125304) the opportunity to purchase off of nationally, competitively solicited contracts. The FY 2026/27 budget currently has funds appropriated for the purchase of these items to be split evenly between the Water and Wastewater divisions’ machinery and budget accounts.

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Date Customer Number
YOU ARE AUTHORIZED TO ENTER THE ORDER OF AND CAUSE TO BE SHIPPED, WITH WARRANTY OF:

INVOICE TO SHIP TO ADDRESS

CITY, STATE ZIP

CITY, STATE ZIP PHONE FAX
PURCHASE ORDER NO. SHIP DATE F.O.B. VIA

QTY PRICE EXTENSION
$87,399.92
($19,227.98)
$3,500.00
$2,000.00
SUBTOTAL $73,671.94
FIRST
YEAR
USED

MAKE MODEL TRADE

ALLOWANCE
73,671.94

8.725% 6,427.88
80,099.82

11. 12.

13. 14. BALANCE DUE 80,099.82
per Terms & Conditions detailed below and on next page
Resale Number

SALESPERSON PURCHASER

ACCEPTED BY BY

MANAGER'S

SIGNATURE

SALES QUOTE
5/14/2026
City of Sanger
Sourcewell Contract Discount 112624-EMB
RC Mowers R-52 Remote Operated Slope Mower

THE FOLLOWING DESCRIBED EQUIPMENT

4. CASH PRICE

7. CASH DOWN PAYMENT

8. TRADE ALLOWANCE
37hp Vanguard Engine
Winch, Light Kit
PDI Dealer Prep and Delivery

TRADE-IN EQUIPMENT

SERIAL NUMBER
Freight

2. LESS AMOUNT OWED TO:

5. SALES TAX @

3. NET TRADE ALLOWANCE

10. TOTAL DOWN PAYMENTS

1. TRADE ALLOWANCE

OTHER CHARGES/FEES

6. TOTAL COST
ADDITIONAL TERMS AND CONDITIONS (see details on next page) NEW 90 DAYS 50-50 AS IS
Purchaser hereby bargains, sells and conveys unto Seller the above described trade-in equipment and warrants and certifies it to be free and clear of liens, encumbrance, and security interests except to the extent shown below.

Exemption Certificate
Attached

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THE ULTIMATE BUSINESS MODEL

R SERIES FOR REDUCED LABOR, MORE REVENUE & IMPROVED SAFETY 1000ft

FUEL BOOST FOR

CONTINUOUS FUEL

FLOW ON SLOPE
52in

CUTTING WIDTH

4.0 MPH MOWING SPEED

REMOTE CONTROL

TILT/DROP

AUTO-SHUTDOWN

CUTS BRUSH UP
TO 1.5 INCHES IN

DIAMETER

LIGHT-WEIGHT AND

LOW GROUND

K E Y F E AT U R E S
PRESSURE (2.2 PSI)

REMOTE CONNECTIVITY
UP TO
R-52
50 SLOPE CLIMB:

DEGREES
ENGINEERED FOR:
ï Hillside & steep-incline maintenance
ï Wetland & swamp preservation
ï Retention or water treatment ponds
ï Dam & levee embankments
ï Landfill slope preservation
ï Roadside mowing
ï Right-of-way & pipeline reclamation
ï Fire fuels reduction
37 HORSEPOWER

EFI ENGINE

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MOWER SPECIFICATIONS
RCMOWERSUSA.COM

POWERTRAIN
ï Vanguard® Commercial Big Block™ Engine
ï Vanguard®
Oil Guard™ System (500-hour
oil change interval)
ï Heavy-Duty Air Cleaner
ï 37 hp - EFI/ETC
ï 993cc Engine Displacement
ï Hydro-Gear® ZT-4400 HSA
ï 12 Gallon Fuel Capacity
TRACKS
ï Rubber Molded Over Steel Links
ï Steel Cords
ï 9" Wide (230mm x 72mm x 44mm)
ï Tread Style ‘J’

PERFORMANCE
ï 5 mph Transport Speed
ï 4 mph Mowing Speed
ï 50 Degree Slope Climb Ability

MOWING DECK
ï Fabricated 7 ga. Steel
ï 3/8" Thick Deck Across Spindles
ï Cast Iron Spindle
ï 52" Cutting Width
ï 2.0" to 6.5" Cutting Heights

WARRANTY
ï 2 Years or 400 Hours
R-52

WORK OUTSIDE THE LINES
The world is not flat. There’s a great deal of extreme terrain that must be maintained and we have the means to get it done. Our American-built, R Series Remote-Operated Robotic Mowers will redefine how you do the business of mowing. These machines are designed to significantly reduce your labor needs, dramatically increase your ability to add revenue from specialty work, and most importantly, this technology keeps your people incredibly safe. Developed by experts in robotics, aviation, military, and landscaping—and supported by the RC Mowers Success System™ —the R Series is the tool to help you succeed outside the lines. 1,790lbs
90in
74in

49.5in

D I M E N S I O N S

WEIGHTLENGTHWIDTHHEIGHT
M119 Rev B

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For the Meeting of: August 6, 2026
Agenda Item No.: F.4.

City of Sanger
Report to the City Council
To: City Council
From: Shaffer Fluetsch, Management Analyst
Subject: Purchase of Two Work Vehicles for Public Works Department Recommendation: That City Council authorizes the City Purchasing Agent to purchase two (2) new work trucks for the Public Works Department not to exceed $130,000 for the total purchase.

Conflict of Interest:

None known.

Recommendation:

Staff recommends that City Council authorizes the City Purchasing Agent to purchase two (2) new work trucks for the Public Works Department not to exceed $130,000 for the total purchase.

Executive Summary/Background:

Staff requests that the City Council approve the purchase of one (1) new three-quarter ton utility truck for the Water Division and one (1) new three-quarter ton truck for the Landscape and Lighting Maintenance District 2. The Public Works Department relies heavily on the availability of its vehicles in order for staff to perform their various duties to maintain the departments operations. Currently, the Water Division has a 2005 truck that is bound for surplus due to constant maintenance issues, while the LLMD2 crew is using a 1998 truck with maintenance issues that has been approved for surplus as it awaits the purchase of a new truck.

The utility truck for the Water Division will be used for a variety of applications, such as storing tools in a more organized and secure manner, hauling equipment and parts to job sites, and having the ability to tow trailers and equipment. The versatility of this truck makes it an essential asset to the department and will enable the division's fleet to be more diversified as well.

The crew cab truck that will be utilized by the Landscape and Lighting Maintenance 2 staff will allow the crew to all ride together from one job site to the next, enabling them to be transported in a vehicle that comfortably fits four personnel. It will be used to store tools in the bed as needed and will also have the capability to tow trailers and equipment.

This will all result in increased efficiency within the Public Works Department, savings on costly maintenance, and a boost in staff morale knowing they have vehicles that will reliably perform.

These trucks will greatly enhance the capabilities of each division within the department and will

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provide a valuable service to the community for many years to come.

Reason for Recommendation:

Currently, the Water Division is relying on a 2005 vehicle that is aged and has reached a point where the costs to repair are no longer justified.

The LLMD2 truck that is being used is a 1998 work truck and is a Ford 150 regular cab which limits the number of staff who can travel in the vehicle, together along with its towing capacity.

By investing in these new trucks, we will lower overall maintenance costs, provide safer driver conditions for staff, and strengthen and modernize each division's fleet.

Fiscal Impact:

The FY 2026-2027 budget has existing appropriations not to exceed $70,000 in the Water Division for account #611-070-401-7225 for the purchase of a three-quarter ton utility truck.

The FY 2026-2027 budget also has existing appropriations not to exceed $60,000 in LLMD2 for acct #244-070-101-7225 for the purchase of a three-quarter ton truck.

Alternatives:

Do not approve the purchase. Staff will continue to use outdated trucks that are in constant need of maintenance.

Actions Following Approval:

Continue the procurement process according to the City's purchasing policy.

Attachments:

1. ATT 1.1 Quote Comparison 2026.7.20 2500 single cab utility truck

2. ATT 1.2 Sanger Chevrolet 2026.7.17 quote

3. ATT 1.3 Steves Chevrolet of Chowchilla 2026.7.18 quote

4. ATT 1.4 Stone Chevrolet Buick GMC 2026.7.15 quote

5. ATT 2.1 Quote Comparison 2026.7.23 2500 Crew cab with V8 engine

6. ATT 2.2 Sanger Chevrolet 2026.7.17 quote

7. ATT 2.3 National Auto Fleet Group 2026.7.14 (2027 Ford F250 crew cab)

8. ATT 2.4 Hedrick's Chevrolet 2026.7.23 quote

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7/28/2026
City of Sanger
Quote Comparison
Quote #1 Quote #2 Quote #3
Contractor Name: Sanger Chevrolet Steves Chevrolet Stone Chevrolet Buick Address: 1028 Academy 1 Auto Park Pl 2100 E Tulare Ave
City, St, Zip: Sanger, CA 93657 Chowchilla, CA 93610 Tulare, CA 93274 Phone: 559-628-1737 559-665-3701 559-605-6095
Item Description Quote #1 Quote #2 Quote #3
2500 single cab utility truck $ 65,468.88 $ 68,750.00 $ 66,055.77 Sub Total $ 65,468.88 $ 68,750.00 $ 66,055.77
Options
Sub Total of Options
GRAND TOTAL $ 65,468.88 $ 68,750.00 $ 66,055.77
Quote Date
Lead Time
Approximate Start Date
Approximate Completion Date
Quote Valid until
NOTES:

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7/28/2026
City of Sanger
Quote Comparison
Quote #2 Quote #3
Contractor Name: National Auto Fleet Hedrick's Chevrolet Address: 490 Auto Center Dr 961 W Shaw Ave
City, St, Zip: Watsonville, CA 95076 Clovis, CA 93612
Phone:

Quote #1
Sanger Chevrolet
1028 Academy Ave
Sanger, CA 93618
559-875-2578 855-289-6572 559-515-4011
Item Description Quote #1 Quote #2 Quote #3
Chevrolet 2500 crew cab truck $ 59,549.89 $ 59,047.43 $ 60,000.00 Sub Total $ 59,549.89 $ 59,047.43 $ 60,000.00
Options
Sub Total of Options
GRAND TOTAL $ 59,549.89 $ 59,047.43 $ 60,000.00
Quote Date 7/17/2026 7/14/2026 7/23/2026
Lead Time 3 weeks 10-12 weeks None
Approximate Start Date
Approximate Completion Date
Quote Valid until
NOTES:

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For the Meeting of: August 6, 2026
Agenda Item No.: F.5.

City of Sanger
Report to the City Council
To: City Council
From: John Reynolds, Chief of Police
Subject: Purchase of Unmanned Aerial Systems (Drones)
Recommendation: That the City Council review and approve the use of Measure S and successor Measure R funds for the proposed technology initiative, as approved by the Citizens Oversight Committee on July 7, 2026, and authorize a sole source purchase with Pacific General, Inc. for the acquisition of unmanned aircraft systems (drones). (Resolution 2026-67) Conflict of Interest:

None
Recommendation:

That the City Council:

1. Review and approve the use of Measure S and successor Measure R funds for the proposed technology initiative, as approved by the Citizens Oversight Committee on July 7, 2026.

2. Approve a sole source purchase with Pacific General, Inc. for the acquisition of unmanned aircraft systems (drones).

Executive Summary/Background:

The Sanger Police Department is requesting approval to purchase three additional drones using Measure R funds to enhance officer safety, operational effectiveness, and community protection.

The proposed purchase includes two DJI Avata 2 indoor drones and one DJI Matrice 4T drone with thermal imaging capabilities. These systems will allow officers to safely clear structures, search large outdoor areas, locate missing persons, and provide aerial overwatch during tactical operations. The total cost of the proposed purchase will not exceed $18,000. • Two (2) DJI Avata 2 indoor drones These compact, maneuverable drones are designed for indoor tactical operations. They will allow officers to remotely clear and check the interior of buildings for potential threats prior to entry, significantly reducing the risk of injury to officers. • One (1) DJI Matrice 4T drone The Matrice 4T is equipped with thermal imaging capabilities, allowing officers to detect heat signatures during both day and night operations.

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This drone will be used to search large outdoor areas for missing persons, outstanding suspects, and evidence, as well as to provide overwatch during tactical operations.

Reason for Recommendation:

A recommendation of approval of this request will:
• Enhance officer safety by reducing the need for officers to physically enter unknown or high-risk environments.
• Improve the Department’s ability to locate missing persons, suspects, and evidence efficiently.
• Provide cost-effective technology that increases the likelihood of resolving incidents without the use of force.
• Maintain compliance with AB 481 and previously approved City policies.

Fiscal Impact:

The total fiscal impact of the proposed purchase is not to exceed $18,000. Funding for the purchase was approved with the 2026-2027 adopted budget for Public Safety Measure S/Measure R funds. No ongoing staffing costs are associated with this purchase.

SOLE SOURCE JUSTIFICATION (Sec. 2-208)
Unique or Specialized Features

1. DJI is the manufacturer of the Avata 2 and Matrice 4T drones, which provide the specific capabilities required for public safety operations including:

Indoor tactical flight and confined-space maneuverability • Stabilized flight with obstacle avoidance for building clearing • Integrated thermal imaging and advanced camera sensors for search and rescue • Proven reliability and interoperability with existing department equipment These capabilities are essential for officer safety and operational effectiveness and are not available in comparable products.

2. Efforts to Locate Other Suppliers
The Department evaluated other drone manufacturers and distributors commonly used in public safety settings. No alternative vendor offers an indoor micro-drone with equivalent maneuverability or an outdoor drone with comparable thermal imaging and sensor quality.

Additionally, agencies throughout the region confirmed that comparable alternatives do not meet public safety mission requirements.

3. Sole Source Availability
General Pacific, Inc. is the sole-authorized public safety distributor for DJI drones in this region and is the only vendor that can provide the required models—DJI Avata 2 and DJI Matrice 4T— along with the accessories, support, and warranty services specific to law enforcement agencies.

DJI products needed for public safety cannot be procured through other distributors or retail vendors with the same level of service, compliance, or authorized support. General Pacific, Inc. also serves as the primary provider of public safety drones for local allied law enforcement agencies and maintains a reputation for exceptional customer service and reliability.

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4. Cost and Determination Process
Pricing from General Pacific, Inc. was evaluated for multi-unit acquisition, lifecycle costs, accessories, and support. The total cost of the proposed purchase will not exceed $18,000, which is consistent with industry pricing for equivalent drone platforms. Because General Pacific, Inc. is the exclusive distributor for these models, competitive bidding would not yield an equivalent product or provide access to authorized support channels.

5. Justification for Sole-Source Exception
Due to the proprietary nature of DJI’s technology and the exclusive distributor status of General Pacific, Inc., competitive bidding is impracticable. The specific combination of indoor tactical capabilities, thermal imaging, and public-safety-grade performance is only obtainable through this sole source. A sole-source procurement is therefore justified and appropriate under Sec. 2-208.

6. Disclosure Statement
The Chief of Police, Fire Chief, and all personnel involved in reviewing and recommending this procurement affirm that no conflicts of interest exist. All findings comply with applicable procurement policies and ethical standards.

Alternatives:

Determine that the purchase of the drones is not an authorized expenditure from the Public Safety Sales Tax.

Actions Following Approval:

Upon Council approval, the Police Department, through the City Manager, will:
• Execute the purchase agreement with Pacific General, Inc., including any related documents.

Attachments:

1. Sanger PD M4T & Avata 2

2. RESO_2026-67_Drones_V-2

Page 71 of 401 ends

Sanger Police Department
1700 7th St
Sanger, CA 93657
Jason Boust
[email protected]
Reference: 20251231-122228262
Quote created: December 31, 2025
Quote expires: July 31, 2026
Quote created by: Todd Young
[email protected]
+13606073817
Hello Jason,
Thank you for choosing Gen Pac as your drone provider.

Tax-exempt organizations may remain exempt with a valid exemption certificate filed with GenPac Products & Services
Item & Description Part Number Quantity Unit Price Total DJI Matrice 4 Thermal Combo DJI MATRICE
4 THERMAL
1 $7,799.00 $7,799.00
DJI Matrice 4 Series Battery DJI MATRICE
4 BATTERY
3 $230.00 $690.00
MFR SKU: CB.202412112657
(1) DJI Matrice 4T Aircraft (Includes microSD card)
(1) Remote Controller (Excludes WB37 battery and RC strap / bracket)
(1) Battery
(3) Propeller Pair
(1) Charger (With power cable)
(1) Charging Hub
(2) Power Cable (USB-C to USB-A cable, USB-C to USB-C cable) (1) Carrying Case (Safety case and shoulder strap)
(1) Pry Bar (Open 4G dongle compartment)
(1) Manuals (Quick start guide, Safety guideline)
MFR SKU: CP.EN.00000559.02
Intelligent Flight Battery for Matrice 4 Series

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Item & Description Part Number Quantity Unit Price Total DJI WB37 Intelligent Battery DJI WB37

INTELLIGENT

BATTERY
1 $80.00 $80.00
DJI AL1 Spotlight DJI AL1

SPOTLIGHT

FOR MATRICE
4 1 $439.00 $439.00
DJI AS1 Speaker DJI AS1

SPEAKER
1 $299.00 $299.00
DJI Avata 2 Fly More Combo (Three Batteries) DJI AVATA 2

FLY MORE
COMBO 3

BATTERY
2 $1,199.00 $2,398.00
DJI Avata 2 Intelligent Flight Battery DJI AVATA 2

BATTERY
2 $159.00 $318.00
DJI Avata 2 Taclight Kit - GenPac GPD AVATA 2

TACLIGHT KIT
- GENPAC
2 $165.00 $330.00
DJI FPV Remote 3 DJI FPV
REMOTE 3
2 $219.00 $438.00
Anker 65w Charging Block (USB Cx2 USB Ax1) GPD 65W 3-

PORT USB

CHARGER
2 $50.00 $100.00
MFR SKU: CP.BX.000229.02
DJI RC Plus, DJI RC and Crystal Sky additional battery
MFR SKU: CP.EN.00000579.01
Spotlight Attachment for Matrice 4 Series
MFR SKU: CP.EN.00000578.01
Speaker Attachment for Matrice 4 Series
MFR SKU: CP.FP.00000151.05
DJI Avata 2, Goggles 3, RC Motion 3, Avata 2 Intelligent flight bat‐ tery x 3, Avata 2 Two-Way charging hub, Sling bag, Avata 2 Propellers (pair) x 4, Avata 2 propeller screw x 16, Avata 2 Gimbal protector, Goggles 3 foam padding, Goggles 3 additional forehead pad, Goggles 3 -2.0 D corrective lenses (pair) x 2, USB-C OTG ca‐ ble, Type-C to Type-C PD cable, lanyard, screwdriver
MFR SKU: CP.FP.00000152.01 MFR SKU: GPD AVATA 2 TACLIGHT KIT - GENPAC 4-Light Tactical Lighting Kit for Avata 2 w/ FoxFury D3060 Lights MFR SKU: CP.RC.00000024.01
Handheld Remote Controller for use with Avata 2

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Item & Description Part Number Quantity Unit Price Total GPC DJI Avata 2 Hard Case GPC DJIAVATA22 $240.00 $480.00 Firehouse Tactical Command Case - 21.5" 1500 NIT
Screen
*GPD

FIREHOUSE

TACTICAL

COMMAND
CASE 21.5"
1 $1,849.00 $1,849.00
GenPac Product Training GPD

PRODUCT

TRAINING
1 $0.00 $0.00
GenPac Pre-Shipment Care *GPD
GENPAC
CARE
1 $0.00 $0.00
MFR SKU: GPC-DJI-AVATA2
Fits:
1 DJI Avata2
1 Goggles 3, Integra or Goggles 2
1 DJI Controller
1 Motion 3 Controller or Motion Controller 2 (under drone) 4 Avata Intelligent Flight Batteries (4 including 1 installed) 1 Avata Charging Hub (3 of the batteries above installed) 1 GPC LensPen MicroPro (Sold Seperately)
1 GPC Micro SD Card holder ( Sold Separately)
4 Spare Props (under drone)
2 Accesory Cavities
1 ND filter case of various manufacturers
1- Tactical Operations FPV Case with 21.5" 1500 NIT Daylight Readable Screen (24" Wheeled hard case with handle)
1- Wireless Streaming HDMI module supports IOS, Android, Crystal Sky and Smart Controllers
1- Dual HDMI Switch Box- Allows multiple aircraft to be connected 1- 15' HDMI Cable
1- 200 Mwh Power Supply and Wall Charger (runs screen 4-6 hours)
Foam Insert Options: Mavic/Mini, Avata, or Generic Open Storage.

Training for customers with new equipment. Includes (but not lim‐ ited to) setup, operations, charging, settings, etc.)
GenPac's manufacturer trained technicians will perform all manu‐ facturer recommended firmware updates prior to shipping/delivery.

Includes charging all flight batteries and controllers. This process usually takes several hours before you can fly. We will also install any accessories you have purchased such as dual gimbals or any accessory mounts. This ensures your UAS system is ready to go when it arrives to you.

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Item & Description Part Number Quantity Unit Price Total GenPac Customer Assistance Program *GPD

CUSTOMER

ASSISTANCE
1 $0.00 $0.00
One-time subtotal $15,220.00
Tax estimation $1,327.95

8.725%
Total $16,547.95
Questions? Contact me
Todd Young
[email protected]
+13606073817
General Pacific
22414 NE Townsend Way
Fairview, OR 97024
United States
• We offer 24/7 support for all products we sell. No matter what you need, you can feel comfortable reaching out to ask questions. If we are unable to offer a solution, we will do our best to reach out to DJI or any other manufacturer directly to solve the issue in a timely fashion.

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RESOLUTION NO. 2026-67

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER APPROVING A SOLE SOURCE PURCHASE AGREEMENT WITH GENERAL PACIFIC, INC. FOR

THE ACQUISITION OF UNMANNED AIRCRAFT SYSTEMS FOR THE POLICE DEPARTMENT; AUTHORIZING THE USE OF MEASURE S AND SUCCESSOR MEASURE R FUNDS; APPROVING NECESSARY BUDGET MODIFICATIONS; AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND

RELATED DOCUMENTS
WHEREAS, the Sanger Police Department seeks to enhance officer safety, operational effectiveness, and community protection through the deployment of additional unmanned aerial systems (UAS); and
WHEREAS, the Department proposes to purchase two DJI Avata 2 drones for indoor tactical operations and one DJI Matrice 4T drone equipped with thermal imaging capabilities for outdoor searches, evidence recovery, and tactical overwatch; and WHEREAS, these drones will expand the Department’s ability to safely clear structures, locate missing persons, search large outdoor areas, and manage high-risk incidents with reduced need for physical entry by officers; and
WHEREAS, the Citizen Oversight Committee for Measure S and successor Measure R reviewed the proposed expenditure on July 7, 2026, determined it to be an authorized use of Public Safety Sales Tax funds, and recommended approval to the City Council; and
WHEREAS, pursuant to Sanger Municipal Code Section 2-208, sole source procurement is permitted when only one source exists for a product or service; and WHEREAS, DJI is the manufacturer of the Avata 2 and Matrice 4T drones, which provide unique and specialized features essential for officer safety and operational effectiveness, including indoor tactical flight, confined-space maneuverability, obstacle avoidance, advanced thermal imaging, and interoperability with existing department equipment; and
WHEREAS, the Chief of Police and Department staff evaluated other drone manufacturers and distributors commonly used in public safety settings and determined that no alternative vendor offers indoor micro-drones or thermal-equipped outdoor drones with equivalent capabilities; and
WHEREAS, General Pacific, Inc. is the sole authorized public-safety distributor for DJI drones in this region and is the only vendor able to provide the necessary models along with required accessories, technical support, and warranty services; and

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WHEREAS, the total cost of the proposed purchase will not exceed $18,000.00, WHEREAS, due to the proprietary nature of DJI’s technology and the exclusive distributor status of General Pacific, Inc., competitive bidding is impracticable, thereby justifying a sole-source procurement pursuant to Sec. 2-208; and WHEREAS, the Chief of Police, Fire Chief, and all personnel involved affirm that no conflicts of interest exist and that all findings comply with procurement policies and ethical standards; and
WHEREAS, funding for the proposed purchase is available in the adopted FY 2026- 2027 Public Safety Measure S and successor Measure R budgets; and WHEREAS, the authorization for this acquisition complies with the City’s Military Equipment Use Policy;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sanger as follows:

1. The City Council approves a sole source purchase agreement with General Pacific, Inc. for the acquisition of three unmanned aircraft systems (drones) for the Police Department.

2. The City Council authorizes the use of Measure S and successor Measure R funds for the purchase.

3. The City Council authorizes the Police Department through City Manager to execute the purchase agreement and any related documents on behalf of the City.

4. Pursuant to Municipal Code 2-2.08, the City Council hereby makes the following statements and findings regarding the proposed purchase of unmanned aerial systems (drones) from Pacific General, Inc.:
a. Unique or Specialized Features:

DJI is the manufacturer of the Avata 2 and Matrice 4T drones, which provide the specific capabilities required for public safety operations including:

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These capabilities are essential for officer safety and operational effectiveness and are not available in comparable products. b. Efforts to Locate Other Suppliers
The Department evaluated other drone manufacturers and
distributors commonly used in public safety settings. No alternative vendor offers an indoor micro-drone with equivalent
maneuverability or an outdoor drone with comparable thermal imaging and sensor quality. Additionally, agencies throughout the region confirmed that comparable alternatives do not meet public safety mission requirements.
c. Sole Source Availability
General Pacific, Inc. is the sole-authorized public safety distributor for DJI drones in this region and is the only vendor that can provide the required models—DJI Avata 2 and DJI Matrice 4T—along with the accessories, support, and warranty services specific to law enforcement agencies. DJI products needed for public safety cannot be procured through other distributors or retail vendors with the same level of service, compliance, or authorized support.

General Pacific, Inc. also serves as the primary provider of public safety drones for local allied law enforcement agencies and maintains a reputation for exceptional customer service and reliability.
d. Cost and Determination Process
Pricing from General Pacific, Inc. was evaluated for multi-unit acquisition, lifecycle costs, accessories, and support. The total cost of the proposed purchase will not exceed $18,000, which is consistent with industry pricing for equivalent drone platforms.

Because General Pacific, Inc. is the exclusive distributor for these models, competitive bidding would not yield an equivalent product or provide access to authorized support channels.
e. Justification for Sole-Source Exception
Due to the proprietary nature of DJI’s technology and the exclusive distributor status of General Pacific, Inc., competitive bidding is impracticable. The specific combination of indoor tactical capabilities, thermal imaging, and public-safety-grade performance is only obtainable through this sole source. A sole-source procurement is therefore justified and appropriate under Sec. 2-208.

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f. Disclosure Statement
The Chief of Police, Fire Chief, and all personnel involved in reviewing and recommending this procurement affirm that no conflicts of interest exist. All findings comply with applicable procurement policies and ethical standards.

The foregoing resolution was considered by the City Council of the City of Sanger at a regular meeting held on the 6th day of August 2026, and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
__________________________________
Lina Martinez
City Clerk

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For the Meeting of: August 6, 2026
Agenda Item No.: F.6.

City of Sanger
Report to the City Council
To: City Council
From: Josh Rogers, City Engineer
Subject: Contract Award - 2026 Street Sealing Project
Recommendation: That the City Council:

2. Approve a construction contingency for change orders in the amount of $59,000 (10%) for this project; and

3. Authorize the City Manager to sign contract documents on behalf of the City.

Conflict of Interest:

None known.

Recommendation:

Staff recommends that the City Council:

2. Approve a construction contingency for change orders in the amount of $59,000 (10%) for this project; and

3. Authorize the City Manager to sign contract documents on behalf of the City.

Executive Summary/Background:

The 2026 Street Sealing Project is a roadway preventative maintenance project which is proposed in conformance with the City’s Pavement Management Program. The project areas are located in different areas throughout town, as depicted in Attachment 2 to this staff report.

BACKGROUND:

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This project is part of the preventative maintenance component of the City’s Pavement Management Program. The project includes three different types of sealing methods to address different types of pavement fatigue on City streets. Some of the project areas will be treated with crack sealing and then the application of a Type II slurry seal. Some of the streets which are showing more advanced cracking will be treated with an asphalt rubber cape seal. This is a combination of an asphalt rubber chip seal, which is meant to seal cracks in the existing pavement and also provides additional durability and flexibility to the roadway, and then a top coat of Type II slurry seal, which penetrates the voids in the underlying chip seal, provides a smooth driving surface and prevents loss of the chip aggregate. The intent of such pavement management methods is to apply these types of seals before the pavement degrades to a point where preventative maintenance is no longer an option, and costlier rehabilitations or reconstruction are required. With the reduced costs of preventative maintenance like crack seals, slurry seals and cape seals, much larger project areas can be treated at a time, prolonging the life of the pavements across the City’s roadway network. The location map for this project is included as Attachment 2.

During the project bidding phase, the Notice Inviting Bids was advertised in the Mid Valley Times and circulated in the local builders’ exchanges. Additionally, other reputable contractors experienced with this type of construction were made aware of the project and invited to bid on the project as well.

On July 23, 2026 the City Clerk received and opened three bid proposals for this project:

Contractor Base Bid Ded. Alt #1 Ded. Alt #2
Pavement Coatings, Co. $589,465.35 $43,937.21 $141,967.40 American Pavement Systems, Inc. $680,436.36 $24,470.09 $61,040.80 VSS International, Inc. $697,120.00 $23,000.00 $83,000.00 Engineer’s Estimate $755,882.00 $104,120.00 $160,470.00 The bid proposal included the Base Bid as well as several deductive alternates, which were included in order to potentially reduce the project area based on the bids and the availability of funds. The basis of low bid determination was specified as the lowest responsive and responsible bid on the Base Bid only without consideration of any additive alternates. The bids were analyzed and it was determined that Pavement Coatings, Co. submitted the lowest responsive and responsible bid and as such, Staff recommends that they be awarded the contract. Because the low bid for the Base Bid was less than the Engineer’s estimate and within the budget for the project, Staff recommends that no deductive alternates be taken.

Reason for Recommendation:

Award of the contract will allow the City to proceed with the project.

Fiscal Impact:

The estimated cost for the construction phase of the project is $736,880, as detailed below:

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1. Construction - $589,465

2. Construction Contingency - $59,000

3. Construction Management/Inspection/Testing/Admin - $88,415 The project is being funded by Measure C Streets funds.

Alternatives:

None recommended.

Actions Following Approval:

The contract will be executed, subject to the Contractor providing performance security satisfactory to the City. After issuance of the Notice to Proceed, the Contractor will have 45 working days to complete the project.

Attachments:

1. ATT1 - Contract_2026 Street Sealing Project

2. ATT2 - Project Location Map

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\\nas1\shared\Forms & Templates
ATTACHMENT 1

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CONTRACT
THIS CONTRACT, is made by and between Pavement Coatings Co., hereinafter called the Contractor, and the City of Sanger, hereinafter called the Owner. THIS CONTRACT is effective as of .

W I T N E S S E T H:

The Contractor and the Owner, for the consideration hereinafter stated, agree as follows:

1. SCOPE OF WORK.

The Contractor agrees to furnish all labor and materials, including tools, implements, and appliances required, and to perform all the work in a good and workmanlike manner, free from any and all liens and claims of mechanics, teamsters, draymen and laborers required for the 2026 Street Sealing Project
as shown on the plans prepared by Yamabe & Horn Engineering, Inc., in strict compliance with the Plans, Drawings and Specifications therefore prepared by the Owner and other Contract Documents relating thereto.

2. CONTRACT DOCUMENTS.

The term Contract includes all “Contract Documents” which include the following:

A. Advertisement (Notice Inviting Bids)
B. Wage Scale (Prevailing Wages)
C. Standard Specifications ¹
D. Special Provisions
E. Plans and Drawings
F. Addenda and Bulletins
G. Contractors Bid Proposal hereto attached
H. This Contract
In the event of a conflict between this Contract and any portion of the Standard Specifications or Special Provisions, to the extent of such conflict, this Contract shall control.

3. COMPENSATION.

The Owner agrees to pay the Contractor for the performance of the Contract the sum of Five hundred eighty-nine thousand four hundred sixty-five dollars and thirty-five cents ($589,465.35).
¹ This Contract shall be subject to the Claims Resolution Process under Public Contract Code Section 9204 which is effective January 1, 2017; contrary language in Standard Specifications is superseded by said Section 9204

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It is understood that said price is based upon the estimated quantities of materials to be used as set forth in the Proposal; and upon completion of the project, the final contract price shall be revised, if necessary, to reflect the true quantities used at the stated unit price thereof as contained in the Contractor’s Proposal hereto attached.

4. SUSPENSION OF THE WORK.

A. General: The Work may be suspended in whole or in part when determined by the Engineer that the suspension is necessary in the interest of the Owner. The Contractor shall comply immediately with any written order of the Engineer. Such suspension shall be without liability to the Contractor on the part of the Owner except as otherwise provided in subsection 7C.

B. Archaeological and Paleontological Discoveries: If discovery is made of items of archaeological or paleontological interest, the Contractor shall immediately cease excavation in the area of discovery and shall not continue until ordered by the Engineer.

Discoveries which may be encountered may include, but not be limited to, dwelling sites, stone implements or other artifacts, animal bones, human bones, and fossils. The Contractor shall be entitled to an extension of time and compensation in accordance with Section 7.

5. TERMINATION OF THE CONTRACT FOR DEFAULT.

A. General: If, prior to the acceptance of the Work, the Contractor:
(1) Becomes insolvent, assigns its assets for the benefit of its creditors, is unable become due, or is otherwise financially unable to complete the Work; (2) Abandons the Work by failing to report to the Work site and diligently prosecute the Work to completion;
(3) Disregards written instructions from the Engineer or materially violates provisions of the Contract Documents;
(4) Fails to prosecute the Work according to the schedule approved by the Engineer; (5) Disregards laws or regulations of any public body having jurisdiction; or (6) Commits continuous or repeated violations of regulatory or statutory safety requirements, then the Owner will consider the Contractor in default of the Contract.

B. Notices: Notices and other written communications regarding default between the Contractor, the Owner, and the Surety shall be transmitted as follows:
(1) Personal delivery with proof of delivery which may be made by declaration under penalty of perjury by any person over the age of 18 years. The proof of delivery shall

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show that delivery was performed in accordance with these provisions. Service shall be effective on the date of delivery. Notices given to the Contractor by personal delivery may be made to the Contractor’s authorized representative at the Work site; or
(2) Certified mail addressed to the mailing address of the recipient postage prepaid; return receipt requested. Service shall be effective on the date of the receipt of the mailing.

Simultaneously, the Owner may send the same notice by regular mail. If a notice that is sent by certified mail is returned unsigned, then delivery shall be effective pursuant to regular mail, provided that the notice that was sent by regular mail is not returned.

C. Notice to Cure: The Owner will issue a written notice to cure the default to the Contractor and its Surety. The Contractor shall commence satisfactory corrective actions within 5 Working Days after receipt.

D. Notice of Termination for Default: If the Contractor fails to commence satisfactory corrective action within 5 Working Days after receipt of the notice to cure, or to diligently continue satisfactory and timely correction of the default thereafter, then the Owner will recommend to the Board that the Contractor be found in default of the Contract and upon such finding by the Board:
(1) Will terminate the Contractor’s right to perform under the Contract by issuing a written notice of termination for default to the Contractor and its Surety; (2) May use any materials, equipment, tools, or other facilities furnished by the Contractor to secure and maintain the Work site; and
(3) May furnish labor, equipment, and materials the Owner deems necessary to secure and maintain the Work site.

The provisions of this subsection shall be in addition to all other legal rights and remedies available to the Owner.

E. Responsibilities of the Surety: Upon receipt of the written notice of termination for default, the Surety shall immediately assume all rights, obligations, and liabilities of the Contractor under the Contract. If the Surety fails to protect and maintain the Work site, the Owner may do so, and may recover all costs incurred. The Surety shall notify the Owner that it is assuming all rights, obligations, and liabilities of the Contractor under the Contract and all money that is due, or would become due, to the Contractor shall be payable to the Surety as the Work progresses, subject to the terms of the Contract.

Within 15 Working Days of receipt of the written notice of termination for default, the Surety shall submit to the Owner a written plan detailing the course of action it intends to take to remedy the default. The Owner will review the plan detailing and notify the Surety if the plan is satisfactory. If the Surety fails to submit a satisfactory plan, or if the Surety fails to maintain progress according to the plan accepted by the Owner, the Owner may,

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upon 48 hours written notice, exclude the Surety from the premises, take possession of all material and equipment, and complete the Work in any way the Owner deems to be expedient. The cost of completing the Work by the Owner shall be charged against the Surety and may be deducted from any monies due, or which would become due, the Surety.

If the amounts due under the Contract are insufficient for completion, the Surety shall pay the Owner, within 30 Days after the Owner submits an invoice, all costs in excess of the remaining Contract Price.

F. Payment: The Surety will be paid for completion of the Work in accordance less the value of damages caused to the Owner by the acts of the Contractor.

6. TERMINATION OF THE CONTRACT FOR CONVENIENCE.

The Owner may terminate the Contract if it becomes impossible or impracticable to proceed, or because of conditions or events beyond the control of the Owner.

A. Notice: The Owner will issue a written notice of termination for convenience as follows:
(1) Personal delivery, with proof of delivery which may be made by declaration under penalty of perjury by any person over the age of 18 years. The proof of delivery shall show that delivery was performed in accordance with these provisions. Service shall be effective on the date of delivery. Notices given to the Contractor by personal delivery may be made to the Contractor’s authorized representative at the Work site; or
(2) Certified mail addressed to the mailing address of the recipient postage prepaid; return receipt requested. Service shall be effective on the date of the receipt of the mailing.

B. Cessation of Work: Upon receipt, the Contractor shall immediately cease work, except work the Contractor is directed to complete by the Engineer or required to complete for public safety and convenience. The Contractor shall immediately notify Subcontractors and suppliers to immediately cease their work.

C. Payment: The Contractor will be paid without duplication for:
(1) Work completed in accordance with Contract Documents prior to the effective date of termination for convenience;
(2) Reasonable costs incurred in settlement of terminated contracts with Subcontractors, suppliers and others; and
(3) Reasonable expenses directly attributable to termination.

The Contractor shall submit a final termination settlement proposal to the Owner no later than 90 days from the effective date of termination, unless extended, in writing,

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by the Owner upon written request by the Contractor.

If the Contractor fails to submit a proposal, the Owner may determine the amount, if any, due the Contractor as a result of the termination. The Owner will pay the Contractor the amount it determines to be reasonable. If the Contractor disagrees with the amount determined by the Owner as being reasonable, the Contractor shall provide notice to the Owner within 30 Days of receipt of payment. Any amount due shall be as later determined by arbitration, if the Owner and the Contractor agree thereto, or as fixed in a court of law.

1. DELAYS AND EXTENSIONS OF TIME.

A. General: If delays are caused by unforeseen events beyond the control of the Contractor, such delays will entitle the Contractor to an extension of Contract time as provided herein, but the Contractor will not be entitled to damages or additional payment due to such delays, except as otherwise specified in Subsection 7C of this Contract. Such unforeseen events may include: war, government regulations, labor disputes, strikes, fires, floods, adverse weather or elements necessitating cessation of work, inability to obtain materials, labor, or equipment, required Extra Work, or other specific events as may be further described in the Special Provisions.

No extension of time will be granted for a delay caused by the Contractor’s inability to obtain materials unless the Contractor furnishes to the Engineer documentary proof. The proof must be provided in a timely manner in accordance with the sequence of the Contractor’s operations and the approved construction schedule.

If delays beyond the Contractor’s control are cause by events other than those mentioned above, the Engineer may deem an extension of time to be in the best interests of the Owner.

The Contractor will not be entitled to damages or additional payment due to such delays, except as otherwise specified in Subsection 7C of this Contract.

If delays beyond the Contractor’s control are caused solely by action or inaction of the Owner, such delays will entitle the Contractor to an extension of time per subsection B of this Contract.

B. Extensions of Time: Extensions of time, when granted, will be based upon the effect of delays to the Work. They will not be granted for non-controlling delays to minor portions of the Work unless it can be shown that such delays did or will delay the progress of the Work.

C. Payment for Delays: Pursuant to Public Contract Code Section 7102, the Contractor will be compensated for damages incurred due to delays for which the Owner is responsible.

Such actual costs will be determined by the Engineer. The Owner will not be liable for damages which the Contractor could have avoided by any reasonable mans, such as judicious handling of forces, equipment or plant. The determination of what damages the Contractor could have avoided will be made by the Engineer.

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D. Written Notice and Report: If the Contractor desires payment for a delay as specified in subsection C above or an extension of time, it shall file with the Engineer a written request and report of cause within 30 Days after the beginning of the delay. The request for payment or extension must be made at least 15 days before the specified completion date.

Failure by the Contractor to file these items within the times specified will be considered grounds for refusal by the Owner to consider such a request.

E. Time of Completion: The Contractor shall complete the Work in the time specified in the Contract or the Special Provisions. The Contractor shall complete each portion of the Work within the time specified as in the Contract or the Special Provisions for such portion.

Unless otherwise specified in the Contract or the Special Provisions, the time of completion of the Contract shall be expressed in Working Days.

F. Contract Time Accounting: The Engineer will make a daily determination of each Working Day to be charged against Contract time. These determinations will be discussed and the Contractor will be furnished a periodic statement showing the allowable number of Working Days of Contract time, as adjusted at the beginning of the reporting period.

The statement will also indicate the number of Working Days charged during the reporting period and the number of Working Days of Contract time remaining. If the Contractor does not agree with the statement, it shall file a written protest within 15 Days after receipt, setting forth the facts of the protest. Otherwise, the statement will be deemed to have been accepted.

2. COMPLETION, ACCEPTANCE, AND WARRANTY.

A. Completion: The Contractor shall submit a written assertion that the Work has been completed. If, in the Engineer’s judgment, the Work has been completed in accordance with the Contract Documents, the Engineer will set forth in writing the date the Work was completed. This will be the date when the Contractor is relieved from responsibility to protect and maintain the Work and to which liquidated damages will be computed.

B. Acceptance: Acceptance will occur after all of the requirements contained in the Contract Documents have been fulfilled. If, in the Engineer’s judgment, the Contractor has fully performed the Contract, the Engineer will recommend to the Board that the Contractor’s performance of the Contract be accepted.

C. Warranty: The Work shall be warranted by the Contractor against defective materials and workmanship for a period of 2 years. The warranty period shall start on the date the Work was completed as determined by the Engineer.

The warranty period for specific items covered under manufacturers’ or suppliers’ warranties shall commence on the date they are placed into service at the direction of or as approved by the Engineer in writing.

All warranties express or implied, from subcontractors, manufacturer, or suppliers, of any tier, for the materials furnished and work performed shall be assigned, in writing, to the Owner, and such warranties shall be delivered to the Engineer prior to acceptance of the

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Contractor’s performance of the Contract.

The Contractor shall replace or repair defective materials and workmanship in a manner satisfactory to the Engineer, after notice to do so from the Engineer, and within the time specified in the notice. If the Contractor fails to make such replacement or repairs within the time specified in the notice, the Owner may perform the replacement or repairs at the Contractor’s expense. If the Contractor fails to reimburse the Owner for the actual costs, the Contractor’s Surety shall be liable for the cost thereof.

3. LIQUIDATED DAMAGES.

Failure of the Contractor to complete the Work within the time allowed will result in damages being sustained by the Owner. Such damages are, and will continue to be, impracticable and extremely difficult to determine. For each consecutive calendar day in excess of the time specified for completion of the Work, as adjusted in accordance with Section 7 above, the Contractor shall pay to the Owner, or have withheld from monies due it, the sum of $1,000.00, unless otherwise specified in the Special Provisions.

Execution of the Contract shall constitute agreement by the Owner and the Contractor that $1,000.00 per day is the minimum value of the costs and actual damage caused by the failure of the Contractor to complete the Work within the allotted time. Such sum is liquidated damages and shall not be construed as a penalty, and may be deducted from payments due the Contractor if such delay occurs.

4. INDEMNIFICATION
To the maximum extent permitted by Civil Code Section 2782 et seq., Owner shall not be liable for, and Contractor shall defend, indemnify, and hold harmless Owner and its officers, agents, engineers, architects, consultants, employees and volunteers (collectively “Owner Parties”), against any and all claims, deductibles, self-insured retentions, demands, liability, judgments, awards, fines, mechanics' liens or other liens, labor disputes, losses, damages, expenses, charges or costs of any kind or character, including attorneys' fees and court costs (collectively referred to as “Claims”), which arise out of or are in any way connected to the work covered by this Contract arising either directly or indirectly from any act, error, omission or negligence of Contractor or its officers, employees, agents, contractors, sub-contractors, licensees or servants, including, without limitation, Claims caused by the concurrent negligent act, error or omission, of Owner Parties.

However, Contractor shall have no obligation to defend or indemnify Owner Parties against Claims caused by the active negligence, sole negligence or willful misconduct of Owner Parties.

This indemnification shall apply to all liability, as provided for above, regardless of whether any insurance policies are applicable, and insurance policy limits do not act as a limitation upon the amount of the indemnification to be provided by the Contractor.

5. INSURANCE.

Contractor, at its sole cost and expense, shall obtain and maintain in full force and effect throughout the entire term of this Contract, the following-described insurance coverage, insuring not only

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Contractor and its subcontractors, if any, but also, with the exception of workers’ compensation and employer’s liability insurance, the Owner, its officers, agents, and employees of each of them:

A. MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage (Occurrence form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
(3) Worker’s Compensation insurance as required by the State of California and Employer’s Liability Insurance.

B. MINIMUM LIMITS OF INSURANCE
Contractor shall maintain limits no less than:
(1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury, and property damage. If commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this product / location or the general aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $2,000,000 per accident for bodily injury and property damage. (3) Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

C. DEDUCTIBLES AND SELF-INSURED RETENTIONS
Any deductible or self-insured retentions must be declared to and approved by the Owner.

At the option of the Owner, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the Owner, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

D. OTHER INSURANCE PROVISIONS
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
(1) The Owner, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned,

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occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the Owner, its officers, officials, employees, agents or volunteers.
(2) For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance as respects the Owner, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the Owner, its officers, officials, employees, agents or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
(3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the Owner, its officials, employees, agents or volunteers.
(4) The Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. (5) Each insurance policy required by this clause shall be endorsed to state the coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the Owner.

E. ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less the A:VII.

F. VERIFICATION OF COVERAGE
Contractor shall furnish the Owner with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the Owner.

All endorsements are to be received and approved by the Owner before work commences.

As an alternative to the Owner’s forms, the Contractor’s insurer may provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications.

G. SUBCONTRACTOR
Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

Contractors Property Damage Liability insurance shall include coverage for property damage caused by blasting, collapse, structural injuries or damage to underground utilities.

The policy shall not contain “x”, “c” or “u” exclusions.

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Certificates of such insurance shall be filed with the Owner concurrently with the execution of this Contract or, with Owner’s approval, within ten (10) days thereafter. Said certificates shall be subject to the approval of the Owner.

6. WORKERS COMPENSATION.

Contractor represents that he or she has secured the payment of Worker’s Compensation in compliance with the provisions of the Labor Code of the State of California and during the performance of the work contemplated herein will continue so to comply with said provisions of said Code. Contractor shall supply the Owner with certificates of insurance, in triplicate, evidencing that Worker’s Compensation Insurance is in effect and providing that the Owner will receive ten (10) days written notice of cancellation. If the Contractor self-insures Worker’s Compensation, Certificate of Consent of self-insured shall be provided the Owner.

7. BONDS.

The Contractor shall forthwith furnish in triplicate two bonds, each in the amount of 100 percent of the Contract price. One shall serve as security for the faithful performance of the work (hereafter “Performance Bond”). The second bond shall serve as security for the faithful performance and satisfaction of the persons furnishing materials and performing labor on the work (hereafter “Payment Bond”). Both bonds shall be written by a surety company licensed to transact surety business in the State of California and in the form prescribed by law.

The Performance Bond shall remain in force throughout the period required to complete the work and thereafter for a period of 730 calendar days after final acceptance of the work. The Payment Bond will be released 35 days after the recording date of the Notice of Completion, provided no liens are filed with the Owner. The Payment Bond shall contain provisions such that if the Contractor or its subcontractor shall fail to pay (a) amounts due under the Unemployment Insurance Code with respect to work performed under the contract, or (b) any amounts required to be deducted, withheld and paid over to the Employment Development Department from the wages of the employees of the Contractor and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, then the surety will pay these amounts. In case suit is brought upon the payment bond, the surety will pay reasonable attorneys’ fees to be fixed by the court.

8. DEFECTIVE MATERIALS; DEFECTIVE WORK.

Should any of the materials or equipment prove defective or should the work as a whole prove defective, due to faulty workmanship, material furnished or methods of installation, or should the work or any part thereof fail to operate properly as originally intended and in accordance with the plans and specifications, due to any of the above causes, all within twenty four (24) months after date on which the completed project is accepted by the Owner, the undersigned agrees to reimburse the Owner, upon demand, for its expenses incurred in restoring said work to the condition contemplated in said project, including the cost of any such equipment or materials replaced and the cost of removing and replacing any other work necessary to make such replacement or repairs,

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or, upon demand by the Owner, to replace any such materials and to repair said work completely without cost to the Owner so that said work will function successfully as originally contemplated.

The Owner shall have the unqualified right to make any needed replacement or repairs after a written notice to cure has been served upon the Contractor and a reasonable time to cure has expired. In the event the Owner elects to have said work performed by the undersigned, the undersigned agrees that the repairs shall be made within a reasonable time after the receipt of demand from the Owner. If the undersigned shall fail or refuse to comply with his obligations under this guaranty, the Owner shall be entitled to all costs and expenses, including attorney’s fees, reasonably incurred by reason of the said failure or refusal.

9. LABOR STANDARDS.

A. General: Contractor agrees that construction work shall be subject to the provisions of state and local regulations. In particular, Contractor agrees to comply with all applicable Labor Code requirements whether or not expressly stated herein.

B. Wages:
(1) General: The Contractor and each subcontractor engaged in the work shall pay each employee an amount not less than the rate established for each trade or occupation listed by the Director of the Department of Industrial Relations, State of California. An employee whose type of work is not covered by any of the classified wage rates shall be paid not less than the rate of wage listed for the classification which most nearly corresponds to the type of work to be performed.
(2) State: The Owner has obtained from the Department of Industrial Relations the general prevailing rate of wages in the vicinity of the work to be performed under this Contract.

These wage rates are maintained on file by Owner at its principle office and will be made available to any interested party upon request.
(3) Enforcement: These wage rates shall be enforced under Sections 1770 through 1780 of the California Labor Code. The Contractor shall be liable for forfeitures or penalties incurred from noncompliance with Labor Code provisions. (4) Payroll Records: Each Contractor and subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the work on the Project. Such records shall be certified and available for inspection at all reasonable hours at the principal place of the Contractor as required by Labor Code Section 1776. Certified payrolls shall be submitted weekly to Owner c/o Yamabe and Horn Engineering Inc. Electronic certified payrolls shall also be submitted weekly directly to the Labor Commissioner, Division of Labor Standards Enforcement.

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C. Preference for Resident Labor: Whenever possible in the employment of labor for performance of the work, the Contractor shall give preference to qualified persons residing within the general area of the work.

D. Hours of Labor: Pursuant to the Labor Code, eight hours of labor shall constitute a legal day's work. The Contractor or any subcontractor shall not require any more than eight hours of labor in a day from any person employed in the performance of the work under this Contract except for authorized work as provided under paragraph Subsection E below.

Failure of the Contractor to perform the work in accordance with this policy of the State of California shall be deemed a failure to comply with the provisions of this Contract.

E. Overtime Work: In accordance with Labor Code Section 1813, the Contractor shall as a penalty to the State or political subdivision on whose behalf the Contract is made or awarded, forfeit twenty-five ($25.00) for each worker employed in the execution of the Contract by the Contractor or by any subcontractor for each calendar day during which said worker is required or permitted to work more than eight hours in any one calendar day and forty hours in any one calendar week in violation of Labor Code Sections 1810-1815.

Overtime and shift work may be established as a regular procedure by the Contractor with reasonable notice and written permission of the Owner. No work other than overtime and shift work established as a regular procedure shall be performed between the hours of 6:00 p.m. and 7:00 a.m. nor on Saturdays, Sundays or holidays except such work as is necessary for the proper care and protection of the work already performed or in case of an emergency.

Contractor agrees to pay the costs of overtime inspection except those occurring as a result of overtime and shift work established as a regular procedure. Overtime inspection shall include inspection required during holidays, Saturdays, Sundays and weekdays between the hours of 6:00 p.m. and 7:00 a.m. Costs of overtime inspection will cover engineering, inspection, general supervision and overhead expenses which are directly chargeable to the overtime work. Contractor agrees that Owner shall deduct such charges from payments due the Contractor.

F. Apprentices: The Contractor and subcontractors shall comply with the requirements of Sections 1777.5 and 1777.6 of the Labor Code in the employment of apprentices.

Information relative to apprenticeship standards, wage schedules, and other requirements may be obtained from the Director of Industrial Relations, ex officio the Administrator of Apprenticeship Standards and its branch offices.

G. Compliance with SB 854: California Labor Code: Contractor represents that it has complied and will continue to comply with all applicable registration and disclosure requirements of SB 854 and acknowledges the following:
(1) No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)]

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(2) No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.
(3) This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
(4) No bid proposals will be accepted nor any contract entered into with a contractor without proof of registration described above.
(5) Contractor must post any job site notices required by regulation. It is the Contractor’s responsibility to know the current regulations.
(6) Contractor must furnish electronic certified payroll records to the Division of Labor Standards Enforcement (“Labor Commissioner”) as required. The Contractor is responsible for checking with the Department of Industrial Relations for any notices regarding this requirement.

10. LAWS, REGULATIONS AND PERMITS.

A. General: The Contractor shall give the notices required by law and comply with all laws, ordinances, rules and regulations pertaining to the conduct of the work. The Contractor shall be liable for violations of the law in connection with work provided by the Contractor.

If the Contractor observes that the drawings, specifications are at variance with any laws, ordinances, rules or regulations, the Contractor shall promptly notify the Engineer in writing of such variance. The Owner shall promptly review the matter and, if necessary, shall issue a change order or take any other action necessary to bring about compliance with the law, ordinance, rule or regulation in question. Contractor agrees not to perform work known to be contrary to any laws, ordinances, rules, or regulations.

B. Permits and Licenses: Unless otherwise specified herein, permits and licenses from governmental agencies which are necessary only for and during the prosecution of the work and the subsequent guarantee period shall be secured and paid for by the Contractor.

Permits and licenses of regulatory agencies which are necessary to be maintained after completion of the guarantee period shall be secured and paid for by the Owner.

C. Patents and Royalties: The costs involved in fees, royalties or claims for any patented invention, article, process or method that may be used upon or in a manner connected with the work under this Contract or with the use of completed work by the Owner, shall be paid by the Contractor. The Contractor and Contractor's sureties shall protect, defend, and hold Owner together with Owner's officers, agents and employees, harmless against any and all demands made for such fees or claims brought or made by the holder of any invention or patent. Before final payment is made on the account of this Contract, the Contractor shall, if requested by the Owner, furnish acceptable proof of a proper release from all such fees or claims.

Should the Contractor, agent, employee or any of them be enjoined from furnishing or using any invention, article, material or plans supplied or required to be supplied or used

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under this contract, the Contractor shall promptly pay such royalties and secure the requisite licenses; or, subject to acceptance by the Owner, substitute other articles, materials or appliances in lieu thereof which are of equal efficiency, quality, finish, suitability and market value to those planned or required under the Contract. Descriptive information of these substitutions shall be submitted to the Engineer for determination of general conformance to the design concept and the construction Contract. Should the Owner elect to refuse the substitution, the Contractor agrees to pay such royalties and secure such valid licenses as may be requisite for the Owner, Owner's officers, agents and employees or any of them, to use such invention, article, material or appliance without being disturbed or in any way interfered with by any proceeding in law or equity on account thereof.

11. CALIFORNIA LAW AND VENUE.

The terms of this Contract shall be governed by and construed in accordance with the laws of the State of California applicable to contracts entered into and to be performed in California. In the event any part of this Contract shall be held to be invalid, void, or otherwise unenforceable for any reason, the Contract shall be modified rather that voided, if possible, in order to achieve the intent of the parties to the extent possible and in any event, all other provisions of this Contract shall remain valid and enforceable.

12. MUTUAL NEGOTIATION.

Contractor acknowledges that the provisions herein have been mutually negotiated and neither party shall be construed to be the drafter of this Contract.

19. ATTORNEY’S FEES.

In the event of litigation concerning this Contract the prevailing party shall be awarded reasonable attorney fees and costs of suit, in addition to appropriate compensatory damages or other relief ordered for the benefit of the prevailing party.

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IN WITNESS WHEREOF, the parties have executed this Contract as set forth below CITY OF SANGER PAVEMENT COATINGS CO.
(OWNER) (CONTRACTOR)
By: By:

Nathan Olson, City Manager
Date: Title:

Date:

Approved as to Form:

Federal Taxpayer I.D. No.

City Attorney

Date:

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\\nas1\shared\Forms & Templates
ATTACHMENT 2

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Area 4A
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Area 1B
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Bakersfield
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For the Meeting of: August 6, 2026
Agenda Item No.: F.7.

City of Sanger
Report to the City Council
To: City Council
From: Joshua Goggins, Community Development Director
Subject: Second Reading and Adoption of an Ordinance Repealing and Replacing Sections 2-156 through 2-160 of Division 4 (Planning Commission) of Article IV, Chapter 2 of the City Code.

None known.

Recommendation:

That the council conduct the second reading, by title only, and adopt an Ordinance of the City Council of the City of Sanger repealing and replacing Sections 2-156 through 2-160 of Division 4 (Planning Commission) of Article IV, Chapter 2 of the City Code. (Ordinance 2026-04) Executive Summary/Background:

The Planning Commission plays a vital role in the development of the community in Sanger, including the creation and implementation of the City’s General Plan and zoning ordinance, approving entitlements, and otherwise improving the overall economic development and the quality of life. However, the existing City Code regulations regarding the Planning Commission are dated, and the Planning Commission has encountered difficulties conducting business due to a lack of quorum.

The proposed Ordinance seeks to update the Planning Commission regulations, including modifications to the size, selection criteria, and appointment terms. Specifically, it reduces the number of commissioners from seven to five (matching the size of the City Council) in an effort to more easily obtain a meeting quorum, transitions from an at-large selection pool to individual district-based appointments, and establishes four-year terms with a specific expiration rotation.

The proposed ordinance does not diminish local land use oversight; rather, it ensures that the City can maintain a fully populated, nimble, and operational advisory body that is responsive to development processing deadlines.

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Additionally, the proposed ordinance includes a transitional mechanism to allow the City Council to re-establish the commission membership in alignment with these new requirements.

Staff recommends approval of this Ordinance to better align the commission’s structure with the operational realities of the City.

The City of Sanger Planning Commission is currently established under Chapter 2, Article IV, Division 4 of the Sanger Municipal Code. Historically, the municipal code has dictated that the commission consist of seven regular, resident members nominated by the Mayor and appointed by the City Council. In recent years, local government agencies throughout Fresno County have experienced increasing difficulty in filling multi-member voluntary board positions with qualified resident applicants capable of dedicating the necessary time to monthly public hearings.

As a general rule, the more members on a board or commission, the more difficult it is to achieve the quorum needed to conduct business. The current seven-member configuration has frequently resulted in extended vacancies or localized attendance issues, directly causing difficulties in establishing a regular meeting quorum. When a municipal body fails to secure a quorum, scheduled public hearings regarding subdivisions, conditional use permits, and site plan reviews must be formally continued.

These unexpected delays impose scheduling conflicts and financial strains on local developers and residential builders. To resolve these logistical vulnerabilities, City staff evaluated a structural reorganization to create a more resilient administrative framework. By restructuring the body into five (5) members, the City maximizes its recruitment potential. Furthermore, the transition to individual district-based appointments and four-year terms ensures consistent administrative tracking and accountability.

Reason for Recommendation:

The core objective of this administrative update is to maximize operational efficiency and bring stability to the development review process. By adjusting the total number of appointed Planning Commissioners from seven (7) to five (5) and formalizing the appointment process, the City Council can maintain a highly focused, accountable advisory board while mitigating the risks of regulatory delays caused by attendance shortages. Staff emphasizes that this change improves the functional capacity of the body. Under the existing framework, a quorum requires four (4) members.

By adjusting the body to five (5) total seats, a legal quorum is defined as a majority (three active commissioners), lowering the statistical probability of meeting cancellations. The ordinance establishes four-year terms with a rotation of three positions expiring in even years and two positions expiring in odd years, providing long-term continuity. To protect against chronic absenteeism, the updated text explicitly dictates that an absence from four (4) consecutive regular meetings without the formal consent of the commission will automatically constitute a member’s retirement, vacating the seat for prompt replacement.

The ordinance also provides clear procedures for electing officers annually, clarifies the role of the Community Development Director as secretary, and establishes that members serve at the

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pleasure of the City Council. This structural shift is critically necessary because when a quorum is not met, scheduled Planning Commission meetings must be canceled, causing immediate bottlenecks for projects requiring local government action. Transitioning to a five-member commission ensures that Sanger protects its economic development goals by establishing a more reliable meeting schedule, proving that the City is open for business and committed to administrative reliability.

Environmental Determination
The adoption of this Ordinance is not a “project” for the purposes of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378. The restructuring of the Planning Commission’s membership, terms of office, and internal procedures constitutes an organizational and administrative activity of the City that will not result in either a direct physical change to the environment, or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA.

Fiscal Impact:

There is a negligible, yet positive, long-term fiscal impact on the General Fund. Decreasing the commission by two seats will subtly reduce municipal operational expenses associated with monthly Planning Commission compensation and administrative preparation time, while minimizing staff time spent on cancelled or re-noticed meetings.

Alternatives:

While Staff recommends the adoption of the five-member configuration, the City Council may consider alternative courses of action. The first alternative is to maintain the status quo and keep the commission at seven (7) at-large members. Staff does not recommend this option due to ongoing challenges in filling vacancies and ensuring consistent meeting attendance. The second alternative is to appoint alternates in the event a commissioner is unable to attend.

Actions Following Approval:

Should the City Council adopt this Ordinance, it will become legally effective on the thirty-first (31st) day following its adoption, pursuant to Section 5 of the Ordinance. Following the effective date, the City will implement the revised Planning Commission structure in accordance with the Ordinance.

Attachments:

1. Ordinance 2026-04

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ORDINANCE NO. 2026-04

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANGER
REPEALING AND REPLACING SECTIONS 2-156 THROUGH 2-160 OF DIVISION 4 (PLANNING COMMISSION) OF ARTICLE IV OF
CHAPTER 2 OF THE CITY CODE
WHEREAS, under State law the planning commission is a permanent committee made up of five or more individuals who have been appointed by the governing body, or is the governing body functioning as the planning commission; and
WHEREAS, rather than siting as the members of the City’s Planning Commission, the City Council has appointed seven members from the community to fill this role; and WHEREAS, the Planning Commission plays a vital role in the development of the community in Sanger, including creation and implementation of the City’s General Plan and zoning ordinance, approving entitlements, and otherwise improving the overall economic development and the quality of life; and
WHEREAS, the current structure of the seven-member Planning Commission has created both difficulties in finding qualified members to serve, and for the Planning Commission to establish a quorum at meetings, resulting in the Planning Commission’s business unable to be efficiently conducted and vital development being delayed; and WHEREAS, the City Council now desires to reorganize the Planning Commission and transition from at-large to individual district appointments, and to reduce the size of the Planning Commission from seven to five members; and
WHEREAS, the City Council also desires to generally update the City Code regarding the role and function of the Planning Commission to reflect current practices.

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

SECTION 1. Recitals. The above recitals are incorporated by reference.

SECTION 2. CEQA. The City Council finds and determines that the adoption of an ordinance regarding Planning Commission membership and terms of office is not a “project” for the purposes of the California Environmental Quality Act (CEQA) as the membership of the Planning Commission is an organizational or administrative activity of the City that will not result in direct or indirect physical changes to the environment as contemplated by CEQA Guidelines section 15378. As such, this activity is not subject to CEQA.

SECTION 3. Sections 2-156 through 2-160 of Division 4, Article IV of Chapter 2 are repealed in their entirety and replaced with the following Division 4 as follows:

DIVISION 4. – PLANNING COMMISSION

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Sec. 2-156. – Creation and Membership
The planning commission previously established and created is hereby re-established and recreated without loss of continuity under and by authority of the State law. (a) There shall be five members of the planning commission. A majority of the members of the planning commission shall constitute a quorum for the conduct of business. (b) Each member of the planning commission shall be a registered voter residing within the city. The city council may establish by resolution further recruitment and service requirements, criteria and attendance standards governing service on the planning commission.
(c) The members of the planning commission shall be appointed by the mayor subject to the approval of each appointment by the city council.
(d) The term of the office of planning commissioners shall be for four years. The term shall expire on a rotation of three positions expiring in even years and two positions expiring in odd years. Terms shall expire on the first Thursday in February of the even or odd year as the case may be. A member whose term expires shall continue to serve until a successor has been appointed and qualified. If a vacancy occurs other than by expiration of a term, it shall be filled by appointment for the unexpired portion of the term. (e) Members of the planning commission hold office at the pleasure of the city council and may be removed from office in the sole determination, with or without cause, notice, hearing or appeal, by the city council.
(e) Absence from four consecutive regular meetings without formal consent of the commission shall be deemed to constitute the retirement of such member from the planning commission, and the position of such retired member shall be deemed vacant.

Upon a retirement or vacancy the city clerk shall promptly notify the mayor of the vacancy.
(f) To effectuate initial implementation of this ordinance, the city council may adopt a resolution removing all existing members of the planning commission and then immediately re-appoint five members to serve the remainder of the terms. Said reappointment may designate which members of the planning commission will be serving which terms, even if the term is less than four years.

Sec. 2-157. – Powers, duties, quorum, procedures
(a) The planning commission shall have all the powers, functions and duties provided for by State law, the laws of the city, and as delegated in accordance with applicable laws. (b) A majority of the members of the planning commission shall constitute a quorum for the conduct of business.

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(c) The planning commission may adopt such rules of procedure as it deems necessary and appropriate, with Rosenberg’s Rules of Order preferred but not required. The planning commission shall elect a chairman and vice chairman to preside over its meetings. The chairman and vice chairman shall hold offices until their successors are elected. Election of the chairman and vice chairman shall occur annually at the first meeting following June 30th of each year.
(d) In the absence of the city clerk or appointed deputy, the Community Development Director shall serve as the secretary to the planning commission. (e) Compensation for the planning commission may be established by adopted resolution of the city council.

Sec. 2-158 to 2-170. - Reserved.

SECTION 4. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional.

SECTION 5. Effective Date. This Ordinance shall be effective on the thirty-first (31st) day following its adoption.

This Ordinance was introduced for a first reading, by title only, at a regular meeting of the City Council of the City of Sanger on the 16th day of July, 2026.

PASSED AND ADOPTED following a second reading, by title only, at a regular meeting of the City Council of the City of Sanger on the 6
th day of August, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
______________________________
Frank Gonzalez, Mayor
City of Sanger
______________________________
Lina Martinez, City Clerk
City of Sanger
ATTEST: APPROVED:

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For the Meeting of: August 6, 2026
Agenda Item No.: F.8.

City of Sanger
Report to the City Council
To: City Council
From: Joshua Goggins, Community Development Director
Subject: Second Reading and Adoption of Ordinance 2026-99, Adding Article VII to Chapter 58 of the Sanger Municipal Code Regarding Mobile Food Vendors, Open Air, and Sidewalk Vending Operations.

Conflict of Interest:

None known.

Recommendation:

That the council conduct the second reading, by title only, and adopt Ordinance 2026-05, an Ordinance of the City Council of the City of Sanger adding Article VII to Chapter 58 of the Sanger Municipal Code to formally legalize, regulate, and promote the operation of mobile food vendors, alongside other open-air and sidewalk vending activities.

Executive Summary/Background:

The City of Sanger continues to see a persistent presence of various vending operations setting up on both public and private property throughout the community. While these operations have long created regulatory challenges, this ordinance establishes a clear pathway to legalize and properly regulate mobile food vendors, recognizing them as an essential element of a vibrant local economy. By transitioning these operations from informal to formal, regulated businesses, the City anticipates significant economic development benefits through expanded consumer choice and entrepreneurial opportunity.

The proposed ordinance adds Article VII to Chapter 58 of the Municipal Code to provide clear regulatory standards that balance business growth with necessary health, safety, and accessibility requirements. Key updates include the incorporation of state-mandated sidewalk vending regulations, the decriminalization of sidewalk vending violations, and granting the City authority to impound equipment from vendors operating in violation of established health and safety standards. Additionally, the ordinance establishes a formal exemption for minors under the age of 18 to conduct limited, low-impact sales without a business license.

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The current municipal code requires modernization to effectively transition mobile food vendors into the formal economy, as they frequently operate without proper identification or necessary Fresno County Environmental Health permits. While past operations have created safety hazards by blocking pedestrian passage or lacking sanitation, this ordinance provides the framework to legalize these vendors by regulating the time, place, and manner of operations through objective health, safety, welfare, and accessibility standards.

Reason for Recommendation:

The primary goal of this ordinance is to protect the public health, safety, and welfare of the community while simultaneously creating a robust and legal environment for mobile food vendors to thrive. By legitimizing these vendors and providing clear, concise regulations, the City promotes economic development and ensures that these businesses can operate safely and successfully within Sanger. Updating the municipal code to align with recent state mandates regarding sidewalk vending ensures the City avoids potential litigation and maintains legally defensible regulations.

Beyond regulatory compliance, the legalization of mobile food vendors serves as a catalyst to encourage small business development, providing a low-barrier entry point for local entrepreneurs to contribute to the economic vitality of our community. By creating a structured and predictable environment for these operators, the City can elevate the city’s profile as a destination for diverse culinary experiences. Furthermore, these established regulations will cultivate community-wide events and enhance the overall vibrancy of our commercial corridors, making Sanger a more attractive and dynamic place for residents and visitors alike.

Fiscal Impact:

This ordinance will have a positive impact on the General Fund. Administrative expenses related to permit processing and oversight will be handled by existing staff and are expected to be offset by application and renewal fees. This new revenue will contribute directly to the City's overall fiscal health.

Alternatives:

The City Council may consider maintaining the current prohibition on mobile food vendors and sidewalk vendors; however, this approach ignores the opportunity to capitalize on the economic benefits of legalized vending and would leave the City out of compliance with updated state sidewalk vending laws such as Senate Bill 946.

Actions Following Approval:

Upon adoption by the City Council, Ordinance No. 2026-99 will become effective on the thirtyfirst day following its adoption. The Community Development Department and Finance Department will implement the ordinance by administering mobile food vendor, open-air vendor, and sidewalk vendor permits in accordance with the requirements of newly added Article VII of Chapter 58 of the Sanger Municipal Code, ensuring a smooth transition to the new regulatory framework.

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Attachments:

1. ORD_2026-05_Mobile

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ORDINANCE NO. 2026-05

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANGER
ADDING ARTICLE VII TO CHAPTER 58 OF THE SANGER MUNICIPAL

CODE REGARDING MOBILE, OPEN AIR, AND SIDEWALK VENDING

OPERATIONS
WHEREAS, there have been ongoing and historical illegal vending operations, especially with illegal food vendors temporarily setting up on private and public property and selling food at various locations throughout the city where otherwise prohibited. These operations can be quite extensive, including tents, generators, lights, food service areas, tables, chairs, music, etc. Among others, these “pop up” vendors are often trespassing, do not comply with State food facility regulations overseen by Fresno County, violate safety and ADA requirements, are in incompatible locations with existing uses, and are placing lawfully operating vendors (including traditional brick and mortar restaurants and licensed food truck vendors) at a significant competitive disadvantage.

Furthermore, these illegal operations frequently cause queuing of vehicles in the street or unsafe ingress/egress of traffic onto sites not suitable for said traffic, blocking of pedestrian passage, trespassing, or setting up semi-permanent operations contrary to the City's zoning ordinance and which are not compatible with surrounding lawful uses, sanitation (including the lack of hand washing stations, trash receptacles, and appropriate storage to prevent insect intrusions, etc.); and and
WHEREAS, the various challenges the City has encountered include difficulty in citing vendors who do not carry personal identification and enforcing said citations, receiving resources from sister agencies in citing food vendors operating unsafely and in violation of State and county law, and encountering “repeat offenders” who continue to vend in violation of Article VII of Chapter 58 despite having received multiple warning or administrative citations; and WHEREAS, the City Council now desires to add and adopt regulations within Chapter 58 of the Sanger Municipal Code to its police power to permit the City to impound equipment, food, goods, merchandise, and other vending items from vendors operating in violation of the Municipal Code and/or Fresno County Health Department regulations to thereby promote the public health, safety and welfare of the City’s residents and visitors; and WHEREAS, the California State Legislature has also passed various legislation limiting local regulation of sidewalk vending; and
WHEREAS, local agencies still retain the authority to pass ordinances regulating certain aspects of sidewalk vending, such as time, place, and manner of vending in sensitive areas, but local agencies are prohibited from banning sidewalk vending altogether; and WHEREAS, additional requirements as to the manner of sidewalk vending are warranted, and are directly related to objective health, safety, and welfare concerns; and WHEREAS, it has been the Council’s policy to encourage youth entrepreneurship and promote community engagement, and it has been the City’s practice to provide flexibility to these

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budding entrepreneurs for certain vending. In furtherance of this, the Council desires to formally codify exceptions for minors under the age of 18 from limited, low-impact sales activities without a business license; and
WHEREAS, the City Council considered this ordinance pursuant to a noticed public hearing at its meeting on July 16, 2026, and now desires to adopt the same.

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

SECTION 1. Recitals. The above recitals are incorporated by reference.

SECTION 2. Findings. The City Council finds that the adoption of regulations governing mobile, open-air, and sidewalk vending operations within Chapter 58 is necessary to promote public health, safety, and welfare. The City Council further finds that such regulations comply with state law, ensure accessibility, promote sanitation, and support fair business practices. The City Council further finds i) the limitations on hours of sidewalk vending are not unduly restrictive, and are not more restrictive than any limitations on hours of operation imposed by other vending uses; ii) the requirements maintain sanitary conditions; iii) the requirements are necessary to ensure compliance with disability access standards, including the Americans with Disabilities Act of 1990; iv) the City has met the requirements for requiring vendors to obtain a permit for vending from the City; v) requiring a vendor to possess a valid California Department of Tax and Fee Administration seller’s permit promotes accountability, safety, and payment of taxes; vi) requiring additional licenses, such as a Fresno County Environmental Health permit for the sales of food, promotes public health, safety, and welfare and is required by law; and vii) requiring compliance with other generally applicable laws is not only consistent with said laws, but allows for more effective enforcement of the same.

The City Council further finds that this ordinance is intended to comply with California Government Code sections 51036 through 51039, including Senate Bill 946 and subsequent amendments thereto, by regulating sidewalk vending only through objective health, safety, welfare, and accessibility standards that are directly related to legitimate governmental interests and are not intended to prohibit or unreasonably restrict sidewalk vending activity.

SECTION 3. CEQA. The City Council finds and determines that the adoption of an ordinance regulating and restricting mobile, open air, and sidewalk vending operations is not a “project” for the purposes of the California Environmental Quality Act (CEQA) as it establishes administrative activities, or otherwise clarifies uses associated with existing regulations including State regulations, that will not result in direct or indirect physical changes to the environment as contemplated by CEQA Guidelines section 15378. Further, this ordinance is exempt under section 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Here it can be seen with certainty that there is no possibility that the activity in question would have a significant adverse effect on the environment. Additionally, to the extent this action is determined to constitute a project subject to CEQA, this ordinance is categorically exempt from CEQA under Section 15308 of the CEQA Guidelines (Class 8) as an action taken by a regulatory agency to assure the maintenance, restoration, enhancement, or protection of the environment, specifically public health and sanitation. As such, this activity is not subject to CEQA.

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SECTION 4. Article VII is hereby added to Chapter 58 of the Sanger Municipal Code to read as follows:

Article VII. - Mobile, Open Air, and Sidewalk Vending Operations Sec. 58-200. Declaration of purpose.

The Council expressly finds that the vending of produce and prepared or prepackaged foods, goods, wares, and/or services on public streets, sidewalks, or alleys and on private property could potentially pose unsafe conditions and special dangers to the public health, safety, and welfare of the residents of the City. It is the purpose and intent of the Council, in enacting this article, to provide those persons who engage in those types of vending operations with clear and concise regulations to prevent safety, traffic, and health hazards, as well as to preserve the peace, safety, and welfare of the community.

Sec. 58-205. Definitions.

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
(a) “Business owner” shall mean any person, firm, or corporation, which owns or controls any interest in any business engaged in vending as defined in subsection (r) and (s) of this section.
(b) “Building complex” shall mean a grouping of any number of buildings that was comprehensively planned as a single or multi-phased project. Building complexes are characterized by shared ingress/egress and parking improvements and master planned utility infrastructure. Building complexes can be located on the same or separate parcel(s) of land.
(c) “Commissary” shall mean a food establishment in which food, containers, equipment, or supplies are stored or handled for use in motorized food wagons or conveyance. (d) “Conveyance,” as used in this chapter, shall mean any vehicle (except motorized food wagons, as defined below), trailer, cart, wagon, or stand, with or without wheels, which may be moved from one place to another under its own power or by other means. (e) “Fixed place of business” shall mean a commercial activity operating from an immoveable building or enclosed structure at a permanent location which complies with applicable City, State and Federal regulations.
(f) “Itinerant merchant,” for purposes of this chapter, shall mean any person who engages in a temporary business of selling and delivering goods, wares, or merchandise within the City, and who, in furtherance of such purpose, hires, leases, uses, or occupies any building structure, motor vehicle, tent, public rooms in hotels, lodging houses, apartments, shops, or any street alley, or other place within the City, for the exhibition and sale of such goods, wares, or merchandise, either privately or at public auction; provided that any person so engaged shall not be relieved from complying with the provisions of this chapter merely by reason of associating temporarily with any local dealer, trader, merchant, or auctioneer,

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or by conducting such transient business in connection with, as a part of, or in the name of any local dealer, trader, merchant, or auctioneer.
(g) “Mobile food vendor” shall mean any person that sells, or causes or allows another, whether as an employee or as an independent contractor leasing or renting equipment, to sell any food or drinks by means of a motorized food wagon or nonmotorized vehicle, such as catering truck, motorized cart, food truck, or other itinerant method. It includes a nonmotorized vehicle which is not self-propelled or which cannot be moved by a person pushing or pulling such nonmotorized vehicle. Where one person employs another person to sell food or drinks or where one person leases or rents equipment or a vehicle to another person to allow them to sell food or drinks, both individuals shall be considered mobile food vendors. Mobile food vendor shall not mean a sidewalk vendor as defined by this article.
(h) “Mobile vendor” shall mean a person conducting commercial activity from either a motorized or nonmotorized vehicle, or in conjunction with the same, offering goods for sale on a temporary, intermittent or seasonal basis in which customers approach the vehicle to make a purchase. This term includes mobile caterers, mobile food vendors, lunch wagons, eating cars, ice cream trucks, pushcarts, bicycle carts, motorized food wagon or conveyance. Notwithstanding, a mobile vendor does not include a sidewalk vendor. (i) “Mobile unit” shall mean any vehicle, truck, trailer, cart, pushcart, wagon, bicycle, dray, conveyance or structure on wheels, not firmly fixed to a permanent foundation, which is not required to have a license to operate issued by the California Department of Motor Vehicles.
(j) “Motor vehicle” shall mean any automobile, truck, trailer or other conveyance requiring a license issued by the California Department of Motor Vehicles. (k) “Motorized food wagon” shall mean any vehicle as defined in the California Vehicle Code, which is equipped and used for retail sales of prepared, prepackaged, or unprepared, unpackaged food or foodstuffs of any kind on any public street, alley, highway, or private street, alley, or property within the City of Sanger. For the purposes of this chapter, a motorized food wagon shall also include any trailer or wagon pulled by a vehicle. (l) “Open air vendor” shall mean a person conducting commercial activity from either a motorized or nonmotorized vehicle at a fixed location on private property, offering goods for sale on a temporary, intermittent or seasonal basis in which customers approach the vending operation to make a purchase. Open air vendor operations are not mobile enough to comply with the time requirements identified for mobile vendors and are therefore constrained to setting up operations at an approved fixed location. Open air vending includes commercial activity from a stall or booth, including food sales, and may include associated canopies, tables, chairs, serving tables, temporary signage, or displays affiliated with the same. Notwithstanding, an open-air vendor does not include a sidewalk vendor. (m) “Operator’s permit” shall mean either a mobile vendor permit, open air vendor permit, or sidewalk vendor permit as provided for in this article. (n) “Permittee” shall mean the person issued a permit to operate either a mobile or open air vending operation by the city.

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(o) “Persons” shall mean any person, business owner, firm, partnership, association, or corporation, and includes, but is not limited to, owners, operators, drivers, lessors, and lessees of motorized food wagons and conveyances.
(p) “Public sidewalk or street” shall mean all of those areas dedicated as public thoroughfares, including, but not limited to, roadways, parkways, medians, alleys, sidewalks and public ways or dedicated easements for public rights-of-way.
(q) “Sidewalk vendor” shall mean a person who sells food or merchandise from a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one’s person, upon a public sidewalk or other pedestrian path. A sidewalk vendor also includes a “roaming sidewalk vendor” who moves from place to place and stops only to complete a transaction, as well as a “stationary sidewalk vendor” who vends from a fixed location.
(r) “Vend” or “vending” shall mean the sale of any goods, wares, merchandise, prepared, prepackaged, or unprepared, unpackaged food or foodstuffs of any kind from private or public property.
(s) “Vendor” shall mean any person who sells, offers for sale, prepares, or distributes goods, merchandise, food, beverages, or services regulated under this article.

Sec. 58-210. Regulation of sales.

It is unlawful for any person to vend, or attempt to engage in vending, or to conduct business for the purpose of vending, or operate any vehicle or conduct any business for the purpose of vending, from any motor vehicle, motorized food wagon, mobile unit, or conveyance, that is parked, stopped, or standing upon any public street, alley, highway, or property, or private street, alley, or property within the City except in accordance with all applicable provisions of this chapter.

Sec. 58-215. Permit to operate—Mobile vendors.

A person desiring to engage in a mobile vendor operation, as defined by this article, shall submit a written application for a zoning clearance permit with all supporting information required by the City. Such application shall be accompanied by a non-refundable, non-transferable application fee in an amount as may be established by resolution of the Council. A zoning clearance permit shall be required to be renewed annually so that all information on file is current and a separate nonrefundable, nontransferable application fee shall annually be paid for such renewal application. Vendors must have the permit in their possession when vending. Additionally, the permittee shall display a City issued permit sticker upon each of their mobile units, motor vehicles, or motorized food wagons, to demonstrate compliance with the requirements of this article. For mobile vending not directly occurring from a mobile unit, motor vehicle, or motorized food wagon, such as may be the case for certain mobile food vendors, the permit must be prominently displayed at the point of sale in a location readily visible to the public and available for inspection.
(a) As part of the permit to operate application, the vendor or business owner shall provide the following:

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(1) Name, mailing address, and telephone number of applicant; (2) Presentation of a California driver's license, if any, or other photographic identification issued by a State or United States Federal agency establishing the applicant's age as 18 or older;
(3) Proof of current vehicle registration and a copy of an applicable vehicle insurance policy for any vehicles used in the vending activity;
(4) Four photographs (front, back and both sides) of the wagon, pushcart, motor vehicle, or other conveyance in its final condition to be used by the vendor. Photographs must clearly show the license plate of the vehicle photographs (showing different exterior views) of each motorized food wagon or conveyance;
(5) A copy of a current approved Fresno County Health Inspection or Permit for each vehicle or trailer to be used by the vendor. If the applicant operates a fleet, a separate permit must be provided for every unit, specifically identifying the vehicle by its vehicle identification number (VIN) or license plate;
(6) A copy of the vendor or business owner’s current business license certificate and applicable California Department of Tax and Fee Administration (CDTFA) Seller’s Permit;
(7) Business owners must show proof of payment to a commissary for the prior 12 months for all cases involving the reissuance of a permit; and proof of current payment for new vendors;
(8) Satisfactory proof of insurance as required by Section 58-260; (9) A description of the goods, wares, merchandise, products, or any other thing or representation of value on consignment which will be the subject of the applicant's peddling or itinerant merchant business or activity;
(10) Indemnification. As a condition of obtaining and maintaining a permit under this chapter, each permittee shall agree to defend, indemnify, and hold harmless the City, its officers, officials, employees, agents, and volunteers from and against any and all claims, demands, damages, liabilities, losses, costs, and expenses, including attorney's fees, arising out of or in any way connected with the permittee's operations under this chapter, except for claims arising solely from the gross negligence or willful misconduct of the City. The permittee shall execute a standard agreement to this effect in a form approved by the City, and this duty shall survive the expiration or revocation of said permit.
(11) For vendors whose primary business involves direct sales to minors, including ice cream truck operators, the owner or operator may be required to complete a Department of Justice (DOJ) Live Scan fingerprint background check where reasonably necessary to protect public safety. Any such requirement shall comply with applicable state and federal law regarding confidentiality and use of criminal history information.
(12) Issuance of Permit.

Upon the submission of a complete application, payment of the designated administrative cost-recovery fee, and verification of compliance with the objective requirements of this section, the Director shall issue the mobile vending permit within thirty (30) business days. The Director shall not deny an application based on subjective criteria or the number of permits previously issued.
(13) Application Identification.

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Applicants shall be permitted to provide either a valid Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) on the permit application. No application shall be denied solely on the basis that the applicant lacks a Social Security Number.
(b) A permit to operate shall be granted unless:
(1) The vendor or business owner fails to submit a complete application; (2) The vendor or business owner makes any omission, untrue statement or material misrepresentation in the application or provides fraudulent documentation with the application;
(3) The vendor or business owner has violated this article within the last 12 months; (4) Any vehicle proposed to be operated lacks the required equipment, is improperly licensed or is unsafe;
(5) The vendor or business owner has not otherwise complied with this article.

Sec. 58-220. Conditions to operate—Mobile vendors.

A person who has obtained a zoning clearance permit to operate a mobile vending operation shall comply with all of the required conditions below or be subject to revocation of the permit as described in Section 58-265.
(a) No permittee shall engage in business activity between the hours of 10:00 p.m. and 8:00 a.m., except upon invitation of the occupant or business owner, and subject to the stricter residential hour limitations set forth in Section 58-255(c)(1). (b) No permittee shall solicit or attempt to solicit on any premises on which a notice or sign is clearly posted prohibiting solicitations or indicating the owner or occupant desire not to be solicited.
(c) The peddling of goods, merchandise, wares, or foods within a public or private parking lot is prohibited, unless the permittee can provide written permission from the property owner of the subject property to be located at said location. (d) The permit shall be exhibited by the permittee whenever requested by a law enforcement officer or at the request of any citizen the permittee is engaged in selling or soliciting. (e) The permittee shall maintain a valid City business license certificate at all times. (f) No permittee shall peddle goods from any motorized vehicle that is not properly licensed and insured as required by the State of California.
(g) Any permittee engaged in the sale of tangible personal property that would normally be subject to sales tax if sold at retail shall maintain and have available for review, their California Sellers Permit issued by the California Department of Tax and Fee Administration.
(h) No permittee shall intentionally or deliberately obstruct the pedestrian access width required by applicable federal and state law and shall not obstruct, impede, or interfere with accessible routes, curb ramps, driveways, or other accessibility improvements.

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(i) No permittee shall peddle any prepackaged food unless the items have all State and Federally required food labels and a Fresno County Environmental Health permit, to sell such items.
(j) Except as otherwise provided, no permittee shall peddle any goods, merchandise, wares or foods by sitting, standing or walking on a public street, or upon a median or parkway within a public street or right-of-way.
(k) No permittee shall peddle or attempt to peddle to the occupant(s) of a vehicle in a public street or highway.
(l) The permittee may not park, store, or maintain a vehicle on a residentially zoned parcel in the City or a public street in a residential area.
(m)The permittee shall comply with all California State Vehicle Code Requirements. (n) Except for bicycle carts, peddling is prohibited from or within a public street or highway. (o) The use of amplified music and horns must comply with the City’s noise regulations as specified in Chapter 38 of the Sanger Municipal Code.
(p) Display of permit.

No mobile vendor shall operate within the City without prominently displaying a valid City-issued permit sticker or badge on their person or vehicle in a manner visible to the public at all times during operation.
(q) Display of identification information.

The mobile vendor’s name, business name, telephone number, City permit number, City business tax certificate, and Fresno County Department of Public Health permit number shall be clearly displayed on both sides of any vehicle used for vending. For trucks, such information shall also be displayed on the rear of the vehicle. Lettering shall be of sufficient size and contrast to be clearly visible from a distance of at least fifty (50) feet and shall comply with applicable County requirements.
(r) Safe transaction area.

All mobile vendor transactions occurring in the public right-of-way shall take place on the public sidewalk side of the vehicle. No vendor shall conduct business in a manner that requires customers to stand or wait in any portion of the street or vehicular travel lane. (s) Photographic verification.

The four photographs required under Sec. 58-215(a)(4) must clearly show the vehicle’s license plate and confirm that the business name and contact information are permanently visible on both sides of the unit.
(t) High-Density Pedestrian and Safety Zones.

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To ensure the objective health and safety of the public and maintain unhindered emergency access, vending is subject to the following location-based safety standards:
(1) ADA Path of Travel: No vendor shall operate on any public sidewalk where the placement of their conveyance reduces the remaining clear, unobstructed pedestrian path of travel to less than four (4) feet.
(2) Emergency Access Clearance: No vendor shall operate within fifteen (15) feet of any fire hydrant, fire department connection (FDC), building entrance/exit, or emergency access lane.
(3) Sight Distance Triangles: Vending is prohibited within thirty (30) feet of any intersection or crosswalk to ensure that drivers and pedestrians have an unobstructed line of sight, as determined by the City Engineer.
(4) High-Traffic Congestion Zones: To prevent dangerous sidewalk “bottlenecks,” stationary vending is prohibited on any sidewalk that is less than eight (8) feet in total width that is adjacent to an arterial roadway, or within any area where the remaining unobstructed pedestrian path travel would be reduced to less than five (5) feet. (5) Certified Farmers’ Markets and Special Events: Pursuant to state law, no mobile vendor shall operate within one hundred (100) feet of a permitted Certified Farmers’ Market or a City-approved Special Event during its hours of operation unless expressly authorized by the event permit.
(u) No permittee shall dispose of any fats, oils, grease, or greywater into the City’s storm drain system, sewer system, or onto public private property. All such materials must be disposed of at an approved commissary or disposal site.
(v) A sidewalk vending permit issued pursuant to this article may only be suspended or revoked upon the fourth or subsequent violation of this article within a consecutive twelve (12) month period from the date of the first violation. No permit shall be suspended or revoked without prior written notice of the City's intent to revoke, which shall state the grounds for such action, and provide the permittee with an opportunity for an administrative hearing conducted in accordance with the City’s standard administrative appeal procedures.

Sec. 58-225. Parking and stopping restrictions—Mobile vendors. (a) A mobile vendor may locate and operate in the public right-of-way subject to the following conditions:
(1) A vendor shall not operate within 100 feet of any street intersection. (2) No mobile vendor shall stop to conduct his or her business or activity from a motor vehicle or mobile unit within fifteen (15) feet of another mobile vendor who has already stopped to conduct business.
(3) A mobile vendor not on private property (such as in the public right-of-way) shall not remain stationary at the same location for more than 30 minutes and shall not return to the same block face during the same calendar day, subject to the following exception:

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(i) School Zones: As allowed by the school district in writing, where mobile vendors do not interfere with school functions, vendors may operate in designated drop-off and pick-up zones for up to two (2) hours daily to provide food service on the sidewalk side of the vehicle only.
(b) All mobile vendor operations shall additionally comply with the spacing requirements set forth in Section 58-226.

Sec. 58-226. Spacing requirements—Mobile and open-air vendors. (a) Objective Operational Compatibility Standards.

Mobile vendors and open-air vendors shall operate in a manner that does not obstruct pedestrian circulation, create traffic hazards, interfere with emergency access, or impede ingress and egress to adjacent businesses or properties. The Director of Community Development may impose objective operational conditions necessary to mitigate documented health, safety, circulation, fire access, or ADA accessibility impacts. (b) Residential proximity restrictions.

To minimize neighborhood noise and traffic, no mobile vendor or open-air vendor shall operate within one hundred (100) feet of a residential use, except:
(1) Caretaker residences;
(2) Residential units within a vertical mixed-use development; (3) Permitted farmers’ markets or special events.
(4) Operations otherwise authorized by the City through a valid permit or written authorization
This subsection shall not apply to sidewalk vendors regulated pursuant to Section 58-225. (c) School proximity restrictions.

No mobile vendor or open-air vendor shall operate within one hundred (100) feet of a school.

Exceptions:
(1) Vendors selling only fresh produce;
(2) Permitted farmers’ markets or special events;
(3) Operations authorized in writing by the school.
(d) Motorized vendor enhanced school restriction.

No motorized food vendor shall operate within one hundred (100) feet of a school entrance, exit, or designated student drop-off/pick-up zone during active school hours unless authorized in writing by the school.

Sec. 58-230. Condition/appearance of site and motorized food wagon and conveyance— Mobile vendors.
(a) Any permitted mobile vendor who stops at a site shall maintain the property as follows:
(1) The site shall be maintained in a safe and clean manner at all times.

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(2) No tables, chairs, fences, shade structures, or other site furniture (permanent or otherwise), or any freestanding signs shall be permitted for the customers of the business.
(i) An exception to this requirement is a mobile food vendor legally operating at an event allowing said uses or site furniture or signs consistent with an approved use permit, temporary use permit, or other permit or approval issued by the City that specifically allows for the use.
(3) Exterior storage or display of surplus refuse, equipment, materials, goods, wares, or merchandise associated with the vendor is prohibited.
(b) Any permitted mobile vendor shall comply with the following standards for the condition/appearance of their motorized food wagon and conveyance:
(1) The vendor shall display, in plain view and at all times, current permits and licenses in or on their vehicle.
(2) Any motorized food wagon or conveyance used in the course of vending shall be entirely self-sufficient in regards to gas, water, and telecommunications. (3) Should any utility hook-ups or connections to on-site utilities be required, the vendor shall be required to apply for appropriate permits to ensure building and public safety and consistency with applicable building and zoning regulations. (4) The vendor shall not discharge items from any motorized food wagon or conveyance vehicle onto the sidewalk, gutter, storm inlets, or streets. (c) Any permitted mobile vendor shall comply with the following sanitation standards. (1) All motorized food wagons or conveyances shall operate out of a commissary pursuant to the requirements of the California Health and Safety Code. (2) All motorized food wagons or conveyances shall be equipped with refuse containers large enough to contain all refuse generated by the operation of such a vehicle, and the vendor of the motorized food wagon or conveyance shall pick up all refuse generated by such operation within a twenty-five (25) foot radius of the vehicle before such vehicle is moved. No vendor shall dispose of any trash or refuse in any such public or private trash receptacle other than a trash receptacle owned, operated, or otherwise provided by and under the control of such vendor.
(3) A motorized food wagon or conveyance shall comply with California Health and Safety Code regarding the availability of adequate toilet facilities for use by food service personnel.
(d) Specialized safety requirements for Ice Cream trucks Pursuant to California Vehicle Code 22456, all ice cream trucks must be equipped with “WARNING” and “CHILDREN CROSSING” signs mounted on both the front and rear

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of the vehicle. Each sign shall be at least 12 inches high by 48 inches wide, with dark letters at least four inches in height on a sharply contrasting background.

Sec. 58-235. Permit to operate—Open air vendors.

A person desiring to engage in an open air vendor operation, as defined by this article, shall submit a written application for a use permit with all supporting information required by the City.

Such application shall be accompanied by a nonrefundable, nontransferable application fee in an amount as may be established by resolution of the Council. Any such permit shall be required to be renewed annually, and a separate nonrefundable, nontransferable application fee shall be paid annually for such renewal application. Vendors must have the permit in their possession when vending. There must be at least one vendor with a valid permit present whenever vending is taking place.
(a) As part of the permit to operate application, the vendor or business owner shall provide the same information as specified in Section 58-215(a). In addition, the applicant must also provide the following:
(1) An affidavit in a form approved by the City from the property owner (if other than self) permitting the vendor to locate on the site;
(2) A site plan, drawn to scale and with dimensions, indicating the location of all existing buildings, structures, driveways, parking spaces, traffic controls, and improvements, and the location or areas where the proposed vending activity, structures, and improvements related to the vending activity will be located upon the site; (b) The Community Development Director shall review all open-air vending applications for compliance with this article. The Director may deny an application, or revoke an existing permit, if any of the following grounds exist:
(1) The business owner or vendor fails to submit a complete application; (2) The business owner or vendor makes any omission, untrue statement or material misrepresentation in the application or provides fraudulent documentation with the application;
(3) The business owner or vendor has violated this article within the last 12 months; (4) Any vehicle proposed to be operated lacks the required equipment, is improperly licensed or is unsafe;
(5) The business owner or vendor has not otherwise complied with this article. (c) Any use permit request for an open air vending operation shall be processed in accordance with Sections 90-998 through 90-100 of the Sanger Municipal Code. (d) Notwithstanding subsections (b) and (c), and to the extent the proposed use is not otherwise subject to Section 58-235, the Director of Community Development may instead issue a temporary use permit for a variety of short-term activities. (1) Temporary open-air vending. Short-term activities include the following types of temporary uses:

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(i) Publicly owned property. Events that are to be conducted on publicly owned property for three or less consecutive days within a 90-day period and are sponsored by educational, fraternal, religious, or service organizations directly engaged in civic or charitable efforts, or to tax exempt organizations in compliance with Section 501(c) of the Federal Revenue and Taxation Code. (ii) Any other temporary use that the Community Development Director may determine is similar in nature.
(2) Required findings. The Director may approve a temporary use permit application, with or without conditions, only if all of the following findings are made:
(i) The operation of the requested temporary use at the location proposed and within the time period specified would not jeopardize, endanger, or otherwise constitute a menace to the public convenience, health, safety, or general welfare; (ii) The proposed location is adequate in size and shape to accommodate the temporary use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the parcel;
(iii) The proposed parcel is adequately served by streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the temporary use would or could reasonably be expected to generate; and (iv) Adequate temporary parking to accommodate vehicular traffic to be generated by the use would be available either on site or at alternate locations acceptable to the Director.
(3) Appeals. Any applicant or person claiming to be directly and adversely affected by any action of the Director may file an appeal in accordance with Section 58-270.

Sec. 58-240. Conditions to operate—Open-air vendors.
(a) Open-air vending operations shall comply with the following objective health, safety, and welfare standards:
(1) Property Owner Authorization.

An open-air vendor operating on private property shall maintain written authorization from the property owner or authorized representative and shall provide such authorization to the City upon request.
(2) ADA Accessibility.

A minimum unobstructed pedestrian path of travel of four (4) feet shall be maintained at all times in compliance with the Americans with Disabilities Act and applicable accessibility regulations.
(3) Fire and Emergency Access.

No vending operation shall:

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(i) Be located within fifteen (15) feet of a fire hydrant, fire department connection, fire escape, or emergency access point;
(ii) Obstruct any required fire lane, emergency access route, building entrance, or exit; or
(iii) Interfere with emergency vehicle access or emergency operations. (4) Traffic and Visibility Safety.

No vending operation shall be located in a manner that obstructs vehicular sight distance at intersections, driveways, crosswalks, or pedestrian crossings. (5) Pedestrian Safety.

Vending operations shall not obstruct pedestrian circulation, create trip hazards, block curb ramps, or interfere with accessible routes.
(6) Site Maintenance and Refuse Control.

Vendors shall maintain the immediate area surrounding the vending operation in a clean and sanitary condition. Vendors selling food or beverages for immediate consumption shall provide a waste receptacle for customer use and shall remove litter generated by the operation prior to leaving the site.
(7) Food Safety Compliance.

Vendors selling food products shall maintain all permits and approvals required by Fresno County Environmental Health, the California Retail Food Code, and other applicable state and local regulations.
(8) Sales Tax Compliance.

Vendors engaged in the sale of taxable goods shall maintain a valid California Seller’s Permit and provide proof of such permit upon request.
(9) Utility and Waste Disposal.

No vendor shall discharge wastewater, grease, refuse, or other materials onto public or private property except as authorized by applicable law. All waste shall be disposed of in accordance with state and local regulations.
(10) Compliance with Applicable Laws.

All open-air vending operations shall comply with applicable federal, state, county, and local laws and regulations.
(b) All open-air vendor operations shall comply with the spacing requirements set forth in Section 58-226.

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Sec. 58-245. Condition and appearance—Open air vendors. (a) Any permitted open-air vendor who is located at an approved fixed location shall maintain the property as follows:
(1) The site shall be maintained in a safe and clean manner at all times. (2) No tables, chairs, fences, shade structures, or other site furniture (permanent or otherwise), or any freestanding signs shall be permitted for the customers of the business.
(3) Exterior storage or display of surplus refuse, equipment, materials, goods, wares, or merchandise associated with the vendor is prohibited.
(b) Any permitted open air vendor shall comply with the following standards for the condition and appearance of their motorized food wagon and conveyance. (1) The vendor shall display, in plain view and at all times, current permits and licenses in or on their vehicle.
(2) Any motorized food wagon or conveyance used in the course of vending shall be entirely self-sufficient in regards to gas, water, and telecommunications. (3) Should any utility hook-ups or connections to on-site utilities be required, the vendor shall be required to apply for appropriate permits to ensure building and public safety and consistency with applicable building and zoning regulations. (4) The vendor shall not discharge items from any motorized food wagon or conveyance vehicle onto the sidewalk, gutter, storm inlets, or streets.

Sec. 58-250. Permit to operate—Sidewalk vendors.

A person desiring to engage in a sidewalk vendor operation, as defined by this article, shall submit a written application for a zoning clearance permit with all supporting information required by the City. Such application shall be accompanied by a non-refundable, non-transferable application fee in an amount as may be established by resolution of the Council. Any such zoning clearance permit shall be required to be renewed annually, and a separate nonrefundable, nontransferable application fee shall be paid annually for such renewal application. (a) As part of the permit to operate application, the vendor or business owner shall provide the following to the City:
(1) Identification in the form of a California driver’s license or identification number, an individual taxpayer identification number, or a municipal identification number in lieu of a social security number if the City otherwise requires a social security number for the issuance of a permit or business license.
(2) A copy of the vendor or business owner's current business license certificate and applicable California Department of Tax and Fee Administration (CDTFA) Permit. (3) Any additional licenses from other state or local agencies to the extent required by law, such as a Fresno County Environmental Health permit for the sales of food.

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(4) Any other information to ensure compliance with other generally applicable laws. (5) Information on operations, including, but not limited to, any of the following:
(i) The name and current mailing address of the sidewalk vendor. (ii) A description of the merchandise offered for sale or exchange. (iii) A certification by the vendor that to their knowledge and belief, the information contained on the application is true.
(iv) The California seller’s permit number (California Department of Tax and Fee Administration sales tax number) of the sidewalk vendor. (v) If the sidewalk vendor is an agent of an individual, company, partnership, or corporation, the name and business address of the principal. (6) A signed Indemnification and Hold Harmless Agreement as described in Section 58- 215(a)(10).
(b) A permit to operate shall be granted unless:
(1) The vendor or business owner fails to submit a complete application; (2) The vendor or business owner makes any omission, untrue statement or material misrepresentation in the application or provides fraudulent documentation with the application;
(3) The vendor or business owner has violated this article within the last 12 months; or (4) The vendor or business owner has not otherwise complied with this article.

Sec. 58-255. Conditions to operate—Sidewalk vendors.

A person conducting a sidewalk vending operation shall comply with all of the required conditions below or be subject to revocation of the permit as described in Section 58-265. (a) No sidewalk vendor shall operate without first obtaining and maintaining a valid City business license certificate and a sidewalk vendor’s permit. (b) Each sidewalk vendor shall display the required sidewalk vendor’s permit in a conspicuous location on the sidewalk vendor’s person or stand at all times while the sidewalk vendor is operating.
(c) Operating Restrictions. It shall be unlawful and a violation of this chapter for any sidewalk vendor to:
(1) Operate outside the authorized hours of operation. In residential zones, authorized hours shall not exceed 8:00 a.m. to 9:00 p.m. In nonresidential zones, authorized hours shall be permitted to match, and shall not be more restrictive than, the operating hours of other licensed commercial businesses or uses operating on the same street segment; (2) Operate as a stationary sidewalk vendor at any time in any residential zone; (3) Leave unattended any stand at any time while operating, or store, park or leave unattended any stand at any time outside of operating hours on any public sidewalk, pedestrian walkway, or other public place;

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(4) Sell food without first obtaining and thereafter maintaining the required permit issued by the Fresno County Environmental Health permit or any other permit or license required pursuant to Part 7 (commencing with Section 113700) of Division 104 of the Health and Safety Code;
(5) Sell food for immediate consumption unless there is a litter receptacle available for patrons’ use;
(6) Leave any location without first disposing of all trash or refuse generated by operating in such location;
(7) Allow any items used in connection with the operation to be placed or stored anywhere other than in, on, or under the stand, or on the person of the sidewalk vendor; (8) Operate from a stand other than the stand authorized pursuant to the sidewalk vendor’s permit;
(9) Set up, maintain, or permit the use of any additional table, crate, carton, rack, or any other device to increase the selling or displaying capacity of a stand without having obtained express authorization to do so pursuant to the required sidewalk vendor’s permit;
(10) Solicit or conduct business with any person in a motorized vehicle; (11) Sell anything other than the specific food, beverages or merchandise authorized to be sold as part of the operation pursuant to the required sidewalk vendor’s permit; (12) Create any unnecessary noise in violation of this Code, including but not limited to the use of amplified sound or horns, except that such conduct, when engaged in by a sidewalk vendor while operating, shall be punishable only by the administrative fines established pursuant to this chapter;
(13) Operate in a manner that obstructs or blocks paths of travel, restricted to the following minimum public safety clearances: (a) fifteen (15) feet from any fire hydrant or fire department connection; (b) five (5) feet from any transit stop or transit shelter; (c) five (5) feet from any building entrance, exit, or commercial display window; (d) five (5) feet from the outer edge of any driveway or vehicular curb cut; or (e) within four (4) feet of any other sidewalk vendor to ensure a continuous, unobstructed path of travel; (14) Operate on any public sidewalk or pedestrian path or walkway in a manner that does not maintain 4 feet in width of clear space on the sidewalk, path or walkway, or which otherwise is not in compliance with the Americans with Disabilities Act of 1990; (15) No sidewalk vendor shall operate within fifty (50) feet of any property line of a public assemblage facility, including stadiums, arenas, or outdoor concert venues, during an event or within one hour before or after a scheduled event, where such restriction is necessary to ensure adequate emergency vehicle ingress/egress and prevent dangerous pedestrian congestion on public pathways.

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(16) Except as otherwise provided in Section 58-225(a)(3)(ii) of this code, no sidewalk vendor shall operate within one hundred (100) feet of a school site entrance, exit, or designated student drop-off/pick-up zone during active school hours or within thirty minutes before or after normal school operating hours, to minimize vehicular traffic hazards and ensure student safety.
(17) Operate in any public street (i.e., in the street itself and not on the sidewalk), or on any median;
(18) Operate as a stationary sidewalk vendor in any city park where the city has entered into an exclusive concessionaire agreement with a private entity for the sale of food or merchandise. Roaming sidewalk vendors may operate within city parks, provided they comply with all posted park operating hours and do not obstruct, block, or otherwise impede pedestrian pathways, multi-use trails, or Americans with Disabilities Act (ADA) access ramps;
(19) Operate within a parking lot, except as expressly authorized pursuant to the required sidewalk vendor’s permit based on a finding that such operation will not obstruct vehicular ingress, egress, or parking, or adversely affect public health or safety; (20) Pour, liquid-waste discharge, dump, or otherwise dispose of any grease, oil, wash water, chemicals, food residue, or any other foreign substance into any public storm drain, gutter, catch basin, sanitary sewer manhole, or public utility facility; (21) Operate in any area or manner that would obstruct or interfere with disability access standards or accessibility to any facility or area that is provided pursuant to requirements of or in compliance with the Americans with Disabilities Act of 1990; or (22) Operate in violation of any applicable law or regulation. (d) Exceptions. The geographic and time restrictions set forth in subsections (c)(15) and (c)(16) of this section shall not apply to a sidewalk vendor operating in strict compliance with the designated school drop-off and pick-up area exception established under Section 58- 225(a)(3)(i).

Sec. 58-260. Insurance requirements.

To obtain an operator’s permit from the City, a stationary sidewalk vendor operating on public property must demonstrate that it maintains, at its sole expense, liability insurance as established by the Director of Community Development from time to time. This insurance requirement shall not apply to non-stationary (roaming) sidewalk vendors. Nothing in this article shall be construed to create a duty or liability on the part of the City arising from the issuance or denial of any permit regulated under this article.

Sec. 58-265. Revocation of permits.

Except as strictly limited for sidewalk vendors in Section 58-280(a)(1)(iv), any permit issued by the City under this article may be revoked by the issuing City department or body for the following, and no new permit shall be issued after revocation for 12 months:

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(a) The existence of any fact which, at the time of application, would have caused the City to deny the application, whether such fact existed at the time of the application or occurred thereafter;
(b) Any violation of laws relating to the requirements for operation of a mobile or open air vending operation;
(c) Failure to maintain insurance as required by this article; (d) Failure to maintain a mobile or open-air vending operation in a safe and sanitary condition such that the vehicle could pass, at any time throughout the permit period, the inspection required for the issuance of a permit;
(e) Fraud, misrepresentation, or a false statement made in the course of applying for a permit or carrying on the business of a vendor;
(f) Conviction of a crime substantially related to the permitted activity and only to the extent permitted by California law.
(g) Conducting the business in an unlawful manner or in such a manner as to constitute a breach of the peace, trespass, or to constitute a menace to the health, safety, or general welfare of the public; or any violation of this article. (h) Prior to revocation of any permit issued pursuant to this article, the City shall provide written notice to the permittee identifying the grounds for the proposed revocation and the right to appeal pursuant to Section 58-270.
(i) The City may temporarily suspend a permit prior to appeal only where the City determines that continued operation constitutes an immediate threat to public health or safety Sec. 58-270. Appeals.

An operator or applicant for an operator’s permit shall be entitled to appeal the City’s decision to revoke or deny a permit by filing a written notice of appeal with the City Clerk within ten (10) days from the date the notice of revocation or denial is mailed. The appeal shall set forth the reasons why such action is not proper. Failure to set forth specific reasons why the action is improper or to timely file such appeal shall constitute a waiver of the right to appeal, and the proposed adverse action shall become final. The appeal shall be conducted pursuant to the provisions of Chapter 90 of the Zoning Code.

Sec. 58-275. Exceptions.

The provisions of this article shall not apply to:
(a) Any person engaged in vending conducted in connection with the operations of a Statecertified open-air market or an authorized street fair or event under a special event permit, lease, real property license, agreement (including a concession, or a preexisting business identified by the Council in this Chapter 58 as previously adopted ordinances governing vending operations, or other entitlements or approvals issued by the City).

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(b) Any person delivering any goods by vehicle where such goods have been ordered in advance for such delivery from any business located at a permanent location and which goods are being delivered from such location to the customer by vehicle, regardless of the point of sale.
(c) Persons invited to call upon private residences or businesses that operate from a fixed place of business located in or outside the City limits.
(d) Persons selling or soliciting sales of daily or weekly newspaper as defined by the California Government Code.
(e) Persons soliciting or canvassing on behalf of or against any candidate for public office or any ballot initiative.
(f) Persons engaged in selling or soliciting sales as a fundraiser for a local school, civic or nonprofit corporation. For the purposes of this section, local shall mean within a sevenmile radius of the City limits. (g) Persons engaged in religious solicitation or other protected religious activities. (h) Young entrepreneurs. It is the Council’s policy to encourage youth entrepreneurship and community engagement by exempting minors under the age of 18 from this chapter when conducting limited, low-impact sales activities. Notwithstanding any other provision of this Code, this exemption allows occasional vending for lemonade stands, baked goods, crafts, and similar small-scale activities as authorized by the Development Services Director or designee without the burden of full commercial permitting or regulatory requirements including a business license certificate. To qualify, sales must be located on a residential property owned or lawfully occupied by the youth entrepreneur, or on a commercial or similar property where the owner or authorized agent has granted permission for the activity. Sales may not include alcoholic beverages, obstruct public right of way or sidewalks, or create traffic or safety hazards (such as having an open flame). Activities involving potentially hazardous foods shall comply with all Fresno County Environmental Health requirements. Sales shall not exceed a cumulative total of 25 days within a rolling 12-month period. Temporary use of portable tables, chairs, shade structures, or other site furniture, and signs is permitted.

Sec. 58-280. Penalties.

Any person violating any provisions or failing to comply with any of the mandatory requirements of this article is subject to the following penalties:
(a) Violations are subject to enforcement by any means authorized in this Code, including but not limited to the administrative enforcement provisions applicable to zoning and regulatory violations of this Municipal Code, as well as the procedures established in Sections 58-265 through 58-285 of this article. Notwithstanding, said enforcement shall be limited for sidewalk vendors as follows:
(1) A violation of sidewalk vending requirements, other than failure to possess a valid sidewalk vending permit, is only punishable by the following:

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(i) An administrative fine of one hundred dollars ($100.00) for a first violation. (ii) An administrative fine of two hundred dollars ($200.00) for a second violation within one year of the first violation.
(iii) An administrative fine of five hundred dollars ($500.00) for each additional violation within one year of the first violation.
(iv) Rescission/revocation of a sidewalk vending permit for the term of that permit upon the fourth violation or subsequent violations.
(2) Vending without a sidewalk vending permit issued by the City is only punishable by the following:
(i) An administrative fine of one hundred dollars ($100.00) for a first violation. (ii) An administrative fine of two hundred dollars ($200.00) for a second violation within one year of the first violation.
(iii) An administrative fine of five hundred dollars ($500.00) for each additional violation within one year of the first violation.
(iv) Upon proof of a valid sidewalk vending permit issued by the City, any administrative fines imposed under this subsection for vending without possessing a copy of the permit shall be reduced to the administrative fines set forth in subsection (a)(1).
(3) All fines imposed on sidewalk vendors shall be subject to an ability-to-pay determination as described in California Government Code Section 51039(f).

Concurrently with issuing a citation for such fines to a person, the City shall provide the person with notice of the right to request an ability-to-pay determination and shall make available instructions or other materials for requesting an ability-to-pay determination.
(b) Revocation of permit to operate or conditional permit to operate shall be executed in strict accordance with the criteria and hearing procedures defined in Section 58-265. (c) Impoundment.
(1) Any City enforcement officer, including any peace officer or Code Enforcement officer, is authorized to impound equipment, carts, food, goods, or merchandise of any mobile vendor, open-air vendor, or sidewalk vendor whose operations constitute an immediate, documented hazard or danger to public health or safety. For food vendors, the open dumping of greywater, grease, or hazardous waste, or the holding of potentially hazardous foods at unsafe temperatures in direct violation of the California Retail Food Code, shall constitute an immediate threat to safety justifying immediate impoundment of perishable items and related food preparation equipment. Written notice of the seizure, including instructions on how to retrieve the property and file an appeal, shall be provided immediately to the vendor or person in possession.

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(2) The City shall store impounded vending equipment, carts, goods, or merchandise for a minimum of thirty (30) days. If the property is not claimed within that time period, the property will be considered legally abandoned and the City may dispose of the property.
(3) The City may immediately dispose of impounded materials that are perishable or cannot be safely stored.
(4) Any costs incurred in the salvage, disposal, or storage of impounded property may be assessed against any responsible person.
(5) Any owner of impounded vending equipment, carts, food, goods, or merchandise may appeal the impoundment in writing, along with the payment of any appeal fee established by City Council resolution, except that the City Manager may instead choose to designate the City’s Director of Community Development as a hearing officer.
(6) Prior to the expiration of the thirty (30) day holding period or before any appeal related to impoundment becomes final, any person claiming ownership of vending equipment, carts, goods, or merchandise that has been impounded may reclaim such materials upon payment in full of all applicable impound fees incurred and proper proof of ownership.

Any unclaimed items will be considered abandoned and forfeited to the City after thirty (30) days following impoundment, and may, in the City’s Director of Community Development’s discretion, be disposed of as appropriate under applicable state law. (d) Decriminalization.

Notwithstanding any other provision of the Sanger Municipal Code to the contrary, a violation of any provision of this article regulating sidewalk vending shall not constitute an infraction or a misdemeanor, and no person shall be subject to criminal arrest, prosecution, or imprisonment for a violation of this article. Enforcement of sidewalk vending regulations shall be limited exclusively to the administrative fines, impoundment protocols, and remedies explicitly set forth in this section.

Sec. 58-285. Enforcement.

The provisions of this article may be enforced by any peace officer, Code enforcement officer, or the Director of Community Development or designee. Enforcement of this article shall be conducted in a manner consistent with applicable state law governing sidewalk vending, including California Government Code sections 51036 through 51039.

SECTION 5. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this Ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional.

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SECTION 6. Effective Date. This Ordinance shall be effective on the thirty-first day (31st ) after its adoption.

This Ordinance was introduced for a first reading, by title only, at a regular meeting of the City Council of the City of Sanger held on the 16th day of July, 2026.

PASSED AND ADOPTED following a second reading, by title only, at a regular meeting of the City Council of the City of Sanger on the 6
th day of August, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
___________________________ ___________________________ Lina Martinez, City Clerk Frank Gonzales, Mayor
City of Sanger City of Sanger

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For the Meeting of: August 6, 2026
Agenda Item No.: G.1.

City of Sanger
Report to the City Council
To: City Council
From: Virginia Harmon, Finance Director
Subject: Fiscal Year 2024 Annual Audit Financial Report and Single Audit.

Recommendation: That the City Council receive and file the Annual Audit Financial Reports and Single Audit for Fiscal Year 2024 as prepared by CPA firm, Ryan P. Jolley, Certified Public Accountants.

Conflict of Interest:

None Known.

Recommendation:

That the City Council receive and file the Annual Audit Financial Reports and Single Audit for Fiscal Year 2024 as prepared by CPA firm, Ryan P. Jolley, Certified Public Accountants.

Executive Summary/Background:

These financial statements have been prepared in accordance with generally accepted auditing standards using the accounting principles, present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City for the fiscal year ending June 30, 2024.

The city is required to conduct an outside audit of its financial statements and processes.

Additionally, as the City received more than $750,000 in federal grants, a Single Audit is also required of federal grant funding. A member of Ryan P. Jolley, Certified Public Accountants will attend the council meeting and present the financial statements and findings to the City Council and the public.

Reason for Recommendation:

It is required by City of Sanger Municipal Code that the financial records be audited and accepted by the City Council each year, as well as being a prudent financial management tool. It is also required that if a city receives federal grant funds over $750,000, a single audit be conducted and filed with the California State Controller’s office.

Fiscal Impact:

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None noted
Alternatives:

None noted
Actions Following Approval:

Upon receipt of the annual audit, materials will be posted to the City’s website for public use.

Attachments:

1. 2023-2024 Audited Financial Statements

2. 2023-2024 Single Audit, Related Reports & Corrective Action Plan

3. 2023-2024 Sanger City Management Comment

4. 2023-2024 Sanger City Management Report

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ATTACHMENT 1

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City of Sanger | CA
Financial Statements
For the Year Ended June 30, 2024

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CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Financial Statements

TABLE OF CONTENTS
PAGE

FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................................................ 1 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ............................................................................................................................................ 6 Statement of Activities ................................................................................................................................................. 7 Fund Financial Statements:

Governmental Funds:

Balance Sheet ......................................................................................................................................................... 9 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................... 10 Statement of Revenues, Expenditures and Changes in
Fund Balances .................................................................................................................................................... 11 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................ 12 Proprietary Funds:

Statement of Net Position .................................................................................................................................... 13 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 14 Statement of Cash Flows ...................................................................................................................................... 15 Fiduciary Funds:

Statement of Fiduciary Net Position .................................................................................................................... 17 Statement of Changes in Fiduciary Net Position .................................................................................................. 18 Notes to the Basic Financial Statements ............................................................................................................................ 20

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CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Financial Statements
TABLE OF CONTENTS (Continued)
PAGE
Required Supplementary Information:

Budgetary Comparison Schedules:

General Fund ............................................................................................................................................................... 60 Measure S Sales Tax – Major Special Revenue Fund .................................................................................................. 61 Notes to the Budgetary Comparison Schedules .......................................................................................................... 62 Pension Plan:

Cost Sharing Defined Benefit Pension Plan – Miscellaneous and Safety Plan:

Schedule of the City’s Proportionate Share of the Net Pension Liability .................................................................... 64 Schedule of Contributions ........................................................................................................................................... 65 Combining Fund Financial Statements
Nonmajor Governmental Funds:

Description of Nonmajor Funds .................................................................................................................................. 67 Combining Balance Sheet ............................................................................................................................................ 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................... 71 Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................................................ 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................... 76 Nonmajor Debt Service Fund:

Combining Balance Sheet ............................................................................................................................................ 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...................................................... 81 Internal Service Funds:

Description of Internal Service Funds ......................................................................................................................... 82 Combining Statement of Net Position......................................................................................................................... 83 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................................. 84 Combining Statement of Cash Flows ........................................................................................................................... 85

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FINANCIAL SECTION

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RYAN P. JOLLEY

A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS Ryan P. Jolley C.P.A.

Bryant L. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Brandon J. Lang C.P.A.

Lan T. Kimoto
Kali A. Kaakah
1753 E. FIR AVENUE FRESNO, CALIFORNIA 93720 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT
To the City Council
City of Sanger, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Sanger, (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City of Sanger’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Sanger, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is

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2 a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Sanger’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Sanger’s ability to continue as a going concern for a reasonable period of time.

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

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

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 60-62 and the schedule of the City’s proportionate share of the net pension liability and schedule of contributions on pages 64-65 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Sanger’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United

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3 States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 31, 2026 on our consideration of the City of Sanger’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Sanger’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Sanger’s internal control over financial reporting and compliance.

July 31, 2026

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4 Basic Financial Statements

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5 Government-Wide Financial Statements

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CITY OF SANGER | JUNE 30, 2024
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 6 Governmental Business-Type
ASSETS Activities Activities Total
Cash and investments 31,006,284 $ 18,701,629 $ 49,707,913 $ Cash with fiscal agents 9,157,731 20 9,157,751
Accounts receivable, net 2,691,274 3,997,024 6,688,298
Due from other governments 4,456,665 735,542 5,192,207
Interest receivable 150,779 100,549 251,328
Notes receivable 3,128,407 - 3,128,407
Leases receivable 395,235 - 395,235
Inventory 22,699 - 22,699
Land held for resale 712,000 - 712,000
Deposits 72,486 - 72,486
Prepaid expenses 74,569 - 74,569
Capital assets (net of accumulated depreciation/amortization):

Non-depreciable 3,705,089 6,955,623 10,660,712
Depreciable 42,277,045 25,710,727 67,987,772
Total assets 97,850,263 56,201,114 154,051,377

DEFERRED OUTFLOWS OF RESOURCES
Pension related 9,403,209 1,620,837 11,024,046
Loss on refunding - 159,323 159,323
Total deferred outflows of resources 9,403,209 1,780,160 11,183,369

LIABILITIES
Current liabilities:

Accounts payable 1,632,721 1,722,119 3,354,840
Accrued payroll and benefits 494,211 - 494,211
Retention payable 80,350 72,686 153,036
Interest payable 279,649 60,068 339,717
Deposits 147,627 282,862 430,489
Unearned revenue 525,181 54,221 579,402
Current portion of long-term liabilities 997,784 1,320,216 2,318,000 Current portion of lease liability 85,987 - 85,987
Current portion of compensated absences 719,563 73,347 792,910 Total current liabilities 4,963,073 3,585,519 8,548,592 Noncurrent liabilities:

Long-term liabilities 22,773,361 23,396,688 46,170,049
Lease liability 21,793 - 21,793
Compensated absences 160,947 14,022 174,969
Net pension liability 7,248,184 941,554 8,189,738
Total noncurrent liabilities 30,204,285 24,352,264 54,556,549 Total liabilities 35,167,358 27,937,783 63,105,141

DEFERRED INFLOWS OF RESOURCES
Pension related 10,676,360 2,263,187 12,939,547
Lease related 541,931 - 541,931
Total deferred inflows of resources 11,218,291 2,263,187 13,481,478

NET POSITION
Net investment in capital assets 36,628,416 11,667,673 48,296,089 Restricted 25,848,715 20 25,848,735
Unrestricted (1,609,308) 16,112,611 14,503,303
Total net position 60,867,823 $ 27,780,304 $ 88,648,127 $

Page 145 of 401 ends

CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Statement of Activities
The notes to the basic financial statements are an integral part of this statement. 7 Net (Expense) Revenue
Program Revenues and Changes in Net Position
Operating Capital
Charges Grants and Grants and Governmental Business-Type Functions/Programs Expenses for Services Contributions Contributions Activities Activities Total Primary Government:Governmental activities:

City Council 407,769 $ - $ - $ 20,461 $ (387,308) $ - $ (387,308) $ Administrative services 96,234 - - - (96,234) - (96,234)Community services 1,120,653 161,477 59,498 - (899,678) - (899,678)Police department 9,622,155 377,097 521,750 65,338 (8,657,970) - (8,657,970)Fire and emergency services 7,054,404 5,772,304 61,963 11,029 (1,209,108) - (1,209,108)Development services 2,084,269 - 417,738 - (1,666,531) - (1,666,531)Public works 5,814,721 586,069 2,387,151 4,336,622 1,495,121 - 1,495,121Nondepartmental 75,704 28,567 - - (47,137) - (47,137)Interest and fiscal charges - 650,878 - - (650,878) - (650,878) Total governmental activities 6,925,514 26,926,787 3,448,100 4,433,450 (12,119,723) - (12,119,723) Business-Type activities:

Water 4,759,078 3,578,393 - 1,239,829 - 59,144 59,144Sewer 4,908,529 6,152,596 236,653 - - 1,480,720 1,480,720Disposal 3,236,049 3,236,303 - 28,749 - 28,495 28,495 Total business-type activities 12,967,038 12,903,910 236,653 1,268,578 - 1,568,359 1,568,359 Total primary government $ 19,892,552 39,830,697 $ 3,684,753 $ 5,702,028 $ (12,119,723) 1,568,359 (10,551,364) General revenues:

Property taxes 3,726,195 - 3,726,195Sales and use taxes 7,714,120 - 7,714,120Motor vehicle in-lieu 3,231,188 - 3,231,188Franchise taxes 597,821 - 597,821Transient occupancy taxes 12,981 - 12,981Utility users taxes 2,230,286 - 2,230,286Business license tax 643,895 - 643,895Investment income 1,137,610 452,872 1,590,482Fees and other revenue 1,098,679 13,398 1,112,077Transfers (1,067,889) 1,067,889 - Total general revenues (601,619) 21,460,664 20,859,045
Change in net position 9,340,941 966,740 10,307,681Net position - beginning 26,813,564 51,526,882 78,340,446Net position - ending $ 27,780,304 60,867,823 $ 88,648,127 $

Page 146 of 401 ends

8 Fund Financial Statements

Page 147 of 401 ends

CITY OF SANGER | JUNE 30, 2024
Governmental Funds
Balance Sheet
The notes to the basic financial statements are an integral part of this statement. 9 Special Revenue
Fund
Measure S Nonmajor Total
District Capital Projects Governmental Governmental
General Sales Tax Fund Funds Funds
ASSETS
Cash and investments 13,623,082 $ 2,840,532 $ 4,353,182 $ 10,091,831 $ 30,908,627 $ Cash with fiscal agents - - 8,677,206 480,525 9,157,731 Accounts receivable, net 2,678,034 - - 13,130 2,691,164 Due from other governments 923,280 721,558 - 2,811,827 4,456,665 Due from other funds 1,103,505 - - - 1,103,505
Interest receivable 70,425 9,484 21,941 48,929 150,779
Notes receivable - - - 3,128,407 3,128,407
Leases receivable 395,235 - - - 395,235
Land held for resale - - - 712,000 712,000
Deposits 40,000 - - - 40,000
Prepaid expenses 15,336 59,233 - - 74,569
Total assets 18,848,897 $ 3,630,807 $ 13,052,329 $ 17,286,649 $ 52,818,682 $

LIABILITIES
Accounts payable 528,959 $ 32,504 $ 321,071 $ 638,626 $ 1,521,160 $ Accrued payroll and benefits 494,211 - - - 494,211
Retention payable - - 49,346 31,004 80,350
Due to other funds - - - 814,548 814,548
Deposits payable 147,627 - - - 147,627
Unearned revenue - - - 525,181 525,181
Total liabilities 1,170,797 32,504 370,417 2,009,359 3,583,077

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - 5,099,946 5,099,946
Lease related 541,931 - - - 541,931
Total deferred inflows of resources 541,931 - - 5,099,946 5,641,877

FUND BALANCES (DEFICITS)
Nonspendable 15,336 59,233 - 712,000 786,569
Restricted 147,627 2,512,328 13,242,925 9,945,835 25,848,715 Committed 3,531,859 - - - 3,531,859
Unassigned 13,441,347 1,026,742 (561,013) (480,491) 13,426,585 Total fund balances (deficits) 17,136,169 3,598,303 12,681,912 10,177,344 43,593,728 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 18,848,897 $ 3,630,807 $ 13,052,329 $ 17,286,649 $ 52,818,682 $

Page 148 of 401 ends

CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position The notes to the basic financial statements are an integral part of this statement. 10 Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances of governmental funds 43,593,728 $
45,982,134
Deferred outflows of resources 9,403,209
Deferred inflows of resources (10,676,360)
Total deferred outflows and inflows related to pension benefits (1,273,151) 3,128,407
1,971,539
Bonds payable (22,866,578)
Compensated absences (880,510)
Leases payable (107,780)
Accrued interest payable on long-term debt (279,649)
Net pension liability (7,248,184)
Total long-term liabilities (31,382,701)
Premium on lease revenue bonds (1,012,718)
Discount on pension obligation bond 108,151
Total premiums and discounts (904,567)
(247,566)
Net position of governmental activities 60,867,823 $
Internal service funds are used by management to charge the cost of these services to individual funds. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the statement of net position.

Long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the fund financial statements.

Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds:

Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities:

Capital assets of $122,086,119, net of accumulated depreciation/amortization of $76,103,985, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, changes in employer's proportion, and contributions subsequent to the measurement date for the postretirement pension benefits are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position.

Some receivables will not be available to pay for current-period expenditures and are offset by unavailable revenues in the governmental funds and thus are not included in fund balance. Certain tax and other revenues that are considered unavailable for governmental funds but are recognized as revenue for the government-wide statements.

Page 149 of 401 ends

CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances The notes to the basic financial statements are an integral part of this statement. 11 Special Revenue
Fund
Measure S Nonmajor Total
District Capital Projects Governmental Governmental
General Sales Tax Fund Funds Funds

REVENUES
Taxes 12,857,061 $ 3,664,745 $ - $ 1,146,779 $ 17,668,585 $ License and permits 487,901 - - - 487,901
Intergovernmental 3,980,342 - - 3,546,460 7,526,802
Charges for services 6,291,508 - - 634,006 6,925,514
Fines and forfeitures 452,969 - - - 452,969
Investment income 260,604 42,371 518,797 233,803 1,055,575 Loan repayments - - - 68,021 68,021
Other revenues 414,376 - - - 414,376
Total revenues 24,744,761 3,707,116 518,797 5,629,069 34,599,743

EXPENDITURES
Current:

City council 378,285 - - - 378,285
Community services 949,512 - - 21,974 971,486
Police department 6,474,149 1,078,113 - 970,549 8,522,811 Fire and emergency services 4,623,264 912,710 - 415,002 5,950,976 Development services 1,623,842 - - 458,376 2,082,218
Public works 1,547,740 - - 1,235,241 2,782,981
Nondepartmental 75,704 - - - 75,704
Capital outlay 230,384 264,872 1,079,810 3,022,981 4,598,047 Debt service:

Principal 198,000 245,278 - 790,645 1,233,923
Interest and fiscal charges 321,199 14,756 - 354,594 690,549 Total expenditures 2,515,729 16,422,079 1,079,810 7,269,362 27,286,980 Excess (deficiency) of revenues over
(under) expenditures 8,322,682 1,191,387 (561,013) (1,640,293) 7,312,763

OTHER FINANCING SOURCES (USES)
Proceeds from long-term debt - 54,110 - - 54,110
Transfers in 181,434 18,563 - 2,726,984 2,926,981
Transfers out (1,418,522) (178,085) - (262,485) (1,859,092) Total other financing sources (uses) (1,237,088) (105,412) - 2,464,499 1,121,999 Net change in fund balances 7,085,594 1,085,975 (561,013) 824,206 8,434,762 Fund balances - beginning 10,050,575 2,512,328 13,242,925 9,353,138 35,158,966 Fund balances - ending 17,136,169 $ 3,598,303 $ 12,681,912 $ 10,177,344 $ 43,593,728 $

Page 150 of 401 ends

CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities The notes to the basic financial statements are an integral part of this statement. 12 Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances – total governmental funds 8,434,762 $ Depreciation/amortization expense (4,172,848)
Capital outlays 4,337,855
165,007
Earned but unavailable revenue 354,748
Distribution of housing loans, interest earned and loan payments 245,348 600,096
Lease issued (54,110)
Principal paid on bonds 988,645
Principal paid on notes 164,388
Principal paid on leases 80,890
1,179,813
Accrued interest on long-term debt 7,330
Amortization of bond premiums and discounts 32,341
Change in compensated absences (153,181)
Changes in pension liabilities and related deferred outflows and inflows of resources (925,732) (1,039,242)
505
Change in net position of governmental activities 9,340,941 $ The internal service funds are used by management to charge the costs of internal services to individual funds. The net revenue (expense) of internal service funds is reported with governmental activities.

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.

Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets are capitalized and allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

Page 151 of 401 ends

CITY OF SANGER | JUNE 30, 2024
Proprietary Funds
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 13 Governmental
Business-Type Activities - Enterprise Funds Activities
Total Internal
Enterprise Service
ASSETS Water Sewer Disposal Funds Funds
Current assets:

Cash and investments 5,997,845 $ 9,458,797 $ 3,244,987 $ 18,701,629 $ 97,657 $ Cash with fiscal agents 1 19 - 20 -
Accounts receivable, net 1,165,902 1,992,368 838,754 3,997,024 110 Due from other governments 735,542 - - 735,542 -
Interest receivable 40,390 43,741 16,418 100,549 -
Inventory - - - - 22,699
Deposits - - - - 32,486
Total current assets 7,939,680 11,494,925 4,100,159 23,534,764 152,952 Noncurrent assets:

Capital assets:

Land 451,282 1,308,257 - 1,759,539 -
Construction in progress 4,261,996 934,088 - 5,196,084 - Buildings and improvements 30,185,791 31,552,774 - 61,738,565 - Machinery and equipment 4,546,664 3,815,131 1,241,442 9,603,237 280,450 Less accumulated depreciation/amortization (19,458,555) (25,260,662) (911,858) (45,631,075) (280,450) Total noncurrent assets 19,987,178 12,349,588 329,584 32,666,350 - Total assets 27,926,858 23,844,513 4,429,743 56,201,114 152,952

DEFERRED OUTFLOWS OF RESOURCES
Pension related 356,519 1,009,050 255,268 1,620,837 -
Loss on refunding 70,591 88,732 - 159,323 -
Total deferred outflows of resources 427,110 1,097,782 255,268 1,780,160 -

LIABILITIES
Current liabilities:

Accounts payable 1,050,736 451,874 219,509 1,722,119 111,561 Retention payable 37,280 35,406 - 72,686 -
Interest payable 15,339 40,100 4,629 60,068 -
Due to other funds - - - - 288,957
Deposits 282,862 - - 282,862 -
Unearned revenue - - 54,221 54,221 -
Current portion of long-term debt 171,264 1,126,200 22,752 1,320,216 - Current portion of compensated absences 19,335 41,997 12,015 73,347 - Total current liabilities 1,576,816 1,695,577 313,126 3,585,519 400,518 Noncurrent liabilities:

Long-term debt 4,971,678 18,035,450 389,560 23,396,688 - Compensated absences 3,841 10,181 - 14,022 -
Net pension liability 215,633 563,397 162,524 941,554 - Total noncurrent liabilities 5,191,152 18,609,028 552,084 24,352,264 - Total liabilities 6,767,968 20,304,605 865,210 27,937,783 400,518

DEFERRED INFLOWS OF RESOURCES
Pension related 499,121 1,413,005 351,061 2,263,187 -
Total deferred inflows of resources 499,121 1,413,005 351,061 2,263,187 -

NET POSITION
Net investment in capital assets 16,407,769 (5,069,680) 329,584 11,667,673 - Restricted 1 19 - 20 -
Unrestricted 4,679,109 8,294,346 3,139,156 16,112,611 (247,566) Total net position 21,086,879 $ 3,224,685 $ 3,468,740 $ 27,780,304 $ (247,566) $

Page 152 of 401 ends

CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position The notes to the basic financial statements are an integral part of this statement. 14 Governmental
Business-Type Activities - Enterprise Funds Activities
Total Internal
Enterprise Service
Water Sewer Disposal Funds Funds
Operating revenues:

Charges for services 3,578,393 $ 6,152,596 $ 3,236,049 $ 12,967,038 $ 6,829,446 $ Other revenue 4,776 5,340 3,282 13,398 -
Total operating revenues 3,583,169 6,157,936 3,239,331 12,980,436 6,829,446 Operating expenses:

Salaries and benefits 455,330 880,063 254,126 1,589,519 4,403,403 Vehicle operations 13,600 10,428 - 24,028 -
Supplies and services 2,432,063 1,768,927 2,513,671 6,714,661 1,626,446 General and administrative 582,744 636,090 428,975 1,647,809 799,092 Depreciation and amortization 1,124,697 1,018,686 29,246 2,172,629 - Total operating expenses 4,608,434 4,314,194 3,226,018 12,148,646 6,828,941 Operating income (loss) (1,025,265) 1,843,742 13,313 831,790 505 Nonoperating revenues (expenses):

Intergovernmental 1,239,829 236,653 28,749 1,505,231 -
Investment income 174,948 207,567 70,357 452,872 -
Interest expense (150,644) (594,335) (10,285) (755,264) - Total nonoperating revenues (expenses) 1,264,133 (150,115) 88,821 1,202,839 - Income before transfers 1,693,627 238,868 102,134 2,034,629 505 Transfers in 319,484 37,627 - 357,111 -
Transfers out (1,425,000) - - (1,425,000) -
Total transfers (1,105,516) 37,627 - (1,067,889) -
Changes in net position (866,648) 1,731,254 102,134 966,740 505 Net position (deficit) - beginning 21,953,527 1,493,431 3,366,606 26,813,564 (248,071) Net position (deficit) - ending 21,086,879 $ 3,224,685 $ 3,468,740 $ 27,780,304 $ (247,566) $

Page 153 of 401 ends

CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Proprietary Funds
Statement of Cash Flows
The notes to the basic financial statements are an integral part of this statement. 15 Governmental
Business-Type Activities - Enterprise Funds Activities
Total Internal
Enterprise Service
Water Sewer Disposal Funds Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 3,500,106 $ 6,249,430 $ 3,149,014 $ 12,898,550 $ 6,829,349 $ Cash paid to suppliers (2,895,298) (1,582,104) (2,541,059) (7,018,461) (1,784,115) Cash paid to employees (473,783) (980,826) (259,146) (1,713,755) (4,427,922) Cash paid for general administrative services (582,744) (636,090) (428,975) (1,647,809) (799,092) Other operating receipts 5,340 4,776 3,282 13,398 -
Net cash provided by (used for) operating activities 3,055,750 (446,943) (76,884) 2,531,923 (181,780)

CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Transfers (to)/from other funds (1,105,516) 37,627 - (1,067,889) - Loans from/(to) other funds (40,646) - - (40,646) 159,296 Principal paid on long-term debt (50,587) (89,995) (22,452) (163,034) - Interest paid on long-term debt (27,121) (40,145) (10,332) (77,598) - Net cash provided by (used for) noncapital and related financing activities (92,513) (1,223,870) (32,784) (1,349,167) 159,296

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital grants 566,364 236,653 82,970 885,987 - Acquisition of capital assets (1,558,019) (1,266,987) (32,548) (2,857,554) - Proceeds from issuance of long-term debt 563,950 - - 563,950 - Principal paid on capital debt (119,000) (969,000) - (1,088,000) - Interest paid on capital debt (552,061) (120,074) - (672,135) - Net cash provided by (used for) capital and related financing activities (2,551,395) (666,779) 50,422 (3,167,752) -

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 194,408 153,400 65,375 413,183 -
Net cash provided by (used for) investing activities 194,408 153,400 65,375 413,183 - Increase (decrease) in cash and cash equivalents (2,184,192) 606,250 6,129 (1,571,813) (22,484) Cash and cash equivalents - beginning 8,852,566 8,182,038 3,238,858 20,273,462 120,141 Cash and cash equivalents - ending $ 9,458,816 5,997,846 $ 3,244,987 $ 18,701,649 $ 97,657 $

Page 154 of 401 ends

CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Proprietary Funds
Statement of Cash Flows
(Continued)
The notes to the basic financial statements are an integral part of this statement. 16 Governmental
Business-Type Activities - Enterprise Funds Activities
Total Internal
Enterprise Service
Water Sewer Disposal Funds Funds
Reconciliation of cash and cash equivalents to the Statement of Net Position:

Cash and investments 5,997,845 $ 9,458,797 $ 3,244,987 $ 18,701,629 $ 97,657 $ Cash with fiscal agent 19 1 - 20 -
Cash and cash equivalents - ending $ 9,458,816 5,997,846 $ 3,244,987 $ 18,701,649 $ 97,657 $ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) (1,025,265) $ 1,843,742 $ 13,313 $ 831,790 $ 505 $ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation and amortization expense 1,124,697 1,018,686 29,246 2,172,629 - Changes in operating assets, liabilities and deferred outflows/inflows of resources:
(Increase) decrease in accounts receivable, net (95,385) 96,834 (87,035) (85,586) (97) (Increase) decrease in inventory - - - - 2,080
(Increase) decrease in prepaid expenses - - - - 1,941
(Increase) decrease in pension related deferred outflows of resources 172,526 520,713 117,340 810,579 (32,486) Increase (decrease) in accounts payable (449,635) 197,251 (27,388) (279,772) (153,723) Increase (decrease) in deposits 17,098 - - 17,098 -
Increase (decrease) in compensated absences 12,290 25,567 822 38,679 - Increase (decrease) in net pension liability 620 (58,891) 10,957 (47,314) - Increase (decrease) in pension related deferred inflows of resources (588,152) (203,889) (134,139) (926,180) - Net cash provided by (used for) operating activities $ 3,055,750 (446,943) $ (76,884) $ 2,531,923 $ (181,780) $ Schedule of non-cash capital and related financing activities:

Purchase of capital assets on account $ 228,818 931,400 $ - $ 1,160,218 $ - $

Page 155 of 401 ends

CITY OF SANGER | JUNE 30, 2024
Fiduciary Funds
Statement of Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 17 Private-Purpose Custodial
Trust Fund Fund
South Kings
Successor Groundwater
Agency Sustainability
ASSETS
Cash and investments 445,204 $ 501,969 $
Land held for resale 1,172,598 -
Total assets 1,617,802 501,969

LIABILITIES
Accounts payable - 24,042
Retention payable - 5,314
Total liabilities - 29,356

NET POSITION
Held in trust for private purposes 1,617,802 -
Restricted for:

Individuals, organizations, and other governments - 472,613 Total net position 1,617,802 $ 472,613 $

Page 156 of 401 ends

CITY OF SANGER | FOR THE YEAR ENDED JUNE 30, 2024
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 18 Private-Purpose Custodial
Trust Fund Fund
South Kings
Successor Groundwater
Agency Sustainability

ADDITIONS
Taxes - $ 3,224,952 $
Interest - 15,066
Total additions - 3,240,018

DEDUCTIONS
Administrative costs - 3,332,659
Total deductions - 3,332,659
Changes in fiduciary net position - (92,641)
Net position - beginning 1,617,802 565,254
Net position - ending 1,617,802 $ 472,613 $

Page 157 of 401 ends

19 Notes to the Basic Financial Statements

Page 158 of 401 ends

CITY OF SANGER | JUNE 30, 2024
Notes to the Basic Financial Statements
20 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The combined financial statements of the City of Sanger, California (the City) have been prepared in conformity with accounting principles applicable to governmental units which are generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

A. Reporting Entity
The City of Sanger (the City) was incorporated in 1911 under the General Laws of the State of California. The City operates under a Council-Manager form of government governed by a five-member council and provides the following services:
public safety (police, fire, and paramedic), community services, street construction and maintenance, planning and zoning, street cleaning, transit, sanitation, and general administration.

The accompanying basic financial statements present the financial activities of the City along with the financial activities of its blended component units, which are entities for which the City is financially accountable. Together these entities comprise the primary government for reporting purposes. Although they are separate legal entities, blended component units are in substance part of the City's operations and are reported as an integral part of the City's financial statements.

The City's component units, which are described below, are all blended.

Sanger Public Financing Authority
The Sanger Public Financing Authority (the Financing Authority) was established in 1995 pursuant to California Government Code, Section 6500. The Financing Authority was established to provide a financing mechanism for the City and former Redevelopment Agency's various public projects. As all debt issued by the Sanger Public Financing Authority has been paid off or refunded, there was no activity in the fund in the current year. There are no separate financial statements prepared for the Sanger Public Financing Authority.

Sanger Housing Authority
The Sanger Housing Authority (the Housing Authority) was reactivated on February 3, 2011 in accordance with California Housing Authority Law (Health and Safety Code Section 34200). Certain assets of the former Redevelopment Agency's Low and Moderate Income Housing Funds were transferred to the Housing Authority on February 1, 2012. The activity of the Housing Authority is reported in the Special Revenue Funds. There are no separate financial statements prepared for the Housing Authority.

Sanger Financing Authority
The Sanger Financing Authority (the Sanger Financing Authority) is a public agency duly organized and existing pursuant to a Joint Exercise of Powers Agreement (the JPA Agreement) between the City and California Municipal Finance Authority (CMFA), dated September 20, 2013. The Sanger Financing Authority is governed by a board of directors comprised of the five members of City Council. The Sanger Financing Authority is statutorily authorized by Article 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code and is empowered under the JPA Agreement to issue its bonds for, among other things, the purposes of the plan of financing described herein. The transactions are reported in the debt service fund. There are no separate financial statements prepared for the Sanger Financing Authority.

B. Basis of Presentation
The accounts of the City are organized based on funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistently with legal and managerial requirements.

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CITY OF SANGER | JUNE 30, 2024
Notes to the Basic Financial Statements
21 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Government-Wide Financial Statements
The Statement of Net Position and Statement of Activities display information about the reporting government as a whole. They include the activities of the overall City government except for fiduciary activities. Eliminations have been made to minimize the double counting of internal service activities. Interfund services provided and used are not eliminated in the process of consolidation. The City's net position is reported in three parts - net investment in capital assets; restricted net position; and unrestricted net position. The City first utilizes restricted resources to finance qualifying activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in part by fees charged to external parties for goods or services.

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements
The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories with each major fund displayed in a separate column. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:
a. Total assets and deferred outflows of resources, liabilities and deferred inflow of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and b. Total assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

All remaining governmental funds are aggregated and reported as nonmajor funds in a single column, regardless of their fund type.

The funds of the financial reporting entity are described below:

Governmental Funds
General Fund - The General Fund is the general operating fund of the City and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds.

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CITY OF SANGER | JUNE 30, 2024
Notes to the Basic Financial Statements
22 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
Governmental Funds (Continued)
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.

Capital Project Funds - Capital Project Funds are used to account for capital projects including construction, renovation, and major infrastructure improvements.

Debt Service Funds - Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest.

Proprietary Funds
Enterprise Funds - Enterprise funds are used to account for business-like activities provided to the general public.

These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector.

Internal Service Funds - Internal service funds are used to account for, and finance, services and commodities furnished by a designated department of a governmental unit to other departments of the same governmental unit.

The City's internal service funds account for the financing of special activities that provide services within the City.

These activities include administration, equipment maintenance, and self-insurance programs.

Fiduciary Funds (not included in government-wide statements) Private-Purpose Trust Funds - Private-Purpose Trust Funds are used to report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments. These include activities of the Successor Agency to the Redevelopment Agency of the City of Sanger.

Custodial Funds - Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds.

Major Funds
The City reported the following major governmental funds in the accompanying financial statements:

General Fund - This is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in a separate fund.

Measure S District Sales Tax - A 3/4 cent District sales tax imposed in the City to fund police, fire, paramedic, 9-1-1 emergency, and gang/drug prevention services.

Capital Projects Fund - This fund accounts for capital projects related to the City’s fire station remodel and dispatch center.

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Sanger City CouncilAugust 6, 2026

Sanger City Council
August 6, 2026